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INDIA POST PAYMENTS BANK (IPPB) (issues and challenges facing the IPPB…
INDIA POST PAYMENTS BANK (IPPB)
About IPPB
incorporated as a public sector company under the department of posts, with 100% government equity and is governed by the Reserve Bank of India
will focus on providing banking and financial services to people in rural areas by linking all the 1.55 lakhpost office branches with India Post Payments Bank
will create the country’s largest banking network
It will offer a range of products—savings and current accounts, money transfer, direct benefit transfer, bill and utility payments, enterprise and merchant payments
It will not offer any ATM debit card. Instead, it will provide its customers a QR Code-based biometric card
issues and challenges facing the IPPB
Charges and restrictions
Striking down of certain provisions of Aadhaar by SC
Promoting IPPB as well as Maintaining balance with DoP work by staff
Limited manpower in post offices
Limited accessibility
IPPB is unable to offer ATM cards. As a result clients can’t use the united payments interface service
Competition from Private Payment Banks
Technical Issues
It’s necessary that the customer’s fingerprints match the UIDAI database for each transaction
Limited appeal
Bad health of postal department
Sustenance issue
Since IPPB cannot lend or issue credit cards, the only source of its income would be the transaction fee
advantages of establishing IPPB
objective of IPPB will be public service rather than promoting commercial interests
ability to ease access and handhold the adoption of new age banking and payments instruments through the delivery by postmen and Grameen Dak sevaks, savings agents