1.1
In the Budget 2015-16 speech in the Parliament, the Hon’ble Finance Minister
announced the Government’s intention to set up the Payments Bank by Department
of Posts to promote financial inclusion and ease access of the people to the
formal financial system. The Department of Posts has received ‘In Principle’
approval from RBI on 7th Sept, 2015 for setting up of a Payments Bank.
1.2
The Payments Bank will be set up on a lean operating model. It will focus on
financial inclusion by harnessing low-cost technology based solutions to extend
access to formal banking especially in rural areas and among unbanked and under
banked segments of the society.
1.3
The main objectives of the India Post Payments Bank will be to bring a large
number of individuals and small businesses into formal banking channel by
facilitating
Demand
Deposits - Savings account of upto Rs. 1 lac and
-
Current Accounts with special focus on MSMEs, Small entrepreneurs / merchants,
Village Panchayats, SHGs etc.
·
Direct
Benefits Transfer (DBT) of social security payments of various Ministries to
beneficiaries.
·
Utility
bill payments for electricity, water, telephone, gas etc.
·
Payments
of various Central and State Govt & Municipal dues and fees of various
Universities / Educational institutions.
·
Person
to Person remittances both domestic and cross-border with special focus on
migrant labourers, low income households.
·
Distribution
of third party financial products such as insurance, mutual funds, Pension
& credit products.
1.4
Present status:
