India Posts Payments Bank (IPPB) will partner with Punjab National Bank (PNB) to sell loans, Bajaj Allianz to offer insurance services and is in talks with the State Bank of India (SBI) to provide loans and mutual funds services, reports the Financial Express. MediaNama has reached out to the IPPB for a comment and will update this report if we hear from them. According to the Reserve Bank of India’s regulations, payment banks cannot undertake lending activities. However, it remains unclear if a payments bank can offer these services in partnership with another (commercial) bank, as is the case with IPPB. The IPPB has a provision under which whenever a deposit in an account exceeds Rs 1 lakh, it will be transferred to a Post Office Saving Banks (POSB), according to reports. It has received permission to link around 17 crore POSB accounts. As per RBI’s operating guidelines for payments banks, the aggregate limit for customers in their bank accounts should not exceed Rs 1 lakh. The central bank recently barred Fino Payments Bank from onboarding new customers after noticing that some customers deposited amounts exceeding Rs 1 lakh in their accounts. Set for launch Prime Minister Narendra Modi will launch IPPB this month. Operations will commence in 650 branches with at least one branch located in every district of the country. IPPB will focus on delivering financial services, particularly in rural areas by leveraging its massive network of 155,000 post office branches in the country. According to some reports, the government is trying to link all post office…
