Business

September 15, 2017

IPPB to become India’s second-largest payments bank


IPPB

In a move to become India’s second-largest payments bank in terms of reach, India Post Payments Bank (IPPB) is all set to provide its financial services through its 1.55 lakh post offices and 3 lakh employees by the end of 2018.

In this regard, IPPB’s CEO A.P. Singh said, “We will have post bank footprint in every district by March 2018, and before the end of the calendar year, all 1.55 lakh post offices and every postman and grameen dak sevak, which is another 3 lakh, will be equipped with a device which will provide full range of payment solutions that we will be hosting.”

Singh then said, “While our private sector counterparts will, I take it very positively, skim the market from the top, you need someone who works bottoms up. That is our choice,” adding that, “Similar to State Bank of India that was created to take banking to people, IPPB is going to take digital payments to masses.”

In addition, R.S. Sharma, Chairman of Telecom Regulatory Authority of India (TRAI), said, “Transaction cost on digital payment should be very minimal and it should be made affordable.”

As stated by Singh, IPPB will use Aadhaar as payment address of an individual, indicating that the postal bank may bring the transaction charge close to 1 paisa. Singh concluded saying, “We will convert it (Aadhaar) into payment address. We will get this activated by offering a host of payment services. We have taken up the challenge on ourselves as to how we make a Rs 10 transaction viable; Aadhaar authentication cost less than 1 paisa. There is no reason why a payment transaction should be transacting anything more.”

What is a Payments bank?

Payments bank is a new model of banks conceptualized by the Reserve Bank of India (RBI). These banks can accept a restricted deposit. They can issue services like ATM cards, debit cards, net-banking, and mobile-banking, but they cannot issue loans and credit cards. The new model of banking allows mobile firms, supermarket chains, and others to cater to banking requirements of individuals and small businesses. It will be set up as a differentiated bank and will confine its activities to acceptance of demand deposits, remittance services, Internet banking, and other specified services.

Related Post

latest News

  • Delhi HC Bids Farewell To Justice Indira Banerjee On Her Appointment As CJ Of Madras HC

    On April 3, the Delhi High Court bid farewell to hon'ble Justice Indira Banerjee on her ladyship's appointment as the Chief Justice of Madras High Cou...

    Read More
  • Tencent acquires 12% stake in Snapchat parent Snap

    On November 8, China’s Tencent Holdings Ltd has bought a 12% stake in Snapchat parent Snap Inc. turning over a 20 percent slide in the U.S. company'...

    Read More
  • Politics criminals' paradise: Orissa HC

    The Orissa High Court, while rejecting the bail plea of the ex-sarpanch of Mardakote, Simachala Samal, who is an accused in a murder case, said that t...

    Read More