India Post Payments Bank Faces Criticism Over Account Verification Issues
India Post Payments Bank opened accounts without mobile verification: Report
The Economic TimesImage: The Economic Times
The Comptroller and Auditor General of India reported that India Post Payments Bank (IPPB) opened accounts without proper mobile verification, linking multiple customers to the same number. This has led to high transaction decline rates and operational inefficiencies, undermining customer trust and financial inclusion efforts.
- 01IPPB opened accounts without verifying mobile numbers.
- 02Multiple customer accounts linked to the same mobile number.
- 03High transaction decline rates for UPI services at 3.29% in FY 2021-22 and 7.82% in FY 2022-23.
- 04IPPB experienced 362 hours of UPI service outages in FY 2023-24.
- 05CAG recommends data cleansing and improved monitoring for better service.
Advertisement
In-Article Ad
A report by the Comptroller and Auditor General of India (CAG) revealed that India Post Payments Bank (IPPB) has been opening accounts without verifying mobile numbers, leading to multiple customer accounts being linked to the same number. This practice has resulted in a significant number of inactive accounts and a high transaction decline rate for its Unified Payments Interface (UPI) services, recorded at 3.29% in FY 2021-22 and 7.82% in FY 2022-23, both exceeding the Reserve Bank of India's target of less than one percent. Additionally, IPPB's UPI services faced outages totaling 362 hours in FY 2023-24, far surpassing competitors like Fino and Paytm Payments Bank. The CAG has urged IPPB to enhance its operational efficiency by implementing comprehensive data cleansing to eliminate invalid linkages and improve its IT systems, thereby restoring customer trust and promoting financial inclusion.
Advertisement
In-Article Ad
The issues at IPPB could lead to decreased customer trust and hinder financial inclusion efforts, affecting users who rely on its banking services.
Advertisement
In-Article Ad
Reader Poll
Do you trust India Post Payments Bank with your financial transactions?
Connecting to poll...
More about Comptroller and Auditor General of India
Read the original article
Visit the source for the complete story.


