India Post Payments Bank – a Major Initiative Towards Financial Inclusion (Download PDF)

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PM launched India Post Payments Bank (IPPB) at Talkatora Stadium in New Delhi. Function was witnessed at over 3000 locations across country, which was connected to main event in Delhi.

Image of India Post Payments Bank

Image of India Post Payments Bank

Image of India Post Payments Bank

  • India Post Payments Bank (IPPB) is expected to go live w/650 branches in addition to 3,250 access points co-located at post offices in August, 2018 following final clearance from Reserve Bank of India (RBI) to start.
  • RBI has given approval to IPPB after testing its entire system.

Key Facts of IPPB

  • IPPB was incorporated on 17th August, 2016 under Companies Act, 2013 as public limited company w/100 % GoI equity under Department of Posts (Ministry of Communication & Technology).

  • It was 3rd entity to receive payments bank permit after Airtel & Paytm.

  • Around 11,000 gramin dak sevaks (in rural area) & postmen (in urban area) will provide doorstep banking services.

  • IPPB has been given permission to link around 170million postal savings bank (PSB) account w/its account.

  • It will carry out RTGS, NEFT, IMPS transaction that will enable IPPB customers to transfer & receive money from any bank account.

What is Payments Bank?

  • Payments bank is new model of banking allows mobile firms, supermarket chains & others to cater to banking requirements of individuals & small businesses to further enhance financial inclusion.

  • It will be set up as differentiated bank & will confine its activities to acceptance of demand deposits, remittance services, internet banking & other specified services but cannot undertake lending services.

  • Payments bank can accept deposits max. up to Rs. 100,000 per account from individuals & small businesses.

  • They can issue ATM/debit cards but not credit cards & can issue other prepaid payment instruments.

  • They can distribute non-risk sharing simple financial products like mutual funds & insurance products.

- Published/Last Modified on: October 21, 2018

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