Indian Premier Narendra Modi launched the Indian Post Payments Bank (IPPB) on Sturday. It does away with ATM cards and debit cards for both cash and cashless transactions. IPPB will issue new Quick Response (QR) cards which will work n biometric authentication and not on pins and passwords, as it happens now.
Currently, three types of account services are offered by IPPB. These are mainly, savings accounts—regular, digital and basic—besides a current account. All these three types of account has different features and none of them offers an ATM or debit card.
In the meantime, IPPB has already launched its app. This app can be used not only mobile banking but also for opening an Aadhaar-based account without visiting a post office. The mobile app is yet to be fully functional.
Here are the required details on QR card:
What is a QR card
A QR card contains a QR code or barcode that is used to identify account holders. Each QR code is unique. No two QR codes are the same. The code can be deciphered to identify the IPPB account holder through a smartphone or micro-ATMs. Soon, hand-held device which will be used by postmen.
How to withdraw money using a QR card
Once the customer identification is done using the QR code, the postman or banking correspondent will conduct another verification using biometric data. Upon completion of the two-step verification process, the customer is paid in cash which is carried by the postman. The doorstep banking service, which will be particularly handy for those in rural areas, comes at a cost of Rs 25 per cash transaction.
Besides this, the QR card can also be used for money transfer, bill payment and cashless shopping.
Where to use the QR card
QR card transactions can be done through postmen, post offices or Grameen Dak Sevaks (GDS). IPPB is also bringing unorganised retail, including small merchants and kirana stores, on board. Once the system is in place, one can pay even at small stores using your QR card.
What are the advantages of having a QR card
In the current scenario, anyone having a physical copy of the ATM card and PIN are able to withdraw cash from any ATM. But this does not happen with a QR card. It doesn’t work at ATMs at all and even at post offices or with postmen and Grameen Dak Sevaks (GDS) one needs biometrics. Hence, there is an added layer of security.
It also saves one from the hassles of remembering PINs.
One doesn’t even need to remember IPPB account number to use the QR card.
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