This September, FinTech bug has bitten the India’s largest network, India Post who were delivering our posts for more than a century and has gone through a transformation in the digital banking era.
Yes, India post, from now on will be known for their Banking Services which will be called as India Post Payments Bank (IPPB). The Bank will use its country’s largest postal network to offer financial services to people across the country, including rural areas. This technically means that every Pincode in India will be enabled with a access point of IPPB.
The last mile connectivity will be amazing and every postman will be enabled with power to take the banking services to the door-step of the Indian citizens. Banking would never been this personal anywhere in the world.
Who is IPPB?
India Post Payments Bank – IPPB is a public sector company under the Department of Posts and the Ministry of Communication with a 100 per cent equity of the Government of India, and governed by the Reserve Bank of India (RBI)
What’s there for FinTech as a Industry? Because of this move.
Only next to Airtel and PayTm, IPPB is the 3rd Payments bank and will soon be the largest, Although Fino Payment bank and Aditya Birla Payment Bank have launched their services but has not started opening the accounts.
To know more about, What is payments bank, Click here.
Can they receive or accept deposits like any other bank?
Yes, IPPB as payments banks can accept deposits up to Rs 1 lakh per account (Max limit) from individuals and small businesses.
How many branches are they planning?
An Whooping 1.55 lakh post offices in the country will be eventually networed to offer the banking service.
How many branches have been enabled at Stage 1?
To start with, IPPB will enable 650 of their branches with this Banking service. Along with 3,250 access points and 11,000+ Gramin Dak Sevaks in rural areas. Apart from this, 1000s of post men will also provide door step services
What will happen to existing postal savings account?
These PSB accounts will be linked and converted into IPPB bank account (as per the willingness of the customer). However as only 1 Lakh can be moved to the new Payments account, any excess amount will be kept in PSB itself.
What are the other payment services will they provide?
IPPB will be equipped / integrated with Bharat Bill Payments System (BBPS) to accept payments for more than 100+ billers and utility services across India.
Is KYC (Know your customers) must?
Yes, Only after a customer fills in KYC he will be allowed to use the digital service.
How about Domestic Money transfer (DMR) services ?
IPPB will enable Money transfer and direct transfer thru beneficiary mode.
Online banking services:
IPPB is already enabled with
1. RTGS
2. NEFT
3. IMPS
The Highlights:
Self Onboarding
Paperless Banking
Zero Intitial deposit
Doorstep banking
Have they enabled Online banking facilties?
IPPB can be reached thru IPPB Online and they are yet to launch a Mobile app.
