India Post Payments Bank launched: All you need to know

Prime Minister Narendra Modi launched India Post Payments Bank (IPPB) at Talkatora Stadium in New Delhi on Saturday. India Post Payments Bank will focus on providing banking and financial services to people in rural areas, by leveraging the reach of 1.55 lakh post office branches. On the day of the launch, IPPB will have 650 branches and 3,250 access points spread across the country. The government aims to link all the 1.55 lakh post offices to the India Post Payments Bank system by 31 December 2018.

Things to know about India Post Payments Bank

1) India Post Payments Bank have set up under the Department of Posts, Ministry of Communication, with 100% equity owned by Government of India.

2) It started operations on 30 January 2017, by opening two pilot branches, one at Raipur and the other at Ranchi.

3) India Post Payments Bank will offer 4 percent interest rate on savings accounts.

4) Payments banks will accept deposits of up to Rs 1 lakh per account from individuals and small businesses.

5) India Post Payments Bank will, in alliance with other financial service providers, offer third-party products.

6) India Post Payments Bank will offer a range of products (savings, current accounts, money transfer, direct benefit transfers, bill-utility payments and merchant payments).

7) These products and services will be offered across multiple channels (counter services, micro-ATM, mobile banking app, SMS, and IVR), using the India Post Payments Bank’s technology platform.

8) India Post Payments Bank has been allowed to link around 17 crore postal savings bank (PSB) accounts with its accounts.

9) India Post Payments Bank have envisioned as an accessible, affordable and trusted bank for the common man. 

10) The Cabinet approved an 80% increase in spending for India Post Payments Bank (IPPB) to Rs 1,435 crore. The increase will take the IPPB project outlay to Rs 1,435 crore from Rs 800 crore — giving it additional firepower to compete in the market with existing operators like Airtel Payments Bank and Paytm Payments Bank.