India Post Payments Bank launched: Some important facts about IPPB

Launching the service, Prime Minister Narendra Modi said with e-mails taking over inland letters, many thought technology had threatened the existence of the postal department and that postmen would lose their livelihood.

"(The growing pace of) technology (in communication) threw a challenge. We used technology as a base to turn that challenge into an opportunity," he added.

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PM Modi said the 'daakiya' (postman), who has a special place in Indian movies and literature, not only delivered letters, but also read them out to the families who were not literate, and even replying to the letters on their behalf. 

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"We have heard song 'Dakiya dak laya'. From now, along with dakiya dak laaya, dakiya bank bhi laaya... Dak sewaks will not only help in digital transactions but will also provide training to people so they can themselves carry out digital transactions from their phones," Modi said. 

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"Through India Post Payments Bank (IPPB) we will reach to every nook and corner of the country. Bank and banking services will be available at every person's doorstep," Modi said. 

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Communications Minister Manoj Sinha said deposits in any account that exceed Rs 1 lakh will be automatically converted into post office savings account. 

IPPB has permission to link around 17-crore postal savings bank (PSB) accounts with its own setup. Sinha said there are about 1.4 lakh bank branches and nearly 50,000 of them are in villages, which face a challenge in reaching the unbanked. 

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IPPB will offer products and services through multiple channels such as counter services, micro ATMs, mobile banking app, messages and interactive voice response.

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IPPB -- which will be available through 650 branches and 3,250 access points immediately, scaled to all 1.55 lakh post offices by December 2018 -- is like any other bank but with smaller scale of operations and without involving any credit risk.

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The freshly-minted payments bank will accept deposits of up to Rs 1 lakh, offer remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third-party fund transfers. However, it can't offer loans directly, or issue credit cards.  

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Of the 1.55 lakh post offices, about 1.30 lakh are located in rural areas. IPPB is keen on tapping this network for expanding its efforts of financial inclusion and providing banking services to hitherto untapped market.

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IPPB will leverage tech platforms, to the hilt -- it will use Aadhaar to open accounts, while a QR card and biometrics will drive authentication, transactions, and payments. Grameen Dak Sewaks will be armed with smartphones and biometric devices to handle transactions.

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IPPB will also facilitate digital transactions and help deliver the benefits of schemes such as Pradhan Mantri Fasal Bima Yojana, which provide assistance to farmers.

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