10 Interesting Facts about India Post Payment Bank (IPPB)

Interesting Facts about India Post Payment Bank (IPPB)Interesting Facts about India Post Payment Bank (IPPB)

Last week, India cabinet has approved Indian Post Office Payment Bank (IPPB) to be set-up as Public Limited Company which would have 100% share from Govt. of India. While this would be still under Dept of Posts, this movement was announced during budget announcements of 2016. What does this India Post Payment Bank (IPPB) offer?  Do you know that Indian Post Payment Bank would become one of the largest payment bank in the world in coming years?

Also Read: What are the Post office interest rates upto Jun-2016?

What are payment banks?

Payments Banks are approved by RBI to cater low income group and for un-organised sector. Payments bank can receive deposits and provide remittances. It cannot carry lending activities. As a special segment, RBI has approved licenses for 11 entities to create payment banks. Payment banks can also engage in the distribution of mutual funds schemes, insurance etc., Payments bank can collect deposits upto Rs 1 Lakh only. They can issue ATM and debit cards, however cannot issue credit cards. Such banks are useful for migrant laborers, low income house holds, small businesses and other unorganized sector.

10 Interesting Facts about India Post Payment Bank (IPPB)

1) India Post Payment Bank would get necessary licenses from RBI by Mar-2017.

2) India Post Payment Bank would be operational and serviced across its 650 payment branches. It would be linked to all post offices.

3) IPPB would collect deposits up to Rs 1 Lakh per investor.

4) IPPB can provide remittance services as per guidelines issued for payments banks by RBI.

5) IPPB can grab opportunities from mutual fund distribution, pension schemes in rural areas and semi-urban areas.

6) They can offer services such as automatic payments of bills, and purchases in cashless, cheque-less transactions through a phone

7) IPPB would also create enormous opportunities for Banking professionals across the country in rural and semi-urban areas.

8) IPPB can become largest payment bank in the world with its ease access to rural and semi-urban areas.

Also Read: Post office MIS Scheme offers regular monthly income – Who should invest?

9) India post office being trusted by several Indians, IPPB would be successful in gaining confidence from investors and can easily collect deposits from them.

10) Payment technologies have proved hugely popular in other developing countries. In Kenya, the most cited success story, Vodafone’s M-Pesa is used by two in three of adults to store money, make purchases and transfer funds to friends and relatives. Hence I feel Indian Post Office Payment Bank story would be successful in coming years and expert that it would be one of the largest payments bank in the world.

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Interesting Facts about India Post Payment Bank (IPPB)

One comment

  • Uday

    Hi Suresh,
    Thanks for the article. Can you say which of the stocks would do well after introduction of payment bank?

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