Considering the rural and semi-educated population in India, the Government of India has made a great effort to connect people with the banking system and that is to connect the post office with the banking system. This effort has proved to be a boon for rural and remote areas and will be in future as well.
What is Postal Banking? What is Postal Banking?
In postal banking, your local post office provides basic banking and financial services like a commercial bank. In which the benefits of services like savings account, current account, mobile banking, domestic money transfer, bill payment, credit and debit cards, life insurance, social security schemes are available.
The local post office also serves as a type of bank branch. The way you can open an account in a normal bank or do financial transactions, in the same way you can open an account in the Indian Post Office and do various financial transactions.
Postal banking is common in most parts of the world, a good option for providing low cost, quick banking services to a country’s large unbanked population. Lakhs of people in India are getting the benefits of digital online banking facilities by connecting to the post office banking system.
You can do all kinds of financial transactions in the post office like depositing money, withdrawing money, FD etc. Providing banking services at the post office will help many Indian citizens, especially those living in rural and remote areas.
India is called a country of villages and more than half of the population is illiterate or semi-educated in the villages, that’s why the Government of India started the India Post Payment Bank to provide banking facilities to them.
India Post Payments Bank
Government of India has launched India Post Payments Bank in the market as a best initiative to promote postal banking service so that villages, towns and remote people can connect with Indian banking system.
Prime Minister launched the India Post Payments Bank (IPPB) on September 1, 2018. It is a wholly owned subsidiary of the Department of Posts with 100 per cent equity held by the Government of India.
It is a payments bank of India Post which will work with a network of post offices and around 3 lakh postmen to facilitate banking activities across India.
India Post Payments Bank (IPPB) has been established under the Department of Posts & Ministry of Communications with 100% equity owned by Government of India. You can also know about top 10 major bank of India.
Savings Account, Current Account, Mobile Banking, SMS Banking, Missed Call Banking, Phone Banking, Domestic Money Transfer, Bill Payment, Remittance & Fund Transfer, Direct Benefit Transfer, DOP Product Payment, Credit & Debit Card, under AAP Post Payment Bank You can avail services like Life Insurance, General Insurance, Social Security Scheme like PMJJBY.
Postal banking will most benefit those consumers who do not have access to traditional banks as well as those who prefer a more public option.
Postal services provide financial services in some form or the other in 142 countries around the world, in which the Indian Postal Service is also providing its service strongly.
In India Post Payments Bank you will get the following facilities:
| Deposit |
| – saving account |
| – current account |
| money transfer |
| – Simple and Secure |
| – Immediately |
| – 24×7 |
| direct benefit transfer |
| – MANREGA |
| – Scholarship |
| – Social welfare benefits and other government subsidies |
| third party products |
| Loan |
| – Insurance |
| – Investment |
| – Post Office Savings Schemes |
| Bill & Utility Payments |
| Mobile and DTH recharge |
| Electricity, water and gas bills |
| Donations and insurance premiums |
| Enterprise & Merchant Payments |
| – postal products |
| – Digital Payment for E-Commerce Delivery (COD) |
| – Small traders / grocery stores / unorganized retail |
| – Offline Payment |
| Cash Management Services |
Is Postal Banking a New Idea?
No, Postal Banking System is not a new idea. It was first implemented in the United States of America and seeing its benefits, slowly other countries also started adopting it.
The United States had a postal savings system from 1911–1967 that held $3.4 billion in assets in 1947, or 10 percent of the assets of the entire commercial banking system. Worldwide, 1.5 billion people are receiving financial services through postal banking service.
Postal Banking in India
India Post Payments Bank (IPPB) is at your service with a vast postal network of around 1.55 lakh Post Offices and 3 lakh postal personnel in every district, town and village of the country to carry out your banking activities.
To connect and reach you with the banking system, Postal Banking System is committed to reach you with the help of postmen with the promise “Aapka Bank, Aapke Dwar”. The postman will become your true bank companion and will try to deliver all banking facilities at your doorstep.
India Post Payment Bank has been linked with the existing post office services and efforts will be made to provide banking facilities to you through the existing post office. You can open your account by visiting your nearest post office and enjoy the benefits of India Post banking system without visiting the bank.
The main objective of postal banking system in India is to focus on connecting social sector beneficiaries, panchayats, low-income households, migrant laborers, unorganized sector, micro, small and medium enterprises (MSMEs) with banking activities in rural areas.
Your Post Office endeavors to provide you banking facilities through physical as well as digital means through India Post Payments Bank. The way you can deposit money by going to a normal bank, transfer money online, in the same way you can do all kinds of activities through the post office.
India Post Payments Bank (IPPB) In You can open three types of savings accounts by visiting:
- Regular Account – Safal, (Regular Account – Safal)
- Basic Savings Bank Deposit Account (BSBDA) – Sugam
- BSBDA Small – Saral
You can keep a maximum of ₹ 2 lakh in your regular savings account at the end of the day. If you cross the limit of two lakh rupees, then you will need to open a Post Office Savings Account, the IPPB department will help you in this. Funds above ₹2 lakh in Regular Savings Account can be transferred to your linked Post Office Savings Account (POSA).
India Post Payments Bank offers 4 percent interest rate on savings account. These banks can issue debit cards and ATM cards, but cannot issue credit cards or lend money.
It will provide social security payments like MGNREGA wages, Direct Benefit Transfer and help people in providing access to third-party services insurance, mutual funds.
Linking post office with banking services can increase the presence of banking services in rural India by 4-5 times and with the promotion of green banking system, the Indian economy can see a tremendous boom in the coming years.
Benefits of India Post Payments Bank (IPPB)
- Expansion of rural banking.
- Access to multiple banking services.
- Social and financial inclusion.
- Rural MSMEs benefit from financial services.
- Effective Direct Benefit Transfer (DBT).
- Job opportunities for banking professionals.
- Strengthening of comprehensive banking infrastructure.
- Getting people to use better technology.
- To connect the rural masses with the banking system.
- Last mile delivery of services through postmen.
- ‘Gramin Dak Sevaks’ working as mobile bankers.
Post Office Savings Bank accounts linked to India Post Payments Bank (IPPB) will provide access to banking to Indian citizens. With which they will be able to enjoy facilities like Internet Banking, Mobile Banking, Electronic Fund Transfer, Online Bill Payments, Digital Payments, Third-Party Payments, Insurance and Mutual Funds etc.