Prime Minister Narendra Modi on 01 September 2018 launched the payments bank of Indian postal department that will take banking to the doorstep of every citizen through an unmatched network of post offices and almost 3 lakh postmen and ‘Grameen Dak Sewaks’.
The India Post Payments Bank (IPPB) will be like any other banks but its operations will be on a smaller scale without involving any credit risk. It will carry out most banking operations like accepting deposits but can’t advance loans or issue credit cards.
What is India Post Payments Bank?
The IPPB is a public sector company where the Indian government holds 100% equity and will leverage the vast network of the Department of Posts (DoP) that has more than three lakh postmen and Grameen Dak Sewaks. It will be governed by the Reserve Bank of India.
Simultaneously, there were launch events at 650 branches and 3,250 access points that went live.
What does the bank offer?
The freshly-minted payments bank will accept deposits of up to Rs 1 lakh, offer remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third-party fund transfers.