Our Bureau The much-awaited India Post Payments Bank (IPPB) will go live on Saturday with Prime Minister Narendra Modi set to launch its operations from the Talkatora Stadium here.

Ahead of the launch, the Union Cabinet on Wednesday gave its nod to revise IPPB’s project outlay from ₹800 crore to ₹1,435 crore. Of the additional ₹635 crore, ₹400 crore will be for technology costs, and ₹235 crore for human resource costs.

The state-run payments bank will start with 650 branches and 3,250 access points across the country.

“This will be the most accessible, affordable and trusted bank for the common man. It will aim at financial inclusion for the unbanked and under-banked population,” Communications Minister Manoj Sinha told reporters here, adding that IPPB is expected to be profitable in three years.

It will leverage tech platforms and offer 4 per cent interest rate on savings accounts. Payments banks can accept deposits of up to ₹1 lakh per account from individuals and small businesses, but do not have the mandate for insurance and loans.

“However, we have made provision for this through third-party products. We have entered into an alliance with Punjab National Bank for the Pradhan Mantri Jeevan Jyoti Bima Yojana. Also, in case of loans, IPPB will work as an agent of PNB. For life insurance, we have tied up with Bajaj Allianz Life Insurance,” Sinha said.

Around 40,000 postmen will provide doorstep banking through mini handheld devices and all the customers will have Aadhaar enrolment facilities through them, the government said on Wednesday. The last-mile agents will be fully trained — 18,000 people have received training while those deputed as master trainers will prepare the rest.

All money transfers will be done through biometric and QR code-based cards, Sinha said, adding that in December, 1.55 lakh access points will be opened (at postal branches), out of which 1.30 lakh will be in rural areas.

“This launch will more than double the number of bank branches in the country from the present 1.40 lakh to more than 2.90 lakh,” he said adding that the number of rural branches in the country will increase from the current 49,000 to more than 1.75 lakh.

The IPPB will have 11,000 micro ATMs in first year and so far the bank has opened four lakh accounts, he said. The government is floating tenders for purchase of smart phone for postal payment bank, Sinha added.

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