Economy / Banking System In India / India Post Payments Bank (IPPB).
India Post Payments Bank (IPPB).
Background:
In 2014, the Government of India (GOI) formed a task force led by T.S.R. Subramanian to explore ways to leverage the extensive postal network for expanded services in banking, insurance, and e-commerce. This initiative resulted in the establishment of the India Post Payments Bank (IPPB).
Key Features of IPPB:
- Ownership and Structure:
- IPPB is a public limited company under the Department of Posts, Ministry of Communications, with 100% government equity.
- Infrastructure:
- Aims to utilize India's vast postal network, comprising 1,55,000 post offices and involving 3,00,000 postal service workers.
- The first phase of IPPB was launched in 2018, featuring 650 branches and 3,250 post offices as access points.
- Rural Focus:
- Recognizing the significant rural coverage of post offices, with 90% located in rural areas.
- Each post office serves approximately 7,200 people, making it an extensive and accessible network.
- Financial Services:
- IPPB facilitates house-to-house banking services, leveraging the existing postal infrastructure.
- In addition to traditional banking services, IPPB focuses on financial literacy initiatives to ensure equal access to financial information and services.
- Streamlining Payments:
- Enables beneficiaries to access income from government Direct Benefit Transfer (DBT) programs, including MNREGA wages, social security pensions, and scholarships directly from their IPPB accounts.
- Offers the convenience of bill payments for utilities and educational fees.
- Financial Inclusion:
- Aims to reach hundreds of millions of unbanked and under-banked individuals across various sections of society and geographical locations.
- Facilitates access to government benefits, loans, insurance, and interest on savings for those who previously lacked banking facilities.
- Access Channels:
- Offers services through various channels, including internet and mobile banking.
- Provides prepaid instruments such as mobile wallets, debit cards, ATMs, Point of Sale (PoS) terminals, and Mobile Point of Sale (MPoS) terminals.
IPPB's strategic approach focuses on leveraging the extensive postal infrastructure to enhance financial inclusion, streamline payments, and provide essential financial services to underserved populations across India.
