Cabinet approves revised outlay for India Post Payments Bank

New Delhi : A Union Cabinet meeting chaired by Prime Minister Narendra Modi on Wednesday approved the revision of the project outlay for India Post Payments Bank (IPPB) from Rs 1435 crore to Rs 2255 crore as equity infusion to meet regulatory requirements.

The Cabinet also granted in principle approval for future fund infusion to the tune of Rs 500 crore for meeting regulatory requirements and technological upgradation.

Briefing the media, Union Information and Broadcasting Minister Anurag Thakur said that the objective of the project is to build the most accessible, affordable and trusted bank for the common man; spearhead the financial inclusion agenda by removing the barriers for the unbanked and reduce the opportunity cost for the under banked populace through assisted doorstep banking.

The project supplements the government’s vision of a “less cash economy” and at the same time promote both economic growth and financial inclusion, Thakur added.

India Post Payments Bank had a nationwide launch on September 1, 2018 with 650 branches/controlling offices. The IPPB has enabled 1.36 lakh post offices to provide banking services and has equipped nearly 1.89 lakh postmen and gramin dak sevaks with smartphones and biometric devices to provide doorstep banking services.

Since the launch of the IPPB, it has opened more than 5.25 crore accounts with 82 crore aggregate number of financial transactions with Rs 1,61,811 crore which includes 765 lakh number of AePS transactions worth Rs 21,343 crore.

Out of the over 5 crore accounts, 77 percent of the accounts were opened in the rural areas where in 48 per cent are women customers with around Rs 1000 crore of deposit, Thakur informed.

Nearly 40 lakh women customers received Direct Benefit Transfer (DBT) into their accounts valued at Rs 2500 crore. More than 7.8 lakh accounts have been opened for school students.

In Aspirational Districts the IPPB has opened around 95.71 lakh accounts having 602 lakh aggregate transactions worth Rs 19,487 crore.

In Left Wing Extremism (LWE) districts, 67.20 lakh accounts have been opened by the IPPB having 426 lakh aggregate transactions worth Rs 13,460 crore.

The total financial expenditure involved under the proposal stands at Rs 820 crore.

The decision will help India Post Payments Bank pursue its objective of furthering financial inclusion across India by leveraging the network of the Department of Posts, the Minister added.

–IANS

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