What is the Indian Post Payment Bank (IPPB)?
The Indian Post Payment Bank (IPPB) is a government-owned bank that provides financial services through post office branches across India. It offers services such as opening accounts, depositing and withdrawing money, and making payments.
IPPB provides a range of services, such as:
- Savings and current accounts
- Deposits
- Money Transfer
- Direct benefit transfer
- Bill and utility payments
- Micro-insurance
- Micro-pensions
- Micro-credit
- third-party financial services such as mutual funds, insurance, and pensions.
The bank has been set up as a public sector company under the Department of Posts with 100% equity owned by the Government of India. It's an ambitious project of the Government of India to leverage the vast network of post offices across the country to provide financial services. Moreover, for the unbanked and under-banked sections of society. It aims to provide last-mile connectivity to customers and bring the unbanked into formal banking.
It is a game-changer in providing banking services to the rural and remote areas of the country, as post offices are present in even the most remote locations, which banks do not serve. It will also help to increase financial literacy and inclusion in the country.
IPPB History
The government established the Indian Post Payment Bank (IPPB) in 2016. The idea of utilising the vast network of post offices in the country to create a payment bank had been discussed for several years before its official establishment.
In January 2015, the Reserve Bank of India (RBI) gave "in-principle" approval to 11 applicants, including the Department of Posts, to set up payment banks. The Department of Posts then began the process of setting up the IPPB.
Moreover, in August 2016, the Union Cabinet approved the proposal to set up the IPPB as a public sector company. Furthermore, the Government of India has 100% equity in this.
In September 2016, the IPPB received the final licence from the Reserve Bank of India (RBI) to set up and operate as a payment bank.
In January 2017, the IPPB officially launched operations by opening its first pilot branch in Raipur, Chhattisgarh. The bank began by offering services such as opening accounts, depositing and withdrawing money, and making payments.
In August 2018, the IPPB officially launched its services across the country. Since then, it has expanded its services and reached out to the country's remotest corners.
Advantages of Indian Post Payment Bank
The Indian Post Payment Bank (IPPB) offers several advantages for individuals and businesses in India:
- Wide Reach: The IPPB has a vast network of post office branches across the country, which allows the bank to reach even the most remote areas. Thus, it means that people in rural and remote areas can access banking services that were previously unavailable to them.
- Financial Inclusion: The IPPB aims to increase financial inclusion by providing banking services to individuals and businesses that do not have access to traditional banking services.
- Low-Cost Services: The IPPB offers low-cost services, which makes them accessible to a wider range of customers.
- Convenience: The IPPB provides a range of services, such as opening accounts, depositing and withdrawing money, making payments, and transferring, which makes banking more convenient for customers.
- Digital Integration: IPPB is fully digitalised and integrated with the government's digital platforms like Aadhaar, UPI, and BHIM, which enables customers to access banking services through a mobile app, internet banking, and other digital channels.
In summary, IPPB provides a range of services tailored to the needs of the unbanked and under-banked population and aims to increase financial inclusion and access to banking services in India.
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