IPPB Zero Balance SHG Account: India Post Payments Bank has brought out a new zero-balance savings account for Self Help Groups (SHGs). The account is made for small groups, especially women-led groups in villages and small towns.
IPPB says this account is meant to be simple, low-cost, and easy to use for rural groups that do small business work and earn money for their homes. The bank says the account is built for Self Help Groups and rural micro-entrepreneurs, and it comes with a maximum end-of-day balance of ₹2,00,000.
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PPB SHG Savings Account Features and Benefits
1. Zero balance, zero charges account to ensure affordability.
2. Digitally enabled for simplified onboarding.
3. Delivered through the vast network of Post Offices and Postmen/ Gramin Dak Sevaks.
4. No minimum initial deposit requirement.
5. No Monthly Average Balance (MAB) requirement.
6. Maximum balance limit of Rs 2,00,000.
7. Quarterly interest pay-outs as per applicable savings rates.
8. Nil charges for cash deposits and withdrawals.
9. One free physical account statement per month.
10. No account closure charges.
11. No QR card issuance charges.
Who can Open it?
A registered Self Help Group can open this account if it has at least 2 and at most 5 authorised signatories. The group also needs the SHG resolution, the SHG registration certificate or constitution document, PAN of the SHG or Form 97 if PAN is missing, and the list of members.
IPPB says all authorised signatories are onboarded through eKYC. To open the account, the group can go to the nearest IPPB branch or access point, or use doorstep banking support through IPPB’s network.
Charges, Interest and Limits
The account does not ask for any minimum opening deposit and there is no monthly average balance rule. Cash deposits and cash withdrawals are free. The account also gives one free physical monthly statement, a free QR Card, and no account closure charge. For interest, IPPB lists 2% per annum on balances up to ₹1 lakh and 2.25% per annum on balances above ₹1 lakh and up to ₹2 lakh. The interest is paid every quarter. SMS alerts cost ₹0.25 plus GST per SMS, and the bank says the quarterly SMS charge is capped at ₹100 plus GST for customers and ₹50 plus GST for merchants from 1 October 2024.
What the Account Does Not Offer
* Mobile banking access
* Nomination facility
* POSA account linkage
* Standing instructions
* Bill payments or mobile recharges
* Virtual debit card issuance
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IPPB also says it supports group activities like retail and small trading, cattle rearing and dairy, tailoring and handicrafts, zari work and embroidery, artificial jewellery making, and other local micro-enterprises.
There is no need to keep minimum money and no monthly balance rule. Deposits and withdrawals are free. Interest is given every three months, and statements are free. IPPB works in over 5.5 lakh villages and towns, giving simple banking through a digital system in many languages.
