FINCLUVATION
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Context - The India Post Payments Bank has launched ‘Fincluvation’ to promote financial Inclusion.
Fincluvation
- Fincluvation is a joint initiative to collaborate with the Fintech Start-ups to develop innovative solutions for financial inclusion.
- The initiative was announced by the India Post Payments Bank (IPPB) on the occasion of the 75th anniversary of Indian Independence and the ongoing Azadi ka Amrit Mahotsav.
- The main objective of the ‘Fincluvation’ initiative is to create a powerful platform to mobilize start-ups toward building significant financial products to promote financial inclusion.
- Under the new initiative, Start-ups will be encouraged to develop solutions related to;
- Creditization: Develop Innovative and Inclusive credit products to target customers' needs and take them to their doorsteps through the Postal network.
- Digitization: Take steps to bring comfort to customers through the convergence of traditional services with Digital Payment Technologies such as making the traditional Money Order service an Interoperable Banking service.
- Any Market-led solutions that can promote ease of transaction and ease of living for customers.
- The intersection of technology with financial services will open a new set of business opportunities.
- Fincluvation will help to create a platform that can provide an opportunity for start-ups to work together with the Government.
- It will also help them in understanding the needs of the underserved customers and innovate products or services according to their needs.
- Fincluvation will help to create and deliver people-centric products or services that will promote a positive impact on their lives in a cost-effective manner.
India Post Payments Bank
- India Post Payments Bank is a 100% central government-owned entity under the Department of Posts (DoP), a department under the Ministry of Communications.
- Background:
- In 2015, the India Post received the licence from the Reserve Bank of India to operate a payments bank.
- In 2016, the India Post was registered as a public limited government company for setting up a payments bank.
- In 2018, the Union Government approved a fund of ₹1,435 crores for setting up the India Post Payment Bank.
- The Payment bank was started with the vision to build the most accessible, affordable and trusted bank for the common man in India.
- The main objective is to promote financial inclusion in a simple and secure manner at the customers' doorstep.
- It aims to utilize nearly 1,60,000 post offices as access points and 3 lakh postmen and Grameen Dak Sewaks to provide doorstep banking services.
- It delivers simple and affordable banking solutions through innovative interfaces available in 13 languages.
- Services offered by the Bank:
- It offers savings accounts, money transfers and insurances through the 3d parties, bill and utility payments.
- The Bank offers savings and current accounts up to a balance of ₹2 Lakh.
- Customers can use QR code payments eliminating the need to remember account numbers, PINs and Passwords.
- Unified Payments Interface (UPI)
- Immediate Payment Service
- National Electronic Funds Transfer
- Real-time gross settlement
- Bharat BillPay
- Direct Benefit Transfer
- RuPay Debit Card
- AEPS (Adhaar Enabled Payment Service)
- According to the data released in January 2022, the India Post Payment Bank had crossed the landmark of 5 crore customers.
Financial Inclusion
- It means the availability and equality of opportunities to access financial services.
- It refers to a process by which individuals and businesses can access affordable financial Products and Services. These include Banking, loan, Insurance Products, etc.
- Providing access to banking, investment, Pension, Insurance and Credit (loan) facilities to each Citizen.
- Benefits
- Promote Economic Growth and Poverty alleviation.
- Ensures Social, Economic and Transaction Security.
- Improves Social Harmony.
- Women Empowerment.
- Steps Taken to Promote Financial Inclusion;
- Nationalization of Banks
- Lead Bank Scheme
- Regional Rural Bank (RRB)
- RBI rules for Commercial banks to set up at least 25% of their branches in unbanked rural areas.
- RBI Permitted Banking Business Correspondent Agents.
- Jan-Dhan Yojana
- Small Finance Banks and Payment Banks.
- India Post Payment Bank
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1818635