India Post Payments Bank (IPPB) and Reserve Bank Innovation Hub (RBIH) have teamed up to enhance the reach of financial solutions to large sections of society across India and enable frictionless finance to a billion Indians, the Ministry of Communications said in a release on Wednesday.
RBIH, a wholly-owned subsidiary of the Reserve Bank of India (RBI) promotes and facilitates innovation across the financial sector, while IPPB, under the Department of Posts, intends to build an accessible, affordable and trusted bank for the common man in India.
The collaboration between IPPB and RBIH will explore projects which will have impact on the masses by leveraging the deep rural reach of IPPB-Department of Posts (DoP) to take rural finance to a billion Indians. Besides, it will enable access to sustainable and secure finance services to every segment of the society, through research and innovation.
Additionally, IPPB will be an active participant and partner with RBIH on initiatives of national importance led by RBIH.
Rajesh Bansal, CEO, RBIH, said: “Customer centricity is at the heart of everything we do at RBIH. India’s strong digital stack offers us the unique opportunity to bring everyone into the country’s financial ambit. I am excited about the possibilities our collaboration with IPPB can open, and the impact we can create for the citizens of India, together!”
Speaking on the partnership, J Venkatramu, MD & CEO, IPPB, said: “Since its inception, IPPB has been committed towards promoting financial inclusion among low-income and under-banked segments at the last mile by leveraging the unparalleled network of Post Offices, and technology-driven banking solutions. The partnership with RBIH is a milestone in IPPB's journey to leverage its digital platform and physical network for providing comprehensive, customer-centric, and convenient digital solutions to a billion Indians”.
The Ministry of Communications said India has seen strong economic growth over the last thirty years. “In the last decade, the country has also witnessed rapid advancement and adoption of mobile technology at low data usage cost. However, there remain large sections of the population as well as micro and small businesses that have limited access to essential financial services and expertise. Universal access to finance is one of the critical requirements for society’s inclusive development.”
To this end, IPPB and RBIH will plan, design and execute innovative products and offerings to bridge the existing gap by bringing digitalised services at the customer’s doorstep, the ministry added.
