Home banking now available in every village: India Post

More than 1 lakh post offices in rural areas have been authorized to provide banking services, increasing banking infrastructure in these areas by almost 2.5 times

Bombay, July 24

The distance to access banking services is now ‘0 km’. Home banking will now be available in every village, with around 1.90 lakh Postmen and Gramin Dak Sevaks (GDS) trained to serve as “mobile bankers” in addition to postal service providers, according to the latest India Post annual report. .

These “mobile bankers” would provide home banking services to India Post Payments Bank (IPPB) customers as well as other banks, according to the report.

According to the department, out of more than 1.36 lakh post offices that have been licensed to provide banking services, 1.10 lakh are in rural India, boosting banking infrastructure in these areas by almost 2.5 times. regions.

He estimates that with post offices providing banking services, the “average distance to a rural bank service point” has been reduced to 2.5 km (average distance to a post office) from 5- 6 km (rural bank branch infrastructure).

“With the launch of the Aadhaar Enabled Payment System (AePS) service in August 2019, the IPPB is one of the largest platforms to provide interoperable home banking services to any banking customer,” the report said.

At the end of December 2021, the IPPB had 4.93 crore customers, with 98% of accounts opened at the customer doorstep. Ninety percent of its customers come from rural areas.

Among the services offered by the IPPB are savings/current accounts, money transfer, virtual debit cards, bill payments, Aadhaar Pay service for merchants and life and general insurance.

Cash withdrawal to any account (AePS), cash deposit to any account (direct money transfer) and cash payment of bills, insurance premiums and EMI loans are some of the services offered by IPPB to customers of other banks.

IPPB was established by the government as a limited company under India Post in 2016 to improve the access of the common man to basic financial services, especially in unbanked and underbanked areas.

Published on

July 25, 2022

Michael J. Birnbaum