India Post Payments Bank (IPPB) and the Small Industries Development Bank of India (SIDBI) entered into a strategic partnership to promote extension of formal financial services and other support services to MSMEs, especially enterprises in rural and remote areas of the country. Shri Sivasubramanian Ramann, CMD SIDBI and Shri J. Venkatramu, MD & CEO, IPPB signed an MoU on October 11, 2023 in the august presence of Shri Vivek Joshi, Secretary, Department of Financial Services, GoI and Smt.Vandita Kaul, Member (Banking and DBT), Postal Services Board, Department of Posts, GoI.
The partnership aims to leverage IPPB's rural reach and deep connect with village level communities and SIDBI's lending and credit risk assessment models in reaching to informal and micro enterprises in rural and remote areas as may be permitted under the extant regulations. IPPB shall also support SIDBI's customers in digitising the payment mechanisms through its merchant onboarding system and collection solutions like UPI, QR based solutions, etc. The two Institutions will also undertake joint programmes to upgrade skills of Dak Sevaks in supporting credit and other services to micro enterprises. They will jointly work together to identify other areas of mutual interest and undertake the various activities to support MSMEs and MSME ecosystem across the country with special focus on informal micro enterprises.
Along with signing of the MoU, announcements were also made for organising a hackathon involving the Fintech community for innovation in financial services in rural areas as also a Swavalamban Challenge Fund to promote rural livelihood enterprises.
Speaking on the occasion, Secretary, DFS emphasised on the potential that the proposed partnership between SIDBI and IPPB holds in furthering the financial inclusion in the country, especially by targeting informal and micro enterprises in rural and remote areas.
Member (Banking & DBT), PSB highlighted the efforts made by IPPB within a short span of time since its inception in promoting financial inclusion as also in digitising financial transactions to improve affordability and ease of access to the very small enterprise.
Mr. Sivasubramanian Ramann, said "we look forward to a fruitful and meaningful partnership with IPPB which can make a positive impact on millions of informal rural enterprises in the country by improving their access to financial services and financial literacy."
Shri J. Venkatramu, MD & CEO, IPPB expressed the institutional desire to strengthen financial inclusion initiatives and looked forward to the partnership with the principal Financial Institution for MSMEs in the country.