India Post, the national postal services provider of the country launched banking services on the 1st of September, 2018. There was already a savings and certificates issuing scheme in place prior to this, but the national organization as decided to improve service offering and encourage more of the population from remote parts of the country to participate in financial savings schemes being offered. The process for this upgrading of services was begun back in 2015, and has now culminated in the creation of the India Posts Payments Banks.
As a Payments Bank, its services will be limited when compared to private sector or traditional banks. However, there will be enough to afford the average wage earner to be able to put away a little bit of the earnings she or he receives and allow it to accumulate with an Interest Rate of 4%. The maximum deposit amount is 100,000 rupees, and though doorstep banking facility will be available, it will be limited to 10,000 rupees per transaction and carry a 15-35 rupee transaction charge.
Three types of savings accounts will be offered, namely regular, basic and digital. An ATM facility has also become part of this revamped banking services, and customers will be able to get SMSes of deposits and withdrawals from their account, also. Services that will be continued include the ability to pay bills at the post office, purchase certificates that carry a higher rate of interest and effectively serve as a term deposit. The upgraded services offer accessibility to the funds in one’s account through a mobile app, facilitating payments online.