India Post Payments Bank (IPPB) wants to become a universal bank because its extensive network of post office branches will aid in financial inclusion, according to J Venkatramu, MD and CEO of IPPB.

He stated that when the IPPB began operations in 2018, cash would account for 80% of transactions. However, due to technological advancements, only 20% of transactions are currently conducted in cash, with the remaining 80% conducted digitally.

"Given the network of post offices, we probably fit the bill as the institution that can reach every nook and cranny. If we obtain a full banking licence, especially for financial inclusion, we will be able to serve larger goals "Venkatramu stated this at a CII event in this city.

He was responding to a question about the bank's application for a universal bank licence with the Reserve Bank of India (RBI).

He stated that credit is an important aspect of both financial inclusion and social upliftment, and that the vast network of post offices could aid in financial inclusion and credit extension.

As a payment bank regulated by the RBI, IPPB can offer deposits, remittances, internet banking, and other services, but they cannot make loans or issue credit cards.

IPPB was established on August 17, 2016 as a public limited company with 100 percent government of India equity under the Department of Posts under the Companies Act, 2013.

Anurag Jain, Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT), spoke at the event and emphasised the importance of a "very" well-designed ecosystem for resolving customer complaints.

"There could be a problem with 0.1 percent or 0.01 percent of the transactions, but that will add to the large number of transactions and the person who has lost money... For you (payment banks) it may be a statistics... However, for the person who has lost the money, this is a problem "Jain stated.