10 things to know about India Post Payments Bank being launched by PM Modi

India Post
Prime Minister Narendra Modi is set to launch the India Post Payments Bank (IPPB) at New Delhi's Talkatora Stadium on Saturday. The event will take place in the capital along with simultaneous launch events at 650 branches and 3,250 access points across the country.

The India Post Payments Bank seeks to leverage the expansive network of the postal department to ensure financial inclusion for the masses. It will have a network of 155,000 post offices and 30,000 postmen who have already undergone training to perform banking services. 

Here are the 10 most important things to know about IPPB: 

1. Leverage the strengths of India Post: The payments bank, where the Indian government holds 100 per cent equity, will leverage the vast network of the Department of Posts (DoP), which has more than 300,000 postmen and Grameen Dak Sewaks.

2. Pilot project: It started operations on 30 January 2017 by opening two pilot branches -- one each in Raipur and Ranchi.

3. Third licensee: This is the third entity to receive payments bank permit after Bharti Airtel and Paytm. 

4. Opening a bank account: You can open an IPPB account only through an Aadhaar e-Know Your Customer process. The account is ready almost instantly. The account holder is given a plastic card with a QR code with account details, so they do not need to remember their account numbers.

5. Interest offered: It will offer a 4 per cent interest rate on savings accounts.

6. Balance requirement: The account can be opened with a zero balance and payments banks can accept deposits of up to Rs 100,000 per account from individuals and small businesses. 

7. Products offered: The payments bank will offer a range of products such as savings and current accounts, money transfer, direct benefit transfers, bill and utility payments, and enterprise and merchant payments.

8. Services like doorstep banking: Customers can avail of mobile banking, digital banking and doorstep banking  

8. Post office savings bank accounts: IPPB has a headstart over other banks in getting customers as they have a strong base of 170 million post office savings bank accounts. 

10. Spending: The Cabinet had approved 80 per cent increase in spending for IPPB to Rs 14.35 billion, a move that will arm it with additional ammunition to compete aggressively with existing players like Airtel Payments Bank and Paytm Payments Bank.

With agency inputs

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