CAG Calls Out Widespread Inactivity and Technical Hiccups in IPPB Operations

The India Post Payments Bank (IPPB) is under scrutiny as a report by the Comptroller and Auditor General of India (CAG) unveiled glaring issues in its operations. One of the major findings revealed that IPPB opened accounts without verifying mobile numbers, with multiple Customer Information Files unfortunately tied to the same contact information.

This lack of verification, combined with widespread dormancy in existing customer accounts, denotes serious flaws in the bank's system. Furthermore, IPPB's Doorstep Banking services are not gaining much popularity, with records showing several delayed, cancelled, or unattended requests, reflecting operational inefficiencies.

The CAG emphasized the need for improved transaction reliability after discovering that IPPB's Unified Payments Interface (UPI) services had a technical decline rate alarmingly above the Reserve Bank of India's threshold. In response, the auditor recommended robust monitoring and data cleansing to enhance customer trust and support financial inclusion initiatives effectively.