India’s third payment bank i.e. India Post Payments Bank (IPPB) will be launched on August, 21st by Prime Minister Narendra Modi. IPPB will be the third payment bank after Airtel Payment Bank and PayTm Payment Bank.
India Post Payments Bank (IPPB) will have at least one branch in every district and focus on financial services in rural areas. There are 1.55 lacs post offices branch in India. Currently, Indian Post Payment Bank will have 650 branches. Two branches of the bank are already operational. Rest of the 648 branches will be launched across country in every district.
IPPB will leverage reach of 1.55 lakh post office branches to provide banking and financial service to people in rural area. In this regard, Government is trying to link all the 1.55 lakh post office branches with IPPB services by the 31-12-2018. This will create the country’s largest banking network with direct presence at village level.
IPPB has permission to link around 17 crore postal savings bank (PSB) account with its account. IPPB will provide the digital banking services to their customer through Internet Banking, Mobile Banking & ATM Cards.
Payments banks can accept deposits up to ₹ 1 lakh per account from individuals and small businesses. IPPB has permit to carry RTGS, NEFT, IMPS transaction that will enable IPPB customers to transfer and receive money from any bank account. The payment bank will be used by government to distribute MGNREGA wages, subsidies, pension, etc.
Indian Postal Payment Bank has had tie up with National Payments Corporation of India (NPCI) to pay the bills including phone recharges,water, electricity bill, DTH service through Bharat Bill payments system (BBPS).