Dear Comrades,
The department of posts is expected to receive the cabinet approval for
setting up Post Bank of India to enter the banking sector, Suneeta
Trivedi, member, Postal Services Board, department of posts at the
ministry of communication & information technology said.
Speaking on the sidelines of the 32nd Skoch Summit, she expressed the confidence that the Post Bank of India getting the RBI licence for the new banks.
Early this week, RBI had issued clarification on the new bank licences, the first batch of which is expected to be issued by the end of this financial year.
Several big corporates including Tatas, Birlas, Bajajs and NBFCs such as Srei are interested to enter the banking sector, after RBI issued entry norms for new players.
Trivedi said though the department has 1.56 lakh post offices network with most of them in rural areas, was best qualified to become a bank. According to RBI, the new banks should have 25 per cent of the branch network for the new rural areas.
Trivedi said only a certain number of post offices will be converted into a full-fledged bank and the focus on Post Bank of India will be on small and medium enterprises (SMEs) sector.
According to RBI, the new bank would be required to open at least 25 per cent of its branches in unbanked rural centres. This would mean that out of the total number of branches, the bank opens in the first year of operation by setting up new branches and by converting the existing branches of NBFCs into bank branches, 25 per cent of branches have to be in unbanked rural centres. This rule would apply in every subsequent year.
She said the postal department has already applied to the RBI for banking licence. The cabinet approval for Post Bank of India can be expected anytime, Trivedi said.
Speaking on the sidelines of the 32nd Skoch Summit, she expressed the confidence that the Post Bank of India getting the RBI licence for the new banks.
Early this week, RBI had issued clarification on the new bank licences, the first batch of which is expected to be issued by the end of this financial year.
Several big corporates including Tatas, Birlas, Bajajs and NBFCs such as Srei are interested to enter the banking sector, after RBI issued entry norms for new players.
Trivedi said though the department has 1.56 lakh post offices network with most of them in rural areas, was best qualified to become a bank. According to RBI, the new banks should have 25 per cent of the branch network for the new rural areas.
Trivedi said only a certain number of post offices will be converted into a full-fledged bank and the focus on Post Bank of India will be on small and medium enterprises (SMEs) sector.
According to RBI, the new bank would be required to open at least 25 per cent of its branches in unbanked rural centres. This would mean that out of the total number of branches, the bank opens in the first year of operation by setting up new branches and by converting the existing branches of NBFCs into bank branches, 25 per cent of branches have to be in unbanked rural centres. This rule would apply in every subsequent year.
She said the postal department has already applied to the RBI for banking licence. The cabinet approval for Post Bank of India can be expected anytime, Trivedi said.
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