Differences between India Post Payments Bank account and Post office Savings account


On 1st September, 2018, the Central Government has launched the Indian Post Payment Bank (IPPB). This has been launched by the Department of Post and the Ministry of Communication. Know the salient features of IPPB and its difference with Postal Savings Account offered by the Post Offices.

On 1st September, 2018, the Prime Minister of India, Shri Narendra Modi has launched India Post Payments Bank (IPPB). The target of IPPB is to take banking to the doorstep of every Indian family. As per this IPPB, the Postmen and Grameen Dak Sewaks are equipped with digital aids for delivering financial services. The IPPB has been generating attention because of its unique but simple method of operation. So, let us try to know about IPPB. We must also know the differences between the IPPB and Post Office Savings Account (POSA).



Salient features of IPPB

  1. IPPB started its operations on experimental basis in Ranchi and Raipur in January, 2017. IPPB functions under the Department of Post and the Ministry of Communication.
  2. The India Post Payments Bank offers 4% interest on the savings account. Account holders can deposit up to Rs 1 lakh in their accounts.
  3. The IPPB doesn't offer credit or loan services to the customers. However, the IPPB will work in partnership with other banks to market their loan or credit schemes to the account holders.
  4. IPPB offers savings and current accounts, money transfer, direct benefit transfers, bill and utility payments, enterprise and merchant payments. The IPPB will make use of counter services, micro-ATM, mobile banking app. It would send SMS and IVR to the account holders for facilitating these services.
  5. IPPB will gradually link seventeen crores POS accounts with the new IPPB accounts. This step signifies that the older POSA-holders will be able to enjoy the unique benefits of IPPB without going through difficulties.
  6. In addition, the IPPB offers unique doorstep banking facilities. Customers don't have to visit the bank branch. Further, withdrawal can be made by a unique code.


The differences between IPPB and POSA

  • Now let us discuss the differences between POSA and IPPB. In POSA, the minimum deposit is Rs. 20/-. The minimum amount required for cheque facility is Rs. 500/-. On the other hand, IPPB provides zero balance savings account.
  • In POSA, the minimum balance required is Rs. 50/-. In IPPB, there is no concept of minimum balance
  • On the other hand, there is no upper limit of the account balance in POSA. In IPPB, the maximum limit in a basic savings account is Rs. 1 lakh.
  • POSA is always uniform. There is no variation. But, IPPB offers three types of savings account, viz., Regular, Digital and Basic.
  • POSA does not offer doorstep banking. IPPB has been providing this facility with a nominal additional charge.




Final few words

IPPB has been trying to facilitate banking to the remotest area where there is no bank branch or a very few bank branches. It is expected that after full-fledged implementation, every Indian citizen would be able to enjoy banking facilities.


Article by Partha K.
“Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves.” - George Gordon Byron

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