IPPB UPSC: Relevance
- GS 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Fincluvation UPSC: Context
- Recently, India Post Payments Bank (IPPB) has announced the launch of Fincluvation– a joint initiative to collaborate with Fintech Startup community to co-create and innovate solutions for financial inclusion.
Fincluvation: Key points
- India has made rapid strides in FINTECH space in Global Tech world leading innovations like UPI, Aadhaar.
- Fincluvation is an Industry first initiative to create a powerful platform to mobilize the start-up community towards building meaningful financial products aimed at financial inclusion.
What is Fincluvation?
- Fincluvation or Innovation for Financial Inclusion is an initiative by Department of Posts and IPPB to invite Fintech startup community to co-create and innovate solutions for financial inclusion.
- Fincluvation will be a permanent platform of IPPB to co-create inclusive financial solutions with participating start-ups.
- Fincluvation invites startups to Participate, Ideate, Develop and Market intuitive and tailored products and services that can be taken to the customers.
- Fincluvation will allow the start-ups to work with IPPB and DoP experts to develop solutions and conduct pilots using the postal network and IPPB’s technology stack.
- Startups are encouraged to develop solutions aligned with any of the following tracks-
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- Creditization – Develop Innovative & Inclusive credit products aligned with the use cases of target customers and take them to their doorsteps through Postal network.
- Digitization – Bring convenience through convergence of traditional services with Digital Payment Technologies such as making the traditional Money Order service as Interoperable Banking service.
- Any Market-led solutions that can help solve any other problem relevant to IPPB and/or DoP in serving the target customers.
What is Fintech?
- FinTech is generally described as an industry that uses technology to make financial systems and the delivery of financial services more efficient.
- FinTech is broadly used to describe emerging technological innovations in the financial services sector, with ever increasing reliance on information technology.
- Read about Fintech industry in India.
About IPPB
- About: India Post Payments Bank (IPPB) has been established by the government to build the most accessible, affordable, and trusted bank for the common man in India.
- Parent Ministry: India Post Payments Bank (IPPB) functions under the Department of Posts, Ministry of Communication with 100% equity owned by the Government of India.
- However, IPPB will be governed by the Reserve Bank of India (RBI).
- Mandate: India Post Payments Bank (IPPB) is mandated to remove barriers for the unbanked and under-banked and reach the last mile leveraging the postal network.
- Operating Model: IPPB’s reach and its operating model is built on the key pillars of India Stack – enabling Paperless, Cashless and Presence-less banking in a simple and secure manner at the customers’ doorstep, through a CBS-integrated smartphone and biometric device.
- Read more about IPPB here.
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