In 50 years, if India has launched maximum social welfare schemes, it is under Modi government. For the first time in history, the Modi government started the biggest financial inclusion plan, the Jan Dhan Yojana which linked around 33 crore people and set a world record. The financial inclusion almost removed large scale corruption by eliminating middleman in many sector with direct benefits going to people.
Now PM Modi is all set to launch long-awaited India Post Payments Bank (IPPB) that will have at least one branch in every district and focus on financial services in rural areas. This is most likely to be game changer in the country as it will provide financial services especially to the rural sector.
“The Prime Minister has given time on August 21 to launch IPPB. Two branches of the bank are already operational. Rest of the 648 branches will be launched across country in every district,” a senior official of the communications ministry said. IPPB will leverage reach of 1.55 lakh post office branches to provide banking and financial service to people in rural area.
“Government is trying to link all the 1.55 lakh post office branches with IPPB services by the end of this year,” the official said.This will create the country’s largest banking network with direct presence at village level (The Pioneer). IPPB CEO Suresh Sethi said that IPPB will go live with 650 branches in addition to 3,250 access points co-located at post offices and around 11,000 postmen both in rural and and urban area will provide doorstep banking services. The scheme is believed to link around 17 crore postal savings bank.
The main intention of launching the IPPB was to create largest banking network with direct presence at village level. Now, the schemes like MNREGA will have benefits reaching the farmers and rural people directly without involving any middleman. This will not only eliminate large scale corruption in government and bureaucracy but will also help rural people involve themselves in digital banking giving them access to technology. Direct money transfer will help providing financial services to the most remote villages which have almost scant or nil access. The government thus aims to use this scheme to distribute MNREGA and pension schemes.
The app which will be launched on August 21, will have services of around 100 firms including phone recharges and bill, electricity bill, DTH service, college fees etc (TOI Report).