India’s postal and telegraph department,
India Post is gearing up to become a full fledged bank in the near future as a committee
under former Cabinet Secretary TSR Subramanian is looking into the matter.
According to a top India Post official,
the government will decide whether they want to give Inida Post the nod based on the recommendations
of the committee.
India Post, which has been accepting
deposits for many decades and mobilising savings, already works like a payment
bank has plans to apply for a licence under the soon-to-be introduced 'payments
banks' category.
In support of its claim for becoming a
full-fledged bank, the postal department has termed its vast network of over
1.55 lakh post offices as the biggest strength, saying it will help deepen the
financial inclusion agenda of the government.
However, these banking aspirations have
faced opposition by many on grounds that India Post lacks experience in
activities like treasury operations, as also in dealing with technicalities
involved in running a bank.
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