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Showing posts with label Payment Bank. Show all posts
Showing posts with label Payment Bank. Show all posts
03 February 2017
How does India Post Payments Bank stack up against Airtel Payments Bank
New
Delhi: India Post Payments Bank (IPPB) launched on Monday by the Union finance
minister Arun Jaitley is the second payments bank to commence its operation in
the country after Airtel Payments Bank (APB), which was launched on January 12.
IPPB
has been set up as a 100% Indian government-owned public limited company under
the department of posts with the aim to open around 650 new branches in postal
district headquarters.
Currently,
the department of posts has an existing network of around 1,55,000 post
offices. The new branches will be co-located with the existing post offices.
On
Monday, it launched services on a pilot basis in Raipur and Ranchi.
APB,
on the other hand, is a joint venture between phone services provider Bharti
Airtel Ltd and Kotak Mahindra Bank Ltd. The payments bank went live with a
network of 250,000 banking points. In the pilot phase, the bank added over 1
million customers, according to a statement by the company.
As
mandated by the Reserve Bank of India (RBI), the new model of banking focuses
on providing basic financial services such as all kinds of payments; including
social security payments, utility bill payments, remittance services, current
and saving accounts up to a balance of Rs1 lakh, distribution of insurance,
mutual funds, pension products and acting as business correspondent to other
banks for credit products especially in rural areas and among the underserved
segments of the society.
However,
there are distinct differences in the business models of both the payments
bank. Mint compares the charges levied and interest rates offered by both the
payments banks for rendering different services, including deposits and
withdrawals.
APB
charges Rs5 to Rs25 for cash withdrawals less than Rs4,000 and 0.65% of the
withdrawal amount which is equal to or greater than Rs4,000. IPPB does not
charge anything for cash withdrawals from its branches and ATMs. However, it
charges Rs15-35 for rendering doorstep banking (cash based) for both deposits
and withdrawals up to Rs10, 000.
The
remittance charges levied by both the banks also differ. APB lists charges for
transactions made through internet banking, through the app and USSD
(Unstructured Supplementary Service Data) or *99# whereas IPPB also recognizes
transactions through NEFT (National Electronic Funds Transfer), IMPS
(Immediate Payment Service), AEPS (Aadhaar enabled payments system) and UPI
(Unified Payments Interface).
Only
transactions up to Rs10, 000 is permitted through AEPS which is free. According
to IPPB, banking charges at branch and doorstep for each NEFT based transaction
ranges from Rs2.5-5 and Rs5 is charged for every transaction via IMPS.
APB
charges 0.5% of the amount transferred within its payments bank whereas 1% of
the amount transferred is charged for transfer of funds from APB to other bank
accounts through banking points.
Customers
of IPPB can withdraw amount up to Rs10,000 from an ATM in a single transaction
and up to Rs25,000 per day. APB, on the other hand, has set Rs10 as the minimum
cash withdrawal amount, there is no clarity on the upper limit to cash
withdrawals.
APB
offers an high interest rate of 7.25% p.a. on deposits on savings accounts
which is higher than the interest rate offered by traditional banks on fixed
deposits.
IPPB’s
interest rates have been fixed as 4.5% if the quarterly average balance is up
to Rs25,000, 5% if it is between Rs25,000 and Rs50,000, and 5.5% if above
Rs50,000/-.
31 January 2017
India Post Payments Bank will be a game changer for financial inclusion-Manoj Sinha
IPPB branches launched in Raipur & Ranchi
Finance
Minister, Shri Arun Jaitley and Minister of Communications Shri Manoj Sinha
launched the operations of the India Post Payments Bank (IPPB) here today as
two pilot branches at Raipur and Ranchi through video conferencing from Delhi.
Speaking
on the occasion, Shri Jaitley said that about 650 IPPB branches will be opened
by September this year and that will have a multiplier impact as far as banking
in India is concerned. He said with IPPB, banking at the doorstep will no
longer remain a mere slogan, but will become a reality due to huge postal
network in the country. He said that financial Inclusion is critical for the
socio-economic development of the country, but there are significant gaps in
this area and a large proportion of country’s population remain unbanked or
underbanked. IPPB will effectively leverage the ubiquitous post office network
with its pan-India physical presence, long experience in cash handling and
savings mobilization, backed by the ongoing project of IT-enablement, to bridge
this gap in Financial Inclusion.
In
his address, Minister of Communications Shri Manoj Sinha has commended the hard
work done by the Department of Posts in setting up the India Post Payments Bank
and hoped that both organizations will work in tandem to take the benefits of
government schemes and financial services that are not easily available in
rural areas to customers across the country and to the marginalized population
in urban and rural areas alike. He said, the objective of IPPB will be public
service rather than promoting commercial interests.
Secretary,
Department of Posts, Shri B.V.Sudhakar said that the IPPB is widely expected to
be a game changer for financial inclusion in the country as the USP of this
initiative is doorstep banking, particularly in the rural areas.
As
mandated by the RBI, the India Post Payments Bank (IPPB) would focus on
providing basic financial services such as all kinds of payments; including
social security payments, utility bill payments, person to person remittances
(both domestic and cross-border), current and savings accounts up to a balance
of Rs 1 lac, distribution of insurance, mutual funds, pension products and
acting as business correspondent to other banks for credit products especially
in rural areas and among the underserved segments of the society.
Set
up us a 100% Government of India owned Public Limited Company under the
Department of Posts, it will open around 650 branches in district HQ locations.
All 1.55 lacs post offices including the 1.39 lac of the rural post offices
will be mapped to the IPPB branch at the district headquarter and function as
access points for IPPB. IPPB will usher in state of the art internet and mobile
banking platforms, digital wallets and use innovative and emerging technologies
to catalyse the shift from a cash dominant to a less cash economy.
While
many other banks and financial institutions are working on the same theme, the
USP of IPPB will be its ability to ease access and handhold the adoption of new
age banking and payments instruments among citizen of all walks of life through
the delivery by postmen and Grameen Dak sevaks, savings agents and other
franchisees who will take banking to door steps. IPPB thus aspires to the most
accessible, affordable and trusted bank for the common man with the motto - “No
customer is too small, no transaction too insignificant, and no deposit too
little”.
Given
‘in principle’ approval by the RBI along with 10 other aspirants on 19th Aug
2015, IPPB received the cabinet’s approval on 1st June, 2016 and was
incorporated as on 17th Sept, 2106. Today it became the second payments bank to
launch its operations. Having got its final banking license from the RBI on the
20th Jan 2017 it has commenced operations in record time of 10 days in
partnership with the Punjab National Bank, after obtaining all necessary
approvals and registrations from the RBI, NPCI etc.
A
commemorative stamp and a logo of the new bank were also launched on the
occasion.
 |
| The Minister of State for Communications (Independent Charge) and Railways, Shri Manoj Sinha addressing at the launch of the India Post Payments Bank branches, through video conferencing from National Media Centre, New Delhi on January 30, 2017. The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley and other dignitaries are also seen. |
 |
| The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley and the Minister of State for Communications (Independent Charge) and Railways, Shri Manoj Sinha jointly launching the India Post Payments Bank branches, through video conferencing from National Media Centre, New Delhi on January 30, 2017. |
 |
| The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley and the Minister of State for Communications (Independent Charge) and Railways, Shri Manoj Sinha releasing a commemorative stamp, at the launch of the India Post Payments Bank branches, through video conferencing from National Media Centre, New Delhi on January 30, 2017. |
29 January 2017
28 January 2017
India Post Payments Bank To Launch Operations In Ranchi, Raipur
India Post is likely to launch the first two branches of its payments bank—India Post Payments Bank (IPPB)—in Ranchi and Raipur on a pilot basis, an official familiar with the plans told BloombergQuint. The two branches are likely to begin operations within a week.
Over the next couple of months, IPPB will be in a position to offer banks a network through which they can sell their products, said a second government official while speaking on the condition of anonymity. IPPB will also offer services through internet and mobile banking, and prepaid instruments like mobile wallets and debit cards, according to the website.
Payment banks are intended to offer deposit and remittance services to customers but are not allowed to lend directly. They can, however, cross-sell products by third party providers to their customers.
India Post has a wide network of 1,54,939 post offices, of which 1,39,222 post offices are located in rural areas. This network can be used by IPPB for selling third party products or for disbursal of subsidies, the second official quoted above said.
The Department of Posts was given an in-principle approval to launch a payments bank by the Reserve Bank of India on August 19, 2015. On being satisfied that the applicant has complied with the requisite conditions laid down by the regulator, a final licence is given. The process has now been completed for IPPB.
The training of employees for the payments bank division is already underway and the government will soon appoint a chief for the India Post Payments Bank. Department of Investments and Public Asset Management’s Joint Secretary A.P. Singh has been appointed as the interim managing director and chief executive officer. IPPB has invited applications to fill around 1,060 vacancies across the entity.
The government is banking on IPPB to further its financial inclusion agenda. As part of his last Independence Day speech, Prime Minister Narendra Modi said that the India Post Payments Bank will help spread banking into the hinterlands.
"The post office is an example of our identity. We have revived and rejuvenated our post offices. It is now linked with the poor and small persons. If any government representative gets the affection of a common man in India, it is the postman. Everyone loves the postman and the postman also loves everybody, but we never paid attention towards them. We have taken a step to convert our post offices into payments banks. Starting with this, the payments bank will spread the chain of banks in the villages across the country in one go."
Prime Minister Narendra Modi (August 15, 2016)
Source : http://www.bloombergquint.com
02 November 2016
IPPB to Increase the Business of POSB indirectly
The
India Post Payments Bank is working on striking synergies with the Post Office
Savings Bank of the Department of Posts to ensure that its customers don’t look
elsewhere for parking deposits exceeding Rs. 1 lakh.
In
view of the regulatory restriction that a payments bank can hold a maximum
balance of ₹1lakh
per individual customer, the India Post Payments Bank (IPPB) is planning to
create a mechanism whereby balances over this limit get automatically
transferred to the Post Office Savings Bank (POSB). In this regard, the IPPB is
closely examining a clause in the Reserve Bank of India’s payments bank
guidelines whereby it can accept a large pool of money to be remitted to a
number of accounts provided at the end of the day the balance does not exceed Rs.1
lakh.
The
IPPB and the POSB apparently want to make sure that as far as possible the
customer’s money stays within the government-owned postal system. So, a
customer opening a savings bank account with IPPB will be given the option to
also open a linked POSB account. The IPPB has been set up under the Department
of Posts (DoP) as a public limited company wholly owned by the government of
India. The DoP received ‘in-principle’ RBI approval to set up payments bank in
August 2015.
The
POSB currently offers investment options, including savings bank account,
recurring deposit account, time deposit, monthly income scheme, senior citizens
savings scheme, and public provident fund, to small investors. These services
are offered as an agency service for the Finance Ministry.
As
per RBI guidelines, payments banks can accept demand deposits — current
deposits and savings bank deposits from individuals, small businesses and other
entities. They can neither accept fixed deposits and NRI deposits nor can they
give loans.
The
primary objective of a payment banks is to further the cause of financial
inclusion by providing small savings accounts and payments/remittance services
to migrant labour workforce, low-income households, small businesses, other
unorganised sector entities and other users.
Among
the reasons cited by banking industry experts for mainstream banks to pick up
stakes in entities having ‘in-principle’ RBI approval to start payments banks
are to provide their banking expertise, the opportunity to tap deposits
exceeding Rs. 1
lakh, and cross-selling loans.
For
example, Reliance Industries and State Bank of India have signed an agreement
to set up a payments bank with equity contribution of 70 per cent and 30 per
cent, respectively. Kotak Mahindra Bank has acquired 19.90 per cent stake in
Airtel Payments Bank.
Post Payments Bank eyes synergies with financial services biz of India Post
Mumbai October 30 : The
India Post Payments Bank is working on striking synergies with the Post Office
Savings Bank of the Department of Posts to ensure that its customers don’t look
elsewhere for parking deposits exceeding Rs.1 lakh.
In
view of the regulatory restriction that a payments bank can hold a maximum
balance of Rs. 1lakh
per individual customer, the India Post Payments Bank (IPPB) is planning to
create a mechanism whereby balances over this limit get automatically
transferred to the Post Office Savings Bank (POSB). In this regard, the IPPB is
closely examining a clause in the Reserve Bank of India’s payments bank
guidelines whereby it can accept a large pool of money to be remitted to a
number of accounts provided at the end of the day the balance does not exceed Rs.1 lakh.
The
IPPB and the POSB apparently want to make sure that as far as possible the
customer’s money stays within the government-owned postal system. So, a
customer opening a savings bank account with IPPB will be given the option to
also open a linked POSB account. The IPPB has been set up under the Department
of Posts (DoP) as a public limited company wholly owned by the government of
India. The DoP received ‘in-principle’ RBI approval to set up payments bank in
August 2015.
The
POSB currently offers investment options, including savings bank account,
recurring deposit account, time deposit, monthly income scheme, senior citizens
savings scheme, and public provident fund, to small investors. These services
are offered as an agency service for the Finance Ministry.
As
per RBI guidelines, payments banks can accept demand deposits — current
deposits and savings bank deposits from individuals, small businesses and other
entities. They can neither accept fixed deposits and NRI deposits nor can they
give loans.
The
primary objective of a payment banks is to further the cause of financial
inclusion by providing small savings accounts and payments/remittance services
to migrant labour workforce, low-income households, small businesses, other
unorganised sector entities and other users.
Among
the reasons cited by banking industry experts for mainstream banks to pick up
stakes in entities having ‘in-principle’ RBI approval to start payments banks
are to provide their banking expertise, the opportunity to tap deposits exceeding Rs.1
lakh, and cross-selling loans.
For
example, Reliance Industries and State Bank of India have signed an agreement
to set up a payments bank with equity contribution of 70 per cent and 30 per
cent, respectively. Kotak Mahindra Bank has acquired 19.90 per cent stake in
Airtel Payments Bank.
IPPB operation through Postman
India Post Payment bank gives the facility for its customers especially in
rural areas to deposit or withdraw the money from their IPPB account without
going to the IPPB branch. The Postman will operate the accounts with help of
bio metric device at the door step of customers.
How does NREGA Payment work in IPPB using Biometric Device
The
workers’ remuneration will be credited to their respective Aadhaar lined IPPB
accounts. The beneficiary can withdraw the money using biometric device even
without filling a withdrawal form.
What is Voice Banking Service in India Post Payment Bank (IPPB)
India
Post Payment Bank (IPPB) gives the facility for its customers especially in
rural areas to deposit or withdraw the money from their IPPB account without
going to the IPPB branch. The Postman will operate the accounts with help of
bio metric device at the door step of customers. Watch the two videos below for
better understanding.
What is Voice Banking Service in India Post Payment Bank (IPPB)
Voice
Banking Service is a mobile based banking service in which person can do
banking operation with the help automated voice system. A person can transfer
money between IPPB accounts through this system. The following video will show
you clearly What is Voice Banking Service in India Post Payment Bank (IPPB) and
how it works.
18 October 2016
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