The Union Cabinet chaired by PM Narendra Modi has given its approval for revision of the project outlay for setting up of India Post Payments Bank (IPPB) from Rs. 800 crore to Rs. 1,435 crore. The additional sum of Rs. 635 crore in the revised cost estimates is on account of Rs 400 crore for Technology Costs and Rs 235 crore for Human Resource Costs.
- IPPB services shall be available at 650 IPPB branches and 3250 Access Points from 1st September 2018 and in all 1.55 lakh post offices (Access Points) by December 2018.
- The project will generate new employment opportunity for about 3500 skilled banking professionals and other entities engaged in propagating financial literacy across the country.
- The objective of the project is to build the most accessible, affordable and trusted bank for the common man, spearhead the financial inclusion agenda by removing the barriers for the unbanked and reduce the opportunity cost for the under banked populace through assisted doorstep banking.
- The project will supplement Government’s vision of “less cash” economy and at the same time promote both economic growth and financial inclusion.
- The robust IT architecture of IPPB has been built taking into consideration bank grade performance, fraud and risk mitigation standards and in line with the best practices from payments & banking domain.
IPPB Services :-
- The bank, which is fully owned by the government, will provide savings and current accounts, remittances, money transfers, bill and utility payments and enterprise and merchant payments.
- The limit for savings accounts in IPPB will be ₹1lakh. It will provide services to about 170 million postal savings account holders. These services will be provided over channels including over the counter, micro-ATMs, mobile banking, SMS and IVR.
- While IPPB is not authorised to offer lending and insurance services, it will act as an agent of Punjab National Bank to provide loans and has tied up with Bajaj Alliance Life Insurance for life insurance products.
- About 40,000 postal workers will provide doorstep banking services to IPPB customers.
- Union Cabinet also authorised direct payment of part of IPPB’s profit to rural postal workers as direct commission. Approximately 25% of the profits will be paid to last-mile agents and 5% of profits will be provided to the Department of Posts & the earnings given to the department will largely be reinvested in upgrading infrastructure.