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PM Modi to launch India Post Payments Bank on September 1, new service to provide banking and financial aid to people in rural areas

The postal payment bank has permit to carry RTGS, NEFT, IMPS transaction that will enable IPPB customers to transfer and receive money from any bank account.  

Edited by: India TV News Desk, New Delhi [ Published on: August 21, 2018 22:57 IST ]
Prime Minister Narendra Modi

Prime Minister Narendra Modi

Prime Minister Narendra Modi on September 1 will inaugurate the long-awaited India Post Payments Bank (IPPB). The new service will have at least one branch in every district and is mainly focused om providing financial aid to people living in rural areas, senior official said.

The launch of IPPB was rescheduled from August 21 to September 1 in the wake of seven-day mourning declared after the demise of former Prime Minister Atal Bihari Vajpayee.

IPPB will leverage reach of 1.55 lakh post office branches to provide banking and financial service to people in rural areas.

"Government is trying to link all the 1.55 lakh post office branches with IPPB services by the end of this year," the official said.

This will create the country's largest banking network with direct presence at village level.

IPPB CEO Suresh Sethi had earlier said that IPPB will go live with 650 branches in addition to 3,250 access points co-located at post offices and around 11,000 postmen both in rural and urban areas will provide doorstep banking services.

IPPB has permission to link around 17-crore postal savings bank (PSB) accounts with its account.

With IPPB in place, people in rural area will be able to avail digital banking and financial services, including money transfer, to any bank account either with help of mobile app or by visiting a post office.

IPPB was the third entity to receive payments bank permit after Airtel and Paytm. Payments banks can accept deposits of up to Rs 1 lakh per account from individuals and small businesses.

The postal payment bank has permit to carry RTGS, NEFT, IMPS transaction that will enable IPPB customers to transfer and receive money from any bank account.

With the third party tie-ups, account holders in IPPB will be able to avail financial services as in case of a regular banking customer.

The payment bank will be used by government to distribute NREGA wages, subsidies, pension etc.

The IPPB app which is expected to be launched on same day will enable customers to pay for services of around 100 firms including phone recharges and bill, electricity bill, DTH service, college fees etc that are present on Bharat Bill payments system of National Payments Corporation of India.

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