Revised DBT Policy • Department of Posts & IPPB

The Policy Relating To Direct Benefit Transfer Has Been Under Consideration in the Department for some time.

The Department of Posts has so far, marketed Direct Benefit transfers both from POSB account as well as through IPPB. Since, the end user is the same for both the POSB and IPPB, there have been instances of confusion at the ground level.

The Current Market Share Of The Department of Posts and IPPB combined is small and competition between the two organisations only results in reducing each other's market without effectively competing with other banks.

While it is clear that every customer has a right to select the account into which DBT benefits will flow, a clear and comprehensive solution offered by the DOP-IPPB combine can help increase the market share in view of doorstep banking being provided by the IPPB.

Accordingly, the following policy guidelines have been approved by the competent authority for DBT business

✓ IPPB will open accounts by default for all new DBT mandates received.

✓ In case of Central, State, District Government authorities, marketing will be done by both the Department of Posts and IPPB officials for getting DBT mandate through IPPB.

✓ Directorate/Circles will not issue any separate target or communication related to opening of DBT account through DoB and will not engage with any Government authority for getting DBT business / mandate unless done in collaboration with the IPPB.

👉In case, any customer/citizen wants to avail DBT through POST, only then DoP shall facilitate the same

Existing DBT beneficiaries of the DoP may continue to avail DBT disbursal through POS.

Circles will ensure that at least 50% of the new accounts opened in IPPB are linked either to POSA or some other financial services of the Department.