Tag: india post payments bank

Department of Posts, payments bank arm to sell Bajaj Allianz Life products

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Bajaj Allianz Life Insurance Company (BALIC) has entered into a strategic partnership with Department of Posts and India Post Payments Bank to offer two Point of Sale (PoS) products — a term product and an annuity product — through the postal department’s network of 1,36,000 banking access points and the payments bank’s 650 branches.

Through this alliance, BALIC has become the first private life insurer in the country to enter into a tie up with the Department of Posts for sale of PoS products.

Augment earlier offerings

Speaking to BusinessLine post the announcement of this partnership, Tarun Chugh, Managing Director & Chief Executive Officer, BALIC, said that Bajaj Allianz Life Smart Protect Goal and Bajaj Allianz Life Guaranteed Pension Goal will be available to customers in addition to DOP’s existing Postal Life Insurance and Rural Postal Insurance products.

Chugh said. While SPG is a term insurance product, GPG is an annuity product that aims to meet post retirement expenses as it offers guaranteed and fixed pension product. “It’s a guaranteed pension product”, Chugh said.

Expand access

This alliance will enable the lakhs of Gramieen Dak Sevaks to offer financial solutions in rural areas.

“We are confident that this partnership will play an integral role in increasing the adoption of life insurance across various customer segments.”, Chugh said.

It maybe recalled that BALIC had, in 2018, entered into corporate agency agreement with IPPB. Now, this arrangement is being expanded into a more comprehensive and expansive agreement with the inclusion of the Department of Posts (DoP). , according to Chugh.

Pawan Kumar Singh, DDG – FS & PBI, Department of Posts (DoP), said, “With this partnership, we will take financial inclusion forward. The Department of Posts is going to play a major role in ensuring financial inclusion in days to come,” he said.

Financial inclusion

Singh added that technology will play a major role in financial inclusion and highlighted that the entire network of 1.57 lakh post offices is seamlessly connected.

J Venkatramu, MD & CEO, India Post Payments Bank, said that IPPB already offers Pradhan Mantri Jeevan Jyoti Bima Yojana to its customers that aligns with Government’s mission of creating a universal social security net and making insurance affordable for the underprivileged and disadvantaged sections.

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India Post Payments Bank to manage Department of Posts ATMs

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The Department of Posts (DoP) has decided to handover operations of its pan-India network of 1,000 onsite ATMs to its arm, India Post Payments Bank (IPPB).

IPPB, in turn, plans to engage the services of a managed service provider (Brown Label ATM operator/BLAO) to manage these ATMs on an operational expenditure (opex) model.

The move by IPPB to hire a managed service provider comes at a time when the Reserve Bank of India (RBI) and the Ministry of Home Affairs (MHA) have tightened the norms relating to the ATM ecosystem.

RBI norms include implementation of cassette swap for replenishing ATMs and introduction of a scheme of penalty for downtime at ATMs due to cash-outs.

Further, MHA had issued guidelines in 2018, prescribing cut-off time, after which no cash loading of the ATMs or cash transportation activities can be done in urban and rural areas and left-wing extremism affected areas.

Responsibilities

IPPB expects the managed service provider to replace all the existing ATMs of DoP (India Post) with new ATMs on opex model.

The service provider will also be responsible for the ATMs’ upgrade, maintenance, cash management, customer complaints redressal and online monitoring, among others.

These ATMs will be integrated with the bank’s existing infrastructure seamlessly. IPPB will be sponsor bank and DoP will be a sub member for ATM operations.

Under the opex model, transaction revenue will be with IPPB and the managed service provider will be paid a fixed monthly amount for each ATM machine and support infrastructure such as AC, UPS, etc.

As per the Reserve Bank of India’s Committee to Review the ATM Interchange Fee Structure (2020), the average monthly cost of operating ATMs in the case of managed service providers, who deploy and operate ATMs for banks, is about ₹70,565 per ATM pre-compliance and would be about ₹83,700 per ATM after complying with recent ATM security guidelines and control measures, MHA guidelines and cassette swap requirements.

The aforementioned cost does not include cost of cash (holding) as it is borne by banks in BLAO model, the six-member Committee headed by VG Kannan, then Chief Executive of the Indian Banks’ Association, said.

The States where DoP has more than 50 ATMs include Tamil Nadu (97; the Department’s first ATM was inaugurated at Thyagaraya Nagar Head Post Office in Chennai in 2014); followed by Uttar Pradesh (89); Karnataka (76); Maharashtra (75); West Bengal (65); Rajasthan (64); Andhra Pradesh (59), and Kerala and Madhya Pradesh (52 each).

IPPB was set up by the government as a public limited company under India Post in 2016 to remove barriers to access basic financial services by the common man especially in the unbanked and under-banked areas.

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India Post Payments Bank and HDFC Ltd partner to offer home loans

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Mortgage lender HDFC Ltd and India Post Payments Bank (IPPB) have entered into a strategic alliance to offer home loans to nearly 4.7 crore customers of IPPB.

“Leveraging its extensive and robust country-wide network of 650 branches and over 1,36,000 banking access points (post offices), IPPB aims to make HDFC Ltd’s home loan products and its expertise available to its customers across India,” the two said in a statement on Tuesday.

The partnership aims to facilitate HDFC Ltd’s home loans to customers, especially in unbanked and underserved areas. IPPB will offer housing loans through nearly 1,90,000 banking service providers including postmen and Gramin Dak Sevaks.

J Venkatramu, Managing Director and CEO, IPPB said, “Complemented by our robust network and HDFC’s leadership in the housing finance market, the alliance aims to make housing loans available and accessible, using a digitally-enabled agent banking channel and position IPPB as a one-stop platform for all banking needs of customers, including credit.”

As per the MoU, credit, technical and legal appraisals, processing, and disbursement for all home loans will be handled by HDFC Ltd, while IPPB will be responsible for sourcing of loans.

Renu Sud Karnad, Managing Director, HDFC Ltd said, “IPPB has a strong presence across the country. This strategic alliance will go a long way to promote affordable housing in the remotest locations of our country.”

She further noted that housing is much more affordable today. “In the last couple of years, property prices have more or less remained the same in major pockets across the country while income levels have gone up. Record low-interest rates, subsidies under Pradhan Mantri Awas Yojana and the tax benefits have also helped,” she said.

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India Post Payments Bank, LIC Housing tie up to sell home loans, BFSI News, ET BFSI

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India Post Payments Bank (IPPB) has joined hands with LIC Housing Finance for selling housing finance products of the latter to its 4.5 crore customers, a statement said on Tuesday.

Through its robust and extensive network of 650 branches and more than 136,000 banking access points, IPPB will make LIC Housing Finance Ltd’s (LICHFL) home loan products accessible to its customers pan-India, the statement said.

Under the strategic partnership, credit underwriting, processing, and disbursement for all home loans will be handled by LICHFL, while IPPB will source the loans.

The alliance with LICHFL is part of IPPB’s strategy to expand its range of products and services, and to cater to the banking and financial needs of diverse customers, especially unbanked and underserved, across the country.

IPPB already distributes general and life insurance products through partnerships with insurance companies. Credit products are natural extension for the customers at the last mile, the statement said.

IPPB has an on-ground workforce of nearly 200,000 postal employees (postmen and Gramin Dak Sevaks) equipped with micro ATMs and biometric devices for doorstep banking. This will play a significant role in offering LICHFL’s housing loans.

“Easy access to credit for buying a house is an important prerequisite towards achieving inclusive growth. The partnership with LICHFL is a significant tie-up in IPPB’s journey to become one of the largest platforms for availing credit products by our customers for meeting various needs,” J Venkatramu, MD & CEO, India Post Payments Bank said.

LIC Housing Finance MD & CEO Y Viswanatha Gowd said the strategic MoU with IPPB will help the company to further deepen the market penetration.

“It will enable us to increase LICHFL’s home loan product outreach in untapped geographies across the country. With an unmatchable presence of post offices, we see this strategic partnership as a significant step that will help our long-term business growth and improve our market share,” he said.

LIC Housing Finance offers home loans starting from 6.66 per cent for loans up to Rs 50 lakh for salaried individuals.



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IPPB launches Aadhar mobile update service, BFSI News, ET BFSI

Personal Finance

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India Post Payments Bank (IPPB) announced today it has launched a service for updating mobile numbers in Aadhaar as a Registrar for Unique Identification Authority of India (UIDAI). Now a resident Aadhaar holder can get his mobile number updated in Aadhaar by the postman at his doorstep.

The service will be available through the extensive network of 650 IPPB branches and 146,000 postmen and Gramin Dak Sevaks that have been enabled to provide a range of banking services equipped with smartphones and biometric devices.

Dr. Saurabh Garg, CEO, UIDAI said that UIDAI in its constant endeavor to ease Aadhaar related services has brought in mobile update service at the doorsteps of residents through IPPB via Postmen and Gramin Dak Sevaks. It will immensely help the residents as once their mobile is updated in Aadhaar, they can avail themselves a number of UIDAI’s online update facilities and also several government welfare services.

J Venkatramu, MD & CEO, India Post Payments Bank said, “Through Aadhaar the Government has been able to reach out to crores of people and facilitate delivery of Direct Benefit Transfer under various schemes such as LPG – PAHAL, MGNREGS, etc., directly into their bank accounts. With the linking of many other services such as PAN, driving license, EPFO, and subsidized ration with Aadhaar, updating of mobile number in Aadhaar has become critical for all citizens from utility and security perspective. The mobile update service of UIDAI through the ubiquitous and accessible network of post offices, postmen, and Gramin Dak Sevaks will help in actualizing IPPB’s vision of serving the underserved and unbanked areas, and bridging the digital divide.”



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IPPB ties-up with Mahindra Rural Housing Finance for cash management solution, BFSI News, ET BFSI

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Mahindra Rural Housing Finance Limited (MRHFL), a subsidiary of Mahindra and Mahindra Financial Ltd, and India Post Payments Bank (IPPB) have tied-up for a strategic partnership for cash management solution. As part of the tie-up, IPPB will be offering cash management and collection services to MRHFL through its access points and postal service providers. With the cash management service, MRHFL customers will be able to repay their monthly or quarterly loan instalments at over 136,000 post offices.

The tie-up for cash management solution is aimed at customer inclusivity by both the partners. IPPB’s large national network combined with its simple, scalable and replicable technology framework has facilitated the deployment of cash management solution to meet the requirements of MRHFL.

J Venkatramu, MD & CEO, India Post Payments Bank, “As technology continues to evolve and creates new ways of doing business, it has been our constant endeavour to offer our customers and partners accessible & affordable banking solutions. Cash management being the lifeline of business operations, IPPB with its robust network and technology platform can help corporates to manage their receivables safely, securely and seamlessly.”

Anuj Mehra, Managing Director, Mahindra Rural Housing Finance said, “At Mahindra, we keep on looking at innovative solutions to enhance the customer support for our customers. The tie up with IPPB is a step in that direction which we believe will provide our customers access to efficient banking services and enable them to become financially secure and empowered. I am grateful to IPPB for agreeing to partner with us on this unique solution which will enable our customers to Rise”.



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RBI enhances maximum balance limit for payments banks to Rs 2 lakh, BFSI News, ET BFSI

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The Reserve Bank of India with a view to strengthen financial inclusion has enhanced maximum balance limit for payments banks.

Currently the limit on maximum end of day balance of Rs 1 lakh per individual has been increased to Rs 2 lakh from immediate effect.

The RBI said, “Based on a review of performance of payments banks and with a view to encourage their efforts for financial inclusion and to expand their ability to cater to the needs of their customers, including MSMEs, small traders and merchants, it has been decided to enhance the limit of maximum balance at end of the day from ₹1 lakh to ₹2 lakh per individual customer.”

RBI will soon issue a separate circular on the same.

ETBFSI had earlier reported that Payments banks had previously demanded to increase the deposit limit to Rs 5 lakh as major challenge for the payments banks was that there we no major takers as the limit of Rs 1 lakh was really low and merchants and customers didn’t wanted to go ahead to a bank with limitations.

The business model of payments banks have been a tough one to crack as the central bank didn’t allow them to offer credit nor accept higher deposits.

In 2015, In 2015, RBI granted a license to 11 Payment Banks. These 11 banks included Aditya Birla Nuvo, Airtel Payments Bank, Cholamandalam, India Post Payments Bank (IPPB), Fino Payments Bank, National Securities Depository Limited, (NSDL), Jio Payments Bank, Sun Pharma group by Dilip Singhvi, Paytm Payments Bank, Tech Mahindra, and Vodafone M-Pesa.

3 out of 11 payments banks — Cholamandalam, Tech Mahindra, and Sun Pharma had surrendered their license before even starting a business. After a successful launch and operating in the space, Aditya Birla Payments Bank also surrendered its license.

Currently, Fino Payments Bank, Paytm Payments Bank, India Post Payments Bank, Airtel Payments Bank, Jio Payments Bank are actively operating in this space.

Also Read: Payments Banks want RBI to increase the deposit limit to Rs 5 lakh



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Aadhaar Enabled Payments: Taking banking services to the doorsteps of the underserved

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K. Srinivasan, global chief revenue officer, FSS Technologies

New banking service delivery models are helping to create a populace ready to adopt new-age financial products. Doorstep banking services using Aadhaar Enabled Payment System Solution (AEPS) is a new technological advancement that has helped India Post Payments Bank (IPPB) to bridge the digital divide. The total transaction value processed by the AePS system has crossed the Rs 8,000-crore mark, indicative of IPPB’s scale and its ability to successfully tap into latent demand for financial products amongst hitherto underserved segments.

IPPB was set up by the government with a motive to take banking services to the unbanked section of the society. In rural and peri-urban areas, the average time to reach a banking access point is 1.5 to 5 hours, compared to the average of 30 minutes in urban areas. FSS Technologies has partnered with the IPPB to offer financial services at the last mile through interoperable, affordable services. This partnership aims to bring millions of unbank-ed customers into the financial mainstream. Currently, there are nearly 410 million Jan Dhan accounts in India and since launching AEPS services, the bank has become the single largest platform in the country for providing interoperable banking services to customers of any bank.

IPPB has deployed FSS Integrated Payment Stack to deliver digital payments products to its customers. This includes FSS Payments-in-a-Box, Aadhaar-enabled payments (AePS and Aadhaar Pay for merchants), bill payments, UPI payments, card payments, merchant payments (PoS and online).

“The current financial services delivery infrastructure created by India Post Payments Bank spans 1160,000 villages and 400,000 digital points and addresses the accessibility challenges faced by customers in the traditional banking ecosystem,” says K. Srinivasan, global chief revenue officer, FSS Technologies. “However, a combination of simple-to-use technology, along-with the ability to leverage the existing postal network and the inherent interoperability offered by the AePS payments infrastructure has helped us deliver services to customers at their doorstep,” he adds.

The operation of FSS’ AePS solution is very simple and requires zero investment on part of the customer. The service is based on agents performing transactions on behalf of customers using a tablet, a micro-ATM or a POS device. Customers of any bank can access their Aadhaar-linked bank account by simply using their fingerprint for cash withdrawal, balance enquiry and transfer of funds into an operating IPPB account, right at their doorstep.
“Building an Atmanirbhar, digitally inclusive India is the fundamental tenet guiding the IPPB-FSS partnership.

The Covid-19 health emergency is propelling a massive shift toward digital markets and digital finance The transaction account and basic banking services offered via AePS has helped address institutional supply side constraints. The basic transaction account functions as a gateway and potentially opens an entirely new market for a range of asset-based and liability-based financial products – micro-insurance, micro-investments, micro-loans,” Srinivasan concludes.

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