The IPPB will use the network of post offices and almost 3 lakh postmen and 'Grameen Dak Sewaks' to provide banking services.
Prime Minister Narendra Modi on Saturday launched the payments bank of Indian postal department that will take banking to doorstep of every citizen through its vast network.
Speaking at the launch, the Prime Minister said, "Through India Post Payments Bank (IPPB) we will reach to every nook and corner of the country. Bank and banking services will be available at every person's doorstep."
The IPPB will use the network of post offices and almost 3 lakh postmen and 'Grameen Dak Sewaks' to provide banking services in every part of the country, especially in rural areas.
Here is what we need to know about India's newest bank:
1- 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.
2- It will carry out most banking operations like accepting deposits but can't advance loans or issue credit cards.
3- The 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.
4- Deposits in any account that exceed Rs 1 lakh will be automatically converted into post office savings account. It will offer 4% interest rate on savings accounts.
5- 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.
6- The government owns 100% in IPPB, which has been set up under the aegis of the Department of Posts, and will offer products and services through multiple channels such as counter services, micro ATMs, mobile banking app, messages and interactive voice response.
7- 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.
8- IPPB has teamed up with financial services providers like PNB and Bajaj Allianz Life Insurance for third-party products like loans and insurance.
9- The Cabinet, earlier this week, approved an 80% 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.
10- IPPB also has permission to link around 17-crore postal savings bank (PSB) accounts with its own setup.
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