Why in the News?

The Minister of State for Communications has provided crucial information about the India Post Payments Bank (IPPB).

About India Post Payments Bank (IPPB):

	Details
What is it?	Division of India Post under the Ministry of Communications, launched in 2018. Operates as payments bank.
Vision and Principles	• Objective: Promote financial inclusion by providing accessible and affordable financial services. • Customer-Centric: Focuses on delivering secure and affordable banking to rural and underserved areas.
Empowerment Initiatives by IPPB	• Financial Inclusion: Offers savings accounts, current accounts, money transfers, bill payments, and insurance. • Aadhaar-Linked Services: Implements Aadhaar-enabled Payment System (AePS) for easy and secure transactions. • Doorstep Banking: Provides banking services through 3 lakh postmen and Grameen Dak Sewaks. • Rapid Expansion: Reached 4 crore customers by December 2020 and crossed 8 crore customers by January 2022, with over 9 crore customers as of March 2024.

A payments bank operates like a regular bank but without credit risk.
It was set up based on the recommendations of the Nachiket Mor Committee.
Objective: To promote financial inclusion, especially in unbanked areas, serving migrant workers, low-income households, and small entrepreneurs.
Payments banks are registered as public limited companies under the Companies Act, 2013, and licensed under the Banking Regulation Act, 1949.
Governed by the Banking Regulation Act, RBI Act, 1934, and the Foreign Exchange Management Act, 1999.
Services Offered:

- - Minimum paid-up equity capital is Rs. 100 crores.
  - Can accept deposits up to Rs. 2,00,000 in savings and current accounts.
  - 75% of deposits must be invested in government securities (SLR), with the remaining 25% placed as time deposits with other scheduled commercial banks.
  - Offers remittance services, mobile payments, ATM/debit cards, net banking, and third-party fund transfers.
  - Act as a banking correspondent (BC) for credit and other services.
Limitations:

- Cannot issue loans or credit cards.
- Cannot accept time deposits or NRI deposits.
- Cannot set up subsidiaries for non-banking financial activities.

[2018] Which one of the following links all the ATMs in India?

(a) Indian banks’ Association

(b) National Securities Depository Limited

(d) Reserve Bank of India