Reply To: Critically Analyse the Introduction of India Post Payment Bank.


Prime Minister Narendra Modi launched IPPB that offers doorstep banking customers,mainly in rural areas. This analyses the banking model and how it seeks to ensure greater financial inclusion.

IPPB offers a range of products- saving and current accounts,money transfer, direct benefit transfer,bill and utility payments,enterprise and merchant payments. The payment bank will also provide access to third-party financial services such as insurance,mutual funds,pension,credit products and forex.
IPPB is a differentiated bank,offering a limited range of products. Unlike like traditional banks it cannot issue loans and credit cards. IPPB offers three types of saving accounts- regular,digital and basic.
IPPB work in tandem to take benefits of government schemes and financial services that are not easily available in rural areas and to the marginalized population in urban and rural areas alike. The objective of IPPB is rather public service rather than commercial interests.
Given the lack of clarity,successful will be those that allow for changing responsibilities as the market matures. While IPPB may inherently enjoy good faith of customers,other banks will have to go a long way to win trust of these customers.