India Post Payments Bank (IPPB) and the Small Industries Development Bank of India (SIDBI) recently 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.
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.
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.”
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.”