PM Modi today launched India Post Payments Bank, which has become India’s largest banking network with more than 1.5 lakh branches, and more than 300,000 employees.
The launch happened today at Talkatora Stadium, New Delhi.
India Post Payment Bank is one of the biggest Digital India push, as it aims to introduce banking in deep rural hinterland, where traditional banks have failed to enter.
Thus, this is one of the biggest push for financial inclusion in India, which will result in millions of new banking customers, who can use their Aadhaar card for instant banking.
Here are 7 facts about India Post Payments Bank which every Indian should be aware of:
India’s Largest Banking Network!
India Post Payments Bank has become India’s largest banking network. India Post has 1.55 lakh post-offices, which will be converted into banking outlets.
Its closest rival would be SBI, which has approximately 30,000 branches.
India Post Payments Bank is owned 100% by Govt., and both Department of Posts, Ministry of Communication have stakes in it.
Biggest Financial Inclusion Program!
The concept of India Posts Payments Bank was created for financial inclusion. India has world’s second largest unbanked population, as 190 million Indians still don’t have any bank account.
On the day of the launch, India Post has 650 Branches and 3250 Access Points across the nation.
Postmen Will Turn Bankers!
India Post will empower 300,000 postmen and Grameen Dak Sewaks who will be given banking training and would play a prominent role in helping the unbanked convert into banked.
As per a video shared on social media, the postmen will be provided with handheld devices, using which basic banking services would be provided.
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— BJP (@BJP4India) August 31, 2018
The concept is: Banking comes to the home of rural users. This is indeed a revolutionary program.
Pilot Branches Already In Action!
As of January 30th, 2017, two pilot branches were launched in Raipur and Ranchi, which have been serving India Post customers with banking services.
Interest Rates & Deposits!
As of now, India Post Payments Bank will offer 4% interest on saving account, and will accept deposit upto Rs 1 lakh from individuals and small businesses.
However, India Post won’t be able to extend loan based on that deposit.
Anyone can open a zero balance basic saving account, with no minimum monthly balance.
Loans For Customers?
However, when it comes to loans, then India Post Payments Bank will convert into a 3rd party, and will alliance with loan providers such as PNB, SBI and others. It is not yet clear whether private financial institutions will also collaborate with India Post or not.
What Services Will Be Provided?
As of now, India Post Payments Bank will provide the following banking services:
- Savings and current accounts
- Money transfer
- Direct benefit transfers
- Bill and utility payments
- Enterprise and merchant payments
These services would be offered at Post offices, and via handheld devices carried by the postmen, which will also act as mini-ATMs. Mobile banking app, and phone banking via IVR is also present.
As per available information, around 17 crore postal saving accounts will be converted into India Post Payments Bank account, gradually.
We will keep you updated, as we receive more information.