India Post Payments Bank's nationwide roll-out in May
5 Feb 2018 10:41 PM IST
New Delhi: India Post Payments Bank plans to roll out its branches across India from May 2018 with an investment of about Rs 1,450 crore, Postal secretary Ananta Narayan Nanda said on Monday.
"By April, all our systems will be ready. We will start rolling out all India Post Payments Bank (IPPB) branches between May and September," Nanda said.
He said all 1.55 lakh post office branches will operate as access points and 650 payments bank branches will provide them back-end support.
"Initially, Rs 800 crore fund was approved for IPPB but now due to some cost escalation, we will launch branches with an investment of Rs 1,450 crore. This includes investment in hardware, software, training and staff cost, among others," Nanda said.
In 2015, RBI had granted 'in-principle' approval to 11 entities, including the Department of Posts, to set up payments banks. Payments banks can accept deposits of up to Rs 1 lakh per account from individuals and small businesses.
Unlike traditional banks, payments banks are not allowed to give loans or credit to customers.
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