The government has allocated Rs125 crore as capital infusion for
India Post Payments Bank and Rs375 crore as grant in aid .
New Delhi: The government has
allocated Rs500 crore to India Post Payments Bank for the financial year
2017-18 as it gears up to set up 650 branches across country by September 2017.
The government has allocated Rs125 crore as “capital infusion
into corporate entity for India Post Payments Bank” and Rs375 crore as “grant
in aid to India Post Payments Bank (IPPB)”, as per Output-Outcome Framework for
Schemes 2017-18 for the department of posts (DoP) released on Monday.
India Posts is the second entity to roll out payments
bank—though on a pilot basis—in Raipur and Ranchi, after Airtel that has
earmarked Rs3,000 crore as initial investment for pan-India operations with an
interest rate of 7.25% on deposits. Besides, Airtel is offering free money
transfer from Airtel to Airtel numbers within Airtel Bank, money transfer to
any bank account in the country.
The IPPB will offer an interest rate of 4.5% on deposits up to
Rs25,000; 5% on deposits of Rs25,000-50,000 and 5.5% on Rs50,000-1,00,000. The
total paid up equity of the new bank IPPB is Rs 800 crore, of which the
government has already infused Rs275 crore.
Payments banks can accept deposits up to Rs1 lakh per account
from individuals and small businesses. The new model of banking allows mobile
firms, super market chains and others to cater to banking requirements of
individuals and small businesses. The allocation to IPPB is part of Rs1,034.13
crore earmarked for the department of posts. The second big chunk of the total
allocation, Rs279.6 crore, has been allocated for providing IT hardware and
software in identified rural areas for improved access to services and customer
satisfaction, resulting in increase in customer transactions, traffic and
revenue.
The DoP has been allocated Rs110.83 crore for establishing
e-commerce, parcel booking, international business centres, Rs73.5 crore for
estates management, Rs32 crore for mail operations and Rs17.7 crore for
equipments and IT infrastructure in rural post offices. The government has
allocated Rs3.8 crore for setting up 246 offices and 200 outlets for providing
better access to communication and financial services.
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