India Post Payments Bank IPPB www.deekpay.com

India Post Payments Bank

India Post Payments Bank (IPPB) is a division of India Post and comes under the Department of Posts under the Ministry of Communications, Government of India. The bank opened in 2018 and as of March 2024, has over 90 million customers.

IPPB is a wholly owned payments bank, part of the Indian Postal Service, in which the Government of India owns 100%, operating through a network of post offices and nearly 300,000 postmen.

With a vision to create the most affordable, convenient and trustworthy bank for the common man and to drive the financial inclusion agenda for the under-banked, India Post Payments Bank will be led by theReserve Bank of IndiaManagement.

While the services of India Post Payments Bank (IPPB) are available to all Indian citizens, the primary focus of IPPB is to serve low-income households, beneficiaries in the social sector, the informal sector, migrant labourers, micro, small and medium enterprises (MSMEs) (Micro and Medium Enterprises) and Panchayats in the rural areas, as well as the under-banked and un-banked segments of the population in both urban and rural areas.

IPPB delivers its services through a combination of physical and digital platforms. The channels used to deliver IPPB services include:

Door-to-door banking, mobile banking and online banking. Counter operations. Prepaid tools such as PoS, mobile wallets, MPoS, etc. ATM/Micro ATM.

IPPB's target market

Currently, there are about 50,000 bank branches in rural India and the Department of Posts alone has close to 1,30,000 service points in rural India, which, if converted into banking service points, could expand the reach of IPPB banking services in rural India by 3.5 times.

Combined with a convenient, simple and affordable digital solution, IPPB intends to capitalise on the public's trust in India Post.

Providing doorstep banking services to 3,00,000 employees of the Indian Postal Service with biometric and handheld devices.

IPPB can help raise rural per capita income through domestic savings by tapping into the savings of the rural population.

IPPB will reduce the exploitation of rural people by moneylenders and provide effective financial services.

Expansion of rural banking services has become difficult due to increasing pressure on non-performing assets and banks have to take up heavy credit recovery tasks.IPPB will alleviate this pressure and ease the expansion of banking services.

India Post Payments Banking Services

IPPB is like any other bank, but on a much smaller scale. However, it does not involve any credit risk. All that is required is the user's Aadhar Details such as number and KYC verification will enable you to open an account with IPPB through the India Post Payments Bank App (IPPB App).

One of the most distinctive features of India Post Payments Bank IPPB is its doorstep banking services. Through this model, banking services have the potential to reach the doorstep of every Indian citizen.

IPPB Application Services

Door-to-door banking facilities offer a range of services, including account opening, cash deposits and withdrawals, money transfers, top-ups and bill payments, and third-party services (such as insurance, loans, investments and other account-related services). Account-related services include updating PAN and nomination details, requesting account statements and issuing standing instructions. The IPPB application will also provide RTGS, andIMPS respond in singing NEFT Services to transfer funds. IPPB offers three types of savings accounts: general, digital and basic. There are no charges for withdrawals from IPPB ATMs or PNB ATMs due to the partnership with Punjab National Bank. The bank will offer an interest rate of 4% on all savings accounts. It also offers foreign exchange services at lower charges. Unlike most banks, there is no need to maintain a minimum quarterly average balance. There is no fee for not having a minimum account balance. IPPB also offers a QR code card service to help people access their bank accounts and make transactions without having to remember their account numbers. With the QR code card, all transactions can be authenticated through biometric verification. India Post Payments Bank offers free debit cards with an annual maintenance fee of Rs 100 from the second year onwards. Utilising the post office network and the services of over 300,000 postmen, IPPB can reach out to customers without the need for traditional bank branches. IPPB offers third-party products such as loans and insurance through other banks or companies with which it works. In the absence of traditional bank branches, IPPB aims to reach out to its customers through mobile phones. This is why it has the opportunity to thrive among the tech-savvy and tech-savvy population. IPPB will encourage anyone above 18 years of age to open a digital savings account using their Aadhar and PAN cards. KYC formalities for such accounts must be completed within 12 months.

Challenges for IPPB

Considering the sheer size of India Post Payments Bank (IPPB), it is bound to face a number of challenges, and these are not just initial difficulties. Burdened with the legacy of India Post, it will take some time for IPPB to fully realise its capabilities. In FY 2016-17, India Post had a revenue deficit of Rs 11,969/- million. In FY 2015-16, India Post had a revenue deficit of Rs. 6,007/- million. Thus, the revenue deficit in 2016-17 is almost double that of FY 2015-16. As per Reserve Bank of India regulations, all payment banks are required to invest 75% of their total demand deposits in government-linked securities and treasury bills, which makes it difficult for IPPBs to make a profit. Another challenge is the lack of technological infrastructure in India's most remote rural areas. However, the government is confident that it will be able to overcome these obstacles and that IPPB will be a successful project. The launch of IPPB marks a significant shift in India's banking landscape - opening the door to unlimited banking possibilities in rural India. However, this massive government programme does have a number of hurdles to overcome, which appear to be more than just initial difficulties. Another major challenge facing the India Post Payments Bank (IPPB) is its infrastructure. The biggest challenge is in remote rural areas. With the plan to turn postmen into mobile banks, it seems difficult to realise this in areas where power and internet connectivity are problematic. Since the post offices of 90% are located in rural areas, this is a challenge that needs urgent attention.

Features of India Post Payments Bank

India Post Payments Bank (IPPB) is a non-full service bank that has recently been merged into the Ministry of Posts as a public company with an equity stake of 100% in the Government of India.IPPB Bank's objective is to accelerate financial inclusion. They do not lend to customers and have to deposit funds in government documents and bank deposits. They can accept demand deposits and issue ATM or debit cards but cannot issue credit cards. They can conduct payment and remittance services through various channels and accept demand deposits. They can also provide card acceptance mechanisms to third parties, such as "Apple Pay".

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