India Post Payments Bank (IPPB) has more than doubled since the pandemic started last year, although payment
banks in general are struggling to find a viable business model.
The state-owned lender has an average of around 1 million transactions worth 30 million rupees per day. Now you can create a platform for digital services with the Indian postal network.
“This (number of transactions) has increased phenomenally since the Covid outbreak that paralysed the movement of normal people,” J Venkatramu, chief executive of India Post Payments Bank, told ET.
“In the past 15 months, 4.5 lakh customers have used the digital life certificate platform, which seemed a relief for the elderly who were unable to move due to health hazards and lockdown restrictions,” he said.
Digital Life Certificate, which allows older people to upload their proof of life for any retirement plan instead of appearing in person before the authorities, is one of the services for citizens that the PayBank launched a few months ago.
“A synergy between India’s vast postal network and our digital technologies can work wonders in rural banking,” said Venkatramu, who is also its CEO.
postal customers have the option of transferring funds online from their IPPB account to various postal systems such as PPF, Sukanya Samriddhi and Recurring Deposit without having to go to a post office.
Now you can create a digital services platform with the Indian Post Network that anchors it.
“Aadhaar will be our focus for such a digitisation plan,” said Venkatramu.
The bank has already launched an assisted digital services platform through India Post’s Grameen Dak Sevaks that provides a variety of basic banking services. The central bank has connected all post offices to offer banking services.
However, the physical visit to the post office remains a key for millions of savers looking for higher interest income than traditional bank deposits.
“We want to act as a digital interface for India Post that enables scalable service delivery over the last mile,” said the CEO.
Founded in 2018, the payment bank aims to increase its commission income by providing a variety of customer-centric services through collaboration. IPPB is already working with the Direct Benefit Transfer Program, the government’s most popular project, to get your grants to beneficiaries . 650 branches and a deposit of more than 2,500 million rupees.
“We strive to become a pre-eminent player in rural financial services,” said Venkatramu.
The bank has also implemented 2- and 4-wheel insurance in the supported model, which enables IPPB’s customers to take out their insurance through the postman or the post office.