What are payments banks?

Payments banks can accept deposits restricted up to Rs 1 lakh per account (at present) from individuals and small businesses. It caters to the banking requirements of individuals and small businesses with its savings and current accounts facilities. These banks cannot issue loans or credit cards but the users are provided with other services like a debit card, net banking, acceptance of demand deposits, remittance services, and other specified services.

Beta testing

The PTI report stated that IPPB has started testing within closed user groups at a national level in around 250 branches. Once IPPB goes live, services will be available in 650 branches in addition to 3,250 access points co-located at post offices and around 11,000 gramin dak sevaks (in the rural area) and postmen (in urban area) that will provide doorstep banking services.

It has permission to link around 17 crore postal savings bank (PSB) account with its account and approval to carry out RTGS, NEFT, IMPS transactions. All 1.55 lakh post offices in the country will be gradually linked.

IPPB mobile app

Using its mobile app, customers will be able to access the IPPB account but with limited services. To use all the banking services, the customer will have to complete all KYC requirements. Along with online banking service, payment for various utilities and services like phone bill, DTH, gas connection, electricity etc. will be accessible to customers.

All the billers that accept payment through Bharat Bill Payments system will be available for IPPB customers from Day 1 of the launch.