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Indian Post Payment Bank
Context:
The India Post Payments Bank (IPPB), a key player in driving financial inclusion across the country, proudly marks its 7th Foundation Day (IPPB Day) .
About Indian Post Payment Bank:
- India Post Payments Bank (IPPB) is a government-owned payments bank, launched on September 1, 2018, by Prime Minister Narendra Modi.
- Operating under the Department of Posts, Ministry of Communications, IPPB aims to provide accessible, affordable, and reliable digital banking services to all Indians, with a special focus on rural and underserved areas.
- It leverages the extensive postal network to bring banking services to the doorstep of every citizen, supporting the government’s financial inclusion objectives.
- The Nachiket Mor Committee was pivotal in the establishment of payments banks in India, including the India Post Payments Bank (IPPB).
Significance:
- India Post Payments Bank (IPPB) plays a key role in advancing financial inclusion by offering doorstep banking services in remote areas, bridging the rural-urban divide, and supporting the Digital India initiative.
- Its vast network of postmen and Gramin Dak Sewaks enables convenient access to essential banking services, empowering individuals across diverse demographics and promoting a cashless economy.
Key Features:
- Extensive Network: IPPB capitalises on India Post’s vast network of over 155,000 post offices, with 135,000 located in rural areas.
- Minimum Balance:No minimum balance required.
- Maximum Balance Capped at Rs 1 lakh; excess transferred to POSA.
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- A key feature of payments banks is that they cannot issue credit cards.
- IPPB operates under the regulatory framework established by the Reserve Bank of India (RBI) and is governed by the provisions of the Companies Act. 2013
- Doorstep Banking: Over 300,000 postmen and Gramin Dak Sewaks provide banking services at customers’ doorsteps using smartphones and biometric devices, especially beneficial for those in remote areas.
- Digital Focus: IPPB offers a seamless, paperless, cashless, and presence-less banking experience through digital platforms, integrating core banking systems with smartphones and biometric devices.
- Accessibility: Banking services are available in 13 regional languages, ensuring inclusivity for India’s diverse population.
- Low-Cost Model: IPPB focuses on frugal innovation to keep its services affordable, especially for economically weaker sections of society.
Services Offered
- Savings and Current Accounts: Current accounts designed for both individuals and businesses.
