Business

India Post Payments Bank Pan-India Roll Out From April

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| February 10 , 2018 , 20:23 IST

India Post Payments Bank on Saturday said that it will begin the pan-India rollout of its network system from April this year.

India Post Payments Bank(IPPB) Expansion Program keeps on gaining energetic ground and rolls out across the country is planned in starting April 2018," the Department of Posts said in a statement.

All 1.55 lakh post office branches will work as access points and 650 payments bank offices will give them back-end support.

"Once the proposed expansion is completed, IPPB will be providing the largest financial inclusion network in the country, covering both urban as well as rural hinterland with the ability to provide digital payment services at the doorstep with the help of Postmen and Gramin Dak Sewaks (GDS)," the statement said.

In 2015, RBI had allowed 'in-principle' approval to 11 entities, including the Department of Posts, to set up payments banks. Payment banks can accept deposits up to Rs 1 lakh for every account from people and private companies. Unlike traditional banks, payments banks are not permitted to give loans or credit to clients.

The new model of banking allows mobile firms, grocery store chains and others to take into account managing account prerequisites of people and private companies. An instalments bank is a separated bank and limits its exercises to acceptance of demand deposits, remittance services, Internet banking and other specified services.

IPPB will be the third payments bank to have full operations after Airtel Payments Bank and Paytm.

"IPPB will also enable more than 17 crore active account-holders of Post Office Savings Bank to make interoperable digital payments including the benefit of NEFT, RTGS, UPI and bill payment services. Additionally, the IPPB will enable acceptance of digital payments across post offices in the country in line with the digital payments initiative of the government," the statement said.

IPPB launched its pilot benefits in Raipur and Ranchi in January 2017.