How India Post Payments Bank savings account differs from post office savings account.

India Post Payments Bank savings account can be opened with zero balance. There are no restrictions on the number of withdrawals in a month.

The launch of India Post Payments Bank or IPPB will help in bringing the unbanked into the banking system. The government aims to link over 1.5 lakh post offices with India Post Payments Bank. As mandated by the RBI, a payments bank is not allowed to issue any form of loan or credit card. India Post Payments Bank will focus on providing basic financial services, especially through savings accounts and payments services such as social security payments, utility bill payments and money transfers. India Post Payments Bank will also provide access to third-party financial services such as mutual funds, insurance, pension, and loan products.

India Post Payments Bank has been set up as a 100% Government of India owned Public Limited Company under the Department of Posts. It will initially have 650 branches and 3,250 access points in post offices across the country.

India Post Payments Bank Regular Savings Account - Key things to know

India Post Payments Bank is offering 4% interest to its savings account customers.

India Post Payments Bank is currently not offering its customers an ATM or debit card.

IPPB account holders will be issued a QR Card with a unique QR code. The QR card in an ATM since it is not an ATM card.

The QR code will be used to identify India Post Payments Bank account holders through smartphones or micro-ATMs. Further, after verification using biometric data, the customer is paid in cash.

An India Post Payments Bank savings account can be opened with zero balance. There is no requirement for maintaining any monthly average balance.

According to RBI guidelines, you can hold a maximum of Rs 1 lakh in a savings account of a payments bank.

Funds exceeding Rs 1 lakh in the regular savings account can be transferred to the account holder’s linked Post Office Savings Account (POSA). IPPB has collaborated with the Department of Posts for opening a POSA, which will be linked to India Post Payments Bank account.

IPPB has permission to link around 17 crore postal savings bank (PSB) accounts with its own setup.

There is no cap on the number of withdrawals in a month. You can make unlimited deposits in a month, subject to the Rs 1 lakh limit.

Cheque book facility is not available.

There are no cash deposit or withdrawal charges. But for doorstep banking services, India Post Payments Bank will charge Rs 15 for digital transactions and Rs 25 for cash-based transactions.

Account holders can also use the mobile banking app for checking balance, statement, bill payments and for online transfers.

Post Office Savings Account – Key Things To Know

Postal savings accounts offer ATM facility.

Minimum amount required for opening a post office savings account is Rs 20.

Cheque facility is available if an account is opened with Rs 500 and for this purpose the minimum balance of Rs 500 in an account is maintained.

For non-cheque facility account, the minimum balance of Rs 50 has to be maintained.

The post office savings account offers 4% interest to account holders.

The cheque facility can be also be later added in an existing account.

At least one transaction of deposit or withdrawal in three financial years is necessary to keep the post office savings account active. (Source: Livemint)