Prime Minister Narendra Modi on Saturday launched the payments bank of Indian postal department that will take banking to doorstep of every citizen through an unmatched network of post offices and almost 3 lakh postmen and ‘Grameen Dak Sewaks’. India Post Payments Bank (IPPB) will be like any other banks but its operations will be on a smaller scale without involving any credit risk.
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It will carry out most banking operations like accepting deposits but can’t advance loans or issue credit cards.
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.
Communications Minister Manoj Sinha said IPPB will be available through 650 branches and 3,250 access points. Deposits in any account that exceed Rs 1 lakh will be automatically converted into post office savings account.
It will use Aadhaar to open accounts, while a QR card and biometrics will drive authentication, transactions, and payments.
It will offer 4 per cent interest rate on savings accounts.