Prime Minister Narendra Modi will today launch the India Post Payments Bank (IPPB). The IPPB is an extension of the Jan Dhan Yojana.
Through the payments banks, Modi govt aims to enhance financial inclusion by providing small savings accounts and payments/remittance services to migrant labour workforce, low-income households, small businesses and workers in other un-organised sector.
5 things to know about the upcoming India Post Payments Bank
1. Earlier this week, the Modi cabinet had approved 80% increase in spending for IPPB to Rs.1,435 crore. This decision will uplift the payments bank to compete aggressively with existing players like Airtel Payments Bank and Paytm Payments Bank.
2. The payments bank, where the Indian government holds 100 per cent equity, will leverage the vast network of the Department of Posts (DoP) that has more than three lakh postmen and Grameen Dak Sewaks. All the 1.55 lakh post offices in the country will be linked to the IPPB system by December 31, 2018.
3. IPPB shall provide range of products, from savings and current accounts to money transfer, direct benefit transfers, bill and utility payments. Moreover, it will be also equipped with enterprise and merchant payments.
4. India Post Payments Bank will also offer RTGS, IMPS and NEFT services for transfer of funds.
5. India Post Payments Bank will offer three types of savings accounts: Regular savings account, Digital savings account and Basic savings account. Interest rates on all three types of savings accounts are fixed at 4 per cent per annum, stated ippbonline.com, the official website of India Post.
6. India Post Payments Bank also provides the facility of SMS banking so that customers can quickly access the account details on their mobile phones, by sending an SMS to the IPPB’s SMS Banking number 7738062873. Its phone banking services can be availed by customers by dialling their customer care number at 155299.