Topic- Inclusive growth and issues arising from it.
7) India Post Payments Bank (IPPB) is a historic decision towards achieving the goal of financial inclusion. Discuss.(250 words)
Why this question
India recently launched IPPB, which is a historic step towards financial inclusion, due to the sheer extent of its penetration and potential. It is important to discuss in detail the benefits and advantages offered by the system and know its working.
Discuss- This is an all-encompassing directive which mandates us to write in detail about the key demand of the question. We also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.
Key demand of the question.
The question wants us to write in detail about IPPB- what it means, how it is a significant step towards financial inclusion.
Structure of the answer
Introduction– write a few introductory lines about IPPB- e.g IPPB is a public sector company under the Department of Posts and the Ministry of Communication with a 100 percent equity of the Government of India, and governed by the Reserve Bank of India.
Write about the IPPB further in detail. E.g
IPPB will focus on providing banking and financial services to people in rural areas, by linking all the 1.55 lakh post office branches (that’s nearly 2.5 times the bank network) with IPPB services by the end of 2018; Postmen in rural and urban areas will provide doorstep banking services. This will create the country’s largest banking network with a direct presence at the village level; it will enable money transfer, transfer of government benefits, bill payments and other services such as investment and insurance etc.
Conclusion– mention how IPPB complements Jan Dhan Yojana and how Aadhaar can be leveraged to faster and more reliable transactions, verifications etc.