India Post Payments Bank (IPPB) has recorded an over twofold increase in transactions since the beginning of the pandemic last year, even as payments banks have in general been struggling to find a viable business model.
The government-owned lender on average records about 1 million transactions daily. It may now create a platform for digital services with India Post’s network.
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By GlobalDataThis number of transactions has phenomenally grown since the Covid outbreak that crippled usual peoples movement, India Post Payments Bank managing director J Venkatramu told ET.
In the past 15 months, numerous customers used the digital life certificate platform that appeared to be a big relief for senior citizens, who could not move out due to health hazards and lockdown restrictions, he said.
Digital life certificate, which enables senior citizens to upload their proof of life for any pension scheme, instead of appearing in person before the authorities, is among several citizen services the payment bank introduced a few months ago.
Great synergy
“A synergy between India Posts’ huge network and our digital technologies can create wonders in the rural banking space,” Venkatramu, who can also be its chief government, mentioned.
Post workplace clients have the ability to switch funds on-line from their IPPB account to totally different schemes of submit workplace like PPF, Sukanya Samriddhi and recurring deposit without the necessity to go to a submit workplace.
A platform could now be created for the digital companies with India Posts’ community anchoring the identical.
“Aadhaar will be our key focus area for such a digitisation plan,” said Venkatramu.
The financial institution has already put in place an assisted digital service platform providing varied primary banking companies by way of the Grameen Dak Sevaks of India Post.
Services available
The IPPB, launched by PM Modi in 2018, is an initiative of the government aimed at making banking services available at people’s doorstep. This payments bank of the Indian postal department works through a network of post offices. The services of IPPB is available at 650 branches and 3,250 access points.
The IPPB operates on a smaller scale as compared to other banks and will not advance loans or issue credit cards to avoid risk. Performing the rest of its functions, it will accept deposits, offer remittance services.
It handles mobile payments, transfers, purchases and other banking services like ATM and debit cards, as well as net banking and third-party fund transfers.
IPPB has teamed up with PNB and Bajaj Allianz Life Insurance for loans and insurances.
