DEPARTMENT OF POSTS ENTERING INTO BANKING SERVICES

BANKING SERVICES IN POST OFFICES -- RAJYA SABHA Q & A

GOVERNMENT OF INDIA

MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY

DEPARTMENT OF POSTS

RAJYA SABHA

UNSTARRED QUESTION NO.533

TO BE ANSWERED ON 27th FEBRUARY, 2015

BANKING SERVICES IN POST OFFICES

†533. SHRI BHUPENDER YADAV:                                                        

Will the Minister of COMMUNICATIONS AND INFORMATION TECHNOLOGY be pleased to state:

(a)       whether Government proposes to entrust banking related services to the Department of Posts;

(b)       whether all post offices in the country would also function as a bank; and

(c)        if so, by when this work is likely to be completed?

ANSWER

THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY

(SHRI RAVI SHANKAR PRASAD)

(a)       Yes Sir. The Department of Posts applied to the Reserve Bank of India for issuance of license for setting up of Payments Bank on 30.01.2015.

(b)       No Sir. The Government does not propose to convert all post offices in the country to function as a bank. However, Department of Posts applied for license for setting up a Payments Bank on 30.01.2015, which may utilize a part of existing resources /infrastructure of the Department.

(c)        Date of completion of the above work will be depended on the decision of the Reserve Bank of India.

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GOVERNMENT OF INDIA

MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY

DEPARTMENT OF POSTS

RAJYA SABHA

UNSTARRED QUESTION NO.547

TO BE ANSWERED ON 27th FEBRUARY, 2015

DEPARTMENT OF POSTS ENTERING INTO BANKING SERVICES

†547. SHRI RAM NATH THAKUR:

Will the Minister of COMMUNICATIONS AND INFORMATION TECHNOLOGY be pleased to state?

(a)       whether Government plans to establish Post Bank of India by converting the wide network of post offices spread across the country into commercial banks, if so, the details thereof;

(b)       whether the Department of Posts had expressed its intention before the Government of entering into banking services in the rural areas during a discussion on the suggestions of a task force constituted on India Post; and

(c)        if so, the details thereof and the action plan made by Government in this regard?

ANSWER

THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY

(SHRI RAVI SHANKAR PRASAD)

(a)      The Government does not propose to convert the wide network of post  offices spread across the country into commercial banks. The proposed Post Bank of India is envisaged as an independent entity.

(b)     During the discussions on the suggestions put forward by task force constituted for leveraging the Post Office Network, the Department of Posts expressed the view that it is ready to enter into the banking space with focus on rural areas.

(c)    Based on a consideration of all relevant aspects, the Department of Posts has submitted an application to Reserve Bank of India seeking License for setting up a Payments Bank as an independent entity.