Payment Banks are becoming popular in India. Names like Paytm Payments Bank and Airtel Payments Bank, Jio Payments Bank and India Post Payments Bank. Given the overwhelming presence and influence of India Post, it makes sense to look at what India Post Payments Bank has to offer. And interestingly, it has much to offer as outlined in the article below. Team RetyrSmart
India Post Payments Bank — What’s good with it?
As per the guidelines for Payment Banks, they cannot accept deposits of more than Rs 1 lakh from one account holder and are not allowed to lend money. However, they may provide all other services such as ATM card, fund transfer, bill payments, recharges, net banking etc to the account holders.
Here we look at what India Post Payments Bank (IPPB) has to offer to someone looking to open a savings account with them.
Currently, there are two types of savings account that can be opened in India Post Payments Bank (IPPB) — Regular savings account and a Basic Savings Bank Deposit Account (BSBDA).
The highlights of the Regular Savings Account include several things to boast about. One can get the account opened at home, all paperless and instantly without any opening balance. Also, there is no need to maintain a monthly average balance in the account. Further, one may get various services such as cash deposit or cash withdrawal at one’s doorstep.
A unique feature of India Post Payments Bank savings account is that its ‘ banking with QR card’. The account holder is not provided with a cheque book or a debit card. For making a cash deposit, withdrawal or any other account related activities such as bill payment, one has to use only the QR card. The biggest advantage of the QR card is that one need not remember the account number or any password to undergo banking activities as the authentication can be done using the biometrics of the account holder.
In the savings account, the interest rate of 4 per cent per annum on end-of-day (EOD) daily balances gets paid quarterly. As all the Payments Banks are not allowed to keep more than Rs1 lakh in any of the savings accounts of their account holders, opening a payments bank account with IPPB helps. The IPPB savings account can be linked to Post Office Savings Account and the day-end balance above Rs. 1 lakh can be swept into linked PO Savings Account.
Anybody above 10 years with KYC can get the IPPB account opened and the account comes with nomination facility. While doorstep opening of the account is free any other service at the doorstep is chargeable at nominal charges of Rs. 15 and Rs. 25 for digital and cash-based transactions respectively. For example, one may call for Bill Payment, which is free but the doorstep charges will apply.