Which of the following statements about the India Post Payments Bank (IPPB) is/are correct? 1. It has been incorporated as a Public Limited Company. 2. It started its operation by establishing two pilot branches at Hyderabad and Varanasi. Select the correct answer using the code given below.
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
Correct answer
Explanation
The correct answer is A, 1 only. IPPB was incorporated as a public limited company, but its two pilot branches opened at Raipur and Ranchi, not at Hyderabad and Varanasi.
India Post Payments Bank was incorporated on 17 August 2016 as a public limited company under the Department of Posts, with the whole of its equity held by the Government of India. It began work on 30 January 2017 with pilot branches in Raipur (Chhattisgarh) and Ranchi (Jharkhand), and was launched across the country on 1 September 2018. Its aim is to bring banking to villages through the network of post offices and postmen. As a payments bank it may take deposits and offer payments and remittances, but it cannot give loans or issue credit cards.
Option B is wrong because statement 2 names the wrong cities. Option C is wrong because only statement 1 is true. Option D is wrong because statement 1 is correct.
Exam tip: IPPB: incorporated 2016, pilots at Raipur and Ranchi in January 2017, nationwide launch 1 September 2018.
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