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India Post Payment Bank Saving Accounts

IndianMoney.com Research Team | Posted On Tuesday, September 11,2018, 04:57 PM

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India Post Payment Bank Saving Accounts

 

 

What is India Post Payments Bank?

Payments bank is the latest concept of banks designed by the Reserve Bank of India . The Reserve Bank of India RBI, licensed India Post to set up a payment bank on 19th August 2015. These banks accept a restricted deposit of Rs 1 Lakh per customer. These banks are not authorized to offer loans in any form including credit cards. Both savings and current bank accounts can be operated by payment banks. Payments banks offer services like ATM cards, debit cards, netbanking and mobile banking. Joint accounts are not permitted under India Post Payments Bank (IPPB).

On 17th Aug 2016, IPPB was registered as a public limited Government company, for setting up a payments bank. The first phase of IPPB was launched on 1st Sept 2018 with 650 branches and 3,250 post offices as access points.

Indian post payments banks IPPB, is a state owned payments bank operating under the Ministry of Communications and administered by the Department of Posts. IPPB aims at utilizing all 1,55,015 post offices as access points and 3 Lakh postal service employees, to offer house to house banking services.

The pilot phase of the IPPB project was launched on 30th Jan 2017 at Ranchi and Raipur. More than ten thousand postmen were roped into the first phase. The India post payment bank is headquartered at New Delhi. In August 2018, the Union Cabinet allocated Rs 1,435 Crores to India Post Payments Bank.

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SEE ALSO:  India Post Payments Bank

India Post Payment Bank Saving Accounts

Services of Payment Bank

A payment bank offers the following services to customers.

  • Accept demand deposits
  • Remittance services
  • Mobile bill payments
  • Recharges
  • Fund transfers
  • Debit card and other services
  • Netbanking

What Is India Post Payments Bank Saving Accounts?

IPPB offers three types of savings accounts with various benefits that include unlimited withdrawals and deposits to the accounts at door steps. You are permitted to hold more than one account in payments bank but the overall deposit with all accounts put together, must not exceed Rs 1 Lakh, as per RBI guidelines. IPPB offers QR card which serves the purpose of ATM cum debit card and cheque book.

India post payments bank offers three types of savings accounts with common features. You must choose the most suitable account by closely analyzing needs and what the account offers. The three types of savings accounts offered by India post payments bank are:

1) Regular savings account

2) Basic savings account

3) Digital savings account

Regular savings account:

You can open a post office savings account with a minimum of Rs 20. You can open a regular savings account with zero balance. There is no need to maintain a monthly average balance (MAB) in the regular savings account.

If you are 10 years and above, do the KYC (Know Your Customer) and open regular savings account. You can make unlimited cash deposits/withdrawals with regular savings account.

Regular savings account doesn’t offer debit cards or cheque books. You can access financial services through QR Cards. With QR cards you can access regular savings account even without remembering account number. All your transactions are initiated with biometric authentication and there’s no need to remember any passwords.

What do you require for this transaction? The place where you use the QR Card must have a scanning machine (You need this for financial transactions) and a fingerprint scanner/iris scanner to authenticate the transaction.

Why QR card? With the QR card, you can pay bills, transfer money or even indulge in cashless shopping. What if your card is stolen? No problem, your money is safe. No one can steal money from your account as transactions are authenticated with biometrics.

The maximum balance in your regular savings account cannot exceed Rs 1 Lakh. You can link the regular savings account to the post office savings account and if the balance is above Rs 1 Lakh, you can sweep the excess funds into the post office savings account.

 SEE ALSO: How To Apply For A Credit Card Online?

Doorstep banking with regular savings account: The postman or the Gramin Dak Sevak (GDS) will help you with doorstep banking. You can open the account at your doorstep and then deposit, transfer or even withdraw cash. You can recharge the mobile or pay utility bills (electricity/water) right at your doorstep with nominal charges.

How to avail doorstep banking services?

You simply call the contact centre @155299 and make an appointment. You then get an SMS confirmation. You have to confirm the visit details with the representative.

Now, all you have to do is give the post office account number/ mobile number or show the QR card to the doorstep representative and use the doorstep banking services.

Regular Savings Account Interest Rate

The interest rate offered on a regular savings account in IPPB is almost equal to that of a normal savings bank account. The current rate of interest offered on IPPB regular savings account is 4%. The minimum deposit that can be made into a regular savings account is Rs 100. There is no minimum balance as such to be maintained in a regular savings account in IPPB.

Regular savings account can be opened at the bank’s access points or at your doorstep. This account can be utilized to keep your funds secure or withdraw and deposit money. There is no limit on the number of withdrawals on a regular savings account in IPPB.

Key features of regular savings account:

  • Banking at convenience
  • Instant and paperless account opening procedure
  • Interest rate of 4% per annum 
  • No requirement of maintaining monthly average balance.
  • Regular savings account can be opened with zero balance.
  • Quarterly account statement is given free of cost.
  • Mini statement via SMS.
  • QR card is issued to simplify banking services.
  • Instant fund transfer via IMPS.
  • Easy recharges and bill payment.
  • Regular savings account can be linked to POSA (Post Office Savings Account).

Regular Savings Account Eligibility

  • You must be an Indian citizen.
  • You must be at least 10 years old.
  • You must have Aadhaar card.

Regular Savings Account Documents Required

Aadhaar card and PAN card or Form 60 are must have documents to open a regular savings account in IPPB. Biometric verification of Aadhaar card would be done.

2. Basic Savings Account

You can open a basic savings account just like a regular savings account. You get doorstep banking and the QR Card just like a regular savings account.

You can open a basic savings account on being above 10 years with KYC. The maximum end of day balance must be Rs 1 Lakh and you have the nomination facility. You can link the basic savings account with the post office savings account and transfer excess funds above Rs 1 Lakh.  You get an annual interest rate of 4% and interest is payable each quarter.

You also get free SMS alerts and a quarterly free e-statement. If you want an additional physical statement, pay Rs 50. You get a QR card absolutely free of cost and on QR card reissuance; you have to pay Rs 25.

Basic Savings Account Interest Rate

The basic savings account has exactly the same features of a regular savings account, except that it allows only four withdrawals in a month. The main intention behind offering basic savings account is to offer basic banking services at nominal charges. The interest rate offered on a basic savings account is 4% and the frequency of interest payment is quarterly. You are allowed to operate only one basic savings account in India Post payments bank.

Basic Savings Account Eligibility

  • The applicant must be an Indian citizen
  • The applicant must be at least 10 years old.
  • The applicant must have Aadhaar card.

Basic Savings Account Documents Required

To open a basic savings account in India Post payments bank, you must have Aadhaar card and PAN card or Form 60. Biometric verification of Aadhaar card would be done.

Key features of basic savings account:

  • Banking at convenience.
  • Instant account opening.
  • Very minimal documentation required.
  • Interest rate of 4% per annum if offered.
  • The interest is paid out on a quarterly basis.
  • No requirement of maintaining monthly average balance.
  • Basic savings account can be opened with zero balance.
  • Free account statement is provided on quarterly basis.
  • Mini statement by SMS.
  • Simplified banking services through QR card which serves as both chequebook cum debit ATM card.
  • Instant fund transfer via IMPS.
  • Easy payment of bills and recharges
  • Basic savings account can be linked with a POSA (Post Office Savings Account).

3. Digital Savings Account

You can open a digital savings account with India Post Payment Bank (IPPB). Use your android mobile and download the IPPB mobile app. If you are above 18 years, have an Aadhaar and PAN, you can open the digital savings account.

The total cumulative deposit in the digital savings accounts is Rs 2 Lakhs a year. If you want unlimited access to the digital savings account, you must complete the full KYC (Biometric based Aadhaar Verification). You can upgrade the digital savings account to a regular savings account within a year by visiting India Post Payment Bank access point. You can transfer money through IMPS, using the digital savings account. You can even pay utility bills using the digital savings account.

Digital Savings Account Interest Rate

Keeping in mind the people who are tech savvy, India post payments bank has launched a mobile application. This mobile application can be downloaded from Google Play store on all Android devices. With this app, you can open a savings account in IPPB by sitting at home. The process is completely paperless.

However, the catch with digital savings account is that they are valid only for 12 months. Within a year of account opening, you must complete biometric Aadhaar verification for the account, post which it will be converted into a regular savings account. The interest rate offered on a digital savings account is 4% per annum.

Key features of digital savings account:

  • Bank at your convenience.
  • Instant on-boarding.
  • Interest rate of 4% per annum is offered on end of day balances.
  • Interest is paid out on quarterly basis.
  • No requirement of maintaining minimum monthly average balance.
  • The account can be opened at zero balance.
  • Quarterly account statement is provided free of cost.
  • Instant fund transfer by IMPS.
  • Easy payments and recharges.

Digital Savings Account Eligibility

  • You must be at least 18 years old.
  • You must be an Indian citizen.
  • You must have PAN card
  • You must have Aadhaar card.

Digital Savings Account Documents Required

All individuals looking to open a digital savings account must have Aadhaar card and PAN card without which a digital savings account cannot be opened in India Post payments bank.

How To Open Digital Savings Account?

  • Download IPPB mobile banking app from the Google Play store.
  • Install the app and open it.
  • Have your PAN and Aadhaar numbers handy.
  • Sign up for the digital savings account by clicking on ‘open your account now!’.
  • You would be directed to a page called ‘basic information’ where you must enter basic details along with PAN number, Aadhaar number and the mobile number to which you would like to link the account.
  • The next page asks you to enter Aadhaar number and check on the box if you have Aadhaar based OTP account with a bank.
  • After signing up, enter your details using a phone number on the main page. You would have to authenticate with an OTP sent on the phone number mentioned.
  • Create an MPIN and complete setting up of the digital savings account.

SEE ALSO:  Open Digital Savings Account?

Comparison Of Normal Bank With Payments Bank

The below table gives the comparison of a payments bank with a normal bank:

Features

Payment Bank

Regular Bank

Saving Account

Yes

Yes

Current Account

Yes

Yes

Maximum Deposit

1 Lakh

No Limit

Fixed Deposit

No

Yes

Loans

No

Yes

Credit Card

No

Yes

Fund Transfer (NEFT/IMPS/UPI)

Yes

Yes

Cheque/Draft Facility

No

Yes

Cash Withdrawal Limit/day

25,000

No Limit

 Cash Deposit Limit

 1,00,000

No Limit

PPF/NSC/SCSS Account

No

Yes

Overdraft Facility

No

Yes

Passbook

No

Yes

Internet and Mobile Banking

Yes

Yes

Online Account Statement

Yes

Yes

 

List of Operational Payment Banks

1.  Airtel Payment Bank

2.  Paytm Payment Bank

3.  Fino Payment Bank

4.  India Post Payment Bank

5.  Jio Payment Bank

6.  Aditya Birla Payment Bank

Objectives of payment banks

The main objective of a payments bank is to enhance financial inclusion by offering small saving accounts and payment remittance services to low income households, migrant labor workforce, small businesses and other unorganized sectors. It will also facilitate high volume and low value transactions in deposits and payment/remittance services in a technology driven environment.

Prime Minister Narendra Modi launched the India Post Payment Bank (IPPB) on September 2nd 2018 at Talkatora Stadium in New Delhi. India Post Payment Bank aims to bring the benefits of financial services like banking and insurance, to the doorstep of every Indian and promote financial inclusion in India.

IPPB with 650 branches and more than 3,250 access points spread across India (most of them in rural parts), can reach where most banks cannot. Banks do not have many branches in rural areas and concentrate on semi-urban and urban areas.

You can save money by opening an IPPB savings accounts. IPPB savings accounts are – regular, digital and basic saving account. Want to know more on NSC? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of 4`any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

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