The India Post Payments Bank launched on September 1, 2018, by PM Narendra Modi is a payments bank that aims at making banking services available at people’s doorstep. This article will abreast you with IPPB, its aim, functions, benefits and challenges of India Post Payments Bank.
Indian Post Payments Bank
IPPB is a wholly-owned payments bank, a subsidiary of the Indian postal department, which with 100 per cent Government of India equity works through a network of post offices and nearly 3 lakh postmen.
Indian Post Payments Bank with the vision of building the most affordable, accessible, and trusted bank for the common man and driving the agenda of financial inclusion for the under-banked population will be governed by RBI.
Though the services of Indian Post Payments Bank is for all the citizens; the primary focus of IPPB is serving the low-income households, social sector beneficiaries, unorganised sector, migrant labourers, MSMEs – Micro Small and Medium Enterprises, and Panchayats in rural areas also the under-banked and unbanked segments in both the urban and rural areas.
IPPB offers services through a mix of physical and digital platforms. Channels used for delivering IPPB services include:
- Doorstep, mobile and internet banking
- Counter operations
- Pre-paid instruments such as PoS, mobile wallets, MPoS, etc.
- ATMs/micro ATMs
Opportunities Of IPPB
- Currently, there are about 50,000 bank branches in rural India, while the Department of Post alone has almost 1,30,000 service points in rural India, which, if converted into points of banking service, can extend the presence of IPPB banking services in rural India by 3.5 times.
- Coupled with convenient, simple, and affordable digital solutions, IPPB intends to leverage the trust that the public has on India Post.
- To provide doorstep banking services for 3,00,000 employees of Indian postal services are provided with biometric and handheld devices.
- IPPB may help increase rural per capita income through domestic savings by tapping the savings of rural people.
- IPPB will reduce the exploitation of rural people by money lenders and provide effective financial services.
- The expansion of rural banking services has become difficult as the mounting pressure of NPAs turned banks towards the over-burdening task of recovery of credit. IPPB will reduce this pressure and ease the expansion of banking services.
IPPB App Services
- The doorstep banking facility offers a range of services including account opening, cash deposits and withdrawals, money transfers, recharge and bill payments, third-party services like insurance, loans, investments and other account-related services.
- The account-related services include updating PAN and nomination details, requesting account statements, and issuing standing instructions.
- The IPPB app will also offer RTGS, IMPS and NEFT services for the transfer of funds.
Salient Features Of Indian Post Payments Bank
- The IPPB offers three types of savings accounts: regular, digital and basic.
- No fee for withdrawals made from IPPB ATM or PNB ATM since it has a tie-up with Punjab National Bank.
- The bank will offer a 4% interest rate in all the savings accounts.
- It also offers Forex services at lower charges.
- Unlike most banks, there will be no need to maintain a minimum quarterly average balance.
- No charges for the lack of a minimum account balance.
- The IPPB also offers a QR card service that will help one access their bank account and make transactions without having to remember their account number. Using the QR card, all transactions can be authenticated via biometric verification.
- Indian Post Payments Bank offers a free debit card with an annual maintenance fee of Rs. 100/- from the second year.
- Using a network of post offices, and the services of over 3,00,000 postmen, the IPPB will reach customers without the traditional bank branches.
- IPPB provides third-party products like loans and insurance through the other banks or companies that it has tied up with.
- In the absence of traditional bank branches, the IPPB aims to reach its customers through their mobile phones. That is why it has the chance to flourish among people who are tech-savvy and comfortable with technology.
- The IPPB will encourage anyone above 18 years of age to open digital savings accounts, using their Aadhar and PAN cards. The KYC formalities for such accounts must be completed within 12 months.
FAQs
What is the objective of IPPB and why was it established?
India Post Payments Bank is a division of Indian Post and a payments bank from India operated by the India Post. It was established on September 1, 2018.
What is the vision of IPPB?
The India Post Payments Bank envisions building the most accessible, affordable and trusted bank for the common man.