Prime Minister Narendra Modi launched the India Post Payments Bank (IPPB) at a function in New Delhi today.
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.
The IPPB will have 650 branches and 3,250 Access Points across the country. All the 1.55 lakh Post Offices in the country will be linked to the IPPB system by the 31st of December this year.
Speaking on the occasion, Prime Minister Narendra Modi said, the launch of this system marks a historic day in the banking sector and this is going to bring a big change in the social system of the country. He said, with this launch, the banking facilities will reach the doorstep of the people in the remotest parts of the country.
He said, postmen and Gramin Dak Sewaks will not only bring letters but also bring banking services at the doorstep of the people. He said, besides, enabling money transfer and other services such as investment and insurance, the IPPB will also facilitate digital transactions, and help deliver the benefits of schemes such as Pradhan Mantri Fasal Bima Yojana.
The Prime Minister said, the postman has long been a respected and accepted person in the villages and the trust in the postman remains, despite the advent of modern technology.
He said that the Government’s approach is to reform existing frameworks and structures, and transform them in accordance with the changing times.
The Prime Minister said, India Post have 1.5 lakh post offices and over three lakh postmen are associated with this system and they will be empowered with smartphones and digital devices to provide financial services.
Mr Modi also mentioned that in recent months, several steps have been taken for the welfare of Dak Sevaks and to meet their long pending demand.
The Prime Minister also hit out the previous governments led by Congress, saying their policies have destroyed the banking sector. He said, the huge NPAs are the cause of UPA policies and this government has not only identified the cause of rising NPAs but also took measures to deal with them.
He said, the government has not given any big loan in its tenure. He said, action has been initiated against the 12 big defaulters were given loans to before 2014 resulting a total NPAs of 1.75 lakh crore rupees. He asserted that the government will bring back money from those who have defrauded the banks.
The Prime Minister said that Mudra loans worth over 13 lakh crore rupees have been given so far to the poor and middle class, for creating self-employment opportunities.
He said, as India achieves its best ever Asian Games performance and the economy shows excellent growth numbers, the entire country is full of new self-confidence.
He said it is a result of the collective efforts of the people. He said today India is not just the fastest growing economy in the world, but also the country that is eradicating poverty the fastest.
Speaking on the occasion, Communications Minister Manoj Sinha said, IPPB will provide accessible, hassle free and easy financial services to those who have no access to financial services.
He said, at present, there are around 50,000 thousand branches functional in rural areas and 1.30 lakh branches will be added in these areas.
India Post Payments Bank has been envisioned as an accessible, affordable and trusted bank for the common man to help speedily achieve the financial inclusion.
It will leverage the vast network of the Department of Posts, which covers every part of the country with more than three lakh Postmen and Grameen Dak Sewaks.