New Delhi, January 30: After Airtel and Paytm, Indian post office gets a license from the Reserve Bank of India to kick start its commercial payment banking operations. Post Payments banks plans to set up 650 branches and becomes the third entity to get nod to set up the payments bank system. Taking a giant leap toward cashless economy, nation’s first ‘India Post Payment Bank’ will start its service from Monday in Ranchi.The Department of Post Official said that “India Post has received payments bank license. The service will be launched as per schedule. The main objective behind payments banks is to achieve financial inclusion. Payments banks can accept deposits up to Rs1 lakh per account from individuals and small businesses. It will be set up as a differentiated bank and will confine its activities to acceptance of demand deposits, remittance services, Internet banking and other specified services.
India Post Payments Bank (IPPB) will offer demand deposits such as savings and current accounts upto a balance of Rs 1 Lakh, along with digitally enabled payments and allowance services of all kinds between entities and individuals. In due course, IPPB will also provide access to third party financial services like insurance, mutual funds, pension, credit products and more. Fully fledged operations are expected to be started before the end of March 2017. IPPB will offer banking services through digital channels like mobile and internet banking platforms, UPI, debit cards, ATMs, PoS and MPoS.
A Payment Bank is a new concept by the Reserve Bank of India that can accept a restricted deposit which is currently limited to Rs 1 lakh per customer. These banks cannot issue loans and credit cards. Both current account and savings accounts can be operated by such banks. Payments banks can issue services like ATM cards, debit cards, online banking and mobile banking. Besides Airtel, Vodafone, Reliance Industries, Idea Cellular, Paytm, FINO Paytech, India Post and National Securities Depository Limited have all received Payments Banks licenses from Reserve Bank of India.