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Prime Minister Modi to launch Indian Post Payments Bank on August 21. How can you use it?

Prime Minister Modi to launch Indian Post Payments Bank on August 21. How can you use it?

Prime Minister Modi to launch Indian Post Payments Bank on August 21. How can you use it?
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By CNBC-TV18 Aug 7, 2018 2:05:47 PM IST (Published)

Prime Minister Narendra Modi on August 21 will launch the Indian Post Payments Bank (IPPB) and its mobile application.

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The IPPB will have at least one branch in every district and focus on financial services in rural areas, a senior official had told PTI, adding that two branches of the bank are already operational.
"Rest of the 648 branches will be launched across the country in every district,” he added.
IPPB started its operations on January 30 last year by opening two pilot branches in Raipur and Ranchi.
The IPPB is a payments bank, a platform similar to Paytm and Bharti Airtel's Airtel Payments. Payments banks can accept deposits up to Rs 1 lakh per account from individuals and small businesses.
The IPPB will be used by the government to distribute Mahatma Gandhi National Rural Employment Gurantee Act (MGNREGA) wages, subsidies, pension, etc.
How can one you use it?
Since it is similar to Paytm, it is not much of a hassle for the users to make payments or transfer money. Once the app is downloaded, the user can pay their electricity, DTH bills, recharge their phones, pay educational fees, among others which are included in the system of National Payments Corporation of India (NPCI).
The user can also use banking facilities such as RTGS, NEFT and IMPS to transfer money to a specific bank account.
The customer can enter the account details of the payee and can choose the banking facility to transfer the amount through the app.
For digital transactions, the customer will be charged Rs 15 per transaction.
Just like a bank, one can also open a savings account. There are two options for that. One, a regular account which can open by using the 'Doorstep Banking' method. But that account allows only four transactions in a month. The second option is the digital one which can be done on the app.
In the Doorstep Banking method, the IPPB employee will reach the interested individual's doorstep for completing formalities to open the account and as when the individual requires liquid cash from the account, the employee will deliver the money in the customer's doorstep.
For cash withdrawals, the IPPB will charge Rs 25 per transaction.
One can also opt for insurance, loan and investment schemes through the account. The customer can request for their account statement by updating PAN card details.
There is also options for mobile banking, SMS banking, missed call banking and phone banking. Every account holder will get a QR card.
One can use the card for shopping, etc., by scanning the QR code on the card and authorise the transactions by using biometric information. Customers can also do cash transactions, money transfer, bill payments using this card.
No need to remember a PIN or a password as the transactions for the QR card is based on your biometric information.
To avail the missed call banking feature, one can register their mobile number by giving a missed call on 8424054994 from the mobile number linked to the savings or current account.
After that the customer can avail the balance enquiry feature by giving a missed call on - 8424046556 and the mini statement on - 8424026886
With IPPB in place, people in rural areas will be able to avail digital banking and financial services, including money transfer, to any bank account either with help of a mobile app or by visiting a post office.
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