Brief On IPPB (India Post Payments Bank)
§ The Prime
Minister launched India Post Payments Bank (IPPB) on September 1,
2018.
§ It is an
initiative of the government aimed at making banking services available
at people’s doorstep.
§ IPPB is a wholly-owned
subsidiary of Department of Post, with
100 percent Government of India equity.
§ It is a
payments bank of the Indian postal department which will work through a network
of post offices and nearly 3 lakh postmen.
§ IPPB’s Vision
1.
Building most accessible,
affordable and trusted bank for common man.
2.
Spearheading Financial
Inclusion- agenda for under-banked populace.
§ It will be
governed by Reserve Bank of India (RBI).
§ While its
services will be available to all citizens, the IPPB will primarily focus on
serving social sector beneficiaries, migrant labourers, un-organised sector,
Micro Small and Medium Enterprises (MSMEs), Panchayats, low-income households,
in rural areas and the unbanked and under-banked segments in
both the rural and urban areas.
§ IPPB will
offer services through a mix of physical and digital platforms.
§ Channels
for delivering services will include:
1.
Counter operations
2.
Micro ATMs
3.
Doorstep & mobile banking
§ It initially
have 650 branches and Rolled out in Phase 1 in 3,250 access points in post
offices across the country.
§ All the
1.55 lakh post offices in the country are linked to IPPB.
Functions of IPPB
§ It will
accept deposits, offer remittance services, mobile
banking and third-party fund transfers.
§ It offers
3 types of saving account:
1.
Regular Account – Safal,
2.
Basic Savings Bank Deposit Account
(BSBDA) – Sugam and
3.
BSBDA Small – Saral
Now it is
1. Regular Savings Account
2. Digital Savings Account
3. Basic Savings Account
4. Current Account
1. Regular
Savings Account
The Regular
Savings Account can be opened at the bank’s access points and your doorstep.
This account can be used to keep funds secure, withdraw cash, deposit money and
perform easy remittances, besides a host of other benefits. In addition,
interest can be earned on the money kept in this account and the cash
withdrawals allowed in this account are unlimited.
Key Account Features and Benefits:
- Banking at your convenience
- Instant and paperless account opening
using Aadhaar as per the applicable rules
- *Easy and convenient Non-eKYC account
opening
- Interest rate of 2.75% p.a. on
EOD daily balances, paid quarterly
- No monthly average balance required to
be maintained
- The account can be opened with zero
balance
- Free monthly e-statement
- Mini statement through SMS
- Simplified banking services through QR card
- Instant fund transfer through IMPS
- Easy bill payment and recharges
- Can be linked to POSA (Post Office
Savings Account)
Service
Charges / Fees for Regular Savings Account
Eligibility |
Anybody above 10 years with KYC |
Initial Minimum Deposit |
NIL |
Minimum Account Balance |
NIL |
Maximum End of Day Balance |
INR 1,00,000 |
Nomination Facility |
Available |
Linkage of POSA Account* |
YES |
Monthly Average Balance (MAB) |
NIL |
Non-maintenance charges on MAB |
NA |
Annual Interest Rate |
2.75% |
Interest Payment |
Quarterly |
SMS Alerts |
INR 10 Quarterly |
Account Statement |
Free Monthly e-statement** |
QR Card |
Free |
QR Card Reissuance |
INR 25 |
Setting of Standing Instruction Charges |
Free |
Account Closure Charges |
NIL |
Balance certificate per Instance |
INR 50 |
Card/ KIT returned due to wrong address |
INR 50 |
Bill Payments/ Re-charge |
Free |
Cash deposit charges |
Free |
Cash withdrawal charges |
Free |
ECS Return Charges (Financial Reason) |
INR 25 |
Notes :
1.
*POSA (Post Office Savings
Account)-In case customer have linked POSA account, amount above 1 lakh at the
end of the day will be transferred to Linked POSA account.
2.
**If customer updated his/her valid
email ID. On request Physical Statement @ INR 50
3.
The above charges are subject to
change. IPPB reserves the right to change the above charges as per its
discretion.
4.
For any services availed at doorstep,
doorstep charges will be applicable.
5.
All charges are exclusive of GST.
Domestic Remittances /Money
Transfer charges
- Charges
on Money Transfer:
First Money
Transfer Free: Up to INR 500 within 90 days of account opening.
Mode of Money
Transfer |
Transaction size |
Charges
at Access Point & Doorstep |
Charges for
Mobile Banking |
||
Savings Account |
Current Account |
Savings Account |
Current Account |
||
Intra Bank (IPPB account
to IPPB account) |
Free |
Free |
Free |
Free |
Free |
IMPS |
Up to 2,000 |
INR 10 |
INR 10 |
INR 05 |
INR 05 |
2,001-5,000 |
INR 20 |
INR 20 |
INR 05 |
INR 05 |
|
Above 5,000 |
INR 50 |
INR 50 |
INR 10 |
INR 10 |
|
NEFT |
Up to 10,000 |
INR 2.25 |
INR 2.25 |
NIL |
INR 2.25 |
10,001 to 1 Lakh |
INR 4.75 |
INR 4.75 |
NIL |
INR 4.75 |
|
1 Lakh to 2 Lakh |
INR 14.75 |
INR 14.75 |
NIL |
INR 9.75 |
|
Above 2 Lakh |
INR 24.75 |
INR 24.75 |
NIL |
INR 19.75 |
|
RTGS |
2 Lakh to 5 Lakh |
INR 24.50 |
INR 24.50 |
INR 24.50 |
INR 24.50 |
Above 5 Lakh |
INR 49.50 |
INR 49.50 |
INR 49.50 |
INR 49.50 |
- The
above charges are subject to change. IPPB reserves the right to change the
above charges as per its discretion.
- For
any services availed at doorstep, doorstep charges will be applicable.
- All
charges are exclusive of GST
Limits on Money Transfer -
IPPB Mobile Banking App
Savings Account |
|||
Payment System |
Minimum Amount |
Maximum Amount Per Transaction Limit |
Per Day Limit |
NEFT |
INR 1 |
INR 1,00,000 |
INR 1,00,000 |
RTGS |
INR 2,00,000 |
INR 5,00,000 |
INR 5,00,000 |
IMPS |
INR 5 |
INR 50,000 |
INR 2,00,000 |
Current Account |
|||
Payment
System |
Minimum
Amount |
Maximum
Amount Per Transaction Limit |
Per Day
Limit |
NEFT |
INR 1 |
INR 1,00,000 |
INR 2,00,000 |
IMPS |
INR 5 |
INR 50,000 |
INR 2,00,000 |
Limits on Money Transfer –
IPPB Assisted Mode
Payment System |
Minimum Amount |
Maximum Amount Per Transaction Limit |
Per Day Limit |
NEFT |
INR 1 |
No Limit |
No Limit |
RTGS |
INR
2,00,000 |
No Limit |
No Limit |
IMPS |
INR 5 |
INR
2,00,000 |
INR
2,00,000 |
|
|
|
|
Limits of Cash Deposit &
Cash Withdrawal at Access Points & Doorstep
|
Savings
Account |
Current
Account |
||
Cash Deposit |
Cash Withdrawal |
Cash Deposit |
Cash Withdrawal |
|
Head Post Office |
No Limit |
INR 20,000 |
No Limit |
INR 20,000 |
Sub Post Office |
No Limit |
INR 20,000 |
No Limit |
INR 20,000 |
Branch Post Office |
INR 5,000 |
INR 5,000 |
INR 20,000 |
INR 20,000 |
Gramin Dak Sevak/ Postman at Doorstep |
INR 5,000 |
INR 5,000 |
INR 20,000 |
INR 20,000 |
*Limits
are per customer per day
Payment System Timings
Payment System |
Days |
Timings |
Remarks |
NEFT |
All Days including Sunday and Bank Holidays |
24x7 |
|
RTGS |
Monday
to Saturday (Except 2nd and 4th Saturday and bank holidays) |
8:00
AM to 5:45 PM |
Transaction
through Branches - As per Branch working Hours |
IMPS |
All
Days including Sunday and Bank Holidays |
24x7 |
|
UPI(Assisted) |
All
Days including Sunday and Bank Holidays |
24x7 |
It
is meant for assisted mode only and cannot be initiated from IPPB Mobile
banking. |
Bill Payments: Free*
*Only Doorstep Banking Charges will be
applicable
1. For any services availed at
doorstep, doorstep charges will be applicable.
2. All charges are exclusive of
GST
2. Digital
Savings Account
For the
people who are tech savvy and comfortable with technology, IPPB’s Digital
Savings Account is the best way to onboard yourself through the IPPB Mobile
App. This app can be downloaded from the play store on your Android phone and
also available on app store for iPhone users. Anyone above the age of 18 years,
having Aadhaar and PAN card, can open this account. The account can be opened
instantly from the comfort of your home, which means banking anytime, anywhere.
Key Account Features and
Benefits
- Banking at your convenience
- Instant self on-boarding
- Interest rate of 2.75% p.a. on EOD daily
balances, paid quarterly
- No monthly average balance required to be
maintained
- The account can be opened with zero balance
- Free monthly e-statement
- Simple and instant fund transfer through
IMPS
- Easy
bill payments and recharges
3. Basic
Savings Account
This
savings account has all the features and benefits offered by the Regular
Savings Account (except that it allows only four cash withdrawals in a month). The aim of
the basic savings account is to provide primary banking services at a very
nominal charge.
Key Account Features and
Benefits
- Banking at your convenience
- Instant and paperless account opening using
Aadhaar as per the applicable rules
- *Easy and convenient Non-eKYC account
opening
- Interest rate of 2.75% p.a. on EOD daily
balances, paid quarterly
- No monthly average balance required to be
maintained
- The account can be opened with zero balance
- Free monthly e-statement
- Mini statement through SMS
- Simplified banking services through QR
card
- Instant fund transfer through IMPS
- Easy bill payment and recharges
- Can
be linked to a POSA (Post Office Savings Account)
Current Account
IPPB offers the facility of a Current Account to the small merchants/ kirana stores and individual businessmen. This account is a prerequisite for carrying out and expanding business. IPPB’s Current Account gets you started on the road to digital transactions for your business needs. Along with this, IPPB also offers a Merchant App for meeting business requirements. The current account can be opened at the Post Office Counters or at your doorstep through our Postman/GDS.
Key Account Features and
Benefits
- Banking at your convenience
- Instant account opening using Aadhaar
as per the applicable rules
- Nominal monthly average balance
required to be maintained
- The account can be opened with zero
balance
- Free monthly e-statement
- Mini statement through SMS
- Simplified banking services through QR card
- Instant fund transfer through IMPS
- Easy bill payments and recharges
§ The
maximum limit on deposits for current and savings account is Rs 1 lakh.
§ The bank
offers a 2.75 per cent interest rate on savings account but initially it was
offering 4.00 per cent.
§ They can
issue debit cards and ATM cards (as of now no such services available), but
they cannot issue credit cards and cannot loan money.
§ It will
provide social security payments like MNREGA wages, direct benefit transfer and
give access to third-party services insurance, mutual funds.
§ IPPB
account holders will be issued a QR Cards for unique account recognition.
What is Payment Bank?
§ Payments
banks were part of the Reserve Bank of India’s strategy of offering differentiated
banking licences.
§ A
committee headed by Dr. Nachiket Mor recommended setting
up of 'Payments Bank' to cater to the lower income groups and small businesses.
§ A payments
bank is a differentiated bank, offering a limited range of products.
§ It can
accept demand deposits only that is savings and current accounts, not time
deposits.
§ Payment
banks are restricted to holding a maximum balance of Rs. 100,000(Rupees one
lakh only) per individual customer.
§ Payment
Banks cannot accept Non-Resident Indian (NRI) deposits.
§ The
Payment Banks cannot set up subsidiaries to undertake non-banking financial
services activities.
Potential of IPPB
§ There are
currently about 50,000 bank branches in rural India. Whereas the Department of
Post alone has almost 1,30,000 service points in rural India – which if
converted into points of banking service, can extend presence of
banking services in rural India by 3.5 times.
§ It will
allow leveraging the trust which the India Post enjoys in the minds of the
public, coupled with the simple, affordable and convenient digital solutions.
§ A large
number of the 3,00,000 employees of the postal services would also be equipped
with biometric and handheld devices to provide doorstep banking services.
§ Due
to failure of rural banking in past years due to mounting
Non-Performing Assets (NPAs), banks are over-burdened with the task of recovery
of credit, rather than expansion if banking services – possible through IPPB.
§ Tapping of
savings of the rural people through IPPB may help increase per capita
income of rural people through domestic savings.
§ Money
lenders in rural areas try to exploit people under financial aid, IPPB will
help to reduce such exploitation and provide effective financial services.
Benefits of IPPB
§ Expansion
of Rural Banking- IPPB will help reinvigorate the
postal system, at the same time expanding Rural Banking through its wide
network of branches across India.
§ Access to
Diversified Services - Post
Office savings Bank (POSB) accounts linked to IPPB will allow lakhs
of POSB accounts access to banking thereby enabling them to enjoy internet
banking, mobile banking, electronic fund transfers, online bill payments,
digital payments etc. across the spectrum of banks 24×7. Facilities such
as third-party payment, insurance and mutual funds etc will provide financial
accessibility to diverse financial services.
§ Social
& Financial Inclusion - IPPB can act as a catalyst for
social and financial inclusion through the vast network of post offices
throughout the nation. Last mile delivery of services through the postman
- and ‘Grameen DakSewaks’ acting as Mobile bankers – providing "banking
at doorstep."
§ Push to
MSMEs - Rural MSMEs will benefit from financial services offered by IPPB.
§ Effective
DBT - IPPB will enable better penetration of schemes and better delivery
of benefits. Banking through IPPB would give a boost to Government’s
initiatives like promoting digital transactions and Direct Benefits Transfer
(DBT).
§ Employment
- IPPB will generate employment opportunity for more than 3500
banking professionals, who will be engaged in propagating financial literacy
across the country.
§ Credibility
- It will also not have to gain the trust of customers like its
competitors, especially in the rural areas, as the local postman is still an
integral part of the day-to-day lives of the rural populace.