Dak Sevaks will become teachers for the masses, they will teach them how to do digital transactions, said Prime Minister Shri Narendra Modi, inaugurating the India Post Payments Bank, at Talkatora Stadium, New Delhi yesterday. The function was held at over 3,000 locations across the country, all of which were connected to the main event in Delhi.
Speaking on the occasion, the Prime Minister said that through the India Post Payments Bank, banking services will conveniently reach the remotest places in the country, and the people living there. He recalled that the Union Government had earlier rolled out the Jan Dhan Yojana to establish financial inclusion. He said that today’s launch of IPPB is one more step to achieve this objective. He said IPPB branches have opened across 650 districts yesterday.
Enumerating the benefits of IPPB, he said it will enable money transfer, transfer of government benefits, bill payments and other services such as investment and insurance. He added that postmen would deliver these services at the doorstep. He said that IPPB will also facilitate digital transactions, and help deliver the benefits of schemes such as Pradhan Mantri Fasal Bima Yojana, which provide assistance to farmers.
Hon’ble Governor of Maharashtra Sh. C. Vidyasagar Rao inaugurated Andheri branch of IPPB at Raj Bhavan, Mumbai. In his address, the Governor said that IPPB is a historic decision towards achieving the goal of financial inclusion through the creation of the largest network of banking services with strong presence in rural areas.
Shri Rao further said that Department of Posts has rendered 165 years of service to the nation and has become an integral part of life of the people of India. The Department has touched the life of the last person and has set up an example of trust, transparency and people-friendliness. The humble postman has inspired poets and lyricists to write songs and poems. That is the power of Posts, he said.
Explaining the loan provision to young entrepreneurs, the Governor said that IPPB is joining hands with financial organizations to provide loans, investment and insurance products which will help youth of India to start new enterprises; it will also help farmers to augment their income through supplementary trade.
Chief Minister of Maharashtra Shri Devendra Fadnavis was the Chief Guest at the function held at General Post Office, Mumbai. The CM inaugurated the Girgaon branch of the IPPB at General Post Office. A special cover was released and QR cards were distributed to 5 account-holders on this occasion. Shri Fadnavis termed it a historic occasion and thanked all the employees of Postal department for their continuous support. He cited the Economic Survey observation that DBT has led to savings of Rs. 75,000 crore.
The CM said that IPPB will take DBT to the next level. It will herald a new era of financial inclusion with 1,30,000 access points all over the country, which is 2.5 times the number of bank branches in rural India today. Using Aadhaar Database for consumer KYC will substantially lower the cost of consumer acquisition, a benefit which will be transferred to the consumer, the CM said.
IPPB will help all sections of the population – including senior citizens, small traders and migrant population in particular. With use of biometric credentials for transactions, it will not be necessary to remember either account number or PIN.
IPPB will leverage public infrastructure like National Payments Corporation of India, Payment Settlement System and will lead to security of financial sector besides giving fillip to indigenisation. Department of Posts is a pioneer in financial inclusion, with over 17 crore post office saving accounts for 40 crore customers. Dak Sevaks will act like a friend, philosopher and financial guide for rural masses. It will be win-win situation for IPPB and consumers, the CM said.
To build the most accessible, affordable and trusted bank for the common man and to spearhead the financial inclusion agenda by removing the barriers for the unbanked and underbanked population is the prime vision and mission behind the launching of IPPB. IPPB has been set up under the Department of Posts, Ministry of Communications, with 100% equity owned by Government of India.
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IPPB will offer a range of products such as savings and current accounts, remittances and money transfer, direct benefit transfers, bill and utility payments, and enterprise and merchant payments etc. These products, and related services, will be offered across multiple channels (Counter Services, Micro-ATM, Mobile Banking App, SMS and IVR), using a bank grade, cutting-edge technology platform. IPPB will partner with financial organizations to provide loans, investment and insurance products.
The IPPB has a vast network, with a rural India penetration of 1,30,000 access points (Post Offices), which is nearly 2.5 times the number of bank branches in rural India today. A large work force of 3 lakh+ Postmen and Gramin Dak Sevaks (GDS) will offer Assisted Doorstep Banking in rural, urban and remote areas.
Inputs shared by Ministry of Communications, India.