Why In News?

• Recently, India Post Payments Bank has reported an operating profit of Rs 20.16 crore and a growth of 66.12 percent in total revenue during the financial year 2022-23.

Static

• It was launched on September 1, 2018, with 100% equity owned by the Government of India.
• India Post Payments Bank embarked on a transformational journey with the launch of initial branches.
• Its initial branches were opened in Ranchi, Jharkhand and Raipur, Chhattisgarh.
• India's vast postal infrastructure with 1,55,000 post offices and 3,00,000 postal employees plays an important role in this.
• Its objective is to ensure the availability of accessible, affordable and reliable banks to all citizens.
• India Post Payments Bank is committed to serve the under-banked and under-banked.
• This has contributed to the vision of a less-cash economy and Digital India.
• Equal opportunities have been ensured for financial security and empowerment.
• Payments banks were part of the Reserve Bank of India's strategy to provide differentiated banking licences.
• A committee headed by Dr. Nachiket Mor recommended setting up of a 'payments bank' to meet the needs of low income groups and small businesses.
• It can only accept demand deposits in savings and current accounts, not fixed deposits.
• Each customer can maintain a maximum balance of Rs.2,00,000 in the Payments Bank account.
• Payments Banks cannot accept NRI deposits.