A SUMMER TRAINING PROJECT REPORT

ON

ROLE OF INDIA POST PAYMENTS BANK IN RURAL AREAS

Submitted for the Part Fulfillment in third Semester Course of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY:- Under the guidance of:-

Student Name:-Danish Raza Guide Name:- DR. Roshni Jaiswal

Roll No.:- 2206410700016 Designation:- ( Asst. Prof.)

Submitted To:

Department of Business Administration

Ashoka Institute of Technology and Management

Affiliated to Dr. A.P.J Abdul Kalam Technical University, Uttar Pradesh

[1]
 A SUMMER TRAINING PROJECT REPORT

ON

ROLE OF INDIA POST PAYMENTS BANK IN RURAL AREAS

Submitted for the Part Fulfillment in third Semester Course of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY:- Under the guidance of:-

Student Name:-Danish Raza Guide Name:- DR. Roshni Jaiswal

Roll No.:- 2206410700016 Designation:- ( Asst. Prof.)

Submitted To:

Department of Business Administration

Ashoka Institute of Technology and Management

Affiliated to Dr. A.P.J Abdul Kalam Technical University, Uttar Pradesh

Signature of Internal Examiner: Signature of External Examiner:

[2]
 2023-24

Project Certificate Forwarded By Supervisor

This is to certify that DANISH RAZA, is a regular student of MBA 2nd year, and had
successfully completed his summer training project entitled Role Of Payments Bank
In Rural Areas for partial fulfillment of the curriculum of the award of the degree of
master of business administration from Dr. A.P.J. ABDUL KALAM TECHNICAL
UNIVERSITY, LUCKNOW, is an original work done by him.

Guided by
Mr. Shublesh Kumar Singh
(Senior Manager, IPPB
Varanasi Branch)

[3]
 DECLARATION

I declare that this project report entitled "Customer Satisfaction in Various Product in
IPPB in Varanasi" is original and Bonafide work of my own in the partial fulfilment
of the requirements for the award of the Degree of MASTER OF BUSINESS
ADMINISTRATION and submitted to the department of Management, ASHOKA
INSTITUTE OF TECHNOLOGY AND MANAGEMENT, VARANASI The data
that has been collected by me is truly authentic and contains true and complete
information

NAME:- Danish Raza

Date:-

[4]
 ACKNOWLEDGEMENT

Accomplishment of a task with desired success calls for dedication towards work and
prompting guidance, co-operation and deliberation from seniors. At the outset, I
would like to thank MR.SHUBLESH KUMAR SINGH, SENIOR MANAGER,
IPPB VARANASI BRANCH for his support and professional approach in guiding me
through the careful details of the project. I am very grateful to my company guides,
SHUBLESH KUMAR SINGH, Senior Manager, who not only helped me on this
topic but also helped me to understand the nuances of capital market. In spite of
having a very busy schedule, they made sure in every way that we acquire the best
possible exposure and knowledge during our project which helped me a lot to
complete this project report.

[5]
s.no. Table of content Page no.

Cover page
1.
2. Company certificate

3. Bonafide/college certificate

4. Declaration

5. Acknowledgement

6. Company profile

7. Objective of the study

8. Scope of the study

9. Introduction to the topic

10. Methodology and Data collection

11. Data analysis

12. Findings

13. Limitations

14. Suggestion

15. Conclusion

16. Appendices

17. Bibliography

18. References

[6]
 EXECUTIVE SUMMARY

At India post payments Bank, we believe that a nation can grow when every citizen
has an opportunity to prosper, regardless of their way of life. With simple, diverse and
growth-oriented offerings, IPPB aims to provide every household in India an access to
efficient banking services and enable them to become financially secure and
empowered. India post payments bank (IPPB) setup under the department of post,
ministry of communication with 100% equity owned by government of India. IPPB
was launched as a pilot project on 30January 2017 in Ranchi (Jharkhand) and Raipur
(Chhattisgarh), with the objective of being present across India by the FY 2018-2019.
IPPB has expanded its strength across India covering post offices, through a network
of 650 IPPB branches/controlling offices, working on a hub and spoke model.

Chapter 1 INDUSTRY PROFILE

[7]
➢INTRODUCTION OF INDIAN BANKING SYSTEM

A HISTORICAL PERSPECTIVE Modern banking in India originated in the mid of 18th

century. Among the first banks were the Bank of Hindustan, which was established in 1770
and liquidated in 1829 –32; and the General Bank of India, established in 1786 but failed in
1791.The largest and the oldest bank which is still in existence is the State Bank of India
(SBI). It originated and started working as the Bank of Calcutta in mid-June 1806. In 1809, it
was renamed as the Bank of Bengal. This was one of the three banks founded by a presidency
government, the other two were the Bank of Bombay in 1840 and the Bank of Madras
in1843. The three banks were merged in 1921 to form the Imperial Bank of India, which
upon India’s independence, became the State Bank of India in 1955. For many years, the
presidency banks had acted as quasi-central banks, as did their successors, until the Reserve
Bank of India was established in 1935, under the Reserve Bank of India Act, 1934.The
Imperial bank of India was nationalized and came to be known as the State Bank of India the
establishment of the state bank of India was one of the significant steps taken by the
government of India to control its expanding economy. The banking system witnessed a
steady growth during the post- independence period and by the mid- sixties the system has
become fairly strong and compact. However, several deficiencies in their functioning were
noticed, mainly in terms of geographical coverage and credit deployment. The network of
branches of various banks covered only a limited segment of the population in major cities
while the rural areas and semi-urban areas were totally neglected. it was also noticed that
substantial gaps in credit deployment existed in financing agriculture, small - scale industry
and self - employed persons. Further, the ownership pattern of banks showed the
concentration of economic power in few hand.

[8]
DEFINITION OF BANKING

In Section 5(b) of the Banking Regulations Act, 1949. “Banking” is defined as accepting
for the purpose of lending and investments, deposits of money from the public, repayable on
demand or otherwise, and withdraw able to cheque, draft, order or otherwise.
”
Market size
The Indian banking system consists of 12 public sector banks, 22 private sector banks,
46foreign banks Bank, 56 regional rural banks, 1485 urban cooperative banks and 96000
rural cooperative banks in addition to cooperative credit institutions as of September 2021,
the total number of ATMs in India reached 212,145. In fy18-fy21 bank assets across sectors
increased. Total assets across the banking sector (including public and private banking)
increased to us$ 2.48m trillion in FY21 in FY21, total assets in the public and private banking
sectors were US$ 1,602.65 billion and US$ 878.56 BILLION RESPECTIVELY. As per the
reserve bank of India (RBI) India’s banking sector is sufficiently capitalized and wee-
regulated. The financial and economic conditions in the country are far superior to any other
country in the world. Credit market and liquidity risk studies suggest that Indian banks are
generally resilient and have withstood the global downturn well. The digital payment system
in India has evolved the most among 25 countries with India’s immediate payment service
being the only system at level live in the faster payment innovation index.

Investments/developments
Key investment and development in
India’s banking industry include:
• As of November 2021, the number of banks accounts opened under the
government’s flagship financial inclusion drive
PRADHAN MANTRI JANDHAN YOJANA.
• On November 09,2021 RBI announced the launch of its first global.
•In November 09, 2021 Kotak Mahindra bank announce that it has completed the acquisition
of a 9.98% stake in KFIN technology for RS 310 crore

[9]
• In July 2021 Google pay for business has enable small merchants to access credit through
tie-up with the digital lending platform for MSMEs flexi loan.
A Historical Perspective
The earliest banks in India can be traced to the three presidency banks in the early
1980s.subsequently with the the emergence of several small banks in the country the number
of banks had gone up 105 by December 1934. In 2021 the three presidency banks were
merged into the imperial; bank of India which apart from usual commercial operations, also
took over certain central banking functions. The imperial bank of India was nationalized and
came to be known as the state bank of India the establishment of the state bank of India was
one of the significant steps taken by the government of India to control its expanding
economy. The banking system witnessed a steady growth during the post- independence
period and by the mid-sixties the system has become fairly strong and compact.

DEVELOPMENT OF BANKING IN INDIA

Banking activities are performed in India since ancient times. Moreover, some of the banking
activities performed in ancient times are still performed in modern days also. In ancient time,
when Indians left their homes for pilgrimages or business for long period of time, they
deposited their money and valuables for sale keeping with persons of repute. Over time, a
practice developed to lend a part of such money deposited the needy persons to earn or
interest or usury as it was called then. The person with whom money was deposited for safe
custody enjoyed a good reputation and was an indispensable pillar of ancient Indian Society.
In this way, the banking activities were performed by an individual or group of individual
privately in India since ancient times. Banking activities existed in India even before the
Vedic times, where giving and taking of Credit in one form of the other was where giving and
taking of Credit in one form of the other was prevalent the ancient Hindu Literature and
Scriptures refer to the moneylending activities. Mostly of books are in Sanskrit and Pali
language. In the ancient times, the main functions of the banks relating to individual or the
state in the times of crises. Although the origin of the banking in India was in the form of
money lending business, the transition from money lending to formal banking took place in 2

[10]
Nd century. All banking activities were under the control of Private Sector. The persons who
performed banking activities were known as specialities.

East India Company established banks on the pattern of European Style. Consequently, such
banks and Government treasuries expanded and the role of indigenous banks decline in the
Indian Economy. English Agency Houses were created back to the last quarter of 18th
Century. The English Agency Houses in Calcutta and Mumbai began to serve as a banker
of the East India Company. They finance the movement of crops, issued paper money and
passed the way for establishment of joint stock banks. The earliest of these was established in
1770 by one of the Agency Houses in Calcutta and its business was closely connected with
other houses. But it was wound up in 1832. when the firm of Alexander and Company, with
which it was intimately connected, failed. The Bengal bank and the General Bank of India
was established in 1784 and 1786 respectively.

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CLASSIFICATION OF BANKS

Structure:

DEVELOPMENT OF PRIVATE SECTOR BANK

The increase of wealth and Commerce in Europe, private Bankers established themselves in
all the principal cities and towns. They received money on deposit, they managed the money
to such borrowers as could give the necessary security and they bought and sold bill of
exchange, billion and coin. The development of business of banking can mainly be attributed
to the London Goldsmiths during the reign of queen Elizabeth. They used to receive their
customers ‘valuables and funds for safe custody. Their receipts acknowledging the same in
the course of time became. payable to the bearer on demand and hence enjoyed considerable

[12]
circulation. The Goldsmith used to deposit their funds/reserves in the exchequer and under
the care of the Government. However, the ruin of Goldsmiths proved as turning point in the
English Banking. It let to the growth of private banking and establishment of Bank of
England in 1694, is the prototype and exemplar of all our modern banks; its history,
therefore, will deserve the particular attention. Bank of England derived huge profits from the
circulation of it. The other private English Bankers issued their own notes, payable on and
these notes according to the credit of the issuers, obtained a great circulation in the
neighbourhood of the bankers who issued them.

REGIONAL RURAL BANKS

The RRBs were established with a view to combining the local feel and familiarity with rural
problems. The RRBs are primarily sponsored by the commercial banks. The primary
objectives of these banks are:
• Providing credit for agricultural purposes to small entrepreneurs engaged in tradeand
industry and other productive activities in rural areas.

•To cater the needs weaker sections of the community.

CURRENT SCENARIO
The Indian has finally worked up to the competitive dynamics of new Indian market and is
addressing the relevant issues take on the multifarious challenges of globalization. Banks that
employ IT solutions are perceived to be futuristic and proactive players capable of meeting
the multifarious requirement of large customer base. Private Banks have been fast on the
uptake and are reorienting their strategies using the Internet as a medium. The Indian banking
has come from a long from being a sleepy business institution to a highly proactive and
dynamic entity this transformation has been largely brought by the large dose of liberalization
and economic reforms that allowed exploring new business opportunities rather than
generating revenues from conventional streams. The Indian industry has confidently hit the
growth trial that pick in activity is best reflected in the banking sector which after all is as

[13]
candid a mirror of a country’s economy as you could ever find. Most of the Indian financial
intermediaries have beekeeping pace with the deepening market economy, riding
the opportunity that come along with reforms even as they brace themselves for increased
competition both foreign and private by strengthening prudential norms and leveraging
technology to ensure that growth engine hums smoothly along the essential function of a
bank is to provide services related to the storing of value and the extending credit. The
evolution of banking dates back to the earliest writing, and continues in the present where
a bank is a financial institution that provides banking another financial services. Currently the
term banks generally understood an institution that holds a banking license. Banking licenses
are granted by financial supervision authorities and provide rights to conduct the most
fundamental banking services such as accepting deposits and making loans. There are also
financial institutions that provide certain banking services without meeting the legal
definition of a bank, a so-called non-bank. Banks are a subset of the financial services
industry.

The word Bank is derived from the Italian banca, which is derived from German and means
bench. The terms bankrupt and "broke" are similarly derived from bank Carotta, which refers
to an out of business bank, having its bench physically broken. Moneylenders in Northern
Italy originally did business in open areas, or big open rooms, with each lender working from
his own bench or table. Typically, a bank generates profits from transaction fees on financial
services or the interest spread on resources it holds in trust for clients while paying them
interest on the asset. S e r v i c e s t y p i c a l l y o f f e r e d b y b a n k s
Although the type of services offered by a bank depends upon the type of bank and the
country, services provided usually include:
•Directly take deposits from the general public and issue checking and saving accounts.

• Lend out money to companies and individuals (see money lender)

• Cash checks.

• Facilitate money transactions such as wire transfers and cashiers checks

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• Issue credit cards, ATM, and debit cards and online banking.

• Storage of valuables, particularly in a safe deposit box.

Types of banks

There are several different types of banks including:

Central banks:
usually control monetary policy and may be theresort in the event of a crisis. They are often
charged with controlling the money supply, including printing paper money. Examples of
central banks are the Central Bank Nd the US Federal Reserve Bank.

Investment banks:
underwrite stock and bond issues and advice on mergers. Examples of investment banks are
Goldman Sachs of theUSA or Nomura Securities of Japan

Merchant banks:
were traditionally banks which engaged in trade financing. The modern definition, however,
refers to banks which provide capital to firms in the form of shares rather than loans.
Unlikefirms, they tend not to invest in new companies.

Private banks:
manage the assets of the very rich. An example of a private bank is the Union Bank of saving
site mortgages exclusively.

Offshore banks:
are banks located in jurisdictions with low taxation and regulation, such as Switzerland or
theIslands. Many offshore banks are essentially private banks.

[15]
Commercial banks:
Primarily lend to businesses (corporate banking) Retail banks primarily lend to individuals.
An example of a retail bank is Washington Mutual of the USA. Universal banks engage in
several of these activities. For example, ContiGroup large American bank, is involved in
commercial and retail Lending; it owns a merchant bank (Citicorp Merchant Bank Limited)
and an investment bank (Salomon Smith Barney); it operates a private bank (Citigroup
Private Bank); finally, its subsidiaries in tax-havens offer offshore banking services to
customers in other countries.

Banks are prone to crisis

The traditional bank has an inherent tendency to crisis. This is because the bank borrows
short term and lends leveraged long term. The sum of deposits and the bank’s capital will
never equal more than a modest percentage of the loans the bank has outstanding

Even if liquidity is not a concern, if there is no run on the bank, banks can simply choose bad
portfolio of loans, and lose more money than they have. The US Savings and Loan Crisis in
the late 1980s and early 1990s is such an incident.
R o l e i n t h e m o n e y s u p p l y . A bank raises funds by attracting deposits,
borrowing money in the inter-bank market, or issuing instruments in themarket or asecurities
market. The bank then lends out most of these funds to borrowers. However, it would not be
prudent for a bank to lend out all of its balance sheet. It must keep a certain proportion of its
funds in reserve so that it can repay depositors who withdraw their deposits. Bank reserves
are typically kept in the form of a deposit with abank. This behaviour is called fractional-
reserve banking and it is a central issue of policy. Some governments (or their central banks)
restrict the proportion of a bank's balance sheet that can be lent out, and use this as a tool for
controlling the money supply.

Even where the reserve ratio is not controlled by the government, a minimum figure will still
be set by regulatory authorities as part of banking supervision.

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Regulation

The combination of the instability of banks as well as their important facilitating role in the
economy led to banking being thoroughly regulated. The amount of capital a bank is required
to hold is a function of the amount and quality of its assets. Major banks are subject to the
Basel Capital Accord promulgated by the Bank for Settlements. In addition, banks are usually
required to purchase deposit insurance to make sure smaller investors are not wiped out in the
event of a bank failure. Another reason bank are thoroughly regulated is that ultimately, no
government can allow the banking system to fail. There is almost always a lender of last
resort—in the event of a liquidity crisis (where short-term obligations exceed short term
assets) some element of government will step in to lend banks enough money to avoid
bankruptcy.

[17]
Chapter 2 COMPANY PROFILE

The India Post Payments Bank (IPPB) is a proposed state-owned commercial bank in India.
The bank would use the existing network of the public-sector postal service, India Post. In
2006, it was announced that India Post would open a bank to erase its 1,000-crore deficit
during the 11th Five Year Plan, emulating Poste Italian. In February 2013, it was announced
that India Post had hired Ernst and Young to prepare a report on the proposed bank. Some
officials of the Ministry of Finance had opposed the plan saying that India Post did not have
the expertise to provide banking services such as handling credit. In August 2013, the
Planning Commission of India said that even though it supported the plan, it was not feasible
owing to financial difficulties at the moment. It also felt that converting post offices into bank
branches may hamper their original function. In October 2013, the Cabinet of India rejected
the proposal on the grounds that India Post did not have sufficient expertise in running a
bank. In December 2013, India Post announced that it would install ATMs in 1000 of its
office across India in the first half of 2014.On 27 February 2014, India Post opened its first
ATM in Chennai. In April 2014, the Reserve Bank of India (RBI) gave in-principal banking
licences to IDFC and Bandhan Financial Services out of 26 applicants, but India Post was not
considered for a licence because it had not received the mandatory clearance from the
government. However, the RBI said that it would examine the proposal separately in
consultation with the government. In September 2014, a task force was formed by Prime
Minister Narendra Modi which aimed to study ways in which the existing postal network
could be leveraged. The task force was headed by T. S. R. Subramanian. On 4 December
2014, the task force submitted its report to Minister for Communications and Information
Technology Ravi Shankar Prasad. The report said that more services should be provided in
the field of banking, insurance and e-commerce.

In late December 2014, it was announced that India Post would issue ATM-cum-debit cards
to its Post Office Savings Bank (POSB) account holders. In January 2015, it was announced

[18]
that the Indian government was considering a legislature, to finalise the setting up of the
bank, following which a banking license would be applied for at the Reserve Bank of India.
On 28February 2015, during the presentation of the Budget it was announced that India Post
will use its large network to run a payments bank.

Role in financial inclusion

India Post has about 1,54,000 post offices, of them 90% are in rural areas. There is one post
office for every 7176 people in India. India Post also has 2,96,000 agents in the rural
area. About 2.2 crore people, already receive their National Rural Employment Guarantee Ac
t(NREGA) payments by post offices. After State Bank of India, India Post has the largest
deposits valued at 6 lakh crores’. S. R. Subramanian has said that it could aid in the on-going
Pradhan Mantri Jan Dayana financial inclusion plan.

Structure and funding

The Payments Bank will be The Payments Bank will be set up on a lean operating model. It
will focus on financial inclusion by harnessing low-cost technology-based solutions to extend
access to formal banking especially in rural areas and among unbanked and under banked
segments of the society. It has proposed by the task force that the existing Post Office
Savings Bank (POSB) should be continued to run parallel to the new bank initially. Later, it
should be merged with the bank. The existing post offices shall provide banking services to
customer, whereas the bank branches shall handle back-office work, like processing loan
applications, assessing credit worthiness and risk assessment, investment operations etc. The
Post Bank shall also provide institutional accounts to panchayats and micro-credit agencies.
Initially, the bank will operate separately from the postal business, with a branch in every
district for the first three years. The bank will require an initial funding of 500 crore from the
government.

[19]
Why in News?

▪The Prime Minister launched India Post Payments Bank (IPPB) on September 1, 2018.

▪It is an initiative of the government aimed at making b a n k i n g s e r v i c e s a v a i l a b l e

a t people’s doorstep
.
What is IPPB?

▪IPPB is a w h o l l y - o w n e d s u b s i d i a r y of Department of Post, with 100%

Government of India equity.

▪It is a payments bank of the Indian postal department which will work through a network of
post offices and nearly 3 lakh postmen.

▪IPPB’sVision1. Building most a c c e s s i b l e , a f f o r d a b l e a n d t r u s t e d bank for

common man.2. Spearheading F i n a n c i a l I n c l u s i o n - agenda for under-banked
populace.

▪ It will be governed by Reserve Bank of India (RBI).

▪While its services will be available to all citizens, the IPPB will primarily focus on serving
social sector beneficiaries, migrant labourers, un-organised sector, Micro Small and Medium
Enterprises (MSMEs), Panchayats, low-income households, in rural areas and the
unbanked and under-banked segments
in both the rural and urban areas.

▪IPPB will offer services through a mix of p h y s i c a l a n d d i g i t a l p l a t f o r m s

.

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▪Channels for delivering services will include:1. Counter operations2. ATMs/micro-
ATMs3. Doorstep, mobile and internet banking4. Pre-paid instruments such as mobile
wallets, PoS, MPoS, etc.

▪It will initially have 650 branches and 3,250 access points in post offices across the country.

▪ All the 1.55 lakh post offices in the country are targeted to be linked to the IPPB system by
December 31, 2018.

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Functions of IPPB

▪It will accept d e p o s i t s offer r e m i t t a n c e s e r v i c e s m o b i l e b a n k i n g and

third-party fund transfers
.
▪It offers 3 types of saving account:

1. Regular Accounts,

2.Basic Savings Bank Deposit Account (BSBDA) –Sugam

3.Premium account

▪The maximum limit on deposits for current and savings account is Rs 2 lakh.
▪The bank offers a 2.5 present interest rate on savings account.
▪ They can issue virtual debit cards but they cannot issue credit cards and cannot loan money.
▪It will provide social security payments like MNREGA wages, direct benefit transfer and
give access to third-party services insurance, mutual funds.
▪IPPB account holders will be issued a QR Code based biometric card with a unique QR
code.

[22]
What is Payment Bank?

•Payments banks were part of the Reserve Bank of India’s strategy of offering
differentiated banking licences
.
•A committee headed by D R . N A C H I K E T M O R recommended setting up of
'Payments Bank' to cater to the lower income groups and small businesses.

•A payments bank is a differentiated bank, offering a limited range of products.

• It can accept demand deposits only that is savings and current accounts, not time deposits.

• Payment banks are restricted to holding a maximum balance of Rs. 200,000(Rupees two
lakh only) per individual customer.

•Payment Banks cannot accept Non-Resident Indian (NRI) deposits.

•The Payment Banks cannot set up subsidiaries to undertake non-banking financial services
activities.

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Potential of IPPB

▪There are currently about 50,000 bank branches in rural India. Whereas the Department of
Post alone has almost 1,30,000 service points in rural India which if converted into points of
banking service, can extend presence of banking services in rural India by 3.5times.

▪It will allow leveraging the trust which the India Post enjoys in the minds of the public,
coupled with the simple, affordable and convenient digital solutions.

▪ A large number of the 3,00,000 employees of the postal services would also be equipped
with biometric and handheld devices to provide doorstep banking services.

▪Due to failure of rural banking in past years due to mounting Non-Performing Assets
(NPAs), banks are over-burdened with the task of recovery of credit, rather than expansion if
banking service – possible through IPPB.

▪Tapping of savings of the rural people through IPPB may help increase per capital income of
rural people through domestic savings.

▪Money lenders in rural areas try to exploit people under financial aid, IPPB will help to
reduce such exploitation and provide effective financial services.

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Benefits of IPPB

▪E x p a n s i o n o f R u r a l B a n k i n g -
IPPB will help reinvigorate the postal system, at the same time expanding Rural Banking
through its wide network of branches across India.

▪ Access to Diversified Services -

Post Office savings Bank (POSB) accounts linked to IPPB will allow lakhs of POSB
accounts access to banking thereby enabling them to enjoy internet banking, mobile banking,
electronic fund transfers, online bill payments, digital payments etc. across the spectrum of
banks 24×7. Facilities such as third-party payment, insurance and mutual funds etc
will provide financial accessibility to diverse financial services.

▪S o c i a l & F i n a n c i a l I n c l u s i o n -
IPPB can act as a catalyst for social and financial inclusion through the vast network of post
offices throughout the nation. Last mile delivery of services through the postman -
and ‘Grameen Dak Sewaks’ acting as Mobile
bankers – providing "banking at doorstep."

▪P u s h t o M S M E s -
Rural MSMEs will benefit from financial services offered by IPPB.

▪E f f e c t i v e D B T –

IPPB will enable better penetration of schemes and better delivery of

benefits. Banking through IPPB would give a boost to Government’s initiatives like
promoting digital transactions and Direct Benefits Transfer (DBT).

▪E m p l o y m e n t -
IPPB will generate employment opportunity for more than 3500 banking professionals, who
will be engaged in propagating financial literacy across the country.

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▪C r e d i b i l i t y -
It will also not have to gain the trust of customers like its competitors, especially in the rural
areas, as the local postman is still an integral part of the day-to-day lives of the rural
populace.

Challenges

▪L o w A w a r e n e s s -
Due to low financial and digital literacy among rural masses, they might be discouraged to
opt for formal financial services under IPPB.

▪S t r i c t R e g u l a t i o n -
Given the severe restrictions imposed by the RBI on how it can employ its funds, the odds
seem to be stacked against the IPPB at the moment.

▪U s e r C h a r g e s -
To generate revenues, it plans to charge fees on money transfers another financial service –
which may act as a disincentive for rural customers.

▪C o m p e t i t i o n –
The IPPB is also likely to face stiff competition from private companies already given
Payment Bank licenses.

▪L a c k o f I n f r a s t r u c t u r e -
Lack of 24/7 electricity, internet services and infrastructure in rural areas is another
constraint.

▪H u m a n R e s o u r c e -
The staff needs extensive training in handling the banking products -especially insurance and
pension products - as they are different from the current
financial products in India Post’s portfolio. The real success will depend on the
implementation of technology and staff's adaptation to new technology.

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▪T e c h n o l o g y -
The post office payment bank will have to quickly move to an online platform to make
it easier for customers to access their accounts and conduct transactions. With existing
infrastructure and resources, it is a challenge.

Way Forward

▪While the advantages enjoyed by IPPB are undeniable, it needs to cross over these two
hurdles— financial and pricing— to prevent itself from becoming another Air India.

▪In order to make IPPB a game changer and to sustain in competition it requires efficient
infrastructure, autonomy in funds management, training and skilling of the postal employees
and promoting use of cashless transactions among rural masses.

I n d i a P o s t P a y m e n t s B a n k Type: -

Division of Indian Post

Industry: -

Financial services F o u n d e d : - 1 September 2018; H e a d q u a r t e r s : - New Delhi

Area served: -
India
Key people: -

[27]
•Vineet Pandey, IPoS (Secretary, Department of Posts)

•J. Venkatraman, (MD & CEO)

Products: -

Banking S e r v i c e s : -
Financial Services O w n e r : - India post Department of post Ministry of communication
Gov. of India

W e b s i t e ippbonline.com

[28]
I n d i a P o s t P a y m e n t s B a n k abbreviated as IPPB, is a division of India Post which
is under the ownership of the Department of Post, a department under Ministry of
Communications of the Government of India. Opened in 2018, as of January 2022, the bank

has more than 5 crore customers. On 19 August 2015, the India Post received licence to run a
payments bank from the Reserve Bank of India. On 17 August 2016, it was registered as a
public limited government company for setting up a payments bank IPPB is operating with
the Department of Posts under Ministry of Communications. The pilot project of IPPB was
inaugurated on 30 January 2017 at Raipur and Ranchi. In August 2018, the Union Cabinet
approved a cost of 1,435 crore (US$180 million) for setting up the bank the first phase of the
bank with 650 branches and 3,250 post offices as access points was inaugurated on 1

[29]
September 2018. Over ten thousand postmen have been roped into the first phase. By
September 2020, the bank had acquired about 3.5 crore customers. The bank had acquired
about 4 crore customers by December 2020. In January 2022, India Post Payments Bank has
crossed 5 crore customer’s mark. IPPB aims to utilize all of India's 155,015 post offices as
access points and 3 lakh postal postmen and Grameen Dak Sewaks to provide doorstep
banking services. The Prime Minister of India, Narendra Modi, at the launch of the India Post
Payments Bank, in New Delhi on 1 September 2018. The Minister of State for
Communications(I/C) Manoj Sinha, the Secretary (Post), Ananta Narayan Nanda and IPPB
CEO and MD. Suresh Sethi are also seen.

IPPB offers savings accounts, money transfer and insurances through the third parties, bill
and utility payments. The bank also provides features like:

• Account: The bank offers savings and current accounts up to a balance of 2 Lakh.

•QR Card: Customers can use QR code payments eliminating the need to remember account
numbers, PINs and passwords.

•Unified Payments Interface

•Immediate Payment Service

•National Electronic Funds Transfer

•Real-time gross settlement

•Bharat Bill Pay

•Direct Benefit Transfer

• AEPS (Aadhaar Enabled Payment Service) IPPB has been allowed to link around 17 crores
postal savings bank (PSB) accounts with its accounts.

[30]
➢I n d i a P o s t P a y m e n t s B a n k t o b e l a u n c h e d s o o n :
10 things

India Post Payments Bank has been allowed to link around 17 crore postal savings bank
(PSB) accounts with its accounts Prime Minister Narendra Modi will launch India Post
Payments Bank (IPPB) on September 1, news agency PTI, reported, citing a senior
government official. India Post Payments Bank will focus on providing banking and financial
services to people in rural areas, by leveraging the reach of 1.55 lakh post office branches.
The launch of India Post Payments Bank, the PTI report said, was rescheduled in the wake of
seven-day national mourning declared after the demise of former Prime Minister Atal
Bihari Vajpayee. Prime Minister Narendra Modi was to launch India Post Payments Bank on
August 21.

➢H e r e a r e 1 0 t h i n g s t o k n o w a b o u t I n d i a
Post Payments Bank

1) India Post Payments Bank CEO Suresh Sethi had earlier said that the payments bank will
go live with 650 branches in addition to 3,250 access points co-located at post
offices.Around11,000 postmen both in rural and urban areas will provide doorstep banking
services
.
2) It started operations on 30 January, 2017, by opening two pilot branches, one at Raipur and
the other at Ranchi.

3)India Post Payments Bank will offer 4 per cent interest rate on savings accounts.

4) Payments banks can accept deposits of up to₹1 lakh per account from individuals and
small businesses, but do not have the mandate to extend loans.

5) But India Post Payments Bank will, in alliance with other financial service providers, offer
third-party products. For example, in case of loans, India Post Payments Bank will work as an
agent of PNB.

[31]
6)India Post Payments Bank will offer a range of products such as savings and current
accounts, money transfer, direct benefit transfers, bill and utility payments, and enterprise and
merchant payments.

7) These products, and services, will be offered across multiple channels (counter services,
micro-ATM, mobile
banking app, SMS and IVR), using the India Post Payments Bank’s
technology platform.

8) India Post Payments Bank has been allowed to link around 17 crore postal savings bank
(PSB) accounts with its accounts.

9)India Post Payments Bank “has been envisioned as an accessible, affordable and trusted
bank for the common man," the government said in statement. It will leverage the vast
network of the Department of Posts, which covers every corner of the country with more
than300,000 postmen and Grameen dak Sewak.

The Cabinet earlier this week approved an 80% increase in spending for India Post Payments
Bank (IPPB) to 1,435crore. The increase will take the IPPB project outlay to 1,435crore
from 800 crore -- giving it additional firepower to compete in the market with existing
operators like Airtel Payments Bank and Paytm Payments Bank.

[32]
➢VISION AND MISSION OF IPPB (INDIA POST PAYMENT BANK)
IPPB’s vision:

Building the most accessible, affordable and trusted bank for the common man.
IPPB’s Mission:
Spearheading financial inclusion by removing barriers and reducing costs for accessing
banking services.

[33]
 OBJECTIVE OF THE STUDY

1. Create awareness about India Post Bank in rural areas:

The first objective is to generate awareness and disseminate information about

India Post Bank (IPB) among the rural population. This includes educating
people about the services and benefits offered by IPB, such as savings accounts,
remittances, loans, insurance, and other financial products. By raising
awareness, the study aims to ensure that people in rural areas understand the
existence and advantages of IPB as a banking institution.

2. Explore the products offered by India Post Payment Bank:

The second objective is to delve into the range of products and services
provided by India Post Payment Bank. This entails a comprehensive analysis of
the various financial offerings available to customers, such as savings accounts,
current accounts, recurring deposits, mobile banking, bill payments, and any
other relevant services. The study aims to provide a detailed understanding of
these products, their features, and their applicability in rural areas.

3. Determine the market potential in rural areas for India Post Bank:

The third objective is to assess the market potential of India Post Bank
specifically in rural areas. This involves conducting a market analysis to
evaluate the demand and feasibility of IPB's services in rural regions. Factors
such as the existing financial infrastructure in rural areas

[34]
 SCOPE OF STUDY

The scope of the project during the research and study will be focused on the
following parameters

•To know consumer preference regarding IPPB

At India Post Payments Bank, we believe that a nation can grow when every citizen has an
opportunity to prosper, regardless of their way of life. With simple, diverse and growth-
oriented offerings, IPPB aims to provide every household in India an access to efficient
banking services and enable them to become financially secure and empowered.
India Post Payments Bank (IPPB) was setup under the Department of Post, Ministry of
Communication with 100% equity owned by Government of India. IPPB was launched as a
pilot project on 30 January 2017 in Ranchi (Jharkhand) and Raipur (Chhattisgarh), with the
objective of being present across India by the FY 2018-2019. IPPB has expanded its strength
across India covering post offices, through a network one Branch and 649 Banking outlets
manned by Business Correspondents, working on a hub and spoke model.

•To know what features and services of IPPB

IPPB will be leveraging the vast postal network of nearly 1.55 lakh post offices and 3.0 lakh
postal employees in every district, town and village of the country to serve you. As we
continue to expand our services to every doorstep, our postman will become your trusted
financial services advisor, working hard to ensure that you get what you need - be it receiving
your money in the fastest way possible, using it at ease for essentials, saving for your loved
ones, or even investing for a bright future. For us, every customer is important, every
transaction is significant, and every deposit is valuable no matter what the value.
That is what we truly mean when we say – Aapka Bank, Aapke Dwaar.

[35]
Chapter 3 INTRODUCTIONS TO THE TOPIC

INDIA POST PAYMENTS BANK IN RURAL AREAS

The IIPB will leverage the reach of India Post’s 1.55

lakh post office branches to provide banking and financial service to people in rural areas.
The government will further link all the post office branches with IPPB services by the end of
2018. The move is expected to help in creating the country’s largest
banking network with a direct presence at the village level

[36]
The IPPB application will go live on August 21.
The app is designed to enable customers to make payments for services to over 100
companies, including phone recharges, electricity bill, DTH services, college fees, among
others. It allows payment of services that are registered on the Bharat Bill Payments
System of the National Payments Corporation of India had earlier reported that the IPPB
would equip service postmen with smartphones to offer door-to-door banking services. The
move was aimed at opening 3,250 customer access points across 650 districts. Making a
major comeback in the financial arena,

India Post Payments Bank has enabled over 1,35,000Banking Access Points, out of which
1,10,000 are in rural areas, thereby increasing the rural banking infrastructure by 2.5 times,
said a data by the Ministry of Communications, Law & Justice and Electronics and
Information Technology. Launched across the country on September 1, 2018, India Post
Payments Bank has been incorporated aa Public Limited Company with 100 percent
Government of India (GOI) equity on 17.08.2016, under Department of Posts, Ministry of
Communications. As quoted by the ministry in Lok Sabha, over 2,00,000 Doorstep Banking
Service Providers (Postmen and Gramin Dak Sewaks) have been trained and certified to
provide a comprehensive suite of banking services including completely paperless and instant
Account Opening, Cash Deposits/ Withdrawal, Money transfers, Bill Payments and
Government to Citizen (G2C) Payments.
The benefits provided by India Post Payments are:
As per the approved plan 650 IPPB branches (almost one in each district) have been set up
and functional across all the States and Union Territories.
IPPB is focused towards building a less cash and digital economy and enabling
digital financial inclusion at the last mile. With these objectives, IPPB has enabled
approximately 200,000 doorstep banking service providers with micro-
ATM devices (Smartphone and biometric device) to provide a full suite of banking services
(including Cash Deposits/ Withdrawal, Account Opening, Money transfers, Bill Payments
and DBT distribution) at the customer’s doorstep. Therefore, IPPB has not invested in
physical ATMs. Further considering low penetration of ATMs in rural India, IPPB has
established linkages with all the interoperable Payment and Settlement Systems (UPI, IMPS,
NEFT etc.) to enable digital transactions and hence has not issued any Debit Cards. IPPB is

[37]
in early stages of discussion with various global & domestic institutions to enhance its
product suite, as per the Payment Bank guidelines governing third party products.
Reserve Bank of India’s Agenda on Rural Banking With the rising empirical evidence on
the prospective development benefits from financial inclusion, the Reserve Bank’s agenda
pertaining to rural banking has shown a visible growth. The apex bank’s initial focus, as
mentioned in Report on trend and progress of banking in India 2017-18, is now on provision
of credit and making available savings avenues to a larger remit of diverse services. It is also
taking steps to strengthen existing schemes, namely business correspondents and lead bank
scheme, so that they leverage on digitalservices in financial education and management of
financial risks. Prime Minister Narendra Modi on September 1 will launch long-awaited India
Post Payments Bank (IPPB) that will have at least one branch in every district and focus on
financial services in rural areas, a senior official said. “The launch of India Post Payments
Bank has been rescheduled for September 1. The Prime Minister will launch,” a
senior government official told PTI. The launch of India Post Payments Bank (IPPB) was
recently rescheduled in the wake of seven-day national mourning declared after the demise of
former Prime Minister Atal Bihari Vajpayee. Prime Minister Narendra Modi was to launch
IPPB on August 21. IPPB will leverage reach of 1.55lakh post office branches to provide
banking and financial service to people in rural areas.
“Government is trying to link all the 1.55 lakh post office branches with IPPB services by the
end of this year,” the official said. This will create the country’s largest banking network with
direct presence at village level.

IPPB CEO Suresh Sethi had earlier said that IPPB will go live with 650 branches in addition
to 3,250access points co-located at post offices and around 11,000 postmen both in rural and
urban areas will provide doorstep banking services. IPPB has permission to link around 17-
crore postal savings bank(PSB) accounts with its account. With IPPB in place, people in rural
area will be able to avail digital banking and financial services, including money transfer, to
any bank account either with help of mobile app or by visiting a post office. IPPB was the
third entity to receive payments bank permit after Airtel and Paytm.
Payments banks can accept deposits of up to Rs 1 lakh per account from individuals and smal

[38]
l businesses. The postal payment bank has permit to carry RTGS, NEFT, IMPS transaction th
at will enable IPPBcustomers to transfer and receive money from any bank account. With the
third-party tie-ups, accountholders in IPPB will be able to avail financial services as in case
of a regular banking customer. The payment bank will be used by government to distribute
NREGA wages, subsidies, pension etc. The IPPB app which is expected to be launched on
same day will enable customers to pay for services of around 100 firms including phone
recharges and bill, electricity bill, DTH service, college fees etc that are present on Bharat
Bill payments system of National Payments Corporation of India.

➢PRODUCT OFFERED BY IPPB TO RURAL PEOPLE

1.Mobile Banking
IPPB offers a state-of-the-art, simple, secure and easy-to-use Mobile banking service through
a Mobile app to access your IPPB account and carry out transactions from the convenience of
your mobile phone.

Opening a Digital savings account (new customer)

1.Download the IPPB app on your android phone from the google play store to activate
banking services.

2.Open your digital savings account by following on-screen instructions

Process to register for IPPB’s mobile banking (existing customers)

Get benefits of our mobile banking facility by linking your registered mobile number with
your IPPB account, opened at the Post Office/ through our Postman/ GDS at your doorstep.
Just follow these simple steps:

[39]
Step 1: To activate banking services on the go, download the IPPB app on your android
phone from the google play store.

Step 2: Enter the details mentioned below:

•Account number

•Customer ID (CIF) and DOB

•Registered mobile number

Step 3: You will receive a one-time-password (OTP) on your registered mobile number

Step 4: Set MPIN

Step 5: Enter the OTP

Facilities you can get from IPPB’s mobile banking

services; -Our mobile banking services are hosted on a platform which is modern, secure and
convenient. Currently available services on Mobile Banking:

•Account balance enquiry

•Request for a statement of your account

•Transfer funds within the bank

•Transfer funds to other bank accounts

• Pay water, electricity and utility bills

[40]
•Recharge prepaid and DTH (direct-to-home) services

•Payment towards eligible Post Office Savings Schemes

•Send and receive money using BHIM UPI

•Manage your funds with the linked POSA (Post Office Savings Account) by using Sweep-in
and Sweep-out facility

➢SERVICES OF IPPB: -

•SMS Banking

India Post Payments Bank, provides the facility of SMS banking so that customers can
quickly access the account details on their mobile phones, simply by sending an SMS to the
IPPB’s SMS Banking
number7738062873

. Unique Features of SMS banking

•Compatible with all mobile handsets

•Internet not required

•Accessible anywhere, 24x7To utilise the services, just follow two simple steps:

•Register your mobile number with us for SMS banking

•Send keyword “
REGISTER” to7738062873
from your mobile number, linked to your savings/current account
Currently Available Services on SMS banking:
Services SMS to be sent on 7738062873Balance enquiry BAL Mini statement MINI

•Missed Call Banking

[41]
To add to your convenience of banking with IPPB, you can get your account information
without any
hassles, through the facility of missed call banking. Register your mobile number for IPPB’s
missed call
banking service and start availing the benefits. Unique Features of missed call banking

•Compatible with all mobile handsets

•Internet not required

•Accessible anywhere, 24x7To utilise the services, just follow two simple steps:

•Register your mobile number for missed call banking by giving a missed call to
8424054994
from the mobile number linked to your savings/ current account.

•Then give a missed call to the following numbers to avail the services as below.
Services available through Missed Call Banking

Services Dial- IN Numbers Balance enquiry Missed call to8424046556

Mini statement Missed call to8424026886

•Phone Banking

IPPB’s phone banking provides the convenience to access your bank account from the
comfort of your
home, while at work or on
the move. You can get information on your bank account, IPPB’s products
& services and resolve queries. For this you need to call our Phone Banking service call us on
155299.Depending on the type of transaction, our phone banking services could be a
combination of IVR (Interactive Voice Response) and interaction with a teleoperator (agent
assisted). Transactions that cannot be completed through IVR will be assisted by a dedicated
phone banking officer. You won't need to visit the bank branch for queries, complaints or
selected service requests, as all the
necessary information can be provided by IPPB’s phone banking services. At present, phone
banking
services are available in 13 languages through the IVR mode and eight languages through the
agent-assisted channel, which will also be extended to 13 languages in the near future, giving
you immediate
access to IPPB’s products and services.

Benefits of IPPB’s Phone Banking

•24x7 access account information

[42]
•Immediate response to your queries

•Save time and money by avoiding visits to the bank

•Schedule Doorstep banking services through phone banking IPPB's Phone Banking Services

•Information on IPPB’s products/services

•Information on the last five transactions

•Call-back function

•Queries related to interest rates

•Account-related information

•Issuing of account statement

•Book a request for Doorstep banking services

•Balance and transaction-related details

•Any other banking-related queries

•IPPB and POSA Linkage

The Post Office Savings Account (POSA)

POSA holds a significant place in fostering savings as it reaches out to the remotest part of
India which has a limited reach of banking services. Some of the key features of a POSA are
that it can be opened by cash only with a minimum initial deposit of Rs. 500. It facilitates
easy account transfer from one post office to another with no lock-in or maturity
requirements. POSA offers 4% rate of interest per annum.
Linkage Process of POSA and IPPB Account
The IPPB savings account allows the customer to link the account with POSA. In case the
customer opts for such linkage, any account balance above Rs. 2 lakh at the end of the day is
transferred to the linked POSA account.
Process:

•Customer must have active individual POSA account to link it with IPPB savings account.

[43]
•POSA account can be linked at the time of opening IPPB account or post opening of IPPB
account through Doorstep service or at the IPPB Access Point.

•At the time of linking POSA account customer needs to produce his/her POSA passbook to
GDS/Postman in case of Doorstep service or to counter staff at Access Point.

•SMS notification shall be sent to the customer’s registered mobile number post
successful linkage
of POSA account.

•POSA linkage is not available with Digital savings account, However, applicant can link
POSA account post conversion from Digital savings account to savings account

Benefits of Linking the POSA and IPPB

•Automatic transfer of funds from IPPB to the POSA when it exceeds the limit of Rs. 2 lakhs.
•If day end balance exceeds the limit, rather than rejecting the transaction the system will
transfer the excess funds to POSA.
•It is possible to transfer whole balance at a time from IPPB account to POSA account as it
does not have maximum balance limit.
•Customer can manage funds through IPPB mobile banking app with Sweep-in and Sweep-
out facility. For Timings to avail this facility please refer to the Sweep Service Timings
section below.
•Account holder can withdraw / deposit cash via. IPPB savings account.
Sweep-in and Sweep-out Facility

Sweep-in and Sweep out facility enables IPPB customer to manage funds conveniently. Any
amount above Rs. 2 Lakh will be swept out into the linked POSA account. At times, our
savings accounts exceed the maximum limit and stays idle with interest benefit. Sweep
facility facilitates easy transfer of funds (both automatic and manually) from account holder’s
savings account to POSA account and helps account holder to earn higher interest.

[44]
Features:

• No limits on minimum amount to be withdrawn

•No extra charges for Sweep-in or Sweep-out facility

•The sweep-in and Sweep-out service can be availed through assisted channels like Doorstep
Service and Access Point besides the self- service through IPPB Mobile App

•Single Sign-on for both the accounts on the mobile app to check balances.

Sweep Services Timings:

•Sweep services are available between 8:00AM to 8:00PM or till availability of funds in
Sweep in account on all working days.

•Sweep in services will not be available on 2nd & 4th Saturdays and Sundays

•Domestic Money Transfer

A large number of people in India, particularly the migrant population, doesn’t have access to
formal
banking channels for want of proof of identity/address etc. This lead to innumerable
hardships faced by them while attempting to remit money back to their family members. This
is happening even when various channels for Domestic Money Transfers (DMT) are
available viz. IMPS, UPI, NEFT, RTGS etc. India Post Payments Bank (IPPB) has already
made Money Transfer products like IMPS, assisted
UPI, NEFT, RTGS available for IPPB customers and interoperable AePS for non-customers.
The newlyintroduced Domestic Money Transfer to facilitate fund transfer (cash to account)
facility to walk-in customers (not holding an account with IPPB) will enable millions of
unbanked migrant populations to
meet their family’s financial need by remitting fund to their loved ones on regular basis or
during any such special need. This product design brings seamless remittance experience to
the customers backed by technology interface through Postman/ GDS/ Access Points
Counters and simultaneously ensures hassle-free &affordable fund transfer service for the
migrant population. This cash to Bank A/c remittance service is offered across more than
1.36+ lakhs Access Points (Post Offices) across India. Product Highlights
•Send money instantly

•Allowing cash to account fund transfer for Non-IPPB Customers/ Remitters.

•Instant confirmation to remitter via SMS

[45]
•Safe and secure transaction

•This service is available across all the access points of IPPB (CBS & MATM)

•Remitters’ identification to be done using Mobile Number

•Lowest service charge of 1% of transaction value (minimum service charge of Rs. 10),
inclusive of GST & Cess (if applicable)

Services Available to customers (Remitters)

•DMT Registration (with mobile number only) with an option to upgrade it to Full KYC*
(with mobile number, Aadhaar number & PAN) to enjoy higher limits

•Modification of mobile number, in case of full KYC customers

•Beneficiary – Registration, Inquiry & Deletion

•Fund transfer

•Transaction Inquiry

•Refund, in case of failed attempts

•Complaint Management
•Remitter Profile up gradation*, if customer wishes/ requires transfers with higher limits
Steps Involved

•Locate your nearest IPPB access point/ agent for fund transfer

•Remitter Registration (one time, if not done)

•Beneficiary Registration (one time, if not done)

•Fund Transfer

•Remitter Profile upgradation, if customer wishes/ requires transfers with higher limits

•Refund process (in case of any declines

2.DIGITAL SAVINGS ACCOUNT

You can approach us through your local Business Correspondent. Digital Savings Account is
a Zero balance account and hence there is no minimum balance requirement. Digital saving
account that can be opened online have made it easier for countless people to open saving
bank accounts from the comfort of their home there are many banks digital saving account

[46]
such as Kotak 811, Axis ASAP, Digi savings etc. that new customers can open. The ippb
digital saving accounts is a savings account introduced by India post payment bank.
Features

•Open account instantly

•No minimum average balance

•Easy banking

•Transfer money easily and bill payment

•Multilingual customer support

Eligibility The account is available only for

•Resident Indians above the age of 18 years Documentation

➢Applicants must satisfy the following documentation requirement

•Aadhaar card and PAN card is required to open the account

➢KYC Procedure of the digital savings account

The digital savings account is valid for 12 months. To continue using the account complete
the KYC procedure within a year Visit any of the access points or with the help of the
GDS/Postmen to complete the KYC formalities. The limitation on your digital saving
account will be lifted and bank will upgrade the account to a regular saving account.

3.Current Account

IPPB offers the facility of a Current Account to the small merchants/ kirana stores and
individual
businessmen. This account is a prerequisite for carrying out and expanding business. IPPB’s
Current Account gets you started on the road to digital transactions for your business needs.
Along with this, IPPB also offers a Merchant App for meeting business requirements. The
current account can be opened at the Post Office Counters or at your doorstep through our
Postman/GDS.Key Account Features and Benefits

•Banking at your convenience

•Instant account opening using Aadhaar as per the applicable rules

• No Monthly average balance required to be maintained

•The account can be opened with zero balance

•RuPay Virtual Debit Card for online transactions

•Free monthly e-statement

[47]
•Mini statement through SMS

•Simplified banking services through QR card

•Instant fund transfer through IMPS

•Easy bill payments and recharges

•Send and receive money using BHIM UPI What makes us Different

•Self on-boarding to IPPB Merchant App

•Assisted services through the GDS, as and when required

•Availability of funds at your doorstep, based on your request

•Bill payment facility at your doorstep

•Simple and secure banking through the IPPB QR card

•Multilingual customer support

• Nominal charge

•Unlimited cash deposits and withdrawals

4. Premium Saving Account

“PREMIUM ACCOUNT”
a product specially designed to offer Bundle of Benefits to Premium Category Customers &
also offers High incentive earning potential to counter Users.

Features of Premium Account

1. Anywhere Banking.

2. Free doorstep banking service

3. Unlimited Free Cash Deposit & withdrawal services

4. Nil account balance charges

[48]
 5. Cash– back on electricity Bill Payment.6. 50% annual Discount on DLC/Jeevan
pramaan Charges.7. Preferential treatment in availing loan services.8. Preferential
treatment at All IPPB Banking Touch PoinT.

Chapter-4 RESEARCH METHODOLOGY

Research is a scientific and systematic research for patent information on a specific topic

➢D e s c r i p t i v e r e s e a r c h : -

Descriptive research defines questions people survey and the method of analysis prior to
beginning data collection in other word the Who what where when why I and how aspects of
the research should be defined. such preparation allows one the opportunity to make any
required changes before the costly process of Data Collection has begun.

➢SAMPLE SIZE AND METHOD OF SELECTING SAMPLE

Sample size:-

Sampling is simply the process of learning about population on the basis of learning about
population on the basis of a simple drawn from it
SAMPAL SIZE- 100 People is selecting from Questionnaire

Method of selecting sample: -

PRIMARY DATA

- Data is collected primary through

 Personal Contact
 Meeting Interview
 Questionnaire With The Concerned Authority Of The Organisation And
Respondents

SECONDARY DATA

- Data are collected through secondary modes such age various

 published data reports
 related book and websites

[49]
Chapter- 5 DATA ANALYSIS AND INTERPRETATION

Which type of bank account do you have?

Bank account No of respondent

Regular saving account 34%

NREGA saving bank account 33%

Premium saving account 21%

other 12

Chart Title
Bank account Regular saving account NREGA saving bank account
Premium saving account other

12%

34%
21%

33%

Interpretation Regarding the bank account 34% people are doing regular saving account and
after them 33% and 21% people are doing the NREGA saving account and premium Saving
account respectively 12% people use to other account.
34%33%21%12%

[50]
2. In which kind of bank, you prefer to take rural IPPB Payment Bank

Bank NO. of person in percentage

Public Bank (IPPB) 41%

Private bank 24%

Rural bank 23%

Others 12%

Chart Title
Others
12%

Public Bank
Rural bank (IPPB)
23% 41%

Private bank
24%

Interpretation The above graph is showing the IPPB the highest number of populations 41%
are prefer to IPPB bank.41%24%23%12%

[51]
3. What All service do you use?

Services No of person percentage

Mobile banking 32%

SMS banking 26%

Missed call banking 24%

Phone banking 18%

Chart Title
32%

26%
24%

18%

0%

Services
Mobile banking
SMS banking
Missed call
banking Phone banking

Interpretation: -When asked for the preference of people regarding rural IPPB Bank services
32% of the response where service to be using the Mobile banking of IPPB bank where
as 26%were using SMS banking and 24% were using Missed call banking and 18% the ones
who were connected to phone banking.
26%32%24%18

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4.How do you prefer to use IPPB (India post payment bank)?

Prefer No. of person percentage

As a need 37%
As an expense 24%
As an investment 23%
Both 16%

No. of person percentage

40%
35%
30%
25%
20%
15% No. of person percentage
10%
Axis Title 5%
0%
d
n ee se t
sa pen en th
A ex stm Bo
sa
n ve
A in
an
As

Interpretation: -When asked of rural people regarding use IPPB 37% response as a need and
23% whereas a investment 24% people agree as expenses and 16% people both considered as
a need and as a expenses.
37%24%23%16%

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5. Do you know about India post payment bank?

No. of people Percentage

yes 60%

No 40%

Percentage
yes No

40%

60%

Interpretation: -60% people know about India post payment bank and 40% people not aware.
60%40%

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 6. Do you prefer to take Credit siddhi business loan?

Loan No of respondent

Yes 70%

No 30%

Percentage
yes No

40%

60%

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7. From where do you get the knowledge of product OF IPPB BANK?

PRODUCT No. of Respondent

Print media 34%

Word of mouth publicity 25%

Electronic media 21%

campaign 20%

No. of Respondent
No. of Respondent

0.34

0.25
0.21 0.2

0 0 0
Print media Word of mouth publicity Electronic media campaign

Interpretation: -When asked for the preference of people regarding 34% of the print media, I
wear 25%people aware world of mouth publicity 21% and 20% people electronic media and
other finance product.
21%20%25%34%

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8.Do you compare the financial product of IPPB bank with another bank before purchasing
them?

FINANCIAL PRODUCT No. of Respondent

YES 60%

NO 40%

Chart Title
FINANCIAL PRODUCT YES
NO

40%

60%

Interpretation: -60% people about IPPB bank product and 40% not aware about financial
product of IPPB bank
60%40%

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9.Would you like to do banking with IPPB bank in near future?

Response No. of Respondent

Yes 75%
No 25%

No. of Respondent
Yes No

25%

75%

Interpretation: -From the response collected from 50 respondent it can be observed that 75%
people are like IPPB bank in near future and there are still 25% of the people don't like TO
take financial product of IPPB bank.
75%25%

CHAPTER-6 FACTS AND FINDING

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In Rural Areas Most Of People Are Using for Regular Saving Account

➢In Rural Areas People Using for India Post Payment Bank for Transitions and Using Other
Services

➢in rural area regarding use of ippb services, mobile banking and SMS banking missed call
banking and phone banking mostly prefer of mobile banking.

➢when asking for Their use of ippb bank they prefer to use ippb bank as there need.

➢Majority of people are aware about India post payment bank.

➢rural people are using credit siddhi for their business needs.

➢in rural area they are gaining knowledge of ippb bank products throughout printmedia and
world of mouth publicity, electronic media, campaign etc.

➢majority of people compare ippb bank product and most of people are using ippb bank as
their primary account

➢in rural areas most of the people will like to do banking with ippb in near future

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 LIMITATION OF STUDY

 . Technology and Language barrier

 Level of literacy

 People are not aware about IPPB

 Rural area is scattered

 In Rural areas Proper Source not available.

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Challenges Faced By India Post Payments Banks

 Limited Scope of Income Generation: Main source of income of conventional banks

are interest earned from lending and income from investing deposits. As payments banks
are restricted to advance loan and payments banks are required to invests 75% of deposits
in government securities and remain 25% in current and fixed deposits of conventional
banks.

 Behavioral Barriers: India Post Payments Banks is experiencing Less usage of its products
and services. More than 60% of account holders have not performed any financial
transaction from its inception.

 Existing Competitors: At present six payments banks are operating in India including IPPB.
India Post Payments Bank has to compete not only with existing Payments Banks but also
with traditional banks. 194 International Journal of Advanced Research in Commerce,
Management & Social Science (IJARCMSS) - January- March, 2021

 Lack of awareness: Payments Banks are new concept investors are not aware about
payments banks. IPPB mainly focuses on rural population were people not much literate.
IPPB operates on digital platform and people are still not comfortable with cashless
ecosystem.

 Lack of internet and mobile services literacy: IPPB provide its through mobile application.
Major targeted segment of IPPB is in remote areas of India where population is not familiar
will the usage of Internet and featured phones.

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 CHAPTER-7 RECOMMENDATION AND SUGGESTION

Firstly, I could observe that the general level of awareness among the people regarding India
post payment bank brand is low, therefore the brand should focus on advertising both at the
central as well as local Level.

2.We know that the products and services offered by the company are the best but more or
less similar are offered by other company as well, so promotional campaigns are must in this
era of stringent competition.

3.We know that in this world of intense competition everyone is trying to prove itself best its
respective field therefore we can conclude that there is always an edge of improvement and
hence the brand should work on that. Establish and coordinate business relation with big
corporate houses across the country.

4.IPPB can improve upon its efficiency by not changing its staff frequently. By doing this
company can continue to create, maintain and grow strong relationship with its existing
customers. Idea behind this is that staff which is already working for company is well-
acquainted with the nature and wants of the existing customers.

5.IPPB BANK could tap the rural markets with cheaper products and smaller policy terms.
There are individuals who are willing to pay small amounts as interest rates but the plans do
not accept interest below a certain amount. This was a general conclusion drawn
during prospecting clients.

6.IPPB should chalk out some programs to create general awareness regarding its presence
and various services of the company.

7.Today is the era of competition. In order to increase the company network (In terms of
clients and business volumes) an aggressive approach is required.

8.The Bank should recruit more marketing personnel so that they can cover majority of
villages so the marketing Personal marketing can people into confidence.

9.IPPB should try to make its promotional activities more effectively.

10.It can use industrial magazine media as an advertising tool for approaching is market
segment.

11.It should regularly conduct market research and surveys for knowing customers better and
for facing threat from competitors.

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 CHAPTER-8 CONCLUSION

Conclusion Indian Post payments Bank was launched with the vision to build the
most accessible, affordable, and trusted bank for the common man. The focus of
IPPB is financial inclusion of unbanked and under banked sector of India and to
create cashless ecosystem. IPPB running the largest training programmed of financial
literacy and digital literacy. India Post Payments Bank has the leverage of largest
postal network in the world. IPPB has increased the size of rural banking
infrastructure by seven times. As IPPB is not allowed to advance loans which is the
primary income source of banks, IPPB need to more focus on new ways of income
generation.

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 ANNEXURE & APPENDICES

QUESTIONNAIRE

Personal details:

Name:

Address:

Contact no.

Age:

1. Which type of bank account do you have?

(A) Regular saving Account ( ) (B) NREGA Saving Bank Account ( )

(C) Current Account ( ) (D) Other ( )

2. In which kind of bank would you prefer to take rural IPPB Payment bank?

(A)Public Bank (IPPB) ( ) (B) Private bank ( ) (C) Rural bank (D) Other ( )

3. What all service do you use?

(A) Mobile Banking ( ) (B) SMS Banking ( ) (C) Missed Call Banking ( )

(D) Phone Banking ( )

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4. How do you prefer to use IPPB (India Post Payment bank)?

(A)As a Need ( ) (B) As an Expenses ( ) (C) As an Investment ( ) (D) Both ( )

5. Do you know about India post payment bank?

(A)YES [ ] (B) NO [ ]

6. Do you prefer to take small business loan?

(A) YES [ ] (B) NO [ ]

7. From where do you get the knowledge of product Of IPPB Bank?

(A)Print media ( ) (B) Electronic media ( ) (C) word of mouth publicity ( )

(D) Campaign ( )

8. Do you compare the financial product of IPPB bank with another Bank before purchasing
them?

(A)YES [ ] (B) NO [ ]

9. Would you like to do banking with IPPB Bank in near future?

(A)YES [ ] (B) NO [ ]

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 BIBLIOGRAPHY & REFERENCES

Websites:

 www.IPPB.com
 www.indiapost.gov.in
 www.postoffice.co.uk
 www.postoffice.co.in

Magazines:

 Business Today
 Business Today
 Economic Times
 Material provided by the company
 Business World

Search Engines:

 www.google.com
 bing.com

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