IPPB to get ₹820 cr extra funds to aid expansion

NEW DELHI: The Union Cabinet on Wednesday approved an additional funding of ₹820 crore for the setting up of India Post Payments Bank (IPPB), with the total outlay at ₹2,255 crore.

The project outlay for IPPB was revised from ₹1,435 crore to ₹2,255 crore as equity infusion, the communications ministry said in a statement Wednesday.

The in-principle approval for future fund infusion to the tune of ₹500 crore has been given to meet regulatory requirements and technological upgradation.

“The objective of the project is to build the most accessible, affordable and trusted bank for the common man; spearhead the financial inclusion agenda by removing the barriers for the unbanked and reduce the opportunity cost for the under banked populace through assisted doorstep banking,” the ministry said.

India Post Payments Bank was launched nationwide on September 1, 2018 with 650 branches/controlling offices.

The IPPB has enable 0.136 million post offices to provide banking services and has equipped nearly 0.189 million postmen and Gramin Dak Sevaks with smartphone and biometric device to provide doorstep banking services.

The additional funding will help IPPB pursue its objective of furthering financial inclusion across India by leveraging the network of department of posts.

Meanwhile, the Cabinet also gave its nod to investing ₹2,426.39 crore on upgradation of 2G mobile networks to 4G at security sites in Left Wing Extremism (LWE) areas. The Universal Service Obligation Fund (USOF) project for upgrading the mobile services at 2,343 security sites will be undertaken at a cost of ₹1,884.59 crore, which will include operation and maintenance for five years. BSNL will maintain the sites for another five years at its own cost.

The Cabinet also approved funding of operations and maintenance cost of LWE Phase-i 2G sites by BSNL for an extended period beyond the contractual period of five years at an estimated cost of ₹541.80 crore. The extension will be up to 12 months from the date of approval by the Cabinet or commissioning of 4G sites, whichever is earlier.

The upgradation will enable better internet and data services in these areas. It shall also fulfil the communication needs of the security personnel deployed in these areas, the ministry said.

The Cabinet also approved the investment of ₹4,526.12 crores for Kwar Hydro Electric Project in Jammu and Kashmir.