Prime Minister Narendra Modi launched the payments bank of the Indian postal department that will take banking to the doorstep of every citizen through a network of post offices, postmen and grameen dak sewaks.
“Through the India Post Payments Bank (IPPB), we will reach every nook and corner of the country. Bank and banking services will be available at every person’s doorstep,” Modi said at the launch.
All the 1.55 lakh post offices in the country will be linked to the IPPB system by December 31 and postmen will provide doorstep banking to the customers.
Modi said, “Our government is bringing reforms into old processes to transform it. Now letters have been replaced by e-mails. But the goal is the same. The technology that challenged post offices, we have used the same technology to change challenge into opportunity.”
He said the IPPB will be helpful to farmers. Initiatives such as the Pradhan Mantri Fasal Beema scheme will benefit from it. With the help of the payments bank, people will get their claim amount at their homes.
The bank, which will be fully owned by the Union government, will provide savings and current accounts, remittances, money transfers, bill and utility payments and enterprise and merchant payments.
The payments bank will leverage tech platforms and offer a 4 per cent interest rate on savings accounts.
The payments banks can accept deposits of up to Rs 1 lakh per account from individuals and small businesses, but do not have the mandate for insurance and loans.
On the day of the launch, IPPB will have 650 branches and 3,250 access points across the country.