India Post Payments Bank can transform the rural banking in India
India Post Payments Bank which will be inaugurated by the prime minister on September 1, 2018, has potential to transform the rural banking in India, as IPPB will be operating from the established network of India Post which has 1.54 lakh post offices across India and from 1.39 lakh are in rural parts of India.
Incorporated as public sector company under the Department of Posts with 100% Government of India equity and is governed by the Reserve Bank of India has a vision of Spearheading financial inclusion by removing barriers and reducing costs for accessing banking services.
PPB started its operations on 30th January 2017 by opening two pilot branches, one at Raipur and the other at Ranchi. Familiar and trusted postmen will be the crusader of this financial transformation. Postmen will help the villagers to open an account and manage all their transactions for they will also be paid.
IPPB is offering demand deposits such as savings and current accounts up to a balance of Rs 1 Lac, digitally enabled payments and remittance services of all kinds between entities and individuals and also provide access to third-party financial services such as insurance, mutual funds, pension, credit products, forex, and more, in partnership with insurance companies, mutual fund houses, pension providers, banks, international money transfer organisations, direct benefit transfer, etc.
The network of IPPB-
IPPB will provide simple and efficient banking solutions by providing access to all its customers through its digital and mobile platforms. it will leverage the nation-wide distribution network of the Department of Posts – one of the largest postal services in the world – to bring assisted banking services within the reach of every Indian, both rural and urban.
- 50 Branches/Controlling offices (one branch in each district),
- 3,250 Post Offices across urban and rural India, activated as banking access points for launch
- 1,700 Counters across urban and rural India to be activated at launch
- 10K+ Postmen/GDS ready to provide Doorstep banking services at launch
In coming days the IIPB will be the key driving force of the rural financial inclusion, which will also enable the digitization of various development schemes and direct benefit transfer.