Centre Allocates ₹ 500 Crore to India Post Payments Bank

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Government allocated an amount of ₹ 500 crore to India Post Payments Bank for financial year 2017 - 18. It is to help in setting up several branches across country. Government is setting up 246 offices and 200 outlets for providing better access to communication and financial services.

India Post Payments Bags ₹ 500 Crore Funding

Highlights

  • 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.
About Payment Bank

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