India Post Payments Bank : Bank @ Doorstep

An interview with A N Nanda | Secretary | Department of Posts | Ministry of Communications | Govt. of India

What is the Vision and Mission of IPPB?

• To build the most accessible, affordable and trusted bank for the common man.
• To spearhead the financial inclusion agenda by removing the barriers for the        unbanked and under banked population.

What is the role of Government in IPPB?

• IPPB has been set up under the Department of Posts, Ministry of     Communications, with 100% equity owned by Government of India.

What are the products and services offered by IPPB?

• IPPB will offer a range of products such as savings and current accounts, remittances, and money transfer, direct benefit transfers, bill and utility payments, 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 a bank grade, cutting edge technology platform.

What are IPPB Advantages?

• Vast network and reach of India Post with a rural India penetration of 1,30,000 access points (Post Offices), which is nearly 2.5 times the number of bank branches in rural India today.

A large work force of 3,00,000 + Postmen and Gramin Dak Sevaks (GDS) offering Assisted Doorstep Banking in rural, urban and remote areas.

• IPPB will make banking and payments simple. Using Aadhaar, it will open paperless accounts in minutes and allow customers to make digital transactions with the help of QR Cards and biometric authentication.
• For IPPB, the last mile service partner is the Postman. The Department of Posts (DoP) represents sovereign trust, and partnering with such an institution will set IPPB apart.

Who are IPPB – Customers/Beneficiaries?

• Include Senior Citizens, Students, Homemakers, Urban Migrants, Farmers, DBT Beneficiaries, Rural Influences, Kirana Stores and Small Business.

What are the Core Values of IPPB?

Accessibility

• With a network of 1,55,000 post offices countrywide, 3,00,000 + Postmen and GDS servicing the last mile, IPPB will be India’s Most Accessible Bank.
• With IPPB’s Doorstep Banking Services, Customers don’t even need to leave their homes.

Approachability

• Last mile service delivery through the Postman – a friend, philosopher and financial guide.

Affordability

• IPPB will leverage public infrastructure (Reserve Bank of India (RBI)/National Payments Corporation of India (NPCI), Payments Settlement Systems) to offer last mile affordable banking.
• Aadhaar-based customer on boarding will reduce the cost of customer acquisition – a benefit that will be transferred to the end customer.

Ease of Banking

• The last mile delivery agent (Postman, GDS) is armed with financial knowledge and equipped with a smart phone and biometric device, enabling him/her to offer financial services and guidance with relative ease.
• IPPB’s QR card eliminates the need for customers to remember their account number and PIN.

What is the Digital Ecosystem of IPPB?

At Macro Level

• IPPB’s 360 degrees payments suite creates transparency, removes corruption and leakages by/removing cash from the system, enabling a less cash economy – and thus contributes to India’s GDP.

Individual Level

• Customers can transact without cash through digital channels (IPPB mobile app, QR card). The bank will equip and enable small merchants and vendors to accept cashless payments (QR-code enabled payments).

How IPPB promotes Financial Inclusion?

• Customer literacy is IPPB’s biggest mission.
• IPPB will promote Financial Inclusion through Financial Literacy – educating customers on how insurance secures the unsecured, how wealth grows from wealth and how even a small saving can go a long way towards building a better future.
• IPPB will train 3,00,000 Postmen and GDS to provide financial guidance to our customers.

What is the role of IPPB in Digital India?

• India has traditionally been a cash dominated economy. In order to evolve as a digital economy, it is critical to have points of presence where cash can be converted to digital money.
• Department of Posts, with its huge network consisting of 1,55,000 post offices with 80% rural penetration, is critical in enabling a digital economy.
• IPPB is structured as a digital bank and will leverage DoP’s physical infrastructure to provide last mile banking services.
• IPPB will also focus on creating a digital acceptance ecosystem to further promote a less cash economy.

What is the link between IPPB and Departments of Posts?

• DoP has been a pioneer of Financial Inclusion in the country. It services over 40 crore customers in India with over 17 crore Post Office Savings Bank accounts, making it the largest Financial Inclusion enabler.
• IPPB has built a strongly integrated model with DoP under which any Post Office Savings Bank Account holder will be able to avail additional services provided by IPPB by linking accounts.
• This is a win-win proposition – IPPB will provide DoP customers with a complete bouquet of banking services. In turn, POSB accounts will become sweep out accounts for customers when the balance exceeds Rs. One Lakh.
• IPPB will enable the post office to accept digital payments at counters, offer small savings schemes online (NSC/KVP/PPF) and increase its footprint in the e-commerce world by providing electronic cash on delivery options to its customers at their doorstep.

What is the rollout plan for IPPB?

• Hon’ble Prime Minister has simultaneously launched 650 Branches and 3250 Access Points of IPPB on 1^st September, 2018 from Talkatora Stadium. The simultaneous launch functions were organized in all 650 branches and 3250 access points.
• IPPB will be extended to cover all 1.55 lakh Access Points in the country by 31^st December, 2018. Out of these 500 additional access points have already been launched taking the number of rolled out access points of IPPB to around 3750.

(Shilpa Bichitra | Special Edition | 2018)