INTERNSHIP PROJECT REPORT

ON
BANKING PRODUCTS AND ITS OPERATIONS
OF
INDIA POST PAYMENTS BANK

SUBMITTED IN PARTIAL FULFILLMENT OF

MASTERS OF BUSINESS ADMINISTRATION
PROGRAMME :2022-23
OF
INSTITUTE OF MANAGEMENT STUDIES,
AHMEDNAGAR.

FACULTY ADVISOR, SUBMITTED BY,

HOD.DR. PRANOTI TELORE POOJA PARDESHI

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 DECLARATION

I hereby declare that the project titled “Banking Products and Its
Operations” is submitted in fulfilment of Masters of Business
Administration, from the Institute of Management Studies,
Ahmednagar in academic year 2022-24 was carried with sincere
intention.
The project period duration was from 3/08/2023 to 3/010/2023.
To the best of my knowledge it is an original piece.

Place: Ahmednagar
Date:

Signature of the Student

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 ACKNOWLEDGEMENT

It is really a matter of pleasure for me to get an opportunity to

thank all the persons who contributed directly or indirectly for the
successful completion of the project report, IPPB Banking Products
and Its Operations.
I wish to express my gratitude to Mr. Amol Bhumkar, Branch
Manager and Mr. Digambar Sonawane, Executive for giving me
opportunity to be a part of their esteem organization and enhance my
knowledge by granting permission to do a Summer Internship Project.
They provided me with their assistance and support whenever
needed, which has been instrumental in completion of this project.
Further I am thankful to them for their support and encouragement
throughout the tenure of the project also I am thankful to my faculty
guide Dr. Pranoti Telore HOD Of Institute of Management Studies,
Ahmednagar for being a source of support during this training period.
Last but not least I am grateful to all the end users, postman,
postal assistance, Sub Divisional Head and Divisional Head of Post
Office for their kind co-operation and help during the course of my
project.

Pooja Sanjay Pardeshi

MBA 2ND YEAR

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CERTIFICATE

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Sr. Page
Contents
No. No.
1. Executive Summary 6

2. Profile of India Post Payments Bank 8-18

3. Tasks Assigned 19-20

4. Relevant Activities 21-37

5. Learnings of the Internee 38-39

6. Contribution to Organization 40-41

7. References 42

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 EXECUTIVE SUMMARY

Payments Bank is a new type of bank that is promoted with

the express purpose of extending the reach of banking to the vast
majority of segments of the population that do not have Banking
Services.
The payment bank promoted by India Post is expected to use
the physical network of post offices, as well as digital platforms such
as mobile, Internet banking, debit cards, point-of-sale devices, etc. to
provide the designated financial services at low cost to the target
population. Payments Bank could provide last mile connectivity,
especially in those areas that do not have commercial bank branches
but that has a post office. Its large presence in rural areas and the
confidence it enjoys among large segments of the population could
allow it to succeed where commercial banks have failed.

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7
Profile of India Post Payments
Bank

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Profile of India Post Payments Bank
Background
The Department of Posts performs the vital function of mails, parcels,
banking, Insurance and a plethora of financial services. It has a retail
network of 1.55 Lakhs Post Offices across India. For the past 10 years,
IT has been introduced at An enterprise level to cover all of the
functional requirements. This resulted in Revenue growth and the
streamlining of business operations. The Department has become
faster and smarter in day-to-day operations, as Well as in decision
making and delivery.

The India Post Payments Bank launched on September 1, 2018, by PM

Modi is a payments bank that aims at making banking services
available at people’s doorstep.
IPPB is a wholly-owned payments bank, a subsidiary of the Indian
postal department, which with 100 per cent Government of India
equity works through a network of post offices and nearly 3 lakh
postmen.
India Post Payments Bank with the vision of building the most
affordable, accessible, and trusted bank for the common man and
driving the agenda of financial inclusion for the under-banked
population will be governed by RBI.
Though the services of Indian Post Payments Bank is for all the citizens
but the primary focus of IPPB is serving the low-income households,
social sector beneficiaries, unorganised sector, migrant labourers,
MSMEs -Micro Small and Medium Enterprises, and Panchayats in rural

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areas also the under-banked and unbanked segments in both the
urban and rural areas.

IPPB offers services through a mix of physical and digital platforms.

Channels used for delivering IPPB services include:

• Doorstep, mobile and internet banking

• Counter operations
• Pre-paid instruments such as Pos MOBILE WALLETS, Mpos, etc.
• ATMs/Micro ATMs

Opportunities Of IPPB
• Currently, there are about 50,000 bank branches in rural India,
while the Department of Post alone has almost 1,30,000 service
points in rural India, which, if converted into points of banking

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 service, can extend the presence of IPPB banking services in rural
India by 3.5 times.
• Coupled with convenient, simple and affordable digital solutions,
IPPB intends to leverage the trust that the public has on India
Post.
• To provide doorstep banking services for 3,00,000 employees of
Indian postal services are provided with biometric and handled
devices.
• IPPB may help increase rural per capita income through domestic
savings by tapping the savings of rural people.
• IPPB will reduce the exploitation of rural people by money
lenders and provide effective financial services.
• The expansion of rural banking services has become difficult as
the mounting pressure of NPAs turned banks towards the over-
burdening task of recovery of credit. IPPB will reduce this
pressure and ease the expansion of banking services.

India Post Payments Bank Services

The IPPB is like any other bank but on much smaller scale. However, it
does not involve any credit risk. Opening up an account in the IPPB can
be simply done through the Indian Post Payments Bank App (IPPB App)
just by providing details like your Aadhar number with KYC verification.
One of the most distinctive features of the India Post Payments Bank
IPPB is its doorstep banking service, which makes it very accessible.
Through this model, banking has the potential to reach the doorstep
of every Indian Citizen.

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IPPB App Services
1. The doorstep banking facility offers a range of services including
account opening, cash deposits and withdrawals, money
transfers, recharge and bill payments, third-party services like
insurance, loans, investments and other account-related
services.
2. The account-related services include updating PAN and
nomination details, requesting account statements, and issuing
standing instructions.
3. The IPPB app will also offer RTGS, IMPS and NEFT services for
the transfer of funds.

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Features Of Indian Post Payments Bank
• The IPPB offers three types of savings accounts: regular, digital
and basic.
• No fee for withdrawals made from IPPB ATM or PNB ATM since
it has a tie-up with Punjab National Bank.
• The bank will offer a 4% interest rate in all the savings accounts.
• It also offers Forex services at lower charges.
• Unlike most banks, there will be no need to maintain a minimum
quarterly average balance.
• No charges for the lack of a minimum account balance.
• The IPPB also offers a QR card service that will help one access
their bank account and make transactions can be authenticated
via biometric verification.
• Indian Post Payments Bank offers a free debit card with an annual
maintenance fee of RS. 100/- from the second year.
• Using a network of post offices, and the services of over 3,00,000
postmen, the IPPB will reach customers without the traditional
bank branches.
• IPPB provides third-party products like loans and insurance
through the other banks or companies that it has tied up with.
• In the absence of traditional bank branches, the IPPB aims to
reach its customers through their mobile phones. That is why it
has the chance to flourish among people who are tech-savvy and
comfortable with technology.
• The IPPB will encourage anyone above 18 years of age to open
digital savings accounts, using their Aadhar and PAN cards. The
KYC formalities for such accounts must be completed within 12
months.

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 • Once the KYC formalities are done, the digital savings account
will be upgraded to a regular savings account. As far as deposits
are concerned, customers are allowed a maximum yearly
cumulative deposit of 2,00,000/- Rs. In the account.
• Post offices have also been permitted to link the 17 crore Postal
Savings Accounts with the IPPB accounts. The India Post
Payments Bank (IPPB) will benefit those sections of society that
remain outside the banking sector like migrant labourers and
low-income households.
• With the Government allocating additional funds to meet the
requirements of the operations of the IPPB, it is looking to
compete with Private Payment Banks.

IPPB Challenges
1. Considering the vastness of the India Post Payments Bank (IPPB),
there are bound to be some challenges that it will face, and these
are not mere teething troubles. Burdened with the legacy of the
India Post, the IPPB would take some tome before it can
showcase its fullest capabilities. In the financial year of 2016-17,
India Post had a revenue deficit of Rs. 11,969/- crores. In the
financial year 2015-16, India Post had a revenue deficit of
Rs.6,007/- crores. Thus the revenue deficit in 2016-17 was
almost double that of the financial year 2015-16.
2. As per RBI rules, all payments banks are required to invest 75%
of their total demand deposits in Government-linked securities
and treasury bills, making it difficult for IPPB to turn a profit.
3. Another challenge is the lack of tech-infrastructure in the
country’s remotest rural areas. However, the Government is

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 confident that it will be able to overcome these hurdles and that
the IPPB will be a successful venture.
4. The launch of the IPPB has marked a tectonic shift in India’s
banking landscape opening doors of rural India to endless
possibilities in the banking sector. However, the mammoth
government initiatives does have some hurdles that need to be
a crossed and which seem to be more than mere teething
troubles.
5. Another major challenge facing the India Post Payments Bank
(IPPB) is its infrastructure. The biggest being in remote rural
areas. With the plan of making the postman a mobile bank, it
seems difficult in areas where electricity and internet
connectivity are an issue. With 90% of the post offices situated
in rural areas, this is a challenge that may need urgent attention.
6. One would also need to ensure adequate training for the staff.
There are frequent power failures in rural areas, thus to run all
these services in a seamless manner and without any disruption,
proper infrastructure and facilities are required.
7. Further, the Department of Posts is facing a lack of manpower as
well. There is a shortage of manpower to the tune of 40%.
8. The IPPB activities will also be run through postmen, but there is
an acute shortage in postmen staff. Thus, all postmen should be
filled up.
However, the postal department is taking several steps to raise their
earnings by providing services like selling application forms of
educational institutions and recruitment agencies, railway ticket
booking, facilities for Aadhar registration and upgradation, passport
services, Gold Bond Schemes, etc. Shifting to e-commerce is also

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providing an added push, raising the revenue earned to 345 crore
rupees in 2016 from 172 crore rupees in 2014-15.
For the success of IPPB , rural infrastructure has to be strengthened.
The dependence on the postman which is one of the biggest
advantages of the IPPB is also its biggest challenge, as along with the
post, he will have an added responsibility. The government is saying
that it is providing all training and equipment to the India Post
employees to beat all the odds to make this ambitious initiative a
resounding success.
Post Independence, the Department of Posts had a huge responsibility
of connecting every corner of the country. In order to keep up with the
pace of an advancing population, and it’s increasing needs, the
government has over the years, taken several steps to enhance the
postal network and skills of the department.

PRODUCTS AND SERVICES

• Postal & Logistics: It includes Induction and Booking; Sorting
and Planning; Transmission and Logistics and Delivery and
Distribution Handling of parcels, Mails and Logistics.

• Banking: An integrated banking and financial services such as

Post Office Savings Bank Account, Recurring Deposit (RD), Term
Deposit (TD), Monthly Income Scheme (MIS), Public Provident Fund
(PPF), NSC,KVP Certificates and Sukanya Samriddhi Account.

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• Insurance: Providing Insurance services through Postal and Life
Insurance solutions for service class urban citizens and all rural
citizens.

• Retails, E-Commerce Services & Digital Services: This includes

the sale of philatelic items, Counter Services as retail sales aggregator,
E-post for digital delivery, an E-Commerce portal for retail sales.

The Department of Posts now envisages a prominent role in

Government delivery, both in logistics and Financial Inclusion.
Secondly, to navigate the new digital era, the ability to both modernize
existing IT and integrate new technology is essential.
With that in mind, the Department has started an ambitious Digital
Transformation with a holistic view that aims to continue applications,
intelligent platforms, and interconnected ecosystems. The new set of
core values is aligned to overall business goals. The strategic roadmap
has been prepared to utilize the 4Ps (People, Process, Policy, and
Platform).

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Vision & Mission
IPPB’s Vision
Building the most accessible, affordable and trusted bank for the
common man.

IPPB’s Mission
Spearheading financial inclusion by removing barriers and reducing
costs for accessing banking services.

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Task 1
➢ To Operate Micro-ATM Application
A. E-KYC Account opening in Micro-ATM
B. Merchant Account opening (Merchant on boarding)
C. Add beneficiary with IPPB
D. Account Services
E. Linking POSB Account to IPPB Account

Task 2
➢ Financial Transactions:
A. Cash Deposit
B. Cash Withdrawal
C. Funds transfer
D. Balance enquiry and mini-statement

Task 3
➢ To Verify Business Correspondent Applications, by checking all
the necessary documents are attached to the application forms,
and filing them properly.

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Relevant Activities

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Relevant Activities
Task 1
➢Micro-ATM
Micro-ATM is an Android based application developed to run on
handheld device such as Tab/ Smartphones with bio metric
capability. This application is for User to support customers in
doing banking transactions. This will enable field Users to
provide services such as customer on boarding, e-KYC based
financial transactions such as Cash Deposit, Cash Withdrawals,
Bill payments, Remittances and Non-financial transactions such
as Balance enquiry, Account management, Beneficiaries and
Standing Instructions.

➢ Operating Micro-ATM Application

A. E-KYC Account Opening in Micro-ATM
By using this facility, helping users to open an account for a
customer
1. After of the user with user id and password, system will
display the Dash board.
2. In the Dash board click “Open New Account”
3. Enter the Mobile Number, select Product of the
customer
4. Enter DOP account number, pan number if exists. And
click on Verify

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5. System will show the Aadhar QR Code, or enter and Re-
enter Aadhar Number and tick the I accept terms and
conditions and press continue

6. OTP will be sent to customers mobile number and enter

OTP and click to Submit
7. Provide the customer’s fingerprint for authentication
and EKYC would be done and customer basic details
would be fetched from UIDAI

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8. Click on personal details
9. System will populate the customer information from
Aadhar, Photos of the customer will be picked from the
Aadhar.
10. Enter the customer mother’s Maiden Name, Father
Name, Spouse Name, Mother’s Name and Email id
11. After entering all the details click on Save

12. Click on pan and communication address, after filling

the details click on Save
13. Click on Add Nominee details, Enter Nominee details,
after filling Nominee details click on Save
14. Click on Additional Information, Enter the additional
details Click on Save
15. Click on account information, enter account details
Click on Save
16. After filling all the sections Verify all the details,

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17. Click on Confirm
18. Once again provide the customer’s fingerprint for
creating account
19. After successful verification account would be
created successfully

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B. Merchant Account Opening of Merchant Account
(Merchant on Boarding)
1) While opening the account, Select Current Account
instead of Regular Saving in Product Name, the rest of
the procedure is done as usual.
2) After opening Current Account fill Specimen Signature
Card is filled and signed by the account holder.
3) After that download the “IPPB Merchant App” from
Google Play Store on the Android Phone of the
concerned account holder. It usually Take 24 hours for
the account to become active.
4) After the account is activated, click on New User
Activation on the main screen of the above IPPB
Merchant App, then click on the Agreement Click on
‘Agree’
5) Then enter the mobile number with which the account
was opened in the User ID and click on the submit
button, then enter the OTP that will appear, then a
screen will appear to set the password. A number and a
special symbol should be in uppercase.
6) After setting the password come to the main screen and
click on Login, enter the mobile number in the User ID
and enter the password and LOGIN.
7) After that, click on the QR Code that appears next to the
account holder’s name on the screen that appears.
After that two QR Codes appear 1. Static 2. Dynamic by
downloading the static QR codes. Share the above code
along with the name of the account holder and the
name of the shop on IPPB’S group.

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 8) Then demonstrates 2-3 digital transactions to the
concerned merchant.
C. Add Beneficiary with IPPB
Using this facility user can add beneficiary (Within IPPB) for
customer. In the dash board click on Pay/Send money. Enter
customer ID/mobile number/Aadhar number and proceed with
customer authentication. After successful customer
authentication. Click on Manage beneficiary then click on Add
New Beneficiary.
1. In the Dash Board Select Service Request
2. Enter customer ID/mobile number/Aadhar number and
proceed with customer authentication
3. After successful authentication, click on Add new beneficiary
4. In beneficiary type Click on IPPB Accounts
5. In the beneficiary detail screen Enter beneficiary name,
Account Number, enter account number again and click on
Continue.
6. Beneficiary will be added.

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D. Account Services
Using this facility, the user can do the account services for
customer like update nominee, update Pan, Aadhar seeding,
Update address and Update Mobile Number and Email address
of the customer
1. User Dash Board select option Service Request
2. Scan Customer Aadhar Number or QR Card
3. Customer ID will be displayed by the system and press
Search
4. Provide fingerprint of the customer for authentication
5. Select the service request as Account Services

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E. Linking POSB Account to IPPB Account
1. Click on the ‘Service Request’ button below on the main
screen.
2. Then select one of the options Account Number, Aadhar
Number or Mobile Number and fill the correct information
as per the selected option and click on the ‘Search’ button
(or ‘Scan QR’ on the QR card given to the account holder)
Account of the account holder can also be searched by
scanning.
3. Select the account number of the respective account holder
(if the account is searched with the mobile number, as many
accounts as the number of accounts opened on that mobile
number will be displayed, select the correct account of the
respective account holder, if other options are selected
instead of the mobile number, the next screen will appear for
‘One Time Password’.
4. Select ‘One Time Password’ from three options on the next
screen
5. Then on the next screen check the identity of the account
holder and confirm that the account holder is the same and
click “Confirm button”
6. Then enter Six Digit OTP received on the customer’s mobile.
7. Then on the next screen you will see the name of the
account holder, make sure it is correct then click on the
‘Account Services’ button
8. On the next screen click on the ‘Manage POSB Account’
button then on the next, Enter POSB account number &
POSB CIF (customer id) on the screen and click on the

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 Continue button. Click confirm again to make sure the
information you have entered is correct
9. Select OTP option from the three options that appear on the
next screen.
10. Once again ensure that the account holder is the same
and click on the “confirm” button.
11. Then enter the Six Digit OTP received on the customers
mobile.
12. After that “POSB Account Linked Successfully” will appear
on the screen and the same message will Sent to the
respective customer’s mobile.

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Task 2
➢Financial Transaction
The User can do financial transactions for a IPPB customer like
Cash Deposit, Cash Withdrawal, NEFT, RTGS, IMPS, AEPS, Bill
Payments and Recharge.
1) Cash Deposit
i. In the Dash Board Select Cash Transaction.
ii. Enter the customer ID/ mobile number/Aadhar number and
proceed with customer authentication
iii. After successful authentication. Click Cash Deposit
iv. Account information will be automatically populated by
customer authentication.
v. Enter deposit amount Press Deposit
vi. Current transaction Completed.

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2) Cash Withdrawal
After successful customer authentication,
i. In the Dash Board Select Cash Withdrawal
ii. Enter customer ID/mobile number/Aadhar number and
proceed with customer authentication. Click Cash
Withdrawal
iii. Account information will be automatically populated by
customer authentication.
iv. Enter withdrawal amount press Withdraw.
v. Customer transaction is Completed.

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3) Balance Enquiry
Using this facility User would be able to do balance enquiry
for the selected customer account.
i. In Dash Board click balance Enquiry, after successful
customer authentication. List of account are
displayed.
ii. Select account. Click on View Balance. If user requests
for a receipt User should print receipt and hand over
to the customer.

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Task 3
➢Business Correspondent
Business Correspondent are bank representatives. They help
villagers to open bank accounts. Business Correspondent gets
commission from bank for every new account opening, every
transaction made via them, every loan-application processed
etc. The Business Correspondent carries a mobile device and
helps villagers in banking transactions. (Deposit money, take
money out of savings account, loans etc.) The villager gives his
thumb impression or electronic signature and gets the money.

➢Verifying Business Correspondent Application

Forms
While verifying Business Correspondent application
forms there is necessary to understand that which type of
documents are required while submitting BC Applications.

While submitting BC Applications, keep sequence of

documents in order mentioned as below.
1. Checklist
2. Fully Filled BC Application Form (Both Pages)
3. KYC Documents (Aadhar & PAN Mandatory)
4. Educational Documents (Any one, prefer highest education)
5. Entity Proof (Shop Act, CSC Certificate, Udyam on individual
name, etc)
6. Rent Agreement (if applicable)
7. IIBF Certificate (if any)
8. Income Certificate (if available)
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9. If any other supplementary document
10. Police Verification (Acknowledgement of PV application will
also work)
11. Annexure 3 (Both Pages)
12. Annexure 4
13. Annexure 5
14. Annexure 14
15. Account Statement
16. Photo

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38
 Learnings of the Internee
Task 1
Working with one of the leading Payments Bank of India was a
great learning experience for me. I was used to sit at the customer
service desk and help customer service representative of the branch.
While helping them I experienced day to day operations like opening
EKYC Accounts of more than 50 Accounts, Merchant on Boarding,
adding beneficiary in customer account with IPPB, Account services
like updating Nominee, Updating Pan, Updating Mobile number, Adhar
seeding to get subsidy with IPPB, etc. things I learned in it.

Task 2
In this task, I learned about all the financial transactions like Cash
Deposit, Cash Withdrawal, NEFT, RTGS, Balance Enquiry, etc. Most
important task is to handle customer grievances as per the bank’s
process to their satisfaction.

Task 3
While Verifying Business Correspondent Applications, I learned
what is business correspondent, what documents should be necessary
to attach in BC Application form, what process should be followed by
bank to appoint a Business Correspondent.

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Contribution to the
Organization

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 Contribution to the Organization

Sr. Contribution to
Task
No Organization
1. EKYC Accounts Opening 50 EKYC Accounts

2. Merchant On Boarding 5 Accounts

3. Account Services like Provide Maximum 35-40

Updating Nominee, Updating Account Services
Pan, Aadhar Seeding,
Updating Mobile Number and
Address, etc.
4. Financial Transactions like Done Maximum 30
Cash Deposits, Cash Financial Transactions
Withdrawals, Balance Enquiry
5. Verification of Business Verify 20 Application forms
Correspondence Application
forms

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 References

1. https://ippbonline.com/web/ippb/about-us1
2. https://www.dnaindia.com/business/photo-gallery-india-post-
payments-bank-launched-some-important-facts-about-ippb-
2657993
3. https://www.businesstoday.in/sectors/banks/india-post-
payments-bank-launch-banking-services-pm-narendra-
modi/story/281868.html
4. https://www.livemint.com/Industry/0ZCVVXLyO8E9W3DPLodsq
K/India-Post-Payments-Bank-launch-tomorrow-10-things-to-
know.html

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