Leveraging the ubiquitous post office network across India, Department of Posts has launched its payments bank service – India Post Payments Bank (IPPB). The banking operation has started at two pilot post office branches at Raipur and Ranchi. With this roll out IPPB has become the second payments bank to launch in the country after Airtel Payments Bank.
IPPB can really become the true banking at the doorstep. That’s because of the huge postal network in the country, especially in the rural sector. It can effectively utilize its pan-India physical presence, long experience in cash handling and backed by the ongoing project of IT-enablement. Government plans to open around 650 IPPB branches by September 2017.
India Post Payments Bank main USP will be its ability to ease access and handhold the adoption of new age banking and payments instruments among citizen of all walks of life through the delivery by postmen and Grameen Dak sevaks, savings agents and other franchisees who will take banking to doorsteps. Its motto will be “No customer is too small, no transaction too insignificant, and no deposit too little“.
For those who are new to Payments Bank, the Reserve Bank of India (RBI) back in 2015 granted Payments Bank license to eleven entities including India Post. Payments Bank operate as a differentiated bank and can accept demand deposits, remittance services, internet banking and other specified services. But it can’t provide money lending services like loans. The main purpose of this type banks is to serve certain niche interests, remittance needs of small businesses, unorganized sector, low-income households, farmers etc.
Digging the background of India Post Payments Bank, the entity received the cabinet’s approval on 1st June 2016 and was incorporated as on 17th September 2016. Its a 100 percent Government of India owned Public Limited Company under the Department of Post. IPPB got the final approval from RBI on 20th Jan 2017. It has partnered with Punjab National Bank to commence the banking operation. With the launch of IPPB, all 1.55 lacs post offices including the 1.39 lac of the rural post offices will be mapped to the IPPB branch at the district headquarter and function as access points for IPPB.
Get started with India Post Payments Bank
With IPPB, you can open a current or savings account with up to a balance of Rs 1 lac. There are three distinct accounts you can open with IPPB – Regular Account – Safal, Basic Savings Bank Deposit Account (BSBDA) – Sugam and BSBDA Small – Saral. Aadhaar based e-KYC will be used for instant account verification. For all account type, IPPB will be offering an interest rate of up to 5.5 percent on money deposit.
IPPB will offer basic banking services like payments including social security payments, utility bill payments, recharges etc. You can do person to person both domestic and cross-border money transfer. Other services include distribution of insurance, mutual funds, and pension products. It will also act as business correspondent to other banks for credit products. As IPPB is building over state of the art internet and mobile banking platforms, you will get access to IPPB digital wallets and other emerging technologies.
India Post Payments Bank Features
- Widest reach with 1.55 lacs Post offices across India.
- Bank accounts – Regular Account – Safal, Basic Savings Bank Deposit Account (BSBDA) – Sugam and BSBDA Small – Saral.
- Fund transfer facility via NEFT, IMPS, AEPS, UPI and USSD (*99#).
- Aadhaar based e-KYC will be used for instant account verification.
- Direct Benefit Transfer – this allows funds from disbursing agency to transfer subsidies directly to the people through their bank account.
- Doorstep banking – Cash deposit, Cash withdrawal, Balance enquiry and Aadhaar to Aadhaar funds transfer.
Interest rates up to 5.5 percent on money deposit.
- Free first Debit card for all accounts.
- No minimum quarterly average balance requirement.
- Free cash withdrawals at India Post ATMs and Punjab National Bank ATMs.
IPPB Savings account charges and features
|Account||Regular Savings Account|
– Safal Account
|Basic Savings Bank|
Deposit Account (BSBDA)
– Sugam Account
– Saral Account
|Eligibility||Anybody 10 years and above with KYC||Anybody 10 years and above with KYC||Anybody 10 years and above with KYC|
|Initial minimum deposit requirement||INR 100||INR 100||INR 100|
|Minimum account balance||Nil||Nil||Nil|
|Maximum balance||INR 1,00,000||INR 1,00,000||INR 50,000|
|ATM/ Debit Card||Free||Free||Free|
|Subsequent cards||INR 100||INR 100||INR 100|
|Annual maintenance charges|
(from 2nd Year)
|PIN regeneration through|
|INR 50||INR 50||INR 50|
|Servicing / Transactions|
|Minimum Quarterly Average|
|Annual Interest Rate|
|If QAB is upto and|
including INR 25,000
|4.50 percent||4.50 percent||4.50 percent|
|If QAB is above INR 25,000|
and upto and including INR 50000
|5.00 percent||5.00 percent||5.00 percent|
|If QAB is above INR 50,000||5.50 percent||5.50 percent||5.50 percent|
|Quarterly Non maintenance|
|Monthly Account statement|
(including duplicate statements)
|Doorstep banking||INR 15-35||INR 15-35||INR 15-35|
|Interbank remittances charges|
(IPPB Intrabank remittance is free)
|2 remittances free per month||Chared per remittance||Chared per remittance|
|Free monthly customer induced transactions.|
Subsequently @ INR 20 per transaction at branch
and Customer Service Points
|4 Free||4 Free||4 Free|
|ATM monthly transactions|
|At IndiaPost ATMs||All free||All free||All free|
|At Punjab National Bank’s ATMs||All free||All free||All free|
|At other bank’s ATMs: Metro||3 txns.free||3 txns.free||3 txns.free|
|At other bank’s ATMs: Non- Metro||5 txns.free||5 txns.free||5 txns.free|
|Additional transactions at|
Other Bank’s ATMs
|Financial: INR 20||Financial: INR 20||Financial: INR 20|
|Non-financial: INR 8||Non-financial: INR 8||Non-financial: INR 8|
|Maximum ATM withdrawal per|
|INR 10,000||INR 10,000||INR 10,000|
|Maximum ATM withdrawal per day||INR 25,000||INR 25,000||INR 25,000|
|Maximum cumulative spend at POS outlets|
and ecommerce sites per day
|INR 65,000||INR 65,000||INR 65,000|
|Standing Instruction Charges|
(IPPB to IPPB)
|Account status change (Inactive to|
active and dormant to active)
|Account Closure Charges within|
14 days of Account Opening
|Account Closure within 6 months|
– Customer induced
|INR 250||INR 250||INR 250|
|Balance certificate per|
|ATM card/ KIT returned due|
to wrong address
|INR 100||INR 100||INR 100|
|Charges to be recovered from IPPB|
customer in case of cheque bounce
|100% of clearing charges||100% of clearing charges||100% of clearing charges|
|Mode of Outward Remittance||Charges (excluding Transaction size||Charges (excluding service tax)|
at branch and doorstep banking
|Charges (excluding service tax)|
for mobile banking
|NEFT||Up to INR 10,000||INR 2.5 per transaction||NA|
|INR 10,000 – INR 1 Lakh||INR 5 per transaction||NA|
|IMPS||Upto 1 INR Lakh||INR 5 per transaction||INR 4 per transaction|
|AEPS||Upto INR 10,000 (max. limit)||Free||NA|
|UPI||Upto INR 1 Lakh (max. limit)||NA||INR 4 per transaction|
|*99#||Upto INR 5,000 (max. limit)||NA||INR 4 per transaction|
|The charges are subject to any regulatory changes|
that might be intimated from time to time.
|Doorstep banking charges|
|Doorstep Banking – On-boarding||Customer On- boarding||Free|
|Doorstep Banking – Cash|
|Cash Deposit and Withdrawal|
|For cash transactions|
|INR 2,001 : INR 15 per visit|
|INR 2001 – 5,000 : INR 25 per visit|
|INR 5,001 – 10,000 : INR 35 for per visit|
|Cash transactions above INR 10,000|
will not be offered at doorstep
|Doorstep Banking – Non-cash|
based Financial Transactions
|Remittance||INR 10 per visit|
|Doorstep Banking – Non-cash based|