- 1 Concept of India Post Payments Bank
- 1.1 What is Payments Bank
- 1.2 What is the requirement of India Post Payments Bank
- 1.3 What is the scope and activities of the Payments Bank?
- 1.4 Are there any restrictions on payments banks as compared to other commercial banks?
- 1.5 Has this model of Post office set up a bank worked anyplace else on the planet?
- 1.6 Why is DoP setting-up a Payments bank?
- 1.7 What is the GOI’s attitude toward DoP’s attack into managing an account?
- 1.8 How will set up the payments bank advantage DoP?
- 1.9 What will be the part and relationship of DoP with the proposed India Post Payments Bank?
- 1.10 When will India Post Payments Bank (IPPB) begin operations?
- 1.11 What number of branches are probably going to be opened?
- 1.12 What will be the USP for India Post Payments Bank?
- 1.13 How will IPPB representatives be selected? What are the different systems through which they get chosen?
- 1.14 By what means will India Post Payments Bank work?
- 1.15 How will the items and administrations of India Post Payments Bank be unique in relation to DoP’s payments and settlement items?
- 1.16 Will there be an effect on POSB?
- 1.17 By what method will IPPB enhance payment of sponsorship?
- 1.18 Will’s identity the objective client of IPPB?
- 1.19 In what manner will the client pick between the investment account of POSB and IPPB?
At IPPB (India Post Payments Bank), banking services come with a plethora of advantage. Here is the list of what you can expect immediately, and in the near future when you open an account with IPPB. Please check with your local branch on the availability of these features.
- Hassle free onboarding using E-KYC.
- No minimum quarterly average balance requirement.
- Nominal initial deposit required to open an account.
- Free first debit card for all.
- Annualised interest rate of 5.5%.
- Easy access.
- Multiple channels branch, access points, Doorstep, Mobile banking (UPI & Mobile Banking).
- Free cash withdrawal at India Post ATMs and Punjab National Bank ATMs
- Multiple electronic modes available – AEPS, IMPS, NEFT, UPI & *99#.
- Instant remittance IMPS, UPI & *99#.
- Aadhar and Bio-metric based remittances through Micro ATMs.
- All intrabank (i.e IPPB to IPPB) remittances free.
- 2 interbank remittances free per month (for safal account)
Direct Benefits Transfer
- Timely direct benefit transfer into the saving account.
- Aadhar bases DBT.
- Doorstep banking.
- Banking at your doorstep through postmen / Gramin Dak Sevaks.
- Nominal charges.
- Multiple transactions possible-cash withdrawal & deposit, Aadhar bases fund transfer, balance inquiry, mini statement
For terms and condition related to services offered by India Post Payments Bank. Please visit www.ippbonline.net
Concept of India Post Payments Bank
What is Payments Bank
A Payments Bank is a “separated bank” set-up under the rules issued on Nov 27, 2014 by the Reserve Bank of India (RBI) to advance money related consideration for the underserved populace by giving (I) current and investment accounts and (ii) instalments or settlement administrations to vagrant work workforce, low pay family units, private companies, chaotic part elements and different clients. This is to be finished by empowering high volume-low esteem exchanges in stores and installments or settlement benefits in a safe innovation-driven condition.
What is the requirement of India Post Payments Bank
A vast majority of the rural population (over 60%, as per RBI), is still UN-banked or under-banked. An easily accessible payments network and universal access to savings are fundamental to financial inclusion. At the same time, several non-banking entities such as the Department of Posts (DoP), prepaid payment instrument companies, business correspondent companies, etc., have had reasonable success in facilitating payments and other select financial services in urban areas. Their customers, however, face several limitations and difficulties arising out of their non-banking status.
Given their potential to further the cause of financial inclusion, the RBI granted such entities a differentiated banking license, i.e. a payments bank license, which enables these entities to provide banking services other than credit. Credit and insurance are as integral to financial inclusion as are other banking services, and payments bank can offer these products as well but only in partnership with other banks/ insurers and on a non-risk sharing basis.
What is the scope and activities of the Payments Bank?
As per the RBI Guidelines, the instalments bank will be set up as a separated bank and might be allowed to set up its own outlets, for example, branches, Automated Teller Machines (ATMs), Business Correspondents (BCs), and so forth to embrace just certain limited exercises allowed to banks under the Banking Regulation Act, 1949,
as given underneath:
- Acceptance of interest stores, i.e., current stores, and investment funds bank stores from people, private companies and different elements, as allowed. The installments bank will be confined to holding a greatest adjust of Rs. 1,00,000 for each individual client.
- Issuance of ATM/Debit Cards. Instalments banks, in any case, can’t issue Mastercards.
- Payments and settlement benefit through different channels including branches, Automated Teller Machines (ATMs), Business Correspondents (BCs) and versatile managing an account.
- Issuance of PPIs according to directions issued every once in a while under the PSS Act.
- Internet and portable keeping the money – The installments bank is required to use innovation to offer minimal effort saving money arrangements.
- Functioning as Business Correspondent (BC) of another bank – an installments bank may turn into a BC of another bank, subject to the RBI rules on BCs.
- As a channel, the installments bank can acknowledge settlements to be sent to or get settlements from various banks under an installment system affirmed by RBI, for example, RTGS/NEFT/IMPS.
- Payments banks will be allowed to deal with cross fringe settlement exchanges in the idea of individual installments or settlements on the present record.
- Payments banks can embrace other non-chance sharing basic money-related administrations exercises, not requiring any dedication of their own assets, for example, circulation of common store units, protection items, annuity items, and so forth with the earlier endorsement of the RBI and subsequent to conforming to the necessities of the sectoral controller for such items.
- The installments bank may attempt service charge installments and so on in the interest of its clients and overall population.
Are there any restrictions on payments banks as compared to other commercial banks?
Given that their essential part is to give instalments and settlement administrations and request store items to independent ventures and low-pay family units, instalments bank will at first be limited to holding a most extreme adjust of Rs. 1,00,000 for each individual client.
Payments banks can’t issue Visas and can’t allow Loan/credit out of their own books of records.
Aside from sums kept up as Cash save proportion (CRR) with RBI, Payments Bank will be required to contribute least 75 percent of its request store adjusts in Government securities/treasury bills with development up to one year and hold most extreme 25 percent in present and settled stores with other booked business banks for operational purposes and liquidity administration.
The Payments bank can’t set up auxiliaries to attempt non-managing an account money related administrations exercises. The other monetary and non-budgetary administrations exercises of the promoters, assuming any, ought to be kept particularly ring-fenced and not mixed together with the keeping money and budgetary administrations business of the Payments bank.
The Payments bank will be required to utilize the words “Payments Bank” in its name with a specific end goal to separate it from different banks.
Has this model of Post office set up a bank worked anyplace else on the planet?
Postal administrators are the main monetary administration’s suppliers in more than 75% of the nations around the globe. A portion of the Post Banks on the planet has been exceedingly fruitful, i.e. Japan, New Zealand, Switzerland, France, China, South Korea, South Africa, Morocco to give some examples.
Department of Post
Why is DoP setting-up a Payments bank?
DoP has been effectively running the Post Office Savings Bank for the Ministry of Finance. Setting up its freely claimed bank is the following consistent movement. In view of plausibility examines and a consequent Detailed Project Report, the Department, in 2013, influenced an application to the RBI and a proposition to the Public Investment To board (PIB) to set up an all-inclusive bank. Be that as it may, the Department was prompted by the PIB to set up a “separated bank” under the pertinent rules. As needs are the point at which the RBI thought of the rules for reauthorizing of Payments Banks in November 2014, the Department of Posts made an application for the same and got them on a basic level endorsement in September 2015 for setting up its Payments bank.
The setting up of the Payments bank is along these lines vital in perspective of current market substances and to guarantee proceeded with the significance of DoP’s items and administrations. In addition to other things, the choice to set up the Payments banks comes in the wake of changes in the managing an account and payment scene in the nation. The payment bank will guarantee that the managing an account and payments administrations offered through the postal system are all around incorporated and totally interoperable with whatever remains of the saving money and payments biological community and will use new age innovation in accordance with entering mechanical advances in the saving money division, for example, brought together payments interface (UPI).
What is the GOI’s attitude toward DoP’s attack into managing an account?
In the Union Budget of 2015-16, the Honorable Finance Minister made the accompanying declaration:
“The Government is focused on expanding access to the general population to the formal monetary framework. In this specific situation, Government proposes to use the immense Postal system with about 1, 54,000 purposes of essence spread over the towns of the nation. I trust that the Postal Department will make its proposed Payments Bank wander effective with the goal that it contributes further to the Pradhan Mantri Jan Dhan Yojana.”
In his Independence Day discourse at the Red Fort, on fifteenth August 2016, the Hon’ble Prime Minister Shri Narendra Modi talked about IPPB:
“The Post Office is a case of our character. We have resuscitated and restored our post workplaces. IT is currently connected with poor people and little people. In the event that any administration delegate gets the love of a typical man in India, it is the postman. Everybody adores the postman and the postman additionally cherishes everyone, except we never focused towards them. We have made a move to change over our post workplaces into payments banks. Beginning with this, the payments bank will spread the chain of banks in the towns the nation over in one go”
How will set up the payments bank advantage DoP?
The payments bank won’t just drive incomes for DoP yet additionally help in keeping up DoP’s image picture and importance in the current money related scene that is developing quickly. For e.g. Service charge payments administrations of the India Post Payments Bank as a Bharat Bill Payment Operating Unit (BBPOU) will enable DoP in expanding its market to partake in the service charge payments space and give innovation-driven administrations to clients. New age innovation will upgrade client encounter, give more alternatives and help in serving the bigger reason and vision of the GOI i.e. to achieve money related consideration for the tremendous UN-banked and underserved populace.
What will be the part and relationship of DoP with the proposed India Post Payments Bank?
The India Payment Payments bank will be 100% claimed by the Government of India by means of DoP, and will have a free top managerial staff with portrayal from DoP and different partners from inside the Government of India to guarantee key arrangement with the general goals of the DoP and the Government of India.
The post workplaces at various levels will be the fundamental client touch focuses for the bank’s administrations. A nearby contact between the bank and DoP staff at the entrance focuses will be kept up all the time at the branch level for achievement of the conveyance demonstrate
India Post Payment Bank (IPPB)
When will India Post Payments Bank (IPPB) begin operations?
India Post Payments Bank is required to begin operations in FY 2017-18
What number of branches are probably going to be opened?
India Post Payments Bank is slated to have 650 branches at locale home office. All post workplaces the nation over will work as client get to focuses for IPPB.
What will be the USP for India Post Payments Bank?
The most recent Payments and saving money innovation, simple to utilize interface, the put stock in the system of the mail station and its devoted staff with a neighborhood association will be the USP of the IPPB. India Post Payments Bank will acquire imaginative administrations and interface for its objective client portions in all regions. The openness and usability of administrations through a mix of present-day innovation. and, the far-reaching DoP physical system, equipped for giving entryway step administrations will make it a one of a kind payments bank. Through a mix of physical and computerized channels, payments bank will manufacture the most open bank in the nation particularly in rustic and underserved ranges of the nation.
How will IPPB representatives be selected? What are the different systems through which they get chosen?
Different choices with respect to the enrolment and choice of IPPB representatives have been considered. These incorporate assignment from DoP or other open segment banks, coordinate enrolment through IBPS, authoritative courses of action for certain talented staff positions and so forth.
DoP’s part in IPPB
By what means will India Post Payments Bank work?
India Post Payments Bank has been set up as a Public Limited Company under the Department of Posts with a free Board of Directors. It will be going by a Managing Director and CEO, and will set up a corporate head quarter and approx. 650 branches to deal with its capacities on an everyday premise. India Post Payments Bank will use the physical and IT foundation of the Post office and be set up on a lean working model. It will concentrate on minimal effort, generally safe, innovation drove answers for stretch out access to formal keeping money.
Items and Services
How will the items and administrations of India Post Payments Bank be unique in relation to DoP’s payments and settlement items?
DoP payments and settlements items depend on the fundamental cash arrange administrations adjusted for the advanced age. While IPPB will give similar advantages of payments and settlements to the clients, by embracing more current, effective procedures and advances, for example, versatile based payments, computerized wallets and inventive payments and settlement items that are constantly rising in the market today. Joined with doorstep keeping money exchanges and simple to utilize portable and web saving money choices India Post Payments Bank will fundamentally enhance the openness of its administrations. Furthermore, IPPB items will be very much incorporated and between operable with whatever remains of the managing an accounting industry.
India Post Payments Bank will drive the advantages of money related consideration by conveying a large group of budgetary items to suit the requirements of various strata of society with unique concentrate on the underestimated segments and natives in country zones.
Item development will be a ceaseless exercise to grow the bundle of administrations adjusting to the developing needs of its client’s innovations and the fast progressions in correspondence and payments.
Will there be an effect on POSB?
Aside from bank account with up to INR 1,00,000 in store, the items offered by IPPB are not quite the same as POSB items. POSB investment accounts don’t have any roof restrain dissimilar to payments bank account. Then again payments banks can offer current records for use by organizations and establishments through POSB does not offer these records. Different sorts of stores under POSB are special to it and won’t be on offered by the payments bank. POSB accounts are basically investment funds instruments.
Basically, put while POSB is more focused on comes back from little investment funds, IPPB will be focused on exchanges.
In this way there will be an innate cooperative energy between the two and each will supplement the other.
By what method will IPPB enhance payment of sponsorship?
IPPB is being set up by the GoI with an essential concentration of enhancing, the Direct Benefit Transfer of different sponsorships. IPPB will give a powerful innovation stage to DBT payment and fabricate a solid revealing component. By diverting a larger part of sponsorship distributions through its consolidated system, DoP-IPPB join will essentially build its present piece of the overall industry.
Will’s identity the objective client of IPPB?
Aside from the current clients of the DoP, IPPB will concentrate on the under-banked and UN-banked populace in various parts of the nation. It will likewise endeavour to target administrations for MSMEs, senior nationals, understudies, transient populace, low pay family units, disorderly area and different gatherings with uncommon administration necessities.
In what manner will the client pick between the investment account of POSB and IPPB?
Both POSB and IPPB, will have diverse marking, and the item highlights will be very extraordinary. at time of joining, clients will be unmistakably told what the item includes are, and clients will have their preferred capacity to pick the result.
Given the distinction in the reason for the two records, the POSB clients can be urged to open an IPPB represent dealing with their store stream including charge payments, settlements to other relatives, organizations and so on relying upon their necessities. Clients concentrating on reserve funds may like to have their stores with POSB and execute through their IPPB account as per requirements.