The Union Cabinet on Wednesday has given its approval for setting up the India Post Payments Bank (IPPB) as a Public Limited Company under the Department of Posts, with 100% Government of India equity.
The setting-up of the IPPB to further financial inclusion was one of the budgetary announcements during 2015-16.
The Reserve Bank of India(RBI) has come-up with Payment Banks which will help to serve those with little or no banking access. Click to know the difference between Commercial bank and Payments bank.
Here are 5 interesting points to know about your India Post Payments Bank:
1. The India Post Payments Bank will obtain banking licence from RBI by March 2017 and by September 2017.
2. The services will be available across the country through 650 payments bank branches. It will be linked to other post offices and alternative channels such as mobiles, ATMs, PoS/ m-PoS devices etc and simple digital payments.
3. Moving further there will be financial inclusion by providing basic banking, payments and remittance services and facilitate financial services.
The services will include insurance, mutual funds, pensions and access to credit in tie-up with third party financial providers with special focus on rural areas and the unbanked and under-banked segments.
4. It will generate new employment opportunities for skilled banking professionals and will generate opportunities for propagating financial literacy across the country.
5. It will create the largest bank in the world in terms of accessibility and in time, will encourage the move towards a less cash economy.