July 30: India Post will soon have the operation of its payment bank commenced across various cities in India. The India Post Payments Bank is now scheduled to get opened by August, according to reports quoting IPPB MD and CEO Suresh Sethi.
Speaking to PTI, Suresh Sethi said that IPPB will be going live soon with 650 branches across various cities in India. Close to 170 million accounts are expected to be linked to its services post the launch. Despite India Post being one among the earliest names to have been associated with payments bank, IPPB was caught stuck with the procedure of obtaining clearance from Reserve Bank of India to start operations.
Sethi confirmed that the final approval from RBI has been obtained following the test of its entire system. Sethi however didn’t mention an exact date for the launch of IPPB, though sources close to ministry of communications say that the IPPB would be launched in August.
IPPB has been put under testing phase among closed user group till now with around 250 dedicated branches. When launched, around 3250 access points will be setup along with post offices in addition to the 650 dedicated branches that will go functional at the time of launch.
IPPB will gradually increase the count, with the aim being to link all 155,000 post offices in the country to offer payment bank service. IPPB will also have the aid of postmen in urban area and gramin dak sevaks in rural area to facilitate doorstep banking services.
IPPB was the third entry to receive permission for entering payment bank system after Airtel and Paytm. The latter two have already started its payment bank operations along with Aditya Birla Idea Payments Bank.
The IPPB will operate as a differentiated bank and will have its activities limited to purposes like acceptance of demand deposits, remittance, Internet banking, ATM services etc. A dedicated mobile app will also be launched for users to access online banking services and utility services like bill payment, gas connection etc. Customers, both individuals and small businesses, can use the payment bank to make deposits of up to Rs 100,000.