STOCK MARKET BSE NSE

PM Modi launches India Post Payments Bank; IPPB to offer doorstep banking

The Bank would offer a range of products such as savings and current accounts, money transfer, direct benefit transfer, bill and utility payments and enterprise and merchant payments.

Published: 01st September 2018 04:24 PM  |   Last Updated: 01st September 2018 04:51 PM   |  A+A-

PM Narendra Modi inaugurates India Post Payments Bank (Photo | EPS/Shekhar Yadav)

By PTI

NEW DELHI: Prime Minister Narendra Modi on Saturday launched the payments bank of Indian postal department that will take banking to doorstep of every citizen through an unmatched network of post offices and almost 3 lakh postmen and 'Grameen Dak Sewaks'.

India Post Payments Bank (IPPB) will be like any other banks but its operations will be on a smaller scale without involving any credit risk.

It will carry out most banking operations like accepting deposits but can't advance loans or issue credit cards.

The freshly-minted payments bank will accept deposits of up to Rs 1 lakh, offer remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third-party fund transfers.

Communications Minister Manoj Sinha said IPPB will be available through 650 branches and 3,250 access points.

Deposits in any account that exceed Rs 1 lakh will be automatically converted into post office savings account, he said.

The government owns 100 per cent in IPPB, which has been set up under the aegis of the Department of Posts, and will offer products and services though multiple channels such as counter services, micro ATMs, mobile banking app, messages and interactive voice response.

IPPB will leverage tech platforms. It will use Aadhaar to open accounts, while a QR card and biometrics will drive authentication, transactions, and payments.

Grameen Dak Sewaks will be armed with smartphones and biometric devices to handle transactions. It will offer 4 per cent interest rate on savings accounts.

IPPB has teamed up with financial services providers like PNB and Bajaj Allianz Life Insurance for third-party products like loans and insurance.

The Cabinet, earlier this week, approved an 80 per cent hike in spending on IPPB to Rs 1,435 crore - arming it with additional ammo to compete in the market with existing operators like Airtel Payments Bank and Paytm Payments Bank.

IPPB services will be available at 650 branches and 3,250 access points from today but will be quickly scaled to all 1.55 lakh post offices by December 2018. Of these, 1.30 lakh access points will be located in rural areas, taking it to vast untapped market. IPPB also has permission to link around 17-crore postal savings bank (PSB) accounts with its own set up.



Comments(1)

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

  • Dr.N.Nataraja

    In the present era , where Postal Services are becoming obsolete , there are still a few people like me , who wish to take active part in the Nation's building by way of Deposits made in Post Offices , which in a way would be symbiotic , in that our deposits are safe in the Government's hands and at the same time the Funds thus deposited are useful in the building of our Nation , through the existing Govt of the Day... How i wish that the Employees and Officials working in the Post Offices give proper respect and discharge their due duties PROMPTLY and EFFICIENTLY. Afterall people like me have the Guts and Heart to live Honestly by the Rule of the Land..!
    3 years ago reply
edexworks
flipboard facebook twitter whatsapp