HDFC Bank has partnered with India Post Payments Bank (IPPB) to provide its banking services to unbanked and underserved segments in semi-urban and rural areas. A memorandum of understanding has been signed between HDFC Bank and IPPB to cater for the majority of IPPB’s over 4.7 million customers.
About 90 percent of IPPB customers reside in rural areas, which can benefit from this merger. HDFC Bank said the strategic alliance will enable IPPB to provide affordable and diverse offerings, including access to finance, to its customers through its innovative Doorstep Banking service. With nearly 2,000,000 postal service providers (Postmen and Gramin Dak Sevaks) equipped with micro ATMs and biometric devices, IPPB meets the needs and requirements of different customer segments.
With this partnership, HDFC Bank aims to further strengthen its momentum for financial inclusion by leveraging the robust and extensive distribution network of IPPB’s 650 branches and over 136,000 bank access points across India, a the bank announced Monday. “At the customer’s doorstep, IPPB regularly transforms and reshapes the financial inclusion landscape across the country. Our goal is to create a unified platform delivering diverse citizen-centric services, including credit, to the door by leveraging digital technologies and alternative data sources in collaboration with lending partners, ”said J Venkatramu , Managing Director and CEO of India Post Payments Bank.
Smita Bhagat, Country Head GIB, CSC, e-Commerce, Start-ups and Inclusive Banking Initiatives Group, HDFC Bank, said the bank has championed the cause of financial inclusion through several initiatives and this partnership is a step forward more in that direction. “This alliance will allow us to bring our best products and services to millions of IPPB customers in the most remote corners of India,” Bhagat said. The private sector lender said this is an important link for HDFC Bank as it will help expand its customer base to the last mile.
IPPB offers services such as savings and checking account, 24/7 instant money transfer, Aadhaar compatible payment system, DBT including Mahatma Gandhi National Rural Employment Guarantee Scheme and the scholarship payment, bill and utility payments, digital certificate of life, third-party products, among others.