Even after RBI’s refusal to let India Post function as a full-course bank, the department hasn’t given up. As a result, in February 2015, it received the in-principle license to work as a payments bank.
Since long, the department is involved in offering simple financial services like taking deposits, money transfer etc. Now, things have really started to get momentum. After this massive leap, Post Bank of India is going to offer us:
Deposit Service
India Post accepts deposits from Indian nationals with a maximum limit of Rs. 1 lakh per depositor. It also pays interest on these deposits, though the rate varies depending upon the type of the account. As a payments bank, it is only allowed to accept current and savings deposits.
Chequebooks
Cheque books are issued for every cheque account. However, to maintain such account, minimum balance requirement is Rs. 500. In addition, branches using core banking software issue account statements.
ATM Facility
In February 2014, India Post established its first ATM machine in Chennai. Now it is expanding the network and offering ATM cards to all Post Office Savings Bank account holders. These cards can also be used in traditional bank machines.
Online and Mobile Banking Facility
The department has undergone massive change on the technology front. The current goal is to offer low-cost, high-quality service to the customers. Online banking and mobile banking facilities are great means for that.
Since 2013, India Post is offering Core Banking Solutions. Currently, the facility is available in more than 12150 branches.
Utility Bill Payment Facility
Using the post-office e-Payment system, businesses collect utility bills from customers. Post Office Savings Bank customers pay their electric bill, telephone bill etc. from their account balance and the centrally collected sum is then transferred to the biller through cheques. The department charges a fee depending upon the payment amount.
Money Transfer Service
India Post’s money transfer service has crossed the national boundary. It is now possible to transfer money (personal payments) to someone even in a foreign country. Department’s online portal makes that possible. Money Order, Electronic Money Order, MO Videsh and Money Gram International Money Transfer are some of the convenient methods to transfer money using India Post’s service.
RTGS, NEFT and IMPS mechanisms are used for transactions with other Indian banks.
Financial Products
India Post distributes non-risk financial products, e.g. insurance, mutual funds units, bonds etc. Among its most popular investment options Postal Life Insurance, Rural Postal Life Insurance and National Savings Certificate are worth mentioning.
However, not all post offices are offering mutual fund investment option. The list of designated post offices is available on the portal of India Post. At these post offices, investors can inform themselves on the available products and submit their application forms. The price must be paid in either demand draft or cheque.
Conclusion
As payments bank, India Post is going to work completely differently. It is now more technology-driven and efficient. The department is coming up with updated services which are the need of the time. The best thing is that all these will be available to even economically weak, rural customers.
