India Post Payments Bank, a state-owned challenger bank under the Indian government’s Department of Posts, has launched operations.
The bank, which launched by the Indian Prime Minister Narendra Modi, will leverage the network the post offices around the country with nearly 300,000 Postmen and Grameen Dak Sewaks to offer banking services in rural and remote areas.
India Post Payments Bank (IPPB) was scheduled to launch last month, however, it was delayed to September for various reasons.
Currently, the bank has 650 branches and 3250 access points across the country. By the end of this year, all the 155,000 post offices post in the country will be connected to the banking system.
During the launch, Prime Minister Modi said: “Through the India Post Payments Bank, banking services will conveniently reach the remotest places in the country, and the people living there.”
The IPPB will provide various banking services including savings and current accounts, fund transfers and direct benefit transfers through multiple channels.
Additionally, the customers will be able to utilise the bank’s infrastructure for making bill and utility payments as well as enterprise and merchant payments.
As a payments bank, IPPB will be able to take deposits up to INR100,000 (nearly $1400) from individual customers and small operating businesses.
Suresh Sethi has been appointed as the managing director and CEO of IPPB.