According to a release from the Ministry of Communications on Wednesday, the Reserve Bank Innovation Hub (RBIH) and India Post Payments Bank (IPPB) have joined forces to expand the reach of financial solutions to significant portions of society throughout India and provide frictionless financing to a billion Indians.
While IPPB, a division of the Department of Posts, aims to create an easily accessible, reasonably priced, and reliable bank for the Indian average person, RBIH, a wholly-owned subsidiary of the Reserve Bank of India (RBI), encourages and enables innovation across the financial sector.
By utilizing the extensive rural reach of the IPPB-Department of Posts (DoP), the collaboration between RBIH and IPPB will examine projects that will have an impact on the general public and provide rural finance to a billion Indians. Additionally, research and innovation will give every sector of society access to sustainable and safe financial services.
IPPB will also participate and partner with RBIH in initiatives of national significance.
“Customer centricity is at the heart of everything we do at RBIH. India’s strong digital stack offers us the unique opportunity to bring everyone into the country’s financial ambit. I am excited about the possibilities our collaboration with IPPB can open, and the impact we can create for the citizens of India, together!” said Rajesh Bansal, CEO, RBIH.
“Since its inception, IPPB has been committed to promoting financial inclusion among low-income and under-banked segments at the last mile by leveraging the unparalleled network of Post Offices, and technology-driven banking solutions. The partnership with RBIH is a milestone in IPPB’s journey to leverage its digital platform and physical network for providing comprehensive, customer-centric, and convenient digital solutions to a billion Indians,” said J Venkatramu, MD & CEO, IPPB.
“In the last decade, the country has also witnessed rapid advancement and adoption of mobile technology at low data usage cost. However, there remain large sections of the population as well as micro and small businesses that have limited access to essential financial services and expertise. Universal access to finance is one of the critical requirements for society’s inclusive development.” Indian economic growth has been strong over the past thirty years, according to the Ministry of Communications.
In order to accomplish this, the ministry noted, IPPB and RBIH will develop, design, and carry out innovative goods and offerings to close the current gap by bringing digitalized services to the customer’s door.