India Post Payments Bank vs Airtel Payments Bank

India-post-payment-bank

After Airtel launched India’s first payments bank on 12th Jan, The department of Indian Post followed it’s footsteps quckly by launching India Post Payments Bank . Unlike Airtel IPPB is 100% Indian Government owned public limited company under the department of the posts which aims to open around 650 new branches in postal district headquarters . IPPB launched it’s pilot operations in Raipur and Ranchi on experimental basis .  This made it second in the payment bank entrants in India . APB and IPPB differs a bit when it comes to the offerings and services provided to the customers .

However let’s understand what a payment bank is for those who are new to the term .

    A Payment Bank

                              CAN            CANNOT
Accept Deposits Cannot lend money
Maximum Account Limit Rs. 1,00,000 per customer Cannot take NRI deposits
Can issue ATM and Debit Cards Cannot issue credit cards
Can set up branches, ATMs, Business Correspondents Cannot set NBFC subsidiary
Can accept money for transaction (upto 1lakh)
Distribute mutual funds, pensions products , Insurances

With Airtel already offering 7.5% interest rates , it would a tough job for IPPB to stack up against APB . Let’s understand the charges levied and interest rates offered by both the payments banks for rendering different services including deposits and withdrawals .

1. Types of Bank Accounts

Airtel Payments Bank Indian Postal Payments Bank
No Classification like IPPB , mobile number will serve as bank account ( airtel as wll other mobile services Safal : Regular Bank Account , maximum account balance limit 1 lakh , 100 rupee maintance fee from 2nd year
Saral : Basic savings deposit account , maximum account balance limit Rs. 50,000
Sugam : Basic savings deposit account , maximum account balance limit Rs. 1 lakh

2. Interest on Bank Accounts 

Airtel Payments Bank Indian Postal Payments Bank
Interests are to be paid per annum basis Interests are to be paid on quaterly basis against per annum
Offers 7.5% interest rate on savings account along with personal accidental insurance of Rs 100,000 If QAB(quarterly average balance) is less than Rs. 25,000 the interest rate is 4.5% per annum
If QAB is above Rs 25,000 and below Rs 50,000 the interest is 5% per annum
If QAB is above Rs 50,000 the interest is 5.5% per annum

3. Debit Cards

Airtel Payments Bank Indian Postal Payments Bank
Doesn’t offer physical debit card Offers phyisical debit card with every account
Virtual Master Card to be provided

4. Fund Transfers

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Image Source 

Airtel Payments Bank Indian Postal Payments Bank
Airtel will charge a maximum of 0.65% for a cash withdrawal from it’s customers Domestic remittance services will be provided through NEFT, IMPS, Aadhaar-Enabled Payment System (AEPS), UPI and *99# (USSD banking).
Transactions on the AEPS are limited to Rs 10,000 but the accounts need to be linked to Aadhaar and can happen on micro ATMs only.
Transactions on the UPI have a limit of Rs 1 lakh and money can be transferred to any bank account.
USSD transactions are limited to Rs 5,000 per transaction

Other services provided by IPPB that are not yet available with APB

Offers doorstep banking services to the customers at a minimum fee . Below are the door step services offered by Indian Postal Payment Banks

  • Cash Withdrawl
  • Cash Deposit
  • Adhar to Adhar fund transfer
  • Balance enquiry
  • IPPB will also offer  current accounts and access to third party financial services like insurance, mutual funds, pension, credit products, and forex at a later stage .

Going by the offerings and services it won’t be easy to say which payment bank will get the lead as Paytm is still to enter to market only to make the competition tougher .

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