India Post Payments Bank launch deferred due to Vajpayee's demise

New Delhi: The launch of India Post Payments Bank (IPPB) is being rescheduled in the wake of seven-day national mourning to pay homage to former Prime Minister Atal Bihari Vajpayee, an official source said.

Prime Minister Narendra Modi was to launch IPPB on August 21.

"Launch of IPPB is being rescheduled due to national mourning to pay homage to Atal ji. New date will be announced soon," the source told PTI.

Vajpayee, the first non-congress prime minister who completed a full five-year term, died at AIIMS here yesterday at the age of 93, following a prolonged illness.

The government plans to launch 650 branches of IPPB across the country.

All 1.55 lakh post office branches will be linked to IPPB by end of this year to create largest banking network in the country with wide rural footprint.

There are 1.3 lakh post offices in rural areas that have reached to neighbouring villages. With these rural post office branches, IPPB services will be made available across all villages in the country.

Payments banks can accept deposits up to Rs 1 lakh per account from individuals and small businesses, and facilitate money transfer to other bank accounts, among other services. However, they cannot offer loans, or issue credit cards.

With the third party tie-ups, account holders in IPPB will be able to avail financial services as in case of a regular banking customer.