The Union Cabinet has approved additional funding of ₹820 crore for India Post Payments Bank (IPPB) for 2020-21 to 2022-23.
It has approved the revision of project outlay for the setting up of IPPB from ₹1,435 crore to ₹2,255 crore as equity infusion to meet regulatory requirement.
Technological upgradation
The Cabinet also granted an in-principle approval for future fund infusion to the tune of ₹500 crore for meeting regulatory requirements and technological upgradation.
This additional funding into IPPB will help it further penetrate rural areas and aid financial inclusion, said Anurag Thakur, Union Minister for Information & Broadcasting (I&B), after the Cabinet meeting.
The decision is expected to help IPPB pursue its objective of furthering financial inclusion across India by leveraging the network of Department of Posts.
It maybe recalled that IPPB did a nationwide launch on September 1, 2018, with 650 branches/controlling offices. IPPB has enabled 1.36 lakh Post Offices to provide banking services and has equipped nearly 1.89 lakh Postmen and Gramin Dak Sevaks with smartphone and biometric devices to provide doorstep banking services.
Since the launch of IPPB, it has opened more than 5.25 crore accounts.
Of the 5 crore accounts, 77 per cent of accounts were opened in rural areas, and 48 per cent are women customers with around ₹1,000 crore of deposit. Nearly 40 lakh women customers received Direct Benefit Transfer (DBT) into their accounts valued at ₹2,500 crore. More than 7.8 lakh accounts have been opened for school students.