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

Remember when you would send money orders via India Post? Payments through the post are back but in a different way! Our very own India Post has launched a payments bank and you can open an account with them too! India Post Payments Bank (IPPB) is set to revolutionize the way we see banking and money transactions in India.

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 will help 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 harbor for handling your money. With over Rs. 1450 Crores worth of investment and about 650 branches which become the controlling hub for over 1.55 lakh post offices PAN India; empowering rural India, with a click of a button, now seems like a reality.

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 enable 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:

With a no-minimum balance and a nominal deposit of Rs. 100 to open a regular savings account; and no nominal deposit for the other accounts helps simply life for budding entrepreneurs and MSMEs.

8. Free/almost free services:

All transactions at India Post and PNB ATMs are absolutely free of cost. The first issuance of debit cards is free, and the subsequent issuance will cost you a nominal fee of Rs. 100. The first four transactions at the bank branches are free and the subsequent transactions will cost you Rs 20, per transaction. The first 3 ATM transactions in metro cities and first 5 transactions in non-metro cities are free of cost and the 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:

With a wide range of services to offer, IPPB primarily offers banking, domestic remittance services, direct transfers and doorstep banking. Remittance transfers include NEFT, IMPS, AEPS and UPI, to name a few; making it an inexpensive and secure medium for digital transactions.

Instamojo also offers a wide range of payment services to help empower SME’s and entrepreneurs across the country. Instamojo payment links allow you to send and receive money in just a couple clicks!

With Instamojo NEFT, you don’t need to share your bank account details with the customer. What more? Track your transactions and payments on our dashboard to help you gain insights into your day-to-day transactions!



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