Financial Inclusion Current Affairs

DARPAN Project launched to improve financial inclusion of Rural Population

The Union Ministry of Communications has launched DARPAN (The Digital Advancement of Rural Post Office for A New India) to improve quality of service, add value to services and achieve financial inclusion of un-banked rural population.

DARPAN is Information Technology (IT) modernisation project aimed at realising financial inclusion of un-banked rural population. It offers core banking services to the account holders.

DARPAN Project

The project intends to provide low power technology solution to each branch postmaster (BPM). This will enable each of approximately 1.29 lakhs branch post offices (BOs) to improve service delivery.

It aims to increase rural reach of Department of Posts (DoP) and enable BOs to increase traffic of all financial remittances, savings accounts, Rural Postal Life Insurance and Cash Certificates. It also aims to improve mail operations processes by allowing for automated booking and delivery of accountable article.

It will also increase revenue using retail post business and provide third party applications and make disbursements for social security schemes such as MGNREGS.  The project has an outlay of Rs. 1400 crore and is targeted to complete by March, 2018.

IT modernization project

DoP has undertaken an end to end IT modernization project to equip itself with requisite modern tools and technologies. The IT modernization project intends to achieve wider reach to the Indian populace through more customer interaction channels and better customer service.

As part of it, the DoP will carry out business process reengineering across various functional areas and has created To-Be processes that will enable it to achieve these objectives. So far DoP has established 991 ATMs across country, which are interoperable with other banks and common people have been directly benefited with wide network of DoP especially in rural areas.

Month: Categories: India Current Affairs 2018

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IPPB Bank to become operational in 650 districts by April 2018

The Union Government has announced that India Post Payments Bank (IPPB) will become operational in all 650 districts of the country by April 2018 to facilitate financial inclusion.

These banks will be linked to 1.55 lakh rural post offices for its operations and carry out banking services. This will be largest banking network in the country. Two such banks are already operational in Ranchi (Jharkhand) and Raipur (Chhattisgarh).

India Post Payments Bank (IPPB)

IPPB has been set up as a Public Limited Company under Department of Posts with 100% Government of India (GOI) equity. It leverages DoP’s network, resources and reach to make low-cost, quality and simple financial services easily accessible to customers in the country.

Its purpose is to further cause of financial inclusion by providing basic banking, remittance services and payments services to customers. It will facilitate spread of financial services like insurance, pensions, mutual funds to customers especially from rural areas and the unbanked and under-banked segments.

It will also generate opportunities for propagating financial literacy across the country by using state of the art banking and payments technology. It will also generate new employment opportunities for skilled banking professionals. It will encourage citizens to move towards a cashless economy.

Payments banks

Payments banks are new model of banks conceptualised by Reserve Bank of India (RBI) to meet government’s financial inclusion target. They are being set up as differentiated bank and its activities are confined to acceptance of demand deposits, remittance services, internet banking and other specified services but not lending services.

This differentiated banking model allows mobile firms, supermarket chains and others to cater to banking requirements of individuals and small businesses.

Payments banks can accept deposits up to Rs. 1 lakh per account from individuals and small businesses. They can issue ATM/debit cards but not credit cards. They can also issue other prepaid payment instruments. They can also distribute non-risk sharing simple financial products like mutual funds and insurance products.

Month: Categories: Banking Current Affairs 2018

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