India Post Payments Bank launched, offers up to 5.5% interest rate on deposits
India Post Payments Bank (IPPB) on Monday kicked off its operations by rolling out pilot services in Raipur and Ranchi. The bank will offer an interest rate of 4.5% on deposits up to Rs25,000; 5% on deposits of Rs25,000-50,000 and 5.5% on Rs50,000-1,00,000, its chief executive officer A.P. Singh said.
The paid up equity of the new bank is Rs800 crore, of which the government has already infused Rs275 crore, he added. “The idea is to have a branch in every district and make 3 lakh postmen come alive in payment bank function,” he said.
Also 1,000 ATMs of India Post will be transferred to IPPB, Singh added. Telecom minister Manoj Sinha said that IPPB plans to have 650 branches across the country by September 2017.