NEW DELHI: According to India Post Payments Bank (IPPB) MD and CEO J Venkatramu, the bank intends to become a universal bank since its extensive network of post office outlets will contribute in achieving financial inclusion.

He said when IPPB started operations in 2018, 80 per cent of the transactions would happen in cash. However, with technology adoption, presently only 20 per cent of the transaction happens in cash and 80 per cent digitally. "Given the network of post offices, probably we fit the bill in terms of being the institution, which can reach every nook and corner. If we get a full fledged banking licence, especially for financial inclusion, that will help us serve larger goals," Venkatramu said at a Confederation of Indian Industry (CII)  event in New Delhi.

He was replying to a question on the bank approaching the Reserve Bank of India (RBI) for universal bank licence.

He said credit is an important facet of financial inclusion as well as social upliftment, the vast network of post offices could help in financial inclusion and extending credit. As a payment bank under the RBI, IPPB can extend services of deposits, remittances, internet banking and other specified services, but they cannot give loans or issue credit cards.

Venkatramu said that credit is an important facet of financial inclusion as well as social upliftment, the vast network of post offices could help in financial inclusion and extending credit. As a payment bank under the RBI, IPPB can extend services of deposits, remittances, internet banking and other specified services, but they cannot give loans or issue credit cards.

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