Prime Minister Modi will launch the ambitious India Post Payments Bank (IPPB) as well as the IPPB mobile application on August 21. The initiative will help the rural sector of the country have access to banking and financial services. Also, they will be able to make easy money transfers through the digital medium.
The aim of IPPB is for at least an access point of the bank to be present in each and every district of India. Currently, two branches of IPPB are functional and 648 more are yet to be launched.
Each of the 1.55 lakh India Post post office branches will be leveraged to offer the Payments bank services to its customers. This is expected to be completed by the end of 2018.
Once the IPPB branch offices in each district become functional, citizens, especially those of the rural sector, can transfer money digitally by visiting the nearest post office or by using the mobile application. IPPB has been permitted to carry out NEFT, RTGS, and IMPS transactions.
The government will also use the payments bank to distribute wages, pensions, subsidies, and so on under the National Rural Employment Guarantee Act (NREGA), 2005.
The IPPB mobile application will give digital access to the citizens to pay for electricity bills, college fees, recharges, DTH services, or any other payment of about 100 companies that are available under the Bharat Bill payments network of the National Payments Corporation of India (NPCI).
Source: Money Control