The difference between a post office savings account and a post-payment bank!
Posted on: 05/Apr/2021 4:58:01 PM
Post Payment Bank
India Post Payments Bank (IPPB) was launched on September 1, 2018, by Indian Prime Minister Narendra Modi, to ensure financial inclusion of all the citizens in the country, especially the rural population. The IPPBs will have 650 branches and 3250 access points across the country.
Main Objective
The main objective of the IPPB is to build the most accessible, affordable and trusted bank for the common man.
Post Office Savings Account:
The post office saving account (POSA) also aims to serve the same purpose!
As such, both accounts can be linked together.
So how are the two banking systems different?
| Parameters | IPPB | POSA | |
| Types of Account | The IPPB offers three different types of savings account - regular, digital and basic. | POSA offers standard banking and remittance services. | |
| Opening an Account | Accounts can be opened instantly through their respective mobile apps just by providing details like Aadhaar number with KYC verification. | Accounts can be opened after filling a post office savings account application form and submitting the required KYC documents - identity and address proof. | |
| Deposits | Zero balance savings accounts can be opened | Accounts can be opened with a minimum deposit of Rs 20. The accounts with cheque facility require a minimum deposit of Rs 500. | |
| Interest | 4 percent interest on deposits, payable quarterly. | 4 percent interest on deposits, payable quarterly. | |
| Account - minimum balance | Account holders do not need to maintain any minimum balance in their savings account. | Account holders have to maintain a minimum account balance of at least Rs 50 per month or Rs 500, for accounts with cheque facility. | |
| Account - maximum balance | The maximum savings amount is capped at Rs 1 lakh. Any amount above the figure will be transferred to the linked POSA account. | There is no maximum balance limit for the account holders. | |
| Doorstep Banking | New doorstep banking feature introduced. It, however, has additional charges. | No doorstep banking feature. | |
| Money Transfer | Money transfer allowed from the account to any bank account. IPPB customers can use NEFT, RTGS and other money transfer services as available for any banking customers. | Money transfer allowed within post office savings bank (POSB) accounts. Once POSB accounts are linked with IPPB, customers will be able to enjoy all money transfer service like other banks. | |
| Withdrawals | IPPB offers a free debit card with annual maintenance fee of Rs 100 from the second year. It doesn’t charge any fee for withdrawals made from its own ATM or any PNB ATM. | Customers will be offered a debit card while opening the account. The card can be used to make withdrawals from any ATM across the country. | |
| Governing Authority | Reserve Bank of India | Union finance ministry |
