IIPB to get ₹820 cr extra funds to aid expansion
NEW DELHI: The Union Cabinet on Wednesday approved an additional funding of ₹820 crore for India Post Payments Bank (IPPB) that will be utilised for expansion of its services to all post offices in the country.
Out of the little more than 1.56 lakh post offices, IPPB at present operates from 1.3 lakh post offices, Union minister Anurag Thakur said.
The cabinet has given its in-principle approval for future fund infusion of ₹500 crore into IPPB for meeting regulatory requirements and for technological upgrades, according to the minister.
“IPPB is going to expand its banking service to 1,56,434 post offices and for decision has been taken to invest ₹820 crore in it so that poorest of the poor, mothers and sisters living in rural areas can get access to banking facility,” Thakur said.
The Cabinet has approved the revision of project outlay for setting up of IPPB from ₹1,435 crore to ₹2,255 crore as equity infusion to meet regulatory requirement, the government said.
“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 underbanked populace through assisted doorstep banking,” it said.
“The project supplements the Government of India’s vision of a ‘less cash’ economy and at the same time promote both economic growth and financial inclusion,” the government said.
IPPB has enabled 1.36 lakh post offices to provide banking services. It has also equipped 1.89 lakh postmen and Gramin Dak Sevaks with smartphone and biometric devices to provide doorstep banking services.
IPPB was launched in September 2018, with 650 branches or controlling offices.
Since the launch, it has opened more than 52.5 million accounts with 820 million aggregate number of financial transactions. The value of transactions is ₹1,61,811 crore and includes 7.65 crore Aadhaar Enabled Payment System transactions worth ₹21,343 crore.
“Out of the 50 million accounts, 77% of accounts are opened in rural areas, 48% are women customers with around ₹1,000 crore of deposit. Nearly four million women customers received direct benefit transfer into their accounts valued at ₹2,500 crore. More than 7.8 lakh accounts have been opened for school students,” the government said.