India Post has become the third entity to receive the final nod from Reserve Bank of India (RBI) to start its payment bank operations.
Prior to this, telecom service provider Bharti Airtel and digital payments brand Paytm had received the license for Payments Bank. Airtel has already rolled out its operations.
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, reported the Times of India.
Reportedly, the government has appointed A P Singh as the interim managing director and Chief Executive Officer of IPPB. A 1986 batch Indian Postal Service officer, Singh was earlier joint secretary in the department of investment and public asset management (DIPAM). He has also served as the deputy director general in-charge of financial inclusion and payment systems in the founding team of UIDAI (Unique Identification Authority of India). The Aadhaar enabled payments system, e-kyc (electronic know your customer) and direct benefit transfers were piloted by him.
The IPPB has been incorporated as a public limited company under the department of posts with 100% equity from the government.
It will offer demand deposits such as savings and current accounts up to Rs 1 lakh, digitally-enabled payments and remittance services of all kinds between entities and individuals and also provide access to third party financial services such as insurance, mutual funds, pension, credit products, forex, and more, in partnership with insurance companies, mutual fund houses, pension providers, banks, international money transfer organisations, according to its website.
The postal payment bank will use postmen to help deliver the upcoming banking services. Postmen will be trained in soft skills to be able to carry out banking operations.
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