Cabinet approves revised cost estimate on \’Setting up of IPPB\’

News: The Union Cabinet chaired by the Prime Minister has approved the revision of project outlay for the setting up of India Post Payments Bank (IPPB).

Utility: UPSC, JPSC, BPSC Prelims & Mains
Section: Economy / Misc

Key Points

  • The objective of the project is to build the most accessible, affordable, and trusted bank for the common man.
  • It also enhances the financial inclusion agenda by removing the barriers for the unbanked and reducing the opportunity cost for the under-banked populace through assisted doorstep banking. 
  • The project supplements the Government of India’s vision of a “less cash” economy and at the same time promotes both economic growth and financial inclusion.

About IPPB

  • India Post Payments Bank (IPPB) was set up under the Department of Post, Ministry of Communication with 100% equity owned by the Government of India.
  • IPPB was launched as a pilot project on 30 January 2017 in Ranchi (Jharkhand) and Raipur (Chhattisgarh).
  • IPPB has expanded its strength across India covering post offices, through a network of 650 IPPB branches/controlling offices, working on a hub and spoke model.
  • IPPB has enabled 1.36 lakh Post Offices to provide banking services.
  • It has also equipped nearly 1.89 lakh Postmen and Gramin Dak Sevaks with smartphones and biometric devices to provide doorstep banking services.
  • Since the launch of IPPB, it has opened more than 5.25 crore accounts.
  • Out of the 5 crore accounts, 77% of accounts are opened in Rural areas, 48% are women customers with around Rs.1000 crore of deposit. 
  • Nearly 40 lakh women customers received Direct Benefit Transfer (DBT) into their accounts valued at Rs.2500 crore. 
  • More than 7.8 lakh accounts have been opened for school students.
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