INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
Page 993
www.rsisinternational.org
Roles and Performance of India Post Payment Bank (IPPB) With
Special References to Shivamogga District
Dr. Nagaveni CM, Mrs. Mahalakshmi BA
Department Of PG studies and Research in Commerce Kuvempu University Shankaragatta, India
DOI: https://doi.org/10.51244/IJRSI.2025.120800084
Received: 01 Aug 2025; Accepted: 13 Aug 2025; Published: 06 September 2025
ABSTRACT
The IPPB was established to fill this service gap by leveraging the existing postal network and infrastructure to
offer banking solutions that are accessible, convenient, and affordable. While the institution aims to provide a
multitude of services, including savings and current accounts, money transfer, Direct Benefit Transfers
(DBTs), bill and utility payments, and enterprise solutions, the true success of IPPB is contingent upon the
awareness levels among its potential and existing customer base. Despite the commendable objectives and the
robust infrastructure, there has been limited research on how aware the public is about the services offered by
IPPB. This is particularly critical given the bank’s target audience includes not just urban resident’s familiar
with banking paradigms but also rural households that have traditionally been excluded from formal financial
systems. Insufficient awareness can result in low adoption rates, under-utilization of services, and ultimately,
may defeat the overarching aim of financial inclusion that IPPB is intended to achieve.
Key words: IPPB, Role of Indian post payment bank.
INTRODUCTION
The India Post Payments Bank (IPPB) is an initiative launched to foster financial inclusion and deliver banking
and financial services to every doorstep in India through the vast network of India Post. Conceived as a public
sector entity under the Department of Posts, IPPB aims to extend formal banking services to both urban and
rural households. Although India has witnessed in digital banking solutions, the need for financial services that
can cater to a diverse population, including those who are underserved or completely unbanked, remains
unfulfilled.
At India post payment Bank, we believe that a nation can only grow every citizen get an opportunity to
prosper, regardless of life. With simple, diverse and growth-oriented offerings, IPPB aim to give every Indian
access to efficient banking services. Incorporated as a public Section bank under the Department of Posts with
100 % GOI equity, IPPB has launched on January 30th 2017 in Ranchi and Raipur with the objective being
present in all corners of India by the end of the year.For now, IPPB is offering Savings account along with up
to a balance of Rs 1 lakh, digitally enabled payment and remittance service of all kinds between individual. In
due course, IPPB also provide current account and access to third party financial service.
Need for the study
India post payment bank plays a crucial role in financial inclusion and providing banking services to remote
and providing banking services to remote andunderserved areas in India. Understanding how India post
payment bank operates, its impact on the banking sector and its effectiveness in reaching the unbanked
population can provide valuable insights for policymakers and stakeholder. By analysing its performance, one
can assess the bank’s contribution to financial empowerment and Economic development.
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
Page 994
www.rsisinternational.org
Statement of the problem
Indian post payment Bank (IPPB) was established to enhance financial inclusion by leveraging India’s
extensive postal network. However, IPPB faces significant challenges, inefficiencies, and intense competition
from other financial service providers. These issues hinder its ability to effectively fulfil its mission. This paper
aims to identify and analyze these challenges, evaluate the bank’s performance, and propose solution to
improve its effectiveness and impact on financial inclusion in India.
Objective of study
To study services offered by IPPB.
To study prospective challenges by India post payment bank.
To analysis customer satisfaction on financial inclusion activities carried on by India post.
REVIEW OF LITERATURE
K. Babysaranya1andR.Hamsalakshmi (2018) in their article “Performance of Indian Post Office Saving
Schemes in Recent Trends‖ suggested that, there is an explosion in growth of middle-class families due to
double income group families and increase in number o fworking women, hence this group willplay vital role
in the investment market. Efforts should be made to attract the women investors by providing right information
and knowledge about the post office saving schemes through advertisements.
Ms.Gayatri Narayan Nayak (2018) in their article, An Analytical Study Of Customer Satisfaction In Indian
Post Payment Bank (With References To Thane District)‖ state that, Indian post office one was spreads all over
India in facilitating rural people in Small savings and postal services., The payment bank which targeting the
middle class ,migrant labourer, small workers ,NRIs of West Asia brought under seamless and hassle free
cashless transactions. Offering debit card and ATM card facilities which are lacking rural sector it moving
towards cash less economy. Reduce the dependency on Because of commercial banks Indian posts got an
opportunity. It can be game changer in transform the rural economy.
Afsana Sultana (2020)in their article Role of Indian Postal Service Sector in Financial Inclusion with Special
Consideration to India Post Payments Bank (Ippb) concluded that, India post has been playing a very
important role in financial inclusion with its given network and reach especially in the rural areas. It has
adopted various reform measures for innovation and technological upgradation in the country. IPPB
established by the Department of Posts has the potential to be the most accessible banking network in the
country. With a combination of postal and banking services, IPPB is set to be the face of transformation of
postoffices and one of the major drivers in inclusion initiative of the Government of India.
RESEARCH METHODOLOGY
Data Collection
The focus of the research is to study the effect of social media use by consumers towards brand choice. Data
for study were collected through the primary and secondary sources.
Primary Data: Semi-structured interviews will be conducted with 50 participants who actively use India Post
Payment Bank. The interviews will focus on understanding the factors about Roles and Performance of India
Post Payment Bank
Secondary Data: Secondary data for the research has been collected from various books, theses, dissertation,
and journals, including e-journals
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
Page 995
www.rsisinternational.org
Scope of the study
The scope of this study is restricted to the general attitude of people towards India post payment bank various
schemes. The area of the study has been confined to Shivamogga district. The present work has been carried
out to study the core activities and the diversifying activities carried on by the Indian Post. The study focuses
the capability of India Post as Post Bank, and it can provide all the banking activities which are provided by
the commercial banks.
Limitations of the study
The result of the study is based upon the information given by the respondents.
The study is confined to customers of India post payment bank Shivamogga district, Karnataka, India.
Result and Discussion
A survey through structure questionnaire is conducted in Shivamogga district. Data was collected from India
post payment bank customers/users. The survey has been successfully carried out and respondents gave good
and realistic answers to the question. Collected data are analyzed for a sample size of 50 respondents. In this
study, data analysis process is carried out in primary data collection bases.
Table No.01 Classification of respondents on the basis of Age
Age Frequency Percentage
Less than 25 yrs. 18 36
26-35Yrs 13 26
36-55Yrs 11 22
Above 56 yrs. 8 16
Total 50 100
Source: Survey output
The above Table no1 shows that out of 50 respondents, 36% of the respondent are less than 25years age,
26%of the respondents are 26-35years, 22% of the respondents are 36-55 years, and remaining 16% of the
respondents are above the 56years. Here it is interpreted that, Majority of respondents come under the age
group of less than 25years of age (36%), Because now a day‘s youths are having plans about future savings.
Table No. 02 Classification of Respondents on the basis Area of Residence
Place of Residence Frequency Percentage
Rural 30 60
Semi-urban 12 24
Urban 8 16
Total 50 100
Source: Survey output
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
Page 996
www.rsisinternational.org
The above Table no 2 shows that out of 50respondents, 60% of the respondents are Rural, 16% of the
respondents are Urban, reaming24% of the respondents are Semi-urban. Here it is interpreted that, Majority of
respondents come under rural area of the residence (60%). Because convenience, user friendly & doorstep
service.
Table No. 03 Classification of Respondents on the basis of Gender
Gender Frequency Percentage
Male 20 40
Female 30 60
Total 50 100
Source: Survey output
The above Table no. 03 shows that out of 50 respondents, 60% of the respondents are Female and 40% of the
respondent are Male. Here it is interpreted that, Majority of respondents are female (30), it is showing the
female are most interest to invest in India post payment bank various scheme because female are more
concentrate on savings in bank.
Table No. 04 Classification of Respondents on the basis of Education Qualification
Education Qualification Frequency Percentage
Illiterate 5 10
SSLC 7 14
PUC 10 20
Graduate 12 24
Post Graduate 16 32
Total 50 100
Source: Survey outputs
The above Table no. 04 shows that out of 50 respondents,32% of the respondents are post graduates, 24% of
the respondents are Graduate, 14% of the respondents are SSLC, 20% of the respondents are PUC and
remaining 10% of the respondent illiterate.Here it is interpreted that, Majority of respondents are Post graduate
(32%). Because they have more knowledge about India post payment bank and Investments, Remaining
Graduate is also known but if other respondents less responsible given.
Table No. 05 Classification of respondents on the basis of Monthly Income
Monthly Income Frequency Percentage
Below – 10000 22 44
10000-20000 07 14
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
Page 997
www.rsisinternational.org
20000-30000 09 18
Above 30000 12 24
Total 50 100
Source: Survey output
The above Table no.05 shows that out of 50 respondents, 44% of the respondents are below ₹10000, 24% of
the respondents are above ₹30000,14%oftherespondentsare₹10000-₹20000,and remaining18% of the
respondents are ₹20000-₹30000. Here it is interpreted that, Majority of respondents are below ₹10000 (44%).
The Saving individuals depends on their earnings.
Table No.06 Classification of respondent on the basis of used post payment Bank (IPPB) service?
Particulars Frequency Percentage
Yes 32 64
No 18 36
Total 50 100
Source: Survey output
The above Tableshows that out of 50 respondents, 64% of the respondents are used India post payment bank &
remaining 36% of the respondents are Not used India post payment bank.Here interpret that, the majority of
the Respondent are used the India post payment bank (IPPB) service (64%). Because low/zero balance
accounts, minimal fees.
Table No. 07 classification of respondent on the basis of post office schemes are you currently invested in?
Particulars Frequency Percentage
Post office savings Account 20 40
Post office recurring deposit Account 06 12
Post office time deposit Account 06 12
National Savings Certificates (NSC) 04 08
Public Provident Fund (PPF) 04 08
KisanVikas Patra (KVP) 02 04
Sukanya Samriddhi Account (SSA) 08 16
Total 50 100
(Source:Survey output)
The above Table no 07 shows that out of 50 respondents, 40% of the respondents are currently invested
scheme is Post office savings account, 16% of the respondent are sukanya Samriddhi account (SSA). 12% of
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
Page 998
www.rsisinternational.org
the respondents are Post office recurring deposit account, 12% of the respondents are Post office time deposit
account, 08% respondents are of national certificate (NSC), and remaining 08% of the respondents are of
Kisan Vikas Patra (KVP). Here it is interpreted that, Majority of respondents are currently invested in post
office saving scheme (40%). Because low minimum investments make it easy for respondents to start saving.
Table No.08 Purpose services have you used on the IPPB APP?
Purpose of used Frequency Percentage
Fund Transfer 16 32
Bill Payment & Recharge 09 18
Balance Inquiry 08 16
Transaction History 11 22
Saving account Management 06 12
Total 50 100
Source: Survey output
The above Table no. 08 shows that out of 50 respondents, 32% of the respondents are used IPPB App for the
purpose of fund transfer, 18% of the respondents are used bill payment and recharge, 16% of the respondents
are used for Balance inquiry, 22%of the respondents are used transaction history, and remaining 12% of
respondents are used because of saving account management. Here it is clearly indicate that majority of
respondent used app for the purpose of Fund transfer (32%) because it is faster, easy and convenient to transfer
the fund.
Table No. 09 Customer’s opinion towards India Post Payments Bank
Sl. no Opinion Strongl
y
Agree
Agree Neutral Disagree Strongly
Disagree
F (%
)
F (%) F (%) F (%) F (%)
1 Opening an account in IPPB is
easy
3
6
72 4
2
84 1
0
20 0
6
12 0
6
12
2 Online Payment in IPPB is
convenient
1
0
20 4
6
92 1
2
24 0
8
16 0
8
16
3 QR payment is convenient 1
2
24 4
0
80 0
8
16 1
0
20 1
0
20
4 SMS Banking is convenient 1
8
36 4
0
80 1
4
28 0
7
14 0
7
14
5 Doorsteps Banking is easily 1 20 4 84 1 30 0 14 0 14
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
Page 999
www.rsisinternational.org
Accessible in IPPB 0 2 5 7 7
6 Interest rate of IPPB is
sufficient
1
2
24 4
1
82 1
2
24 0
5
10 0
5
10
7 Are you satisfied with IPPB 1
0
20 4
8
96 2
2
44 0
4
08 0
4
08
Source: Survey output (F=Frequency (no of respondent)
From the above table no. 09 shows that statements regarding Customer opinion towards India post payment
bank.
Opening an account in IPPB is easy” from the above table shows that out of 50 respondents,84% of the
respondents are Agree, 72% of the respondents are Strongly Agree,20 % of the respondents are Neutral, 12%
of the respondents are Disagree,12% of the respondents Strongly Disagree the statement. It indicates that the
majority of the respondents are Agree the statements
Online Payment in IPPB is convenient” from the above table shows that out of 50 respondents, 92% of the
respondents are Agree, 20% of the respondents are StronglyAgree, 24% of the respondents are Neutral,16% of
the respondents are Disagree, 16% of the respondents Strongly Disagree the statement. It indicates that the
majority of the respondents are Agree the statement
“QR payment is convenient” from the above table shows that out of 50 respondents, 80% of the respondents
are Agree, 16% of the respondents are Neutral, 24% of the respondents are strongly Disagree, 14% of the
respondentsDisagree, 14% of the respondents are Strongly Agree thestatement. It indicates that the majority of
the respondents are Agree the statement
SMS Banking is convenient” from the above table shows that out of 50 respondents, 80% of the respondents
are Agree, 36% of the respondents are Strongly Agree, 28% of the respondents are Neutral, 14% of the
respondents are Disagree, 14% of the respondents Strongly Disagree the statement. It indicates that the
majority of the respondents are Agree the statement
“Doorsteps Banking is easily accessible in IPPB” from the above table shows that out of 50 respondents, 84%
of the respondents are Agree, 30% of the respondents are Neutral, 20% of the respondents are Strongly Agree,
14% of the respondents are Disagree, 14% of the respondents Strongly Disagree the statement. It indicates that
the majority of the respondents are Agree the statement
“Interest rate of IPPB is sufficient” from the above table shows that out of 50 respondents, 82% of the
respondents are Agree, 24% of the respondents are Strongly Agree, 24% of the respondents are Neutral, 10%
of the respondents are Disagree, 10% of the respondents Strongly Disagree the statement. It indicates that the
majority of the respondents are Agree the statement.
Are you satisfied with IPPB” from the above table shows that out of 50 respondents, 96% of the respondents
are Agree, 20% of the respondents are Strongly Agree,44% of the respondents are Neutral, 08% of the
respondents are Disagree, 08% of the respondents Strongly Disagree the statement. It indicates that the
majority of the respondents are Agree the statement.
Table No.s10customer satisfaction towards IPPB
SL.
No
Statement Highly
Satisfied
Satisfied Neutral Dissatisfied
Highly
dissatisfied
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
Page 1000
www.rsisinternational.org
F (%
)
F (%) F (%) F (%
)
F (%)
1 Do you India post payment bank
is better than other payment bank
24 48 48 96 20 40 4 8 4 8
2 The payment bank provides fast
and satisfactory services
16 32 47 94 18 36 10 20 2 4
3 India post payment bank is safer
& trustworthy
26 52 44 88 38 76 2 4 2 4
4 Do you feel that a user-friendly e-
payment system of India post
payment bank will influence me
to adopt the system
22 44 42 84 26 52 8 16 4 8
5 Are you easy to make payment
and transfer money in India Post
Payment Bank
20 40 40 80 27 54
8 16 8 16
6 How satisfied you experience
using digital banking services
provide by IPPB
22 44 47 94 18 36 8 16 8 16
Source: Survey output F=Frequency (no of respondent)
From the above table no.10 shows that statements regarding customer satisfaction towards India post payment
services
“Do you India post payment bank is better than other payment bank” from the above table shows that out of 50
respondents, 96% of the respondents are Satisfied, 48% of the respondents are Highly Satisfied, 240of the
respondents are Neutral, 8% of the respondents are Dissatisfied, 8% of the respondents Highly Dissatisfied the
statement. It indicates that the majority of the respondents are Satisfied the statement.
“The payment bank provides fast and satisfactory services” from the above table shows that out of 50
respondents, 94% of the respondents are Satisfied, 36% of the respondents are Neutral, 32% of the respondents
are Highly Satisfied, 20% of the respondents are Dissatisfied, 4% of the respondents Highly Dissatisfied the
statement. It indicates that the majority of the respondents are Satisfied the statement.
“India post payment bank are safer & trustworthy” from the above table shows that out of 50 respondents, 88%
of the respondents are Satisfied, 52% of the respondents are Highly Satisfied, 76% of the respondents are
Neutral, 4% of the respondents are Dissatisfied, 4% of the respondents Highly Dissatisfied the statement. It
indicates that the majority of the respondents are Satisfied the statement.
“Do you feel that a user-friendly e-payment system of India post payment bank will influence me to adopt the
system” from the above table shows that out of 50 respondents, 84% of the respondents are Satisfied, 52% of
the respondents are Neutral, 44% of the respondents are Highly Satisfied, 16% of the respondents are
Dissatisfied, 08% of the respondents Highly Dissatisfied the statement. It indicates that the majority of the
respondents are Satisfied the statement.
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
Page 1001
www.rsisinternational.org
Are you easy to make payment and transfer money in India Post Payment Bank ―from the above table shows
that out of 50 respondents 80% of the respondents are Satisfied, 54% of the respondents are Neutral, 40% of
the respondents are Highly Satisfied, 16% of the respondents are Dissatisfied, 16% of the respondents Highly
Dissatisfied the statement. It indicates that the majority of the respondents are Satisfied the statement.
“How satisfied you experience using digital banking services provide by IPPB” from the above table shows
that out of 50 respondents, 94% of the respondents are Satisfied, 44% of the respondents are Highly Satisfied,
36% of the respondents are Neutral, 16% of the respondents are Dissatisfied, 16%of the respondents Highly
Dissatisfied the statement. It indicates that the majority of the respondents are Satisfied the statement
FINDINGS
1. The majority of respondents come under the age group of less than 25years of age (36%).
2. The survey shows that majority of respondents come under rural area of the residence (60%).
3. The survey shows that the most of respondents education qualification is Post graduate (32%).
4. The survey shows that majority of respondent‘s monthly income is below ₹10000 (44%).
5. Majority of respondents are currently invested in post office saving scheme (40%).
6. The Maximum number of respondent used app for the purpose of Fund transfer (32%)
7. QR payment is convenient that statements the Most of the respondents are Agree (80%)
8. Satisfied their experience using digital banking services provide by IPPB this statement Most of the
respondents are satisfied (94%)
SUGGESTIONS
Simplify the account opening process, reduce waiting time and improve overall customer experiences
IPPB has to introduce affordable loan schemes for small businesses, formers and individuals to support the
economic growth.
IPPB is running biggest financial literacy awareness program in India. IPPB is educating rural population
about insurance, savings, investments etc. Behavioural barriers and lack of technological literacy can be
overcome by spreading awareness among general public.
Different age groups have different awareness levels and possibly different media consumption habits.
Customizing the mode of delivery for each demographic can be effective. For example, digital ads can target
younger individuals, while traditional media like newspapers could be effective for older age groups.
CONCLUSION
India Post Payments Bank (IPPB) has emerged as a vital player in India‘s financial inclusion agenda, targeting
rural and underserved populations who have traditionally been excluded from the formal banking system.
Launched with the mission to provide accessible, affordable, and reliable banking services, IPPB leverages the
extensive reach of India Post, the country‘s largest postal network, which has over 1.5 lakh post offices, more
than 90% of which are in rural areas. This unique infrastructure has enabled IPPB to bring basic banking
services to the doorstep of millions of Indians, making it a key driver of financial empowerment.
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
Page 1002
www.rsisinternational.org
REFERENCE
1. K. Baby Saranya1 and Dr. R. Hamsalakshmi (2018) “Performance of Indian Post Office Saving
Schemes In Recent Trends 2320-5407 Int. J. Adv. Res. 6(3), 998-1004 IJAR, 2018.
2. Ms.Gayatri Narayan Nayak(2018)An Analytical Study Of Customer Satisfaction In Indian Post
Payment Bank With References To Thane District , ASM Group Of Institutes, Pune, India.Pp607-
615.2018
3. Afsana Sultana(2020) Role of Indian Postal Service Sector in Financial Inclusion with Special
Consideration to India Post Payments Bank(Ippb)Special
4. Sandesh D Souza, Oct 2018, Payment Bank: A Revolutionary step of Indian Post Payment Bank
towards financial inclusion, JETIR,Volume5,Issue10www.jetir.org(ISSN-249-5162),page165-174