New Delhi, Sep 11: Prime Minister Narendra Modi on 1 September launched the India Post Payments Bank that offers doorstep banking to customers, mainly in rural areas. In a move aimed at creating a payments acceptance network for micro enterprises has tied up with Financial Software and Systems (FSS) will help India Post provide affordable, quality banking and payment services to its customers.
FSS to ensure that micro-merchants are able to accept payments over any channel - online, unified payments interface (UPI), quick-response (QR) codes, Aadhaar and IPPB accounts.
The move is aimed at creating a payments acceptance network for unorganized retail including small merchants and kirana stores where consumers can make payments. FSS will also provide merchant management and settlement solutions including on-boarding fee calculation, reconciliation and settlement, it said in a statement on Monday. It comprises of a comprehensive set of solutions to bring customers and merchants into the digital payments mainstream, generating critical network effects for furthering adoption and usage. The IPPB initiative will enable micro enterprises to come on board for digital transactions, who face multiple challenges in using digital payment solutions, according to RS Sharma, Chairman, TRAI. "These merchants largely operate in the informal economy, their literacy levels are low and they operate on a small scale. They have multiple challenges in using digital payment solutions. They also have difficulties collecting dues from customers and lack working capital for, or access to, institutional credit mechanisms. They do, however, have a significant cash footprint," RS Sharma wrote in the Indian Express. Sharma also said the IPPB could be one of the final pieces in the jigsaw of financial inclusion for the entire country. The India Post Payments Bank (IPPB) was set up under the Department of Posts, Ministry of Communication, and formally launched by Prime Minister Narendra Modi on September 1, 2018. IPPB offers a range of products such as savings and current accounts, money transfer, direct benefit transfer, bill and utility payments and enterprise and merchant payments. Customers are able to access these products and related services across various channels-counter services, micro-ATM, mobile banking app, text messages and phone calls. Currently, 800 million Indians have bank accounts, creating a ready market of consumers eager to partake new products and services.