The Union Cabinet under the Chairmanship
of Prime Minister Shri Narendra Modi 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.
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.
The IPPB will obtain banking licence
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/
m-PoS devices etc and simple digital payments.
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.
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.
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.
It is noted that the 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.
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.
Post a Comment