Like other payments banks, IPPB will target financially excluded customers such as migrant workers, low-income households and tiny businesses. The payments bank will begin with Rs.400 crore equity capital and a Rs.400-crore government grant. For India Post, though, the business will be a natural extension of its work. Tata Consultancy Services Ltd also won a six-year contract in 2013 for India Post’s IT modernization programme. Considering the size of India Post’s operations and its reach in the hinterland, this vertical is a lucrative proposition both for the government-owned entity and the private companies who seek to work with it.

Source: Mint July 17, 2016 19:07 UTC