‘IPPB will improve financial inclusion’ 

Pune:  With Prime Minister Narendra Modi all set to launch India Post Payments Bank (IPPB) services on September 1, experts have cited the move as a strategic one which will improve India’s status on financial inclusion. 

The government has chosen the Department of Posts to facilitate banking services in remotest parts of India. About 650 branches of postal payments bank will go live in the country on September 1.

The Department of Posts (DoP) has over 1.55 lakh post offices in India, of which 1.39 lakh are rural post offices. Around 650 branches of IPPB will go live in the country which will be linked to rural post offices for delivery of services. 

Speaking about the move, Post Master General(PMG) of Mumbai Ganesh Sawaleshwarkar said till date people were reaching to the banks and now IPPB will reach to the people thus giving access to financial services and improving financial inclusion in the country. “Four services are important to improve financial inclusion status which includes providing a bank account, loan facility, banking facility and insurance services. We will provide zero balance bank accounts and banking facilities to people in remotest regions of India. Currently, we will not have loan facility for people it will be totally payment facility,” added Ganesh. 

The PMG said postmen will have mobile phones to carry out banking operations in all parts of the country. “Biometric details of the people will be collected while opening bank account of people,” added Ganesh. 
Post Master General of Pune, FB Sayyed said they are yet to receive all details of the launch. 

“People might have to pay a nominal charge for availing these banking services. Similarly, postmen will get incentives for helping people while they avail the banking service at their doorstep. Payments banks can accept deposits of up to Rs 1 lakh per account from individuals and small businesses. They can provide RTGS, NEFT, IMPS transactions and transfer and receive money from any bank account. Currently our aim is financial inclusion and DoP will stand strong to provide the best of the services,” added Sayyed. 

Speaking about the move Rajas Parchure, Director of Gokhale Institute of Politics and Economics, said the move is indeed a milestone and is a welcome move. “It will certainly improve the financial inclusion part in India. India Post can lead the way in financial inclusion with its given network and reach. It has a legacy and has trust of people and so will go long way in catering to people,” added Parchure. 

The DoP officials said the move will improve brand value of DoP.