SUMMER INTERNSHIP PROJECT REPORT ON

“STUDY AND ANALYSIS OF DIGITAL BANKING”

Submitted in partial fulfillment for the award of the degree of

Masters of Management Studies (MMS)

(Under University of Mumbai)

BATCH 2022-24

SUBMITTED BY
SANISHKUMAR SHIVAJI MAHATO
ROLL NO: 51

SPECIALIZATION
FINANCE

UNDER THE GUIDANCE OF

Dr. GOVIND SHINDE

PILLAI HOC INSTITUTE OF MANAGEMENT STUDIES AND

RESEARCH RASAYANI- 410207

1
 SUMMER INTERNSHIP PROJECT REPORT ON

“STUDY AND ANALYSIS OF DIGITAL BANKING”

Submitted in partial fulfillment for the award of the degree of

Masters of Management Studies (MMS)

(Under University of Mumbai)

BATCH 2022-24

SUBMITTED BY
SANISHKUMAR SHIVAJI MAHATO
ROLL NO: 51

SPECIALIZATION
FINANCE

UNDER THE GUIDANCE OF

Dr. GOVIND SHINDE

PILLAI HOC INSTITUTE OF MANAGEMENT STUDIES AND

RESEARCH RASAYANI- 410207

2
3
 DECLARATION

I hereby declare that this project report titled “Study and Analysis of Digital Banking”
submitted by me to Pillai HOC Institute of Management Studies & Research RASAYANI-
410207 is a bonafide work undertaken by me and it is not submitted by me to any other
university or institution for the award of any degree, diploma or certificate or published any time
before.

Name: SANISHKUMAR SHIVAJI MAHATO

Roll No.: 51

Signature of the Student

4
 PILLAI HOC INSTITUTE OF MANAGEMENT STUDIES AND
RESEARCH RASAYANI- 410207

CERTIFICATE

This is to certify that project titled “Study and Analysis of Digital Banking” is successfully
completed by Mr. SANISHKUMAR SHIVAJI MAHATO During the II semester, in partial
fulfillment of the Degree in Management studies recognized by the University of Mumbai for the
academic year 2022-24 through Pillai HOC Institute of Management Studies and research
Rasayani-410206. This project work is original and not submitted earlier for the award of any
degree/diploma or associate ship of any other university/institution

Name: SANISHKUMAR SHIVAJI MAHATO

Date: ____________

(Signature of the Guide)

5
 ACKNOWLEDGEMENT

I wish to sincerely thank those who have contributed in one way or another to this study. Without
my mentors this project wouldn’t Have been a success.

With deep sense of gratitude, I would like to thank our college director Dr. PRADEEP
CHATTERJJEE for providing the necessary facilities required for completion of this project.

I would like to express my sincere thanks and gratitude to my mentor Dr. GOVIND SHINDE
for their guidance and valuable suggestion without which the completion of the report would not
have been possible.

I Wish to thank my company, INDIA POST PAYMENTS BANK for giving me a space to
express more, explore more and learn more. I would like to thank my reporting manager Ms.
POONAM JHA For her kindness and support towards me while completing the project.

Lastly, I would like to thank my family and all my colleagues for their support and
encouragement throughout the project.

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 EXECUTIVE SUMMARY

Along with theoretical knowledge this project has imparted the complete education of practical
world, which is the value addition in our course. This is to have a practical outlook of the
managerial aspects and witness the function of management in real business. I have tried my best
to meet the requirement by producing report that is highly illustrative and clearly explaining
concepts that I have learned during the project. This project really has enhanced my practical
knowledge of the different management areas, which will be very much faithful for me in future.
Someone has greatly said that practical knowledge is far better than classroom teaching.
During this project I fully realized this and come to know about the present real world of Digital
banking sector. It includes all the activities involved in providing digital banking products to the
final customers. I am pleased to know about the consumers' wants and competitors’ activities in
the real world of digital banking.
The subject of my study is to analyze the digital banking sector and products offered by IPPB
(INDIA POST PAYMENT’S BANK) by applying various tools like cold calling and through
direct interaction with customers.
The report contains first of all brief introduction about the company. Then it contains the current
status of IPPB.
I also put forward recommendations of the consumers and conclusions that will help IPPB to

provide consumer satisfactory services in the digital banking sector.

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 TABLE OF CONTENTS
SR. PAGE
INDEX
NO. NO.
1 CHAPTER 1
1.1 INTRODUCTION 9
1.2 SIGNIFICANCE OF THE STUDY 10
1.3 SCOPE OF THE STUDY 11
1.4 PRESENT SCENARIO OF THE INDUSTRY 12
1.5 LIMITATION OF THE STUDY 13
2 CHAPTER 2
2.1 COMPANY PROFILE 14
2.2 COMPANY HISTORY 17
2.3 COMPANY PROMOTERS 18
2.4 COMPANY FINANCIALS 19
2.5 COMPETITORS 20
2.6 COMPANY POSITION 21
2.7 OFFERINGS OF IPPB 22
2.8 ACCESSIBILITY 28
2.9 NETWORK 29
2.10 CUSTOMER SEGMENTS 30
2.11 DIVERSIFIED PRODUCT SUITE 31
2.12 OUT REACH 32
2.13 PRODUCTS & TIE-UPS 33
2.14 CUSTOMER SERVICE 36
2.15 IPPB FUTURE PROSPECTS 38
3 CHAPTER 3- LITERATURE REVIEW 39
4 CHAPTER 4 – RESEARCH METHODOLOGY
4.1 TYPE OF RESEARCH 43
4.2 OBJECTIVE OF PROJECT 44
5 CHAPTER 5 – DATA ANALYSIS & INTERPRETATION 45
6 CHAPTER 6 - LEARNING OUTCOME OF THE PROJECT 59
7 CHAPTER 7- FINDINGS & SUGGESTION 62
8 CHAPTER 8-CONCLUSION 66
9 CHAPTER 9- BIBLIOGRAPHY 67

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CHAPTER 1
1.1 INTRODUCTION

In an era defined by technological advancements and rapid digitalization, the banking sector has
undergone a transformative evolution, giving rise to digital banking. Digital banking
encompasses a range of online and mobile-based financial services, enabling customers to
conduct transactions, manage accounts, and access various banking services conveniently and
securely through electronic devices. This innovative approach has not only reshaped the way
individuals manage their finances but has also paved the way for financial inclusion on a global
scale.
India, with its vast and diverse population, faced unique challenges in ensuring banking services
reached every citizen, especially those residing in remote and rural areas. Addressing this need
for financial inclusion, the Government of India introduced the India Post Payments Bank (IPPB)
in September 2018.
IPPB, an initiative by the Department of Posts, Ministry of Communications, Government of
India, emerged as a pioneering venture to leverage the extensive postal network in the country.
With over 155,000 post offices, including rural areas, IPPB aimed to provide affordable and
accessible banking services to every corner of India. By harnessing the power of digital
technology and the reach of the postal system, IPPB envisioned bringing banking services closer
to the people, fostering financial literacy, and promoting inclusive economic growth.
India Post Payments Bank, as an embodiment of the digital banking revolution, stands as a
testament to India's commitment to financial inclusion and technological advancement. By
amalgamating the traditional reliability of postal services with the efficiency of digital banking,
IPPB has become a beacon of hope, promising banking services for all, regardless of
geographical constraints. As the world continues to embrace the digital age, IPPB represents a
significant stride towards building a financially inclusive nation empowered by digital banking
solutions.

1.2 SIGNIFICANCE OF THE STUDY

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A study on digital banking holds significant importance in various aspects of the financial sector,
technology, and society at large.
A study on digital banking is essential for fostering financial inclusion, ensuring data security,
understanding economic implications, improving user experiences, guiding regulatory practices,
promoting global connectivity, and encouraging innovation and entrepreneurship in the financial
sector. Such research contributes to the development of robust, efficient, and secure digital
banking systems that benefit individuals, businesses, and economies worldwide.

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1.3 SCOPE OF THE STUDY

The scope of a digital banking study, particularly focusing on India Post Payments Bank (IPPB),
is broad and multifaceted. It encloses various aspects related to digital banking services, financial
inclusion, technology, user behavior, regulatory frameworks, and the overall impact on society
and the economy. Here's an overview of the scope of a digital banking study, specifically in the
context of IPPB:

1. Digital Banking Adoption and Usage Patterns: The adoption rates of digital banking services
among different demographic groups, exploring factors influencing usage patterns and
preferences. Analyze how IPPB's digital services are utilized by customers in urban and rural
areas.

2. Financial Inclusion and Accessibility: Evaluate the effectiveness of IPPB in reaching

unbanked and underbanked populations. Study the role of digital banking in improving financial
accessibility, especially in remote regions, and assess the impact on local economies.

3. Digital Literacy and Education: The level of digital literacy among IPPB users and the general
population. A comprehensive digital banking study focusing on IPPB should encompass various
dimensions, including user behavior, financial inclusion, technological advancements, regulatory
compliance, and the socioeconomic impact. By addressing these aspects, the study can provide
valuable insights for IPPB's growth, enhance its services, and contribute to the overall
advancement of digital banking in India.

11
1.4 PRESENT SCENARIO OF THE INDUSTRY

The digital banking industry was rapidly evolving with the widespread adoption of digital
technologies, mobile banking apps, and online financial services. Given the pace of
technological advancement, it is important to note that the industry may have experienced
significant changes since then.

1. Mobile Banking Apps: Mobile apps offered by banks and financial institutions were becoming
increasingly sophisticated, providing users with a range of services from checking account
balances to making investments, all through their smartphones.

2. Digital Wallets: Digital wallets and payment apps were gaining popularity, allowing users to
make secure payments, store digital versions of credit and debit cards, and even engage in
cryptocurrency transactions.

3. AI and Chatbots: Artificial intelligence and machine learning technologies were being
integrated into digital banking systems. AI-powered chatbots were being used for customer
support, offering personalized assistance, and handling routine inquiries.

4. Biometric Security: Biometric authentication methods, such as fingerprint recognition and

facial recognition, were being widely adopted to enhance the security of digital banking
transactions.

1.5 LIMITATION OF THE STUDY

12
As the study made with the primary and secondary research there are certain limitations to the
study to be noticed. Main limitations to the study were the time available to conduct it, which
affected the processing and analyzing of the data.
Sufficient number of the respondent from all the IPPB service could not be included.
The study is confirmed only related issues are beyond the preview of present study. Due to time
constrain the researcher covered only A limited period of study.
Sample size is limited to 100 people only. Sample size may not be adequately representing the
whole market.
It is difficult know if the entire respondent gave accurate information, some respondent trend to
give misleading information.
People are not aware about IPPB

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CHAPTER 2
2.1 COMPANY PROFILE

INDIA POST PAYMENTS BANK

At India Post Payments Bank, they 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 one Branch and 649 Banking outlets manned by
Business Correspondents, working on a hub and spoke model.

14
15
VISION AND MISSION

16
2.2 COMPANY HISTORY

India Post Payments Bank (IPPB) is a government-operated financial institution in India that
aims to provide accessible and affordable banking services to all citizens, especially those in
rural and remote areas.
1. Announcement and Establishment (2016-2017): The idea of establishing a payments bank
under the India Post (the country's postal system) was first proposed by the Reserve Bank of
India (RBI) in 2014. In 2016, the Indian government received the final approval from the RBI to
set up IPPB. IPPB was incorporated on August 17, 2016, as a public limited company under the
Department of Posts, Ministry of Communications, with 100% government equity.

2. Pilot Launch (2017): IPPB started its operations on January 30, 2017, with a pilot project in
Raipur and Ranchi. During this pilot phase, IPPB tested its systems and processes to ensure the
smooth functioning of banking operations.

3. Nationwide Launch (2018): On September 1, 2018, Prime Minister Narendra Modi formally
launched IPPB nationwide. With the launch, IPPB aimed to leverage the extensive network of
India Post offices across the country, especially in rural areas, to provide basic banking and
financial services to the unbanked and underbanked population.

17
2.3 COMPANY PROMOTERS

India Post Payments Bank (IPPB) is a government-owned financial institution, and the
ownership of the bank is entirely with the Government of India. It operates under the Department
of Posts, Ministry of Communications, and is a 100% government-owned entity. As such, there
are no private promoters or shareholders associated with IPPB. The government itself promotes
and operates IPPB with the goal of providing accessible and affordable banking services to all
citizens, especially in rural and remote areas of the country.

18
2.4 COMPANY FINANCIALS

19
2.5 COMPETITORS

India Post Payments Bank (IPPB) operates in a competitive financial services landscape in India,
where it competes with various banks and financial institutions offering similar services.

1. Traditional Banks: Established public and private sector banks in India, such as State Bank of
India (SBI), Punjab National Bank (PNB), ICICI Bank, HDFC Bank, and others, offer a wide
range of banking services, including savings and current accounts, loans, and digital banking
options.

2. Payment Banks: Other payment banks, such as Airtel Payments Bank, Paytm Payments Bank,
and Jio Payments Bank, are competitors to IPPB. These payment banks primarily focus on
providing digital payment services and basic banking services.

3. Fintech Companies: Various fintech startups in India offer digital wallets, peer-to-peer lending,
and other financial services. Players like Paytm, PhonePe, Google Pay, and others provide digital
payment solutions and have expanded their services to include banking-like features, competing
in the same space as IPPB.
It's important to note that while IPPB faces competition from these entities, its unique selling
point lies in its extensive network of post offices, especially in rural areas, which enables it to
reach customers who might not have easy access to traditional banks or digital payment services.
Additionally, IPPB's focus on financial inclusion and providing basic banking services to the
underserved population sets it apart in the market.

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2.6 COMPANY POSITION

21
2.7 OFFERINGS OF IPPB

- Savings Account
DEPOSITS
- Current Account
- Simple & Secure
MONEY TRANSFER - Instant
- 24x7
- MGNREGA
DIRECT BENEFITS TRANSFERS - Scholarships
- Social welfare benefits and other Government subsidies

- 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

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PRODUCT OFFERED BY IPPB

1. MOBILE BANKING:
IPPB offers a state-of-the-art, secure and easy-to-use Mobile banking service through a Mobile
app to access your IPPB account and carry out transactions from the convenience of your mobile
phone.
 Opening a Digital saving account (new customer)

1.Download the IPPB app on your android phone from the google play store to activate banking
services on the go
2.Open your digital saving account by following on screen instructions
 Process to register for IPBB’S mobile banking (existing customer)
Get benefits of our mobile banking facility by linking your registered mobile number with your
IPPB account, opened at the post office/ through our postman/ GDS at your doorstep.
Step1: To activate banking services on the go, download the IPPB app on your android phone
from the google play store.
Step 2: Enter the details mentioned below:
 Account number
 Customer ID (CIF) and DOB
 Registered mobile number

 Facilities you can get from IPPB’S mobile banking services

1.Account balance enquiry

2. Request for a statement of your account
3. Transfer funds within the bank
4. Transfer funds to other bank account
5. pay water, electricity and utility bill
6. Recharge prepaid and DTH (direct-to-home) services
7. Payment towards eligible post office saving schemes
8. Send and receive money using BHIM UPI
9. Manage your funds with linked POSA (post saving account) by using Sweep-in and Sweep-
out facility

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SERVICES OF IPPB
 SMS Banking
India Post Payment Bank, provides the facility of SMS banking so that customers can quickly
access the account details on their mobile phone, simply by sending an SMS to the IPPB’S SMS
Banking number 7738062873
1. Compatible with all mobile handsets
2. Internet not required
3. Accessible anywhere, 24*7

 Missed Call Banking

To add your Convenience of banking with IPPB, you can get your account information without
any hassles, through the facility of missed call banking. Registered your mobile number for
IPPB’S missed call banking service and start availing the benefits.
1. Compatible with all mobile number
2. Internet not required
3. Accessible anywhere, 24*7

 Phone Banking
IPPB’S phone banking the convenience to access your bank account from the comfort of your
home, while at work or on the move. You can get information on your bank account, IPPB’S
products and services and resolve queries.
Benefits of IPPB’S Phone Banking:
1. 24*7 access account information
2. Immediate response to your queries
3. Save time and money by providing visits to the bank
4. Schedule Doorstep banking services through phone banking
IPPB’S Phone Banking Services:
1. Information on IPPB’S product/services
2. Information on the last five transactions
3. Call- back function
4. Queries related to interest rates
5. Account -related information
6. Issuing of account statement
7. Book a request for Doorstep banking services
8. Balance and transactions-related details
9. Any other banking -related queries

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  IPPB and Post Office Saving Account (POSA)
POSA holds a significant place in fostering saving as it reaches out to the remotest part of India
which has a limited reach of banking services
Some of the key features of a POSA are that it can be opened by cash only with a minimum
initial deposit of Rs. 500. It facilitates easy account transfer from one post office to another with
no lock-in or maturity requirement. POSA offers 4% rate of interest per annum.
The IPPB saving account allows the customer to the link the account with POSA. In case the
customer opts for such linkage, any account balance above Rs. 2 lakhs at the end of the day are
transferred to the linked POSA account.

2. DIGITAL SAVING ACCOUNT:

Digital Saving Account is a Zero balance account and hence there is no minimum balance
requirement. Digital saving account that can be opened online have made it easier for countless
people to open saving bank accounts from the comfort of their home there are many banks digital
saving account such as Kotak 811, Axis ASAP, Digi saving etc. that new customer can open.
The IPPB digital saving accounts is a saving account introduced by India Post Payment Bank.

 Features:
1. Open account instantly
2. No minimum average balance
3. Easy Banking
4. Transfer money easily and bill payment
5. Multilingual customer support

 Eligibility:
The account is available only for Resident Indian above the age is 18 years

 Documentation:
1. Aadhar card and PAN card is required to open the account
2. KYC procedure of the digital saving account

25
 3. CURRENT ACCOUNT:
IPPB offer the facility of a Current Account to the small merchants/ Kirana stores and individual
businessmen. This account is a prerequisite for carrying out and expanding business. IPPB’S
Current Account gets you started on the road to digital transactions for your business needs.
Along with this IPPB also offers a Merchant App for meeting business requirement. The current
account opened can be opened at the post office counters or at your doorstep through our
postman.
Key Account Features and Benefits:
1. Banking at your convenience
2. Instant account opening using Aadhar as per the applicable rules
3. No monthly average balance required to be maintained
4. The account can be opened with zero balance
5. RuPay Virtual Debit Card for online transactions
6. Free monthly e-statement
7. Mini statement through SMS
8. Simplified banking services through QR card
9. Instant fund transfer through IMPS
10. Easy bill payments and recharges
11. Send and receive money using BHIM UPI

What makes us Different:

1. Self on- boarding to IPPB Merchant App
2. Assisted services through the GDS, as and when required
3. Availability of funds at your doorstep, based on your request
4. Bill payment facility at your doorstep
5. Simple and secure banking through the IPPB QR card
6. Multilingual customer support
7. Nominal charge
8. Unlimited cash deposits and withdrawals

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 4. PREMIUM ACCOUNT:

“PREMIUM ACCOUNT” a product specially designed to offer Bundle of Benefits to Premium

Category Customers and also offers High incentive earning potential to customer Users
Features of Premium Account:
1. Anywhere Banking
2. Free doorstep banking service
3. Unlimited Free Cash Deposits and Withdrawal Services
4. Nil account balance charges
5. Cash-back on electricity Bill Payment
6. Preferential treatment in availing loan services
7. Preferential treatment at ALL IPPB Banking Touch Points

27
2.8 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 their services to every doorstep, their 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.
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.

Their 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. Their 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.

28
We endeavour to stay true to their motto -
‘Every customer is important, every transaction is significant and every deposit is valuable,
no matter the value

2.9 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.
CURRENT OPERATIONAL STRENGTH

 One controlling branch and 649 Banking outlets (~one banking outlet in every district)
 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

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2.10 CUSTOMER SEGMENTS

IPPB is committed to serving the financial and banking needs of its customers. Keeping the
customer at the center of everything we do, their wide range of products and services are aimed
at creating value and a delightful experience for them. Their easy-to-use, efficient, secure and
intuitive solutions are driven by the emerging needs of Bharat and Urban India. In response to
the evolving business environment & ecosystem, IPPB always strives to be ahead of the curve
and meet the ambitions and aspirations of its customers. Their customers come from different
corners of the country and all walks of life. While a significant

proportion of them are from rural area, many have never possibly visited a bank or had a savings
account before. With India Post’s legacy of serving the nation for over 150 years combined with
the last mile connect of the trusted local ‘Dakiya’, this is now very much possible. Whether it’s
farmers, senior citizens, especially abled persons, Kirana store owners, students or housewives,
IPPB has been able to make a difference in their lives by not only bringing banking services at
their doorstep but also creating an ecosystem that promotes and supports inclusive growth.

30
2.11 DIVERSIFIED PRODUCT SUITE

31
2.12 OUT REACH
With a diversified geographical footprint that covers the entire length and breadth of the country,
India Post Payments Bank addresses the banking and financial needs of over 5 crore customers
in 37 states/union territories currently. With the proliferation of digital technologies, India’s
financial services landscape is undergoing transformation at a speed and scale that has not been
witnessed before. Combining an unparalleled & robust network of 650 branches and over
136,000 banking access points, IPPB wants to be at the forefront of this transformation through
its expansive physical presence & digital capabilities, and deploying innovative ways to take
banking to the last mile.

32
2.13 PRODUCTS & TIE-UPS

1) Mobile number updation in Aadhaar & Child enrolment– Aadhaar linked mobile number
is being increasingly used to provide various services to the citizens. Thus there is a great
demand in the field for the same. Updating the same at the Aadhaar enrolment center takes time
due to the rush at such centers that caters to all the other Aadhaar related services. IPPB provides
this facility of updating the mobile number in Aadhaar in a paperless mode through biometric
authentication through a ‘CELC’ mobile app provided by UIDAI. The service is available at the
Post Offices or through the Postmen at the doorstep. The app also allows enrolment of children
below 5 years of age in Aadhaar and issuing them an Aadhaar number. Thus the enrolment of
children in Aadhaar can be done with ease at the doorstep and an Aadhaar card can be issued to
them early.

2) General Insurance (GI) products

(a) Motor Insurance- Two-Wheeler and Four-Wheeler –
(i) Motor Insurance (2-Wheeler & 4-Wheeler) sales is done through the trained and certified
Point of Sale Persons (POSPs).
(ii) Only Non-commercial Vehicles can be insured. (Vehicles with yellow Number plate cannot
be insured)
(iii) The sale of insurance products will be through the assisted mode in Micro ATM
(iv)These products are designed to cover the risk to vehicles, damage to a third party & personal
accident coverage in varying combinations.
(b) Health Insurance- Bank is offering Health Insurance (Medicare) of Tata American
International Group (TATA AIG) & Family Health Care Gold of Bajaj Allianz General Insurance
Co. Ltd (BAGIC) through GI POSP Certified assisted Sales Channel. It offers medical coverage
to the policyholder(s) for medical expenses incurred in case of a health emergency arising out of
sickness or injury and includes different medical expenses including surgical, day-care and
critical illness and even OPD expenses depending upon Policy terms. Expenses including
surgical, day-care and critical illness and even OPD expenses depending upon Policy terms

33
3) IPPB BBPS platform for customers and non-customers for cash-based payment (mATM
and CBS) - With this service we are able to facilitate bill payments in cash from anyone at their
doorstep and at their access points for all billers which are available on NPCI’s BBPS Platform.
Now we are able to service Bill Payments for “ALL CITIZENS” regardless of whether they are
IPPB account holders or not. This service will benefit the customers who are not digitally savvy
and wish to pay their bills in cash.

4) Strategic Engagement- IPPB had engaged with multiple Institutions like Employee
Provident Fund Organization (EPFO), various Port Trusts across the country and Defense
Service Pensioners Association for facilitating Digital Life Certificate to pensioners at their
doorstep. India Post Payments Bank has entered into an

MoU with Ministry of Health and Family Welfare for opening accounts of beneficiaries of the
Nischay Poshan scheme.

India Post Payments Bank has entered into an MoU with Ministry of Health and Family Welfare
for opening accounts of beneficiaries of the Nischay Poshan scheme.

5) IPPB had enrolled with UIDAI as a registrar, to facilitate Mobile Number update and Child
enrolment through Child Enrolment Lite Client (CELC) application for rendering service to
common masses through IPPB delivery channel. IPPB has touched more than 3.06 Crore citizens
in FY 21-22 for mobile number update and has been able to enroll more than 5.52 lac children on
to Aadhaar

6) Facilitating credit services to IPPB Customer base- IPPB with the restriction on extending
credit facility to its customers has engaged with multiple NBFCs & Scheduled Commercial
banks for generating Credit products leads.

34
7) Extending Cash Management Services (CMS)- IPPB with an aim to become a preferred
partner for collections across all post offices had signed Receivable Management MOU with
Shriram City Union Finance Limited, DTDC Express Limited, Aadhaar Housing Finance
Limited.

35
2.14 CUSTOMER SERVICE
India Post Payments Bank has constantly adopted a customer centric approach focusing on
delightful customer experience in every interaction while being trusted for integrity and highest
standards of governance. With new product offerings and excellence in Customer service at the
crux of the strategy, IPPB provide seamless banking experience to their customer. In order to
swiftly handle the queries and redress the customer grievance IPPB provides multiple avenues of
contact to its customers.

To ensure prompt resolution of customer grievances IPPB has designated Grievance Redressal
Officers/ Nodal officers at Circle level & Principal Nodal officer at corporate office. Further, in
line with the Internal Ombudsman Scheme 2018, the complaints, which the Bank proposes to
reject/ provide partial resolution, are referred to the Internal Ombudsman (IO) prior to
responding to the customer.

Various initiatives taken in the area of customer service in FY 2021-22 includes:

During the year IPPB sustained improvement in Quality score card, which is key metric for
measuring the customer satisfaction.

IPPB Contact Center continues to provide 24*7*365 assistance to their customer through Noida,
Chennai, and Kolkata centers which supports 13 languages through IVR and inbound and
outbound calling (Hindi English and other 11 vernacular Languages). It is equipped to handle

36
emergencies like unauthorized Debit transactions and Virtual Debit Card Blocking, enquires for
which dedicated number has been deployed 18008899860 & 155299 for other grievances.

Doorstep banking and banking through mobile has been made easy for customers or
noncustomers with addition of PSP application and other services with existing multiple
frequently used options and functionalities (Nomination registration). The PSP application and
existing mobile application are being enhanced with new functionalities in order to provide
better user experience.

This year total number of complaints received is 20170 (i.e.,271 complaints outstanding as on
01.04.2022, 20158 complaints were resolved up to the satisfaction of the complainant, till 31st
March, 2022.

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2.15 IPPB FUTURE PROSPECTS

 Leverages technology for expanded accessibility and reach.

 IPPB could expand its services to include a broader range of banking and
financial products, such as loans, insurance and investment options to attract
a larger customer base.
 Collaborating with other financial institutions, fintech companies and
government agencies can help IPPB expand its reach and offer more
comprehensive services.
 Aims to transform into a universal service platform.
 IPBB’s future will also be influenced by regulatory changes and government
policies related to banking and financial inclusion.
 Focuses on innovation to empower citizens and contribute to a digitally
inclusive society.

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CHAPTER 3
LITERATURE REVIEW
1. Reena Agarwal, (2016) has observed in her research payments bank will digitalize the
existing banking sector and will contribute in financial inclusion. Payments banks will
ease the banking and will make banking faster and easy for customers.

2. Meena Kumari, (2017) has highlighted the problems and challenges in achieving
financial inclusion. She also discussed need and objective of introduction of India Post
payments Bank and its role in financial inclusion.

3. G. Sabitha Srinivas, (2017) observed that opening new branch in every village is
uneconomical and payments bank provide banking services on digital platform which is
cost effective. Payments Bank plays a vital role in building cashless economy.

4. Peterson K. Ozili, 2018, from a practitioner's opinion, digital banking is financial

services delivered through mobile phones, personal computers, the internet or cards
linked to a reliable digital banking system. This includes services like money deposits,
withdrawals and transfers.

5. Carmen Cuesta, 2015 the concept of digital banking is a mechanism for generating the
supply, distribution channel for of financial products and services virtually, an
advancement technology to know customers better and anticipate their needs swiftly and
suitably, and an omni-channel solution, or the medium to the customers in
communicating with their bank directly via mobile phones and internet.

6. K. Hema Divya and K. Suma Vally (2018) focuses on an investigation of client

adoption of digital payment methods. The study uses primary source of data which is
collected from 183 persons in Hyderabad. Chi-square analysis was used to examine the
data gathered through questionnaires. According to the survey, the banking industry is
now performing better and is closer to realizing the goal of a cashless society as a result
of the deployment of technology for digital payments.

7. Arunangshu (2018) studied the digitization of India's rural banking sector. The potential
for the digital banking system to alter the financial landscape is huge. The study
discovered that digital banking's low-cost, user-friendly characteristics could hasten the
integration of the cash-less economy.

39
8. Anthony Rahul Golden S. (2017) discussed an overview of digitalization in the Indian
banking sector. Banks are not merely a part of our lives; also, they play an important role
in our daily life. As a result, banks are constantly striving to implement cutting-edge
technology in order to improve the client experience. According to the survey, as a result
of the implementation of digitization, the financial sectors in India are experiencing
significant changes as well as challenges. The survey also discovered that in the digital
age, it is impossible to prevent growth and services such as digital banking.

9. Rajeshwari (2017) customers' expectations of banks are rising as a result of digital

banking. They conclude from their analysis of secondary data that digital banking marks
an important turning point for the Indian banking system. The development of Indian
banking is aided by it. It demonstrates how swiftly banks' operating expenses have been
decreased as a result of digital banking. Banks will profit more if their operating costs are
lower. He believes that virtual banks have the potential to alter the way that banks are
organized.

10. Sharma (2015) stated that digital banking will be a watershed moment in the Indian
economy. The study is analytical in nature and is based on secondary data. According to
her, digital banking has an impact on the Indian economy. The economy is changing as a
result of advances in financial technology. It can deliver better services to their
customers. It is acceptable in the market because of their rapid expansion. After analyzing
the benefits of digital banking, everyone in the market desired it for overall expansion
and success.

11. Geetha (2014) did a study on urban cities in India with 200 respondents. The researcher
has identified a number of factors that directly affect the adoption of e-banking services.
They outline criteria including innovation, client familiarity, awareness, security, and
trust. These elements impact how customers view online banking.

12. Utpala (2013) did a study to examine the market's present state of e-banking. The author
examined respondents' perceptions about e-banking using the primary data source. The
researcher examines the challenges that clients confront when using internet banking.
According to Utpala, 60% of the urban population uses digital banking. All transactions
are now completed using mobile banking. Bill payment via mobile banking has just
gotten a whole lot easier. It is critical to target the rural people by developing awareness
initiatives and training courses. It should aid in the promotion of digital banking in India

13. Darryl Proctor, 2019 Moreover, the concept of digital banking could be referred as a
process of the digitization (from offline based to online based) of all the traditional
banking services and product that historically were only can be accessed by the
customers when they come to the bank branch. The services encompass cash deposits,

40
 cash withdrawals and transfers, checking or saving account management, applying for
financial products, credit and loan management, bill payment and account services.
14. Yoonseock Son (2016) digital banking technology has affected the core of the banking
business and has changed financial services operating system, which had been dominated
by offline employee-oriented services had turned to online based oriented. The digital
banking has improved efficiency and cost-effectiveness of technology-enabled service
delivery processes have shifted the managerial focus toward enhancing the efficiency of
digital channel operations to reduce operational costs. All the more significantly, as an
expanding number of banks are providing digital banking services, it is imperative that
banks understand how customers use the digital services and employ their benefits to
foster better customer relationships

15. Loh, 2020 argued that digital banking has affected many banks in downsizing their
physical operations in which occurred in the bank branch. The establishing of digital
bank had turned bank client to not rely on transaction inside of bank branch. Moreover,
digital banking offers the changes to the banking industry through cost reduction
compared to traditional banking and provide abroad accessibility to its customers

16. Emily, 2017 digital banking can be describing as a new instrument of banking and
finance, services or practices, introduction to the new method uses of money, new
channels of funds or new ways of handling daily transactions in which all these efforts
are becoming part of existing financial institutions and the emergence of new markets.
This digital banking is a competitive advantage to the banks to beat the competition,
lower their exposure to risk and manage risk better in case it occurs while at the same
time responding to the needs of their customer and respond to the market changes.

17. Howard Thomas, 2019 the concept of financial inclusion can be referred as a process
that ensures smooth accessibility, availability, and actively utilize of the formal financial
system and services to members of an economy, academics, society and practitioner.

18. Svitlana Naumenkova, 2019 The lack of financial inclusion to formal financial
services reduces the level of social welfare and also their social protection that may lead
to the increasing social tension in society, which ultimately slows the development of
the country's economy as a whole as well as social development.

19. Ulf Thoene, 2017 numerous countries around the world has made financial inclusion as
a key topic on governmental agendas. Governments formulate policies and stimulate
social development aimed at establishing the opportunities for individuals excluded
from the financial system. Financial inclusion not only offers access to banking
products, but also tends to raise the purchasing power and standard of living of low-

41
 income populations. Financial inclusion is necessary to boost a country's economy and
sustainability.

20. John Vong, 2016 digital banking can benefit both the rural population and the rural bank
branches in which aims to reduce poverty and improves the standard of living of the rural
population. As such, the financial sector not only contributes to GDP growth but also
reduces poverty. Digital banking is cost effective time efficiency, and flexibility to a bank
to deliver banking services by reaching the rural population.

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CHAPTER 4 – RESEARCH METHODOLOGY

4.1 TYPE OF RESEARCH

Research is a scientific and systematic research for patent information on a specific
topic
 Descriptive research.
Descriptive research defines questions people survey and the method of analysis
prior to beginning data collection in other word the Who what where when why I
and how aspects of the research should be defined. such preparation allows one the
opportunity to make any required changes before the costly process of Data
Collection has begun.

 SAMPLE SIZE AND METHOD OF SELECTING SAMPLE

SAMPAL SIZE
Sampling is simply the process of learning about population on the basis of
learning about population on the basis of a simple drawn from it
SAMPAL SIZE- 100 People is selecting from Bundi.

METHODS OF SELECTING SAMPLES: -

PRIMARY DATA - data is collected primary through personal contact meeting

interview and questionnaire with the concerned authority of the organization and
respondent
SECONDARY DATA- data are collected through secondary modes such age
various published data reports related book and website

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4.2 OBJECTIVE OF PROJECT
1. Creating awareness about India post payment bank in rural Areas.
2. To know the people behavior toward IPPB.
3. To determine the market potential in rural areas of IPPB.
4. To analyze Customer preference towards Digital Banking.
5. To understand major factors influencing Customers Preference towards
Digital Banking.
6. To analyze the challenges of Digital Banking
7. To understand the various modes of Digital Payments

44
CHAPTER 5 – DATA ANALYSIS & INTERPRETATION

1. What is your age group?

Interpretation:
In the above pie chart, age group of 20-30 (54%) are more likely use IPPB accounts. in this age
group most of the users are college students, prefer this account for scholarship purpose.
And 21% of users belong to 40 to 50 age group in this age group the users are mainly use this
account for government schemes and facilities provided by government. Remaining 25% of users
are common people who use this account for their day -to -day life.

45
2. What is your gender?

Interpretation:
59% of male use IPPB accounts and 41% females IPPB account.

46
3. What is your level of education?

Interpretation:
33.3% of SSC qualify people are using digital banking in rural area through IPPB, in this Most
of the users are having a small business and they are using IPPB account for receiving online
payments as a merchant account.
34.3% users are HSC qualified ,29.4% users are graduate 3% of users are postgraduate

47
4. Are you aware of India Post Payments Bank (IPPB)?

Interpretation:
71% of people are aware about India post payment bank and its financial services and products.
29% of people are not aware about India post payment bank and its products.

48
5. Which type of bank account do you have?

Interpretation:
48% of people have premium saving account in IPPB (Majorly people use this account for fund
transfer to post office account from IPPB account it is convenience for post office Account users
to operate from digital banking through India post payment bank)
13% of people having a current account (Merchant account used for business)
39% of people have saving account

49
6. Do you use digital banking services provided by IPPB?

Interpretation:
33% of user regularly use digital banking services by IPPB (In this user are mainly a small
businessman who use this account for online payment receiving and common users)
45% of users use digital banking services by IPPB occasionally in this people are using this
account for government schemes or post office schemes and investments
12% of users are not aware of digital banking services offered by IPPB
12% of users are do not use digital banking services provided by IPPB

50
7. What factors influence your decision to use digital banking services?

Interpretation:
39% of users use India Post Felon Bank digital banking services for their convenience to operate
financial payment and records.
20.4% of users use IPPB account for offers and incentive provided by the Payment bank and
government.

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8. How satisfied are you with your experience using digital banking services
provided by IPPB?

Interpretation:
30% of users are very satisfied with the IPPB digital banking services.
1% of user are very dissatisfied this shows IPPB is providing a very good digital banking
services to their customers.

52
9. How confident are you in the security measures of IPPB's digital banking
services?

Interpretation:
34% of users are very confident about security measures of IPPB digital banking services 39% of
people somewhat confident and 11% of users are not confident.
This shows overall 73% of users are happy with the security measures of IPPB’s digital banking
services

53
10. What digital banking services do you use the most?

Interpretation:
44% of account holders use IPPB account or digital banking services of IPPB for fund transfer
and 37% of users use for online payments and the remaining people use for bill payments and
mobile recharge as 18% and 22%

54
11.Which digital banking channels do you use most frequently with IPPB?

Interpretation:
41.3% of users use mobile app for most frequently use of IPPB Digital banking services.
23.1% of users use Internet banking for the ipb digital banking services
13.5% of users don’t use IPPB digital banking services because they are not aware about the
IPPB is providing them financial services.

55
12. Have you encountered any issues or challenges while using IPPB's digital
banking services?

Interpretation:
25% of users are facing slow processing of IPPB digital banking services through mobile
application and Internet banking
32% of users are facing technical glitches on mobile application while using IPPB mobile
application

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13. How would you rate the security measures provided by IPPB for digital
transactions?

Interpretation:
38.6% of users rate the security measure provided by IPPB for digital transactions is good
21.8% of users rate security measures provided by IPPB for digital transactions is excellent and
20.8% of users rate this as a fair and 15.8% of users are not sure about security measures
provided by IPPB for digital transactions.

57
14. Have you referred others to use IPPB's digital banking services?

Interpretation:
81.2% of people referred IPPB digital banking services to others.
18.8% of users not referred IPPB Digital Banking Services to others.

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CHAPTER 6 - LEARNING OUTCOME OF THE PROJECT

WORK RESPONSIBILITIES DURING INTERNSHIP

 Week 1 - In the first week our Induction was taken in which we get information about
India Post Payment Bank, what is the structure of the bank, how does it work, what are
the resources and how much customer reach is there, what are the products and what
facilities are given to the customer and apart from this, how is the bank's revenue
generated.

Then we were told about insurance like general insurance and life insurance, then we got
Bajaj products like GTL, POS, GPG and Group accidental policy of 396.
information about Pan India offices and business of IPPB and mobile services of IPPB
and how to operate it.

 Week 2 - Introduction of target that I need to accomplish during my internship and

creation of strategy plan that we need to execute. After the strategy plan, we got a list in
which there were account details of 100 people who were inactive or dormant, so our task
was to call 100 people and inform them that your account has become inactive or
dormant. To restart the account, you will have to get KYC updated, for which you will
have to update KYC at the nearest post office and apart from this, we should inform them
about insurance according to their interest and finally make them aware of the fraud.
And at the same time talks were going on with people for setting up IPPB camps, this
was also a part of my internship.

 Week 3 - In 3rd week we got 2nd and 3rd 100 account details list to call again, completed
it. financial awareness Then we conducted IPPB camp in Vihighar- Mahalaxmi city type -
D society, camp Rabale and Vihighar visit.
Then IPPB had 2 days GI login drive, then we had to call our end users and motivate
them to do GI login and help them as well as we also have to login in GI.
Then we got information about IPPB mobile banking errors and their solution.
We got a lot of knowledge while interacting with the customer every day, it was a new
experience.

 Week 4 - Calling to end users or postmen for login day activation of general insurance
take review from them about target achievement. Calling to our connections for camp and
introduction of SBI life insurance product.

59
 Week 5- Then we did Merchant onboarding and issued QR cods to them, generated
General and Life insurance leads in the market closest to the post office.
QR code login drive on 29 may 2023 so we visited to (Gulsunda village,Mohopada
market,Patalganga road rasayani) for QR code issue and merchant onboarding.
Attended Postmen meeting for life insurance awareness walk in customers in post office
interaction and pitching life insurance product.

 Week 6 - Walk in customers interaction for pitching life insurance. Visit to nearby market
for issue QR code and life insurance. Visited to OLA office khanada colony, UBER office
kamothe then Panvel ST DEPO for IPPB camp. visited Khanda colony market for
merchant onboarding and QR code issue.
Generated GI leads form market.

Week 7 - Attended IPPB Camp in Vindane Village.

Awareness of GI login drive 15 June to 15 July to postmen and branch offices. Calling to
end users or postmen for login day activation of general insurance take review from them
about target achievements.
Visited MGM Hospital for IPPB camp and truck parking station kalamboli for GI camp.

 Week 8 – Visited to Sanpada OLA office and Uber office for IPPB camp.
visited branch post office Adai for effective implementation of GI drive and camp
activity.Visit to another post office in old Panvel for GI awareness.
Visited and arranged Meting in Panvel Mahanagarpalika for (GI policy of Bajaj 396)
login drive.

 Week 9 - Interacting with walking customers and solving their problems regarding IPPB
mobile banking and KYC update, Account opening, GI policy issue, helping them to
login in IPPB mobile banking app visited to Adai post office for awareness of camp and
preparation of camp, visited Adai Gram panchayat office interacted with sarpanch of Adai
MR. Ramakant Garude sir and Gramsevak MR. Dipak Kondvilkar for IPPB camp.
Conducted IPPB camp in Adai.
Interaction with walk in customers for pitching life insurance products.

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SKILLS ACQUIRE DURING INTERNSHIP

 Communication - learned how to communicate with people having different psychology.

Learned how to communicate professionally.by interacting with then knowing their need
so we can advise them the perfect policy which is suitable to the that customer.

 Problem solving - Solving the problems of customers regarding IPPB mobile banking
systems. Solving the problems in implementation of strategy.

 Leadership - How to arrange and manage people or given resources for camps and
handle the people around you for successful Completion of camp.

 Project management - Analyzing and observing various things around work place.
Supervising team.

 Utilizations of resources – Resource utilization is a vital area of project management

that can sustain growth, increases profits, improve productivity and enhance an
enterprise’s bottom line.

 Financial knowledge – Like what is IRR and it’s importance in insurance. CASA
system of bank how it works for banking sector. CRR, SRR.

61
CHAPTER 7- FINDINGS & SUGGESTION

FINDINGS

 IPPB is having most of its user in age group of 20 to 30

 IPPB is having a mix of education and qualification users lower too higher

 Most of the people are aware about India post payment banks digital banking services

 Most of the users have premium saving account in IPPB

 Most of the people use India Post payment banks digital banking services occasionally

for fund transfer and online payments

 India posts payment banks digital banking Services provide convenience to their

customers to operate digital banking services

 India post payment banks digital banking services is satisfied to their customer and

provide very good services with their end

 India post payment bank is providing digital banking services with very low charges to

their customers comparing to the other payment banks and private banks for example

doorstep service

 Most of the users use digital banking services by India post payment bank for fund

transfer and online payment and very few of using for bill payments.

 India post payments banks digital banking services is majorly used from mobile

application of India post payment bank and secondly internet banking due to lack of

financial literacy people are not aware about other channels to use digital banking

services

62
 India post payment banks users are facing slow processing of mobile application

technical glitch and lack of features in IPPB mobile application

 Most of the people referred it to be digital banking services to others

63
 SUGGESTION

1. Firstly, I could observe that the general level of awareness among the people regarding
India post payment bank brand is low, therefore the brand should focus on advertising both at
the central as well as local Level.

2.We know that the products and services offered by the company are the best but more or
less similar are offered by other company as well, so promotional campaigns are must in this
era of stringent competition.

3. Establish and coordinate business relation with big corporate houses across the country.

4. IPPB can improve upon its efficiency by not changing its staff frequently. By doing this
company can continue to create, maintain and grow strong relationship with its existing
customers. Idea behind this is that staff which is already working for company is well
acquainted with the nature and wants of the existing customers.

5. IPPB Bank could tap the rural markets with cheaper products and smaller policy terms.
There are individuals who are willing to pay small amounts as interest rates but the plans do
not accept interest below a certain amount. This was a general conclusion drawn during
prospecting clients.

6. IPPB should chalk out some programs to create general awareness regarding its presence
and various services of the company.

7. Today is the era of competition. In order to increase the company network (In terms of
clients and business volumes) an aggressive approach is required.

8. The Bank should recruit more marketing personnel so that they can cover majority of
villages so the marketing Personal marketing can people into confidence.

9. IPPB should try to make its promotional activities more effectively.

10. It can use industrial magazine media as an advertising tool for approaching is market.

11. It should regularly conduct market research and surveys for knowing customers better
and for facing threat from competitors.

64
12. India post payment bank have to conduct training program for their on-field staff to
improve their financial literacy and digital banking services.

65
 CHAPTER 8
CONCLUSION

The work experience that I have taken here during the internship allowed me to develop many
skills like communication, leadership, management, problem solving etc., the overall experience
was positive, and everything I learned would be useful in my future career in this field. My
financial understandings about DIGITAL BANKING are increased.
Indian Post payments Bank was launched with the vision to build the most accessible, affordable,
and trusted bank for the common man.
The focus of IPPB is financial inclusion of unbanked and under banked sector of India and to
create cashless ecosystem. IPPB running the largest training programme of financial literacy and
digital literacy. India Post Payments Bank has the leverage of largest postal network in the world.
IPPB has increased the size of rural banking infrastructure by seven times. As IPPB is not
allowed to advance loans which is the primary income source of banks, IPPB need to more focus
on new ways of income generation.

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CHAPTER 9

BIBLIOGRAPHY

Web Sites:

 www.IPPB.com
 WWW.indiapost.gov.in

Search Engines:

www.google.com

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