HDFC Bank has reportedly collaborated with IPPB (India Post Payments Bank) to provide its banking services to the underserved and unbanked segments in rural and semi-rural areas.
Both the parties have signed an MoU (memorandum of understanding) to cater to IPPB’s customer base of more than 4.7 crore. This agreement might be beneficial for 90 percent of IPPB customers who stay in rural areas.
HDFC Bank stated that the partnership will allow IPPB to offer diversified and affordable offerings which include access to finance to its consumers through its inventive Doorstep Banking Service. The bank intends to further reinforce its financial inclusion drive by using the extensive and robust distribution network of IPPB’s more than 136,000 banking access points and nearly 650 branches across the country.
With more than 2,00,000 Gramin Dak Sevaks and Postmen equipped with biometric devices and micro ATMs, IPPB fulfills the requirements and needs of different customer segments.
According to J Venkatramu, the Chief Executive Officer and Managing Director of India Post Payments Bank, the introduction of banking services at the customer’s doorsteps has enabled the organization to gradually reshape and transform the landscape of financial inclusion across India.
Venkatramu noted that IPPB endeavors to build an integrated platform providing various citizen-focused services which include credit at the doorstep by using alternate data sources and digital technologies in partnership with lending collaborators.
Talking about the partnership, Smita Bhagat, HDFC Bank’s Country Head GIB, CSC, e-Commerce, Start-ups and Inclusive Banking Initiatives Group cited that the bank has been advocating financial inclusion through numerous initiatives and this collaboration is one step in that direction.
Meanwhile, IPPB provides services like current and savings account, Aadhaar enabled Payment System, 24×7 instant money transfer, DBT, comprising Mahatma Gandhi National Rural Employment Guarantee Scheme and scholarship payments, utility and bill payments, third party products, digital life certificate among others.