Govt Expects IPPB To Be Profitable After 2 years, Launches On Sept 1

Photo Credit: DNA

SUMMARY

IPPB will have at least one branch in every district of India

The move is aimed at leveraging the reach of India Post to provide banking service to people in rural areas

We are directly recruiting 3,500 people and pushing the financial literacy programme in a big way, says Sinha

Telecommunications minister Manoj Sinha expects India Post Payments Bank (IPPB) to be profitable after two years. IPPB will start its operation with the launch 650 branches across the country on September 1 (Saturday).The government has decided to give 30% commission on earnings. Of which, 25% will go directly to postmen or Grameen Dak Sevaks (GDS), and 5% to the department of post. IPPB has already opened 4 lakh accounts, so far.“People don’t need to hold on to cash and can use a QR card. You don’t have to remember your pin number. You don’t have to remember your account number. And this will be the lowest cost account opening system because of Aadhaar. Within minutes your account will be open and transactions will happen within fractions of minutes,” Sinha said.

“This will happen because postal workers will be motivated by the commissions offered to them. This motivates workers, which is generally not the case in the government sector,” Sinha told ET in an interview.