After receiving clearance from the Reserve Bank of India (RBI), the India Post Payments Bank (IPPB) will be able to start its operations with an expected 650 branches and around 17 crore accounts in the month of August, according to a PTI report. It also said that a permission for the approval of the IPPB was received from the RBI after testing its entire system, but the final approval for the launch of IPPB is pending.
Citing sources from the communications ministry it also said the launch is expected in August, however, the dates were not specified.
IPPB was the third entity to receive payments bank permit after Airtel and PayTm. It was incorporated on August 17, 2016, under Companies Act, 2013 as a public limited company with 100 percent Government of India equity under Department of Posts.
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.
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.