The much awaited India Post Payments Bank or IPPB was finally launched in Raipur and Ranchi on January 30th, 2017. The public sector bank has 100% Government of India equity and comes under the Department of Posts.
Accessible and Inclusive Banking
In keeping with its promise of ‘Aapka bank, aapke dwaar’, IPPB aims to expand throughout the country by the end of the year. By extending banking to the remotest corners of India, the bank aims to ‘bring prosperity to every doorstep’. The promise of inclusive banking is a credible promise considering all the pioneering work done by the Department of Posts through India Post over more than 150+ years of its history.
IPPB services will also be designed for the convenience of customers irrespective of whom they are and where they live in India. Even small savings can make a big difference to Indian citizens if channelized effectively. To achieve this, banking will be kept simple and affordable apart from being delivered at the doorstep through an efficient banking network. Government benefits can flow directly into the IPPB bank accounts of the beneficiaries without delay and without leakages by intermediaries.
To achieve this, IPPB will leverage digital channels like mobile, UPI and debit cards useable at ATMs, mobile-PoS and PoS. Customers can enjoy all-round connectivity with IPPB for transactions and account details.
To begin with IPPB is offering a Savings account facility. Customers can also access digitally enabled payments and make remittances. The idea is to quickly expand the offering later to include current account facilities and third party services such as insurance, mutual funds, credit and pension. Indians everywhere must enjoy a well diversified choice of financial offerings.
A Wide Variety of Banking Services
A wide array of Banking Services to suit different customer needs is available through three types of accounts offered currently by IPPB.
- Safal or Regular Savings Account
- Sugam or Basic Savings Bank Deposit Account (BSBDA)
- Saral or BSBDA Small Account
Anybody aged ten years or more with KYC can open an account with an initial deposit of Rs 100. All three formats of accounts come with a free ATM/Debit card. Nomination facility is available. The interest is 5.5% per year and is payable every quarter. Doorstep Banking is available at Rs 15-35 on all three types of accounts.
While Safal is a feature rich option, Saral is for those with simpler banking needs. The maximum account balance for Safal and Sugam accounts is Rs 100000 and Rs 50000 for Saral accounts.
There are many other services available depending on the account type. For detailed information on these you can click on the link below:
Domestic Remittance Services
Customers of the bank can use the Domestic Remittance Services to transfer funds. Details of the safe and inexpensive modes of transfer with their lead times and amounts can be accessed by clicking on the link below:
- NEFT transactions can be made from the Remitter Bank to the Beneficiary’s Bank account without any limit. However, cash based remittances are limited to Rs. 50000. This is done in hourly batches.
- The IMPS payment system is for instant 24×7 remittances from Remitter Bank account to Beneficiary Bank account with a stipulated Rs. 50000/day/account for encrypted messaging formats and Rs. 1000/day/account for unencrypted formats.
- A maximum of Rs. 10000 can be transacted in real time through AEPS Inter-account transfer between Aadhaar linked accounts via Micro-ATM device.
- The UPI mode is for remittances up to Rs 100000. These are instant in terms of transfer time and are available 24×7
- NUUP mode is for instant, 24×7 remittances from Remitter Bank account to beneficiary bank account linked to MMID/Aadhaar. Rs.5000 is the upper limit per transaction.
Direct Benefit Transfer (DBT)
Subsidies and direct benefits from Government schemes will be transferred directly to the bank accounts of the intended people. No cash will be involved as the Government Agency doing the disbursement will transfer the benefit through NACH/APBS. This will ensure that delays and leakages through corruption are eliminated and the beneficiary gets the full amount. Customers can also opt for delivery of the benefit transfer at the door step through Doorstep Banking.
For a small amount or fee, IPPB customers can opt to bank or enjoy certain services at their doorstep. This facility offers great customer convenience. As of now Doorstep Banking is available on services such as depositing and withdrawing cash, balance enquiry and transfer of funds from Aadhaar to Aadhaar accounts.