India Post Payments Bank’s Customer Base Crosses 5 Crore Mark

The India Post Payments Bank (IPPB), a ‘Digital-First Bank’ built on the rails of India Post’s wide physical distribution network under the Ministry of Communication, Government of India, has announced a major milestone since its inception towards achieving its financial inclusion goals through digital banking, which was dubbed “the biggest initiative of financial inclusion in the country” by the Prime Minister at its launch.

IPPB stated today that it has surpassed the five-million customer threshold in just three years of business, making it one of the country’s fastest-growing digital payments banks.

With the support of roughly 1.47 lakh doorstep banking service providers, IPPB opened these five crore accounts in a digital and paperless manner through its 1.36 lakh Post Offices, of which 1.20 lakh are in rural regions. IPPB has created the world’s largest digital financial literacy programme by using the strength of 2,80,000 Post Office employees to create a financially informed and empowered client base. IPPB further asserted that it has brought digital banking to the masses through the NPCI, RBI, and UIDAI Interoperable Payments and Settlement Systems, which offer services in over 13 languages.

Surprisingly, roughly 48 percent of overall account holders were women, compared to 52 percent of males, indicating the Bank‘s concentration on getting women clients into the banking network. Approximately 98 percent of women’s accounts were opened at their doorsteps, and over 68 percent of women received DBT benefits. IPPB also announced that it has attracted youths to use its digital banking services. More than 41% of account holders were between the ages of 18 and 35.

“At India Post, we are committed to become one of the greatest financial inclusion networks in India, covering both urban and rural India,” stated Shri Vineet Pandey, Secretary, Department of Posts, speaking about this historic occasion. The effectiveness of this approach of offering a cost-effective, simple, easy, and secure digital ecosystem, particularly to rural India, is demonstrated by the fact that it has reached five crore customers in just three years. We’re pleased that we’ve been able to provide financial services to rural women as well.

“It is a proud moment for the Bank, as we have grown from strength to strength while delivering uninterrupted banking and G2C services even during the Covid-19 Pandemic,” remarked Shri J. Venkatramu, MD & CEO, India Post Payments Bank. “On a totally digital and paperless banking infrastructure that serves customers at their doorstep, the Bank is able to increase its customer acquisition. Through partnership and co-creation of appropriate goods and services, the bank is committed to serving rural, underbanked, and unbanked populations.”

With this perspective, IPPB has been able to capitalise on the Department of Posts‘ parental power to reform and reshape the financial inclusion landscape across the country. By using India stack such as JAM, Sahmati, and others, we hope to create a unified service platform offering various citizen-centric financial services, including credit, at the doorstep in the near future.