The Cabinet also gave approval in principle for future fund infusions of ₹500 crore to meet regulatory requirements and technology upgrades
The union cabinet on Wednesday approved an additional £820m in funding for the establishment of FY21 to FY23 branches of India Post Payments Bank (IPPB), bringing total spending to £2,255m.
Cabinet “has approved the revision of project spending to set up IPPB from £1,435m to £2,255m as an equity injection to meet regulatory requirements,” read an official statement, adding that Cabinet also approved the Approved in principle future capital contributions of ₹500 crore to meet regulatory requirements and technology upgrades.
The goal of the project, the government said, is to build the most accessible, affordable and trusted bank for the common man; Lead the financial inclusion agenda by removing the barriers for the unbanked and reducing opportunity costs for the unbanked population through assisted doorstep selling.
India Post Payments Bank was launched on September 1, 2018 with 650 branches/control offices. Since then it has opened more than 5.25 billion accounts representing a total of 82 billion financial transactions worth £1,61,811 billion, including 765 lakh AePS transactions worth £21,343 billion.
“Of the 5 billion accounts, 77% of accounts are opened in rural areas, 48% are female customers with around £1,000 billion in assets. Nearly 40,000 female customers received Direct Benefit Transfer (DBT) into their accounts worth ₹2,500 crore. More than 7.8 lakh accounts have been opened for students,” the statement said.
In Aspirational Districts, IPPB has opened approximately 95.71 lakh accounts with 602 lakh total transactions worth £19,487 million, while in Left Wing Districts (LWE) IPPB has opened 67.20 lakh accounts with 426 lakh total transactions worth £13,460 million opened.
