What is Indian Post Payments Bank (IPPB)

Indian Post Payments BankIndian Post Payments Bank (IPPB) is established as public limited company under Department of Posts. It has 100% equity from Government of India. It was launched on 1st September, 2018 in New Delhi. It began its operations with 650 branches and 3250 access points. It will help realise the vision of making banking available at people’s doorsteps.

Objective of Indian Post Payments Bank (IPPB)

IPPB is established with the objective to provide low cost, quality and simple financial services.

Features of IPPB

  • Around 1.55 lakh post offices will be linked to IPPB system by December 31, 2018.
  • All saving accounts are zero balance accounts.
  • Maximum balance of Rs 1 lakh can be maintained in the account.
  • 4% interest is given on saving account.
  • Comes with Free ATM card
  • Can open current account
  • Can offer services like Micro ATMs, Mobile banking app, IVRS, offer remittance services, net banking, sms banking etc.
  • It is not allowed to provide lending services like making advances or loans or issuing credit cards.

Tie-ups of IPPB

  • IPPB is allowed to distribute third party products like Insurance, Mutual Funds, Pension products etc.
  • It has tied up with PNB Metlife and Bajaj Allianz to sell insurance products.
  • It can act as Business Correspondent (BC) to other banks. It facilitates credit in rural areas.

Types of Accounts

All savings accounts of IPPB are zero-balance accounts. Basically IPPB offers three types of saving accounts:

  1. Regular Saving Account: There is no deposit/withdrawal limit in this type of account.
  2. Digital Saving Account: This type of account is opened through mobile app.
  3. Basic Saving Account: There is restriction of four withdrawals in a month in basic saving account.

If the balance in account exceeds Rs 1 lakh then the account is automatically converted to Post Office saving account.

Doorstep Banking

  • Postman or Gramin Dak Sevaks (GDS) can make cash and digital transactions at ease of home by using QR card that account holder gets with the account.
  • Charges: These services are not provided free of cost, but a minimal fee is charged:
    • Rs 25 for cash transaction at home
    • Rs 15 for digital transaction at home


The current MD and CEO of IPPB is Suresh Sethi.

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