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IPPB - Future and Career: Is the grass green?

Everyone is well aware that Government of India is going to launch India Post Payment Bank on 1st of September 2018. Many people may be in dilema about its future and specially choosing it as a career option. This article endeavors to help the people with this.

India Post Payment Bank - A Brief Overview:

  • Incorporated as a public sector company under the Department of Posts with 100% GOI equity and is governed by the Reserve Bank of India
  • 650 branches of the bank along with 3250 customer access points are operational across the country from September, 2018.
  • Offering demand deposits such as Saving & Current Accounts up to a balance of Rs 1 Lac.
  • Digitally enabled payments and remittance services of all kinds between entities and individuals 
  • Provide access to third-party financial services such as insurance, mutual funds, pension, credit products, forex, and more, in partnership with insurance companies, mutual fund houses, pension providers, banks, international money transfer organisations, direct benefit transfer, etc.
  • Indiapost's vast network of around 1.54 Lakh Post Offices will be used in Door to Door Banking services. Aadhar based Account Opening using just Thumb impression, On demand cash delivery at home by Postman within 48 hours etc are going to revolutionize the Financial Inclusion dream.


The Career Progression and Hierarchy of posts is at par with other Public Sector Banks and is currently paying more than what SBI  is paying to its counterparts. So be it Scale -I, Scale -II, Scale -III etc Managerial level posts, IT, Finance, Human Resource, Law based Specialist Posts, the Structure is same of other Banks. The Core staff will have Head Quarter Posting, so the fear of Rural Posting like other banks is very less. 

Why Confusion in Choosing it as a Career:

  • This is a payment bank so unlike other Public Sector Banks it can not create Credit System of Loans, Overdrafts etc at least for now. 
  • Paytm and Airtel that have started their own Payment Banks have not been successful as expected. 
  • This is the first of its kind, not going to deal directly with the People, relying on other's (India Post) infrastructure for performing its banking operations. Also applying charges on transactions doesn't seem to be a good profit maker as availability of alternatives discourages it.
  • Focusing Information Technology based business model which other Banks are providing as an Ad on. 
  • Unpredictable future.
  • Existing staff of Department of Posts who have got an opportunity to hold Managerial Posts on Deputation Basis are in dilemma as whether their decision is right or not and what if reverted back to their parent cadre after completion of Deputation Period.

Answers to the Confusions and Future:

  • It is a very ambitious project of the Government of India with the goals of Financial Inclusion, Rural Banking, Encouraging Digital Payments and other financial services to door step of each citizen of India which is not a case with other Banks/Payment Banks/NBFCs. There is a huge investment, planning and long term road map involved in creation of this Payment Bank and services of World renowned Consultancy Firms have been sought for making it more professional and competent.  
  • The other Public Sector Banks have not as vast network as it is going to use making it the most reliable and omnipresent service point for all kind of Government Welfare Schemes, Services etc.
  • It is going to act as a Point of Sale for many private firms also who are usually centered in the big cities only. For example Insurance firms may sell insurance, NBFCs may sell Mutual Funds etc to the Rural India which, otherwise was always non-profitable and inaccessible for them thus enabling them to reach 70% population residing in the villages and small towns.
  • Well suited for Bill payments such as Electricity, Water, Internet etc, Wage payment of MGNREGS, Subsidy, Direct Cash Transfer Scheme etc making it the most important part of Indian Citizen's life. 
  • So far no Credit (loan) Business can be operated with it. So for now, risk is avoided of being a victim of NPAs. 
  • Deputationists have no need to worry as they might either be absorbed into this new Payment Bank or even if they are not absorbed, with the experience of working in a completely new kind of Banking and Business Industry and being a part of a big system from the begining will add feathers in their cap enabling them to get them big posts in other Banking, Financial and Business firms.
  • Sooner or later, the India Post Payment Bank will dominate the Saving Bank work part of Postal Department, therefore, if you got an opportunity to go on deputation on Managerial level posts, you must go for it. 

And last but not the least : "There is no free lunch". If some organization is going to pay you higher, the work will obviously should not be thought light ;)

Long Live India Post Payment Bank. 

Image result for india post payment bank

Original Article by Sarkaari Admi

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