Indian Post Payment Banks(NBFC’s in India) Flashcards
NEWS
India Post Payments Bank (IPPB) has marked a significant milestone in the world of banking services with its continued profit streak, demonstrating its commitment to sustainable financial inclusion and citizen empowerment.
IPPB on August 22,2023 reported its first-ever operational profit of Rs 20.16 crore for 2022-23. The bank saw a 66.12% growth in overall revenue.
What is India Post Payments Bank (IPPB)?
Launched on September 1, 2018, with 100% equity owned by the Government of India.
IPPB embarks on its transformative journey with the launch of pilot branches.
Pilot branches opened in Ranchi, Jharkhand, and Raipur, Chhattisgarh.
Leveraging India’s vast postal infrastructure with 1,55,000 Post Offices and 3,00,000 postal employees.
Vision: To create an accessible, affordable, and trusted bank for all citizens.
Principles and Approach:
IPPB adopts the principles of India Stack to drive its operations.
Paperless, Cashless, and Presence-less Banking: Aims to facilitate banking through innovative technology and secure transactions.
Implements Biometrics integrated smartphones and biometric devices for seamless transactions.
IPPB delivers simple and affordable banking solutions through intuitive interfaces available in 13 languages.
Empowering Financial Inclusion:
IPPB is committed to serving the unbanked and underbanked.
Contributed to the vision of a less cash economy and Digital India.
Ensured equal opportunities for financial security and empowerment.
Empowerment Initiatives:
Recognized the tireless contributions of Postmen/Gramin Dak Sevaks.
Introduced ‘Niveshak Didi’ initiative, for empowering women beneficiaries.
IPPB introduced services including loan referral services, low-cost health & accidental products like Antyodaya Shramik Suraksha Yojana for Shramyogis registered on the e-Shram portal, Digital Life Certificate to pensioners, citizen services initiatives like Aadhaar-mobile update, child Aadhaar enrolment, Aadhaar based banking transactions (AePS), enabling citizen access to govt. Direct Benefit Transfer programmes like PM KISAN etc.
Future Goals:
Aims to transform into a Universal Service platform.
Leverages technology for expanded accessibility and reach.
Focuses on innovation to empower citizens and contribute to a digitally inclusive society.
Payment Bank
Payments banks were part of the Reserve Bank of India’s strategy of offering differentiated banking licenses.
A committee headed by Dr. Nachiket Mor recommended setting up of ‘Payments Bank’ to cater to the lower income groups and small businesses.
A payments bank is a differentiated bank, offering a limited range of products.
It can accept demand deposits only that is savings and current accounts, not time deposits.
Payment banks are restricted to holding a maximum balance of Rs. 2,00,000 (Rupees Two lakh only) per individual customer.
Payment Banks cannot accept Non-Resident Indian (NRI) deposits.
The Payment Banks cannot set up subsidiaries to undertake non-banking financial services activities.
