Record of Discussion for the meeting held on 4.2.2020 under the chairmanship
of the Principal Advisor to the Prime Minister regarding performance of the
India Post Payment Bank:
A meeting was held on 4.2.2020 under the chairmanship of Principal Advisor to the Prime Minister regarding performance of the India Post Payment Bank (IPPB). A list of participants is at Annexure.
Secretary, Post and DDG, Postbank made a presentation on the implementation status of IPPB. The presentation covered achievements so far and the challenges being faced by it especially due to reduction in revenue due to various regulatory and Government interventions and possible options for attainment of viability.
After detailed deliberations, following decisions were taken:
1. RBI to consider raising Rs 1 lakh deposit limit to Rs 5 lakhs for Post Payment
Bank as insurance cover now available to bank customers. (Action : RBI)
2. The regulatory constraints creating viability challenges for the Payment Bank
industry may be examined for possible solutions. (Action: RBI)
3. Department of Post and IPPB to re-evaluate the recruitment policy of IPPB so as to minimize outlay on HR functions and immediately stop fresh recruitment. IPPB should also consider relying mostly on the deputation from D/o Post as a large part of IPPB operations is through the Department of Posts.
IPPB to also consider a more outsourced model for its field level functions. The possibility of absorbing excess staff in the IPPB to Public Sector Banks may be explored.
(Action: IPPB, D/o Post and DFS)
4. IPPB to put in place fresh revenue models based on its wide geographic reach
and access to customers at doorstep. These may include the addition of value added non-financial services for customers.
(Action; D/o Post and IPPB)
5. IPPB can become Business Correspondent for Public Sector Banks. DFS may
consider and facilitate this. (Action: IPPB and DFS)
6. IPPB to explore partnerships with e-commerce and logistics companies as well as cooperatives and NBFCs for acquiring merchants and providing digital financial services through IPPB mobile app, UPI and the IPPB debit card.
(Action: IPPB)
7. IPPB to put in place an increased portfolio of third-party financial products
from both private sector and government sector including insurance products and simplified credit products.
(Action: IPPB)
8. Consider possibility of making IPPB the preferred bank for DBT and other
government business
(Action : Cabinet Secretariat, D/o Post and DFS)
9. A committee headed by Secretary (Expenditure) may go into the possible
policy solutions for making IPPB viable Secretary, D/o Post and DFs may be
associated with this committee, which may give its recommendations in a months time (Action : D/o Post)
10 D/o Post shall explore possibility of transferring the financial services of Post Offices to IPPB so that Post Offices can focus only on its core functions and can also venture into new avenues to leverage its strength of last mile connectivity / doorstop delivery
(Action : D/o Post)
The meeting ended with a vote of thanks to the chair.
See
Annexure
List of Participants
1. Shri PK Bisoi, Secretary, Posts
2. Dr TV Somanathan, Secretary Expenditure
3. Shri Debasish Panda, Special Secretary, Department of Financial Services
4. Smt Manisha Sinha, DDG, Postbank of India
5. Shri Shrimohan Yadav, CGM, RBI
From PMO:
1 Shri Tarun Bajaj, Additional Secretary
2. Dr Hardik Shah, Deputy Secretary
