The Union Cabinet has approved financial support of Rs 820 crore for India Post Payments Bank, a source said on Wednesday.
The support will help state-run payments banks to penetrate deeper into the country, especially in the rural area, and work towards financial inclusion.
"There was a proposal to provide Rs 820 crore financial support to India Post Payments Bank (IPPB). It has been approved by the Cabinet," the source told PTI.
IPPB has over five crore accounts at present and operates through 1.36 lakh branches. Around 48 per cent of its account holders are women.
"IPPB plays an instrumental role in carrying out the government's social objectives. The support will help IPPB to advance the government's agenda of financial inclusion, especially in the rural area," the source said.