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PNB To Help India Post Payments Bank Set Up Pilot Branches

PNB ties up with India Post Payments Bank.



A woman enters the India Post Chembur branch in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)
A woman enters the India Post Chembur branch in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

State-owned Punjab National Bank (PNB) on Friday said it will help India Post Payments Bank (IPPB) set up pilot branches.

India Post Payments Bank and PNB have signed a memorandum of understanding to achieve strategic depth in financial inclusion. Under the partnership, PNB would help IPPB set up its pilot branches,” the bank said in a statement.

IPPB's pilot branches in Ranchi and Raipur were inaugurated through a video conferencing by Finance Minister Arun Jaitley and Minister of State for Communications Manoj Sinha last Monday.

IPPB will offer an interest rate of 4.5 percent on deposits up to Rs 25,000; 5 percent on deposits of Rs 25,000-50,000 and 5.5 percent on deposits of Rs 50,000-1,00,000. It is the third entity to receive payments bank permit after Airtel and mobile wallet Paytm.

Payments banks can accept deposits up to Rs 1 lakh per account from individuals and small businesses.

The paid-up equity of IPPB is Rs 800 crore, of which the government has already infused Rs 275 crore.