India Post Payment Bank (IPBB)
Giving a new string to the newly found payment bank concept, India Post Payment Bank (IPPB) is all set to take the segment by storm by opening 650 branches in 2017, rapidly moving away from the first two branches which were opened in January this year. Confirming the news, B V Sudhakar, Secretary, Department of Posts, Government of India told, ‘’we intend to open at least one branch per district across the country. Each branch will be networked with about 1200 to 1500 post offices in a district,’’. He opined that IPPB will use the technology to ensure such a massive exercise done with success. At present, there are 978 standalone ATMs for India Post. IPPB is expected to add to its ATM count by making tie-ups with other banks. IPPB plans to integrate core system software including postal operations, savings bank and core banking to make sure the installation of 650 branches are done in the time frame.
Function of IPPB
IPPB would concentrate its efforts on financial inclusion, doorstep banking and direct benefit transfer. For this, a recruitment of 55,000 Gramin Dak Savekas in rural areas is going to be made. Of the total vacancies available, the process to fill up 14,046 entrants has already begun.
Airtel Payment Banks
Airtel Payment Bank, the venture of leading telephony Bharti Airtel, was the first one to start the new age operation in November with a launch of pilot program in Nov 2016. An interest rate of 7.25% on the savings account is offered by the bank, which also charges 0.65% on withdrawal of an amount more than ₹4,000.
Payment Banks Meaning
For a comprehensive financial inclusion, the RBI conceived a model called payment banks, which are expected to provide customers the enhanced convenience they are looking for. A deposit of about ₹1 lakh per customer can be accepted by these banks, which can also issue debit cards and provide services such as Internet Banking and Mobile Banking. The deposit limit, however, can be increased.