The proposed IndiaPost PaymentBank(IPPB) is a banking service established to be initiated under the postal department or IndiaPost. It will be fully owned by the government.
IPPB is aimed to satisfy the object of financial inclusion.
Payments banks do only a limited version of banking services. They can accept deposits subject to certain prescribed maximum, do remittance services and issue debit cards. However they cannot do lending and hence cannot issue credit cards.
Payment banks generally help needs of the migrant labourers , small income households, individual unorganised sector small business people etc. As Post Offices are having a wide network and now the core banking facilities, they are best suited for this in the country.
IPPB will be functional only by or after March 2017 and we may get more clear guidelines by then.