On January 12, 2021, India Post Payments Bank (IPPB) has collaborated with the leading payment processor and provider of integrated payment products, Financial Software and Systems (FSS) to promote Financial Inclusion in underserved and unbanked segments of India. To attain this purpose, IPPB will use FSS’ Aadhaar Enabled Payment System(AePS).
Objective – The objective of this collaboration to provide doorstep delivery of banking service to customers in India.
Note – FSS is also IPPB’s preferred payment partner for Bill Payments, UPI, Card Management System, PoS ability, Aadhaar Pay, Smart Recon and Switching systems.
Benefits of the Collaboration:
i.The IPPB Partnership with FSS’ AePS solution combines the low-cost structure of a branchless business model, digital distribution, and micro-targeting that lowers acquisition costs & reaches all customers in rural area.
ii.After this collaboration, IPPB bank has become the single-largest platform in India for providing interoperable banking services to customers of any bank.
iii. With this collaboration, IPPB will provide all the banking service to nearly 410 million Jan Dhan accounts in India.
Reason behind deployment in Rural Area:
i.Only less banking operation takes place in rural area due to difficulty in Accessing banks.A Statistics states that, one can reach the bank in 30 minutes in Urban areas but the people in rural area takes 1.5 hours to 5 hours to reach banks.
Earlier in 2017, FSS has partnered with India Post to provide AePS solution to then established IPPB.IPPB has empowered citizens with digital payment products and advance India’s vision towards a less-cash economy
Achievements of this collaboration:
i.As on date, IPPB has crossed the milestone of over ₹8,000 crore cash withdrawals using FSS’ AePS solution since the lockdown(March 2020).
ii.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 can access these products and related services across various channels—counter services, micro-ATM, mobile banking app, text messages and phone calls.
About India Post Payments Bank(IPPB):
It was setup under the Department of Post, Ministry of Communication with 100% equity owned by Government of India.
Established – 2018
MD & CEO – J.Venkatramu
Headquarter – New Delhi, Delhi
Tagline– Aapka Bank, Aapke Dwaar
About Financial Software and Systems (FSS)
Established – 1991
Founder, Chairman and Managing Director – Nagaraj Mylandla
Headquarter – Chennai, Tamil Nadu