The India Post Payments Bank (IPPB) will be launched on Septemeber 1, that aims to have at least one branch in every district and focus on financial services in rural areas.
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The payments bank was earlier to launch on Tuesday but was deferred after the demise of Atal Bihar Vajpayee, the former prime minister of India.
Though postal payment has not among the most popular banking methods because of the outdated technology, Prime Minister Narendra Modi has taken steps to make IPPB a potential competition with the existing payments banks such as Paytm and Airtel Payments Bank.
The IPPB remains to be a revolutionary change in the postal payments purview. India Post, which will now be evolved to be called the IPPB, was set up in the British-India era. The institution started its savings bank business in 1873 and insurance activities in 1884.
Since postal payments have been the oldest banking methods, the geographical infrastructure is strong enough to reach every nook and corner of the country, including the rural areas.
And now with the introduction of the online banking, IPPB attempts to give a wholesome banking experience to their customers.
Until 2006, people received money orders and were required to sanction it from the institution from their savings account in the post office. If not, the customer was to be physically present and fill out a withdrawal slip to debit and use the money saved in their post office savings account.
That year, the idea for the post office to function like a bank was proposed in the eleventh five-year plan. The idea was put into action later in 2014, when India Post opened its first ATM in Chennai.
Later that year, the customers were provided with their ATM-cum-debit card to use their postal savings account.
By now, online banking was being encouraged and was steadily picking up.
Right after ATMs came into the picture, the Narendra Modi government announced that the post office will have its own payments bank in Budget 2015.
From then till now, the government was working to create the payments bank and become as strong its competitors and will now be finally launched next month.
First Published: Aug 22, 2018 3:37 PM IST