Post Bank of India

Post Bank of India

(Roadmap under preparation)

The Parliamentary Standing Committee on IT has told the Department of Post to pursue plans to start full fledged banking services under the India Post umbrella in consultation with the Ministry of Finance.
The Government has been discussing plans to allow postal department to function as a bank since it already offers a number of financial services.
But at present these activities are being carried out on behalf of the Ministry of Finance as an operative agent of the small savings scheme. Under the current laws, the postal department's mandate is limited to the collection and disbursement of the money deposited there in and maintain records.
Banks are governed by separate Acts which are different from what the Department of Post follows for carrying out banking facility.
The Standing Committee had suggested in its first report for adding the word ‘Bank' with India Post. The panel in its ninth report has once again reiterated that DoP should pursue the plan.
The DoP has informed the House panel that the proposal to set up Post Bank of India is at a conceptual stage.
The aim of the PBI is to provide full banking privilege to the rural poor who still do not have modern banking facilities and still have to depend on the informal sector for credit requirements. This is part of the 11th Five-Year Plan.
The DoP is currently undertaking feasibility studies in order to prepare a detailed roadmap for establishing the PBI.
A request for proposal has been floated to select an institute to study and design the roadmap.