Grameen dAAk Sevaks: Delivering credit to the doorstep using AA!

24 May 2023
  • Pilot by Sahamati and India Post Payments Bank (IPPB) (Self-serve journey through assistance provided by GDS) to revolutionize lending for rural customers using the Account Aggregator framework.
  • The Program aims to provide unsecured loans in under 10 minutes through IPPB customer app to improve financial access.

CGAP has commissioned Sahamati to work with India Post Payments Bank (IPPB) to embark on a strategic pilot program. This innovative initiative aims to revolutionize the lending landscape, particularly for rural customers who face difficulties accessing loans through traditional channels. The prototype for the project was showcased at SamvAAd 2023 event; the showcase has left attendees buzzing with excitement about the boundless opportunities that the AA framework can open up.

Unleashing Financial Inclusion

The primary objective of the pilot program is to develop a customer app for IPPB, transforming it into a Loan Service Provider (LSP) capable of disbursing instant loans in under 10 minutes. By targeting the underserved rural segment, Sahamati, and IPPB aim to bridge the gap and provide access to instant and unsecured loans from multiple lenders. With the support of the Grameen Dak Sevaks (GDS) of India Post Office, IPPB’s extensive field network ensures on-ground assistance and seamless implementation.

Harnessing the power of digital technology, the pilot program utilizes bank statement data through Account Aggregators (AA), ensuring a 100% digital and instantaneous process. Leveraging the standard ONDC Financial Services or OCEN protocol rails, customers can effortlessly apply for loans without the hassle of lengthy paperwork or complex procedures. This digital transformation revolutionizes the lending experience, making it quick, convenient, and inclusive for all.

The app is ready with all back-end integrations completed and tested. As of 10th June 2023, the integration of lenders is currently underway. The pilot will go live in the next 2-3 months.

SamvAAd Show and Tell session at SamvAAd

Speaking at Samvaad, J Venkatramu (CEO of India Post Payment Bank) provided insights into the Department of Posts’s role as a payments bank – IPPB. He explained how the widespread coverage and distribution network of the Department of Posts is ideal for extending financial access.

Extensive Network of Department of Posts

IPPB addressed the challenge of financial access by leveraging its physical network of 1,60,000 post offices, of which 1,30,000 post offices are located in rural areas. On average, there is a post office every four to five villages, served by a postman known as Grameen Dak Sewak. These postmen deliver not only mail services but also financial services, including small savings schemes offered by the post office, which has been a part of the financial inclusion journey for many years.

Digitally enabled and interoperable banking services

Since its commencement in 2018, IPPB has introduced banking services through the post offices. These services are digitally enabled and interoperable, meaning that customers of any bank can access banking services through the post office. Products like Aadhaar Enabled Payment System (AEPS), Bharat Bill Payment System (BBPS), and other NPCI-promoted services have been successfully delivered through post offices. The relevance of this network became evident during the COVID-19 pandemic when the entire banking network was affected. Postmen, being essential service providers, could deliver cash door-to-door, ensuring continued access to financial services, particularly in rural areas.

Last Mile Connectivity furthering financial access

The vast network of post offices serves as a foundation for leveraging digital infrastructure. It can be transformed into a universal service platform, offering a wide range of citizen-friendly services beyond just financial services. For example, postmen now utilize digital mediums to provide pension services, digital life certificates, and child enrollments. These services are made possible with the crucial last-mile connectivity the postmen provide.

IPPB leveraging Account Aggregators to improve credit access

He elaborated on the role of Account Aggregators and their value to the postmen and financial inclusion. There are new possibilities of how Account Aggregators can enhance the services provided by postmen and further financial inclusion. He highlighted three key
  • Correctness of Data to access credit
  • Ease of Information Collection
  • Leveraging interactions and connections of Grameen dAAk Sevaks

Watch the Strategic Showcase at SamvAAd 2023: Grameen dAAk Sevaks: Delivering credit to the doorstep using AA!

Showcase and Insights from: J Venkatramu, CEO, IPPB | Prashant Muddu, CEO, Jocata | Anand Raman, Sr. Financial Sector Specialist, CGAP

We thank Ajit Abhaykumar Bhale, ex-COO and Board Member of, for contributing to the blog.