DoP seek Cabinet nod to set up Payments Bank
The
Department of Posts (DoP) is expected to seek Cabinet nod within two months for
raising Rs.292 crore from public investment board to set-up Payments Bank, for
which it has already got the RBI approval.
“We
expect the fund to be cleared in two months,” an official source told PTI.
Payments
bank licence will allow 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 Department expects
revenue of over Rs.550 crore from PBI in first 5 years. The postal department
had earlier tried for Rs.632 crore fund approval from government for full
fledged banking services but it was not cleared by PIB.
Government
has in-principle agreed to the entry of Postal Department in banking service
through payments bank route.
“The
DoP expects to roll out Payment Bank services by March 2017. There are no major
infrastructure issue with the department. Only there is need to set up a data
centre and disaster recovery centre which will be done soon,” the official
said.
Consultants
The
Postal department computerised about 25,000 of its departmental post offices
but rural post offices will be provided handheld devices for digitalising
records.
The
Department is in final stages of appointing a consultant that will guide it in
setting up payment banks.
The
Payments Bank entity is proposed to have its own employees and IT
infrastructure. — PTI
The
DoP expects to roll out Payment Bank services by March 2017. There are no major
infrastructure issue with the department
