Prime Minister Narendra Modi on August 21 will launch long-awaited India Post Payments Bank (IPPB) that will have at least one branch in every district and focus on financial services in rural areas, a senior official said.
"The Prime Minister has given time on August 21 to launch IPPB. Two branches of the bank are already operational. Rest of the 648 branches will be launched across country in every district," a senior official of the communications ministry told PTI.
IPPB will leverage reach of 1.55 lakh post office branches to provide banking and financial service to people in rural area.
"Government is trying to link all the 1.55 lakh post office branches with IPPB services by the end of this year," the official said.
This will create the country's largest banking network with direct presence at village level.
Last week, IPPB CEO Suresh Sethi said that IPPB will go live with 650 branches in addition to 3,250 access points co-located at post offices and around 11,000 postmen both in rural and urban area will provide doorstep banking services.
IPPB has permission to link around 17 crore postal savings bank (PSB) account with its account.
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.
IPPB was the third entity to receive payments bank permit after Airtel and Paytm. Payments banks can accept deposits up to Rs 1 lakh per account from individuals and small businesses.
The postal payment bank has permit to carry RTGS, NEFT, IMPS transaction that will enable IPPB customers to transfer and receive money from any bank account.
The payment bank will be used by government to distribute NREGA wages, subsidies, pension etc
The IPPB app which is expected to be launched on same day will enable customers to pay for services of around 100 firms including phone recharges and bill, electricity bill, DTH service, college fees etc that are present on Bharat Bill payments system of National Payments Corporation of India.