New Delhi, April 30: India Post Payments Bank has introduced a zero-balance savings account for Self Help Groups with a maximum balance limit of ₹2 lakh, aiming to expand financial inclusion and support women-led collectives in rural areas.
The initiative, announced by the banking entity under the Department of Posts, is designed to provide simplified and low-cost banking services for Self Help Groups, which are central to rural livelihood activities and linked with government programmes such as the National Rural Livelihoods Mission.
The account offers a zero minimum balance requirement and does not mandate any monthly average balance. It also removes charges on cash deposits and withdrawals, while providing quarterly interest payouts, free monthly statements and no account closure charges.
India Post Payments Bank Managing Director and Chief Executive Officer R Viswesvaran said the product is intended to make banking more accessible at the grassroots level by strengthening the financial participation of SHGs through a simplified system.
He said the model integrates doorstep banking and digital infrastructure to ensure that Self Help Groups can access formal financial services without operational barriers.
The account has been enabled through a digital onboarding system and is delivered through the postal network, including post offices, postal workers and Gramin Dak Sevaks, allowing banking services to reach customers at their doorstep.
Officials said the ₹2 lakh maximum balance limit has been set to align with regulatory requirements while ensuring suitability for group-level financial operations within Self Help Groups.
The bank highlighted that the initiative is part of its broader objective to extend financial services to unbanked and underbanked populations across the country. IPPB operates through a network of approximately 1.65 lakh post offices and more than 3 lakh postal employees.
It currently provides services across over 5.5 lakh villages and towns, offering paperless, cashless and presence-free banking through a technology-driven platform available in multiple languages.
The launch comes as part of continued efforts to strengthen rural financial systems by integrating community-based organisations into formal banking channels and expanding access through existing postal infrastructure.
