Prime Minister Narendra Modi has the knack of announcing new changes in the Indian financial system. Be it demonetization or GST things have changed a lot and with digitalisation, the government has decided to launch Indian Post Payment Bank IPPB. PM Modi announced about this during his speech today.
The India Post Payments Bank will offer a range of services and products such as savings and current accounts, money transfer, direct benefit transfers, bill and utility payments. Here are the 10 important things to know about IPPB.
- All the 1.55 lakh post offices across India will be linked to India Post Payments Bank by December 31.
- IPPB is the 3rd entity to receive payments bank permit after Airtel and Paytm.
- Payments banks will accept deposits up to Rs 1 lakh per account from individuals and small businesses.
- In IPPB, regular savings account will be available to open with zero balance.
- Opening accounts in IPPB will be available with the help of Aadhaar and PAN card numbers digitally.
- Over 17 crore postal savings bank accounts will be linked with India Post Payments Bank accounts, this will automatically give users to IPPB with an edge over private companies who spent a lot to acquire customers.
- A mobile app will be launched to provide online banking service and for various services like phone bill, DTH, gas connection, electricity bill.
- Customers will have the access to their IPPB account through mobile app but with limited services. After completing formalities like KYC (know your customers), all the services will be available.
- IPPB has partnered with Bajaj Allianz Life Insurance to offer life insurance products and PNB Met Life for Pradhan Mantri Jeevan Jyoti Bima Yojana.
- A QR code card will be provided to account owners for making payments by scanning the QR code in it and authenticating their biometric.
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It will be interesting to see how this new entity operates in India as implementation is the most important thing that decides the future of a policy.
