Cabinet approves financial support of Rs 820 cr to India Post Payments Bank

The Union Cabinet on Wednesday approved additional funding of Rs 820 crore for

Briefing the media, Union Minister Anurag Thakur said out of just over 1.56 lakh post offices, the IPPB, currently operates from 1.3 lakh post offices.

He also said Cabinet had given its approval in principle for a future injection of funds worth Rs 500 crore into the IPPB to meet regulatory requirements and technology upgrade.

“The IPPB is going to extend its banking service to 1,56,434 post offices and the decision has been taken to invest Rs 820 crore in it so that the poorest of the poor, mothers and sisters living in rural areas can have access to banking services,” says Thakur.

According to an official statement, the Cabinet has approved the revision of project expenditure for the establishment of the IPPB from Rs 1,435 crore to Rs 2,255 crore as a capital injection to meet regulatory requirements.

“The goal of the project is to build the most accessible, affordable and trusted bank for the common man; to spearhead the financial inclusion agenda by removing barriers for the unbanked and reducing the opportunity cost for the underbanked population through assisted home banking.

“The project complements the Government of India’s vision of a ‘less cash’ economy and at the same time promotes both economic growth and financial inclusion,” the statement said.

The IPPB has enabled 1.36 lakh post offices to provide banking services. It has also equipped nearly 1.89 lakh postal workers and Gramin Dak Sevaks with smartphones and biometric devices to provide home banking services.

IPPB was launched in September 2018, with 650 agencies or control offices.

Since the launch, it has opened more than 5.25 crores of accounts with a total number of 82 crores in financial transactions. The transaction value is Rs 1,61,811 crore and comprises 765 lakh of Aadhaar enabled payment system transactions worth Rs 21,343 crore.

“Of the 5 crore accounts, 77% of the accounts are opened in rural areas, 48% are female clients with about Rs 1,000 crore deposit. Nearly 40 lakh female clients have received direct benefit transfer (DBT ) into their accounts worth Rs 2,500 crore. Over 7.8 lakh accounts have been opened for the students,” the statement said.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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