UPSC Exam   »   India Post Payments Bank (IPPB)

India Post Payments Bank (IPPB) | Objectives, Features, and Performance of IPPB

India Post Payments Bank (IPPB)- Relevance for UPSC Exam

  • GS Paper 3: Indian Economy- Issues relating to planning, mobilization of resources, growth, development and employment.

India Post Payments Bank (IPPB) | Objectives, Features, and Performance of IPPB_40.1

 

India Post Payments Bank (IPPB)- Context

  • India Post Payments Bank (IPPB) announced that it has crossed the five-crore customer mark in 3 years of commencement of operations.
  • With this, India Post Payments Bank (IPPB) has become one of the fastest-growing digital payments banks in the country.

National Bank for Financing Infrastructure Development

 

India Post Payments Bank (IPPB)- Performance of IPPB

  • Digitization: India Post Payments Bank (IPPB) opened up five crore accounts in digital and paperless mode.
  • Focus on Rural Areas: These 5 crores accounts were opened through its 1.36 lakh Post Offices, out of which 1.20 lakh are in rural areas with the help of about 1.47 lakhs doorstep banking service providers.
  • Focus on Empowering Women: Out of the total account holders, around 48% were women account holders while 52% were male that indicated the Bank’s focus on bringing the women customers under the banking network.
    • About 98% of accounts of women were opened at the doorsteps and over 68% of women were availing DBT benefits.
  • Promoting Financial Literacy: With this, IPPB has achieved the world’s largest digital financial literacy program by building a financially aware and empowered customer base.
  • Promote Grassroots Banking: IPPB has taken digital banking to the grassroots levels through Interoperable Payments and Settlement Systems of NPCI, RBI, and UIDAI offering services in over 13 languages.

Offline Digital Payments: RBI Issues Guidelines

 

India Post Payments Bank (IPPB)- Key Points

  • About: India Post Payments Bank (IPPB) has been established by the government to build the most accessible, affordable, and trusted bank for the common man in India.
  • Parent Ministry: India Post Payments Bank (IPPB) functions under the Department of Posts, Ministry of Communication with 100% equity owned by the Government of India.
    • However, IPPB will be governed by the Reserve Bank of India (RBI).
  • Mandate: India Post Payments Bank (IPPB) is mandated to remove barriers for the unbanked and under-banked and reach the last mile leveraging the postal network.
  • Operating Model: IPPB’s reach and its operating model is built on the key pillars of India Stack – enabling Paperless, Cashless and Presence-less banking in a simple and secure manner at the customers’ doorstep, through a CBS-integrated smartphone and biometric device.

 

India Post Payments Bank (IPPB)- Key Objectives

  • IPPB enables Paperless, Cashless, and Presence-less banking in a simple and secure manner at the customers’ doorstep, through a CBS-integrated smartphone and biometric device.
  • IPPB delivers simple and affordable banking solutions through intuitive interfaces available in 13 languages.
    • IPPB does this by leveraging frugal innovation and with a high focus on ease of banking for the masses.
  • India Post Payments Bank (IPPB) aims to provide a fillip to a less-cash economy and contribute to the vision of Digital India.

 

India Post Payments Bank (IPPB)- Key Functions `

  • Account Types: India Post Payments Bank (IPPB) opens 3 types of saving account-
    • Regular Account- Safal,
    • Basic Savings Bank Deposit Account (BSBDA)- Sugam
    • BSBDA Small Saral
  • IPPB also offers Forex services at lower charges.
  • Deposit Limit: An IPPB current and savings account is allowed to have a maximum of Rs 1 lakh in its account. It offers a 4 percent interest rate on a savings account.
  • Key Services: IPPB offers social security payments like MNREGA wages, direct benefit transfer and gives access to third-party services like insurance and mutual funds.
  • Debit Card Services: Indian Post Payments Bank offers a free debit card with an annual maintenance fee of Rs. 100/-.

RBI Sets Up a Fintech Department

RBI Sets Up a Fintech Department

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