FINCLUVATION

Copyright infringement not intended

 

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