All you need to know about India Post Payments Bank
India's biggest bank in the making
India Post will launch its long-awaited payments bank by launching 650 branches across the country today, making it the fourth such entity to start operations. The India Post Payments Bank will be launched by Prime Minister Narendra Modi.
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What is IPPB?
The India Post Payments Bank is a public sector company under the department of posts and ministry of communication where the Indian government holds 100 per cent equity. The payments bank will be governed by Reserve Bank of India. All the 1.55 lakh post offices in the country will be linked to the IPPB system by December 31, 2018. Suresh Sethi is the managing director and chief executive of IPPB.
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What will it do?
IPPB will offer a range of products such as savings and current accounts, money transfer, direct benefit transfers, bill and utility payments, and enterprise and merchant payments. These products, and related services, will be offered across multiple channels (counter services, micro-ATM, mobile banking app, SMS and IVR), using the bank's state-of-the-art technology platform. The plan is to use all of India Post’s 1.55 lakh access points by December 2018 to provide the service.
The IPPB will not offer any ATM debit card. Instead, it will provide its customers a QR Code-based biometric card. It has already tied up with PNB Metlife and Bajaj Allianz to sell insurance products and hopes to enter into more financial service partnerships.
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Cabinet increases spending
Earlier this week, the cabinet had approved 80 per cent increase in spending for IPPB to Rs 1,435 crore, a move that will arm it with additional ammunition to compete aggressively with existing players like Airtel Payments Bank and Paytm Payments Bank.
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About India Post
India Post has 1.55 lakh offices across the country, nearly 2.5 times the bank network. It already has 17 crore post office savings bank accounts, some of which it hopes will move to the payments bank.
