India Posts Payments Bank (IPPB): 4 Unique Features that IPPB Gain Upper Hand Over Paytm and Airtel's Payments Bank

There is yet another entry into the payments bank space. This time from the Government of India, Department of Post (DoP) have received a nod from Reserve Bank of India to open the payments bank commercially in the name of India Post Payments Bank (IPPB)

The payments bank will be 100% owned by the Government of India via DoP, and will have an independent board of directors with representation from DoP and other stakeholders from within the Government of India.

india posts payments bank

IPPB is slated to have 650 branches at district headquarters and all post offices across the country will function as customer access points for IPPB.  IPPB will leverage the physical and IT infrastructure of the Post office and be set up on a lean operating model. It will focus on low-cost, low-risk, technology led solutions to extend access to formal banking.

IPPB will offer demand deposits such as savings and current accounts up to a balance of Rs 1 Lac, digitally enabled payments and remittance services of all kinds between entities and individuals and also provide access to third-party financial services such as insurance, mutual funds, pension, credit products, forex, and more, in partnership with insurance companies, mutual fund houses, pension providers, banks, international money transfer organisations, etc.


Also read: Want to earn 6% or more rate of interest on your Savings Account? Here are three banks which offer higher interest
How to Get Your Free Credit Information Report (CIR) Score From CIBIL, Equifax, Experian and CRIF High Mark
Airtel launches Payment bank in Andhra Pradesh and Telangana; How to open an account


Four features that make IPPB unique:



Streamlining Payments from Government: IPPB is being set up with a primary focus of improving the Direct Benefit Transfer of various subsidies. IPPB will be providing a robust technology platform for DBT disbursements and build a strong reporting mechanism.
By channeling a majority of subsidy disbursements through its combined network, DoP-IPPB combine will significantly increase its current market share

Financial Inclusion in Rural Areas: Millions of rural Indians don’t have access to banking facilities. They cannot avail of government benefits, loans and insurance, and even interest on savings. IPPB will reach the un-banked and the under-banked across all cross sections of society and geographies.

Ease of Accessibility: IPPB is powered by the very postmen who deliver our letters. With over 1.54 lac post offices across the country, India Post enjoys the trust of Indians everywhere. The postal delivery system will make IPPB, India’s most accessible banking network. IPPB will also offer services through internet and mobile banking, and prepaid instruments like mobile wallets, debit cards, ATMs, PoS and MPoS terminals etc.

Synchrony with other Post Office Schemes: Customers will be given the option to channel money from their IPPB accounts to any of the POSB (Post Office Savings Banking) schemes. For example, an IPPB customer will be able to use money in his account to open and service a RD/ TD/ SSY or any other POSB account. Thus both IPPB and POSB can synergistically serve the customers.

No comments:

Powered by Blogger.