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Indian Post Payments Bank to go live soon


Posted on : 30/Jul/2018 14:42:04

After getting clearance from the Reserve Bank of India, it is likely that the India Post Payments Bank will go live including 650 branches and 17 crore accounts from August this year.

The launch date is being looked at. In terms of technology and market, things are all set to go live, says the MD and CEO of India Post Payments Bank, Suresh Sethi. He also affirmed that IPPB has received approval from the Reserve Bank of India upon all the testing performed on the system. We were waiting for the final approval from RBI, he added.

It is likely that the IPPB will get launched in August. To a question raised about the exact date of launch, Sethi said it is likely soon. To note, after Airtel and Paytm, IPPB is the third in the list to get approval as payments bank.

Payments bank they are allowed to collect up to a sum of Rs 1 lakh per individual or small businesses as deposits.

With this contemporary banking model, it will be possible for supermarkets, mobile firms, etc. to meet the varied banking needs of businesses and individuals. The functioning will be different from that of a conventional bank and will be restricted to accepting demand deposits, net banking, remittance service, etc.

Testing is done under a small closed group. This is currently functioning in a national basis. As of now, this is being done on about 250 branches, he added. With about 650 branches, the IPPB will go live. Apart from this, there are 3250 access points present in the post offices of rural regions that provide doorstep banking solution.

It will be possible to provide 1700 counters and 11000 doorstep solutions. IPPB is granted with the permission for joining hands with 17 crore postal savings bank account. This can also perform NEFT, RTGS, IMPS transactions with which all the IPPB customers will be able to make money transfer across accounts. It will thus be a full-fledged banking service.

All the 1.55 lakh post offices located across India shall thus get linked on one platform. It will be possible to access IPPB account through mobile app, but with limitations in services.

Upon completing the KYC formalities, the required banking services shall be offered. A mobile app will also be launched for facilitating online banking service and others such as making phone bill payment, gas connection payment, DTH payment, electricity payment, etc.

For the IPPB customers, a whole of 100 and above billers will be present. Up to Rs 1 lakh of deposit will be allowed on this platform, and hence PSB account can be linked with it. PSB to IPPB transfer will thus be possible. In the PSB account, money above Rs 1 lakh can also be saved.

Billers who accept payments via Bharat Bill Payments will also be available on IPPB.

To note, it was on 17th August 2016 that the IPPB was launched as per the Companies Act, 2013.