What are the Products and Services of IPPB or India Post Payment Bank
IPPB will leverage the physical and IT infrastructure of the Post office and be set up on a lean operating model. It will focus on low-cost, low-risk, technology based solutions to extend access to formal banking.
Products and Services of IPPB
1. IPPB Payment Services
IPPB will provide the benefits of payments and remittances to the customers, by adopting newer, efficient processes and technologies such as mobile based payments, digital wallets and innovative payment and remittance products that are continuously emerging in the market today.
Combined with doorstep cash payment options like traditional money orders, IPPB will differentiate itself from the other players while comparing well with all other benefits offered by competitors.
IPPB will drive the benefits of financial inclusion by bringing a host of financial products to suit the needs of different strata of society with special focus on the marginalized sections and citizens in rural areas. In so doing it will also provide the following proposed services:
1. Direct Benefits transfer (DBT) of social security payments of various Ministries.
2. Utility bill payments for electricity, water, telephone, gas etc.
3. Facilitate payments of various Central and State Govt& Municipal dues, taxes and fees/taxes of various Universities/ educational institution.
4. Person to person remittances both domestic and cross-border. Special focus will be on providing, economical, safe and convenient money transfer facilities to migrant labourers, NRIs remitting money to relatives, institutions etc.
5. Demand Deposits (Current account and Savings Account)- with special focus on MSMEs, small entrepreneurs, village panchayats & SHGs.
6. Distribution of third party financial products such as Insurance (health & general), mutual funds and pension products.
7. Access to formal credit products by acting as BCs of banks & MFIs.
Product innovation will be a continuous exercise to expand the bouquet of services adapting to the evolving needs of its customers and the rapid advancements in communication and payments technologies.
2. IPPB Banking Services
Apart from savings account with up to INR 1,00,000 in deposit, the products offered by IPPB are different from POSB products. POSB savings accounts do not have any limit unlike payments bank savings account. On the other hand, payments banks, can offer current accounts for use by businesses and institutions whereas POSB does not offer these accounts.
Other kinds of deposits under POSB are unique to it and will not be on offer by the payments bank. The purpose of the savings accounts and current accounts of IPPB is to facilitate flow of money and payments of different kinds from Government to Citizen, Citizen to Government, Citizen to Citizen, Citizen to Businesses and Businesses to Citizens whereas the POSB accounts are mainly savings instruments.
Apart from the existing customers of the DoP, IPPB will focus on the underbanked and unbanked population in different parts of the country. It will also try to target services for MSMEs, senior citizens, students, migrant population, low income households, unorganized sector and other groups with special service requirements.
Apart from the existing customers of the DoP, IPPB will focus on the underbanked and unbanked population in different parts of the country. It will also try to target services for MSMEs, senior citizens, students, migrant population, low income households, unorganized sector and other groups with special service requirements.
In addition to its own products, the payments bank will partner with third parties to offer a wide range of financial and banking services to cater to the needs of its target segments.
The customers will have the choice of the amount they want to leave in their IPPB account at any point of time and they will earn interest on their money in these accounts also.
The customers will have the choice of the amount they want to leave in their IPPB account at any point of time and they will earn interest on their money in these accounts also.
They would be able to channel money from their IPPB accounts to any of the POSB schemes. For example, an IPPB customer will be able to use money in his account to open and service a RD/ TD/ SSY or any other POSB account.
Thus, both IPPB and POSB can synergistically serve the customers.
One more CAT case filed at Allahabad Bench i/c/w PS Gr. B examination
Two IPs of UP Circle has filed OA No. 1589/16 at Hon'ble CAT Allahabad Bench for non consideration of their candidature for appearing in the PS Gr. B examination held on 18-12-2016. Hon'ble CAT has directed respondent (i.e DOP) to file counter reply within 4 weeks and also directed that result of the examination will be subject of outcome of OA. The next date of hearing is 9-2-2017.
CCS Rules 1961 – Guidelines for prevention of sexual harassment of women
No.11013/7/2016-Estt.A-III
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
Establishment A-III Desk
North Block, New Delhi,
Dated the 22nd December, 2016
OFFICE MEMORANDUM
Subject:- Central Civil Services (Conduct) Rules 1961 — Guidelines regarding prevention of sexual harassment of women at the workplace – regarding.
The undersigned is directed to refer to the DoPT OM number No.11013/2/2014-Estt.A-III, dated the 16th July, 2015 etc., vide which need for effective mechanism to ensure that inquiries in the case of allegations of sexual harassment are conducted as per the prescribed procedure and that they are monitored have been issued. Recently, a meeting was held under the Chairmanship of Minister, Women and Child Development wherein concern was expressed that the inquiries in such cases are taking unduly long time. It has, therefore, been decided that the following further steps may be taken to ensure that the inquiries are conducted expeditiously and the aggrieved women are not subjected to victimization:
(1) As already conveyed vide OM dated 2nd February, 2015 all Ministries/Departments shall include in their Annual Reports information related to the number of such cases and their disposal.
(2) As far as practicable, the inquiry in such cases should be completed within 1 month and in no case should it take more than 90 days as per the limit prescribed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
(3) It should be ensured that the aggrieved women are not victimized in connection with the complaints filed by them. For a period of five years after a decision in a proven case of sexual harassment, a watch should be kept to ensure that she is not subjected to vendetta. She should not be posted under the Respondent, or any other person where there may be a reasonable ground to believe that she may be subjected to harassment on this account. In case of any victimization the complainant may submit a representation to the Secretary in the case of Ministries/Departments and Head of the Organization in other cases. These representations should be dealt with sensitivity, in consultation with the Complaints Committee, Ministries/Departments and Head of the Organization in other cases. These representations should be dealt with sensitivity, in consultation with the Complaints Committee, and a decision taken within 15 days of the submission of the same.
(4) All Ministries/Departments shall furnish a monthly report to the Ministry of Women and Child Development giving details of number of complaints received, disposed of and action taken in the case.
(Mukesh Chaturvedi)
Director (E)
Demonetisation Is A Blessing For CG Employees. Know How?
According to the BofA Merrill Lynch report, Pradhan Mantri Garib Kalyan Yojana, 2016 will bring huge amount in government’s pocket to offset the financial implication of implementing the 7th Pay Commission recommendations. The Pradhan Mantri Garib Kalyan Yojana was announced after demonetisation for declaring unaccounted income.
“The Government announced that the second income disclosure scheme (IDS II) will run till March 31. We continue to estimate that it will net the fisc about Rs1000bn/0.7% of GDP of additional taxes. This should allow Finance Minister Jaitley to hold the FY18 fiscal deficit at 3.5% of GDP – same as FY17’s – and at the same time fund the 7th Pay Commission and recapitalize PSU banks, without cutting back on public capex,” BofA Merrill Lynch said in a note. Earlier, the RBI had made clear that the implementation of the 7th Pay Commission recommendations for central government employees won’t have an inflationary impact.
Earlier we reported that the central government employees will have to wait til March, 2017 to get their higher allowances under the 7th Pay Commission recommendations. Centre is planning to pay higher allowances without arrears. Sources in the Finance Ministry also said the Centre is considering to hike higher allowances for its employees. However there is no report about when the government will start paying higher allowances as recommended by the 7th Central Pay Commission.
The issue of higher allowances has been referred to the ‘Committee on Allowances’. The committee is yet to submit its report. Until acceptance of higher allowances, under 7th Pay Commission, the allowances are now paid according to the 6th Pay Commission recommendations.
Narendra Modi govt makes cashless salary mandatory, amends 80-year-old law
In a further push to cashless economy, the Central cabinet has approved the ordinance for paying wages via electronic means - which means that the government has given its nod for cashless salary. Accordingly, the government approved to amend Section 6 of the Payment Of Wages Act. The new ordinance will be applicable to public sector, with the private sector coming under the purview of the new move later, CNN News 18 reported.
"The Union Cabinet today approved the ordinance route to amend the Payment of Wages Act, 1936, to allow employers of certain industries to make payment through the electronic mode and cheques," a source said. Employers will also have the option to pay wages in cash, the source added.
As per practice, the government introduces ordinance to amend laws for immediate implementation of new rules. An ordinance is valid for six months only. The government is required to get it passed in Parliament within that period.
According to CNN-News18, companies can pay their employees only through cheque or through electronic means. All wage workers, who earn less than Rs 18,000 will be come under the new ordinance. However, the specific sectors where the rule will be applicable will be notified later.
The state government will additionally have the discretion whether to pay employees via cheques or electronic transfer. According to reports, the government aims to check under-reporting of salaries, bring transparency in transactions and end exploitation of wage workers.
However, the Opposition lashed out at the government for the ordinance. "Nothing can distract people from the fact that Prime Minister Narendra Modi and his government have failed. Government should trust people and they cannot move without proper infrastructure", the Congress party said.
"It will create a problem for the employees as withdrawal from the banks is difficult. Cashless society is not possible. We will move amendment in the Parliament," Gurudas Dasgupta, CPM leader told CNN-News 18.
Wages, as opposed to salaries, have traditionally tended to be cash payments. The Payment of Wages Act covers employees whose wage does not exceed Rs 18,000 per month. The new procedure will serve the objective of "digital and less-cash economy", the Bill stated. Introduced by Bandaru Dattatreya in the Winter Session of Parliament, the passage of the Bill was disrupted as the government and opposition clashed over demonetisation.
It will also allow state governments to specify industrial or other establishments that adopt cashless modes for salary payments. The new procedure will serve the objective of "digital and less cash economy", the bill states. Andhra Pradesh, Uttarakhand, Punjab, Kerala and Haryana have already made provisions for payment of wages through cheque and electronic transfers after making state-level amendments to the Act.
The original Act had come into force on 23 April 1936, providing for payment of wages in coin or currency notes, or in both. At present, with the written authorisation of an employee, wages can be given through cheque or transferred to his or her bank account.
With inputs from agencies
Sourse : firstpost.com
India Post Payments Bank (IPPB) - FAQ
FREQUENTLY ASKED QUESTION ON IPPB
Concept of Payments Bank
1. What is a Payments Bank?
A Payments Bank is a “differentiated bank” set-up under the guidelines issued on Nov 27, 2014 by the Reserve Bank of India (RBI) to further financial inclusion for the underserved population by providing (i) current and savings accounts and (ii) payments or remittance services to migrant labour workforce, low income households, small businesses, unorganised sector entities and other users. This is to be done by enabling high volume-low value transactions in deposits and payments or remittance services in a secure technology-driven environment.
Please click on this link for further details:
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=32615 (RBI Guidelines)
2. Why is a Payments Bank required?
A vast majority of the rural population (over 60%, as per RBI), is still unbanked or underbanked. An easily accessible payments network and universal access to savings is fundamental to financial inclusion. At the same time, several non-banking entities such as the Department of Posts (DoP), prepaid payment instrument companies, business correspondent companies, etc., have had reasonable success in facilitating payments and other select financial services in urban areas. Their customers, however, face several limitations and difficulties arising out of their nonbanking status. Of particular note amongst these is the DoP which has a wide network and experience of handling financial transactions, but does not have a banking license. Given their potential to further the cause of financial inclusion, the RBI granted such entities a differentiated banking license, i.e. a payments bank license, which enables these entities to provide banking services other than credit. Credit and insurance are as integral to financial inclusion as are other banking services, and payments bank can offer these products as well but only in partnership with other banks/ insurers and on a non-risk sharing basis.
3. What is the scope and activities of the Payments Bank?
As per the RBI Guidelines, the payments bank will be set up as a differentiated bank and shall be permitted to set up its own outlets such as branches, Automated Teller Machines (ATMs), Business Correspondents (BCs), etc. to undertake only certain restricted activities permitted to banks under the Banking Regulation Act, 1949, as given below:
- Acceptance of demand deposits, i.e., current deposits, and savings bank deposits from individuals, small businesses and other entities, as permitted. The payments bank will be restricted to holding a maximum balance of Rs. 1,00,000 per individual customer.
- Issuance of ATM / Debit Cards. Payments banks, however, cannot issue credit cards.
- Payments and remittance services through various channels including branches, Automated Teller Machines (ATMs), Business Correspondents (BCs) and mobile banking.
- Issuance of PPIs as per instructions issued from time to time under the PSS Act.
- Internet and mobile banking - The payments bank is expected to leverage technology to offer low cost banking solutions.
- Functioning as Business Correspondent (BC) of another bank – a payments bank may choose to become a BC of another bank, subject to the RBI guidelines on BCs.
- As a channel, the payments bank can accept remittances to be sent to or receive remittances from multiple banks under a payment mechanism approved by RBI, such as RTGS / NEFT / IMPS.
- Payments banks will be permitted to handle cross border remittance transactions in the nature of personal payments or remittances on the current account.
- Payments banks can undertake other non-risk sharing simple financial services activities, not requiring any commitment of their own funds, such as distribution of mutual fund units, insurance products, pension
- products, etc. with the prior approval of the RBI and after complying with the requirements of the sectoral regulator for such products.
The payments bank may undertake utility bill payments etc. on behalf of its customers and general public.
Please click on this link for further details: https://rbi.org.in/scripts/bs_viewcontent.aspx?Id=2900 (RBI Guidelines)
4. Are there any restrictions on payments banks as compared to other commercial banks?
Given that their primary role is to provide payments and remittance services and demand deposit products to small businesses and low-income households, payments bank will initially be restricted to holding a maximum balance of Rs. 1,00,000 per individual customer.
Payments banks cannot issue credit cards and cannot grant loan/ credit out of their own books of accounts.
Apart from amounts maintained as Cash reserve ratio (CRR) with RBI, Payments Bank will be required to invest minimum 75 percent of its demand deposit balances in Government securities/treasury bills with maturity up to one year and hold maximum 25 percent in current and fixed deposits with other scheduled commercial banks for operational purposes and liquidity management.
The payments bank cannot set up subsidiaries to undertake non-banking financial services activities. The other financial and non-financial services activities of the promoters, if any, should be kept distinctly ring-fenced and not comingled with the banking and financial services business of the payments bank.
The payments bank will be required to use the words “Payments Bank” in its name in order to differentiate it from other banks.
5. Has this model of Post office setting up a bank worked anywhere else in the world?
Postal operators are the leading financial services providers in over 75% of the countries around the world. Some of the Post Banks in the world have been highly successful, i.e. Japan, New Zealand, Switzerland, France, China, South Korea, South Africa, Morocco to name a few.
Department of Post
6. Why is DoP setting-up a payments bank?
DoP has been successfully running the Post Office Savings Bank for the Ministry of Finance. Setting up its independently owned bank is the next logical progression. Based on feasibility studies and a subsequent Detailed Project Report, the Department, in 2013, made an application to the RBI and a proposal to the Public Investment Board (PIB) to set up a universal bank. However, the Department was advised by the PIB to set up a “differentiated bank” under the relevant guidelines. Accordingly when the RBI came up with the guidelines for licensing of Payments Banks in November 2014, the Department of Posts made an application for the same and got the in-principle approval in September 2015 for setting up its payments bank.
The setting up of the payments bank is therefore necessary in view of current market realities and to ensure continued relevance of DoP’s products and services. Among other things, the decision to set up the payments banks comes in the wake of changes in the banking and payments landscape in the country. The payments bank will ensure that the banking and payments services offered through the postal network are well integrated and completely interoperable with the rest of the banking and payments ecosystem and will leverage new age technology in line with key technological advances in the banking sector such as unified payments interface (UPI).
7. What is the GOI’s outlook on DoP’s foray into banking?
In the Union Budget of 2015-16, the Honourable Finance Minister made the following announcement:
“The Government is committed to increasing access of the people to the formal financial system. In this context, Government proposes to utilize the vast Postal network with nearly 1, 54,000 points of presence spread across the villages of the country. I hope that the Postal Department will make its proposed Payments Bank venture successful so that it contributes further to the Pradhan Mantri Jan Dhan Yojana.”
In his Independence Day speech at the Red Fort, on 15th August 2016, the Hon’ble Prime Minister Shri Narendra Modi spoke about IPPB:
“The Post Office is an example of our identity. We have revived and rejuvenated our post offices. IT is now linked with the poor and small persons. If any government representative gets the affection of a common man in India, it is the postman. Everyone loves the postman and the postman also loves everybody, but we never paid attention towards them. We have taken a step to convert our post offices into payments banks. Starting with this, the payments bank will spread the chain of banks in the villages across the country in one go”
8. How will setting up the payments bank benefit DoP?
The payments bank will not only drive revenues for DoP but also help in maintaining DoP’s brand image and relevance in the current financial landscape that is evolving rapidly. For e.g. Utility bill payments services of the IPPB as a Bharat Bill Payment Operating Unit (BBPOU) will help DoP in increasing its market share in the utility bill payments space and provide technology driven services to customers. New age technology will enhance customer experience, provide more options and help in serving the larger cause and vision of the GOI i.e. to bring about financial inclusion for the vast unbanked and underserved population.
9. What will be the role and relationship of DoP with the proposed payments bank?
The payments bank will be 100% owned by the Government of India via DoP, and will have an independent board of directors with representation from DoP and other stakeholders from within the Government of India to ensure strategic alignment with the overall objectives of the DoP and the Government of India.
The post offices at different levels will be the main customer touch points for the bank’s services. A close liaison between the bank and DoP staff at the access points will be maintained on a regular basis at the branch level for success of the delivery model .
India Post Payment Bank (IPPB)
11. How many branches are likely to be opened?
IPPB is slated to have 650 branches at district headquarters. All post offices across the country will function as customer access points for IPPB.
12. What will be the USP for IPPB?
The latest payments and banking technology, easy to use interface, the trusted network of the post office and its dedicated staff with a local connect will be the USP of the IPPB. IPPB will bring in innovative services and interface for its target customer segments in all areas. The accessibility and ease of use of services through a combination of modern technology and the widespread DoP physical network, capable of providing door step services will make it a unique payments bank. Through a combination of physical and digital channels, payments bank will build the most accessible bank in the country especially in rural and underserved areas of the country.
13. How will IPPB employees be recruited? What are the various mechanisms through which they get selected?
Various options regarding the recruitment and selection of IPPB employees have been considered. These include deputation from DoP or other public sector banks, direct recruitment through IBPS, contractual arrangements for certain skilled staff positions etc.
DoP’s role in IPPB
14. How will IPPB function?
IPPB has been set up as a Public Limited Company under the Department of Posts with an independent Board of Directors. It will be headed by a Managing Director and CEO, and will set up a corporate head quarter and approx. 650 branches to manage its functions on a day to day basis. IPPB will leverage the physical and IT infrastructure of the Post office and be set up on a lean operating model. It will focus on low-cost, low-risk, technology led solutions to extend access to formal banking.
Products and Services
15. How will the products and services of IPPB be different from DoP’s payment and remittance products?
DoP payments and remittances products are based on the basic money order services adapted for the digital age. While IPPB will provide the same benefits of payments and remittances to the customers, by adopting newer, efficient processes and technologies such as mobile based payments, digital wallets and innovative payment and remittance products that are continuously emerging in the market today. Combined with doorstep banking transactions and easy to use mobile and internet banking options IPPB will significantly improve accessibility of its services. Additionally, IPPB products will be well integrated and inter-operable with the rest of the banking industry.
IPPB will drive the benefits of financial inclusion by bringing a host of financial products to suit the needs of different strata of society with special focus on the marginalized sections and citizens in rural areas.
Product innovation will be a continuous exercise to expand the bouquet of services adapting to the evolving needs of its customers technologies and the rapid advancements in communication and payments
16. Will there be an impact on POSB?
Apart from savings account with up to INR 1,00,000 in deposit, the products offered by IPPB are different from POSB products. POSB savings accounts do not have any ceiling limit unlike payments bank savings account. On the other hand payments banks can offer current accounts for use by businesses and institutions whereas POSB does not offer these accounts. Other kinds of deposits under POSB are unique to it and will not be on offered by the payments bank. POSB accounts are mainly savings instruments.
Simply put while POSB is more focussed on returns from small savings, IPPB will be focussed on transactions. Thus there will be an inherent synergy between the two and each will complement the other.
17. How will IPPB improve disbursement of subsidies?
IPPB is being set up by the GoI with a primary focus of improving the Direct Benefit Transfer of various subsidies. IPPB will be providing a robust technology platform for DBT disbursements and build a strong reporting mechanism. By channelling a majority of subsidy disbursements through its combined network, DoP-IPPB combine will significantly increase its current market share.
Customers
18. Who will be the target customer of IPPB?
Apart from the existing customers of the DoP, IPPB will focus on the underbanked and unbanked population in different parts of the country. It will also try to target services for MSMEs, senior citizens, students, migrant population, low income households, unorganized sector and other groups with special service requirements.
19. How will the customer choose between the savings account of POSB and IPPB?
Both POSB and IPPB will have different branding and the product features will be quite different. At time of signing up, customers will be clearly told what the product features are and customers will be able to choose the product of their choice.
Given the difference in purpose of the two accounts, the POSB customers can be encouraged to open an IPPB account for managing their fund flow including bill payments, remittances to other family members, businesses etc. depending on their needs. Customers focusing on savings may prefer to have their deposits with POSB and transact through their IPPB account as per requirements.
Customers will be given the option to channel money from their IPPB accounts to any of the POSB schemes. For example, an IPPB customer will be able to use money in his account to open and service a RD/ TD/ SSY or any other POSB account. Thus both IPPB and POSB can synergistically serve the customers.
Overall
20. I would like to know more and contribute to the IPPB journey. How can I do that?
You can send your questions and suggestions to pbi-project(at)gov.in or call us at +91 11 23096008 and check for regular updates on https://www.facebook.com/ippbonline/ and http://utilities.cept.gov.in/dop.
Courtesy: IPPB
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