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Modi launches India Postal Bank with a message to loan defaulters

S Ronendra Singh New Delhi | Updated on September 02, 2018 Published on September 01, 2018

IPPB to offer doorstep banking, drive financial inclusion

  Giving a political twist while launching the India Post Payments Bank (IPPB) on Saturday, the Prime Minister Narendra Modi said that not a single big loan defaulter was given loan by the NDA government and all were before 2014, with support of ‘one family’.

 

“Four-five years back, majority of funds with banks was reserved only for those close to one family. Our own government brought the truth of the NPA, the scam of the previous government in front of the country. We not only detected the disease, but also searched for the cause and took several important steps to repair the disease,” Modi said.

 

 

 

In the last four years, all the loans above Rs. 50 crore have been reviewed and it is being ensured that the conditions of the loan are strictly followed, he said. “We changed the law, decided to merge the banks and promotion of professional approach in the banking sector,” he said.

 

While highlighting the medals tally in the Asian Games with best of the performances this year, Modi also highlighted the growth of GDP at 8.2 per cent for the first quarter this year, which shows the growing power of India's economy. “This brings forth the bright picture of a new India,” he said.

 

Praising the Telecom Minister Manoj Sinha on the successful launch of IPPB and how Sinha’s background of IIT (BHU) brought a lot of technology into IPPB, Modi said that IPPB is going to make a big difference in the country's economy, in social order.

“Our government has sent lakhs of poor families to the bank for the first time through ‘Jandhan Yojana’ and today's work has been started to bring the bank to the door of the village and the poor,” he said.

 

The Indian Postal Department has 1.5 lakh post offices and more than three-lakh postmen are related to the people of the country, and the government is taking the initiative to create the most powerful system of service in the 21st century by connecting such a comprehensive network with technology, he said.

 

Modi added that apart from savings bank account and insurance, the IPPB will also provide current accounts for small time traders and merchants, especially in the rural areas who survive on such work.

 

“Under the RBI rule, the balance in any IPPB account can not be more than Rs.1 lakh, but the customer can transfer the money automatically from the IPPB account to the Post Office Savings Bank Account according to the requirement,” Telecom Minister Manoj Sinha said.

 

The biggest thing is that all these facilities will be made available to the citizens of the country, wherever they are, or from any class, with the three-lakh postmen at their doorstep. That is why the bank has slogan “Aapka Bank Aapke Dwaar” (Your bank at your door), he added.

The IPPB will be available through 650 branches and 3,250 access points as of now. The government owns 100 per cent in IPPB, which has been set up under the aegis of the Department of Posts, and will offer products and services though multiple channels such as counter services, micro ATMs, mobile banking app, messages and interactive voice response.

It will also use Aadhaar to open accounts, while a QR card and biometrics will drive authentication, transactions, and payments. Grameen Dak Sewaks will be armed with smartphones and biometric devices to handle transactions.

It will offer 4 per cent interest rate on savings accounts. IPPB has teamed up with financial services providers like PNB and Bajaj Allianz Life Insurance for third-party products like loans and insurance.

The Cabinet, earlier this week, approved an 80 per cent hike in spending on IPPB to Rs 1,435 crore – for human resource and technology costs -- so that it can compete with existing operators like Airtel Payments Bank and Paytm Payments Bank.

 

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Published on September 01, 2018
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