Chandra Sekhar Pemmasani Reviews India Post & IPPB, Stresses Inclusion

The Minister of State for Communications and Rural Development, Dr. Chandra Sekhar Pemmasani, chaired a comprehensive review meeting on the performance of India Post and the India Post Payments Bank (IPPB). The review focused on strengthening digital initiatives, enhancing customer convenience, and deepening financial inclusion, particularly in rural and underserved areas.

Focus on Last-Mile Access and Trust

Addressing the meeting, the Minister stressed the importance of closer coordination between India Post and IPPB to ensure citizens in the remotest corners of the country continue to receive affordable, accessible, and reliable services at their doorstep. He reiterated that trust, last-mile reach, and financial inclusion remain the defining priorities for both institutions.

Impressive Growth of IPPB

Officials presented a strong performance update for IPPB, which has seen rapid expansion in recent years:

• Customer base: Over 12 crore customers

• Deposits: Nearly ₹20,000 crore

• Revenues: Around ₹2,200 crore

• Profit: ₹134 crore

• Workforce: Lean team of about 1,250 employees, leveraging India Post’s unmatched reach

The Bank has recorded a compound annual growth rate (CAGR) of 60–70% over the last two years, despite sectoral challenges. The Minister praised IPPB for effectively combining a lean workforce with India Post’s massive delivery network of post offices, postmen, and Gramin Dak Sevaks (GDS).

Expanding Credit Access in Rural India

One of the highlights of the review was IPPB’s push towards expanding credit facilities in rural and underbanked areas. In collaboration with HDFC Bank, Axis Bank, Aditya Birla Capital Finance, and Aadhaar Housing Finance, IPPB is extending a range of loans including:

• Home loans

• Personal loans

• Auto loans

• Agricultural loans

• Kisan Credit Card (KCC) loans

• Gold loans

• Tractor and commercial vehicle loans

In June 2025 alone, over 150 loans worth ₹7 crore were disbursed. Work is also underway to design small-ticket digital credit products to help rural entrepreneurs, micro businesses, and self-employed individuals gain easy access to credit.

Postal and Digital Synergy

The Minister appreciated the ongoing integration of India Post’s postal network with IPPB’s digital services. Together, they are offering crucial services to citizens through 1.64 lakh Post Offices and access points, including:

• Utility bill payments

• Domestic money transfers

• e-KYCs for Post Office Savings Bank (POSB) accounts

• Digital Life Certificates (DLCs) for pensioners

These services, powered by Postmen and GDS agents, ensure that citizens, especially in villages and remote regions, do not need to travel long distances to access essential financial and postal facilities.

Building a Digitally Driven Future

Officials informed the Minister that India Post and IPPB are working to evolve into a stronger, digitally driven financial services ecosystem. The roadmap includes:

• Expanding partnerships with financial institutions

• Introducing new products tailored for rural households

• Leveraging the deep trust and outreach of India Post’s network

• Transforming into a central pillar of digital financial inclusion in India

Dr. Pemmasani concluded the meeting by commending the progress made so far and encouraged the institutions to continue innovating. He emphasized that India Post and IPPB have the potential to redefine rural banking and postal services, making them more inclusive, transparent, and technology-driven.

The review highlights the Government of India’s commitment to harnessing the legacy reach of India Post and the digital agility of IPPB to create a truly inclusive financial ecosystem. As both institutions move towards deeper digital integration, they are set to play a pivotal role in delivering financial empowerment to every Indian household.