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Government focuses on boosting banking and financial services in rural areas

World News 8-10-2018 1577

Government focuses on boosting banking and...

August 21 has been finallydeclared by the Prime Minister Narendra Modi to be the date to launch long sought afterproject; i.e. India Post Payments Bank (IPPB). It is decided to have minimum of one branch per district.Focus of these banks will be primarily on financial services to be provided to the rural people of India.

There are a total of 650 branches of IPPB right now. Two are already operational and the remaining are targeted to be launched by 21st August, 2018.The IPPB app is also expected to go live on same day.This app will enable customers to pay for servicesthat are there on Bharat Bill payments system of National Payments Corporation of India. For instance; phone and DTH bills, electricity charges, and college fees.

In addition to this, IPPB will also work through the 3250 access points which are co-located with post offices. There will also be approximately 11000 postmen operating in the rural and urban area. They will be responsible for providing banking services at the doorstep.

Moreover, the government has also set the goal to link all the post office branches with Payments Bank by end of the year 2018. As per the officials there are a total of 1.55 lakh post office branches in India and all are to be leveragedby IPPB to provide effective banking and financial service to the rural areas of the country.

Formation of IPPB promises creation of country's widest banking and financial network and that too with direct presence at the rural level.

IPPB has been granted the permission to link approximately 17 crores of postal savings bank (PSB) account with its account.

IPPB will bring facilities like digital banking, online financial services, online money transfer using mobile at an easy disposal of rural and backward areas.With IPPB in place, people in rural area will be able to avail digital banking and financial services, including money transfer, to any bank account either with help of mobile app or by visiting a post office.

In addition to Bharti Airtel and Paytm, IPPB is the next and only entity to receive payments bank permit.Payments banks are those banks which are allowed toaccept deposits up to one lakh rupees per account from individuals and small businesses. IPPB has the permission to carry RTGS, NEFT, IMPS transactions also. It will enable their customers to easily and efficiently transfer or receive money online from any bank account; without having to visit anywhere. The government would distribute NREGA wages, subsidies, pensions, and other selected payments through IPPB.

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IPPB promises a lot in the name of development of banking and financial services for rural people.

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