How to make the biggest public service serve Private Corporates https: //www.cenfa.org/how-to-make-the-biggest-public-service-serve-private-corporates-learn-from-bjp-government/ The Government under Narendra Modi issued a licence for a Payment Bank instead of a Universal Bank which could give loans also.
Though it was announced that 1,55,015 post offices and 3,00,000 postmen will provide doorstep banking services, it has not been done. Now Airtel Payment Bank has 5,00,000 neighbourhood banking units and more than 155 million users. On the contrary, IPPB has 90 million users.
As no loans can be provided by a Payment Bank, IPPB has become an agent of Axis Bank, FIBE, HDFC Bank and Aditya Birla Capital Ltd for personal loans.
What is more shocking is that the IPPB has signed a strategic partnership with Aditya Birla Capital Ltd, a small NBFC. This will help the private lender to use the services of the present number of 1,64,972 post offices and lend its customers at a high rate of interest. More such are likely to come.
IPPB could have become the biggest public sector bank serving people in their 89% rural branches. Instead, it’s given on a platter to the private sector to exploit.