The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the revision of project outlay for setting up of India Post Payments Bank (IPPB) from Rs.1435 crore to Rs.2255 crore as equity infusion to meet regulatory requirement. The Cabinet also granted in principle approval for future fund infusion to the tune of Rs.500 crore for meeting 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 project supplement Government of India’s vision of “less cash” economy and at the same time promote both economic growth and financial inclusion.
India Post Payments Bank did a nationwide a launch by on September 1, 2018 with 650 branches/controlling offices. IPPB has enable 1.36 lakh Post Offices to provide banking services and has equipped nearly 1.89 lakh Postmen and Gramin Dak Sevaks with smartphone and biometric device to provide doorstep banking services.
Since the launch of IPPB, it has opened more than 5.25 crore accounts with 82 crore aggregate number of financial transactions with Rs.1,61,811 crore which includes 765 lakh number of AePS transactions worth Rs.21,343 crore. Out of the 5 crore accounts, 77% of accounts are opened in Rural areas, 48% are women customers with around Rs.1000 crore of deposit. Nearly 40 lakh women customers received Direct Benefit Transfer (DBT) into their accounts valued at Rs.2500 crore. More than 7.8 lakh accounts have been opened for school students.
In Aspirational Districts IPPB has opened around 95.71 lakh accounts having 602 lakh aggregate transaction worth Rs.19,487 crore. In Left Wing Extremism (LWE) districts, 67.20 lakh accounts have been opened by IPPB having 426 lakh aggregate transactions worth Rs.13,460 crore.
Total financial expenditure involved under the proposal stands at Rs.820 crore. The decision shall help India Post Payments Bank pursue its objective of furthering financial inclusion across India by leveraging the network of Department of Posts.