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INDIA POST BANK – OUR DOUBTS

India post applied fullfledged Bank Licence in 2006. At that time Dr. USR was Secretary, Department of posts. RBI did not consider our requests then. Now the Government want to grant banking licence to public and private sector companies.

According to the Ministry of Finance, 26 Public and Private sector companies applied for banking licence, out of which, how many applicants are eligible for banking licence  is not known. Further Finance Minister said that there was no ceiling on number of new bank licence. 3rd July 2013 RBI Governor gave a statement to the press that not all eligible applicants may get banking licence. In another statement of RBI it was stated that India Post is a part of Ministry it cannot be considered as a private sector entity. India posts will have to permit corporate entity to be eligible for banking licence. In other words the Government (Postal) Department, will not become under RBI Purview for banking licence.

At present in our nation we have 14+6=20 Nationalised banks besides this nationalized banks, Foreign banks and private banks are there. However these banks have no branches in rural areas. Though we have 24 million accounts in post office such as S/B
A/c, Mis A/c, NSS A/cs, PPF A/c, senior citizen savings scheme, Cumulative time Deposits, FD and NREGA. We cannot convert in all post office immediately for Banking operations.

Deutsche posts is successfully running the banks with co-operation of German Government and its communication Ministry. In our Country our union Government Finance Minister and RBI are not supporting post office whole heartedly.

Under these circumstances Dept. of Posts applied banking licence on 1-7-2013 and also moved the banking need with the Government providing Rs. 500 crores as seed capital to India Posts for licencing purpose. This is an immediate paid up capital required under the licence norm for banking licence to be granted by the RBI.

Even if RBI permit us to open post banking, whether we can compete with nationalized banks, co-operative banks and Foreign banks, or Tatas, Birlas & Ambani will allow us to run the post bank successfully is not known. 

This is our doubt. Let us wait..