IPPB Expands SHG Savings Account Facility To 1.64 Lakh Post Offices Across India

New Delhi, Jul 31 (KNN) India Post Payments Bank (IPPB) has made its Self Help Group (SHG) Savings Account facility available across the country through more than 1.64 lakh post offices, the government informed the Rajya Sabha.

Minister of State for Communications and Rural Development Pemmasani Chandra Sekhar said the account does not require any minimum initial deposit or monthly average balance, making it accessible to women-led SHGs.

Account Offers Zero-Balance Facility, Rs 2 Lakh Limit

As a payments bank, IPPB allows a maximum end-of-day balance of Rs 2 lakh in the account. Account holders also receive free cash deposit and withdrawal facilities, one physical account statement each month, and no charges for account closure or issuance of a QR card.

The government said awareness about the facility among women-led SHGs is being expanded across the country as part of its financial inclusion efforts.

Doorstep Banking Services Extended To SHGs

Postmen and Gramin Dak Sevaks (GDS) have been equipped with smartphones and biometric devices to provide banking services, including account opening and cash deposits and withdrawals, at customers' doorsteps through biometric authentication.

Women GDS, Postwomen Trained As Financial Educators

IPPB also trains women GDS and postwomen to act as financial educators. Individual SHG members can additionally access Post Office Savings Bank, Postal Life Insurance, Rural Postal Life Insurance and other citizen-centric services offered by the Department of Posts.

The government said SHG members can also be onboarded as IPPB Banking Correspondents and Postal Life Insurance agents, helping expand their financial footprint and entrepreneurship opportunities.

Dak Ghar Niryat Kendras To Support SHG Market Access

The use of Dak Ghar Niryat Kendras, along with the department's parcel and logistics network, is also expected to help SHGs distribute their products across India and international markets.

According to the government, these measures are aimed at promoting women's empowerment, digital financial inclusion, rural entrepreneurship and inclusive economic growth.

Impact on MSMEs

The nationwide SHG banking facility will strengthen women-led micro-enterprises by providing easy, zero-balance banking and doorstep financial services. 

Access to banking correspondents, credit-linked services and Dak Ghar Niryat Kendras can also help SHGs formalise operations, expand market access and grow their businesses. 

(KNN Bureau)