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India Post Payment Bank (IPPB)- Functions, Features, Services

What is India Post Payment Bank?

IPPB is like a special bank owned by the Indian government. It’s connected to the post office and uses postmen to reach people everywhere. The goal of this bank is to be the easiest and most trusted bank for regular people. The big idea is to make sure everyone, especially those who don’t have much access to banking, can use it. The government keeps an eye on it through RBI.

While IPPB helps everyone, it really focuses on helping those who don’t have a lot of money, people in rural areas, and small businesses. They use a mix of regular and online ways to help you with your banking needs:

  • You can do banking at home using your phone or the Internet.
  • You can go to a counter for help.
  • They also have special cards and apps for easy payments.
  • You can use ATMs for cash and other services.

So, IPPB is trying to make banking easy for everyone, no matter where they live or how much money they have.

Functions of India Post Payment Bank

  • IPPB handles various social security payments like MNREGA salaries and direct benefit transfers. Additionally, it offers access to third-party services such as insurance and mutual funds.
  • The Indian Post Payments Bank gives out a free debit card, but there’s a yearly maintenance cost of Rs. 100.
  • Through its many locations, the Indian Post Office provides diverse financial services, including post office savings plans, postal life insurance, mutual funds, money remittance, and foreign exchange services.
  • IPPB offers three types of savings accounts: Safal, Basic Savings Bank Deposit Account (BSBDA), and Sugam. The BSBDA Small-Saral account also provides Forex services at a reduced cost.
  • For deposits, an IPPB current and savings account can hold up to Rs. 1 lakh, and the savings account earns a 4% interest return.

India Post Payment Bank Services

The IPPB functions similarly to traditional banks, albeit on a smaller scale and without exposure to credit risk. Account opening with IPPB is a straightforward process facilitated by the Indian Post Payments Bank App (IPPB App), requiring the submission of details such as your Aadhar number along with KYC verification.

A noteworthy aspect of IPPB is its distinctive doorstep banking service, enhancing accessibility. This model has the capacity to bring banking services to the doorstep of every Indian citizen.

IPPB App Services

  • The doorstep banking service provides a variety of offerings, encompassing account initiation, cash deposits and withdrawals, fund transfers, recharge, and bill settlements, as well as third-party amenities like insurance, loans, investments, and additional account-related services.
  • This encompasses tasks such as updating PAN and nomination details, soliciting account statements and setting up standing instructions.
  • Furthermore, the IPPB app will extend its capabilities to include RTGS, IMPS, and NEFT services, facilitating seamless fund transfers.

Features Of Indian Post Payments Bank

  • IPPB offers three types of savings accounts: regular, digital, and basic.
  • No withdrawal fees at IPPB or PNB ATMs due to a tie-up with Punjab National Bank.
  • All savings accounts earn a 4% interest rate.
  • Forex services are available at reduced charges.
  • No minimum quarterly average balance requirement.
  • No charges for maintaining a minimum account balance.
  • QR card service allows easy access and transactions without remembering the account number, authenticated through biometric verification.
  • Free debit card with an annual maintenance fee of Rs. 100/- from the second year.
  • Utilizes a network of post offices and over 3,00,000 postmen to reach customers without traditional bank branches.
  • Offers third-party products like loans and insurance through tied-up banks or companies.
  • Aims to reach customers through mobile phones, catering to tech-savvy individuals comfortable with technology.
  • Encourages anyone above 18 years to open digital savings accounts using Aadhar and PAN cards, with KYC formalities to be completed within 12 months.

Indian Post Payments Bank Challenges

In terms of personnel, IPPB boasts a robust network, yet faces formidable competition from private entities such as Fino and Airtel Payments Bank. While these private institutions can swiftly adapt to client needs, IPPB must adhere to its existing model. Any alteration in its operational methods or regulations would necessitate extensive training and incur additional costs. Despite various opportunities, several challenges loom in the months ahead:

  1. Substantial investment in both finances and manpower is imperative for training IPPB service providers, namely the postmen.
  2. The imposition of a high service fee per transaction may dissuade customers from opting for IPPB services.
  3. Given IPPB’s technological advancement compared to traditional rural service banks, the Government of India must invest considerable time and effort in educating the public about its functionality and services.
  4. IPPB’s business strategy relies entirely on transaction fees, setting it apart from other banks.
  5. The absence of direct loan issuance poses challenges in generating revenue for IPPB, making it a potentially difficult and problematic endeavor.

Opportunities for India Post Payments Bank

  • Biometric authentication and QR cards replace passwords for enhanced transparency in transactions.
  • The instant account opening service, available at doorsteps or post-office counters, aims to simplify the entire process.
  • Aligned with Digital India and ‘Jan Dhan Yojana,’ the Government of India program seeks financial inclusion for rural India.
  • IPPB’s extensive Points of Presence (PoD) network provides a competitive advantage, offering doorstep banking services nationwide.
  • IPPB has the potential to evolve into one of the largest global banking networks beyond India.
  • IPPB savings accounts, with no minimum balance requirement, benefit diverse individuals, including those in rural areas, students, and housewives.
  • The initiative contributes to a cashless economy and helps reduce corruption.
  • Linking all IPPB bank accounts to Aadhaar ensures transparency in transactions.
  • Nationwide growth of IPPB is expected to generate additional job opportunities.

Performance of India Post Payments Bank

  • The opening of these 5 crore accounts took place through 1.36 lakh Post Offices, with 1.20 lakh situated in rural areas, facilitated by approximately 1.47 lakh doorstep banking service providers.
  • Among the total account holders, about 48 percent were female, while 52 percent were male, underscoring the Bank’s emphasis on integrating female consumers into the banking network.
  • IPPB has established the world’s largest digital financial literacy program, cultivating a financially conscious and empowered consumer base.
  • The expansion of digital banking to the masses by IPPB is facilitated through the Interoperable Payments and Settlement Systems of NPCI, RBI, and UIDAI, offering services in over 13 languages.

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Where can I open an IPPB account?

Opening a Digital savings account (new customer)
1. Download the IPPB app on your android phone from the google play store to activate banking services on the go.
2. Open your digital savings account by following on-screen instructions.

What is the customer ID of IPPB bank?

Your IPPB Customer ID Number can be found on the first page of your account passbook. So, locate your customer ID number in your India Post Payments Bank passbook

Which is Indian Post Payment bank?

India Post Payments Bank (IPPB) was setup under the Department of Post, Ministry of Communication with 100% equity owned by Government of India.

How can I get my customer ID?

The Customer ID is mentioned in the welcome letter and cheque book.

Is customer ID and CIF number same?

In most cases, yes, the customer ID is the same as the CIF number.

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