NEW DELHI: India Posts Payments Bank services are expected to be
available across the country by April, Communications Minister Manoj
Sinha today said.
"(India Posts) Payments Bank branches will be opened across 650
districts by around April. All these branches will be linked to rural
post offices. This will be largest banking network in the country,"
Sinha said on the sidelines of the launch of Deen Dayal SPARSH
scholarship scheme
The IPPB branches are operational in Raipur and Ranchi. It will use post
offices for its operations. There are 1.55 lakh post offices in the
country.
In the private space, Airtel Payments Bank, launched in January this
year, started operations with a network of 2.5 lakh merchants. Chinese
internet firm Alibaba controlled Paytm also started payments bank
operations this year.
Payments banks can accept deposits of up to Rs 1 lakh per account from individuals and small businesses.
The new model of banking allows mobile firms, supermarket chains and
others to cater to banking requirements of individuals and small
businesses.
Payments banks are set up as differentiated banks and will confine to
accepting demand deposits, remittance services, Internet banking and
other specified services.
IPPB offers an interest rate of 4.5 per cent on deposits up to Rs
25,000; 5 per cent on Rs 25,000-50,000 and 5.5 per cent on Rs
50,000-1,00,000.
