Financial Inclusion Current Affairs
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The Reserve Bank of India (RBI) has constituted a high-level committee under Nandan Nilekani to suggest measures to strengthen the safety and security of digital payments in the country.
Members of the Committee
Nandan Nilekani will be the head of the committee which comprises of former RBI deputy governor H.R. Khan, former MD and CEO of Vijaya Bank Kishore Sansi, former secretary in ministries of IT and steel Aruna Sharma and chief innovation officer, Centre for Innovation, Incubation & Entrepreneurship (CIIE), IIM Ahmedabad, Sanjay Jain.
Terms of the Reference
RBI has provided the following terms of reference for the committee:
- To encourage digitisation of payments and enhance financial inclusion through digitization.
- Reviewing the existing status of digitisation of payments in the country, identifying the current gaps in the ecosystem and suggesting ways to bridge them.
- Assessing the current levels of digital payments in financial inclusion.
- Suggest measures to strengthen the safety and security of digital payments.
- Suggest a road map for increasing customer confidence and trust while accessing financial services through digital modes.
- Undertake cross-country analysis to identify best practices to accelerate digitisation of the economy and financial inclusion through greater use of digital payments.
- Suggest a medium-term strategy for deepening of digital payments.
RBI has asked the committee to submit its report within a period of 90 days from the date of its first meeting.
State-owned India Post Payments Bank (IPPB) and private life insurer Bajaj Allianz Life Insurance Co Ltd (BALIC) have entered into strategic partnership to provide life insurance solutions. It will allow IPPB customers across segments to access wide array of life insurance products and services especially at doorstep. BALIC is the first life insurer to partner with IPPB. This partnership will allow BALIC to leverage IPPB’s last mile reach for building awareness about life insurance.
India Post Payments Bank (IPPB)
IPPB has been set up as Public Limited Company under Department of Posts (DoP) with 100% Government of India (GOI) equity. It was launched on September 1, 2018 in New Delhi. It has begun operations with 650 branches and 3,250 access points across the country. It leverages DoP’s network, resources and reach to make low-cost, quality and simple financial services easily accessible to customers in the country.
It offers basic banking services acceptance of demand deposits, remittance services, internet banking and other specified services. It does not lending services. It can accept deposits up to Rs. 1 lakh per account from individuals and small businesses. It can issue ATM/debit cards but not credit cards. It can also issue other prepaid payment instruments. It can also distribute non-risk sharing simple financial products like mutual funds and insurance products.