Expects the fund to be cleared in two months
The Department of Posts (DoP) will approach the Cabinet within two months for raising Rs 292 crore from the public investment board to set-up a payments bank,
for which it has already got the RBI approval.
for which it has already got the RBI approval.
"The DoP is going to take approval for Rs 292 crore fund from Public Investment
Board (PIB) after which it will be submitted for Cabinet approval.
We expect the fund to be cleared in two months," an official source told PTI.
Payments bank licence allows companies to collect deposits
(initially up to Rs 1 lakh per individual), offer Internet banking, facilitate money
transfers and sell insurance and mutual funds. Besides, they can issue ATM or debit
cards, but not credit cards.
The postal department had earlier tried for a Rs 632-crore fund from government
for full fledged banking services but it was not cleared by the PIB.
Government has in-principle agreed to the entry of Postal department in banking
services through the payments bank route.
"The DoP expects to roll out payment bank services by March 2017. There are .
no major infrastructure issues. Only we need to set up a data centre and
disaster recovery centre which will be done soon," the official said.
The Department is also in the final stages of appointing a consultant that
will guide it in setting up a payments bank.
According to another official source, the Department may go for a hybrid
model under which about 600 branches will be directly operated by
payment bank staff in post office premises and transactions in other parts
of the country will be supported by its staff
