What is India Post Payments Bank and what facilities will it provide to the public?

 

According to the Reserve Bank of India (RBI) data, about 60% of the people of the country are still not connected with the banking sector. This includes many people who live in rural areas of India, who have very low income and work in the unorganized sector. In order to provide financial facilities to such people, the Reserve Bank of India has started setting up payment banks in different parts of the country under the policy of financial adjustment.

 

Meaning of payment bank

 

Payment bank is a different type of bank than commercial banks in India. The Reserve Bank of India had issued guidelines on 24 November 2014 for the establishment of payment banks. Payment Bank; Meet the general banking needs of the public but with some restrictions; Like, payment banks will be able to open current and savings accounts of people but will not be able to give credit cards and loans to people. These banks will be able to deposit the money of the migrant employees and will also work to give the amount sent by the migrant workers to the family.

 

The Narendra Modi government has launched 'India Post Payments Bank' on September 1, 2018, to connect the poor with the banking system under the policy of financial adjustment. This bank will be formed as a public company under the Department of Posts. The government will have a 100 per cent stake in this bank. The Payments Bank of the Department of Posts will work through a network of post offices. It will include 3 lakh postmen and rural post servants.

 

List of Payments Banks in India

 

1. Airtel Payments Bank Limited

2. India Post Payments Bank Limited

3. Fino Payments Bank Limited

4. Paytm Payments Bank Limited

5. Jio Payments Bank Limited

6. NSDL Payments Bank Limited

 

What facilities will India Post Payments Bank provide?

 

India Post Payment Bank Scheme will be of a smaller scale than other banks. Through this payment bank all the banking related work except for loan and credit card; You can deposit money in the bank, send money, money can be taken by someone else and you can also send money to a relative.

 

Under this scheme, items purchased from e-commerce sites will also be delivered to you. People will be able to shop from e-commerce websites like Flipkart / Amazon. For this, the Department of Posts has tied up with Amazon. The account holder will get a free ATM or debit card. Free Indian postal online facility will be available to the account holder. The account holder will get free mobile alert service. Insurance services, mutual funds, current accounts and other financial services can also be availed through this. Facilities such as basic banking, direct benefit transfer payment, payment of various types of bills and depositing tax can be availed through the bank.

 

How to get services of India Post Payment Bank (IPPB)

 

India Post will use your Aadhaar card to open a payment bank account. You will get banking services at the post office counter and also through micro ATM. Apart from this, the postman will have smartphones and biometric devices to provide service at home. The postal payment bank will charge 1 paisa for every transaction charge. However, you will have to pay more to get services at home. By December 2018, 1.55 lakh access points will be created for these services, out of which 1.30 lakh will be in rural areas.

 

Post Office Saving Account

 

A minimum of Rs 20 is required to open a savings account with India Post Payment Bank. And if someone opens a savings account with the facility of cheque, then he has to deposit a minimum of Rs 500. Savings account holders (without cheque facility) will have to maintain a minimum amount of Rs 50 per month and Rs 500 with cheque facility. The limit for depositing money in the payment bank will be one lakh rupees. If you accumulate more money than this, it will automatically go to the post office saving account. But normal savings account holders are not required to keep any minimum balance in the account. But this type of account holder will not get home delivery of services. A savings account of up to one lakh rupees can be opened under the payment bank. The payment bank will pay 4.5% interest on deposits of 25 thousand rupees, 5% interest on deposits of 25 thousand to 50 thousand rupees and 5.5% interest on deposits of 50 thousand to 1 lakh rupees.