After the Department of Post received a payments banking licence from RBI last year, Prime Minister Narendra Modi is gearing up to launch the Department of Posts' India Post Payments Bank (IPPB) on September 1, live nationwide from the capital, to mark the occassion.
The phased rollout of the IPPB would be launched from state capitals and major cities on the same day. "For the launch, while PM will be doing it from Delhi, we have asked all state ministers and important people also to attend the launch of IPPB branches at all other places," said Manoj Sinha, minister of communications.
The launch function of IPPB at the capital would be held between 2.15pm to 3.15 pm on September 1.
The government plans to start with 32,000 outlets for the new payments bank, which will also have the backing of more than 17 crore deposit accountholders with the postal department India Post.
The service, once launched will be able to provide cash over counters, micro ATMs, bill payments and other mobile banking applications aimed at the rural population.
"So far depositors were not able to withdraw money quickly or pay for services. Now, we plan to provide all postal depositors with a IPPB account and provide all these facilities," said Sinha.
The minister said that more than 3 lakh postal workers would be trained to provide doorstep banking to the rural masses. Sinha said that IPPB aims to have 49,000 rural IPPB touchpoints by end of December this year.
The payments banking service when launched would be offering savings accounts, current accounts and business advances as well. Savings accounts depositors are expected to get four per cent interest rate.
"Going ahead we plan to have a number of corporate tie-ups. As a payments bank we have our limitations on offering services like insurance, mutual funds and others. These tie-ups would provide more financial reach to the rural masses.
A number of startups have also recently aimed to start similar services to rural masses for purchase of FD, short term mutual funds and insurance among others. India Post Payments Bank's entry is likely to make the financial services space more competitive and mainstream mobile banking to the rural areas of India.