India Post Payments Bank (IPPB) has selected HDFC Bank to offer banking products and services to its unbanked and underserved customers in semi-urban and rural areas.
The two have signed a Memorandum of Understanding (MoU), which is expected to benefit more than 47 million IPPB customers, with 90% of them staying in rural areas.
Through the partnership, IPPB will be enabled to provide diversified offerings, including access to finance, to its customers through its Doorstep Banking Service, said HDFC bank.
India Post Payments Bank managing director and CEO J Venkatramu 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.”
Established under the Department of Posts, IPPB is 100% owned by the government of India and aims to serve the unbanked & underbanked customers.
It has a network of 155,000 post offices, with 300,000 postal employees.
It offers paperless, cashless, and presence-less banking, through a smartphone and biometric device.
Its offering includes savings and current accounts, 24×7 instant money transfer, Aadhaar enabled payment system, DBT, bill and utility payments, digital life certificate, third party products, and other such services.
Through the partnership, HDFC Bank is enabled to strengthen its financial inclusion, driven by IPPBs branch network and banking access points across India.
HDFC Bank e-commerce, start-ups and inclusive banking initiatives group country head Smita Bhagat 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.”
