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

India Post Payments Bank (IPPB) opened up five crore accounts in digital and paperless mode through its 1.36 lakh Post Oﬃces, out of which 1.20 lakh are in rural areas.

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

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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.

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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.

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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/-.