India Post Payments Bank (IPPB) became operational this month with eye-catching features. With India Post’s deep roots in the country’s interiors, IPPB is expected to find acceptance and grow quickly. IPPB is a wholly government-owned entity and the Reserve Bank of India (RBI) would oversee it. Like a regular bank, IPPB provides several services to its customers. Let’s take a look at nine key things about IPPB that makes it useful to Indians looking for banking services.
3 Types of Accounts
IPPB offers three classes of accounts: Regular Savings, Basic Savings, and Digital Savings. All the accounts have no minimum balance requirement. A Regular Savings account is without a debit card, but provides a QR code-based card to enable transactions. A user can use the QR card in two steps: get the QR code scanned and then authenticate the transaction through biometrics. A person above the age of 10 years with a valid KYC document can open this account. A Basic Savings account allows you to make a maximum of four cash withdrawals and the remaining features are similar to the Regular account. While Regular and Basic accounts can be opened by visiting your nearest post office branch, the third account the Digital Savings account can be opened through the IPPB mobile application. This account doesn’t have the QR code transaction and only a person aged 18 or more with the requisite proof of ID can open it.
Services Offered in IPPB Account
IPPB comes with the option of savings as well as current account facility. One can get direct benefit transfers (DBT) in these accounts. An IPPB account can be used to transfer money, make payments, use mobile banking facility, get phone banking support, and it will also provide financial services such as insurance products, mutual funds, forex related instruments, etc.
QR Code Transaction
In the absence of debit cards, the IPPB would allow transactions through QR codes. For most Indians, this would be a new way to transact compared to the traditional methods or even the more recent trend of plastic money usage. But with QR codes, the user is not required to remember his PIN number or keep the CVV safe. He only needs to scan the QR code and use his own biometrics to authenticate the transaction. This is expected to be a hassle-free way of transacting digitally.
What Balance Can You Maintain?
IPPB allows a maximum closing balance of Rs 1 lakh and if the postal savings account of the user is linked to IPPB account, the excess balance will automatically get transferred to such account.
Interest Rate Offered
IPPB offers an annual interest rate of four per cent which would get credit quarterly in the customer’s account. Like other savings accounts, the interest earned through IPPB up to Rs 10,000 in a financial year would be eligible for tax deduction under Section 80TTA.
Charges for Various Services
Most of the facilities and services under IPPB are free to customers. There is no minimum amount required to open your account. Apart from the regular, physical statements provided by the IPPB on a quarterly basis, if you request for an additional physical statement, it would cost you Rs 50. The initial QR code comes free of cost, but if you apply for the reissuance of the QR code, it would be charged at Rs 25. Similarly, balance certificate, card or kit return due to wrong address, and cheque bounce would be charged at Rs 50 at each instance.
Access IPPB Through A Mobile APP
You can easily access IPPB by downloading the smartphone app. It can be used to check your account balance, get statements, get a cheque book for current accounts, transfer fund within or across the bank, pay bills and so on.
Online Payment Transfer Facility
IPPB allows fund transfer facility through NEFT, RTGS and IMPS. The charges for NEFT are up to Rs 25, Rs 50 for RTGS, and for IMPS it is up to '50. IMPS charges for a transaction through mobile banking are lower than doorstep banking.
Doorstep Banking
IPPB offers banking services at your doorstep, i.e., you can take the assistance of your postman or Gramin Dak Seva to make digital or cash transactions at nominal charges. IPPB is not allowed to lend, cannot open a joint account and issue a demand draft. If you have opened a digital account, it is mandatory to provide your KYC documents and biometric authentication to your nearest authorised post office branch or postman within one year for converting it into regular savings account.
