New Delhi, March 5 -- India Post Payments Bank (IPPB) has reiterated its appeal to convert into a Small Finance Bank (SFB), citing its extensive rural network and digital-first strategy as key enablers for bridging the credit gap for small businesses, farmers, and self-help groups (SHGs).

Vandita Kaul, Secretary (Posts), has urged the Reserve Bank of India (RBI) and the Ministry of Finance (FinMin) to approve the transition, emphasising that a capital infusion of just Rs 200 crore could facilitate the shift.

Currently, payment banks, including IPPB, are prohibited fr0m lending under RBI regulations. Kaul stressed the necessity of expanding IPPB's role, stating, "We definitely need to move into actual credit disbursal.

The only way forw...