As per the Output-Outcome Framework for Schemes 2017-18 for the Department of Posts released recently, government has allocated Rs 125 crore as “capital infusion into corporate entity for India Post Payments Bank” and Rs 375 crore as “grant in aid to India Post Payments Bank (IPPB)”.
India Posts is the second entity to roll out payments bank — though on a pilot basis — in Raipur and Ranchi, after Airtel that has earmarked Rs 3,000 crore as initial investment for pan-India operations with an interest rate of 7.25 per cent on deposits,reported the Economic Times.
The IPPB will offer an interest rate of 4.5 per cent on deposits up to Rs 25,000; 5 per cent on deposits of Rs 25,000-50,000 and 5.5 per cent on Rs 50,000-1,00,000.
The total paid up equity of the new bank IPPB is Rs 800 crore, of which the government has already infused Rs 275 crore.
India Post Payments Bank (IPPB) got the final license from RBI on January 20 and its operations are expected to start before March 31. IPPB will gradually roll out in 650 districts using the network of 1.54 lakh post offices.