The IPPB or Indian Post Payments Bank, launched by PM Modi on Saturday, is an initiative of the government aimed at making banking services available at people’s doorstep. This payments bank of the Indian postal department will work through a network of post offices and nearly 3 lakh postmen and ‘Grameen Dak Sewaks’. The services of IPPB will be available at 650 branches and 3,250 access points from today.
The operations of IPPB will be on a smaller scale as compared to other banks and will not advance loans or issue credit cards to avoid risk. Performing the rest of its functions, it will accept deposits, offer remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third-party fund transfers. It has teamed up with PNB and Bajaj Allianz Life Insurance for loans and insurances.
The maximum limit on deposits is Rs 1 lakh, beyond which the account will be automatically converted into post office savings account. The bank offers a 4 per cent interest rate on savings account.
IPPB has permission to link around 17-crore postal savings bank (PSB) accounts with its own set up.
The launch of the #IndiaPostPaymentsBank is a watershed moment in the history of our banking sector. Using latest technology, this Bank will ensure even greater financial inclusion. pic.twitter.com/KfM0KnNtPH
How to avail IPPB services
The products and services of the bank will be made available through various mediums such as counter services, micro ATMs, mobile banking app, messages and interactive voice response.
The IPPB will use Aadhaar to open accounts and a QR card and biometrics will be used for authentication, transactions, and payments. The Grameen Dak Sewaks will carry smartphones and biometric devices to handle transactions.
To begin with, the services have been made available at 650 branches and 3,250 access points from Saturday. The government aims to increase the number of access points to 1.55 lakh by December, of which 1.30 lakh will be located in rural areas.