The ICFAI Business School, Jaipur

“The Role of India Post Payment Bank in Digitalization & Financial

Inclusion.”

By
Pooja Singh
24BSPJP01622
MBA - Class of 2026

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 REPORT
On

The Role of India Post Payment Bank in Digitalization & Financial Inclusion.

Pooja Singh
24BSPJP01C622

Undertaken at

India Post Payment Bank The ICFAI Business School, Jaipur

Company Guide: Faculty Guide:

Mr. Ravindar Singh Rathore Dr. Jitendra Rathore
Manager Professor
India Post Payment Bank ICFAI Business School, Jaipur

Abstract

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The purpose of this report is to present the progress made during the first month of my
internship at India Post Payment Bank (IPPB). The focus of the project is to explore how
IPPB plays a role in enhancing digitalization and financial inclusion across India. With a
wide reach through the Indian postal network, IPPB aims to bring banking services to the
unbanked population in rural and semi-urban regions. During the first month, I have
worked on understanding IPPB's services, customer engagement strategies, digital tools,
and have interacted with customers to get firsthand insights. This report outlines the
objectives, research methodology, organizational profile, initial observations, and the
future course of action.

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 Introduction
Digitalization in banking has become a significant trend, especially in developing
countries like India where financial inclusion is a major goal. Financial inclusion ensures
access to affordable financial services to all individuals, particularly the weaker sections
and low-income groups. India Post Payment Bank (IPPB), established under the
Department of Posts, Government of India, has emerged as a major player in promoting
this mission. Leveraging the vast postal network, IPPB aims to offer doorstep banking
and digital services to bridge the gap between urban and rural financial access.

The concept of Payment Banks was introduced by the Reserve Bank of India (RBI) to
increase financial services outreach. IPPB, with its unique model, is designed to serve
areas with limited access to traditional banking. With mobile banking, QR code-based
payments, Aadhaar-enabled services, and doorstep banking, IPPB is bringing digital
transformation to the grassroots.

This report highlights the role of IPPB in promoting digital and financial services during
the initial stage of the internship, detailing the work undertaken so far and its significance
in achieving the broader goals of the organization.

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 COMPANY PROFILE

India Post Payment Bank (IPPB)

India Post Payment Bank was launched on 1st September 2018 with the vision of building
the most accessible, affordable, and trusted bank for the common man in India. It functions
under the Department of Posts and is governed by the Reserve Bank of India (RBI).

IPPB leverages the countrywide postal network of more than 1.55 lakh post offices and
over 3 lakh postal employees to offer simple and secure digital banking services at the
customer’s doorstep. It offers savings and current accounts, money transfers, bill
payments, third-party insurance products, and more, focusing on digital modes like mobile
apps, QR cards, and Aadhaar-enabled payments.

With its motto of "Aapka Bank, Aapke Dwaar," IPPB is committed to ensuring that every
Indian has access to banking facilities regardless of location or socio-economic
background.

Products & Services of India Post Payments Bank (IPPB)

India Post Payments Bank (IPPB) offers a wide range of banking products and services to
promote financial inclusion, especially in rural and semi-urban areas. These services are
designed to provide easy access to digital and doorstep banking solutions.

🔹 Types of Savings Accounts offered by IPPB:

1. Premium Savings Account (Premium Khata):
A special account with value-added services for customers who want extra benefits.

2. Digital Savings Account:

Can be opened online through the IPPB mobile app. Suitable for users with
Aadhaar and PAN.

Regular Savings Account:

Can be opened at access points or through doorstep banking. Offers unlimited cash
withdrawals and interest on deposits.

🔹 Banking Services:

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 • Mobile Banking:
Secure mobile app to manage accounts and do transactions.
• SMS Banking:
Send an SMS to 7799022509 to check account details.
• Missed Call Banking:
Give a missed call to know account balance and mini statement.
 Phone Banking:
Call 155299 to get customer support in more than 13 languages.

🔹 Special Services:
• Doorstep Banking:
Banking services at your doorstep—open account, deposit/withdraw cash, pay bills,
buy insurance, and more.
• AePS (Aadhaar Enabled Payment System):
Services using Aadhaar authentication like cash withdrawal, balance check, and
mini statement.
• DBT (Direct Benefit Transfer):
Government subsidies and welfare benefits are directly credited to your
Aadhaarlinked IPPB account.

🔹 Other Services:
• DoP Product Payments:
Customers can pay for Sukanya Samriddhi, PPF, RD, PLI, RPLI, and Loan
products.
• QR Card:
A secure and easy method of banking—just scan the QR code, verify with OTP and
identity, no need to remember account number or PIN.
• Child Enrolment (CELC):
Enrolment and updates in Aadhaar for children below 5 years.
• Remittance Services for Non-Customers:
Migrant workers and walk-in customers can send money to any bank account from
more than 1.36 lakh access points across India.

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 ROLES & RESPONSIBILITIES AS AN INTERN

During the first month of the internship, I was engaged in the following tasks:

Work Done So Far

1. Understood the functioning and hierarchy of IPPB.

2. Helping customers in the installation of IPPB Mobile Banking Application and

linking that with GPAY, Phone pay. & other UPI Applications.

3. Studied the services offered through mobile apps, QR cards, and Aadhaar-enabled
systems.

4. Collecting forms from customer of account closure, fraud, freeze forms. Collected
data through customer surveys.

5. Observed common issues faced by rural customers in accessing digital services.

6. Assisted in educating customers about digital payment systems and balance

inquiries through IPPB apps.

Services Available Through Mobile App and Micro ATM (Using Biometric
Authentication):

• Account Opening
• Re-KYC
• Mobile Number Update
• PAN Update
• Aadhaar Seeding
• Linking and Delinking of POSB Account
• Nominee Details Update
• Account Upgradation (e.g., Upgrade to Premium Account)

7. Inventory record keeping.

These activities helped me understand the key factors affecting digital service adoption,
such as lack of awareness, network issues, and fear of using mobile apps among older
customers.

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SWOT Analysis of India Post Payments Bank (IPPB)

The SWOT analysis of IPPB helps in understanding the internal strengths and weaknesses,
as well as the external opportunities and threats faced by the bank. Below is the detailed
analysis:

Strengths

• Strong Infrastructure: IPPB benefits from the vast network of India Post, which
has over 1.5 lakh post offices across India. This helps the bank reach remote and
rural areas where regular banks have limited presence.
• Government Ownership: IPPB is fully owned by the Government of India. This
adds to the trust factor among customers and ensures strong financial and policy
support from the government.
• Deep Rural Penetration: Around 90% of the access points of IPPB are in rural
areas. The involvement of postmen and Gramin Dak Sevaks as business
correspondents helps in delivering banking services at the doorstep.
• Experience in Financial Services: India Post has years of experience in offering
savings and insurance services. This experience supports IPPB in offering secure
and trusted services.

Weaknesses

• Limited Range of Services: Earlier, IPPB was not allowed to offer credit services.
Although it has started offering small credit products through partnerships, it still
cannot offer full-scale loans directly like commercial banks.
• Skill Gap in Human Resources: Many field staff, especially Gramin Dak Sevaks,
come from non-banking backgrounds. Continuous training is required to upgrade
their skills for handling digital banking tools and explaining services to customers.
• Dependence on Technology: As a digital bank, IPPB is highly dependent on
mobile apps, micro-ATMs, and internet connectivity, which can be a challenge in
remote regions with low digital literacy.

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Opportunities

• Rising Digital Inclusion: With the increasing use of smartphones and internet
services in rural areas, IPPB has an opportunity to grow its digital banking footprint.
• Large Unbanked Population: According to recent data, a large section of India’s
rural population is still underbanked or not using their bank accounts actively. IPPB
can tap into this segment with its doorstep delivery model.
• Support from Government Initiatives: New schemes like "Digital India", "Jan
Dhan Yojana", and DBT (Direct Benefit Transfer) give IPPB the chance to expand
its customer base and offer last-mile financial services.
• Scope for Partnerships: IPPB can collaborate with private fintech companies and
insurance providers to expand its product offerings and improve service delivery.

Threats

• High Competition: IPPB faces tough competition from private payment banks,
fintech startups, and mobile wallet providers. These players are more advanced in
technology and have aggressive marketing strategies.
• Cybersecurity Risks: As digital banking grows, so do the risks of data breaches
and cyber frauds. IPPB needs to continuously invest in strong security systems to
protect customer data.
• Customer Expectations: Today’s customers expect fast, user-friendly, and
fullservice banking. IPPB must keep innovating its services to meet these rising
expectations, especially from younger users.
• Operational Challenges in Rural Areas: Despite its wide network, issues like
poor internet connectivity, low financial awareness, and resistance to digital
payments in rural areas can slow down growth.

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 Impact of IPPB in Digitalization

1ndia Post Payments Bank (IPPB) has played an important role in promoting digital
banking and services across India, especially in rural and semi-urban areas. With the rise in
the number of smartphones and internet users, digital banking is growing, but it also faces
cybersecurity challenges. IPPB has taken several strong steps to protect customer data and
ensure safe digital banking.
Cybersecurity Measures

Cybersecurity is very important to protect systems, networks, and customer information

from online threats. IPPB has implemented a strong cybersecurity system that ensures the
safety of its digital infrastructure. It protects customers from online fraud and supports
smooth banking services.

Virtual Debit Card

IPPB provides a virtual debit card to its customers which is directly linked to their IPPB
account. It can be used for online shopping and bill payments. Since it is virtual, there is
no risk of physical card theft. Key features include:

• Instant activation and deactivation.

• Real-time transaction alerts.
• Secure access through the IPPB mobile app.

This service is very useful for customers who prefer digital payments.

SIM Binding

IPPB accounts are linked to the customer’s mobile number via their SIM card. This makes
online transactions secure because the account can only be accessed through the registered
mobile number. OTP (One-Time Password) is sent for every transaction to ensure
authentication and prevent fraud.

MPIN Reset

If customers forget their MPIN (Mobile PIN), they can easily reset it through the IPPB
mobile app. The process is simple. This feature ensures secure and easy access to mobile
banking.

• Open the IPPB app.

• Select "Forgot MPIN."
• Enter the registered mobile number.
• Use OTP verification.
• Set a new MPIN.

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Aadhar-Linked Accounts

If a customer loses their account details, the account can be recovered using their mobile
number and Aadhaar number. This link provides an extra level of identity verification and
convenience.

Biometric and OTP for Cash Withdrawals

To withdraw cash from an IPPB account, biometric authentication is usually required. If

biometric authentication fails, the system allows withdrawal through OTP sent to the
linked mobile number. This ensures both security and flexibility.

Financial Inclusion
Financial Inclusion means providing financial services like banking, credit, and insurance
to all sections of society, especially those who were not part of the formal banking system.

Role of Aadhaar

Aadhaar has been an important tool for financial inclusion. It is a 12-digit unique
identification number issued by the government to every citizen. It helps link people to
government services and banking. Benefits include:

1. Unique Identity: Aadhaar provides a single ID that can be used across multiple
platforms for services like opening a bank account, applying for loans, or getting
government schemes.
2. Subsidies Direct Benefit: Aadhaar helps deliver government subsidies directly to
people's bank accounts. This reduces fraud and ensures only the right people get the
benefits. For example, LPG subsidies are now directly transferred to the customer's
Aadhaar-linked bank account.

Aadhaar is the world's largest biometric ID system and is recognized globally for its
effectiveness.

Challenges in Financial Inclusion

Even though many steps have been taken, financial inclusion in India still faces challenges.
Many poor and uneducated people are still outside the banking system. It is difficult to
explain online banking to someone who doesn’t know how to read or write. Digital
banking must be made more accessible and easier for such people.

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Definition by RBI

According to the Reserve Bank of India:

“Financial inclusion means delivering financial services at affordable costs to the
disadvantaged and low-income segments of society.”

Need for Financial Inclusion

India’s economic goals such as growth, modernization, equity, and self-reliance depend on
reducing economic inequality. For this, financial inclusion is necessary. We need to bring
poor and underprivileged people into the formal banking system so that the country can
move forward together.

Objectives:
• To understand the role of IPPB in enhancing digitalization in the banking sector.
• To examine how IPPB contributes to financial inclusion among rural and semi
urban populations.
• To identify the challenges faced by customers in adopting digital banking services.

• To suggest strategies for increasing awareness and adoption of IPPB services

Scope of the study:

This study focuses on the services offered by IPPB at local branches and through doorstep
banking agents (Grameen Dak Sevaks). The scope includes customer interactions, service
delivery processes, adoption of mobile and digital platforms, and evaluation of customer
satisfaction levels in targeted regions.

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 RESEARCH METHODOLOGY

Title of the project

The Role of India Post Payment Bank in Digitalization & Financial Inclusion.

Methodology adopted for study

This study uses a descriptive research methodology with a mix of both primary and
secondary data collection methods. It aims to understand the role of India Post Payment
Bank (IPPB) in promoting digitalization and financial inclusion in rural and semi-urban
areas.

Meaning

Research methodology refers to the specific procedures or techniques used to identify,

select, process, and analyze information related to a research topic. It helps in
understanding how data is collected, what tools are used, and how findings are interpreted.

Research Study
The study is descriptive in nature.

Sources of data
Both primary data and secondary data were used.

 Primary Data

• Direct interaction with customers visiting IPPB branches.

• Customer surveys using structured questionnaires (Google Forms).

 Secondary Data

• IPPB official website and annual reports.

• Articles, journals, and research papers related to digital banking and financial
inclusion.

• RBI guidelines, circulars, and government schemes related to payment banks.

Preliminary Findings and Observations

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Based on the work done in the first month, the following findings have emerged:

• A significant percentage of customers are still unaware of the full range of digital
services offered by IPPB.

• Many users are comfortable with basic services like cash deposit and withdrawal
but hesitate to use mobile apps.

• Limits on balance: Currently there is limit for maximum balance for IPPB account
to 2 lakhs only. Customer cannot do transactions of higher values. Customer has to
open POSB account and has to link it to IPPB account.

• No ATM/ Debit Card: Debit card facility is not available for IPPB account.
Customer has to visit Post Office to withdraw money. In case of emergency
customer is unable to withdraw cash after working hours.

• Connectivity issues: While using Mobile banking app, Customer has to face server
issues many times. There are more server issues compared to other bank’s app.

• Customers trust IPPB more due to its connection with the Indian Post, which adds
credibility.

• There is a need for regular training and awareness programs at the local level.

These observations underline the importance of digital literacy and the role of field
agents in achieving financial inclusion.

Recommendations
 Increase Public Awareness
IPPB should launch awareness campaigns to inform the public about the bank’s
existence and the wide range of services it offers. This will help in attracting more
customers, especially in rural and semi-urban areas.

 Adopt an Aggressive Growth Strategy

In today’s highly competitive market, IPPB must adopt a more aggressive strategy
to expand its customer base and increase business volume. This can include
strategic partnerships, promotional offers, and expanding its presence in untapped
regions.
CONCLUSION

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Conclusion and Way Forward
In the first month of the internship at India Post Payment Bank, I have gained valuable
exposure to how digital banking can be extended to underserved areas. The model adopted
by IPPB is impactful and holds the potential to transform financial accessibility in India.

However, awareness and usage of digital tools remain a challenge. There is a need for
continuous training, customer education, and promotional activities to boost the use of
IPPB’s digital services. In the next two months, I plan to focus on analyzing the collected
data in depth, conducting more field visits, and developing actionable suggestions to
support IPPB's mission. I will also assist in customer engagement initiatives and prepare
the final report summarizing findings and recommendations for the bank.

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Thank You

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