The government on Monday launched the India Post Payments Bank (IPPB), a basic financial services facility, as a pilot in Raipur and Ranchi with plans to scale it up to 650 branches by the end of September.
Payments banks accept limited deposits and offer payment services but do not offer loans, unlike commercial banks.
IPPB is the second payments bank to start operations after Airtel Payments Bank, which launched on 12 January. IPPB received a licence from the Reserve Bank of India (RBI) on 20 January. A third entity, Paytm, has also been given a payments bank licence by RBI, and is expected to launch soon.
