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Some more intereting points about India Post Payments Bank (IPPB)


1.As DOP is doing agency functions to MOF in PODB Schemes only, Whereas IPPB is completely owned by Ministry of Communications the Administrative Pricing Mechanism will go.i.e interest rates will be decided by itself.

2.The Schemes operated will be only the two i.e. CA/SA only with maximum limit of one lakh only.

3.The reason for keeping minimum balance is to avoid high networth customers and to provide all services hitherto not available to un/under banked low income customers.

4.After recruitment of high level functional officers a management board will be constituted under the designated chairman cum managing director who is going to be appointed from banking industry.The members of the board will include secretaries of Ministry of Communications, Ministry of Expenditure and the Ministry of Food and civil supplies all the three who are part of IPPB and whose programs will be implemented through IPPB

5.Choosing an operative partner is going to be done by the board, As you all aware already more than 50 institutions are given their consent to be part of IPPB.

6. The collected funds after RBI stipulation s of CRR and Capital Adequacy Ratio the first 75% will be deposited in Govt Securities and the remaining 25% will be parted with the stregetic partner chosen for banking commercial activities.

7.The account opening mode will be hussle-free and on E-KYC method, By just pressing your any finger on the machine and by feeding of just your AADHAAR number. No physical presence or documentation.

8.All DBS schemes of govt of India and its various ministries social benefit scheme last mile delivery will be ensured only through IPPB only.

9.The other banking activities of ECS,Loan disbursement, and collection of its EMI,and utility payments,and the money transfer amongst the banks and clearing of cheques and instruments will be carried out by IPPB.

10. All POSB activities will be continued till the natural closing of the schemes takes place separately on Finnacle platform or till the integration of the leftover SOLs that's sub- offices . For the present they will carryout IPPB operations too along with POSB module.

11.The local money lending through institutions will be boosted by IPPB, The roadside vendors and whose mercantile activities were not till now have the facilities of bank financing will be connected through IPPB to the partner bank or any other bank if so desired.

12.Daily collection of deposits by postman of that area and operation of postman as teller for their banking activities will make sure the inclusive banking for all and at the doorstep can be achieved in the current scenario of cash less economythis very big enterence of IPPB is going to make a big difference.

13.Lastly,the financial stability of IPPB will be ensured by the very big institutional backing of the the INDIA POST and its already trained manpower, with the help of agile postman whose activities are going to be manifold. As of now all the banks profitability is nowadays hinges on fee based income.

Now. 16% of their income is on the services provided. Hence the ATM services and fee based income of IPPB is conservatively estimated at rupees 500 crores at the end of 5th year of operations. That against an equity capital of rupees 400 crores Which makes an EPS of 1.25 rupees against 1 rupee share value.Which will ensure it to offer its shares in public to raise its further capital without knocking the doors of the mentor i.e govt.

14.kindle do keep in mind IPPB is registered Public Limited Company wholly owned by Ministry Of Communications.
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