IPPB (India Post Payments Bank) is planning to roll out its nationwide branches from the month of May, 2018. The total investment for this purpose will be approximately Rs. 1, 450 crore. All systems are expected to be in place by April, 2018. All IPPB branches will be rolled out throughout India between May and September, 2018. 1.55 lakh post office branches will be functioning in the manner of access points while back-end support will be offered by 650 payments bank branches.
IPPB initially had a fund of Rs. 800 crore approved and post the escalation in costs, the branches will be launched with this initial investment tally. This will cover investments made in training, hardware, costs of staff and software among other aspects. RBI had previously approved 11 entities in the year 2015 for establishing payments banks. These banks can take deposits up to Rs. 1 lakh per account from small businesses and individuals. However, payments banks cannot offer credit or loans to their clients.
This new banking model will enable supermarket brands, mobile firms and other companies to take care of banking needs at a micro level. Payments banks will cover remittance services, demand deposits and internet banking among other functions. IPPB will be the third such payments bank to fully start operations post Paytm and Airtel Payments Bank. Doorstep banking solutions will be offered by IPPB and it launched pilot services across Ranchi and Raipur in January, 2017. This will be expanding to 650 branches throughout India by September, 2017.
IPPB is expecting to break even within its third operational year. There are close to 17 crore savings bank accounts in post offices which will have IPPB services. IPPB will also have a 3, 500 strong workforce and has commenced another recruitment drive to hire 1, 700 people as per reports.