All 1.55 lakh post offices to offer payments bank service


The India Post Payments Bank is ready to turn 1.55 lakh post offices and 3 lakh employees into India’s second-largest payments bank in terms of reach. Payments bank is a new model of banking that allows mobile firms, supermarket chains to cater to banking requirements of people. They can accept deposits of up to Rs 1 lakh. Payments banks confine their activities to acceptance of demand deposits, remittance services, Internet banking and other specified services. It offers savings account up to a balance of Rs 1 lakh, along with digitally enabled payments. India Post Payments Bank offers an interest rate of 4.5 per cent on deposits up to Rs 25,000, 5 per cent on Rs 25,000-50,000 and 5.5 per cent on Rs 50,000-1,00,000.