India Post Payments Bank (IPPB) will soon become functional and will have 650 branches across the country. IPBB, which is expected to start its operations in the month of August, has 17 crore accounts which it can link to its account.
The Reserve Bank of India (RBI) tested the system created by IPPB and has given its approval to the payments bank. The system was tested by IPBB on a national basis for a closed user group. The tests are still ongoing in 250 branches.
The organisation has received approval for NEFT, RTGS, and IMPS transactions and hence will be able to permit transfer and reception of money from any bank account.
IPPB, however, is waiting for the final approval from the RBI so that it can go live in August.
India Post will operate its payments bank not only from its 650 branches but also 3,250 access points and 11 thousand gramin dak sevaks. In addition, postmen will provide doorstep banking to customers residing in urban areas.
The new design formulated by India Post can be utilised by individuals and small businesses to carry out transactions with supermarket chains and mobile firms. The transactions will be permitted only to specific services such as internet banking, remittance services, and acceptance of demand deposits.
The IPPB also plans to launch a mobile application soon to assist payments towards services and utilities like electricity, DTH, phone bill, gas connection, and so on.
After Airtel and Paytm, IPPB is the third entity to receive the permit from RBI to launch payment banks.