India Post Payments Bank
India Post Payments Bank which is also called IPPB. It is an initiative by India’s honorable Prime Minister Mr. Narendra Modi. This India Post Payments Bank is initiated with the focus on providing banking and financial services to the rural areas.
Around 11000, postmen both in urban and rural areas will provide doorstep banking services. It is launched on Saturday 1st September 2018.
The India Post Payments Bank (IPPB), aims to change the banking system in the country. It will offer a range of product such as saving & current account, bill transaction, money transfers, and other services similar to the normal banking system.
What is India Post Payments Bank?
IPPB [India post payments bank], is a public sector company under the Department of post and ministry of communication, which aims to re-utilize India’s all over post offices which were not that active in past few years. In India, there are 155,015 post offices and with this recent India Post Payments Bank system, 300,000 postal services will be duly activating postal services to provide the house to house banking services.
In the initial phase, the first 650 branches and 3250 post offices access points launched on September 1st, 2018. Over the ten thousand postmen have been reported and roped into the first phase of India Post Payments Bank. With a 100 equity of the government of India, and governed by the RBI [Reserve Bank of India].
The function of India Post Payments Bank
Its main focus on providing banking and financial services to people in rural areas first, with linking all the 1.55 lakh post office branches which are nearly 2.5 times the bank network with India Post Payments Bank Services by the end of the year 2018
1. This initiative creates the country’s largest banking network with a direct presence at a village level. IPPB has been allowed to link around 17 crores postal saving bank account with this account.
2. India Post Payments Bank [IPPB] offers three types of saving accounts i.e. the Basic saving account, Regular saving account, and digital saving account. The interest rate for IPPB will be fixed 4% annually for all three types of accounts.
3. IPPB will be accepting deposits up to 1 lac per account from individuals and small businesses.
4. Facilitates money transfer to other bank accounts, and other services.