The government on rolled out payments bank of the Indian postal department, in a bid to take banking to the doorsteps of its citizens.
10 things to know about #IndianPostPaymentBank
10 things to know about #IndianPostPaymentBank
1 The institute will operate like a banking organisation, but with smaller scale operations. Most banking operations like accepting deposits shall be done, but they cannot give loans or issue credit cards.
2 As per guidelines laid out by Reserve Bank of India, it can accept deposits of up to Rs 1 lakh per customer, offer payments and remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third-party fund transfers.
3 The bank will offer 4 percent interest rate on savings accounts. It has also tied up with PNB and Bajaj Allianz Life Insurance for products such as loans as well as insurance.
4.These facilities can be accessed through 650 branches &3,250 access points.
5.Around 1.30 lakh access points will be located in rural areas, which hopes to fulfil financial inclusion goal. IPPB also has nod to link around 17cr postal savings bank accounts with its own set-up.
5.Around 1.30 lakh access points will be located in rural areas, which hopes to fulfil financial inclusion goal. IPPB also has nod to link around 17cr postal savings bank accounts with its own set-up.
6 Deposits in any account that exceed Rs 1 lakh will be automatically converted into post office savings account
7 Use of technology: The payments bank will be using Aadhaar to open accounts, while a QR card and biometrics will drive authentication, transactions, and payments. Postmen will be armed with biometric devices as well.
8 Ownership of the bank is solely with the government and is functioning under Department of Posts. It will offer products and services through channels such as counter services, micro ATMs, apps, messages and interactive voice response.
9 According to RBI, the objectives of setting up of payments banks will be to further financial inclusion by providing (i) small savings accounts and (ii) payments/remittance services to migrant labour workforce, low income households, small businesses, other unorganised sector
10 In a bid to take on competing entities such as Airtel and Paytm Payments Bank, the Cabinet gave a nod to 80 percent hike in spending on IPPB to Rs 1,435 crore. This, it said, will arm it with additional ammo to compete in the market.
