India Post Payments Bank is Now Official: 4% Interest Rate, Doorstep Banking Services and More

After a long wait, Prime Minister Narendra Modi has finally launched the India Post Payments Bank (IPBB) with which the government is aiming to take banking to the doorstep of every citizen with the help of three lakh postmen and Grameen Dak Sewaks. These Grameen Dak Sewaks and postmen will be empowering digital financial services to the citizens. According to the information made available, IPBB will offer services through 650 branches, and 3,250 access points post the launch. However, the government has promised that the operations will be scaled to all 1.55 lakh post offices across the country by December 2018. In short, IPBB operates like any other bank, although with a smaller scale of operations without any credit risk. IPBB will offer 4% internet rate on savings account, doorstep banking services and more.

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Image: PTI

India Post Payments Bank Details

Firstly, the India Post Payments Bank will accept deposits of up to Rs 1 lakh along with remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third-party fund transfers. However, it can’t offer loans directly or issue credit cards. Launching the service, Prime Minister Narendra Modi said with e-mails taking over inland letters, many thought technologies had threatened the existence of the postal department and that postmen would lose their livelihood.

IPPB will leverage tech platforms, to the hilt as it will use Aadhaar to open accounts, while a QR card and biometrics will drive authentication, transactions, and payments. Grameen Dak Sewaks will be armed with smartphones and biometric devices to handle transactions. Communications Minister Manoj Sinha said deposits in any account that exceed Rs 1 lakh would be automatically converted into post office savings account.