India Post Payment Bank by month-end

The India Post Payment Bank is expected to roll out its operations by this month-end.

Post offices selected across the State would soon double up as payment bank in an effort to provide banking services to people, particularly in rural areas.

Initially, Tamil Nadu will have 37 such payment banks. The head post offices, sub-post offices and branch offices will be linked to the payment banks. The plan is to open branches by year-end. While it would provide banking services like saving accounts, payment and remittance services, it would not offer loans or credit cards.

At present, the annual interest rate has been fixed at 5.5%. Officials of the postal department said the main purpose of the payment banks was to promote cashless transactions and provide efficient banking services to rural areas.

R. Anand, Postmaster General, Chennai City Region, said account holders could have a deposit up to ₹1 lakh and they need not maintain any minimum balance in their savings accounts. Customers would be able to make QR code-based payments through mobile payment applications. Some of the payment banks operated by private players are Airtel and Paytm.

Direct benefit transfer

Besides doorstep services, these payment banks will also allow direct benefit transfer to customers through their bank accounts. “Cash would be delivered at doorstep and staff members would be provided with hand-held devices. There is less chance of fraud as accounts would be linked to Aadhaar. Customers may choose to accept partial amount and deposit the remaining cash in their accounts. They will also be updated about credit and balance through mobile phone alert,” he said.

At present, there are 2.75 crore saving banks accounts across the State. Of this, nearly 56 lakh deposit accounts are in the Chennai city region. Postal customers may have to open another account to avail of the services. Both the postal and payment bank accounts would be linked to enable smooth transactions. Customers would also have access to online and mobile banking soon.

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Printable version | Jan 20, 2022 2:04:52 PM |

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