All 1.55 lakh post offices to offer payments bank service

India Post Payments Bank is gearing up to provide its financial services through all of 1.55 lakh post offices and 3 lakh employees by the end of 2018 -- which will create India's second-largest payments bank in terms of reach. 

India Post Payments Bank (IPPB) Chief Executive Officer AP Singh said this at an event organised by United Nations on Financial Inclusion in New Delhi yesterday. He said that India Post will have bank footprint in every district by March



2018.

Payments banks can accept deposits of up to one lakh rupees per account from individuals and small businesses.The new model of banking allows mobile firms, supermarket chains and others to cater to banking requirements of individuals and small businesses. 

Mr Singh said that they will use Aadhaar as payment address of an individual, indicating that the postal bank may bring the transaction charge close to one paisa.