Banking

DoP seeks Cabinet’s nod for payments bank

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Indian-Postal-Department-LogoDepartment of Posts (DoP) has sought Cabinet approval for its payments bank proposal involving a project cost of Rs 800 crore. Notably, Public Investment Board (PIB) has recommended payments bank to be set up as a public limited company under the DoP with 100 per cent government equity.

Telecom Minister Ravi Shankar Prasad replied in the Lok Sabha that the draft cabinet note has been forwarded to Cabinet Secretariat for the approval of the project. “Over 60 large companies have approached the DoP for collaboration with the prospective IPPB,” he added.

The Reserve Bank of India granted in-principle approval to DoP for setting up payments bank on 7 September, 2015, with a stipulation to complete all formalities for setting up the bank with 18 months.

According to the proposal, India Post Payments bank (IPPB) may set up one headquarter and up to 650 branches co-located in the district headquarters post offices.

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