Functioning of post offices as banks
3153
. SHRI C.P. NARAYANAN
(a)
the reasons for not allowing Indian Post
Office system to function as a banking system to mop upmoney lying idle
with people while the declared policy of the Union Government is inclusive
development and extension of banking operations to all rural people;
(b) whether post would be
enrolled as one among the new banks with about 1,55,000 branches all over the
country and with a good track record of successfully running Post Office
Savings Bank for many years; and
(c) whether it is
possible to substantially improve the quality of service of post offices in the
process if so, the details thereof?
ANSWER
The
Minister of State in the Ministry of Finance (Shri Namo Narain Meena)
Department
of Posts raised a proposal for setting up the Post Bank of India and
providing banking services with a network of 1.55 lakh post offices with
special focus on rural areas and financial inclusion.
Reserve Bank of
India (RBI) has informed that all commercial banks have been constituted by the
Government by various Acts of the Parliament.
Hence,
to set up the Post Bank of India (PBI) by an Act of Parliament,
necessary legislation will need to be framed and passed by the
Parliament.
Or
to set up the Post Bank as banking company, the same would require a
banking licence from RBI as per RBI’s extant guidelines issued in February,
2013.
RBI
is of the view that it is useful to take up a detailed Cost Benefit
Analysis on the proposal.
In
addition, viability and strategic study, market research, business
plan and profitability analysis including business projections
for next 4-5 years needs to be carried out to assess the commercial viability
of the proposal.
The above information was submitted by Fin Min in
reply of undermentioned Rajya Sabha Questions
(a) to (c): **see above**
Source: Rajya Sabha Q&A [qref=191160]
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