Indian Prime Minister launched the world’s largest payments bank, India Post Payments Bank at the national capital on Saturday. The government-owned payments bank will get assistance at 1.55 lakh post office branches across the nation making it the largest payments bank in the world.
The India Post Payments Bank is aimed at financial inclusion by providing banking and financial services to people in rural and suburban areas.
During the launch, IPPB already has 650 branches and 3,250 access points across India, and the government aims to link all its 1.55 lakh post offices with the newly launched IPPB by the end of this year.
India Post Payments Bank will go against India’s most popular e-wallet, Paytm and its subsidiary, Paytm Payments Bank (PPB). Recently the digital wallet company completed 290 million transactions, growing at an enormous rate challenging.
So, can the newly launched IPPB take on the widely popular Paytm Payments Bank?
Let’s find out, who offers the better benefits and ease of payments banking.
India Post Payments Bank vs Paytm Payments Bank | IPPB vs PPB
We have done a comparison between the details and features offered by both India Post Payments Bank (IPPB) and Paytm Payments Bank (PPB) respectively.
The India Post Payments Bank has 100 percent equity owned by the GOI (Government of India). So, if you have an account on IPPB, it will be under by Department of Posts, GOI.
Whereas, the Paytm is owned by One97 Communications, backed by foreign investors like SoftBank, AliBaba, Berkshire Hathaway and more. So, if you one of those who wants a 100% swadeshi payments bank account, you have the answer.
India Post Payments Bank is currently offering a 4 percent interest rate on its savings accounts. Paytm Payments Bank account also offers 4 percent interest rate on its savings accounts.
So, it’s a tie when it comes to interest on savings account.
As per the RBI rules, Payments Bank cannot accept more than 1 lakh deposit at a time. So, both Paytm Payments Bank and India Post Payments Bank can accept deposits of up to Rs 1 lakh per account.
Though, with Paytm Payments Bank if your account exceeds 1 lakh rupees, the extra money will automatically become an FD. You can withdraw the FD at any time without any extra charge.
In India, RBI does not allow any Payments Bank to offer any loan. Both Paytm Payments Bank and India Post Payments Bank do not have the mandate to extend any loan to any customer.
Both Paytm Payments Bank and India Post Payments Bank can offer financial services as third-party products in collaboration with financial agents.
IPPB has tied up with Punjab National Bank (PNB), and PPB already offers products in association with ICICI Bank and IndusInd Bank.
Both Paytm Payments Bank and India Post Payments Bank offer a range of add-on services like current accounts, money transfer, direct benefit transfers, bill and utility payments.
Small business can also have enterprise and merchant payments.
ATM & Cheque Book Facility
Both Paytm Payments Bank and India Post Payments Bank offer ATM & Cheque Book facility. You have to additionally apply for a physical ATM cum debit card and checkbook. India Post already has its ATMs, but Paytm is yet to open its ATMs.
Though, you can transact with your ATM card at any ATM across India.
India Post Payments Bank will use its wide network of 300,000 postmen and Grameen dak sewaks. Paytm Payments Bank has also its dedicated personnel who does home visits and access points across India for KYC.