Coming soon, Post Bank of India

The postal department plans to enter the banking

business with the Reserve Bank of India deciding to

grant new bank licences to entities with credible track-record.

Consultant appointed

Sources said the Department of Posts, which has a strong foot

print in rural areas, has appointed Ernst and Young (E&Y) as

the consultant for the proposed ‘Post Bank’

“Ernst and Young is expected to submit a detailed project report

by April, after which all the necessary measures will be taken up

to apply for banking licence,” a source at the Ministry of

Communications and Information Technology told PTI.

The sources added that the Department of Post (DoP) might

need Cabinet approval for setting up Post Bank of India.

Of the 1.55 lakh post offices in the country, around 24,000

district offices may be ready to offer banking services in the

next two years.

The DoP is in process of setting up 1,000 ATMs.

“Post Bank shall not only take care of the banking needs of the

rural poor but shall also converge with micro-insurance and

micro-remittance services of the DoP,” the source said.

As per data shared with Parliament, there were over 26 crore

operational small savings accounts in post offices as on March

31, 2012, having deposits worth Rs.1.9 lakh crore.

Courtesy – The Hindu, 23^rd Feb, 2013