Lok Sabha Question No. 470 (UNSTARRED), answered on 2021-12-01
Subject: Post Payment Bank
Ministry: COMMUNICATIONS
Asked by: Rahul Ramesh Shewale, Girish Bhalchandra Bapat, Chandra Sekhar Sahu, Pritam Gopinath Munde

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF POSTS

## LOK SABHA UNSTARRED QUESTION NO. 470 TO BE ANSWERED ON 1 ST  DECEMBER, 2021

## POST PAYMENT BANK

470. SHRI RAHUL RAMESH SHEWALE: SHRI CHANDRA SEKHAR SAHU: DR. PRITAM GOPINATHRAO MUNDE: SHRI GIRISH BHALCHANDRA BAPAT

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether Post Payment Bank was established under the Department of Posts with 100% equity owned by the Union Government and if so, the details thereof;
- (b) whether India  Post  Payments  Bank  (IPPB)  has  signed  any  partnership  deal  with  Bajaj  Allianz Life Insurance Company;
- (c) if  so,  the  details,  salient  features  of  the  said  partnership  deal  and  percentage  of  partnership  of Bajaj Allianz Life Insurance Company in the IPPB;
- (d) whether Department of Posts has made any assessment of the partnership deal as to how it will be beneficial to them keeping in view of their tremendous infrastructure all over the country as compared to their counterpart; and
- (e) if so, the details in thereof?

## ANSWER

## MINISTER OF STATE FOR COMMUNICATIONS (SHRI DEVUSINH CHAUHAN)

- (a) Yes Sir,  India  Post  Payments  Bank  (IPPB)  has  been  established  under  the  Department  of Posts, Ministry of Communication with 100% equity owned by Government of India. IPPB did a nationwide launch on Sep 1, 2018 with 650 branches/controlling offices, almost one in each district in the country. As of now, IPPB has enabled 1.36 lakh Post Offices to provide Banking services and has equipped nearly 1.86 lakh Postmen and Grameen Dak Sevaks with a smartphone and biometric device to provide Doorstep Banking Services across the country.
- (b) Yes Sir.
- (c) IPPB provides digital platform for distribution of different insurance products as per IRDA guidelines  through  the  extensive  network  of  post  offices  as  well  as  at  the  doorstep  through Postmen/Gramin Dak Sevaks.

Bajaj Allianz Life Insurance Company was shortlisted through a bidding process among top ten life insurance companies (as per IRDA data) in the year 2018. IPPB in partnership with Bajaj Allianz  Life  Insurance  Company  offers  term  and  annuity  insurance  products  to  the  customers  of IPPB through the Department of Posts network. IPPB shall get commission as per IRDA guidelines for each policy sold under the arrangement. This arrangement is purely commercial and as per the regulatory  provisions,  Bajaj  Allianz  Insurance  Company  does  not  hold  any  equity  percentage  in IPPB.

(d) Yes Sir.

(e) Term and Annuity Insurance products being offered through DoP network under the partnership are complementary to existing Insurance offerings under Postal Life Insurance. Thus, the partnership shall enable DoP to offer a wider range of Insurance products and services across the country, in particular among underserved and unserved segments and shall enhance Insurance penetration in the country. In addition DoP and IPPB shall earn revenue as part of Commission for every Insurance policy sold under the partnership.

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