India Post Payment Bank || Everything You Need To Know

india post payment bank
Indian Post Payment Bank (IPPB) was launched by Prime Minister on 1 September, 2018 aimed at providing banking services available at the doorstep of people. Here is everything you need to know about it.

What is IPPB?

IPPB is a wholly-owned subsidiary of Department of Post, with 100 percent Government of India equity. It works with Indian Postal Department via a network of post offices employing about 3 lakh postmen.

The Reserve Bank Of India will be governing it. Along with provision of services to all citizens, it essentially focus on serving social sector beneficiaries, migrant labourers, Micro Small and Medium Enterprises (MSMEs), Panchayats, low-income households, in rural areas and the unbanked and under-banked segments in both the rural and urban areas through a combination of physical & digital platforms.

With the initial target of having 650 branches & 3250 access points in post offices across the country, it aims at linking this system to all 1.55 lakh post offices in the country by December 31, 2018.


  • Constructing easily accessible, affordable and trusted bank for common folk.
  • Driving Financial Inclusion- agenda for under-banked occupiers.

Medium for delivering services 

  • Counter operations
  • ATMs
  • Doorstep, internet & mobile banking
  • Pre-paid channels such as mobile wallets, PoS, MPoS, etc.

Functions of IPPB

It will offer remittance services along with accepting the deposits. Also, mobile banking & fund transfers will be provided.

The three types of saving account offered are,
  1. Regular Account – Safal,
  2. Basic Savings Bank Deposit Account (BSBDA) – Sugam
  3. BSBDA Small – Saral
The deposits in current & savings account can't exceed Rs 1 lakh. Interest rate of 4% is offered on savings account. Debit cards & ATM cards can be issued by them. But they can't grant credit cards & loans. Social security payments like direct benefit transfers, mutual funds, MNREGA wages are also provided by IPPB. The account holder will be given a unique QR code based on biometric card.

Potential of IPPB

Presently, around 50,000 bank branches exist in rural India with nearly 1,30,000 service points by Department of Post. The trust enjoyed by India Postal Services will be leveraged by convenient digital methods. The per capita income of rural people could be increased through domestic savings tapped by IPPB as rural banking had failed miserably due to NPAs in past years. Exploitation done to rural people will be tackled effectively.


  • Expansion of Rural Banking - IPPB will assist in boosting the postal system, while expanding Rural Banking through its large network of branches all over the nation.
  • Access to Diversified Services - It will allow lakhs of POSB accounts access to banking in order to enjoy facilities like internet banking, online bill payments, digital payments etc. across the spectrum of banks 24×7. Other diversified services are are provided.
  • Social & Financial Inclusion - It helps in social and financial inclusion through the wide network of post offices throughout India providing banking at doorstep.
  • Push to MSMEs - Rural MSMEs will have a positive impact from financial services offered by IPPB.
  • Effective DBT - IPPB would help in better penetration of Government’s initiatives like promoting online transactions and Direct Benefits Transfer (DBT).
  • Employment - IPPB will cater great man force , thereby, giving employment opportunities to people.
  • Credibility - It is quite trustworthy giving it a competitive edge over its competitors.


  • Low Awareness - Due to lack of digital literacy among rural areas, it may take time for them to opt for such services.
  • Stringent Regulation - The restrictions by RBI on how to employ funds are very strict.
  • User Charges - Charging fees on services provided to tap revenue may demotivate the people.
  • Competition - A stiff competition from private companies is likely to create a problem.
  • Lack of Infrastructure - Unavailability of internet & proper infrastructure restricts it's usage. Also, adopting latest technology to conduct transactions smoothly is not easy. The faculty also needs to be trained properly before appointment leading to additional costs.
Way Forward
While the privileges provided by IPPB are undeniable, two major barriers in it's implementation are — financial and pricing. Also, effective infrastructure, autonomy, well-trained staff are some of the things required on an urgent basis.

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Hi, I am Alisha Jain. I am pursuing my B.A. (Hons.) in Economics from the University Of Delhi. I like to write articles about various current, social & economic issues. I spend my leisure time reading novels, painting, drawing & listening to music.



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The Radical - Information That Matters: India Post Payment Bank || Everything You Need To Know
India Post Payment Bank || Everything You Need To Know
PPB is a wholly-owned subsidiary of Department of Post, with 100 percent Government of India equity. It works with Indian Postal Department via a network of post offices employing about 3 lakh postmen.
The Radical - Information That Matters
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