India Post Payments Bags ₹ 500 Crore FundingHighlights
- Government allocated amount of ₹ 500 croreto India Post Payments Bank.
- ₹ 125 crore has been allocated as “capital infusion into corporate entity for India Post Payments Bank” .
- ₹ 375 crore as “grant in aid to India Post Payments Bank (IPPB) ” .
- India Posts is second after Airtel to roll out payments bank.
- Airtel has earmarked ₹ 3,000 crore as initial investment for pan-India operations.
- Government has allocated ₹ 3.8 crore for setting up 246 offices and 200 outlets for providing better access to communication and financial services.
About Payments bank
- Payments banks are a new model of banks conceptualized by Reserve Bank of India (RBI) .
- These banks can accept a restricted deposit which is currently limited to INR 1 lakh per customer.
- These banks cannot issue loans and credit cards.
- Both current account and savings accounts can be operated by such banks.
- Payments banks can issue services like ATM cards, debit cards, online banking and mobile banking.
- Airtel has launched India՚s first live payments bank.
- Paytm is second to be launched in country.
✍Examrace Team at Mar 16, 2017