India Post Payments Bank will focus on providing banking and financial services to people in rural areas, by leveraging the reach of 1.55 lakh post office branches.
New Delhi : Prime Minister Narendra Modi on Saturday launched India Post Payments Bank (IPPB) aimed at strengthening financial inclusion by taking banking services to the unbanked rural areas across the country. Payments banks can accept deposits restricted up to Rs 1 lakh per account (at present) from individuals and small businesses.
IPPB will provide doorstep banking facility to customers. This facility, however, is not free of charge. Under the system, an amount ranging between Rs.15 and Rs.35 will be charged per transaction. The maximum limit for doorstep banking is Rs.10,000.
Key Features of India Post Payments Bank
FINANCIAL LITERACY: Wealth creates wealth. Even a little saving can go a long way if channelized correctly. With trustworthy advice and services designed to include everybody, income can be invested correctly, more can be saved, and people can start moving forward, faster. IPPB aims to make India prosperous by ensuring that everyone has equal access to financial information and services, no matter who they are, what they earn and where they live.
STREAMLINING PAYMENTS: Beneficiaries can access income from government’s DBT programs like MNREGA wages, Social Security Pensions and scholarships, directly from their IPPB bank account with near zero friction. They can also pay their utility bills, fees for educational institutions and much more from the same IPPB account. It ensures that wherever they are, they can make the most of the financial opportunities available to them.
FINANCIAL INCLUSION: Millions of 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 unbanked and the underbanked across all cross sections of society and geographies. Services offered by IPPB will help them take the first step towards prosperity.
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 the internet and mobile banking, and prepaid instruments like mobile wallets, debit cards, ATMs, PoS and MPoS terminals etc.
India Post Payments Bank mobile app
Using its mobile app, customers will be able to access the IPPB account but with limited services. To use all the banking services, the customer will have to complete all KYC requirements. Along with online banking service, payment for various utilities and services like phone bill, DTH, gas connection, electricity etc. will be accessible to customers. All the billers that accept payment through Bharat Bill Payments system will be available for IPPB customers from Day 1 of the launch.
Input from Wikipedia