Postal Bank Wins Government Backing in India

Monday, January 12, 2015

The government is looking to take the legislative route by next month to finalise the setting up of the Postal Bank of India and will soon approach the RBI to consider the postal department’s application for a banking licence.

In a recent meeting chaired by Prime Minister Narendra Modi, the department of posts (DoP) said it was ready to become a universal bank, sources said.

According to a presentation given to the Prime Minister, the DoP, in consultation with the government, may approach the RBI this month to consider its original application for a universal bank, the source said.

“Simultaneously, modalities for the alternative of taking the legislative route to set up the Postal Bank of India (PBI) will be worked out in February,” the source said.

The meeting, which was also attended by communications and IT minister Ravi Shankar Prasad, discussed the proposals of the “Task Force on Leveraging the Post Office Network” and the way forward to implement the recommendations.

Source: The Telegraph (link opens in a new window)