Setting Up of India Post Payments Bank Approved
The Union Cabinet has given its approval for setting up the India Post Payments Bank (IPPB) as a Public Limited Company under the Department of Posts, with 100% Government of India (GOI) equity.
India Post Payment Bank of @IndiaPostOffice has been approved by the cabinet.
— Ravi Shankar Prasad (@rsprasad) June 1, 2016
India Post Payment Bank coming shortly pic.twitter.com/eZdeRr2lpJ
— Pawan Kumar Singh (@pawan73) May 21, 2016
We have committed to create @IndiaPostOffice the world's largest Payment Bank with over 1.5 lakh branches by Sept.2017. #GoodGovernance
— Ravi Shankar Prasad (@rsprasad) June 2, 2016
The total expenditure involved in this project is Rs. 800 Crore. All citizens, especially 40% of the country's population that is outside the ambit of formal banking in the country will benefit from this project. The project will be rolled out in the entire country in a phased manner.
Held a meeting with the @IndiaPostOffice Board. Discussed the blue print for roll out of the India Post Payment Bank. #GoodGovernance
— Ravi Shankar Prasad (@rsprasad) June 2, 2016
The IPPB will obtain banking license from RBI by March 2017 and by September 2017, its services will be available across the country through 650 payments bank branches, linked post offices and alternative channels riding on modern technology including mobiles, ATMs, PoS or m-PoS devices etc. and simple digital payments.
Benefits
The proposal will further the cause of financial inclusion by providing basic banking, payments and remittance services and facilitate financial services like insurance, mutual funds, pensions and access to credit in tie-up with third party financial providers with special focus on rural areas and the unbanked and under-banked segments.
Thnx to our visionary PM @narendramodi.Bank wil reach ur doorstep thru @IndiaPostOffice PaymentBank. #GoodGovernance pic.twitter.com/WTPgeFPWJQ
— Ravi Shankar Prasad (@rsprasad) June 2, 2016
It will generate new employment opportunities for skilled banking professionals and will generate opportunities for propagating financial literacy across the country.
It will create the largest bank in the world in terms of accessibility and in time, will encourage the move towards a less cash economy.
History
Setting-up of the IPPB to further financial inclusion was one of the budgetary announcements during 2015-16. The Department of Posts had obtained the "in-principle approval" of the RBI in September 2015 to set up the India Post Payments Bank.
The India Post Payments Bank will leverage the Department's network, reach, and resources to make simple, low-cost, quality financial services easily accessible to customers all over the country.