Postal Life Insurance, initially introduced as a welfare scheme, is now the oldest life insurer in the country. Its rural life insurance is meant for rural people who can't afford heavy premiums of insurance policies. It has helped migrant labourers move to urban areas or even overseas to remain eligible for a policy. The Postal Online Payment option through the Indian postal payment bank has made the premium payment services faster. People can pay and receive money easily using the postal network. It is a one-stop financial services provider that allows instant account opening and direct benefit transfer facilities.
There are several ways of Online Postal Payment systems. All the methods are easy to follow for the users. Each payment method has its own set of steps.
These are some of the Online Postal Payment processes:
India Post payments bank has multiple channels for paying bills like post office counters, doorstep banking services. But for Postal Online Payments, a mobile banking app is the best choice. Using the app, you can pay bills and recharge mobile and DTH. It allows paying insurance premiums, electric, water, and gas bills.
The customers have various options to choose to make an online payment or transfer funds to another account. These services are hassle-free and available anytime, anywhere throughout India. Here are two major ways of fund transfer processes:
IMPS is a commonly used method to transfer money electronically to anyone holding an account with any bank. The best part of this facility is that it can be done 24*7 and the amount gets credited instantly in the receiver's account, even in the holidays. This facility is available in the mobile banking application.
The mobile banking application of IPPB has NEFT services that allow the customers to electronically transfer funds throughout the nation. This Online Postal Payment system facilitates money transfer to any corporate organization, firm, or individual irrespective of their bank and branch in the country.
The online postal payment system also has the RTGS facility for enabling the customers to perform transactions above the value of Rs. 2 lakhs. By using the account number and IFSC code, funds can be transferred using the mobile banking app.
UPI is one of the common ways of transferring money using the micro ATM and CBS applications. It is the assisted model of IPPB, and they are the first of its types in India. This assisted model enables the customers to transact without downloading any UPI app or registering their debit card. Each customer gets a Virtual payment address ID. This ID helps to make payments.
AePS is a Postal Online Payment system that allows the customer to make the payment using an Aadhar Card as a medium of identity. This payment method enables the customer to perform all the basic transactions apart from making payments.
IPPB introduced the QR card that is a secure way to make payments without remembering the account number or the password. The transactions take place using the OTP (one-time-password) along with valid, officially valid documents. It enables the payment conveniently. In case the QR card gets lost, the money remains safe in the account as each transaction requires OTP authentication. These are the steps to use the QR card:
The online payment process of the Indian postal network provides numerous benefits to its users. Here are some of the benefits of Online Postal payment:
Upon opening an account either through instant account opening services at the doorstep or in post office counters, fast Aadhaar based direct benefit transfer is possible.
The Postal Online payment process allows simple and secure money transfer throughout the day. It makes paying the bills easy and instant.
As there are no charges for registering and accepting digital payments, it makes the process cost-effective even with low economic background people.
The IPPB's 'Merchant App' enables the customers to easily transfer money by just downloading the app on their smartphones. Tracking of the transaction history aids in building the credit score.
The Postal Online Payment process acts as a drive for making India ready digitally. The fear of losing cash and coins is removed. It provides the users with a simple and hassle-free experience.
In the Postal Online Payment method, the payment is made using one of the multiple services of the mobile app of IPPB. All that a customer needs is internet access and online banking details. The process takes place through an online payment gateway. The entire process is virtual and transfers the funds easily.
In the Postal offline payment method, the payment can be made from any of the post offices. This process requires the customer to visit the post office in person with the required documents. It is a time taking process, and the biggest disadvantage is that the transactions can be made only during working hours. If you need to make the payment and that day is a holiday, then you can't carry on the payment procedure.
A1. No, GST is not applicable on the premium payments.
A2. Yes, the benefit is applicable till the age of 55 years for those who continue to renew and pay the premium without fail till the age of 54 years.
A3. Usually, the premium gets deducted automatically in the auto-debit option in one installment. This option helps in giving the enrolment. Every year members have the option to choose for the auto-debit, or it can be just a one-time mandate. The process of premium payment depends on the re-calibration needed from year to year.
A4. If anyone exists the schemes at any point due to any reason, they can easily rejoin the scheme whenever they want in the coming years by making the payment of the annual premium amount. However, they are not eligible for benefits upon death except in case of an accident for the first four to five days after enrolment of the scheme.
A5. The assurance of the life insurance may terminate upon attaining 55 years of age, closure of the account with the bank, insufficient balance, or member is covered another premium through one more account. In the case of dual life coverage, the life cover is restricted to only Rs. 2 Lakh, and all the duplicate insurance premium amounts get forfeited.
A6. The premium amount is Rs.289 per annum for each member. Whereas reimbursement of Rs.30 is done to India post payments bank and Rs.11 is provided as reimbursement of administrative expenses by each member every year to India post payments bank.
A7. While using the QR card for the payments, individuals need only the QR card and OVD validation documents.
A8. For the Postal online payments of more than Rs.2 Lakh, RTGS is considered best. The real-time Gross settlement method enables you to easily make the payment by using the account and IFSC code.
A9. Immediate Payment Service (IMPS), National Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS), Unified Payments Interface (UPI), and AADHAAR Enabled Payment System (APIs) are common modes of transferring funds through Indian postal networks.
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.