{"id":4736,"date":"2023-03-15T07:19:08","date_gmt":"2023-03-15T01:49:08","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=4736"},"modified":"2025-03-27T02:07:23","modified_gmt":"2025-03-26T20:37:23","slug":"indian-post-payments-bank-ippb","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/indian-post-payments-bank-ippb\/","title":{"rendered":"Indian Post Payments Bank (IPPB)"},"content":{"rendered":"<h2><strong>About Indian Post Payments Bank (IPPB):<\/strong><\/h2>\n<ul>\n<li>IPPB has been <strong>established under the Department of Posts<\/strong>, Ministry of Communication, with <strong>100% equity owned by the Government of India<\/strong>.<\/li>\n<li>IPPB was <strong>launched on<\/strong> September 1, <strong>2018<\/strong>.<\/li>\n<li><strong>Vision<\/strong>: To build the most <strong>accessible, affordable, and trusted bank for the common man<\/strong> in India.\u00a0<\/li>\n<li><strong>Mandate<\/strong>: To <strong>remove barriers for the unbanked and under-banked<\/strong> and reach the last mile <strong>leveraging<\/strong> a network comprising <strong>160,000 post offices<\/strong> (145,000 in rural areas) and <strong>400,000 postal employees.<\/strong><\/li>\n<li><strong>Headquarters: New Delhi<\/strong><\/li>\n<li><strong>Functions<\/strong>:\n<ul>\n<li>It will <strong>accept deposits upto Rs 2 lakh,<\/strong> <strong>beyond which<\/strong> the account will be automatically <strong>converted into a post office savings account<\/strong>.<\/li>\n<li>The products and services of the bank will be made available through various mediums such as <strong>counter services, micro ATMs, mobile banking apps<\/strong>, messages, and interactive voice response.<\/li>\n<li>The IPPB will <strong>use Aadhaar to open accounts,<\/strong> and a <strong>QR card and biometrics<\/strong> will be used <strong>for authentication<\/strong>, transactions, and payments.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3>What are\u201cPayments Banks\u2019?<\/h3>\n<ul>\n<li>A payments bank is like any other bank but <strong>operates on a smaller scale<\/strong> <strong>without<\/strong> involving <strong>any credit risk.\u00a0<\/strong><\/li>\n<li>It was set up on the <strong>recommendations of the Nachiket Mor Committee<\/strong>.<\/li>\n<li><strong>Objective<\/strong>: <strong>Widen the spread of payment<\/strong> <strong>and financial services to small businesses<\/strong>, <strong>low-income households,<\/strong> and migrant labor workforce in a secured technology-driven environment.<\/li>\n<li>They are <strong>registered under the Companies Act 2013<\/strong> but are <strong>governed<\/strong> by a host of legislations such as the <strong>Banking Regulation Act<\/strong>, 1949; <strong>RBI A<\/strong>ct, 1934; <strong>Foreign Exchange Management Act<\/strong>, 1999, etc.<\/li>\n<li>It needs to have a <strong>minimum paid-up capital of Rs. 100,00,00,000.<\/strong><\/li>\n<li>Activities that can be performed:\n<ul>\n<li>It can take <strong>deposits up to Rs. 2,00,000<\/strong>. It can <strong>accept demand deposits<\/strong> in the form of <strong>savings and current accounts<\/strong>.<\/li>\n<li>The <strong>money received<\/strong> as deposits <strong>can be invested<\/strong> in secure government securities <strong>only in the form of Statutory Liquidity Ratio (SLR).<\/strong> This must amount to <strong>75% of the demand deposit balance<\/strong>.<\/li>\n<li>The <strong>remaining 25% is to be placed as time deposits<\/strong> with other scheduled commercial banks.<\/li>\n<li>It can offer <strong>remittance services<\/strong>, <strong>mobile payments<\/strong>\/transfers\/purchases, and other banking services like <strong>ATM\/debit cards<\/strong>, <strong>net banking,<\/strong> and third party fund transfers.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Activities that can be performed:<\/strong>\n<ul>\n<li>It <strong>cannot issue loans <\/strong>and <strong>credit cards.<\/strong><\/li>\n<li>It <strong>cannot accept time deposits<\/strong> or <strong>NRI deposits<\/strong>.<\/li>\n<li>It <strong>cannot set up subsidiaries<\/strong> to undertake non-banking financial activities.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1)\u00a0What is a Universal Bank?<\/h3>\n<p>A universal bank is a bank that combines the three main services of banking under one roof. The three services are wholesale banking, retail banking, and investment banking. In other words, it is a retail bank, a wholesale bank, and also an investment bank. As well as being able to offer an all-encompassing service, universal banks can reap the synergies that exist when they operate in the three services simultaneously.<\/p>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/economictimes.indiatimes.com\/industry\/banking\/finance\/banking\/india-post-payment-bank-wants-to-convert-itself-to-universal-bank-ceo\/articleshow\/98630770.cms\" target=\"_blank\" rel=\"nofollow noopener\"><u>India Post Payment Bank wants to convert itself to universal bank: CEO<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>IPPB has been established under the Department of Posts with 100% equity owned by the GoI.<\/p>\n","protected":false},"author":5,"featured_media":4737,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-4736","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/4736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=4736"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/4736\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/4737"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=4736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=4736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=4736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}