Dear Comrades,
India
Post's plan to set up automated teller machines (ATMs) in its post offices may
fail to impress the banking regulator.
India
Post is in talks with the Reserve Bank of India (RBI) to set up ATMs. However,
since according to norms, only banks are allowed to set up ATMs, the central
bank is not in favour of allowing India Post to set up ATMs. According to
sources in the banking industry, if India Post set up ATMs, they should fall
under the RBI's purview for regulation purposes.
India
Post has proposed to set up a subsidiary, Post Bank of India, for providing
banking facilities. It has also identified nearly 1,000 post offices, out of
its 1.5 lakh post offices, where the ATMs would be initially set up.
The
sources said though RBI is uncomfortable with the idea of India Post setting up
ATMs, it is yet to formally communicate its apprehensions to the department of
post.
To increase
efficiency and profitability, the department of post had planned to introduce
banking solutions and set up ATMs and debit cards for its customers. It also
plans to introduce core banking solution by 2012, and has initiated the process
of modernising information technology (IT) during the current financial year.
The cost of the IT modernisation project is estimated at around Rs 2,000 crore,
which includes an integrated, modular software solution, covering postal
operations, banking and insurance services.
The
department of post also has plans to tie up with banks to help its customers
use their India Post debit cards at ATM machines. It has also submitted a plan
to the finance ministry for approval. The department aims to offer banking
services through India Post in unbanked rural areas that lack formal financing
facilities.
India Post already offers financial services, including post office
savings schemes, postal life insurance, pension payments and money transfer
services.
business-standard.com
