On September 1st, Prime Minister, Narendra Modi launched the first scheme which will look into the cases of the defaulters and has also ensured that the government would ‘speediy’ look into the cases of the defaulters. The India Post Payment Bank (IPPB) aims ‘to bridge the last mile gap in banking services’. The idea of the IIPB is rooted in the concept where the bank extends the opportunities of any other banking facility except the only difference is that it caters to a smaller scale and doesn’t provide the provision of taking credit and issue credit cards.
“For the launch, more than 800,000 man hours have gone into training 15,000 people, out of which 11,000 will be providing banking services at the doorstep. By the end of the year, all 300,000 people will be up and running,” said the IPPB Managing Director.
Talking about the Jan Dhan Yojana, Modi said his government schemes had made people reach banks through the scheme, but they are now making banks reach citizens’ homes this scheme. Exerting that government is working to ‘reform, perform and transform old facilities’. While launching the programme, the prime minister said that bank and banking services will now be available at every doorstep and that 1st September will be remembered for the launch of the post payments bank, which is created to “benefit common citizens”.
On Wednesday, the government decided to raise the outlay for banks by about 80% to Rs 1,435 from Rs 800 crore. The increase is meant to cover costs of ‘technology and manpower’, according to a government statement. In this establishment, the centre also took a jab at the Congress government stating that the previous government’s efforts had led to bad loans which in turn drowned the banking sector and claimed that his government will ‘recover’ every penny given to the people who took credit.