Comparison between India post payments bank and post office saving account: Fact box

Sep 6, 2018 13:31 IST
    Comparison between India post payments bank and post office saving account: Fact box
    Comparison between India post payments bank and post office saving account: Fact box

    The India Post Payments Bank (IPPB) was launched on September 1, 2018 by Indian Prime Minister Narendra Modi to ensure financial inclusion of all the citizens in the country, especially the rural population. The IPPBs will have 650 branches and 3250 access points across the country.

    The main objective of the IPPB is to build the most accessible, affordable and trusted bank for the common man. However, the post office saving account (POSA) also aims to serve the same purpose. In fact, both the accounts can be linked together. So how are the two banking systems different?

    IPPB vs POSA




    Types of Account

    The IPPB offers three different types of savings account – regular, digital and basic.


    POSA offers standard banking and remittance services.

    Opening an Account

    Accounts can be opened instantly through their respective mobile apps just by providing details like Aadhaar number with KYC verification.


    Accounts can be opened after filling a post office savings account application form and submitting the required KYC documents - identity and address proof.


    Zero balance savings accounts can be opened

    Accounts can be opened with a minimum deposit of Rs 20. The accounts with cheque facility require a minimum deposit of Rs 500.


    4 percent interest on deposits, payable quarterly.

    4 percent interest on deposits, payable quarterly.

    Account - minimum balance

    Account holders do not need to maintain any minimum balance in their savings account.


    Account holders have to maintain a minimum account balance of at least Rs 50 per month or Rs 500, for accounts with cheque facility.

    Account - maximum balance

    The maximum savings amount is capped at Rs 1 lakh. Any amount above the figure will be transferred to the linked POSA account.


    There is no maximum balance limit for the account holders.

    Doorstep Banking

    New doorstep banking feature introduced. It, however, has additional charges.

    No doorstep banking feature.

    Money Transfer

    Money transfer allowed from the account to any bank account. IPPB customers can use NEFT, RTGS and other money transfer services as available for any banking customers.

    Money transfer allowed within post office savings bank (POSB) accounts. Once POSB accounts are linked with IPPB, customers will be able to enjoy all money transfer service like other banks.


    IPPB offers a free debit card with annual maintenance fee of Rs 100 from the second year. It doesn’t charge any fee for withdrawals made from its own ATM or any PNB ATM.


    Customers will be offered a debit card while opening the account. The card can be used to make withdrawals from any ATM across the country.


    Governing Authority

    Reserve Bank of India

    Union finance ministry

    The IPPB services will soon be scaled to all 1.55 lakh post offices by December 2018. The post office savings bank account holders will then be given the option to link their accounts to IPPB. Following the linking, the post office account holders will have an option to pay for post office products from their IPPB accounts including deposit money for Sukanya Samridhi Yojana, recurring deposits and speed post.

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