India Post Payments Bank (IPPB) on Monday kicked off its operations by rolling out pilot services in Raipur and Ranchi. It will offer an interest rate of 4.5 per cent on deposits up to ₹25,000; 5 per cent on deposits of ₹25,000-50,000 and 5.5 per cent on ₹50,000-1 lakh.
“This is the first (after Paytm and Airtel) – governmental organisation to start the payment bank. The main objective of IPPB will be public service rather than promoting commercial interests. We will work towards that goal,” Manoj Sinha, Minister of State (Independent) for Telecom, said.
He said IPPB and India Post will work in tandem to deliver benefits of government schemes and financial services that are not easily available in rural areas, and to the marginalised population in urban areas.
IPPB is the third entity to receive payments bank permit after Airtel and Paytm. Payments banks can accept deposits up to ₹1 lakh per account from individuals and small businesses, according to Reserve Bank of India rules.
Multiplier impact According to Finance Minister Arun Jaitely, the India Post bank will have a multiplier impact as far as banking is concerned as lakhs of postmen are connected with masses in the rural areas.
“Banking at your home or doorstep was just a slogan, but the kind of network post offices have, that slogan is being converted into a reality,” he said.
Set up us a 100 per cent government-owned public limited company under the Department of Posts, it will open around 650 branches in district headquarter locations by September. All 1.55 lakh post offices, including the 1.39 lakh rural post offices, will be mapped to the IPPB branch at the district headquarter and function as access points.
Speaking to the media after the launch, AP Singh, Head, IPPB, said the paid-up equity of the new bank is ₹800 crore, of which the government has already infused ₹275 crore, adding that “the idea is to have a branch in every district and make three lakh postmen come alive in payment bank function.”
Also, 1,000 ATMs of India Post will be transferred to IPPB, he added.