India’s Union Cabinet has approved another INR8.2bn ($107.12m) equity investment in India Post Payments Bank (IPPB) to further financial inclusion in the country.
Concurrently, it has given an in-principal nod to the future investment of up to INR5bn to help IPPB meet regulatory requirements and carry out technological upgrades.
IPPB will use the proceeds to expand its services across the country by tapping the network of the Department of Posts.
According to the Indian government: “The objective of the project is to build the most accessible, affordable and trusted bank for the common man; spearhead the financial inclusion agenda by removing the barriers for the unbanked and reduce the opportunity cost for the underbanked populace through assisted doorstep banking.
“The project supplements Government of India’s vision of ‘less cash’ economy and at the same time promote both economic growth and financial inclusion.”
Founded in September 2018, IPPB operates 650 branches and has enabled around 136,000 Post Offices to offer banking services.
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It is said to have equipped around 200,000 Postmen and Gramin Dak Sevaks with smartphone and biometric devices to provide banking services at a customer’s doorstep.
Since its inception, IPPB has opened over 52 million accounts, with 77% of them in rural areas and 48% being women customers.
In September 2021, IPPB joined forces with LIC Housing Finance Limited (LICHFL) to offer home loans.