India Post Payment Bank (IPPB)

India Post Payment Bank (IPPB) – FAQ

India Post

Payments Bank

India Post Payment Bank (IPPB)- FAQ

Payment Bank, Misc. FAQs

Sr. No.	Questions	Answers
1	What is the concept of payments bank?	A Payment 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, unorganized 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. A Payments bank is not allowed to lend or take any form of credit exposure on its books. The intent is to create a differentiated bank whose focus is to drive electronic payments in the country.
2.	How will IPPB impact DoP’s business?	India Post will benefit in multiple ways. 1) POSB customers will gain access to the larger banking ecosystem through IPPB. They will be able to use funds in their PSB accounts to pay bills, EMI, Premiums, invest in mutual funds, remit money instantly using the interoperable platform made available by the linked IPPB account. 2) DoP will also be able to contribute to the GoI’s Digital India initiative. The capability of making and accepting digital payments across online, physical counters, customer’s doorstep, internet, mobile, IVR, kiosks etc. facilitated by IPPB will enable DoP to break into hitherto untapped business lines such as online e-Commerce, retail in store payments, mass transit, online bill payments, etc., apart from reclaiming market share in remittances and subsidy payments. 3) The most important benefit to DoP would be a return to relevance in the customer’s life with modern day methods of payments and banking.
3.	What is the USP of IPPB?	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 is the USP or 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 make it a unique payment bank. IPPB will bring in innovative services and interface for it target customer segments in all areas. 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.
4	Will IPPB be governed by the Banking Regulations Act?	Yes
5	What is the idea behind the payments bank? Why are we starting such a bank?	A vast majority of the rural population, 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 DoP which has a wide network and experience of handling financial transactions, but does not have a banking license. Given the potential of these non banking entities 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.
6	Will the operations of IPPB be similar to that of POSB? If yes, why are we creating a payments bank?	IPPB is a RBI regulated entity and hence connected with the rest of the banking ecosystem which enables IPPB customers to move funds across different banks which POSB cannot offer. Further, POSB currently has paper based processes for account opening and servicing whereas IPPB will be more technology driven, with a focus on digital payment transactions – i.e. remittances, bill payments etc. which is not a focus for POSB.
7	What is the difference between a bank and IPPB?	Unlike traditional / scheduled commercial bank or ‘Universal’ banks a Payments Bank can not provide credit products e.g. Loans, credit cards to its customers. IPPB is mandated to focus on basic banking through current accounts & savings account, providing payments and remittance services to small businesses and low-income households initially be restricted to holding a maximum balance of Rs. 1,00,000 per individual customer. However, it can form partnerships with other banks and financial institutions such as mutual funds and insurance companies to provide third party financial services such as loans, mutual funds and insurance.
8	IPPB will be governed by RBI guidelines, but POSB is governed by Ministry of Finance, how will this arrangement work?	Both IPPB and POSB will act in accordance with their respective regulations and guidelines. All interoperability features will be implemented by necessary approvals from RBI (already approved) and Ministry of Finance.
9	Why has RBI capped the account limit to INR 1 lakh?	RBI has opened up banking licenses to a number of companies which weren’t really involved in banking per se. It foresees operational risks in this business and hence wants to mitigate it by capping the end of day balances. However, RBI has said that it’ll reassess this limit after watching the performance of the payments banks
10	Who will be the owner of the bank?	IPPB will be 100% owned by the Government of India (through DoP). It will have an independent board of directors with representation from DoP and other stakeholders from within the Government of India. It will be the first Public Sector Enterprise under the DoP
11	Is IPPB our first step towards privatization?	No, IPPB has been set up as a Public Limited Company under the Department of Posts with an independent Board of Directors.
12	What has been the international experience in payments bank?	Payment bank’ as such is a niche concept. However, globally there are multiple success stories of postal banks in various countries in Europe, Asia etc.
13	What is the aim for IPPB, is it to service the masses or make profit?	IPPB’s aim is to serve the financially underserved and create digital payments ecosystem in line with Govt.’s vision. However, it is funded by taxpayer’s money, hence, it’ll definitely also aim to be self-sustaining.
14	Why is IPPB a separate identity?	This is as per the requirements of the payments bank guidelines of the RBI. DoP is a Govt. department and does not come under the regulation of RBI. For IPPB to be regulated by RBI, it had to be set up as a separate legal entity as per the guidelines for Payments Bank
15	Will IPPB have overdraft facility?	No, overdraft is not allowed as per RBI guidelines for Payments bank
16	Which are the other Payments bank launched in our country?	Airtel, Paytm, Fino and Adity Birla have launched their Payments Banks till Feb 2018

Strategy
S.No.	Questions	Answers
1	What will be our revenue model? How will we be earning more with IPPB and how will the earning of IPPB be shared with DoP?	There are multiple methods of revenue generation including investments, transaction charges, commissions from third party providers, from the govt, charges for channels such as doorstep banking among others. IPPB will have flexibility in launching new financial products (on its own or through partnerships/alliances) to drive more revenue per customer. IPPB will follow a low cost model and leverage DoP’s infrastructure and operational processes. IPPB will share its revenues with DoP in the form of commission and incentives.
2	Have we communicated the revenue projections to the stakeholders (Government)? What was their feedback on it?	The revenue projections as well as the funding requirement have been shared with the relevant stakeholders in the Government, and has received their approval.
3	How will the targets be finalized and allocated?	The allocation of the targets to the circles will be done by the postal department
4	Why wasn’t POSB converted to IPPB, when we are already on CBS?	IPPB is a payments bank and regulations do not allow IPPB to have end of day balances above 1 lakh. Also as a Payments Bank it cannot offer other savings products such as RD, TD, PPF, SSY, MIS, KVP/NSC, etc. hence POSB will continue to have these and many other investment products. IPPB will primarily focus on enabling inter-operable digital payments transactions and provision of third party financial services. Thus IPPB and POSB complement each other and will mutually benefit each other.
5	What will happen to POSB after IPPB is implemented fully?	POSB and IPPB products are complementary and both will co-exist. POSB is more focused 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. The Banking Regulator, RBI has also permitted continuation of POSB along with IPPB.
6	What will be the effect of IPPB products on the existing PoSB products?	Given the difference in purpose of the two accounts, the POSB customers shall 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 requirements. Customers will be given the option to chanel money form 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 (will be made available soon after launch). Thus both IPPB and POSB can synergistically serve the customers.
7	All the IMPS, NEFT should have ideally come to POSB account (bachat khata), when CBS was introduced, but it did not happen. Why can’t we move NEFT, RTGS, IMPS kind of transaction mechanisms to DoP instead of IPPB?	As POSB is not a RBI regulated entity, it cannot be connected to NEFT/IMPS/RTGS/UPI etc. i.e. the central payments system that needs to be routed through an RBI regulated entity. IPPB is being set up by DoP exactly to meet this criteria so that all the NEFT/RTGS/ other transaction mechanisms etc. will be routed through the IPPB account of the customer
8	Since inter-operability is the USP of IPPB, how does IPPB plan to resolve the linking and transferring to any other bank account apart from POSB?	IPPB accounts of customers will be linked only to their POSB accounts for sweep-out of excess funds (beyond Rs 100,000). The linking to POSB is an in-house decision to prevent the operations and services of DoP from getting hampered. This is also aligned with the positioning of IPPB as a “Kharche ka Khaata” and POSB as “Bjachat ka Khaata” The customer will be able to transfer funds to/from any other bank account of her choice (as a remittance transaction e.g.. NEFT/IMPS/UPI) thus not restricting their usage of IPPB accounts.
9	Will the counter staff/ agent suggest the account type to a new customers?	Yes, Counter staff and agents will be trained to adequately educate customers and advise them on the types of accounts available to them. They will also be provided with scripts which will highlight the main features/uses/benefits of the account (such as remittances, bill payments, door step services etc.) based on the customer segment they interact with (i.e. elderly, migrant worker, student etc.)
10	Will customers not get confused between POSB and IPPB products?	Both POSB and IPPB will have different branding and the product features will be quite different. POSB will be positioned as a ‘savings’ instrument that enables customers to make more returns by investment in other high-interest rate POSB schemes such as fixed deposit, recurring deposits etc., whereas IPPB account will enable everyday ‘payments’ of the customer such as bill payments, remittances to family members, payment at merchant locations etc. Customers focusing on savings may prefer to have their deposits with POSB and transact through their IPPB account as per their payment/ transaction requirements. Thus both IPPB and POSB can create synergies to serve the customers. 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.
11	Currently, the IPPB accounts are being opened for individuals with no provision for joint accounts. This will create technical glitches in linking with the POSB accounts?	As of now only individual accounts are being opened in IPPB and hence only individual POSB accounts can be linked. In case of joint accounts, POSB customers should be encouraged to open separate individual POSB accounts which can be linked to the IPPB accounts. In the system, appropriate validations will be done to only link individual IPPB accounts with individual POSB accounts and no technical glitches will occur.
12	How do you do sweep in sweep out from current account?	Approval of MoF has been requested
13	Merchants and Villagers are not comfortable with digital payments then how will IPPB cater to this resistance?	IPPB with the help of DoP staff will conduct customer & merchant awareness and education driver. The focus of these campaigns will be to communicate the benefits of digital transactions. IPB is introducing a number of industry leading innovations that will make adoption of digital transaction easier and more acceptable. Benefits of digital transactions will be explained through practical demonstration and sustained marketing with the support of DoP last mile to catalyse this mind-set change inline with the national agenda of working towards a digital India.
14	The cash-on-delivery construct is hampering DoP even though the department is capable in performing the physical deliveries. What is the resolution for the same?	The industry for e-commerce is growing at a rate of 50-60% CAGR, but has a major pain point in the form of cash-on delivery that is preferred by a majority of customers (>60%). IPPB and DoP together will convert this in to an opportunity. IPPB is setting up a platform that will enable the smartphone equipped postman and GDS to accept electronic payments at the time of delivery. This solution will be a win-win for all stakeholders – for the postman it reduces the effort in cash collection/counting/reconciliation etc., for DoP it brings down accounting hassles and cost of operations, for eCommerce merchants it reduces the cost of cash collection offers faster reconciliation and increased business, for customers they still get to pay only at the time of delivery etc.
15	How to educate masses for digital literacy? How there should be a behavioural change?	IPPB as a bank will focus on educating its customers to use more digital payments methods, thus helping reduce cash handled by access points in the long run. Easy to use solutions would be deployed to help masses adopt digital payments. Further, repeated messaging and reinforcement by GDS and postmen will help drive the behavioural change in the masses.
16	How similar/different from the RICT roll out and its objectives will IPPB be?	RICT devices are a bit bulky and will be used in Branch post offices (BOs). In case of doorstep banking, delivery agents (GDS and postman) will be equipped with a smartphone and other auxiliary devices to enable them to carry out banking services conveniently at the customer’s doorsteps. Further, IPPB will also develop an app for RICT device, which will allow the RICT device to also be used for IPPB’s services for customers who walk-in at a BO.
17	Will RICT implementation stop due to the implementation of IPPB?	No, RICT implementation is very critical for both IPPB and DoP. RICT implementation will continue for providing POSB services on the device in BO.
18	Our previous efforts failed due to lack of coordination between different departments. Here also multiple stakeholders are getting involved. How will we ensure proper coordination will be there?	Coordination will be a challenge and appropriate governance mechanism is being put in place at multiple levels – at Directorate, Circles and Division/Sub-division levels. Further, the IPPB structure has been aligned to the existing DoP administration structure to facilitate better coordination . The Secretary is also the Chairman of IPPB and thus is the apex stakeholder for both DoP and IPPB, which will help drive necessary coordination.
19	How to win customers of other banks?	IPPB will be leveraging the infrastructure of DoP which will help IPPB have a wider reach as compared to all other banks and hence have more accessibility than other banks. Doorstep and assisted banking will act as a USP for IPPB. The RICT devices will act as the widest deployment of physical acceptance infrastructure in rural areas. These factors will help IPPB win customers of other banks, especially in rural areas
20	Are incentives based on the revenue earned by IPPB or profits earned by IPPB?	Incentives would be paid on revenue earned by IPPB and not on the profits earned by IPPB
21	Does IPPB have a strategy to incentivize the counter staff at IPPB exclusive counters?	Yes, For every revenue generating transaction, IPPB will share commissions not just with the GDS/postmen/counter staff who did the transaction, but also with his/her supervisors. The recommendations of the incentive committee set up by the Postal Dte will be considered by the competent authority
22	Incentive for Customer self-service is not a good idea. In insurance, it is good because the agent keeps the customer paying the premium. With GDS not doing anything in case of self-service why he should be incentivized? Incentive should be given to customer instead of Agent.	The purpose of providing incentives to agents for self-service channel is to ensure that agents who initially on boarded the customer and handhold them to learn to make transactions on their own are rewarded and do not consider the customers move to self care as undesirable. The population that needs handholding is large and this way the agents can be motivated to continue to assist new customers while encouraging the older customers to keep their accounts active
23	Is the government permitting transaction charges on DBI disbursement?	DBT disbursement from a bank account will be seen as a cash withdrawal transaction and will be given the same treatment in terms of charges. There are DoE guidelines on cash payment for DBT
24	Is there any alternate approach being considered for states like Assam and Jammu & Kashmir where Aadhaar is currently not issued?	Yes, in these States as well as other States where people do not have Aadhaar or are yet to receitve Aadhar card, IPPB will offer accounts basis other valid forms of identification (KYC). These accounts, however, can be opened and operated only through the 650 branches and not through every post office. However, with the opening of the Aadhar enrollment centres in POs, both aadhar enrollment and opening of IPPB accounts can be done in a concerted drive.
25	Is there any alternate approach being considered for terrorist and LWE affected areas?	The topic is currently under discussion and the operating strategy is being devised for the same. For high-risk areas, greater operational controls in terms of limits on cash transactions will be implemented and greater efforts towards an early shift towards digital transactions will be pursued
26	Are the prospects for using bio-metric based transactions far-fetched?	With government’s emphasis on digitization and usage of Aadhaar, the penetration and adoption is increasing rapidly. Usage of biometrics as a mode of customer authentication is also gaining acceptance and thus usage of bio-metrics will very soon become the norm rather than an exception
27	Since availability of cash in easy, how can we make the shift to cashless?	Along with acquiring customers, IPPB will also acquire merchants and thus develop local digital cashless ecosystems. With the creation of such local digital cashless ecosystems, IPPB customer will be able to spend digitally, and over a period of time the usage of cash would reduce.
28	IPPB will not only compete with other payments bank but also with other organizations in the payments and delivery ecosystem. Have we considered the possibility?	Yes. Competition has been taken into consideration. However, with the unparalleled reach of DoP, the trust associated with it, and IPPB’s differentiators, it will have a unique value proposition for its customers.

Physical Infrastructure FAQs

S.No.	Questions	Answers
1	Will we have branches in all HOs?	IPPB will have most of its 650 branches at HO locations. However there are some branches that are located in SOs as well. This is primarily in those districts where there is no HO in the district
2	Will DoP maintain IPPB back office?	The infrastructure for IPPB back office will be provided by DoP and all major repair works will be done by DoP however, day to day upkeep will be done by IPPB.
3	What is the branch roll out plan?	650 IPPB branches and ~3000 points will be operationalized at launch. The rest of the access points (all ~150,000) will be enabled subsequently throughout the year.
4	What is the difference between common counter and dedicated counter?	Post office staff (PA) at common/shared counters will serve both IPPB and DoP customers whereas Pas at dedicated counters will only serve IPPB customers. Dedicated counters are currently being set up at larger post offices (HOs)
5	Is there a difference in the branching design for common counter?	Yes, they will have slightly different branding to differentiate these from counters that will only serve DoP customers
6	Is there a requirement for separate generators and UPS to be provided for IPPB branches along with other electrical equipment requirements?	IPPB will provide equipment for its branches
7	If the procurement of branding material is decentralized then how will the differences in materials be resolved?	Detailed BOQ has been shared with the circles and they need to work accordingly. The funds have also been allocated and the executable files for artwork are being shared. The circles have the option of opting for procurement centrally and transporting the same to the branches/access points. IPPB branch staff shall be there to assist and ensure the branding conformity to bank’s norms
8	Will we be getting additional funding for the IPPB branch installation? What will be the method?	IPPB has already provided funds for Furniture and branding at IPPB’s
9	Will the dedicated counters mentioned at branch tracker will be at HO/SO area or at IPPB branches too?	Branches with counters inside the branch premises have dedicated counters. They may have 2-4 counters but not all may be manned on Day 1. All such counters are dedicated. There are only about 40 odd branches with counters inside the premises. For all the other 600+ branches, the counters are inside the main post office area for better customer visibility and higher footfalls. The counters in HO/SO can be either dedicated for IPPB or common in which DoP functions will also take place. They will be differentiated by branding. All counters are manned by PO staff.

Products & Service FAQs

S.No.	Questions	Answers
1	What will be the IPPB products and services?	IPPB will offer savings accounts, current accounts, bill payments, remittances, DBT, merchant payments, third party products, payment for POSB products among others. IPPB has also defined a product roadmap to further incorporate other products such as mass transit payments, financial planning, coupons and loyalty subsequently post launch.
2	How you are going to place yourself in product differentiation?	Our biggest differentiator is offering assisted formal financial services at the customer’s door-step and ease of doing such transactions simply by using their Aadhaar and biometric, Aadhaar and OTP, QR and biometric/OTP, assisted UPI, etc.
3	What are third party products?	Third party products are those products which IPPB is not allowed to offer directly but can distribute the same to its customers by entering into a partnership with third party providers. Example of such products are loans, insurance, mutual funds, etc. This is as per regulatory guidelines applicable to payments banks
4	Will POSB and IPPB products get merged?	The savings account of POSB and IPPB will co-exist. IPPB’s platform will facilitate the linking of PO SA with IPPB CA/SA. IPPB will enable interoperability and also enable digital payments for POSB products such as RD, TD, PLI, etc. However, the two platforms (i.e. IPPB and POSB) will continue to co-exist.
5	Will customers have two accounts instead of one? What will happen to POSB accounts? Will all POSB accounts shift to IPPB?	Customer’s POSB accounts will continue as is and a linked IPPB account will be opened for eligible account holders (POSB account holders with Aadhaar and mobile number seeded) after taking their consent and performing eKYC. Further, a POSB account will serve as the sweep out destination for all IPPB accounts (given the limit of 1 lac in IPPB accounts)
6	Why would anyone open a IPPB Savings account?	The unique feature of IPPB is the convenience through Doorstep banking. IPPB will also offer access to interoperable services for existing POSB customers, digital and instant payments transactions enabled across multiple channels for a variety of requirements including remittances, bill payments, EMI/premiums, MF payments etc., Further, seamless access to DoP products and services for new customers are all value additions.
7	Will the 1 lakh account limit create a problem?	Every IPPB account will have a linked POSB account for the purpose of parking funds in excess of 1 lakh (or a threshold defined by the customer). These will be transferred automatically at the end of day and customer’s consent for this will be obtained right at the time of account opening.
8	Has there been any analysis done as to how many POSB customers cross the maximum threshold of Rs. 1,00,000?	There are approximately 19,00,000 POSB accounts with a balance of more than Rs. 1,00,000/- which is approximately 1% of the total accounts present in POSB.
9	If anyone does not want to link with POSB, then?	A customer may choose not to link his/her IPPB account with the POSB account. In that case, the balance in the IPPB account will be capped at 1 lakh (to comply with RBI guidelines for end of day balances for payments bank)
10	Will IPPB issue debit cards and have ATMs	At launch, IPPB may not issue physical/virtual debit cards. It will offer QR cards to its customers which can be used to carry out any kind of transaction at all channels of IPPB. IPPB will not roll-out additional ATMs of its own at launch. However, IPPB and DoP will issue co-branded debit cards for the POSB accounts.
11	Will the customer lose money if QR card is lost?	No, the QR card cannot be used witout the customers’ biometric/OTP authentication.
12	Can we make the QR card usable as both for QR and Debit card? (I want to draw money in urban areas where there are ATMs. Should I have to go to post office to draw money in cities? Is the same card used to receive money?)	A QR card cannot be used at ATMs. Customer may go to the post office or request a postman/GDS to come to his/her doorstep for withdrawing money. Further, the QR card will be multi-puropse and the same QR card can be used to make payments at IPPB acquired merchants such as DoP post office counters for purchasing other DoP products and also collect payments for goods and services rendered. IPPB will also acquire merchants such as kirana stores etc. These QR cards could be used there as well to make payments.
13	Will we be providing bill payments and loan facilities to consumers?	Yes, IPPB will offer Bill Payments service to its customers and will provide loan products in partnership with third party providers
14	The rate of interest is diff for POSB and IPPB. How will you tackle the difference of interest rates in these two accounts. Today the payments bank interest is more than POSB?	The IPPB interest rate will ne a business call taken by IPPB from time to time
15	Is there a tagline for IPPB?	Yes. It is ‘Aapka Bank Aapke Dwar’
16	Will local marketing need to be done for branding activities?	Local marketing before and after launch will be part of the brand building exercise
17	How will we ensure we are choosing the right (dependable) third party partners?	IPPB will follow a stringent process for shortlisting/selecting third party partners. The evaluation will be based on multiple parameters like financial soundness, presence in rural areas, customer feedback, etc.
18	Can we formulate RD for less than 5 years tenure, because till now only 5 years RD is available in India Post.	IPPB product portfolio does not have a RD product. DoP has no control over the POSB product features which are decided by the Ministry of Finance. Therefore, this is not in the prurview of either DoP or IPPB
19	Is there a way to undertake some proof of concept for salary payments through IPPB?	There are various proof of concepts being planned at different circles, regions and divisions. All IPPB and DoP staff are encouraged to identify opportunities where ‘cash’ transactions can be concerted into digital. Salary payments of DoP staff and GDS is being considered as a starting point. Other Govt depts., MSMEs, private concerns, contractros paying wages to labourers will also be included.
20	Will mobile and Internet Banking both be available at the time launch?	Internet banking will not be a day one products as most of the target clientele would not have access to Internet. IPPB is prioritizing mobile banking and assisted banking through post office counters and doorstep channels. Net banking will come a few months down the line.
21	Will Mobile and Internet Banking both be available at the time launch?	IPPB is a digital and near paperless bank. For retail/individual customers no chequebooks will be issued. Cheque books, passbooks are relics of a physical branch banking era and will be soon phased out for retail customers even by universal banks. A depositor has to travel to and tender a cheque at a bank or deposit it at a collection centre and wait for a few days to get it cleared. IPPB is going to focus on immediate digital transactions through all channels including at doorstep. As forward looking bank trying to bring in a behavioral shift, IPPB will actively attempt to wean customers away from paper based banking collaterals. Chequebooks will only be issued only for Current Account customer and only on request
22	Why is IPPB not issuing passbooks and receipts? Considering the target rural customer base, their preference will be for physical passbook and receipts for every transaction	Passbooks and Printed receipts are not mandated by RBI. Further, customers today are increasingly comfortable of not having physical receipts for transactions. A good case in point is mobile prepaid, where customers do not get a printed receipt on recharging but are comfortable with an SMS. Similarly increasing number of ATM customers are declining printed receipts and mobile/DTH consumers are saying no to printed statements. IPPB too will be sending a SMS on the registered mobile number for every transaction and will periodically sharing the Account statements.

Operations FAQs
S.No.	Questions	Answers
1	What will be the account opening process?	All new accounts will be opened through e-KYC leveraging Aadhaar biometric database. The detailed process will be shared as part of the training program
2	How will POSB-IPPB account flows work?	Sweep out from IPPB account to POSB account: 1.These will occur at end of day, if the balance if the balance in IPPB account is higher than the maximum threshold (say Rs 100, 000). The additional amount will be swept out from the IPPB account to the POSB account Sweep in from POSB account to IPPB account: 1.During a debit/withdrawal transaction, if the transaction value is higher than the balance available in the IPPB account IPPB system will check if the than the balance available in the IPPB account, IPPB system will check if the linked POSB account has the required differential amount. After taking required customer consent (depending upon the channel) the amount will be swept I from the POSB account to the IPPB account 2. If during the day, IPPB account balance falls below the minimum threshold, customer will be sent a notification for authorizing sweep-in of funds from POSB account to IPPB account
3	Can initial account deposit be done using cheque?	No, initial account deposit will only be collected in cash
4	With the emphasis on digital apps and digital handling of cash – why are physical branches/network required?	IPPB branches are basically administrative/back offices managing all the access points (HO/SO/BOs) of that district
5	Can account opening be done online by the customer themselves?	Yes, this provision would be provided on Mobile banking channel as well as Internet Banking Channel (subsequently after launch).
6	Often customers do not have access to the proper channels of banking system apart from their regular business hours, how do we address this?	IPPB mobile application will be available 24X7. Doorstep banking agents will be able to provide service during extended hours for digital transactions
7	Cash management is an extremely critical issue, how does IPPB plan to address the issue?	IPPB will leverage the current DoP infrastructure for managing cash, rather than creating a parallel infrastructure, so as to reduce complexities, cost and effort. Over in the long run, IPPB will aim to push digital payments and reduce the need for holding cash. IPPB will also acquire merchants, and enable cash management for them. This would help cash circulate locally and will make post offices self-sufficient with respect to cash.
8	How will the additional work of IPPB affect the cash management of DoP during transactions in the branches?	IPPB will be treated as another line of business by DoP similar to PLI, Mail products, Financial products etc. Cash across all functions will be fungible. Approvals have been received from CGA and C&AG to create the necessary settlement accounts and accounting heads to ease the accounting process
9	As certain operations are very different in DoP, who will be performing the EOD operations in IPPB?	EOD operations will be centralized at the IPPB DC
10	How are the financial powers delegated within IPPB and does it involve any CPMG at the regional level?	IPPB has a different organizational structure and financial powers. IPPB employees will not require separate approvals from DoP circles/regions for procurement done by IPPB
11	How will IPPB reduce the cost of transaction and the reconciliation of payments for merchants?	As the adoption/usage of IPPB’s merchant solution picks up, the cost of transactions for the merchants would go down. The merchants efforts would reduce with respect to cash handling, storage, counterfeit, cash security, logistics etc. As all the IPPB transactions would be in real time, the merchants would have a near real-time access of the transaction status thus reducing their effort/costs.
12	How will be the maker checker concept work in single handed post offices?	IPPB’s transactions are biometric/secure authentication driven. While the agent will act as maker, the customer before giving authentication will check that all details are properly recorded and only on their confirmation will the transaction go through along with instant confirmation of the transaction communicated to the customer on their registered mobile device
13	How will confidentiality of IPPB data be ensured since DOP staff will have access to the system?	The DoP staff will get access to the customer’s account only after the customer authentication. This will avoid direct access to customer information. However, any intentional breach of confidentiality committed by DoP staff will be dealt with appropriately
14	Will you be using the local customer data to facilitate 3rd party products? Will you take consent before you offer 3rd party products?	Yes, IPPB will use customer data available with it to determine which third party products should be offered to the customers. Also, consent will be taken in all cases before customer is offered a third party product and also for sharing their data with the third party.
15	On the 2nd/ 4th Saturday if a customer comes to the post office for IPPB financial transactions, how will this work since it is a holiday for IPPB?	If IPPB has a holiday and DoP does not, banking facilities will still be provided to the customers through the DoP access points and staff at these access points (Postal Assistants/ Postmen/ GDS)
16	Can customers raise grievances online?	IPPB customers would be able to raise their Queries, Requests, Complaints across hosts of channels: -call center, – email, -mobile/internet banking, or – by visiting the nearest post office access point or IPPB branch
17	What is the backup plan for biometric scanners as there is a significant failure rate for finger print readers/	The biometric failure can be due to multiple reasons incl. UIDAI connectivity/server timeout, wornout customer fingerprint etc. As a back-up, IPPB will offer a fail-safe only for senior citizens (above 70 Years) where a OTP will be sent to registered mobile number for authentication only after 3 failed attempts are logged in the system.
18	If a customer defaults on their loan payment (sold through an IPPB agent) – who is responsible? How does that affect IPPB?	While IPPB agent may have provided the lead, the responsibility for conducting due diligence is of the partner bank sanctioning the loan. Thus responsibility of default is of the loan provider and not DoP/IPPB
19	Why not use a kirana store as a banking correspondent (BC)?	On Day 1, IPPB will only have DoP as its Banking correspondent, however, as customer base and operations expand, it may on-board more BCs, including Kirana stores.
20	Will IPPB use the same internet network infrastructure as DoP?	Yes, IPPB will leverage the existing network infrastructure of DoP at the post offices to provide transaction services to customers. At post offices where the bandwidth/network capacity needs to be increased, adequate steps are being taken by DoP. For door step services through GDS, IPPB is providing the mobile phones/hand held devices and SIM connectivity
21	How will the DoP last mile agents be motivated to work with IPPB?	Last mile agents will be provided a handheld device to service customers. They will also be trained on IPPB systems and processes. To keep them motivated and associated with IPPB, they will be given incentives for servicing all revenue generating transactions for IPPB
22	With low mobile penetration and poor mobile connectivity how will IPPB manage operations?	IPPB will provide GDS with handheld devices. The GDS will facilitate transactions for customers on these devices through the use of secure biometric authentication. Also, to ensure proper network connectivity in these devices, the GDS will be provided the choice of selecting the telecom service provider who offers better connectivity in the area.
23	How are we managing the KYC for the bank registration?	IPPB will follow e-KYC process of UIDAI to perform KYC for its customers. It will also be complying with CKYC guidelines
24	What will be the area covered by GDS and Postmen? Who will decide the area covered?	GDS and Postmen will provide banking services in the areas that they already cover as part of their DoP routine job. Allocation of doorstep requests to agents will be done by supervisors
25	Are we making provisions for customer care for the consumers?	IPPB is setting up a contact centre for handling customer care apart from ensuring that IPPB officers are available at all district HQs for customer grievance redressal as per regulations
26	How are we going to handle cash when there will be amount more than 1 Lakh in the account? Are we going to give an auto-sweep option to the customer with the attached POSB account?	If at end of day, balance in IPPB account is higher than 1 lac or the maximum threshold defined by the customer, the additional amount will be automatically swept out from the IPPB account to the linked POSB account. The consent for auto-sweep out will be taken from the customer at the time of account opening
27	Lots of surplus cash is retained in PO? Do you have any plan to assess this surplus? How do you handle the supply chain management?	In order to avoid the creation of parallel infrastructure to manage cash at the last mile, IPPB is going to leverage the existing cash management process of DoP to handle cash at the last mile. Surplus cash and supply chain management of cash will be done as per the existing DoP processes. The process has been agreed between IPPB and DoP, and the accounting process for the same has been approved by CGA and C&AG
28	Are we thinking of providing security to the GDS and Postmen if they are to handle cash in their day-to-day work?	IPPB will limit the cash transactions at doorstep and also undertake insurance of IPPB cash in transit and cash in deposit
29	Who will do fraud investigation in IPPB?	IPPB will have a central fraud prevention team that will centrally monitor cases of frauds. In case of frauds, case by case investigation will be done by DoP (ASP/IPO) in collaboration with IPPB (TM/TO)
30	If a fraud is committed by DOP staff who will be held responsible?	It will be the same process as followed by DoP for POSB.
31	Has IPPB opted for IFSC codes?	Yes, IPPB is going to be party to all the 3 payment systems and therefore will depend on the payment mode as opted by the customer for the transaction to keep the options open
32	What are our plans to mitigate the concerns related with the cash management which is currently a huge issue for the BOs and branches which are not well connected?	IPPB will deploy advanced analytics & MIS platform that will help determine cash requirements including shortage/excess of cash in advance (based on past trends), helping IPPB and DoP take pre-emptive measures. This will help manage cash more efficiently.
33	Any example of a BC model running successfully in India?	There are several corporate Business correspondents such as Oxigen, Eko, FINO etc. who have several thousand sub-agents offering banking services. FINO has now become a payments bank itself.
34	Can one personnel be employed both by DoP and IPPB?	No, the GDS/ Postmen/ counter staff will act as agents of IPPB and not be IPPB employees.
36	Shall RD agents also be utlised by IPPB?	During the initial launch only DoP staff and GDS will be trained an on-boarded as agents in the system. RD/MPKBY/SAS agents may be trained and utilized subsequently, if needed.
37	Is money transfer using Aadhaar number, a secure process?	Yes, there is an added level of security built in as the transaction happens through customer’s biometric authentication.
38	It was observed during the account opening process that the mandatory fields like Mother’s Maiden Name / Mother’s Name etc are not available in the CBS of DOP as we pick the data from existing CIF holders.	These are needed as part of the CKYC stipulations. DoP is not part of the regulated banking industry and does not follow CKYC yet. IPPB will follow the CKYC guidelines when it onboards customers, from inception.
40	How do we overcome language barriers? Target customers may not understand English language on the GDS/Postman’s device	The mobile application will be provided in multi-lingual support for 13 languages. This will ease understanding for GDS/Postman as well as the target customer base
41	With the introduction of IPPB, GDS will be excepted to undertake enhanced responsibilities. Apart from incentives for transactions being given by IPPB, will DoP increase their TRCA?	GDS Committee has recommended substantial increased the TRCA (proposed new name is wage). This has been done taking into consideration possible increase in workload on account new services like IPPB as well and is expected to receive approval of competent authority shortly.
42	In order to compete with the banks, IPPB will be asking GDS to work beyond their normal work hours. They will be giving services on par with postmen. The will the Dept be increasing their works hours accordingly?	The recommendations made by GDS Committee apart from other benefit also include increase in minimum working hours from 3 hours to 4 hours across all categories of GDS.
43	On what kind of transactions ill IPPB pay incentives?	IPPB incentive for DoP staff and GDS is linked primarily to business performance i.e. revenue generating transactions for IPPB such as bill payments, remittances, door step transactions etc.
44	A lot of the post offices are facing a scarcity of staff. How will this be managed?	Recruitment drives are being undertaken in various circles for different cadres of employees and the situation will soon improve
45	How will Door step service request work/ Including routing of the request to the postman/GDS	Customers will be able to log service requests through call centre, mobile banking, post office counters and even take the help of the postmen GDS on their beat to log service requests. Once the request is logged, IPPB systems will route the request to the nearest post office of customer (communication address) and further gets allocated to the post man/GDS. The non-cash/digital transactions can be fulfilled the same day. In case, it’s a cash transaction and he does not have enough cash for payout/has exceeded his cash carrying limit for deposits, he can fulfill it the next round of his beat. There will be a time window for servicing such requests
46	Will the ASP/IPO work in coordination with IPPB field officers?	Yes, they will work together with the IPPB officers in all phases from training to execution.
47	Will IPPB pay incentives for account opening? this is done by all banks for the BC agents? If not, then how will it be attractive for the GDS/postmen to do business for IPPB	The Committee set by the Dept on incentives has recommended that the incentive for account opening should be paid to DOP instead of PA/Postmen/ GDS. Now a call to be taken by the competent authority on this
48	How to communication to the customer about linkage of IPPB account with POSB Savings Account without confusing them?	Simple communication scripts are being drafted and will be shared during training/ sensitization sessions.
49	The current authorized minimum and maximum balances of BOs as well as line limits are very low. Will these be increased with the launch of IPPB?	Yes, IPPB will be requesting DoP to increase the authorized balances and line limits wherever necessary for IPPB operations at launch. Once data is available on the transactions, these limits will be dynamically reset as per operational requirement. IPPB will undertake insurance of the cash in hand / in transit on its account.
50	Connectivity in rural areas is a major problem. How tackle this at launch?	IPPB will enable choice of connectivity provider for the SIMs procured for its smart phones. However, access points where no connectivity is available at all need to be considered for inclusion only in the last waves of ramp up. Details of such access points should be intimated so that necessary action may be initiated to manage connectivity from some network provider or the other.
51	Why do we have to select double handed BOs for launch?	As has been clarified repeatedly in the VCs, double handed BOs would require training of both GDS BPM and GDS DA. While in case of GDS DA, IPPB would provide smart phone devices for undertaking doorstep banking, the GDS BPM would be working on RICT machines on which IPPB App would also be available. Thus, while the GDS BPM would be trained on RICT machine, the GDS DA would be trained only on the smart phone device. At present all RICT devices are on production environment and no device is available for training. Also the IPPB App for RICT machine is not fully ready and many locations where RICT has been fully rolled out are currently facing network issues. Training devices are likely to be available in a couple of months and only then can the BPM be trained on the device. In the case of singled handed BPMs they will work on both RICT devices as well as the smart phone device and will be trained on both devices. In case a single handed BO is identified for launch the BPM will need to be called again for training on RICT devices within a short span. This is why double handed BOs are being selected for the launch and wave-1 of the ramp up so that services can commence through the GDS DA who will be trained on the smart phone device provided by IPPB.
52	It is possible to do IPPB transactions beyond Post Office office hours?	The IPPB system will be 24×7 online except for cash transactions which will be defined working hours. Agents can perform non-cash (digital, financial and non-financial) transactions any time on the agent App through smart phones provided by IPPB. Agents will be paid incentive for all revenue generating transactions in order to motivate them to undertake these transactions at a time convenient to the customer. At the same time adequate time window for fulfillment of doorstep services requested will be provided and a definite number of such requests will be allotted for fulfillment in a particular day.
53	Will transactions done on smart phones immediately reflect in the core banking system?	As per RBI guidelines every transaction is to be online. All transactions will immediately reflect on the CBS the customer will be able to see the effective balance on screen on the mobile App / Agent App. They will also receive a transaction alert through SMS after every transaction.
54	Will there be any limit for cash transactions at the doorstep? Will there be any daily limit for carrying cash for GDS/Postman?	IPPB will prescribe a per customer per day per transaction limit for cash transactions. IPPB will also prescribe a cash carrying limit for GDS / Postman on his beat.
55	In rural areas many customers may not have personal mobiles and the same mobile may be shared by multiple family members. How will transaction details be sent in this scenario?	IPPB will allow one mobile number to be linked to 5 accounts within the same family to accommodate this scenario. The transaction details sent will identify the account number to which the SMS pertains.
56	What are the incentives to be shared with the DoP last mile?	The incentives are proposed to be paid for all revenue generating transactions as a percentage of the revenue earned by IPPB. The exact amounts are being finalized on the recommendations of the incentive Committee set up by DoP and will be shared soon.
57	Aadhaar penetration in Assam and Meghalaya are very poor. Since IPPB account opening is through e-KYC, how will services be provided to the citizens of these two States?	The Department of Posts is operationalising more than 200 Aadhaar enrolment centres in Assam and more than a 100 in a North East Circle very soon. This is, in fact, a good opportunity for IPPB to do some pre-launch marketing in order to provide IPPB accounts to every citizen who enrolls for Aadhaar through the Department of Posts. Thus, an existing constraint can be turned into a potential win-win for all.
58	Who will pay for the electricity consumption in IPPB Branch? Will new connection have to be taken by IPPB branches?	Electricity consumption in IPPB branch premises will be paid by IPPB. No new connection is required. A sub-meter may be added and bills pertaining to IPPB consumption may be paid by the IPPB Branch Manager monthly. In very small branches <300 sqft, sub-meter may not be practical some way of sharing electricity bill will be worked out
59	How will IPPB add value to postal transactions and the mails vertical of DoP.	IPPB will bring easy to use digital payment options for payment of postal products at counters. Thus, digitizing the current cash transactions and increasing the ease of operations, reducing cost of handling cash and helping create a digital repository of DoP’s customers availing various services in order to work out a 360 degree view for cross-selling. IPPB will also digitize collection of cash on delivery and provide customize solution for digital payment of e-commerce parcel online. Thus increasing ease of use by the customers, last mile agents as well as the department as a whole.

Technology FAQs

S.No.	Questions	Answers
1	We already have Infosys, TCS etc. working for RSI, FSI & CSI. Why do we need another vendor for IPPB? Could we not have used one of the earlier vendors, thus avoiding duplication?	DoP decided to set up a new technology infrastructure for IPPB due to the following: · Avoid legacy problems that DoP faced with current vendors · A roadmap to meet all major technology needs for the next 5 years · Open architecture for ease of integration with multiple partners – lenders, insurers, fin tech companies, others. · Manage technology performance area – Response times, cybersecurity robustness etc. These are far easier to handle when a single SI is responsible · Discover a better market price through open tendering
2	Who is handling the creation of IPPB technology platform?	IPPB SI vendor – M/s EIT (formerly M/s HP Global Services)
3	What CBS is being deployed?	Finacle
4	How will the IPPB technology system be different from the current CBS (given the challenges being faced with the current CBS)	Although both IPPB and DoP will have Finacle as their CBS, the major difference will be as follows: 1. Larger gamut of services offered through IPPB CBS – Digital banking, Door-step banking, remittances, bill payments, cross selling of third party products etc. 2. Scalable to high transaction volumes 3. The DoP CBS is a highly customized version of Finacle suited to unique products and features of DoP, whereas at the core, IPPB CBS is relatively more standardized and hence expected to be more stable
5	Technology is changing fast – how will capacity-building be done with fast-changing technology?	IPPB’s technology architecture if forward-looking. The business plan has volumetric projections which ensures that capacity for the next year is catered to in the year before.
6	How will the existing CBS and other DoP technology integrated with IPPB technology?	There have been integration points that have been identified between DoP and IPPB which require integration. These form plan of the project plan. IPPB & DoP’S SI are in touch to smoothly develop and implement this
7	Can RICT devices substitute for the handheld devices being procured for IPPB?	The RICT devices cannot effectively substitute the handled devices due to limited screen size, existing operating system, size, weight, etc. especially for the sale of 3rd party products and for doorstep transactions. However they can be very effective payment acceptance infrastructure for both DoP & IPPB
8	Will RICT move to IPPB	No, RICT will remain with DoP
9	How will IPPB operate in areas with low connectivity?	Necessary bandwidth upgradation at DoP premises where bandwidth is low is being undertaken by the department. The GDS/Postmen will be empowered to choose mobile service providers who have the best network/ connectivity in their particular location.
10	What is the quantity of handheld devices being procured?	In the initial phases, IPPB is planning to provide a handheld device primarily to GDS – Delivery Agents and one per Branch post office (BO) i.e. around 130,000 devices at least.
11	Will IPPB or DOP provide handheld devices to Postmen/GDS?	DoP has already provided smartphones to 15000 postmen and is going to provide to all other postmen too this year. IPPB will provide one smartphone to each Branch post office. In single handed BO, the GDS BPM will get it, in multi handed BOs, the GDS delivery agent (DA) will get it.
12	In our training sessions, we were told that IPPB software runs on the internet, so can we go with high speed broadband network at our branch premises rather than sharing existing network?	IPPB applications at SO/HO would run on LAN and not on the internet. GDS agent app is on mobile so internet would be required. Our officials at our 640 branches might be using internet for official work and broadband requirements can be considered after proper evaluation.
13	What are the timelines for procurement of the devices?	The IPPB committee has approved the specifications for the devices and they are now being procured through the GeM (Government eMarketplace) platform. Over a period, the devices will be procured in a staggered manner and will be aligned with the rollout of access points. The devices will be distributed during the training of the GDS/Postmen.
14	Will there be another different network connection for the smartphone in addition to the present one for RICT?	IPPB will provide android based smartphone devices which will have a separate sim card connection. The GDS/postman will be able to select the SIM card of the telecom provider with the best connectivity in the area he serves further the SIMS will be having both 4G/3G connectivity depending on availability through service operator. This SIMs are likely to be company owned company paid The existing setup for RICT will remain as is.
15	Has the department considered upgrading the existing technology infrastructure to facilitate IPPB operations?	This will be done wherever required. DoP had already identified areas where it is needed and will be done before go-live
16	Will there be integration of the interface between Mobile banking and Internet banking screen of DoP & IPPB?	IPPB and FS Division are working towards it. It may not be possible on Day 1, but it is the ideal state to be achieved soon thereafter
17	Who will provide IT infrastructure at DoP access points (Ho/SO) as per the specification given by IPPB?	Minimum infra requirements have been shared. At the counters in HO and SO, existing DoP infrastructure will be leveraged/upgraded if required by DoP. IPPB will provide biometric devices (finger print readers) for the counters to perform eKYC and biometric authentication for customer transactions
18	Will there be a technical challenge accessing two different CBS (DoP and IPPB) from the same machine at counters?	The CBS version for both, DoP and IPPB is similar (DOP CBS is Finacle 10.2.13 and IPPB version is 10.2.18). No architectural difference is involved. Therefore, no change in hardware or any Operating system level configuration changes are anticipated.
19	Is there a possibility of doing transactions in offline mode?	No, as the regulations do not allow it.
20	Is it possible to pay ‘PLI premiums through QR card/IPPB account?	The customer would need to open an IPPB account first. Once the integration of IPPB system with the PLI system is established soon after launch, it would be possible to pay PLI premia through the IPPB account using various modes including the QR card
21	How do we deal with the customer queries as we were told not to disclose any confidential information?	In the beginning, please ask customers what services they need and then answer them by giving them generic information about the services being offered at launch or soon thereafter.
22	Could the mobile application be made available in Hindi and regional languages as well?	The application comes with multi-lingual support for 13 languages.
23	What does the branch tracker indicate?	The branch tracker is an online tool for updating various activities at the branches including -physical readiness (i.e. completion of civil, electrical, furniture and branding works), -identification and prioritization of access points for launch, -identification of counters for servicing IPPB customers, -identification of end-users for training etc. All this information is then consolidated centrally to track progress and plan future activities
24	Has the IPPB app for GDS got all services so that we can stop using RICT machines?	IPPB will deploy its app on the RICT devices soon after launch. It is a useful physical acceptance infrastructure. hyttIPPB will supplement it with it’s smartphone based device, one in each BO. The single handed BPM will be trained on both and in double handed BOs, the BPM who has stationary duties will use the RICT device and the DA will have the IPPB smartphone.
25	Will DoP Apps be loaded on smart phones supplied by IPPB?	The same mobile will be used for both DoP and IPPB functions. Just like smart phones procured by DoP and provided to Postmen will be loaded with IPPB Apps in future. The smart phones provided by IPPB can also be loaded with DoP Apps as they get developed.
26	Many of the Computers in post offices are obsolete and need to be replaced	Old H/w are being continuously. Some are likely to be replaced in the near future. IPPB counters are very few and configuration required would be similar to that currently used for CBS.

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