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The Government of India has announced that the Prime Minister is going to launch India Post Payment Bank (IPPB), today at New Delhi. In an Official statement, the government said, “IPPB has been envisioned as an accessible, affordable and trusted bank for the common man, to help speedily achieve the financial inclusion objectives of the Union Government”, “On the day of the launch, IPPB will have 650 branches and 3,250 access points spread across the country.”
The government has also formulated the plan to link all of the 1.55 lakhs branches of India Post to the Payment Bank system by the end of 31st December 2018. The IPPB has been set up under 100% equity of the Government of India. The India Post Payment Bank will offer an interest rate of 4% on the savings account and will accept deposit up to Rs.1,00,000 per account of individual and small businesses.
Although the Bank does not have the authority to lend loans but will work in alliance with other financial institution for loans and other services. The IPPB will also offer services such as current account, money transfer, direct benefit transfer, bill and utility payment etc. through their multi-channel, namely; counter service, mobile app, ATM, SMS and more.
The government has also approved the IPPB to link all 17 crores Postal Saving Bank accounts to their platform. The cabinet also a week prior to today approved 80% increment in expenditure for India Post Payment Bank. The CapEx for IPPB project is outlay at Rs. 1435 crores from Rs. 800 crores.
