The Union Cabinet on Wednesday approved financial support of Rs 820 crore for India Post Payments Bank.
The cabinet approved the revision of the project outlay for setting up of India Post Payments Bank (IPPB) from Rs.1,435 crore to Rs. 2,255 crore as equity infusion to meet the regulatory requirements. The total financial expenditure involved under the proposal stands at Rs. 820 crore. The decision would help India Post Payments Bank pursue its objective of furthering financial inclusion across India by leveraging the network of the Department of Posts, said a statement.
"The Cabinet also granted in-principle approval for future fund infusion to the tune of Rs.500 crore for meeting regulatory requirements and technological upgrades," said the statement.
Since the launch of IPPB in 2018, it has opened more than 5.25 crore accounts with 82 crore aggregate financial transactions of Rs.1,61,811 crore which includes 765 lakh AePS transactions worth Rs. 21,343 crore. Out of the 5 crore accounts, 77% of accounts are opened in rural areas, and 48% are women customers with around Rs.1,000 crore of deposits. Nearly 40 lakh women customers received Direct Benefit Transfer (DBT) into their accounts valued at Rs. 2,500 crore. More than 7.8 lakh accounts have been opened for school students, said the statement.
In Aspirational Districts, IPPB has opened around 95.71 lakh accounts having 602 lakh aggregate transactions worth Rs.19,487 crore. In Left Wing Extremism (LWE) districts, 67.20 lakh accounts have been opened by IPPB having 426 lakh aggregate transactions worth Rs.13,460 crore, the statement said.
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