All post office branches to be linked with IPPB in 5 months: Sinha

The Department of Posts will link all post office branches with the India Post Payments Bank (IPPB) in the next 5 months to provide full fledged digital banking services across the country, Union Telecom Minister Manoj Sinha said today.

"There are two India Post Payments Bank operational and soon we will start another 648 of its branches at all district centres. All 650 post payments bank will be connected to rural post offices. With this, in coming five months there will be 1.5 lakh more new banks. We will facilitate functions similar to those done by big banks," Sinha said while launching an app for insurance service of the postal department.

He said this will create huge financial services network for rural areas.

Sinha said IPPB branches will start functioning after technology vendor completes the work of operating the banking network.

The minister launched the postal insurance app which will enable people in rural areas to pay for insurance premium and get the receipt instantly.

"Premium of post office insurance is less than that of LIC and we pay more bonus. We have opened Postal Life Insurance for professionals also. In last four months, the revenue of insurance service with new customers has increased by Rs 6 crore. With DARPAN-PLI app, people can pay premium through it and their account will be immediately updated," Sinha said.

The app will be downloaded by post masters on their handheld device which is being provided to over 1.29 lakh rural post offices with a total outlay of Rs 1,300 crore.

The DoP has provided handheld devices to 61,941 branch offices and it will be provided in rest of the rural post offices by December.