All you need to know about India Post Payments Bank

India Post launched its long-awaited payments bank by launching 650 branches across the country on September 1, 2018 making it the fourth such entity to start operations. The India Post Payments Bank was launched by Prime Minister Narendra Modi at Talkatora Stadium in Delhi.

IPPB was the third entity to receive payments bank permit after Airtel and Paytm. Payments banks can accept deposits up to Rs 1 lakh per account from individuals and small businesses. So the moment your IPPB account crosses the Rs 1 lakh limit the transaction will be rejected automatically. (To escape the hassle, IPPB has a simple solution. Open a post office savings account and link it with your IPPB account. Any balance in excess of Rs 1 lakh will be transferred to your post office account, which is a regular savings bank account.)

The payments bank will be governed by Reserve Bank of India.

All IPPB accounts attract an interest rate of 4% per annum. Calculated on your daily closing balance, the interest rate is paid quarterly.


  • The India Post Payments Bank is a public sector company under the department of posts and ministry of communication where the Indian government holds 100 per cent equity.
  • All the 1.55 lakh post offices in the country will be linked to the IPPB system by December 31, 2018.
  • Suresh Sethi is the managing director and chief executive of IPPB.
  • Headquarters: New Delhi
  • Motto: Aapka Bank Aapke Dwaar
  • India Post Payments Bank (IPPB) offers three types of savings accounts—regular, digital and basic. As the name suggests, a digital savings account can be opened through the IPPB mobile app ‘IPPB Mobile Banking’ while the remaining two have to be done either through the post office or the postman.
  • In regular and digital savings accounts, you can also withdraw or deposit as many times as you want. In case of a basic savings account, there is a restriction of 4 cash withdrawals monthly.
  • IPPB savings accounts are zero-balance accounts i.e. they come without any liability of maintaining a minimum balance.
  • IPPB was launched as a pilot project on 30 January 2017 in Ranchi (Jharkhand) and Raipur (Chhattisgarh), with the objective of being present across India by the FY 2018-2019.
  • IPPB will offer a range of products such as savings and current accounts, money transfer, direct benefit transfers, bill and utility payments, and enterprise and merchant payments. These products, and related services, will be offered across multiple channels (counter services, micro-ATM, mobile banking app, SMS and IVR), using the bank’s state-of-the-art technology platform.
  • The IPPB will not offer any ATM debit card. Instead, it will provide its customers a QR Code-based biometric card. It has already tied up with PNB Metlife and Bajaj Allianz to sell insurance products and hopes to enter into more financial service partnerships.
  • Recently, the cabinet had approved 80 per cent increase in spending for IPPB to Rs 1,435 crore from Rs 800 crore earlier.
  • IPPB has permission to link around 17 crore postal savings bank (PSB) account with its account. It has received approval for carrying out RTGS, NEFT, IMPS transaction that will enable IPPB customers to transfer and receive money from any bank account.

Digital Savings Account Rules:

Like other payments bank, IPPB also allows opening of digital savings accounts so that you can open them at home without hassles. However, it is valid only till 12 months. Within a year you have to convert it into a regular savings account by providing your biometric data to the postman. If you fail to do so, the digital savings account will be closed.

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