10 Ways India Post Payments Bank (IPPB) Helps MSMEs Grow

10 Ways India Post Payments Bank (IPPB) is Empowering Rural MSMEs

Remember when you would send money orders via India Post? Payments via post are back but in a different way! Our very own India Post has a payments bank that you can open an account with.

The India Post Payments Bank was incorporated as a public sector company under the Department of Posts in January 2017. It is governed by the Reserve Bank of India and comes under the Ministry of Finance.

India Post Payments Bank helps millions of rural MSMEs in India have a bank account. IPPB offers 3 types of distinct accounts, which are tailored to suit the requirements of its customers. They are:

  1. Regular Account – Safal
  2. Basic Savings Bank Deposit Account (BSBDA) – Sugam
  3. BSBDA Small – Saral

With a potential target of reaching out to more than 80 million users in the next 5 years, IPPB focuses on creating a safe harbour for handling your money.

Over INR 1450 Crores worth of investment, 650 branches and a total of 1.55 lakh post offices PAN India – India Post empowers MSMEs in just a button click now.

Everything India Post Payments Bank offers:

1. Simple. Affordable. Efficient. Convenient:

IPPB transactions are easy to understand, user-friendly and allow for an inclusive banking experience, defying geographical boundaries.

2. Third-party financial transactions:

Be it insurance, mutual funds, pension, credit products or even Forex, IPPB has you covered.

3. Lucrative offerings:

With 3 types of savings accounts which are tailored to fit the customer needs, India Post Payments Bank also offer services such as ATM cards, debit cards, net-banking and mobile banking, making it one of the easiest last-mile financial inclusions in India.

4. Getting rural India into the banking system:

India Post Payments Bank gives postmen smartphones to help customers with mobile banking. With over 90% of India’s post offices set-up in rural areas, IPPB is tapping into the vast ecosystem which is currently plagued with the technology-deficit.

5. Empowering MSMEs:

Have a small employee base? Open salary accounts for your employees and enables a more accountable and transparent salary transaction. With good interest rates, this bank is a better option in comparison to other private and public sector banks. Simpler KYC norms, easy banking services, zero balance accounts and a low risk of fraud, makes it an ideal option for small and medium enterprises.

6. User-friendly eligibility requirements:

Any individual who is above 10 years of age is eligible to open an account with IPPB.  With KYC verification, the process also ensures for safe and secure transactions.

7. Free/Nominally charged banking services:

Offers also include a no-minimum balance, a nominal deposit of Rs. 100 to open a regular savings account and no nominal deposit for the other accounts.

8. Free/almost free services:

All transactions at India Post and PNB ATMs are free of cost. The first issuance of debit cards is free, and the subsequent issuance will cost you a nominal fee of Rs. 100.

Bank branch transactions: – The first four transactions are free and the subsequent transactions will cost you Rs 20 per transaction.

ATM Transactions: – The first 3 transactions in metro cities and first 5 transactions in non-metro cities are free of cost. Subsequent transactions will cost you Rs. 20 per transaction.

9. Easy deposits and withdrawals:

With a maximum balance of Rs. 1 lakh at a time and withdrawals of Rs. 10,000 per transaction and Rs. 25,000 per day, this is an easy alternative to mainstream banking.

10. Services:

IPPB primarily offers services like banking, domestic remittance services, direct transfers and doorstep banking. Remittance transfers include NEFT, IMPS, AEPS and UPI – making it an inexpensive and secure medium for digital transactions.

The India Post Payments App: How to use the IPPB app to access your savings account

A recent ET article stated that the India Post Payments Bank has introduced an app for its investors. The ‘IPPB mobile app’ allows them to access their post office savings account.

How do you get the IPPB mobile app?

You can download the app from the Google play store or App Store for all devices.

  1. This app can only be used by customers who have an account in a core banking enabled post office.
  2. You need to complete your KYC details and upload it before. The account should have internet banking and mobile banking services enabled.
  3. If you do not have mobile and internet banking enabled, then you must fill up a form and submit it in the post office to get them enabled.

With the IPPB app, you can view your:

  • Account balances
  • Bank statements
  • Request for a cheque book
  • Stop payment on a cheque
  • Transfer funds within the bank or to other accounts
  • Pay utility bills

You can open a savings account by:

  • Click on ‘Open your account now’ tab
  • Enter the mobile number and PAN.
  • An OTP will be sent to your mobile device for verification. Enter OTP and update your Aadhar details.

Instamojo also offers a wide range of online payment services to help empower SMEs and entrepreneurs across India. Just like the IPPB app, you can download and use the Instamojo Android app to collect payments on the go – take your business everywhere and keep track of your payments easily!


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