India Posts Payments Bank services are expected to be available across the country by April, Communications Minister Manoj Sinha today said.
"(India Posts) Payments Bank branches will be opened across 650 districts by around April. All these branches will be linked to rural post offices. This will be largest banking network in the country," Sinha said on the sidelines of the launch of Deen Dayal SPARSH scholarship scheme.
The IPPB branches are operational in Raipur and Ranchi. It will use post offices for its operations. There are 1.55 lakh post offices in the country.
In the private space, Airtel Payments Bank, launched in January this year, started operations with a network of 2.5 lakh merchants. Chinese internet firm Alibaba controlled Paytm also started payments bank operations this year.
Payments banks can accept deposits of up to Rs 1 lakh per account from individuals and small businesses.
The new model of banking allows mobile firms, supermarket chains and others to cater to banking requirements of individuals and small businesses.
Payments banks are set up as differentiated banks and will confine to accepting demand deposits, remittance services, Internet banking and other specified services.
IPPB 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.
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