India Post Payments Bank (IPPB) wants to convert itself to a universal bank as the vast network of post office branches would help in achieving financial inclusion, its MD and CEO J Venkatramu said on Tuesday.
He said when the IPPB started operations in 2018, 80% of the transactions would happen in cash. However, with technology adoption, presently only 20% of the transaction happens in cash and 80% digitally.
“Given the network of post offices, probably we fit the bill in terms of being the institution which can reach every nook and corner. If we get a full fledged banking licence, especially for financial inclusion, that will help us serve larger goals,” Venkatramu said at a CII event.
He was replying to a question on the bank approaching the Reserve Bank of India (RBI) for universal bank licence. Venkatramu credit is an important facet of financial inclusion as well as social upliftment, the vast network of post offices could help in financial inclusion and extending credit.
As a payment bank under the RBI, IPPB can extend services of deposits, remittances, internet banking and other specified services, but they cannot give loans or issue credit cards.
IPPB was incorporated on August 17, 2016 under Companies Act, 2013 as a public limited company with 100% government of India equity under the Department of Posts.
Speaking at the event, Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Anurag Jain emphasised on the importance of a “very” properly designed ecosystem for redressal of customer grievances.
“There could be a problem say 0.1% of the transactions or 0.01% but that will also add to huge number of transactions and the person who has lost the money… For you (payment banks) it may be a statistics… but the person who has lost the money, for him it is a problem,” Jain said.
