India Post has received payments bank licence from the Reserve Bank of India to start roll-out of banking operations commercially under the permit.
AP Singh has been appointed as interim MD and CEO of the India Post Payment Bank. He was Joint Secretary in the Department of Disinvestment and one of the member of founding team that launched Aadhaar.
So what is India Post Payments bank?
What services will India Posts Payments bank provide?
What can't it do?
India Post Payments Bank is the third entity to receive payments bank permit after Bharti Airtel and Paytm. In 2015, RBI had granted ‘in-principle’ approval to 11 entities, including Department of Posts, to set up payments banks and proposed to give such licences ‘on tap’ basis in future.
Out of eight companies in fray - Airtel has launched its commercial operation across India with an investment of Rs 3,000 crore offering interest rate of 7.25 per cent on deposits, free money transfer from Airtel to Airtel numbers within Airtel Bank, money transfer to any bank account in the country.
Paytm, promoted by Vijay Shekhar Sharma and backed by Chinese e-commerce major Alibaba, plans to roll out payments bank within initial investment of about Rs 400 crore.
Others are — Aditya Birla Nuvo, Fino PayTech, National Securities Depository, Reliance Industries Ltd nd Vodafone m-pesa.
(With inputs from PTI)
(Feature image source: PTI)