Postal department applies for banking license
Union Communications and IT Minister Kapil Sibal writes to Finance Minister, Pranab Mukherjee to expedite the process of granting license.
Banktech India News Network, 2/2/2012 10:30:34 PM
With a view to further diversify its operations and enter the
banking business, India's Postal Department has applied to the
Reserve Bank of India (RBI) for a banking license. Union
Communications and IT Minister Kapil Sibal who is also in-charge of
the Department of Posts has written to the Finance Minister, Pranab
Mukherjee to expedite the process of granting the license.
Speaking on the sidelines of a round table organized by FICCI
yesterday, Sibal said that a national postal policy targeting the
expansion and modernization of the postal network is also in works
and is likely to be announced soon. According to Sibal, the said
policy will help the department adopt a more financially viable
revenue model. “It would also provide affordable services at
all points in the country as part of its Universal Service
Obligation,” he added.
Should it be granted the banking license, the department would
have one of the biggest branch networks in the world which it can
use to offer its set of banking services, particularly in the rural
areas. Estimates suggest that India currently has 1.55 lakh post
offices, out of which nearly 95 percent are located in rural
areas.
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