India Post Payments Bank (IPPB) is an ambitious idea ridden with huge challenges. Analyse (200 words)
Refer – The Hindu
Enrich the answers from other sources, if the question demands.
IAS Parliament 6 years
KEY POINTS
Significance of IPPB
· The primary rationale is to help in the goal of achieving financial inclusion.
· It can offer savings, remittance, and payments services to the rural and unorganised sectors.
· IPPB's digital services are expected to make financial services more accessible even from remote locations.
· There is also a hope that the payments bank idea will help reinvigorate the postal system.
Challenges
· A key challenge is if it can manage to earn the profits required to survive as a standalone business entity.
· Dependence on Aadhaar – From opening an account to withdrawing cash to making a deposit, it’s necessary that the customer’s fingerprints match the UIDAI database for each transaction.
· In the absence of matching fingerprints, users are likely to be locked out of their accounts.
· The problem is that the UIDAI told the Supreme Court that it can’t ensure 100 per cent biometric matching.
· Connectivity – Lack of connectivity in remote parts is a major challenge for IPPB to be a success.
· Training – Postmen lack skills to provide such new services and need to be trained.
· Stiff competition from private companies.
Tapasvi 6 years
Kindly review
IAS Parliament 6 years
Rework on the second part of the answer. Try to discuss challenges like its dependence on Aadhaar, revenue generating capability, digital connectivity, lack of trained postmen, etc. Keep writing.
Manav 6 years
Kindly review it. Thanks.
IAS Parliament 6 years
A Good answer. Keep writing.
Sahitya 6 years
Please review
IAS Parliament 6 years
IPPB is currently not offering its customers an ATM or debit card. Add more valid points in the challenges part. Conclusion part could have been better. Keep writing.
