India Post Payments Bank (IPPB), floated by the postal department, has received Reserve Bank of India’s final nod to commence commercial operations. The Centre has appointed AP Singh, who was earlier Joint Secretary in the Department of Investment and Public Asset Management, as the interim Managing Director and CEO of IPPB.

Singh was also in the founding team of the Unique Identification Authority of India.

As a differentiated bank, IPPB will confine its activities to acceptance of demand deposits, remittance services and other specified services. It can accept deposits up to ₹1 lakh per account from individuals. India Posts Payments Bank has been set up as a company, wholly-owned by the government. In 2015, the RBI had granted ‘in-principle’ approval to 11 entities, including the Department of Posts, to set up payments bank. Since then, three companies/consortia had backed out and dropped their plans.

Of the remaining eight, Airtel has been first off the block to launch its payments bank with the promoters committing to an initial investment of ₹3,000 crore.