India Post Payments Bank (IPPB) and HDFC Bank have signed a memorandum of understanding (MoU) for offering various banking products and services to customers of IPPB in semi-urban and rural areas, focussing on unbanked and underserved segments. Over 4.7 crore customers of IPPB of whom nearly 90 per cent are residing in rural areas are expected to benefit from this partnership.
The strategic alliance will enable India Post Payments Bank to provide affordable and diversified offerings, including access to finance, to its customers through its innovative Doorstep Banking Service. With nearly 200,000 postal service providers (postmen and gramin dak sevaks) equipped with microATMs and biometric devices, IPPB caters to the needs and requirements of various customer segments but is also committed to making digital adoption easier at the last mile by enabling an assisted banking model. With this partnership, HDFC Bank aims to further strengthen its financial inclusion drive by leveraging the robust and extensive distribution network of IPPB’s 650 branches and over 136,000 banking access points across India.
Highlighting the partnership, J. Venkatramu, Managing Director & CEO, India Post Payments Bank said,”By bringing banking at the doorsteps of customers, IPPB is steadily transforming and reshaping the financial inclusion landscape across the country. Our endeavour is to build a unified platform offering various citizen-centric services including, credit at the doorstep by leveraging digital technologies and alternate data sources in collaboration with lending partners. This important partnership with HDFC Bank is a step in that direction of promoting an inclusive, digitally-driven and social banking ecosystem.”
Speaking on the tie-up, Smita Bhagat, Country Head – GIB, CSC, e-Commerce, Start-ups and Inclusive Banking Initiatives Group, HDFC Bank, said, “HDFC Bank has been championing the cause of financial inclusion through several initiatives and this partnership is one more step in that direction. This alliance will allow us to take our best-in-class products and services to millions of IPPB customers in the remotest corners of India.”
This is a significant tie-up for HDFC Bank also as it will help expand its customer outreach to the last mile. IPPB’s product portfolio is wide-ranging and includes savings and current account, 24×7 instant money transfer, Aadhaar enabled Payment System, DBT including Mahatma Gandhi National Rural Employment Guarantee Scheme and payment of scholarships, bill and utility payments, digital life certificate, third party products, and other such services.
Read more: HDFC Bank bags CII’s ‘Most Innovative Best Practice Award’ for financial inclusion in rural areas
RuralMarketing.in is now on Telegram. Click here to join Rural Marketing on Telegram and stay updated with the latest news and updates on rural business and the economy.