NewDelhi: India Post Payments Bank (IPPB), an entity under the Department of Posts, has launched a zero-balance Self Help Group (SHG) savings account. The SHG accounts come with a maximum balance limit of Rs 2 lakh and is aimed at strengthening financial inclusion and empowering women-led SHGs in rural India. The government said that the initiative has been designed to provide a simple, accessible and cost-effective banking solution for Self Help Groups, which play a key role in driving rural economic activity and are closely linked to government livelihood programmes such as the National Rural Livelihoods Mission.
IPPB SHG Savings Account 11 features and benefits:
1. Zero balance, zero charges account to ensure affordability.
2. Digitally enabled for simplified onboarding.
3. Delivered through the vast network of Post Offices and Postmen/ Gramin Dak Sevaks.
4. No minimum initial deposit requirement.
5. No Monthly Average Balance (MAB) requirement.
6. Maximum balance limit of Rs 2,00,000.
7. Quarterly interest pay-outs as per applicable savings rates.
8. Nil charges for cash deposits and withdrawals.
9. One free physical account statement per month.
10. No account closure charges.
11. No QR card issuance charges.
How to open an IPPB SHG Savings Account?
Visit the nearest Post Office or India Post Payments Bank branch/outlet with documents/proof of your Self Help Group, Aadhaar, Pan, and photo. Fill the required forms digitally or a physical copy and submit the documents with the form.
IPPB SHG Savings Account Charges, Interest Rate
While the account opening is free of any charges as it’s a zero-balance account, there are certain charges that the account owner should be aware of.
For SMS alert services, the IPPB charges Rs 0.25 + GST per SMS. The maximum capping of SMS charges per quarter for customers shall be Rs 100 + GST and for Merchants, the maximum capping of SMS charges per quarter shall be Rs. 50 + GST effective from 1st October 2024.
If you want a balance certificate, you will have to pay Rs 50 each time. Other charges are:
* AePS Cash Withdrawal over non IPPB Network: Rs 20 per transaction post free limit.
* AePS Cash Deposit over non IPPB Network: Rs 20 per transaction post free limit.
* AePS Mini Statement over non IPPB Network: Rs 5 per transaction post free limit.
The IPPB provides interest on the savings amount, and the rate is similar to that of a normal savings account. For a balance up to Rs 1 Lakh, the interest will be payable at the rate of 2% per annum, while for the balances above Rs 1 Lakh & up to INR 2 Lakh, the intrest rate will be 2.25% per annum. The interest is payable quarterly.
Which features are not available
The IPPB has made certain features out of the scheme to keep the account simple and purpose-driven for SHG operations. The services which are not available include:
* Mobile banking access
* Nomination facility
* POSA account linkage
* Standing instructions
* Bill payments or mobile recharges
* Virtual debit card issuance
IPPB SHG Savings Account ideal eligibility
The IPPB SHG Savings Account is ideal for groups engaged in activities such as retail and small trading, cattle rearing and dairy activities, tailoring and handicrafts, zari work and embroidery, artificial jewellery making, and other local micro-enterprises.
The SHG savings account comes with a ‘zero minimum balance’ requirement and no monthly average balance condition, along with nil charges for cash deposits and withdrawals. It also offers quarterly interest payouts, no account closure charges, and free monthly statements.
IPPB currently serves customers across more than 5.5 lakh villages and towns, offering paperless, cashless and presence-less banking through its technology-driven platform available in multiple languages.
Bureau Report
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