New Delhi: Public sector Punjab National Bank (PNB) on Friday said it will help India Post Payments Bank (IPPB) set up pilot branches.

India Post Payments Bank and PNB have signed a memorandum of understanding (MoU) to achieve strategic depth in financial inclusion (FI), PNB said in a statement.

“Under the partnership, PNB would help IPPB set up its pilot branches," it added.

PNB said both of them would forge the relationship to the advantage of the unbanked population as well as for a sound business proposition.

IPPB’s pilot branches in Ranchi and Raipur were inaugurated through a video conferencing by finance minister Arun Jaitley and minister of state for communications Manoj Sinha on last Monday.

IPPB will offer an interest rate of 4.5% on deposits up to Rs25,000; 5% on deposits of Rs25,000-50,000 and 5.5% on Rs50,000-1,00,000.

India Post Payments Bank is the third entity to receive payments bank permit after Airtel and mobile wallet Paytm.

Payments banks can accept deposits up to Rs1 lakh per account from individuals and small businesses. The paid up equity of IPPB is Rs800 crore, of which the government has already infused Rs275 crore.

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