India Post Launches Payments Bank – Offers Up to 5.5% Interest Rate on Deposits

Ever since the RBI has conceptualized payments bank, India Post is the first Government owned entity and the third ever entity in the country to launch a payment bank. India Post’s payment bank operations are now available in limited cities starting from Ranchi and Raipur but soon will extend to whole of India.

What is a Payments bank?

A payments bank is one that is solely used for payment purposes and won’t offer loans or credit cards and will only accept deposit of up to 1 Lakh Rupees. It can be used for bill payment purposes etc and will have specialized arrangements with chosen merchants and vendors.

India Post Payments Bank Features

India Post will have different interest rates for deposits of different slabs as mentioned below.

Deposits up to Rs 25,000 – 4.5% Interest
Deposits of Rs 25,000-50,000  – 5% Interest
Deposits of Rs 50,000-1,00,000 – 5.5% Interest

Compared to AirTel Payments bank, these are lower interest rates. AirTel Payments bank offers up to 7.5% interest rates with personal accidental insurance of up to Rs. 1 Lakh.

India Post Payment Bank Account Types& Features

Regular Account – Safal
Eligibility – Anyone with KYC documents and 10+ Years of age
Minimum Deposit Requirement – Rs.100
Maximum Deposit Possible – Rs.1 Lakh
ATM/Debit Card – Free
Annual Maintenance Charges (from 2nd year) – Rs.100
Minimum Quarterly Balance – Nil
Interest Payments – Quarterly
Mobile Alerts – Free
Sugam Account
Eligibility – Anyone with KYC documents and 10+ Years of age
Minimum Deposit Requirement – Rs.100
Maximum Deposit Possible – Rs.1 Lakh
ATM/Debit Card – Free
Annual Maintenance Charges – Rs.100
Minimum Quarterly Balance – Nil
Interest Payments – Quarterly
Mobile Alerts – Free
Saral Account
Eligibility – Anyone with KYC documents and 10+ Years of age
Minimum Deposit Requirement – Rs.100
Maximum Deposit Possible – Rs.50,000
ATM/Debit Card – Free
Annual Maintenance Charges – None
Minimum Quarterly Balance – Nil
Interest Payments – Quarterly
Mobile Alerts – Free

My take on India Post Payments Bank

I think India Post will grow slow and steady unlike private players. Interest rates may be lower but they might have more benefits coming in like tie ups with BSNL, LIC etc. It is easy for them to bring up additional value that way. Eventually, it might end up like BSNL, which doesn’t come up with sharp offers first, but will keep catching up with others if needed. It can stoop down unlike other private players. I am positive about this move.

About the author

Mani Karthik

Hi, Mani Karthik here. Having lived in USA, India & Middle East, and worked for big MNC's to startups, I have a lot to share with you. My aim is to help people, by sharing everything I've learned in life. This blog is read today, by more than 200K people world over! I'm basically from Kochi, Kerala and spend my time between Los Angeles and India. Here's my full story. Connect with me on FacebookInstagram, Twitter or WhatsApp (+001-408-489-4785). :)

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