wordpress blog stats
Connect with us

Hi, what are you looking for?

India Post Payments Bank to be operational by September 2017


The department of posts’ payments bank will be called India Post Payments Bank (IPPB). The entity will commence commercial operations by September 2017 and get an approval from the Reserve Bank of India (RBI) by March 2017, the government said in a release.

It added that the IPPB will set up 650 payments bank branches. It will be further bolstered by linked post offices and alternative channels. To give context, the largest bank in the country is State Bank of India with over 13,000 branches. The total expenditure on the project is Rs 800 crore with the government owning 100% stake in the entity.

In January, as part of its payments bank operations, the department of posts said it would install 1,000 ATMs and a core banking solution at 25,000 post offices by March 2016.

Apart from accepting deposits, a payments bank can offer remittance services through branches, ATMs, Business Correspondents and mobile banking. They can also become business correspondents of other banks.

Focus on e-commerce and banking

Advertisement. Scroll to continue reading.

In 2014, the Indian government had set up a task force to explore ways of using the post office network in the country to provide last mile services. The task force report (pdf) has suggested that three separate subsidiaries be formed as part of a holding company under the Postal Department, that would focus on services in e-commerce, banking and insurance segments. Each of these subsidiaries would be operated as Strategic Business Units (SBUs).

Eight applicants remain

The department of posts got an ‘in principle’ nod to set up a payments bank in August last year along with 11 other companies. Of which three have surrendered their approval to the RBI. Earlier this month, Tech Mahindra and Sun Pharma promoter Dilip Shangvi announced that they would not be pursuing a business in payments bank. Dilip Shangvi had partnered with IDFC Bank and Telenor for the payments bank.

In March this year, Cholamandalam Investment and Finance Company had decided to abandon its plans to set up a payments bank, saying that the decision came from the board  after “considering competition and other factors, including the long gestation period”.

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



India and US come to terms on how to deal with the equalisation levy in light of the impending Global Tax Deal.


Find out how people’s health data is understood to have value and who can benefit from that value.


The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.


When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.


The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ