Question : Business of India Post Payments Bank

(a) whether India Post Payments Bank (IPPB) has asked Finance Ministry to provide Rs.1000 crores as capital for expansion;

(b) if so, the details thereof;

(c) whether the business of IPPB is not performing as it was initially anticipated and if so, the details thereof and the reasons therefor;

(d) the details of the business transacted by IPPB during each of the three years, State/UT-wise;

(e) whether the IPPB is facing any difficulty with regard to RBI’s directive on payment bank and if so, the details thereof; and

(f) the details of financial and other assistance received by IPPB in 2021-22 budget?

MINISTER OF STATE FOR COMMUNICATIONS, EDUCATION AND
ELECTRONICS & INFORMATION TECHNOLOGY
(SHRI SANJAY DHOTRE)

(a) No Sir.
(b) In view of (a) question does not arise.
(c) India Post Payments Bank (IPPB) was launched on 1st September, 2018 to spearhead the Financial Inclusion mission of the Government. Since then it has been able to provide banking service across the country through its 650 branches and 1.36 Lakh access points. It provides doorstep banking services through around two lakh Postman/Gramin Dak Sevaks equipped with smartphone and biometric devices. In a short span of time the bank has opened around 4.23 crore accounts.
Further, the Bank’s financial performance for FY 2020-21 reflects consistent improvement in business at all levels. The income in the current financial year (in the initial 9 months between 1st April 2020 to 31st Dec 2020) has more than doubled compared to last Financial Year while the total deposits of the Bank have increased by more than 150% upto Feb 2021.
(d) State/UT wise details of business transacted by IPPB during last three financial years is at Annexure-I.
(e) Difficulties faced by IPPB are similar to those faced by other Payment Banks such as limit of Rs. 1 Lakh on deposits, limited revenue streams and inability to offer credit and earn revenue thereof.

(f) No financial and other assistance has been received by IPPB in 2021-22 as on date.