The Union Cabinet on Wednesday approved Rs 820 crore financial support for India Post Payments Bank. The support will aid the state-run payments bank to penetrate deeper into the country, primarily in the rural area and work towards financial inclusion.
“There was a proposal to provide Rs 820 crore financial support to India Post Payments Bank (IPPB). It has been approved by the Cabinet,” the source told PTI.
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IPPB has more than five crore accounts currently and operates through 1.36 lakh branches, of which 1.20 lakh are in rural areas. The payments bank achieved the feat in January this year.
Approximately 48 per cent of its account holders are women, whereas 52 per cent are male.
“IPPB plays an instrumental role in carrying out the government’s social objectives. The support will help IPPB to advance the government’s agenda of financial inclusion, especially in the rural area,” the source told the news agency.
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IPPB claims to have achieved the world’s largest digital financial literacy programme by building a financially aware and empowered customer base leveraging the strength of 2.8 lakh post office employees.
It claims to have taken digital banking to the grassroot-level through interoperable payments and settlement systems of NPCI, RBI and UIDAI offering services in over 13 languages.
