19 August 2016 Current Affairs: The India Post Payments Bank Limited (IPPB) was incorporated. In this regard, it has received the Certificate of Incorporation (CI) from the Registrar of Companies, Ministry of Corporate Affairs under the Companies Act, 2013 on 17 August 2016.
With this incorporation, the bank has become the first Public Sector Undertaking (PSU) under the Department of Posts (DoP).
The incorporation also paves the way for the constitution of the Board of the India Post Payments Bank Limited.
Features of India Post Payments Bank Limited : It will allow all citizens of India, especially the 40 percent of the country's population that is outside the ambit of formal banking in the country will benefit from this project.Its services will be available across the country through 650 payments bank branches, linked post offices and alternative channels riding on modern technology including mobiles, ATMs, PoS/m-PoS (mobile-Point of Sale) devices etc and simple digital payments.Coupled with the physical presence across 1.55 lakh post offices and the reach of “The Dakiya”, the India Post Payments Bank aims to become a powerful and effective vehicle of real financial inclusion in the country.
It will generate new employment opportunities for skilled banking professionals and will generate opportunities for propagating financial literacy across the country.It will create the largest bank in the world in terms of accessibility and in time, will encourage the move towards a less cash economy.
Considering the pace with which the bank has been incorporated, this could be the fastest roll out for a bank anywhere in the world.
Setting-up of the IPPB to further financial inclusion was one of the budgetary announcements in February 2015.The Department of Posts had obtained the "in-principle approval" of the RBI in September 2015 to set up the India Post Payments Bank.
In June 2016, the Union Cabinet approved its formation with 100 percent Union Government's equity.The India Post Payments Bank will leverage the Department’s network, reach, and resources to make simple, low-cost, quality financial services easily accessible to customers all over the country.
The DoP is expected to complete the roll out of its branches all over the country by September 2017.The aspiration for the India Post Payments Bank is to become the most accessible bank in the world riding on state of the art banking and payments technology.