The Cabinet on Wednesday approved an increase of 79.3% in the project outlay for setting up the India Post Payments Bank to ₹1,435 crore. The move comes three days ahead of the nationwide roll-out of the payment bank by Prime Minister Narendra Modi. The additional sum of ₹635 crore in the revised cost estimates is on account of ₹400 crore for technology costs and ₹235 crore for human resource expenses, an official release said.
“This launch will more than double the number of bank branches in the country – from the present 1.40 lakh to more than 2.90 lakh. Similarly, the number of rural branches in the country will increase from the current 49,000 to more than 1.75 lakh,” Minister of State for Communications Manoj Sinha said after the Cabinet briefing.
Beginning September 1, onwards, IPPB services — aimed at senior citizens, urban migrants, farmers and small businesses — will be available at 650 IPPB branches and 3,250 access points across the country. These services will be extended to all 1.55 lakh post offices by December 2018.
The project will generate new employment opportunity for about 3,500 skilled banking professionals and other entities engaged in propagating financial literacy across the country.
