The Postal Department said it has decided to convert the India Post Payments Bank (IPPB) into a small finance bank (SFB), enabling it to offer small loans to customers. 

Besides, the department also looks to open one crore accounts for IPPB in 100 days. 

A statement of the Postal Department said that the decisions were taken at the annual Heads of Circles Conference held at Srinagar. 

The decision included “Converting the India Post Payments Bank (IPPB) into a Small Finance Bank (SFB) to provide micro-credit at the doorsteps to individuals and SME’s. Targeting the milestone of one crore accounts for IPPB in 100 days” among several other steps.

India Post will partner with Common Service Centre to provide a suite of citizen centric services such as banking, remittance, insurance, DBT, bill and tax payments etc. at post offices, the statement said. 

The postal department has decided to develop infrastructure to extend the reach of the e-commerce industry to tier 2 and 3 towns as well as to rural areas by investing in 190 parcel hubs, 80 Nodal Delivery Centers and a Pan India Road Transport Network.