The India Post Payments Bank (IPPB) was launched on 1 September 2018 with an aim to provide access to all-Indians to the banking system. The public sector entity takes advantage of its wide reach of post offices in India that will enable it to have at least one branch in every district. After seeking a license from the Reserve Bank of India, India Post launched its payments bank services and by December 2018 all 155,000 post offices are expected to be linked to the IPPB system.
The services IPPB will provide are:
- Savings accounts
- Current accounts
- Money transfer (RTGS, IMPS, and NEFT)
- Direct benefit transfer
- Utility bill payments
- Mobile recharges
- Enterprise and merchant payments
- Mutual funds
- Credit products
- Foreign exchange (forex)
These services can be availed through:
- Post offices (over-the-counter)
- Micro ATMs
- Mobile banking app
- Text messages
- Phone calls
How is IPPB different from regular banks?
Since it is a payments bank, its services are limited, unlike a full-fledged bank.
- It accepts deposits up to Rs 1 Lakh only (you can transfer the rest to a linked Post Office Savings Account).
- You cannot avail regular loans or credit cards from IPPB.
- You can avail doorstep banking services through a postman for Rs 15 to 35 per transaction. Transaction limit for doorstep banking is Rs 10,000.
- Gramin Dak Sewaks (postmen) will come to your house with cell phones and biometric devices to provide banking service.
Types of IPPB savings accounts:
Regular Savings Account
A Regular Savings Account can be opened at an IPPB branch's access point and your doorstep. Its features include:
- Unlimited money deposits
- Unlimited cash withdrawals
- Instant and paperless account opening
- Interest at the rate of 4 percent p.a. on end-of-the-day daily balance and it is paid quarterly
- No monthly average balance requirements
- Zero balance account opening
- Free quarterly account statement
- Mini statement through SMS
- Simplified banking services through QR card
- Instant fund transfer through IMPS
- Easy bill payment and recharges (at your doorstep)
- Can be linked to POSA (Post Office Savings Account) to move above Rs 1 lakh balance at the end of the day to POSA
- Nominal bank service charges
Digital Savings Account
A Digital Savings Account allows anytime-anywhere banking services at the convenience of your home. It can be opened using IPPB's mobile banking app on your Android phone. Read: How to Open Post Office Digital Savings Account Using IPPB Mobile App?
Its features include:
- Instant account opening from anywhere
- Calculates interest rate of 4 percent p.a. on end-of-the-day daily balance and it is paid quarterly
- No requirement of monthly average balance to be maintained
- The account can be opened with zero balance
- Free quarterly account statement
- Simple and instant fund transfer through IMPS
- Can make bill payments and recharges using the app
- A maximum yearly cumulative deposit of Rs. 2 lakhs is allowed in the account
- Account holders have to be above 18 years of age
- KYC formalities have to be completed within 12 months of opening account; The account is subject to closure on failure to comply
- KYC formalities can be done by visiting any of the access points or with the help of the GDS/Postman, after which the Digital Savings Account will be upgraded to a Regular Savings Account
- The account can be linked to a POSA (Post Office Savings Account) after completion of KYC within 12 months
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. Its additional features include:
- Free account opening at your doorstep
- Assisted services through the GDS, as and when required
- Four cash withdrawals allowed in a month
- Availability of funds at your doorstep, upon request
- Bill payment facility at your doorstep
- Simple and secure banking with QR card
- Multilingual customer support
- No commitment of minimum balance
- Nominal service charges