India Post Payments Bank gets big funding boost days ahead of launch; government almost doubles the outlay

By: | Updated: August 29, 2018 3:34 PM

The IPPB project, which aims to ensure an affordable and accessible banking to one and all in the country, is expected to generate employment to nearly 3500 skilled banking professionals and other entities involved in propagating and advocating financial literacy across the country.

भारतीय डाक, भारत, india post payments bank, india post, इंडिया पोस्ट, पेमेंट्स बैंक, how to use india post payments bank, how to open bank account in india post payments bankThe government plans to link all 1.55 lakh post offices in the country to India Post Payments Bank system by the end of this year. (IE)

Ahead of its nation-wide launch on September 1, the India Post Payments Bank has received a big funding boost from the government as the Cabinet committee chaired by Prime Minister Shri Narendra Modi has given approval to increase the total outlay for setting up the payments bank by 80% to Rs 1,435 crore from earlier Rs 800 crore. The additional outlay that has been approved is mainly on account of costs related to human resources (Rs 235 crore) and technology (Rs 400 crore), according to an official statement.

Also, the Cabinet has cleared payment of incentive/commission to all last-mile agents like gramin dak sewaks and postal staff in their accounts directly for providing IPPB digital services. The commission will be paid by IPPB to Department of Posts and a part of it will also be utilised to upgrade the infrastructure.

The payments bank will provide a wide range of services/products like current and savings accounts, direct benefit transfer, money transfer, bill payments, utility payments, enterprises and merchant payments through 650 branches and 3,250 access points across the country. The bank will provide these services via various channels such as mobile banking app, counter services, micro ATMs, SMS and IVR.

The government plans to link all 1.55 lakh post offices in the country to India Post Payments Bank system by the end of this year. About 17 crore postal savings bank (PSB) will also be linked to IPPB. Another notable feature of IPPB is that, it can accept deposits more than the RBI prescribed limit of Rs 1 lakh for payment banks.

The IPPB project, which aims to ensure an affordable and accessible banking to one and all in the country, is expected to generate employment to nearly 3500 skilled banking professionals and other entities involved in propagating and advocating financial literacy across the country.

IPPB services are scheduled for a launch by the Prime Minister Narendra Modi on September 1.

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