INDIA POST PAYMENTS BANK (IPPB)

About:

• India Post Payments Bank (IPPB) has been setup under the Department of Posts, Ministry of Communication with 100% equity owned by Government of India.
  
  
• It was launched as a pilot project in 2017 in Ranchi (Jharkhand) and Raipur (Chhattisgarh).
  
  
• Services provided:
  • Being a payment bank, it will not advance loans or issue credit cards to avoid risk like other banks to avoid risk.
    
    
  • But it will perform rest of the functions like accepting deposits, offering remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third-party fund transfers.
    
    
  • it will also deliver the benefits of schemes such as Pradhan Mantri Fasal Bima Yojana.
    
    
  
  
  
• Coverage: Initially, IPPB will have 650 Branches and 3250 Access Points spread across the country. By 31st December, 2018, all the 1.55 lakh Post Offices in the country will be linked to the IPPB system.
  
  
• Significance: By leveraging the vast network of the Department of Posts (with more than 3 lakh Postmen and Grameen Dak Sewaks), IPPB will significantly augment the reach of the banking sector in the country specially in the rural areas.