The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval for revision of the project outlay for setting up of India Post Payments Bank (IPPB) from Rs. 800 crore to Rs. 1,435 crore.
The additional sum of Rs. 635 crore in the revised cost estimates is on account of Rs. 400 crore for technology and Rs. 235 crore for human resource costs.
IPPB services shall be available at 650 IPPB branches and 3,250 Access Points from 1st September 2018 and in all 1.55 lakh post offices (Access Points) by December 2018. The project will generate new employment opportunity for about 3,500 skilled banking professionals and other entities engaged in propagating financial literacy across the country.
The objective of the project is to build the most accessible, affordable and trusted bank for the common man; spearhead the financial inclusion agenda by removing the barriers for the unbanked and reduce the opportunity cost for the under banked populace through assisted doorstep banking.
The IPPB will provide bouquet of payments/financial services through its technology enabled solutions which will be distributed by the Department of Posts (DoP) employees/last mile agents transforming them from mail deliverer to harbinger of financial services.