India Post Payments Bank – A Game Changer

The Department of Posts has started a new type of banking system called India Post Payments Bank (IPPB) from the year 2018. It is a 100% Government owned Payments Bank operating under Ministry of Communication. It aims to provide doorstep banking services to the every citizen of India through all its Post Offices and postal service workers. This Bank could reach to rural and such remote areas of the country where commercial banks are not able to reach today. The one main objective of starting of Payments Banks is additional financial inclusion. It provides tiny savings accounts and payments/remittance services to all the sections of the society and to every nook and corner of the country. The benefits received from IPPB may include farmers, migrant labour personnel, tiny businesses, different unorganised sectors, households having low income, students etc. The IPPB could provide digitally driven house to house financial services. With such huge potential and far-reaching impact on people’s life, IPPB can bring a historic transformation. While the underlying potential of the IPPB is enormous, there are significant shortcomings associated with it too. So, it is necessary for the Government to control these shortcomings on time and to check whether the current revenue model is adequate for IPPB’s sustenance. India Post Payments Bank could be “A Game Changer” if it succeeds in future and it would really be a miracle if that happens.