Lok Sabha Question No. 5489 (UNSTARRED), answered on 2018-03-28
Subject: India Post Payments Bank
Ministry: COMMUNICATIONS
Asked by: NARANBHAI KACHHADIA, GAJANAN CHANDRAKANT KIRTIKAR, VIJAY KUMAR S.R., T. RADHAKRISHNAN, ANWHAR RAAJHAA, KUNWAR HARIBANSH SINGH, M. CHANDRAKASI, SUDHEER GUPTA, BIDYUT BARAN MAHATO

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF POSTS

## LOK  SABHA UNSTARRED QUESTION NO.5489 TO BE ANSWERED ON 28 th      MARCH, 2018

## INDIA POST PAYMENTS BANK

5489.  SHRI NARANBHAI KACHHADIYA:

SHRI GAJANAN KIRTIKAR:

SHRI S.R. VIJAYAKUMAR:

SHRI T. RADHAKRISHNAN:

SHRI A. ANWHAR RAAJHAA:

KUNWAR HARIBANSH SINGH:

SHRI M. CHANDRAKASI:

SHRI SUDHEER GUPTA:

SHRI BIDYUT BARAN MAHATO:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether the Government has set up the India Post Payments Bank (IPPB) as a Public Limited Company under the Department of Posts and if so, the details and the status thereof along with the benefits accrued/likely to be accrued therefrom;
- (b) the number of IPPB branches opened so far, State/UT-wise along with the time by which branches of the said bank are likely to be opened in all the States/ UTs;
- (c) whether  many  international  firms  including  global  banking  institutions  like  the  World Bank have reportedly expressed interest for getting associated with IPPB and if so, the details thereof and the action taken by the Government thereon;
- (d) whether  IPPB  has  signed  any  Memorandum  of  Understanding  (MoU)  with  foreign lenders regarding banking operations and if so, the details thereof;
- (e) whether IPPB has installed ATMs and issued Debit Cards across the country and if so, the details thereof including the number of ATMs installed and Debit Cards issued, State/UTwise; and
- (f) whether the Government has any proposal to promote/incentivize opening of new IPPBs in unbanked rural areas and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

- (a)    Yes,  Madam.  The  India  Post  Payments  Bank  (IPPB)  has  been  incorporated  as  a  Public Limited  Company under Department of Posts (DoP) with 100% Government of India equity on 17.08.2016.

IPPB aims to drive financial inclusion at the last mile, by bringing customers under formal banking channels and providing access to banking services at affordable rates. There are multiple socio-economic  benefits  that  would  be  realized  by  the  economy  at  large,  and  are  mentioned below:

- (i).      Migration  from  cash  based  transaction  to  digital  economy,  thus  removing  intermediaries leading to a more economical and efficient settlement of transactions
- (ii).      Reduction in opportunity costs in availing banking and financial services leading to higher economic outputs
- (iii) Access to formal credit channels (through 3 rd  party tie ups) leading to increase in business capacity (at better rates) and productivity compared to the higher costs incurred otherwise, leading to higher income and lower costs

(b) & (f) The  Reserve  Bank  of  India  (RBI)  has  granted  Payments  Bank  License  to  the department on 20.01.2017 and since then IPPB has launched its two pilot branches one each in Raipur  (Chhattisgarh)  and  Ranchi  (Jharkhand).  There  would  be  complete  integration  of    IPPB branches with the 1.55 lakh Post offices so that each Post office functions as both, a DoP outlet and an access point for the Payments Bank, subject to technical and commercial feasibility. The Pan India Rollout of 650 branches is to commence from April, 2018. The number of planned IPPB branches state wise is enclosed at Annexure I.

- (c) India  Post  Payments  Bank  is  in  early  stages  of  discussion  with  various  global  and domestic  institutions  to  enhance  their  product  suite,  as  per  the  Payment  Bank  guidelines governing 3 rd party products.
- (d) No
- (e) IPPB has not installed any ATMs so far. However, IPPB will leverage the DOP ATMs for its banking operations, which are already connected with the network of ATMs of other banks.

IPPB  has  issued  8,638  debit  cards  to its  customers  at  the  Raipur  and  Ranchi branches and access points.

| State        | No of Debit cards issued as on 31.12.2017   |
|--------------|---------------------------------------------|
| Chhattisgarh | 4,542                                       |
| Jharkhand    | 4,096                                       |
| Total        | 8,638                                       |

## State Wise details of IPPB branches

| S. No.   | State/UT                  |   Number of IPPB Branches |
|----------|---------------------------|---------------------------|
| 1        | Andaman & Nicobar Islands |                         1 |
| 2        | Andhra Pradesh            |                        24 |
| 3        | Arunachal Pradesh         |                        10 |
| 4        | Assam                     |                        26 |
| 5        | Bihar                     |                        38 |
| 6        | Chandigarh                |                         1 |
| 7        | Chattisgarh               |                        27 |
| 8        | Dadra and Nagar Haweli    |                         1 |
| 9        | Daman & Diu               |                         0 |
| 10       | Delhi                     |                         3 |
| 11       | Goa                       |                         1 |
| 12       | Gujarat                   |                        32 |
| 13       | Haryana                   |                        20 |
| 14       | HP                        |                        12 |
| 15       | J&K                       |                         8 |
| 16       | Jharkhand                 |                        22 |
| 17       | Karnataka                 |                        31 |
| 18       | Kerala                    |                        14 |
| 19       | Lakshwadeep               |                         1 |
| 20       | Madhya pradesh            |                        42 |
| 21       | Maharastra                |                        41 |
| 22       | Manipur                   |                         9 |
| 23       | Meghalya                  |                         8 |
| 24       | Mizoram                   |                         6 |
| 25       | Nagaland                  |                         9 |
| 26       | Odisha                    |                        33 |
| 27       | Puducherry                |                         1 |
| 28       | Punjab                    |                        22 |
| 29       | Rajasthan                 |                        33 |
| 30       | Sikkim                    |                         1 |
| 31       | Telangana                 |                        23 |
| 32       | Tamil Nadu                |                        36 |
| 33       | Tripura                   |                         5 |
| 34       | Uttar Pradesh             |                        73 |
| 35       | Uttarakhand               |                        12 |
| 36       | West Bengal               |                        25 |
|          | Total                     |                       650 |

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