The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday gave its approval for revision of the project outlay for setting up 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 Costs and Rs. 235 crore for Human Resource Costs.
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 underbanked populace through assisted doorstep banking.
The government-backed IPPB services will be available at 650 IPPB branches and 3250 Access Points from 1st September 2018. In all, 1.55 lakh post offices (Access Points) will be available by December 2018.
The IPPB will provide a bouquet of financial services through its technology-enabled solutions which will be distributed by the Department of Posts (DoP) employees transforming them from mail deliverer to harbinger of financial services.
Moreover, it will pay commission to the last mile agents (Postal Staff and Gramin Dak Sewaks) directly in their accounts for providing IPPB services so as to motivate them to promote IPPB digital services to the customers. Apart from this, a part of the commission will be used for increasing the wherewithal of Post office.
The project will generate new employment opportunity for about 3500 skilled banking professionals and other entities engaged in propagating financial literacy across the country. It will also supplement the Government's vision of "less cash" economy and at the same time promote both economic growth and financial inclusion.
The robust IT architecture of IPPB has been built taking into consideration bank-grade performance, fraud and risk mitigation standards and in line with the best practices from payments and banking domain.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)