ROLE OF INDIAN POSTAL SERVICE SECTOR IN FINANCIAL INCLUSION WITH SPECIAL CONSIDERATION TO INDIA POST PAYMENTS BANK (IPPB)

Abstract

Financial Inclusion is the process of ensuring access to appropriate financial products and services needed by vulnerable groups such as weaker sections and low income groups at an affordable cost in a fair and transparent manner by mainstream institutional players. It plays a major role in inclusive growth of the country. During post liberalization period the banking sector has grown enormously keeping pace with the country’s remarkable economic growth. Indian post offices, at the same time, are providing banking services to the Indian masses since 1882. Indian postal sector which provides easy financial services to the people throughout the country also served as banker to the Indian rural masses much before financial inclusion became a buzzword. In order to further the cause of financial inclusion by providing basic banking, remittance services and payments services to customers, India Post Payments Bank (IPPB) has been incorporated as a public sector company under the Department of Post with 100% Government of India equity. IPPB is expected to provide designated financial services at low cost to target population. This paper aims to study the role of Indian post offices in financial inclusion. Further an attempt has also been made to examine the future prospects of India Post Payments Bank.