The Department of Posts, trading as India Post, is a government-operated postal system in India. The process of post office operating as a bank will make its start very soon. The proposal for this task has been sanctioned by the Indian Union Cabinet and is most likely to start by March of next year.
India Post Payments Bank (IPPB) would share its partnership with banks, insurance and management organisation and launch its branches and network in rural and suburban places in India. According to India’s Communications Minister Ravi Shankar Prasad, “‘there are 154,000 post offices and India’s network will be the largest in the world, even larger than the State Bank of India”. The minister also informed that around 60 international consortium’s showed keen interest to partner India Post for third partner delivery for insurance and banking, among others.
India Post has the largest network of core banking solutions branches in India. There has been a steady rise from just 250-odd in 2014 to over 22,000 at present.
The postal bank also aims to penetrate the rural India and initially around 650 payment bank branches will be established. The postal department will use around 170,000 postmen and other ground postal staff and plans to provide the staff with approximately 130,000 handheld devices to turn them into mobile rural banks, which will be a huge upgrade. Indian PM Modi has asked the minister to complete the work by September next year.
A proposal is also underway to provide tablets and smart phones to the postmen.
India Post Payment Bank is likely to also facilitate payment of central and state governments as well as municipal dues and fees of universities and educational institutions.
These Post office payment banks will also support both ATMs and online operations through internet banking. This makes easy and fast service for customers to access their accounts and conduct transactions anywhere and anytime.