India Post To Launch Payments Bank Today, Offers 5.5% RoI

The Indian postal department or India Post will be launching its payments bank today in two states – Jharkhand and Chhatisgarh. With this India Post will be the second entity to launch a payments bank in the country, Airtel was the first to launch such a service in November.

The India Post Payments Bank or IPPB will be launched on a pilot basis in Chattisgarh and Jharkhand in their respective state capitals- Raipur and Ranchi, and will be inaugurated by Union Finance Minister Arun Jaitley and Union Minister of Communications Manoj Sinha.

“Starting of this payments bank will spread the chain of banks in the villages across the country,” stated Prime Minister Narendra Modi.

To start with the payments bank offers services like opening of savings and current accounts and can deposit money up to Rs 1 lakh. The account holders can do all kind of digital transactions like fund transfer, bill payments etc. The bank will also start offering other services like insurance, mutual funds, pension, credit products and forex.

IPPB or the payments bank will offer rate of interest of up to 5.5% on the deposits in the savings accounts and it varies depending on the amount deposited. The rate of interest starts from 4.5%. Airtel that started country’s first payments bank, however, offers interest of 7.25% on the savings account irrespective of deposit amount.

India Post, a household name and having reach to the remotest part of the country, had got approval along with other 10 entities, to launch a payments bank. The department has partnered with Punjab National Bank to offer the banking services.

The sole government-run payments bank is planning to role out these services in almost every part of the country in coming times and offer all kind of financial services to its customers. The payments bank also plans to hire around 3500 people to augment its services.

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