The Cabinet on Wednesday decided to raise the government’s equity infusion into India Post Payments Bank to Rs 2,255 crore from Rs 1,435 crore to meet regulatory requirements. 

It also granted an in-principle approval for fund infusion up to Rs 500 crore in future to comply with regulatory needs and technological upgrade.

“The objective of the project is to build the most accessible, affordable and trusted bank for the common man; spearhead the financial inclusion agenda by removing the barriers for the unbanked and reduce the opportunity cost for the under-banked populace through assisted doorstep banking,” according to an official statement after the Cabinet meeting.

India Post Payments Bank was launched on September 1, 2018, with 650 branches and controlling offices. It has enabled 1.36 lakh post offices to provide banking services and has equipped nearly 1.89 lakh postmen and postal assistants with smartphone and biometric device to provide doorstep banking services.

Since its inception, the payments bank has opened more than 52.5 million accounts and recorded 820 million financial transactions involving a total amount of Rs 1.618 trillion. These include 76.5 million AePS transactions worth Rs 21,343 crore.

As many as 77% of the 50 million accounts are opened in rural areas; 48% are women customers having Rs 1,000 crore in deposits. Nearly four million women customers received direct benefit transfer of Rs 2,500 crore into their accounts.