IPPB is a public limited
company under the Department of Posts with an independent Board of Directors.
It will be headed by a Managing Director and CEO, and will set up a corporate
head quarter and up to 650 branches to manage its functions on a day to day
basis.
IPPB will leverage the
physical and IT infrastructure of the Post office and be set up on a lean
operating model. It will focus on low-cost, low-risk, technology based
solutions to extend access to formal banking.
Products
and Services of IPPB
1. IPPB
Payment Services
IPPB will provide the
benefits of payments and remittances to the customers, by adopting newer,
efficient processes and technologies such as mobile based payments, digital
wallets and innovative payment and remittance products that are continuously
emerging in the market today.
Combined with doorstep
cash payment options like traditional money orders, IPPB will differentiate
itself from the other players while comparing well with all other benefits
offered by competitors.
IPPB will drive the
benefits of financial inclusion by bringing a host of financial products to
suit the needs of different strata of society with special focus on the
marginalized sections and citizens in rural areas. In so doing it will also
provide the following proposed services:
- Direct Benefits transfer (DBT) of
social security payments of various Ministries.
- Utility bill payments for
electricity, water, telephone, gas etc.
- Facilitate payments of various
Central and State Govt& Municipal dues, taxes and fees/taxes of
various Universities/ educational institution.
- Person to person remittances both
domestic and cross-border. Special focus will be on providing, economical,
safe and convenient money transfer facilities to migrant labourers, NRIs
remitting money to relatives, institutions etc.
- Demand Deposits (Current account
and Savings Account)- with special focus on MSMEs, small entrepreneurs,
village panchayats & SHGs.
- Distribution of third party
financial products such as Insurance (health & general), mutual funds
and pension products.
- Access to formal credit products
by acting as BCs of banks & MFIs.
Product innovation will
be a continuous exercise to expand the bouquet of services adapting to the
evolving needs of its customers and the rapid advancements in communication and
payments technologies.
2. IPPB
Banking Services
Apart from savings
account with up to INR 1,00,000 in deposit, the products offered by IPPB are
different from POSB products. POSB savings accounts do not have any limit
unlike payments bank savings account. On the other hand, payments banks, can
offer current accounts for use by businesses and institutions whereas POSB does
not offer these accounts. Other kinds of deposits under POSB are unique to it and
will not be on offer by the payments bank. The purpose of the savings accounts
and current accounts of IPPB is to facilitate flow of money and payments of
different kinds from Government to Citizen, Citizen to Government, Citizen to
Citizen, Citizen to Businesses and Businesses to Citizens whereas the POSB
accounts are mainly savings instruments.
Apart from the existing
customers of the DoP, IPPB will focus on the underbanked and unbanked
population in different parts of the country. It will also try to target
services for MSMEs, senior citizens, students, migrant population, low income
households, unorganized sector and other groups with special service
requirements. In addition to its own products, the payments bank will partner
with third parties to offer a wide range of financial and banking services to
cater to the needs of its target segments.
The customers will have
the choice of the amount they want to leave in their IPPB account at any point
of time and they will earn interest on their money in these accounts also. They
would be able to channel money from their IPPB accounts to any of the POSB
schemes. For example, an IPPB customer will be able to use money in his account
to open and service a RD/ TD/ SSY or any other POSB account. Thus, both IPPB
and POSB can synergistically serve the customers.
