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Brief On IPPB (India Post Payments Bank)


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 servicesmobile 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                                    

  1. 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

 

  1. The above charges are subject to change. IPPB reserves the right to change the above charges as per its discretion.
  2. For any services availed at doorstep, doorstep charges will be applicable.
  3. 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.



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