India Posts Payment Banks launches zero-balance SHG savings account with Rs 2 lakh limit

New Delhi: India Post Payments Bank (IPPB), an entity under the Department of Posts, on Thursday launched a zero-balance Self Help Group (SHG) savings account with a maximum balance limit of Rs 2 lakh, aimed at strengthening financial inclusion and empowering women-led SHGs in rural India.

The government said that the initiative has been designed to provide a simple, accessible and cost-effective banking solution for Self Help Groups, which play a key role in driving rural economic activity and are closely linked to government livelihood programmes such as the National Rural Livelihoods Mission.

Speaking on the launch, IPPB Managing Director and CEO R Viswesvaran said the SHG savings account is a step towards making banking more inclusive and accessible at the grassroots level.

“At IPPB, our mission is to make banking simple, accessible and inclusive for every Indian. The SHG Savings Account is a step forward in empowering women-led SHGs by providing them with a reliable and cost-effective banking solution,” he said.

He added that leveraging IPPB’s doorstep banking model and digital infrastructure will help SHGs participate more actively in the formal financial ecosystem.

The SHG savings account comes with a ‘zero minimum balance’ requirement and no monthly average balance condition, along with nil charges for cash deposits and withdrawals.

It also offers quarterly interest payouts, no account closure charges, and free monthly statements.

The account is digitally enabled for simplified onboarding and is delivered through India Post’s extensive network of post offices, postmen and Gramin Dak Sevaks, enabling banking services at the doorstep.

IPPB said the maximum balance limit under the account has been set at Rs 2 lakh, making it suitable for SHG-level financial operations while ensuring regulatory compliance.

The bank — which leverages the postal network of around 1.65 lakh post offices and over 3 lakh postal employees — said the initiative aligns with its broader mandate of reaching the unbanked and underbanked population.

Moreover, IPPB currently serves customers across more than 5.5 lakh villages and towns, offering paperless, cashless and presence-less banking through its technology-driven platform available in multiple languages.

IANS