Prime Minister Narendra Modi will be launching 650 branches of the India Post Payments Bank soon as per reports. These IPPB branches will be set up all throughout the country in order to ensure better banking access, particularly in rural zones. The launch date will be officially announced over the next couple of days according to reports. These branches will come with access points throughout 1.5 lakh locations in the country. More than 1.3 lakh access points will be established in rural zones.
This will help bring rural zones within the aegis of the formal banking system as per reports. The Government will also be setting up a Passport Seva Kendra across every Lok Sabha Constituency or within a radius of 50 kilometres from the same. There are 251 Passport Seva Kendras in the country at present.
Payments banks are those which take care of all necessary banking operations in the manner of other banks. However, they do not provide any credit and can take deposits only up to Rs. 1 lakh for every account. There are many payments banks already operating in the country including the Airtel Payments Bank, Paytm Payments Bank and Idea Payments Bank among others. The rate of interest for commercial banks usually ranges between 3.5-6% as per reports. The RBI gave its approval to the IPPB (India Post Payments Bank) to start its operations in January 2017. Payments banks are meant to ensure greater financial inclusion for citizens throughout India, particularly in those areas which are majorly unbanked with limited access to formal banking services. Remote areas in the country will benefit considerably from this move.