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prelims Test Series 2019
सेमिनार: अंग्रेज़ी सीखने का अवसर (23 सितंबर: दोपहर 3 बजे)
India Post Payments Bank Incorporated
Aug 27, 2016

The India Post Payments Bank Limited has received the Certificate of Incorporation from the Registrar of Companies, Ministry of Corporate Affairs under the Companies Act 2013. This would be the first PSU under the Department of Posts. With this move the Department of Posts has cleared an important milestone on this journey.

  • With the incorporation, the Board of the India Post Payments Bank Limited is likely to be constituted soon.
  • The incorporation of the IPPB Ltd is a significant step forward as this also paves the way for the bank to begin hiring of banking professionals to set up the bank and begin its operations in 2017.
  • The Department of Posts is expected to complete the roll out of its branches all over the country by September 2017. 
  • This could be the fastest roll out for a bank anywhere in the world. 
  • The aspiration for the India Post Payments Bank is to become the most accessible bank in the world riding on state of the art banking and payments technology. 
  • Coupled with the physical presence across 1.55 lakh post offices and the reach of The Dakiya, the India Post Payments Bank aims to become a powerful and effective vehicle of real financial inclusion in the country. 
  • It is poised to create a national payments architecture riding on a modern payments platform and ubiquitous information and communication technologies that can be accessed by all users and service providers like never before.

What is Payment Bank?

The term Payment Banks is new and seems to have been invented in Indian context.   In September 2013, a Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, headed by Nachiket Mor, was formed by the RBI.   By January 2014, the Nachiket Mor committee submitted its final report and one of its recommendations was the formation of a new category of bank called payments banks.

  • Payments bank licence will allow companies to collect deposits (initially up to Rs 1 lakh per individual), offer Internet banking, facilitate money transfers and sell insurance and mutual funds.
  • The objectives of setting up of payments banks will be to further financial inclusion by providing small savings accounts and payments/remittance services to migrant labour workforce, low income households, small businesses, other unorganised sector entities and other users.
  • Such banks will ensure more money comes into the banking system and will help reach out to people in rural areas.
  • The payments bank cannot undertake lending activities.
  • The payment banks should have a high powered Customer Grievances Cell to handle customer complaints.
  • The operations of the bank should be fully networked and technology driven from the beginning, conforming to generally accepted standards and norms.

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