Saturday, 31 December 2016

Instructions from CPC(CBS) on Interoperable ATM in DOP

Date : 31.12.2016

Instructions from CPC(CBS) on Interoperable ATM in DOP


Dear All,
As you are aware DOP ATMs are interoperable, however still under observation for a week. As many ATMs were not online/kept open, patches pushed centrally by switch team could not be deployed in such ATM sites. Due to this non DOP ATM cards are not working in those ATM locations.

As per directorate orders all the DOP ATMs should be functioning and kept open 24X7. Hence, kindly instruct all the ATM site located SOLs to personally check the ATM screen by using other bank ATM cards and do some sample transactions. If the other bank cards are not functional in those ATMs please consolidate such ATM location details with ATM ID and SOLID for taking up the issue with respective vendor for early rectification by 02/01/2017 1100 hrs positively.

Thanks & regards,
Incharge Operations, DOP ATM Unit
CBS-CPC, 4th Floor, Bengaluru GPO Building
Bengaluru-560001
080-22850173, 18004252440


Note:

Previously, people with accounts in postal department can only use the services of the India Post ATMs.

Today Reserve Bank of India (RBI) has approved the India Post's proposal for interoperability of its ATMs with other banks.

Equipped with a wide network of core banking solution (CBS) branches, Pensioners and other savings bank account holders, including Monthly Income Scheme (MIS) account holders with the postal department need not hence-forth wait in long queues for withdrawal of cash. They could withdraw up to a maximum of Rs.10,000 at a time from any ATM in India with the ATM cards issued to them. 

HAPPY NEW YEAR 2017

Date : 31.12.2016

HAPPY NEW YEAR 2017 TO ALL VIEWERS



Good News ! We Can Now Use POSB ATM Card In Any Bank ATM

Date : 31.12.2016

Good News ! We Can Now Use POSB ATM Card In Any Bank ATM





Previously , people with accounts in postal department can only use the services of the India Post ATMs.

Today Reserve Bank of India (RBI) has approved the India Post's proposal for interoperability of its ATMs with other banks. 

Equipped with a wide network of core banking solution (CBS) branches, Pensioners and other savings bank account holders, including Monthly Income Scheme (MIS) account holders with the postal department need not hence-forth wait in long queues for withdrawal of cash. They could withdraw up to a maximum of Rs.10,000 at a time from any ATM in India with the ATM cards issued to them.

Friday, 30 December 2016

Cash withdrawal from ATMs – Enhancement of daily limits

Date : 31.12.2016

Cash withdrawal from ATMs – Enhancement of daily limits

RBI/2016-17/204
DCM (Plg) No. 2142/10.27.00/2016-17

December 30, 2016

The Chairman / Managing Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks/
Regional Rural Banks / Urban Cooperative Banks/ State Cooperative Banks
District central Cooperative Banks
Dear Sir,

Cash withdrawal from ATMs – Enhancement of daily limits

Please refer to our circular DCM (Plg) No. 1424/10.27.00/2016-17 dated November 25, 2016 on “Withdrawal of cash from bank deposit account - Relaxation”.

2. On a review of the position, the daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 01, 2017, from the existing ₹ 2500/- to ₹ 4500/- per day per card. There is no change in weekly withdrawal limits. Such disbursals should predominantly be in the denomination of ₹ 500.

3. The relaxation of withdrawal limits as enabled by our circular DCM (Plg) No. 1437/10.27.00/2016-17 dated November 28, 2016 remains unchanged.

4. Please acknowledge receipt.

Yours faithfully,

(P Vijaya Kumar)

Chief General Manager

RTI regarding the workload points of the GDS in AP & Telangana Circle - Video Conference with CH.Laxmi Narayana ,President NUGDS.

Date : 30.12.2016


RTI regarding the workload points of the GDS in AP & Telangana Circle  - CIC Video Conference with CH.Laxmi Narayana ,President NUGDS.   


CPIO clearly clarified in the Video Conference with Central Information Commissioner and CH.Laxmi Narayana on 21.12.2016 at Guntur Collectorate Office that no GDS employees should work beyond 5 hours. If any such GDS officials working beyond 5 hours no extra payment will be paid.


 In these circumstances I appeal all the GDS officials not to work beyond 5 hours as the GDS are not going to get any extra benifit. It is an appeal to all GDS that each and every GDS official should take into criteria regarding working hours. This effort is made for all GDS brothers and sisters by NUGDS.


 NUGDS RTI Application to Directorate
 (CPIO )





CPIO reply to NUGDS






NUGDS application to First Appellate Authority (FAA)





FAA reply to NUGDS






NUGDS Application to Central Information Commission  - Second Appeal (CIC)

 CLICK HERE  TO VIEW THE SECOND APPEAL


CIC reply for final hearing to NUGDS. (Video Conference).







Representation to CIC  made by CH.Laxmi Narayana ,President NUGDS

CLICK HERE TO VIEW the representation made by CH.Laxmi Narayana , President NUGDS


A Video Conference with Hon'ble Central Information Commissioner Sri.Basanth Seth was held on 21.12.2016 at Collectorate Office , Guntur ,Andhra Pradesh. Mr .CH.Laxmi Narayana ,All India President NUGDS was attended the Video Conference with releated discussion by Sri D.Kishan Rao G/S NAPE Group -C , Sri.D.Theayagarajan SG ,FNPO ,Sri .Vasireddy Sivaji Org.Secretary ,NAPE Group - C CHQ ,Sri.L.Krishna Prasad Regional Representative ,Visakhapatnam .


Final Decision of the Central Information Commissioner






CH.Laxmi Narayana 


President,NUGDS







Ms.Usha Chandra Sekhar CPMG ,Karnataka Circle was posted as Member (Operations),Postal Services Board.Sri.Ashok Kumar Dash Member(Personnel ) was posted as Member (PLI). Ms.Achla Bhatnagar Member (PLI) was posted as Member (Personnel).

Date : 30.12.2016

Ms.Usha Chandra Sekhar CPMG  ,Karnataka Circle was posted as Member (Operations),Postal Services Board.Sri.Ashok Kumar Dash Member(Personnel ) was posted as Member (PLI). Ms.Achla Bhatnagar Member (PLI) was posted as Member (Personnel).



Sri.Ashutosh Tripathi ,Director General Postal Services , is retiring on superannuation from Government service w.e.f.31.12.2016

Date : 30.12.2016

Sri.Ashutosh Tripathi ,Director General Postal Services , is retiring on superannuation from Government service w.e.f.31.12.2016

.

Promotion to the grade of Director General Postal services in the Department of Posts

Date : 30.12.2016


Promotion to the grade of Director General Postal services in the Department of Posts.


Shri T. Murthy Member (O) Postal Services Board promoted and posted as Director General of Department of Posts


Thursday, 29 December 2016

30-12-2016 is the last date for accepting the old 500-/1000- currency notes.

Date : 29.12.2016

 30-12-2016 is the last date for accepting the old 500-/1000- currency notes.   
                              
Every single note of old 500/1000 currency should reach the HOs / cash offices having link with banks, by the day end of 30-12-2016 for remitting the same to Banks.

Bankers will not accept the said currency after 31-12-2016.


Please check up and act accordingly to avoid burden on individulas.

Allotments and Postings in PS Group B cadre

Date : 29.12.2016


Allotments and Postings in PS Group B cadre

CPMG, AP Circle has ordered the following Allotments / Posting sin PS group B cadre vide memo no ST/12-1/2016/II dated 

Sl no
  Name
 Working at present
Place of  Allotment / Posting
1
K.Latchumu Naidu
PLI Directorate
Visakhapatnam Region
2
J.R.Prasad
Vijayawada region
Visakahapatnam Region
3
Arbind Panda
Visakhapatnam region
SPOs Vriddhachalam  Dn  Central region, TN Circle

Wednesday, 28 December 2016

Comments/suggestions invited from the members of public on the Report of the Committee on Digital Payments within 15 days of hosting the Report on the website

Date : 28.12.2016


Comments/suggestions invited from the members of public on the Report of the Committee on Digital Payments within 15 days of hosting the Report on the website 



After approval of the Cabinet, the Guidelines for the promotion of payments through cards and digital means were issued on February 29, 2016. Among the steps to be taken was the constitution of the Committee by the Department of Economic Affairs (DEA), Ministry of Finance with key industry stakeholders, RBI and concerned Government Departments to review medium term measures necessary to promote the digital payment system in the Country. Accordingly, a Committee was constituted under the Chairmanship of Shri Ratan P. Watal, Former Finance Secretary and Principal Advisor, NITI Ayog on August 23, 2016. The Committee has submitted its Report, which is uploaded on the website of the Ministry of Finance at http://finmin.nic.in.

Comments/suggestions from the members of public are requested within 15 days of hosting the Report on the website of the Department of Economic Affairs, Ministry of Finance. Decision on the Report will be taken after considering the comments/suggestions received on the Report.

Feedback/comments on the said Report may be sent to the Coin and Currency Division of the Department of Economic Affairs, Ministry of Finance at currency-dea@gov.in within 15 days from the date of uploading of the said Report.

The Report of the Committee is also attached herewith for information and reference of public at large.

Viral Acharya appointed as RBI deputy governor

Date : 28.12.2016

Viral Acharya appointed as RBI deputy governor



Viral Acharya, like former RBI governor Raghuram Rajan, comes from an academic background.

Viral Acharya was appointed by the Government on Wednesday as the deputy governor of the Reserve Bank of India. He will be joining the ranks of Vishwanathan, S S Mundra, R Gandhi as one of four deputy governors serving under RBI Governor Urjit Patel. Mundra and Gandhi had served under former RBI governor Raghuram Rajan, while Vishwanathan was appointed during Patel’s tenure.


Acharya, like Rajan, comes from an academic background. Before his appointment to the RBI, he has been serving as CV Starr professor of economics at the New York University Stern School of Business since 2008. According to his profile on the NYU site, Acharya’s research interests lie in ” the regulation of banks and financial institutions, corporate finance, credit risk and valuation of corporate debt, and asset pricing with a focus on the effects of liquidity risk.” His papers have been published in renowned finance journals. He was the recipient of numerous awards, the latest was the ‘Rising Star in Finance Award’.

In an interview to Bloomberg Quint back in October, Acharya, when asked about his assessment of the Indian economy, said that it is on the path of recovery and ratifying the GST bill was a “big positive”. An alumnus of IIT, Mumbai, with a degree of Bachelor of Technology in Computer Science and Engineering in 1995 and PhD in Finance from NYU-Stern in 2001, Acharya was with London Business School (2001-08) and served as the Academic Director of the Coller Institute of Private Equity at LBS (2007-09) and a Senior Houblon-Normal Research Fellow at the Bank of England (Summer 2008).


with PTI inputs.

Law Ministry rejects Finance move to link small savings to Aadhaar

Date : 28.12.2016


Law Ministry rejects Finance move to link small savings to Aadhaar



Ahead of launching the demonetisation drive, the Finance Ministry had sought Law Ministry’s opinion whether Aadhaar submission could be made compulsory for small savings scheme.

The Law Ministry has turned down Finance Ministry’s proposal that a person investing in small savings schemes — these attract gross deposits of over Rs 2 lakh crore each year — be made to link the accounts to his or her Aadhaar number.
Ahead of launching the demonetisation drive, the Finance Ministry had sought Law Ministry’s opinion whether Aadhaar submission could be made compulsory for small savings schemes like Kisan Vikas Patra, Public Provident Fund, National Savings Certificate, Senior Citizen Saving Scheme and Sukanya Samriddhi Yojana.
The rationale put forth by Finance Ministry’s Department of Economic Affairs (DEA) was that individuals evade scrutiny by parking cash below Rs 50,000 into multiple small savings accounts because such deposits (below Rs 50,000) do not seek permanent account number (PAN) details.
The Law Ministry turned down DEA’s proposal on October 4 saying such schemes cannot be notified as “service within the meaning of Section 7 of the Aadhaar Act” since small savings are serviced under the Public Account Fund of India and not the Consolidated Fund to which the Aadhaar Act applies.
Section 7 of the Act states that the government can ask an individual to furnish his Aadhaar number to establish his identity “as a condition for receipt of a subsidy, benefit or service for which the expenditure is incurred from, or the receipt therefrom forms part of, the Consolidated Fund of India”.
Not satisfied with the legal opinion, the DEA once again approached Law Ministry to reconsider the October 4 advice, saying that the fresh reasoning for bringing small savings under the Aadhaar ambit was that the “expenditure incurred to campaign for small savings scheme was derived from the Consolidated Fund”.
On December 14, Law Ministry reiterated its earlier opinion and directed that all transactions relating to these schemes should be accounted from the Public Account Fund as per the National Small Savings Fund (Custody & Investment) Rules.
Quoting a 2001 order of a Constitution Bench of the Supreme Court, the Law Ministry said “when a statute vests certain power in an authority to be exercised in a particular manner, the said authority has to exercise it only in the manner provided in the statute itself”.
In fiscal 2014-15, deposits in small savings schemes were Rs 289,080 crore while withdrawals were Rs 248,667 crore.
Source: Indian express.

Tuesday, 27 December 2016

What are the Products and Services of IPPB or India Post Payment Bank

Date : 27.12.2016

What are the Products and Services of IPPB or India Post Payment Bank

IPPB is a public limited company under the Department of Posts with an independent Board of Directors. It will be headed by a Managing Director and CEO, and will set up a corporate head quarter and up to 650 branches to manage its functions on a day to day basis.               

 IPPB will leverage the physical and IT infrastructure of the Post office and be set up on a lean operating model. It will focus on low-cost, low-risk, technology based solutions to extend access to formal banking.

      1.   IPPB Payment Services

IPPB will provide the benefits of payments and remittances to the customers, by adopting newer, efficient processes and technologies such as mobile based payments, digital wallets and innovative payment and remittance products that are continuously emerging in the market today.

Combined with doorstep cash payment options like traditional money orders, IPPB will differentiate itself from the other players while comparing well with all other benefits offered by competitors.

IPPB will drive the benefits of financial inclusion by bringing a host of financial products to suit the needs of different strata of society with special focus on the marginalized sections and citizens in rural areas. In so doing it will also provide the following proposed services:

•    Direct Benefits transfer (DBT) of social security payments of various Ministries.

•    Utility bill payments for electricity, water, telephone, gas etc.

•    Facilitate payments of various Central and State Govt& Municipal dues, taxes and fees/taxes of various Universities/ educational institution.

•    Person to person remittances both domestic and cross-border. Special focus will be on providing, economical, safe and convenient money transfer facilities to migrant labourers, NRIs remitting money to relatives, institutions etc.

•    Demand Deposits (Current account and Savings Account)- with special focus on MSMEs, small entrepreneurs, village panchayats & SHGs.

•    Distribution of third party financial products such as Insurance (health & general), mutual funds and pension products.

•    Access to formal credit products by acting as BCs of banks & MFIs.

Product innovation will be a continuous exercise to expand the bouquet of services adapting to the evolving needs of its customers and the rapid advancements in communication and payments technologies.

2.   IPPB Banking Services

Apart from savings account with up to INR 1,00,000 in deposit, the products offered by IPPB are different from POSB products. POSB savings accounts do not have any limit unlike payments bank savings account. On the other hand, payments banks, can offer current accounts for use by businesses and institutions whereas POSB does not offer these accounts. Other kinds of deposits under POSB are unique to it and will not be on offer by the payments bank. The purpose of the savings accounts and current accounts of IPPB is to facilitate flow of money and payments of different kinds from Government to Citizen, Citizen to Government, Citizen to Citizen, Citizen to Businesses and Businesses to Citizens whereas the POSB accounts are mainly savings instruments.

Apart from the existing customers of the DoP, IPPB will focus on the underbanked and unbanked population in different parts of the country. It will also try to target services for MSMEs, senior citizens, students, migrant population, low income households, unorganized sector and other groups with special service requirements. In addition to its own products, the payments bank will partner with third parties to offer a wide range of financial and banking services to cater to the needs of its target segments.

The customers will have the choice of the amount they want to leave in their IPPB account at any point of time and they will earn interest on their money in these accounts also. They would be able to channel money from their IPPB accounts to any of the POSB schemes. For example, an IPPB customer will be able to use money in his account to open and service a RD/ TD/ SSY or any other POSB account. Thus, both IPPB and POSB can synergistically serve the customers.

Monday, 26 December 2016

India Post Payments Bank (IPPB) - FAQ

Date : 26.12.2016


India Post Payments Bank (IPPB) - FAQ



FREQUENTLY ASKED QUESTION ON IPPB

Concept of Payments Bank

1. What is a Payments Bank?

A Payments Bank is a “differentiated bank” set-up under the guidelines issued on Nov 27, 2014 by the Reserve Bank of India (RBI) to further financial inclusion for the underserved population by providing (i) current and savings accounts and (ii) payments or remittance services to migrant labour workforce, low income households, small businesses, unorganised sector entities and other users. This is to be done by enabling high volume-low value transactions in deposits and payments or remittance services in a secure technology-driven environment.

Please click on this link for further details: 
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=32615 (RBI Guidelines)

2. Why is a Payments Bank required?
A vast majority of the rural population (over 60%, as per RBI), is still unbanked or underbanked. An easily accessible payments network and universal access to savings is fundamental to financial inclusion. At the same time, several non-banking entities such as the Department of Posts (DoP), prepaid payment instrument companies, business correspondent companies, etc., have had reasonable success in facilitating payments and other select financial services in urban areas. Their customers, however, face several limitations and difficulties arising out of their nonbanking status. Of particular note amongst these is the DoP which has a wide network and experience of handling financial transactions, but does not have a banking license. Given their potential to further the cause of financial inclusion, the RBI granted such entities a differentiated banking license, i.e. a payments bank license, which enables these entities to provide banking services other than credit. Credit and insurance are as integral to financial inclusion as are other banking services, and payments bank can offer these products as well but only in partnership with other banks/ insurers and on a non-risk sharing basis.

3. What is the scope and activities of the Payments Bank?

As per the RBI Guidelines, the payments bank will be set up as a differentiated bank and shall be permitted to set up its own outlets such as branches, Automated Teller Machines (ATMs), Business Correspondents (BCs), etc. to undertake only certain restricted activities permitted to banks under the Banking Regulation Act, 1949, as given below: 
  • Acceptance of demand deposits, i.e., current deposits, and savings bank deposits from individuals, small businesses and other entities, as permitted. The payments bank will be restricted to holding a maximum balance of Rs. 1,00,000 per individual customer. 
  • Issuance of ATM / Debit Cards. Payments banks, however, cannot issue credit cards. 
  • Payments and remittance services through various channels including branches, Automated Teller Machines (ATMs), Business Correspondents (BCs) and mobile banking. 
  • Issuance of PPIs as per instructions issued from time to time under the PSS Act. 
  • Internet and mobile banking - The payments bank is expected to leverage technology to offer low cost banking solutions. 
  • Functioning as Business Correspondent (BC) of another bank – a payments bank may choose to become a BC of another bank, subject to the RBI guidelines on BCs. 
  • As a channel, the payments bank can accept remittances to be sent to or receive remittances from multiple banks under a payment mechanism approved by RBI, such as RTGS / NEFT / IMPS. 
  • Payments banks will be permitted to handle cross border remittance transactions in the nature of personal payments or remittances on the current account. 
  • Payments banks can undertake other non-risk sharing simple financial services activities, not requiring any commitment of their own funds, such as distribution of mutual fund units, insurance products, pension
  • products, etc. with the prior approval of the RBI and after complying with the requirements of the sectoral regulator for such products. 
The payments bank may undertake utility bill payments etc. on behalf of its customers and general public. 

Please click on this link for further details: https://rbi.org.in/scripts/bs_viewcontent.aspx?Id=2900 (RBI Guidelines)

4. Are there any restrictions on payments banks as compared to other commercial banks?
Given that their primary role is to provide payments and remittance services and demand deposit products to small businesses and low-income households, payments bank will initially be restricted to holding a maximum balance of Rs. 1,00,000 per individual customer.

Payments banks cannot issue credit cards and cannot grant loan/ credit out of their own books of accounts.

Apart from amounts maintained as Cash reserve ratio (CRR) with RBI, Payments Bank will be required to invest minimum 75 percent of its demand deposit balances in Government securities/treasury bills with maturity up to one year and hold maximum 25 percent in current and fixed deposits with other scheduled commercial banks for operational purposes and liquidity management.

The payments bank cannot set up subsidiaries to undertake non-banking financial services activities. The other financial and non-financial services activities of the promoters, if any, should be kept distinctly ring-fenced and not comingled with the banking and financial services business of the payments bank.

The payments bank will be required to use the words “Payments Bank” in its name in order to differentiate it from other banks.

5. Has this model of Post office setting up a bank worked anywhere else in the world?
Postal operators are the leading financial services providers in over 75% of the countries around the world. Some of the Post Banks in the world have been highly successful, i.e. Japan, New Zealand, Switzerland, France, China, South Korea, South Africa, Morocco to name a few.

Department of Post

6. Why is DoP setting-up a payments bank?
DoP has been successfully running the Post Office Savings Bank for the Ministry of Finance. Setting up its independently owned bank is the next logical progression. Based on feasibility studies and a subsequent Detailed Project Report, the Department, in 2013, made an application to the RBI and a proposal to the Public Investment Board (PIB) to set up a universal bank. However, the Department was advised by the PIB to set up a “differentiated bank” under the relevant guidelines. Accordingly when the RBI came up with the guidelines for licensing of Payments Banks in November 2014, the Department of Posts made an application for the same and got the in-principle approval in September 2015 for setting up its payments bank.

The setting up of the payments bank is therefore necessary in view of current market realities and to ensure continued relevance of DoP’s products and services. Among other things, the decision to set up the payments banks comes in the wake of changes in the banking and payments landscape in the country. The payments bank will ensure that the banking and payments services offered through the postal network are well integrated and completely interoperable with the rest of the banking and payments ecosystem and will leverage new age technology in line with key technological advances in the banking sector such as unified payments interface (UPI).

7. What is the GOI’s outlook on DoP’s foray into banking?
In the Union Budget of 2015-16, the Honourable Finance Minister made the following announcement:

“The Government is committed to increasing access of the people to the formal financial system. In this context, Government proposes to utilize the vast Postal network with nearly 1, 54,000 points of presence spread across the villages of the country. I hope that the Postal Department will make its proposed Payments Bank venture successful so that it contributes further to the Pradhan Mantri Jan Dhan Yojana.”

In his Independence Day speech at the Red Fort, on 15th August 2016, the Hon’ble Prime Minister Shri Narendra Modi spoke about IPPB:

“The Post Office is an example of our identity. We have revived and rejuvenated our post offices. IT is now linked with the poor and small persons. If any government representative gets the affection of a common man in India, it is the postman. Everyone loves the postman and the postman also loves everybody, but we never paid attention towards them. We have taken a step to convert our post offices into payments banks. Starting with this, the payments bank will spread the chain of banks in the villages across the country in one go”

8. How will setting up the payments bank benefit DoP?
The payments bank will not only drive revenues for DoP but also help in maintaining DoP’s brand image and relevance in the current financial landscape that is evolving rapidly. For e.g. Utility bill payments services of the IPPB as a Bharat Bill Payment Operating Unit (BBPOU) will help DoP in increasing its market share in the utility bill payments space and provide technology driven services to customers. New age technology will enhance customer experience, provide more options and help in serving the larger cause and vision of the GOI i.e. to bring about financial inclusion for the vast unbanked and underserved population.

9. What will be the role and relationship of DoP with the proposed payments bank?
The payments bank will be 100% owned by the Government of India via DoP, and will have an independent board of directors with representation from DoP and other stakeholders from within the Government of India to ensure strategic alignment with the overall objectives of the DoP and the Government of India.

The post offices at different levels will be the main customer touch points for the bank’s services. A close liaison between the bank and DoP staff at the access points will be maintained on a regular basis at the branch level for success of the delivery model .

India Post Payment Bank (IPPB)

11. How many branches are likely to be opened?
IPPB is slated to have 650 branches at district headquarters. All post offices across the country will function as customer access points for IPPB.

12. What will be the USP for IPPB?
The latest payments and banking technology, easy to use interface, the trusted network of the post office and its dedicated staff with a local connect will be the USP of the IPPB. IPPB will bring in innovative services and interface for its target customer segments in all areas. The accessibility and ease of use of services through a combination of modern technology and the widespread DoP physical network, capable of providing door step services will make it a unique payments bank. Through a combination of physical and digital channels, payments bank will build the most accessible bank in the country especially in rural and underserved areas of the country.

13. How will IPPB employees be recruited? What are the various mechanisms through which they get selected?
Various options regarding the recruitment and selection of IPPB employees have been considered. These include deputation from DoP or other public sector banks, direct recruitment through IBPS, contractual arrangements for certain skilled staff positions etc.

DoP’s role in IPPB

14. How will IPPB function?
IPPB has been set up as a Public Limited Company under the Department of Posts with an independent Board of Directors. It will be headed by a Managing Director and CEO, and will set up a corporate head quarter and approx. 650 branches to manage its functions on a day to day basis. IPPB will leverage the physical and IT infrastructure of the Post office and be set up on a lean operating model. It will focus on low-cost, low-risk, technology led solutions to extend access to formal banking.

Products and Services

15. How will the products and services of IPPB be different from DoP’s payment and remittance products?
DoP payments and remittances products are based on the basic money order services adapted for the digital age. While IPPB will provide the same benefits of payments and remittances to the customers, by adopting newer, efficient processes and technologies such as mobile based payments, digital wallets and innovative payment and remittance products that are continuously emerging in the market today. Combined with doorstep banking transactions and easy to use mobile and internet banking options IPPB will significantly improve accessibility of its services. Additionally, IPPB products will be well integrated and inter-operable with the rest of the banking industry.

IPPB will drive the benefits of financial inclusion by bringing a host of financial products to suit the needs of different strata of society with special focus on the marginalized sections and citizens in rural areas.

Product innovation will be a continuous exercise to expand the bouquet of services adapting to the evolving needs of its customers technologies and the rapid advancements in communication and payments

16. Will there be an impact on POSB?
Apart from savings account with up to INR 1,00,000 in deposit, the products offered by IPPB are different from POSB products. POSB savings accounts do not have any ceiling limit unlike payments bank savings account. On the other hand payments banks can offer current accounts for use by businesses and institutions whereas POSB does not offer these accounts. Other kinds of deposits under POSB are unique to it and will not be on offered by the payments bank. POSB accounts are mainly savings instruments.

Simply put while POSB is more focussed on returns from small savings, IPPB will be focussed on transactions. Thus there will be an inherent synergy between the two and each will complement the other.

17. How will IPPB improve disbursement of subsidies?
IPPB is being set up by the GoI with a primary focus of improving the Direct Benefit Transfer of various subsidies. IPPB will be providing a robust technology platform for DBT disbursements and build a strong reporting mechanism. By channelling a majority of subsidy disbursements through its combined network, DoP-IPPB combine will significantly increase its current market share.

Customers

18. Who will be the target customer of IPPB?
Apart from the existing customers of the DoP, IPPB will focus on the underbanked and unbanked population in different parts of the country. It will also try to target services for MSMEs, senior citizens, students, migrant population, low income households, unorganized sector and other groups with special service requirements.

19. How will the customer choose between the savings account of POSB and IPPB?
Both POSB and IPPB will have different branding and the product features will be quite different. At time of signing up, customers will be clearly told what the product features are and customers will be able to choose the product of their choice.

Given the difference in purpose of the two accounts, the POSB customers can be encouraged to open an IPPB account for managing their fund flow including bill payments, remittances to other family members, businesses etc. depending on their needs. Customers focusing on savings may prefer to have their deposits with POSB and transact through their IPPB account as per requirements.

Customers will be given the option to channel money from their IPPB accounts to any of the POSB schemes. For example, an IPPB customer will be able to use money in his account to open and service a RD/ TD/ SSY or any other POSB account. Thus both IPPB and POSB can synergistically serve the customers.

Overall

20. I would like to know more and contribute to the IPPB journey. How can I do that?
You can send your questions and suggestions to pbi-project(at)gov.in or call us at +91 11 23096008 and check for regular updates on https://www.facebook.com/ippbonline/ and http://utilities.cept.gov.in/dop.

Courtesy: IPPB