The Department of Posts (Indian Post office) submitted application before the RBI for a license to offer full-fledged banking services.
‘We have approached RBI today and hopefully having met all the conditions of RBI, an in-principle approval might be given. If it is given, I think, it will be a revolutionary step because it will bring banking, subject to Cabinet approval, to the doorstep of the ordinary man in this country,’ Telecom and IT Minister Kapil Sibal told PTI.
India Post plans to start banking operations in 50 branches, a key official said.
The official said all the initial work on applying for a banking license to RBI has been completed and the only task left now is to formally submit its application.
The deadline for submitting applications is July one and in between only two working days are left.
“Our officer is in Mumbai and we will file the application before the deadline,” the official said.
When asked that it would be too costly an affair to convert a post office into a bank, the official explained that both post office work of India Post and banking operations will simultaneously exist.
She said India Post can always squeeze a little space in its existing post offices. “We can give the bank a completely different branding and so the bank and post office can coexist ,” she said.