Latest entrants to the Digital India Movement, India Post Payments Bank (IPPB) savings account and Post Office Savings Account (POSA) aim to include the unbanked segment of our society into the banking system.
People had written off the entire Postal System as outdated and redundant because of the technological advancement that has undertaken this past decade until the recent launch of IPPB.
There are currently over 1.55 lakh post offices and 3.0 lakh postal employees in every district, town, and village of the country. The government plans to leverage this network by linking it with India Post Payments Bank.
IPPB will let people open a zero balance bank account at a 4% interest p.a. with no limits on withdrawal. As per the guidelines by the RBI, a payments bank is not allowed to issue any form of loans or credit cards. Which is why India Post Payments Bank aim to provide its customers with basic financial services like bill payments, Money transfers etc. IPPB will provide access to third-party financial services for mutual fund, insurance, pension, and loan products.
IPPB also launched a banking app to facilitate the financial inclusion movement.
Staying true to their tagline, “Aapka bank, aapke dwaar”, they also offer doorstep banking facility with multilingual customer support.
Things to know about India Post Payments Bank:
- Launched: 1st September 2018
- Launched with: 650 branches with 3250 access points all over the country
- Annual Interest Rate: 4%
- Interest Payment: Quarterly
- Linkage with POSA* Account: Yes
- Eligibility: Above 10 years and should fulfill all KYC requirements
- Minimum Account Balance: Nil
- Maximum end of day balance: Rs. 1,00,000
- Account Statement: Quarterly statement is free but the additional physical statement will carry a charge of Rs. 150
- ATM facility: No
- Credit Card Facility: No
- QR Card**: Free
- Availability of funds at your doorstep, upon request.***
*IPPB savings account holder can link his or her account with their India Post Savings Scheme Account. If the account holder opts for this linkage then the account balance above the maximum end of day balance (Rs. 1,00,000) will be transferred to the linked POSA account.
**The QR code will be used to identify India Post Payments Bank account holders through smartphones or micro-ATMs. With the QR codes, you can just scan and pay!
***Door Step Banking Service Charges:
Digital Transaction: Rs. 15 per Transaction
Cash Transaction: Rs. 25 per Transaction