Postal bank coming soon to India, say officials

Monday, June 8, 2015

Post offices are likely to turn into payment banks by late next month, reaching out to the unbanked section of the society under Prime Minister Narendra Modi’s Jan Dhan programme.

Top officials said they expected the RBI to grant a payment bank licence to India Post, which has a network of 1.54 lakh post offices.

Two years back, the finance ministry had stalled the move to convert post offices into retail banks in spite of the RBI’s backing.

Formal banks in the country have around 85,000 branches that have been stretched to their limit to serve Jan Dhan clients. However, analysis reveals that large swathes of the country still remain uncovered or have beneficiaries who are unable to access banking owing to the distance.

Source: Business World (link opens in a new window)

financial inclusion