The Cabinet on Wednesday approved 80 per cent increase in spending for India Post Payments Bank (IPPB) to Rs 1,435 crore, three days ahead of its slated mega, nation-wide launch by Prime Minister Narendra Modi.
The Government-backed IPPB is set to go live with 650 branches and 3,250 access points across the country on September 1.
It will offer financial services in rural areas including savings and current accounts, money transfer, direct benefit transfer, bill and utility payments and enterprise and merchant payments.
The increase will take IPPB project outlay to Rs 1,435 crore from Rs 800 crore — giving it additional firepower to compete in the market with existing operators like Airtel Payments Bank and Paytm Payments Bank.
The revised cost estimate of Rs 635 crore is on account of Technology Costs (Rs 400 crore) and Human Resource expenses (Rs 235 crore), said an official release.
A mega-event has been lined up to mark the all-India launch of IPPB — while the PM will inaugurate the services of IPPB at Talkatora stadium in the capital, various Chief Ministers, Governors, Central and State Ministers, and other senior Government functionaries will be present at the 650 branches that are slated to go live simultaneously (State capitals, major cities and towns).
IPPB that will ride on the expansive and “trusted” network of post offices and offer “doorstep banking” to the unbanked, creating one of the largest banking networks in the country, with significant rural presence.
“This will be the most accessible, affordable and trusted bank for the common man. It will aim at financial inclusion for unbanked and under-banked population,” Communications Minister Manoj Sinha told reporters here.
Government owns 100 per cent in IPPB, which has been set up under the aegis of Department of Post, and will offer products and services though multiple channels such as counter services, micro ATMs, mobile banking app, messages and interactive voice response.