India Post to start payments bank soon

New Delhi: India Post Payments Bank is expected to go live with 650 branches and around 17 crore accounts in August, following clearance from Reserve Bank of India to start operations.

“We are looking at launch date. From an operational, technology and market perspective, we are ready to go live,” India Post Payments Bank (IPPB) MD and CEO Suresh Sethi told. He confirmed that RBI has given approval to IPPB after testing its entire system. The final approval for the launch of IPPB was pending before the RBI.

According to sources in the communications ministry the launch of IPPB is expected in August. When asked about the launch schedule, Sethi without specifying the timings said: “It is very much around the corner”. IPPB was the third entity to receive payments bank permit after Airtel and Paytm. Payments banks can accept deposits up to Rs 1 lakh per account from individuals and small businesses.

The new model of banking allows mobile firms, super market chains and others to cater to banking requirements of individuals and small businesses. It will be set up as a differentiated bank and will confine its activities to acceptance of demand deposits, remittance services, Internet banking and other specified services.

“We have already started testing within closed user group and it is very much running on national basis. As we speak we are already doing it at around 250 branches,” Sethi said.

IPPB will go live with 650 branches in addition to 3,250 access points co-located at post offices and around 11,000 ‘gramin dak sevaks’ (in rural area) and postmen (in urban area) that will provide doorstep banking services.

“With this, we will provide banking services across 1,700 counters and 11,000 doorstep service. IPPB has permission to link around 17 crore postal savings bank (PSB) account with its account. We have received approval for carrying out RTGS, NEFT, IMPS transaction that will enable IPPB customers to transfer and receive money from any bank account. It will facilitate almost full fledge banking,” the bank’s CEO said.   

The payments bank will gradually link all 1.55 lakh post offices in the country to offer the service. Customers can access their IPPB account through mobile app but it will have limited services.

“Once a customer completes KYC (know your customers) requirement, the app will start offering all the banking service,” he added.

IPPB will also launch a mobile app to facilitate online banking service as well as payment for various utilities and services like phone bill, DTH, gas connection, electricity etc.

“There will be 100 plus billers for which IPPB customers will be able to pay from their account. Since IPPB account can hold up to Rs 1 lakh deposit so once PSB account will be linked to them, customers will be able to transfer money from PSB to IPPB and vice-versa. Money beyond Rs 1 lakh can be kept in PSB,” Sethi said.

All the billers that accept payment through Bharat Bill Payments system will be available for IPPB customers, he added. IPPB was incorporated on August 17, 2016 under Companies Act, 2013 as a public limited company with 100 per cent Government of India equity under Department of Posts.