17 entities evince interest in leveraging its vast network to extend their services
NEW
DELHI, DECEMBER 7: The
e-mail may have replaced the snail-mail but India Post has survived the
numerous obituaries written for it and become much sought-after once again on
the strength of its unmatched network.
After
being pursued by e-commerce firms for logistics and other support, the
country’s oldest postal service provider is now being wooed by banks and
insurance companies as it gears up for a debut in the payment banking business.
The list of those keen to tie up with India Post includes marquee names like
SBI, Bajaj Alliance, IDBI, YES Bank, HDFC and Axis Bank.
There
are 17 such banking and insurance companies who have shown interest to use the
postal network for delivering their services such as EMI collection and
insurance.
According
to government sources, these companies want to use the postal network by
partnering with the India Post Payment Bank, which got licence from the RBI
recently.
Sources
close to the development told BusinessLine that SBI could be the
first bank to join hands with the Postal Department. “SBI chief (Arundhati
Bhattacharya) and Kavery Banerjee, Secretary, Department of Posts, had a
meeting recently and they discussed to work hand-in-hand for providing services
to customers,” an official said.
Both
the heads — of the largest bank and postal networks — discussed how they can
leverage each other’s strengths and help extend financial services to the
disadvantaged, the official added.
“There
was a discussion also on how a postman can work as a bank agent in far-flung
rural areas where neither a bank branch nor a bank agent can go for
verification of loans. But with the Postal Department’s help, farmers and
students can get loans (for agriculture/education) without much hassle,” the
official said.
ATMs
at post offices
The
official said the government is also working towards banks installing ATMs at
post offices; the Department of Posts has a network of 1.55 lakh branches
across the country and more than 85 per cent are in rural areas.
But
it is evident that the banks are gung-ho about tying up with the Postal
Department as they will only stand to benefit. “This initiative will play a
pivotal role in bringing a large number of uninsured segments of the country
under the safety net and improving the penetration of insurance in the country,”
said TA Ramalingam, Chief Distribution Officer, Bajaj Allianz General
Insurance.
A
tie-up with payment banks like The India Post will provide insurers an
opportunity to distribute retail insurance solutions such as personal accident
and health insurance policies to their huge customer base, he said.
“This
will also enable insurers leverage on the payment bank’s strong distribution
network to take insurance solutions to the unrepresented segments in the
country, especially in tier-III cities and villages,” he added.
Source
:http://www.thehindubusinessline.com/money-and-banking/banks-insurers-keen-on-tying-up-with-india-post/article7958678.ece
