IndiaPost becomes 3rd entity to receive licence to start payment bank operations
NEW DELHI: IndiaPost has become the third entity to receive a final
license last week from the Central Bank to start its payment bank
operations. Country’s largest telcom service provider Bharti Airtel and
digital payments firm Paytm are the other two to have received the
license while only Airtel has started operations so far.
The government has also appointed AP Singh has interim MD and CEO of the
India Post Payment Bank. A 1986 Indian Postal Service Officer he was
earlier Joint Secretary in the department of disinvestment, ministry of
Finance and Deputy Director General incharge of financial inclusion and
payments systems at Unique Identification Authority of India (UIDAI).
Singh was one part of the founding team that launched Aadhaar and was
stationed at the department of Post prior to UIDAI.
As per the initial road map, each post office in the country will offer
the post bank services. The department of post has an existing network
of around 1,55,000 post offices currently. ET had reported earlier that
IndiaPost plans to open 650 new branches for the payment bank. The
branches will be co-located with the existing post offices. The idea is
that the 650 branches will be in located in postal district headquarters
and all the branches under that particular head post office will be
enabled by the payment bank services. This will cover the entire network
of 155,000 post offices in the country.
Earlier this month, Airtel Payments Bank launched nationwide operations,
offering 7.25% interest on savings bank balances, which is more than
the maximum 7% paid by SBI on its fixed deposits. Bharti and Kotak
Mahindra, which holds a 20% stake in the payments bank, would invest Rs
3,000 crore in the venture.
Payments banks can accept deposits from individuals and small businesses
of up to Rs 1 lakh per account. And RBI had set a condition that formal
license has to be obtained before 31 March.
ALIBABA backed Paytm also said early in January that it has received the
final license from RBI and the company hopes to launch operations in
February with the first branch coming up in Noida, Uttar Pradesh.
While operation of Payment Banks such as Paytm are likely to be focused
on technology based differentiation, IndiaPost is banking on its huge
reach especially in the rural areas to be successful.
Source : http://economictimes.indiatimes.com/
