New Delhi, February 11: In a major push to Prime Minister Narendra Modi’s digitilisation initiative, the Indian Post Payments Bank (IPPB) now plans to enable Digital Payments in Post Offices in the coming months. IPPB’s expansion programme continues to make brisk progress and a nation-wide roll-out is scheduled beginning April 2018. With this, IPPB will be the third payments bank to have full-fledged operations after Airtel Payments Bank and Paytm.

With the latest move, IPPB will also enable more than 17 crore active account-holders of Post Office Savings Bank to make interoperable digital payments including the benefit of NEFT, RTGS, UPI and bill payment services.  Additionally, the IPPB will enable acceptance of digital payments across post offices in the country in line with the digital payments initiative of the government. All 1.55 lakh post office branches will operate as access points and 650 payments bank branches will provide them back- end support.

About IPPB:

  1. IPPB aims to give every Indian access to efficient banking services.

  2. The IPPB was launched on January 30th, 2017 in Ranchi and Raipur with the objective of being present in all corners of India by the end of the year. It is incorporated as a Public Sector Bank under the Department of Posts with 100% GOI equity.

  3. For now, IPPB is offering Savings account up to a balance of Rs 1 Lakh, along with digitally enabled payments and remittance services of all kinds between individuals.

  4. In due course, IPPB will also provide current accounts and access to third party financial services like insurance, mutual funds, pension, credit products, forex, and more.

According to a government notification, no decision has been taken to revise the timelines as reported in some sections of the media on Tuesday, February 6, 2018.  Once the proposed expansion is completed, IPPB will be providing the largest financial inclusion network in the country, covering both urban as well as rural hinterland with ability to provide digital payment services at the doorstep with the help of Postmen and Gramin Dak Sewaks (GDS).

To recall, the RBI in 2015, had granted 'in-principle' approval to 11 entities, including the Department of Posts, to set up payments banks. It must be noted that Payments banks can accept deposits of up to Rs 1 lakh per account from individuals and small businesses. Unlike traditional banks, payments banks are not allowed to give loans or credit to customers.

(The above story first appeared on LatestLY on Feb 11, 2018 10:28 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).