Tag Archives: India Post

Post Bank of India is not yet dead !!!

As per Press Articles India Post did not receive a Bank License from Reserve Bank of India for its Post Bank of India, as the approval was pending before Cabinet Committee on Economic Affairs (CCEA) since January 2014.

This delay is blessing a disguise for NaMo Government. RBI Governor Dr. Raghuram Rajan’s talk at the Annual Day Lecture of the Competition Commission of India on May 20, 2014 at New Delhi indicated the plans for Post Bank of India.

Post Bank of India can be a Payment Bank only. Payment Bank can be described as Banks with a differentiated licence to take deposits and offer payment plus remittance services. The main difference between a Payment Bank and a full-fledged bank, is that a Payment Bank cannot provide Loans and also should invest all its funds in safe instruments viz Government securities.

In this context the proposed Post Bank of India, fits the criteria 100, as the Post Offices can be used outlets to raise deposits and make payments.

Another spinoff of Payment Banks is that commercial banks might be allowed to reduce the quantity of government securities held as part of SLR, as payments banks hold government securities for liquidity purposes.

Go Live – India Post ATMs’ Visit them now

India-post-ATM_FotorFinance Minister P Chidambaram inaugurated the first ATM of India Post network in Chennai on 27/02/2014 @ Head Post Office in Thyagaraya Nagar

This was followed by inauguration of two more ATMs in New Delhi on 28/02/2014 by Communications and IT Minister Kapil Sibal.  New Delhi ITO Post Office and New Delhi Kashmere Gate PO were chosen for this coveted honor.

The target is to deploy 2,800+ ATMs’ by March 2015.  AS of now, 64 lakh account holders spread over sixty-two post offices in Delhi, Uttar Pradesh, Tamil Nadu, Karnataka, Maharashtra, Assam and Andhra Pradesh, can access the India Post ATMs.

Shri Kapil Sibal said “Some people only talk about common man but we are among those who work for common man without making noise. This ATM is for ‘Aam Aadmi’ at a common man’s post officer. This is a gift for Aam Aadmi and I congratulate Aam Aadmi,” he said.

“The ATM will serve only Post Office customers for first 6-8 months. After that we will link it with ATMs of other banks. Thereafter customers of any bank will be able to withdraw money and our customer will be able to use other ATM,” Delhi Circle Chief Post Master General Vasumitra said.

The ATMs work on an outsourced model. The cash management, forecasting and loading will be done by the financial services system integrator through its ATM partner. However, physical cash will be supplied by post offices.

Under the India Post 2012 Project, ATMs shall be sourced on a lease model under the scope of the FSI (Financial Services System Integrator). ATM outsourcing includes the machines, ATM managed services, cash management and some part of site preparation.

 

India Post ATMs – Go Live in March 2014

Come March 2014, and India Posts’ first set of ATMs can be accessed by customers at T Nagar in Chennai and Gole Dak Khana in Delhi.

Greams Road Post Office-Chennai is running a pilot of Infosys Financle software. The CBS is a necessity for the ATMs rollout.

The ultimate aim of India Post is to issue ATM cards to all savings deposit holders at India Post. As on 31 March, the department was managing Rs.6.05 trillion of deposits, nearly half the deposit base of government-owned SBI, the country’s largest commercial bank, and double that of the largest private sector lender ICICI Bank. Of this, about Rs.2 trillion is under the savings scheme in 280 million accounts.

Out of the total 155,000 post offices, 139,040 are in rural areas. About 6,000 people are covered on average by a post office in rural areas and about 24,000 in urban areas, according to a 2011 estimate by the postal department.

Once the ATMs are in place, the post office savings bank account customers will be able to access their deposits through ATMs. At the same, time customers of other banks too will be able to access their accounts through the India Post ATM network.

India Post has applied for a banking licence, however irrespective of whether India Post gets a banking licence or not, the expansion and modernisation drive of its Financial services will continue.