This month the government of India officially announced its vision of establishing 650 operational branches of India Post Payments Bank (IPPB) by September next year. These branches would be set up across all the major districts of the nation. Currently, India Post operates an estimated 25,000 post offices across the country and the launch of payment banks is expected to provide a much needed boost to India’s Postal System.
The announcement was made by Ravi Shankar Prasad, the Minister of Information Technology and Communication, also mentioned that the plan was being prioritized in order to enhance the financial inclusiveness of those residing in remote areas of the country.
As per sources, the budget allocated to this project is an estimated Rs. 800 crores. The project workforce requirement expected to be around 3.5 lakh, which would create employment opportunities in rural as well as urban areas. Additionally, the project is expected to benefit India’s Grameen Dak Sevaks who have been neglected in the past.
In collaboration with other financial service providers and banks, the Indian Post Payment Bank would be equipped to provide key financial products like mutual funds, credit products and pensions. Keeping pace with changing technologies, this attempt by the government of India is a major step towards digital banking, benefits transfers, remittances and payment introduction especially in the rural areas.