India Post Payments Bank to be launched soon: 10 things to know

New Delhi: Prime Minister Narendra Modi will launch India Post Payments Bank (IPPB) on September 1, news agency PTI, reported, citing a senior government official. India Post Payments Bank will focus on providing banking and financial services to people in rural areas, by leveraging the reach of 1.55 lakh post office branches. The launch of India Post Payments Bank, the PTI report said, was rescheduled in the wake of seven-day national mourning declared after the demise of former Prime Minister Atal Bihari Vajpayee. Prime Minister Narendra Modi was to launch India Post Payments Bank on August 21.

Here are 10 things to know about India Post Payments Bank :

1) India Post Payments Bank CEO Suresh Sethi had earlier said that the payments bank will go live with 650 branches in addition to 3,250 access points co-located at post offices. Around 11,000 postmen both in rural and urban areas will provide doorstep banking services.

2) The government is trying to link all the 1.55 lakh post office branches with India Post Payments Bank services by the end of this year. This will create the country’s largest banking network with direct presence at village level.

3 ) India Post Payments Bank has been allowed to link around 17 crore postal savings bank (PSB) accounts with its accounts.

4) People in rural areas will be able to avail digital banking and financial services, including money transfer, to any bank account either with help of mobile app or by visiting a post office.

5) The postal payment bank has permission to carry RTGS, NEFT, IMPS transaction that will enable its customers to transfer and receive money from any bank account.

6) With the third party tie-ups, account holders in India Post Payments Bank will be able to avail financial services as in case of a regular banking customer.

7) India Post Payments Bank has been set up under the Department of Posts, Ministry of Communication, with 100% equity owned by Government of India. It started operations on 30 January, 2017, by opening two pilot branches, one at Raipur and the other at Ranchi.

8) Payments banks can accept deposits of up to Rs 1 lakh per account from individuals and small businesses.

9)The payment bank will be used by government to distribute NREGA wages, subsidies, pension etc.

10)The India Post Payments Bank app which is expected to be launched on same day will enable customers to pay for services of around 100 firms including phone recharges and bill, electricity bill, DTH service, college fees etc that are present on Bharat Bill payments system of National Payments Corporation of India.