Lok Sabha Question No. 3895 (UNSTARRED), answered on 2025-03-24
Subject: Granting Small Finance Bank Status to IPPB
Ministry: FINANCE
Asked by: Shri Abhay Kumar Sinha

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. †3895

Answered on Monday, March 24, 2025/Chaitra 3, 1947 (Saka)

Granting Small Finance Bank Status to IPPB

†3895. Shri Abhay Kumar Sinha:

Will the Minister of Finance be pleased to state:

- (a) whether the Government is considering to grant Small Finance Bank (SFB) status to India Post Payment Bank (IPPB) and if so, the details thereof and  the number of IPPB branches currently operational in the country along with the number of such branches in Bihar, districtwise;
- (b) whether the Government is formulating any special scheme to enhance financial inclusion in small enterprises and rural areas, if SFB status is granted to IPPB;
- (c) whether the Government is aware that RBI had imposed a fine of Rs. 26.70 lakh on IPPB in February 2025 and the steps taken to improve banking standards and customer service;
- d) whether granting SFB status to IPPB is helpful in improving access to banking services in rural and semi-urban areas; and
- (e) the number of new subscribers likely to be benefitted from this change?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (e): Banking Licences are granted by the Reserve Bank of India (RBI) as per the relevant provisions of the Banking Regulation Act.

As per the guidelines issued by the RBI on 5.12.2019 for 'on tap' Licensing of Small Finance Banks (SFBs), entities  that  are  owned  by  the  Government  and  public  sector  entities  are  not eligible to promote or convert into SFB.

Department of Posts (DoP) has informed that India Post Payments Bank (IPPB) has 1 branch and around 1.64 lakhs access points across the country.  District-wise details of access points in Bihar is at Annex.

Further, RBI, vide its order dated 15.1.2025, has imposed a monetary penalty of ₹ 26.70 lakhs on IPPB for non-compliance with certain directions issued by RBI on 'Customer Service in Banks'.

DoP has informed that corrective measures have already been taken by the IPPB to remove technical bug, which caused the issue leading to imposition of the fine.

***

Lok Sabha Unstarred Question No. †3895 for answer on Monday, March 24, 2025 District-wise details of Access Points of IPPB in Bihar

| SI.no.   | District Name      |   IPPB Banking Access points |
|----------|--------------------|------------------------------|
| 1        | Araria             |                          174 |
| 2        | Arwal              |                           95 |
| 3        | Aurangabad         |                          306 |
| 4        | Banka              |                          211 |
| 5        | Begusarai          |                          227 |
| 6        | Bhagalpur          |                          267 |
| 7        | Bhojpur            |                          306 |
| 8        | Buxar              |                          186 |
| 9        | Darbhanga          |                          359 |
| 10       | Gaya               |                          403 |
| 11       | Gopalganj          |                          197 |
| 12       | Jamui              |                          197 |
| 13       | Jehanabad          |                          129 |
| 14       | Kaimur             |                          139 |
| 15       | Katihar            |                          180 |
| 16       | Khagaria           |                          156 |
| 17       | Kishanganj         |                           83 |
| 18       | Lakhisarai         |                           97 |
| 19       | Madhepura          |                          204 |
| 20       | Madhubani          |                          435 |
| 21       | Munger             |                          116 |
| 22       | Muzaffarpur        |                          428 |
| 23       | Nalanda            |                          348 |
| 24       | Nawada             |                          198 |
| 25       | Paschimi Champaran |                          281 |
| 26       | Patna              |                          448 |
| 27       | Purbi Champaran    |                          429 |
| 28       | Purnia             |                          193 |
| 29       | Rohtas             |                          324 |
| 30       | Saharsa            |                          171 |
| 31       | Samastipur         |                          383 |
| 32       | Saran              |                          394 |
| 33       | Sheikhpura         |                           94 |
| 34       | Sheohar            |                           60 |
| 35       | Sitamarhi          |                          279 |
| 36       | Siwan              |                          329 |
| 37       | Supaul             |                          203 |
| 38       | Vaishali           |                          302 |
|          | Total              |                         9331 |

Source: Department of Posts