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“.

India Post Payments Bank launched, starts pilot branches at Raipur and Ranchi

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

AccountRegular Savings Account
– Safal Account
Basic Savings Bank
Deposit Account (BSBDA)

– Sugam Account
BSBDA-Small Account
– Saral Account
 Account opening
EligibilityAnybody 10 years and above with KYCAnybody 10 years and above with KYCAnybody 10 years and above with KYC
Initial minimum deposit requirementINR 100INR 100INR 100
Minimum account balanceNilNilNil
Maximum balanceINR 1,00,000INR 1,00,000INR 50,000
Nomination facilityAvailableAvailableAvailable
ATM/ Debit CardFreeFreeFree
Subsequent cardsINR 100INR 100INR 100
Annual maintenance charges
(from 2nd Year)
PIN regeneration through
INR 50INR 50INR 50
 Servicing / Transactions
Minimum Quarterly Average
Balance (QAB)
Annual Interest Rate   
If QAB is upto and
including INR 25,000
4.50 percent4.50 percent4.50 percent
If QAB is above INR 25,000
and upto and including INR 50000
5.00 percent5.00 percent5.00 percent
If QAB is above INR 50,0005.50 percent5.50 percent5.50 percent
Quarterly Non maintenance
Interest paymentQuarterlyQuarterlyQuarterly
Mobile AlertsFreeFreeFree
Monthly Account statement
(including duplicate statements)
Doorstep bankingINR 15-35INR 15-35INR 15-35
Interbank remittances charges
(IPPB Intrabank remittance is free)
2 remittances free per monthChared per remittanceChared per remittance
Branch banking   
Free monthly customer induced transactions.
Subsequently @ INR 20 per transaction at branch
and Customer Service Points
4 Free4 Free4 Free
Charge frequencyMonthlyMonthlyMonthly
ATM monthly transactions   
At IndiaPost ATMsAll freeAll freeAll free
At Punjab National Bank’s ATMsAll freeAll freeAll free
At other bank’s ATMs: Metro3 txns.free3 txns.free3 txns.free
At other bank’s ATMs: Non- Metro5 txns.free5 txns.free5 txns.free
Additional transactions at
Other Bank’s ATMs
Financial: INR 20Financial: INR 20Financial: INR 20
Non-financial: INR 8Non-financial: INR 8Non-financial: INR 8
Maximum ATM withdrawal per
INR 10,000INR 10,000INR 10,000
Maximum ATM withdrawal per dayINR 25,000INR 25,000INR 25,000
Maximum cumulative spend at POS outlets
and ecommerce sites per day
INR 65,000INR 65,000INR 65,000
Standing Instruction Charges
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 250INR 250INR 250
Balance certificate per
ATM card/ KIT returned due
to wrong address
INR 100INR 100INR 100
Charges to be recovered from IPPB
customer in case of cheque bounce
100% of clearing charges100% of clearing charges100% of clearing charges
Remittances charges   
Mode of  Outward RemittanceCharges (excluding Transaction sizeCharges (excluding service tax)
at branch and doorstep banking
Charges (excluding service tax)
for mobile banking
NEFTUp to INR 10,000INR 2.5 per transactionNA
INR 10,000 – INR 1 LakhINR 5 per transactionNA
IMPSUpto 1 INR LakhINR 5 per transactionINR 4 per transaction
AEPSUpto INR 10,000 (max. limit)FreeNA
UPIUpto INR 1 Lakh (max. limit)NAINR 4 per transaction
*99#Upto INR 5,000 (max. limit)NAINR 4 per transaction
The charges are subject to any regulatory changes
that might be intimated from time to time.
Doorstep banking charges   
Service Charges (INR) 
Doorstep Banking – On-boardingCustomer On- boardingFree 
Doorstep Banking – Cash
based transactions
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
RemittanceINR 10 per visit 
Doorstep Banking – Non-cash based
Non-Financial Transactions
Balance EnquiryFree 
 Mini StatementFree 

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