India Post Payments Bank (IPPB) has launched an application called “DakPay” as a part of its ongoing initiative that aims at providing digital financial inclusion to the nation.
About India Post Payments Bank
- On September 1, 2018, the PM Narendra Modi, launched the India Post Payments Bank (IPPB), which operates under the Indian postal department.
- IPPB is incorporated as a public sector company, governed by the Reserve Bank of India (RBI), under the Department of Posts with 100% government equity.
- IPPB after its launch was operational with 650 branches and 3500+ touchpoints.
- The main objective of IPPB is to help the country in achieving financial inclusion through offering savings, payment services and remittance to economy’s unorganized sectors.
- IPPB was launched with an idea to help Indian Postal System rejuvenate.
DakPay Launched By
The “DakPay” application has been launched by Sri Ravi Shankar Prasad, Union Minister for Communications, Law & Justice and Electronics and Information Technology .
DakPay – Key Facts
- The DakPay application offers online services to postal products and banking.
- The customers of department of post and India post payments bank through the mobile application “DakPay” can digitally operate their banking services.
- The application also enables customers to order and avail postal financial services at the comfort of their home.
- Using DakPay customers can also send money by using domestic money transfers, also by scanning the QR code they can make payments to merchants.
- The mobile app also enables cashless ecosystem with the help of biometrics.
- The application also offers interoperable banking services to the customers of any banks and utility bill payment services.
- The DakPay application is only available on Google Play Store.
Challenges Faced by IPPB – How DakPay Helps?
There are many challenges faced by IPPB, let’s take a look at them and how DayPak will help resolve these challenges.
- The RBI rules states that the payment banks need to invest a minimum of 75 percent of the total demand deposits in government link securities. This target set by RBI is hard to meet by IPPB.
- A high service fee charges by IPPB on every transaction, which varies between Rs. 15-35, make users take a step back in using IPPB services.
- The IPPB has a very big network in terms of manpower and it also faces a tough competition from private players like Airtel, payments bank, Fino etc.
- The remotest rural areas of the country lacking in infrastructure, internet connectivity and electricity are other major challenges for the survival of India Post Payments Bank.
- At present the Indian Post is running under revenue deficit. In the year 2015-16 the revenue deficit was 6000 crores rupees. In the year 2016- 17 Indian Post faced revenue deficit of 11,969 crores rupees. The revenue deficit has increased double over the years.
The electricity and infrastructure problems faced by the IPPB will be resolved by the mobile app “DakPay. The app will increase the transactions and digital usage of the bank, thus increasing its revenue.
The features of the IPPB app “DakPay” showcase it as an promising initiative towards financial inclusion. DakPay will contribute towards the cashless economy. What do you this about this app?