HDFC Bank has partnered with India Post Payments Bank (IPPB) to offer its banking services to the unbanked and underserved segments of semi-urban and rural areas. A Memorandum of Understanding has been signed between HDFC Bank and IPPB to cater to the majority of IPPB’s over 4.7 crore customer base.
Around 90% of IPPB’s clients reside in rural areas, which could benefit from this rapprochement. 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 200,000 postal service providers (Postmen and Gramin Dak Sevaks) equipped with micro-automates and biometric devices, IPPB meets the needs and requirements of different customer segments.
With this partnership, HDFC Bank aims to further strengthen its drive for financial inclusion by leveraging IPPB’s strong and extensive distribution network of 650 branches and over 136,000 banking access points across India, the bank announced on Monday. “At the customer’s doorstep, IPPB is constantly transforming and reshaping the landscape of financial inclusion across the country. Our goal is to build a unified platform offering various citizen-centric services, including credit, at the door by leveraging digital technologies and alternative data sources in collaboration with lending partners,” said J Venkatramu, Managing Director and CEO, India Post Payments Bank.
Smita Bhagat, Country Head GIB, CSC, e-Commerce, Start-ups and Inclusive Banking Initiatives Group, HDFC Bank, said the bank is championing the cause of financial inclusion through several initiatives and this partnership is a step more in that direction. “This alliance will enable us to bring our best products and services to millions of IPPB customers in the remotest corners of India,” Bhagat said. The private sector lender said this is an important tie-up for HDFC Bank as it will help expand its customer base to the last mile.
IPPB offers services such as Savings and Current Account, 24/7 Instant Money Transfer, Aadhaar Compatible Payment System, DBT including National Job Guarantee Scheme rural Mahatma Gandhi and payment of scholarships, payment of bills and utilities, digital life certificate, third-party products, among others.