The long pending approval for the India Post Payment Bank (IPPB) by the government has been issued on 1st June 2016, as announced by the Communications Minister, Ravi Shankar Prasad. It will be the largest bank in the world in terms of reach with 1.54 lakh Post Offices and 650 Payment Bank Branches, he stated.
‘A Payment Bank can hold a maximum balance of Rs. one lakh per customer, can issue ATM/Debit Cards, but not Credit Cards. It can offer payment and remittance services,deal in simple financial products like mutual fund units and insurance products but can not take lending services.’
It is to be noted here that Department of Posts were denied ‘Payment Bank’ service, while private companies were allowed to do so. This was great injustice. At least at this stage, government has been compelled to approve the application of the Department of Posts for starting Payment Bank service.