Sep 14: All post offices in the country, numbering 1.55 lakh, will soon be set to offer financial services with the India Post Payments Bank all geared up to kick off. By the end of 2018, all these post offices along with over 3 lakh employees would be equipped to bring on stream the nation’s second-largest payments bank in terms of reach.
The significance about the India Post Payments Bank would be that it would have a presence in every district across the length and breadth of India. The post offices and the 3 lakh employees will be equipped with a device that will provide a full range of payment solutions that the India Post Payments bank would be hosting, said a report.
The India Post Payments Bank will operate in the same space as the Airtel Payments Bank, a private player which launched operations in January this year. The airtel Paymenst Bank boasts a network of 2.5 lakh merchants.
As per the government norms, players in the payments banks space would be able to dole out financial services to the general public. They will be able to accept deposits of up to Rs 1 lakh per account from individuals and small businesses. Set up as a different banking model, payments banks will confine activities to accepting demand deposits, remittance services, Internet banking and other specified services.
The India Post Payments Bank has said that it would be offering an interest rate of 4.5 per cent on deposits up to Rs 25,000, 5 per cent on Rs 25,000-50,000 and 5.5 per cent on Rs 50,000-1,00,000, the report added.