🏦 Introduction
In India, payment banks are banks that offer basic banking services such as savings accounts, money transfers, debit cards, and UPI payments, but cannot lend money or offer traditional loans. Two popular ones are:
- Airtel Payments Bank (APB) – a private payment bank from the telecommunications brand Airtel.
- India Post Payments Bank (IPPB) – a government-linked payment bank through the postal network.
Both let you open a zero-balance bank account and perform daily banking. Yet, they differ in fees, limits, and services.
🧾 1. Account Opening: Step-by-Step
📱 Airtel Payments Bank (APB) – How to Open
- Via Airtel Thanks App or mobile app
- Open the Airtel Thanks App → navigate to Bank Account section.
- Complete KYC (usually Aadhaar + PAN + video KYC).
- Enter personal details, verify OTP, accept terms.
- Account is created digitally — no branch visit.
- Debit card (physical) can be ordered in the app.
- Documents Required
- Aadhaar linked to your mobile
- PAN card
- KYC verification via video or in-app process
- Minimum Balance
- None required — zero balance account.
- Account Opening Charges
- No upfront fee for basic savings account, but there may be a small “Account Facilitation Charge” of ₹100 (typically applied when facilitating opening).
📬 India Post Payments Bank (IPPB) – How to Open
- At Post Office Branch / Through App
- Visit the nearest post office / IPPB Access Point or request a doorstep visit.
- Provide Aadhaar, PAN (and photo if required for non-eKYC).
- Bank official will complete KYC and open the account.
- You often receive a QR card / virtual debit card.
- Documents Required
- Aadhaar card (for e-KYC)
- PAN / Form 60
- Other ID documents for non-eKYC
- Minimum Amount & Balance
- Zero initial deposit, no minimum balance.
- Account Opening Charges
- Basic Regular IPPB account – usually free, though some premium variants may have a fee (e.g., Premium Khata ₹149).
💸 2. Hidden and Regular Charges (Airtel vs IPPB)
One of the biggest differences between these banks lies in what they charge for services. Many customers get confused when small fees get deducted from their account.
🔹 Airtel Payments Bank – Charges Explained
🪙 Account Maintenance & Monthly / Annual Charges
| Type of Charge | Fee |
|---|---|
| Account Facilitation Charge (one-time) | ₹100 (approx) |
| Account Maintenance (AMC) – Savings | ₹50 + GST per quarter (₹200/year) after first 6 months free |
| SMS Alert Charges | ~₹0.35/SMS + GST (cap applies) |
📌 Airtel also previously had quarterly operation charges which have been revised or merged with AMC in recent updates.
💳 Debit Card Fees (RuPay / Mastercard)
| Type | Charge |
|---|---|
| Personalized Debit Card Issuance | ₹349 |
| Debit Card AMC | ₹199-₹299/year |
| Non-Personalized / Insta Card Issuance | ₹299 |
| ATM Withdrawal @ Non-Airtel ATM | ~₹23 + GST per withdrawal above free limit |
| Balance Enquiry / Mini Statement | ~₹11 + GST each |
📌 Physical debit card charges can add up quickly if you use ATMs often.
🧾 Transaction and Service Charges
| Service | Fee |
|---|---|
| IMPS / UPI transfer to other banks | Usually free |
| Cash deposit above ₹25,000 | 0.5%–0.75% of amount |
| Cash withdrawal above ₹10,000 | 0.65% of amount |
| Account closure | Not always clearly specified; may require contact support |
❗ Many users report being charged SMS alerts or AMC unexpectedly because they didn’t realize even alerts cost money above the free limit.
🔹 India Post Payments Bank – Charges Explained
IPPB is often considered simpler and lower-cost:
📊 Fees for Regular Savings Account
| Charge Type | Fee |
|---|---|
| Account Opening – Regular Savings | Free (basic) |
| Premium Savings Opening | ₹149 + GST |
| Annual Subscription (Premium) | ₹99 + GST |
| Account Closure | Free for most accounts |
| SMS Alert Charges | ₹0.25 + GST / SMS (capped per quarter) |
| Balance Certificate | ₹50 |
| Card / Kit return due to wrong address | ₹50 |
💳 Debit / QR Cards
| Service | Charge |
|---|---|
| Virtual Debit Card Issuance | ₹25 |
| Virtual Debit Card Annual Maintenance | ₹25 |
| Virtual Debit Card Reissuance | ₹25 |
| QR Card | Free |
📌 Notice that IPPB’s basic account gives you a free QR card, and virtual debit card fees are minimal compared to physical cards of APB.
🪙 Transaction Charges
| Service | Free Limit | After Free Threshold |
|---|---|---|
| Cash Deposits | ₹10,000/month | 0.5% of value (min ₹25) |
| Cash Withdrawals | ₹25,000/month | 0.5% of value (min ₹25) |
| IMPS / NEFT / RTGS Transfers | Charged per RBI/IPPB schedule – small amounts | |
| SMS Alerts | ₹0.25 + GST per SMS (capped) |
📌 Unlike APB, IPPB gives a free basic account without AMC, and many everyday transactions are free within monthly caps.
🧾 3. Account Closing: How It Works
📴 Airtel Payments Bank
- Empty Your Account
- Withdraw or transfer all funds.
- Contact Customer Support
- Through Airtel Thanks App or phone support.
- Submit Closure Request
- Often via in-app request or email.
- Settlement
- Bank may take a few days to close and settle any pending charges.
❗ Some users report that closing the account can feel complicated if there are pending charges, and customer care may ask you to clear those before closure.
📭 India Post Payments Bank
- Visit Post Office or Use App
- Request closure in person or through the app.
- Zero Closure Fee
- Generally no closure charges for regular accounts.
- Settle Outstanding Fees
- Any pending card or service fees are deducted before closure.
IPPB’s closure process is generally seen as simpler with minimal charges.
🆚 4. Feature Comparison – Side by Side
| Feature | Airtel Payments Bank | India Post Payments Bank |
|---|---|---|
| Zero balance account | ✔️ | ✔️ |
| Mobile app opening | ✔️ | ✔️ (app or branch) |
| Physical debit card option | ✔️ (paid) | ❌ (virtual/QR only) |
| UPI / IMPS transfers | ✔️ | ✔️ |
| Cash deposit free limit | Smaller freebies, charges after threshold | ₹10,000/month free |
| Cash withdrawal free limit | ₹10,000/month free (for savings) | ₹25,000/month free |
| Debit card fees | Higher (₹199+ AMC) | Lower (₹25) |
| SMS charges | ₹0.35/SMS + GST | ₹0.25/SMS + GST (capped) |
| Account closure charges | Varies (may require service) | Usually free |
📌 5. Which One Should You Choose?
👍 When Airtel Payments Bank Makes Sense
- You want a physical debit card for ATM use and POS payments.
- You prefer fully app-based account opening.
- You are okay with periodic small fees for maintenance and alerts.
👍 When India Post Payments Bank Makes Sense
- You want very low charges and minimal hidden costs.
- You prefer government-linked banking with post office access.
- You don’t need a physical ATM card but still want UPI/IMPS and cash transactions.
