After introduction of online savings and insurance services, the postal department is going to venture into the banking sector under the name, India Post Payments Bank. Following RBI approval, the branches have already started functioning in Raipur and Ranchi. More branches will come up in other parts of the country soon. In total, 650 branches of payments bank will be set up.
Krishna Kumar Yadav, director, Postal Services-Western Rajasthan Zone, said that India Post Payments Bank is a service which will focus on banking facilities in small towns, villages and remote areas, which are deprived of banking facilities.
"It will have one branch office in every district headquarters, which will function through post offices. Rajasthan will have 33 such branches in every district headquarters," Yadav said, adding that the construction of Jodhpur branch at the main post office has already begun.
Describing the process of the bank, Director KK Yadav said that these banks will be able to take deposits only upto Rs 1 lakh and will also be able to issue ATM/debit cards to customers. Moreover, the banks will provide net banking facility for payments and transfer of money.
"But, these banks will not be able to provide any loan facility or issue credit cards," Yadav said, terming it to be a major step towards financial inclusiveness of rural areas.