A banking behemoth will take birth at Delhi’s Talkatora Stadium today when Prime Minister Narendra Modi inaugurates the India Post Payments Bank (IPPB). The bank will use its vast postal network to offer financial services to people across the country, including rural areas.
IPPB is a public sector company under the Department of Posts and the Ministry of Communication with a 100 per cent equity of the Government of India, and governed by the Reserve Bank of India. IPPB will focus on providing banking and financial services to people in rural areas, by linking all the 1.55 lakh post office branches (that’s nearly 2.5 times the bank network) with IPPB services by the end of 2018.
Postmen in rural and urban areas will provide doorstep banking services. This will create the country’s largest banking network with a direct presence at the village level.
Here are 10 important things to know about IPPB:
1. IPPB was the third entity to receive payments bank permit after Airtel and Paytm.
2. Payments banks can accept deposits up to Rs 1 lakh per account from individuals and small businesses.
3. IPPB will go live with 650 branches in addition to 3,250 access points co-located at post offices and around 11,000 gramin dak sevaks
(in rural area) and postmen (in urban area) that will provide doorstep banking services.
4. The payments bank will gradually link all 1.55 lakh post offices in the country to offer the service.
5. IPPB will offer a range of products such as savings and current accounts, money transfer, direct benefit transfers, bill and utility payments, and enterprise and merchant payments.
6. IPPB has permission to link around 17 crore postal savings bank (PSB) account with its account. It has received approval for carrying out RTGS, NEFT, IMPS transaction that will enable IPPB customers to transfer and receive money from any bank account.
7. IPPB will also launch a mobile app to facilitate online banking service as well as payment for various utilities and services like phone bill, DTH, gas connection, electricity, etc,
8. There will be 100 plus billers for which IPPB customers will be able to pay from their account. Since IPPB account can hold up to Rs 1 lakh deposit so once PSB account will be linked to them, customers will be able to transfer money from PSB to IPPB and vice-versa. Money beyond Rs 1 lakh can be kept in PSB.
9. All the billers that accept payment through Bharat Bill Payments system will be available for IPPB customers from Day 1 of the launch.
10. Customers can access their IPPB account through mobile app but it will have limited services. Once a customer completes KYC (know your customers) requirement, the app will start offering all the banking service.