A

INTERNSHIP REPORT
ON FINANCIAL INCLUSION IN INDIA POST PAYMENTS BANK

SUBMITTED BY:
NAME: PUSHPITA PAUL
PROGRAM: MBA (GENERAL)
ID NO. : 21IUT0160092
BATCH: 2021-2023

THE ICFAI UNIVERSITY TRIPURA

SUBMITTED TO
Dr. ANINDITA SINHA
FACULTY OF MANAGEMENT AND COMMERCE
 PROJECT TITLE:
FINANCIAL INCLUSION

SUBMITTED BY:
NAME: PUSHPITA PAUL
PROGRAM: MBA (GENERAL)
ID NO. : 21IUT0160092
BATCH: 2021-2023

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE INTERNSHIP OF MBA PROGRAM;
BATCH 2021-2023

THE ICFAI UNIVERSITY TRIPURA

 Table of contents
SL.NO. PAGE NO.

1. Abstract 1

2. Objective 2

3. Chapter-1

Company Profile 3-4

Introduction 5-6

3C Report 7-10

SWOT Analysis 11-14

Business Objectives 15

4. Chapter-2 16-19

Introduction 17

Importance of the internship area 18

Goals and Targets 19

Expected learning from the internship 19

5. Chapter-3 20-26

Strategies 21

Findings 21

Analysis of Performance 22-25

Limitations 26

Conclusion 26

6. Chapter-4 27-29

Annexure 28

References 29
 ACKNOWLEDGEMENT

I would like to express my special thanks to the faculty guide Dr. Anindita Sinha
as well as our company guide Mr. Ashish kumar Roy who gave me the golden
opportunity to do this wonderful project on the topic FINANCIAL INCLUSION,
which also helped me doing lots of research I came to know many things.
I am really thankful to them.

Date : 03.08.2022
Pushpita Paul
ID.: 21IUT0160092
 Abstract
The term Financial Inclusion signifies a process of ensuring delivery of financial
services as well as banking services to the vulnerable groups at the point of
need, adequately at an affordable cost. The concept of Financial Inclusion' was
accentuated in 2003 by Kofi Annan, former General Secretary of United Nations.
Such, efforts were undertaken by the Reserve Bank of India (RBI) in 2005 and
the said policy as already mentioned in a pilot project was first implemented by
Indian Bank Probably, by implementing such policy resolution a vast section of
the rural disadvantaged people in India was gradually coming under the ambit of
formal banking services.

The main aim of the study is to assess the level of financial inclusion. The
present study relies on primary and secondary data. Through this paper Financial
Inclusion (IFT) has been used to assess the level of financial inclusion of India
Post Payments Bank.

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 OBJECTIVE
The main objective of the study is to estimate the level of composite Financial
Inclusion of IPPB based on established parameters. However, to be more
specific the study has pursued the following objectives:

1. To study services offered by India Post Payments Bank.

2. To study prospective challenges faced by India Post Payments Bank.
3. To study analyse the level of financial inclusion of India Post Payments Bank.

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Chapter 1

3
 COMPANY PROFILE

History of IPPB:

On 19 August 2015, the India Post received licence to run a payments bank from the
Reserve Bank of India. On 17 August 2016, it was registered as a public limited
government company for setting up a payments bank. IPPB is operating with the
Department of Posts under Ministry of Communications.

The pilot project of IPPB was inaugurated on 30 January 2017 at Raipur and Ranchi. In
August 2018, the Union Cabinet approved a cost of ₹1,435 crore (US$180 million) for
setting up the bank. The first phase of the bank with 650 branches and 3,250 post
offices as access points was inaugurated on 1 September 2018. Over ten thousand
postmen have been roped into the first phase. By September 2020, the bank had
acquired about 3.5 crore customers. The bank had acquired about 4 crore customers by
December 2020. In January 2022, India Post Payments Bank has crossed 5 crore
customers mark.

Type: Division of Indian Post

Industry: Financial services

Founded: 1 September,2018

Headquarters: New Delhi, India

Area Served: India

Key people: Vineet Pandey, IPoS(secretary, Department of Poats)

J. Venkatramu, IPoS(MD & CEO)

Products: Banking

Services: Financial Services

Owner: India Post, Department of Post,

Ministry of Communications, Government of India.

Website: ippbonline.com

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 INTRODUCTION
India Post Payments Bank

India Post Payments Bank, is called as IPPB, is a division of India Post which is under
the ownership of the Department of Post, a department under Ministry of Communications of
the Government of India. Opened in 2018, as of January 2022, the bank has more than 5 crore
customers.
At India Post Payments Bank, we believe that a nation can grow when every citizen has an
opportunity to prosper, regardless of their way of life. With simple, diverse and growth-oriented
offerings, IPPB aims to provide every household in India an access to efficient banking services
and enable them to become financially secure and empowered.
India Post Payments Bank (IPPB) was setup under the Department of Post, Ministry of
Communication with 100% equity owned by Government of India. IPPB was launched as a pilot
project on 30 January 2017 in Ranchi (Jharkhand) and Raipur (Chhattisgarh), with the objective
of being present across India by the FY 2018-2019. IPPB has expanded its strength across
India covering post offices, through a network of 650 IPPB branches/controlling offices, working
on a hub and spoke model.
Our Offerings
At India Post Payments Bank (IPPB), we understand your needs. That is why we have tailored
our banking products and services to be simple and efficient.

- Savings Account
DEPOSITS
- Current Account

- Simple & Secure

MONEY TRANSFER - Instant
- 24x7
- MGNREGA
DIRECT BENEFITS TRANSFERS - Scholarships
- Social welfare benefits and other Government
subsidies
- Loans
- Insurance
THIRD PARTY PRODUCTS
- Investments
- Post Office Savings schemes
- Mobile and DTH recharge
BILL & UTILITY PAYMENTS - Electricity, water & gas bills
- Donations & insurance premiums

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 - Postal products
ENTERPRISE AND MERCHANT - Digital Payment of e-commerce delivery(CoD)
PAYMENTS - Small merchants/kirana stores/unorganized retail
- Offline payments
- Cash Management Services

3C REPORT
Company Profile Of India Post Payments Bank

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At India Post Payments Bank, we believe that a nation can grow when every citizen has an
opportunity to prosper, regardless of their way of life. With simple, diverse and growth-oriented
offerings, IPPB aims to provide every household in India an access to efficient banking services
and enable them to become financially secure and empowered.
India Post Payments Bank (IPPB) was setup under the Department of Post, Ministry of
Communication with 100% equity owned by Government of India. IPPB was launched as a pilot
project on 30 January 2017 in Ranchi (Jharkhand) and Raipur (Chhattisgarh), with the objective
of being present across India by the FY 2018-2019. IPPB has expanded its strength across
India covering post offices, through a network of 650 IPPB branches/controlling offices, working
on a hub and spoke model.
Our Offerings
At India Post Payments Bank (IPPB), we understand your needs. That is why we have tailored
our banking products and services to be simple and efficient.

- Savings Account
DEPOSITS
- Current Account

- Simple & Secure

MONEY TRANSFER - Instant
- 24x7
- MGNREGA
DIRECT BENEFITS TRANSFERS - Scholarships
- Social welfare benefits and other Government
subsidies
- Loans
- Insurance
THIRD PARTY PRODUCTS
- Investments
- Post Office Savings schemes
- Mobile and DTH recharge
BILL & UTILITY PAYMENTS - Electricity, water & gas bills
- Donations & insurance premiums
- Postal products
ENTERPRISE AND MERCHANT - Digital Payment of e-commerce delivery(CoD)
PAYMENTS - Small merchants/kirana stores/unorganized retail
- Offline payments
- Cash Management Services

Accessibility:
IPPB will be leveraging the vast postal network of nearly 1.55 lakh post offices and 3.0 lakh
postal employees in every district, town and village of the country to serve you. As we continue
to expand our services to every doorstep, our postman will become your trusted financial
services advisor, working hard to ensure that you get what you need - be it receiving your
money in the fastest way possible, using it at ease for essentials, saving for your loved ones, or
even investing for a bright future. For us, every customer is important, every transaction is
significant, and every deposit is valuable no matter what the value.

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That is what we truly mean when we say – Aapka Bank, Aapke Dwaar.

Approachability: Last mile delivery of services through the postman – a son of the soil and a
friend, philosopher and financial guide to the people.

Ease of banking: IPPB integrates easily with the existing bouquet of post office services,
extends the services though a frictionless shift.
The last mile delivery agent is empowered with financial knowledge and intuitively designed
digital tools to offer financial services and guidance with relative ease.

Digital Ecosystem:
 Macro Level:- IPPB’s 360-degree payments suite creates transparency, removes
corruption and leakages and contributes to a less-cash economy.

 Individual Level:- Provides customers with the ability to transact without cash through
digital channels and enable small businesses to accept digital payments, thus closing
the loop.
Our Aspiration: Your Financial Empowerment
 Wealth grows from wealth – even small savings can go a long way towards ensuring a
better future
 Securing the unsecured – small investments and insurance to protect you against
unforeseen events
 Ensuring financial freedom – money in your hands whenever you need it.
India Post Payments Bank is gearing up to lead the next revolution of banking as one of the
largest financial inclusion networks in India, covering both urban and rural areas. Our new
model of banking aims to enable individuals, small businesses, merchants and others to utilise
full-fledged digital banking services. We are paving the way for India's largest banking network
to reach every corner of the nation.
We endeavour to stay true to our motto -
‘Every customer is important, every transaction is significant and every deposit is
valuable, no matter the value.

Customers Of India Post Payments Bank

India Post Payments Bank (IPPB) said its customer base has crossed the 5 crore mark
within three years of commencement of operations, making it one of the fastest growing
digital payments bank in the country.
"IPPB opened up these five crore accounts in digital and paperless mode through its
1.36 lakh Post Offices, out of which 1.20 lakh are in rural areas with the help of about
1.47 lakhs doorstep banking service providers," the Ministry of Communications said in
a statement.
Out of the total 5 crore account holders, around 48 per cent are women. About 98 per
cent of accounts of women were opened at the doorsteps and over 68 per cent of
women were availing DBT benefits.

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"Reaching to five crore customers in a short span of 3 years speaks of the success of
this model of providing cost - effective, simple, easy and secure digital ecosystem,
particularly to rural India. We are happy that we could empower rural women too, to
avail the banking services at their doorsteps," said Vineet Pandey, Secretary,
Department of Posts.
The focus of India Post Payments Bank has been on youth. Over 41 per cent of account
holders are in the age group of 18 to 35 years.
India Post Payments Bank (IPPB) has been established under the Department of Posts,
Ministry of Communication with 100 per cent equity owned by the Government of India.
"It is a moment of pride for the Bank, as we have moved from strength to strength while
building this customer base while providing uninterrupted banking and G2C services
even during the COVID-19 Pandemic," J Venkatramu, MD & CEO, India Post Payments
Bank said in the statement.
"The Bank is able to scale its customer acquisition on a fully digital and paperless
banking platform serving people at their doorstep. The bank is committed to serve the
rural, under-banked and unbanked citizens through collaboration & co-creation of
suitable products & services," Venkatramu added.

Competitors Of India Post Payments Bank

The IPPB has a very strong network when it comes to manpower but, there is also a
high level of competition from private players like Fino, Airtel Payments Bank, etc.
Making it clear India Post Payments Bank is here to take on competition but not at the
cost of customers, IPPB chief executive A P Singh said the entity would broaden the
market not skim it. The officer was speaking at the launch of the payments bank.
Reacting to Airtel Payments Bank, which started a few weeks ago, offering 7.25 per
cent interest on deposits, Singh said while the offer comes with “conditions apply”, there
is no such thing with IPPB.

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The government-run IPPB, which rolled out pilot services in Ranchi and Raipur districts
on Monday, will offer 4.5 per cent interest on deposits of up to Rs 25,000, five per cent
on Rs 25,000-50,000, and 5.5 per cent on Rs 50,000-1,00,000.
“If you have seen (Airtel Payments Bank offer), there is an asterisk above that, which
typically means conditions apply. Our endeavour is that we will also have an asterisk
which will say no conditions apply. This (Airtel’s) is ultimately a promotional offer. The
economics of it is very clear. We can only put money in government treasury bonds,
which currently are giving about 6.7 per cent pre-tax. After tax, it comes down to about
five per cent,” Singh said.
IPPB will spend Rs 800 crore on building a pan-India network. “Of this, Rs 200 crore is
the paid capital of the company. The government has so far released Rs 275 crore,
most of which is still with us,” Singh said.
While Airtel would be levying 0.65 per cent transaction charges on withdrawal above Rs
4,000, IPPB would not be charging anything. It has roped in Punjab National Bank for
banking services, and is open to bringing in more players.
He added that public money is building IPPB. “I think governments do not compete with
the corporate. They can skim the market, we will nurture it from below. I think primarily
our role is to deepen and broaden the market. We are not here to skim the market.”
The bank aims to have 650 branches which roughly comes out to be one in each
district, to be operational by September 2017. Each of these branch will connect to the
post offices in there district.
Also, going by RBI directives, about 1,000 India Post ATMs will be transferred to the
payments bank by the end of the current financial year. “We plan to do something
innovative with these ATMs, they will be dispensing more that just cash,” Singh added.
IPPB is giving a debit card with the card which can be used at these ATMs. It plans to
increase the number of these ATMs.

SWOT Analysis
Strength Of India Post Payments Bank

Our Network
IPPB provides simple and efficient banking solutions by providing access to all its
customers through its digital and mobile platforms. We leverage a nation-wide
distribution network of the Department of Posts – one of the largest postal services in
the world – to bring assisted banking services within the reach of every Indian, both
rural and urban.
Our Current Operational Strength
 650 Branches/Controlling offices (~one branch in every district)

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  1,36,078 Post Offices across urban and rural India, activated as banking access
points
 22,251 Head Post Offices and Sub Post Offices across urban and rural India to
deliver banking services
 2 Lacs+ Postmen/GDS to provide Doorstep banking services

Weakness Of India Post Payments Bank

 A considerable amount of investment and manpower to train the IPPB service

providers, i.e. the postmen, is required
 A high service fee on every transaction (Rs. 15-35) might make users averse to
using IPPB services
 Since the IPPB is technically advanced as opposed to other rural service banks –
it will need a lot of time and effort from the GOI to educate the masses on the
usage and the service overall
 The revenue model of IPPB as opposed to other banks – it is solely based on
charging fees on transactions (There is no customer onboarding fee and no
minimum balance requirement). The bank also does not directly provide any
loans (unlike other banks) and therefore, making revenues for IPPB might be
difficult and questionable

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  Already established competition – The IPPB has a very strong network when it
comes to manpower but, there is also a high level of competition from private
players like Fino, Airtel Payments Bank, etc. While these private institutions can
easily and quickly adapt to customer demands, the IPPB will have to depend on
its current model and to make any change in their way of working / policies would
require training from scratch along with huge investments.
 While most of the features of the IPPB make it look like an extremely promising
initiative towards financial inclusion, what now remains to be seen is how the
government addresses these issues and whether the current revenue model is
adequate for IPPB’s sustenance.

Opportunities Of India Post Payments Bank

 Financial inclusion for rural India – further supporting two of the key initiatives by
the GOI – Digital India and ‘Jan Dhan Yojana’.
 Ease of banking with doorstep services all-over the country with the vast PoD
network – giving IPPB an edge over the competition.
 Opportunity to make IPPB one of the biggest banking networks not only in India
but world-over.
 No minimum balance requirement for a saving account with IPPB – thus working
in favour of account holders from rural India, students, housewives etc.
 It could contribute majorly towards a cashless economy and help in reducing
corruption.
 Transparency in banking transactions as all IPPB bank accounts will be linked
with Aadhaar.

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  The IPPB will also help generate more employment opportunities with its
expansion across the country.
 Biometric authentication or the use of QR card for all transactions to maintain
utmost transparency, without having to use any passwords – making it easier for
the customers/users.
 Instant account opening at doorstep OR post-office counters – aimed at making
the entire process hassle-free.
Largest number of touch points across India (with 130000 touch points in rural India
alone).

Threats Of India Post Payments Bank

 The new bank is designed to serve a largely low-income population with little
banking experience, much less experience with mobile or online technology. So
these customers are particularly vulnerable to social engineering.

 "They are most prone to threats, including remote exploits (network-based

attacks), phishing, ransomware and cyber-espionage," says Aditya Khullar,
technical leader-cybersecurity at Paytm, a e-commerce payment system and
digital wallet company. "Malicious users may attempt unauthorized access
through hand-held devices, too."

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  As a result, many security practitioners recommend the bank implement new,
strong authentication methods and develop a security team.

BUSINESS OBJECTIVES
India Post Payments Bank presents banking with a difference which aims to provide simple,
inclusive, convenient and efficient banking system to the nation. IPPB’s economic and premium
technology setup for payment and settlements provides the masses with affordable solutions
delivered to the last mile. You are welcome to be a part of the team which is built to lead the
next revolution of banking and financial literacy.
At IPPB, you are offered an exposure to ever growing payment businesses with an opportunity
to make a difference and serve the unbanked and underbanked populations. This isn’t an
ordinary job. We offer career for nation!
IPPB is a unique project that challenges you to think out of the box, innovate tools and methods
to meet exceptional targets such as financial literacy, less-cash economy and digital payments.
The working environment provides you rich cross functional experience with direct exposure to
peers, partners, vendors and end users to offer 360-degree learning opportunities.

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IPPB offers best in industry compensation and benefits that include comprehensive medical
coverage for your family, leased accommodation, bouquet of allowances and necessary
reimbursement as per scale.

Chapter 2

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 INTRODUCTION (area of internship)
Financial inclusion means that individuals and businesses have access to useful and affordable
financial products and services that meet their needs – transactions, payments, savings, credit
and insurance – delivered in a responsible and sustainable way.
Financial inclusion aims to bring in digital financial solutions for the economically
underprivileged people of the nation. It also intends to bring in mobile banking or financial
services in order to reach the poorest people living in extremely remote areas of the country.
Financial Inclusion is described as the method of offering banking and financial solutions and
services to every individual in the society without any form of discrimination. It primarily aims to
include everybody in the society by giving them basic financial services without looking at a
person’s income or savings. Financial inclusion chiefly focuses on providing reliable financial
solutions to the economically underprivileged sections of the society without having any unfair
treatment. It intends to provide financial solutions without any signs of inequality. It is also

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committed to being transparent while offering financial assistance without any hidden
transactions or costs.
Financial inclusion wants everybody in the society to be involved and participate in financial
management judiciously. There are many poor households in India that do not have any access
to financial services in the country. They are not aware of banks and their functions. Even if they
are aware of banks, many of the poor people do not have the access to get services from
banks.
For several years, only the middle and high classes of the society procured formal types of
credit. Poor people were forced to rely on unorganised and informal forms of credit. Many of
them were uneducated and did not have basic knowledge about finance and hence, they got
cheated by the greedy and rich people of the society. Several poor people have been exploited
for years in the context of financial assistance.

IMPORTANCE OF INTERNSHIP AREA

 Financial inclusion intends to help people secure financial services and products
at economical prices such as deposits, fund transfer services, loans, insurance,
payment services, etc.
 It aims to establish proper financial institutions to cater to the needs of the poor
people. These institutions should have clear-cut regulations and should maintain
high standards that are existent in the financial industry.
 Financial inclusion aims to build and maintain financial sustainability so that the
less fortunate people have a certainty of funds which they struggle to have.
 Financial inclusion also intends to have numerous institutions that offer
affordable financial assistance so that there is sufficient competition so that
clients have a lot of options to choose from. There are traditional banking options
in the market. However, the number of institutions that offer inexpensive financial
products and services is very minimal.

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  Financial inclusion intends to increase awareness about the benefits of financial
services among the economically underprivileged sections of the society.
 The process of financial inclusion works towards creating financial products that
are suitable for the less fortunate people of the society.
 Financial inclusion intends to improve financial literacy and financial awareness
in the nation.
 Financial inclusion aims to bring in digital financial solutions for the economically
underprivileged people of the nation.
 It also intends to bring in mobile banking or financial services in order to reach
the poorest people living in extremely remote areas of the country.
 It aims to provide tailor-made and custom-made financial solutions to poor
people as per their individual financial conditions, household needs, preferences,
and income levels.
 There are many governmental agencies and non-governmental organisations
that are dedicated to bringing in financial inclusion. These agencies are focussed
on improving the access to receiving government-approved documents. Many
poor people are unable to open bank accounts or apply for a loan as they do not
have any identity proof. There are so many people who live in rural areas or tribal
villages who do not have knowledge about documents such as PAN, Aadhaar,
Driver’s License, or Electoral ID. Hence, they cannot avail many of the services
offered by governmental or private institutions. Due to lack of these documents,
they are unable to avail any form of subsidies offered by the government that
they are actually entitled to.

GOALS AND TARGETS

Present the goals:
Building the most accessible, affordable and trusted bank for the common man.

Target:
The target given by the bank is to promote IPPB and its product. We have to open some saving
accounts and sale insurance policies. We aware the customers about IPPB product through
face to face communication and we distribute brochure to the customers.

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 EXPECTED LEARNING FROM THE INTERNSHIP
From the internship training we learn many things like interaction with the customers and other
operational work of the bank. From this we learn how to open bank accounts and how to
convince customers to buy a insurance policy from us.

CHAPTER-3

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 STRATEGY IMPLEMENTATION
 At First we contact with the customer through phone calls and tell them about the new
insurance policies of IPPB. And also tell them all facilities provided by the Bank.
 After that we visit different post office branches and communicate with the customers
face to face and tell them about the facilities given by the our bank. And also we provide
leaflet of the bank to every Customer.
 Then we do some awareness camp, where many people visit and we aware them about
the IPPB product and guide them.

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 FINDINGS
From the internship training we learn many things like interaction with the customers and other
operational work of the bank. From this we learn how to open bank accounts and how to
convince customers to buy a insurance policy from us.

ANALYSIS OF PERFORMANCE

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INTERPRETATION: We visited mostly in rural areas.

INTERPRETATION: We mostly visited in Lankamura Post Office.

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INTERPRETATION: Every customers have savings account.

INTERPRETATION: Most of the customers are using the virtual debit card of the bank.

23
INTERPRETATION: Every customers are using the India Post Payments Bank App.

INTERPRETATION: Most of the customers are interested in Accidental Policy.

24
INTERPRETATION: Mostly there are no problem for withdraw and deposit.

INTERPRETATION: Every customers are satisfied with the services of the IPP Bank.

25
 LIMITATIONS
When I talk to the customers, some of them didn’t listen to me; they didn’t show interest to
listen about the product. Some customers are behave rudely and some of them totally avoid.

CONCLUSION:
The IPPB have various types of insurance policies and products and I have learnt lots of thing
from my internship program in IPPB. I learnt many things about the IPP Bank and how their
system works. I am also improving my communication skills by communicating with the
customers. I have learn so many things, how the IPPB works and achieve their target and I am
glad to be a part of IPPB as a Intern.

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Chapter-3

27
 Annexure
1. Area we visited
 Rural
 Urban
2. Frequency of visited
 Madhuban Post Office
 Banamalipur Post Office
 Guard Post office
 Lankamura Post Office
 Durjaynagar Post Office
3. Which account most of the customer have
 Savings
 Current
4. Percentage of use of Vartual Debit Card
 Yes
 No
5. Percentage of use of IPPB App
 Yes
 No
6. In which policy most of the customers are interested
 Accidental
 Term
 Pension
7. Any problem for withdraw and deposit
 Yes
 No
8. Customer satisfaction
 Good
 Very Good
 Bad
 Very Bad

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 References
 https://www.ippbonline.com/
 https://www.ippbonline.com/web/ippb/details-about-the-bank

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