Why in News?

India Post Payments Bank (IPPB) has marked a significant milestone in the world of banking services with its continued profit streak, demonstrating its commitment to sustainable financial inclusion and citizen empowerment.

• IPPB on August 22,2023 reported its first-ever operational profit of Rs 20.16 crore for 2022-23. The bank saw a 66.12% growth in overall revenue.

About the India Post Payments Bank

IPPB is a wholly-owned payments bank, a subsidiary of the Indian postal department, which with 100 per cent Government of India equity works through a network of post offices and nearly 3 lakh postmen. 

Indian Post Payments Bank with the vision of building the most affordable, accessible, and trusted bank for the common man and driving the agenda of financial inclusion for the under-banked population will be governed by RBI.

Though the services of Indian Post Payments Bank is for all the citizens; the primary focus of IPPB is serving the low-income households, social sector beneficiaries, unorganised sector, migrant labourers, MSMEs – Micro Small and Medium Enterprises, and Panchayats in rural areas also the under-banked and unbanked segments in both the urban and rural areas.

IPPB offers services through a mix of physical and digital platforms. Channels used for delivering IPPB services include:

• Doorstep, mobile and internet banking
• Counter operations
• Pre-paid instruments such as PoS, mobile wallets, MPoS, etc.
• ATMs/micro ATMs

India Post Payments Bank Limited Details

Opportunities Of IPPB

• Currently, there are about 50,000 bank branches in rural India, while the Department of Post alone has almost 1,30,000 service points in rural India, which, if converted into points of banking service, can extend the presence of IPPB banking services in rural India by 3.5 times.
• Coupled with convenient, simple, and affordable digital solutions, IPPB intends to leverage the trust that the public has on India Post. 
• To provide doorstep banking services for 3,00,000 employees of Indian postal services are provided with biometric and handheld devices.
• IPPB may help increase rural per capita income through domestic savings by tapping the savings of rural people.
• IPPB will reduce the exploitation of rural people by money lenders and provide effective financial services.
• The expansion of rural banking services has become difficult as the mounting pressure of NPAs turned banks towards the over-burdening task of recovery of credit. IPPB will reduce this pressure and ease the expansion of banking services.

IPPB App Services

1. The doorstep banking facility offers a range of services including account opening, cash deposits and withdrawals, money transfers, recharge and bill payments, third-party services like insurance, loans, investments and other account-related services.
2. The account-related services include updating PAN and nomination details, requesting account statements, and issuing standing instructions.
3. The IPPB app will also offer RTGS, IMPS and NEFT services for the transfer of funds.

Salient Features Of Indian Post Payments Bank 

• The IPPB offers three types of savings accounts: regular, digital and basic.
• No fee for withdrawals made from IPPB ATM or PNB ATM since it has a tie-up with Punjab National Bank.
• The bank will offer a 4% interest rate in all the savings accounts.
• It also offers Forex services at lower charges.
• Unlike most banks, there will be no need to maintain a minimum quarterly average balance.
• No charges for the lack of a minimum account balance.
• The IPPB also offers a QR card service that will help one access their bank account and make transactions without having to remember their account number. Using the QR card, all transactions can be authenticated via biometric verification.
• Indian Post Payments Bank offers a free debit card with an annual maintenance fee of Rs. 100/- from the second year.
• Using a network of post offices, and the services of over 3,00,000 postmen, the IPPB will reach customers without the traditional bank branches. 
• IPPB provides third-party products like loans and insurance through the other banks or companies that it has tied up with.
• In the absence of traditional bank branches, the IPPB aims to reach its customers through their mobile phones. That is why it has the chance to flourish among people who are tech-savvy and comfortable with technology. 
• The IPPB will encourage anyone above 18 years of age to open digital savings accounts, using their Aadhar and PAN cards. The KYC formalities for such accounts must be completed within 12 months.

MCQs about India Post Payments Bank (IPPB)

Question 1: What is the primary focus of India Post Payments Bank (IPPB)?

a) Serving high-income households
b) Providing services to urban areas
c) Promoting digital transactions
d) Financial inclusion for under-banked and unbanked segments

Question 2: Who is the owner of India Post Payments Bank (IPPB)?

a) Indian postal department
b) Reserve Bank of India (RBI)
c) Ministry of Finance
d) Private banking consortium

Question 3: What is the key objective of the Jal Jeevan Mission?

a) Providing electricity to rural households
b) Enhancing healthcare services in rural areas
c) Ensuring safe and adequate drinking water supply to rural households
d) Promoting education in urban regions

Question 4: What is the significance of IPPB’s first-ever operational profit?

a) It demonstrates its commitment to environmental sustainability
b) It shows its focus on technology-driven services
c) It signifies its role in financial inclusion and citizen empowerment
d) It highlights its contribution to promoting international trade

Question 5: What type of banking services does IPPB primarily provide?

a) Only digital banking services
b) Traditional branch-based services
c) Combination of physical and digital banking services
d) Mobile wallet services only

Read also:- ‘Lightweight’ payments system