All the 1.55 lakh post offices in the country will be linked to the India Post Payments Bank (IPPB) system by December 31, 2018.
All the 1.55 lakh post offices in the country will be linked to the India Post Payments Bank (IPPB) system by December 31, 2018, Maharashtra circle postmaster general HC Agrawal said on Thursday.
On Wednesday, the Cabinet approved an increase of 80% in spending on India Post Payments Bank (IPPB) to Rs 1,435 crore. The additional outlay of Rs 635 crore is primarily on account of costs related to technology (Rs 400 crore) and human resources (Rs 235 crore).
Prime Minister Narendra Modi is slated to officially perform the nationwide launch on September 1. On the first day of launch, IPPB will have 650 branches and 3,250 access points across the country and will offer a range of products such as savings and current accounts, money transfer, direct benefit transfer, bill and utility payments, and enterprise and merchant payments.
Speaking to reporters, Agrawal said, “As per the payments bank guidelines, IPPB will partner with financial organisations to provide services such as loans, investments and insurance products. IPPB has finalised the partnership with Bajaj Allianz Life Insurance for the distribution of life insurance products which will be complimentary to postal life insurance products.”
These products will be offered through multiple channels such as counter services, micro ATMs, mobile banking app, SMS and IVR. The Cabinet has also approved payment of incentive/commission to last-mile agents (postal staff and gramin dak sewaks) directly in their accounts for providing IPPB services.
India Post already has 40 crore customers in the country with over 17 crore post office savings bank accounts.