India Post Payment Bank is ready to become a global bank, know what is the planning of the government
When IPPB started in 2018, 80 per cent of transactions were in cash. However, with the adoption of technology by people, now 80 per cent of transactions are digital while only 20 per cent are in cash.
India Post Payments Bank (IPPB) Managing Director (MD) and Chief Executive Officer (CEO) J Venkataraman on Tuesday said that IPPB wants to transform itself into a global bank as the vast network of post office branches will help in achieving financial inclusion. He said that when IPPB started in 2018, 80 per cent of transactions were done in cash.
However, with the adoption of technology by people, now 80 per cent of transactions are digital while only 20 per cent are in cash. “If we get a full banking license, especially for financial inclusion, it will help us meet larger goals,” Venkataraman said at a Confederation of Indian Industry (CII) event.
He was replying to a question regarding the bank’s approach to the Reserve Bank of India (RBI) for a universal bank licence. He said that credit is an important aspect of financial inclusion as well as social upliftment. A vast network of post offices can help in financial inclusion and the expansion of credit.
India Post Payment Bank
India Post Payment Bank (IPPB) is a government-owned payments bank in India that was launched in September 2018. The bank was set up with the aim of providing financial services to underbanked and unbanked populations in India. IPPB is a subsidiary of India Post, which is India’s postal service.
IPPB provides a range of banking services, including savings and current accounts, money transfers, bill payments, and mobile recharge. The bank has a network of more than 650 branches and 136,000 access points across India, including post offices and other locations. IPPB also offers digital banking services through its mobile app, which allows customers to access their accounts, transfer money, and make payments using their smartphones.
IPPB is regulated by the Reserve Bank of India (RBI) and is subject to the same rules and regulations as other banks in the country. As a payments bank, IPPB is not allowed to lend money or issue credit cards, but it can accept deposits up to a limit of Rs. 2 lahks per customer. The bank also partners with other financial institutions to provide additional services such as insurance and mutual funds.
IPPB’s mission is to provide affordable and accessible banking services to all sections of society, especially in rural and remote areas where traditional banks have limited reach. The bank aims to promote financial inclusion and help India move towards a cashless economy.
Some additional details about India Post Payment Bank:
- Ownership: IPPB is a wholly-owned subsidiary of India Post, which is a government-owned enterprise under the Department of Posts, Ministry of Communications.
- Products and Services: In addition to the basic banking services mentioned earlier, IPPB also offers services such as Aadhaar-enabled payments, direct benefit transfer (DBT) payments, and digital banking services through its mobile app.
- Partnerships: IPPB has partnerships with several banks and financial institutions in India, including Punjab National Bank, Bajaj Allianz Life Insurance, and SBI Mutual Fund, to offer a range of financial products and services to its customers.
- Technology: IPPB uses state-of-the-art technology to provide secure and reliable banking services to its customers. The bank has partnered with several technology companies, including Infosys, FIS, and HP, to build its IT infrastructure.
- Financial Performance: As of March 2020, IPPB had a total income of Rs. 474 crore and a net loss of Rs. 1,490 crore. The bank has been working to improve its financial performance and increase its customer base.
- Awards and Recognition: IPPB has won several awards and recognition for its innovative banking services and contribution to financial inclusion in India. In 2019, the bank won the award for “Best Payments Bank” at the IAMAI India Digital Awards.
- Financial Inclusion: IPPB is focused on promoting financial inclusion in India, particularly in rural and remote areas. The bank has a network of more than 136,000 access points across the country, including post offices and other locations, to provide banking services to customers who may not have access to traditional banks.
- Digital Banking: IPPB offers digital banking services through its mobile app, which allows customers to access their accounts, transfer money, pay bills, and purchase insurance and mutual funds. The bank has also launched a QR code-based payment solution to make it easier for customers to make payments.
- Customer Base: As of March 2020, IPPB had more than 2.8 crore customers, with over 1.5 crore accounts opened in the financial year 2019-20. The bank has been working to increase its customer base and expand its reach in India.
- Partnerships with Government: IPPB has several partnerships with the Indian government to provide financial services to citizens. The bank is a key player in the government’s Digital India initiative, which aims to transform India into a digitally empowered society and knowledge economy.
- Challenges: IPPB faces several challenges as it works to expand its operations and increase its customer base. These include intense competition from other banks and financial institutions, regulatory hurdles, and the need to develop innovative products and services to meet the needs of its customers.
Overall, India Post Payment Bank is a significant player in India’s financial services sector, with a focus on financial inclusion and digital banking. The bank has made significant progress since its launch in 2018, and it will be interesting to see how it continues to evolve and grow in the coming years.