The Union Cabinet on Wednesday approved additional funding of Rs 820 crore for India Post Payments Bank (IPPB) to help the state-run payments bank pursue its objective of expanding financial inclusion across India.
The cabinet has approved the revision of project outlay for setting up of IPPB from Rs 1435 crore to Rs 2255 crore as equity infusion.
Moreover, in-principle approval for future fund infusion to the tune of Rs 500 crore for meeting regulatory requirements and technological upgradation has also been granted.
“The objective of the project is to build the most accessible, affordable and trusted bank for the common man. It also emphasises on spearheading 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 cabinet said.
The project contributes to the Indian government’s objective of a “less cash” economy while also promoting economic growth and financial inclusion.
India Post Payments Bank (IPPB): Progress So Far IPPB was launched on September 1, 2018 with 650 branches/controlling offices across the country, enabling 1.36 lakh Post Offices to provide banking services.
It has also undertaken initiatives to embrace technology to provide doorstep banking services. It equipped nearly 1.89 lakh Postmen and Gramin Dak Sevaks with smartphone and biometric device for this purpose.
Since its launch, IPPB has opened more than 5.25 crore accounts with 82 crore aggregate number of financial transactions. Out of the 5 crore accounts, 77% of accounts are opened in rural areas, 48% are women customers. Also, over 7.8 lakh accounts have been opened for school students.