RBI Gives Final License to India Post to Start Payment Bank Operations
The India Post has received the final license from the Reserve bank of India to start its operation as payment bank with the name India Post Payment Bank (IPPB). With this India Post has become the third entity to get the license from the Central Bank RBIto start payment bank services. Earlier, BhartiAirtel and digital payments firm Paytm got the approval from RBI and till now only Airtel has started operations AP Singh has been anointed as the interim MD and CEO of the India Post Payment Bank by the government. Initially each post office in the country will offer post bank services. The department of Post has planned to open 650 new branches for the payment banks in the postal district headquarters and all the branches under it would provide the payment services. The Department of Post has a network of about 1,55,000 post offices.
IPPB has been incorporated as a Public Sector Bank under the Department of Posts with 100% GOI equity. Payments banks can accept deposits from individuals and small businesses of up to Rs 1 lakh per account.