Cabinet approves India Post payments bank proposal

Zee Media Bureau

New Delhi: The Union Cabinet on Wednesday approved the Department of Posts (DoP) payments bank proposal involving a project cost of Rs 800 crore.

The Public Investment Board (PIB) has recommended that the payments bank may be set up as a public limited company under the Department of Posts with 100 percent government equity.

The Reserve Bank of India granted in-principle approval to DoP for setting up payments bank on September 7, 2015, with a stipulation to complete all formalities for setting up the bank with 18 months.

The present proposal is that the India Post Payments bank (IPPB) may set up one headquarter and up to 650 branches co-located in district headquarter post offices.

The project may be rolled out in a phased manner and the bank may complete its nation-wide rollout in five years.

With Agency Inputs