Department of Post have Post Office Savings Bank (POSB) service that was started in 1882 to facilitate small savings in the country. It operates as an agency of the Ministry of Finance and caters to the basic savings needs of the citizens. All the 1.55 Lakh Post Offices in the country provide the basic banking products of the POSB. Of these 25,353 are departmental Post Offices which are manned by the regular government employees. POSB has not yet able to compete with the banking sector that provide any where any time banking. After putting POSB on CBS platform it becomes largest entity in the country on the CBS platform surpassing all the banks. This feat was achieved in less than four years. As on today 1000 ATMs are functional in the country. The ATMs are interoperable with other bank. Now customers can access their CBS POSB account from anywhere in the country. In addition to this IPPB will Complement POSB and DOP will be able to compete with the banking sector in terms of online/digital world.
The vision of IPPB is to build the most accessible, affordable and trusted bank for the common man, to spearhead the financial inclusion agenda of the Government. It will leverage the vast network of the Department of Posts, which covers every corner of the country with more than 300,000 Postmen and Grameen Dak Sewaks. This will enable IPPB to bridge the last-mile gap in banking services.
India Post is the world’s largest postal network to account on commercial performance parameters, while at the same time utilising its vast network to push its various social objectives. It become more relevant when Hon’ble Prime Minister Narendra Modi hinted at these strengths while tweeting that the “postman along with a teacher is the most respected government employee in rural areas”. Financial inclusion has been the lodestar by which the government wants to steer the financial system. This gives birth to India Post Payment Bank Ltd. Company (IPPB). With the establishment of IPPB now CBS accounts can be used for MGNREGS, DBT, social security pensions and other programs of the Government of India. All the CBS accounts will now be integrated with AEPS and APBS. Services like RTGS, NEFT, POSB debit cards at POS as digital payments, full fledged internet and mobile banking may be taken over by India Post Payment Bank Ltd. (IPPB) in near future.
· IPPB is a boost to the growing e-commerce sector, while at the same time ensuring last-mile delivery of an array of government services, ranging from benefit transfers under MNREGS to old age pensions and health insurance for the poor. This is why the proposed corporatisation of India Post is a welcome development, since it will provide a measure of autonomy to the commercial arms of the department .
The bank will offer a range of products such as savings and current accounts, money transfer, direct benefit transfers, bill and utility payments, and enterprise and merchant payments. These products, and related services, will be offered across multiple channels (counter services, micro-ATM, mobile banking app, SMS and IVR), using the bank’s state-of-the-art technology platform. All the 1.55 lakh Post Offices in the country will be linked to the IPPB system by December 31, 2018.
While the Prime Minister was the Chief Guest at the nation-wide launch at the Talkatora Stadium in New Delhi, simultaneous launch events held at all 650 branches and 3250 access points of IPPB across the country. Senior dignitaries of the Central and State Governments graced these events with their presence. The Chandigarh IPPB branch was launched by Smt. Kirron Kher Hon’ble Member of Parliament and Sh. Davesh Mudgil, Mayor Chandigarh as guest of honour along with Sh. Anil Kumar Chief Postmaster General, Punjab & UT Chandigarh at a mega event organized by the Department of Posts at Auditorium, Post Graduate Govt. College for Girls, Sector-42, Chandigarh.
In the function Smt. Kirron Kher released a Special Postal Cover to commemorate the event of IPPB launch . She also handed over the Quick Response Card to IPPB account holders who opened the accounts today .