- Financial inclusion
- The vision of the Indian Post Payment Bank
- Functions / Channels of Indian Post Payment bank
- India Post as banking Platform
- Current scenario of Indian Postal Services
India Post has not been granted a banking license within the current spherical of allocations. The Reserve Bank’s opinion is that the difficulty wants additional analysis and also the Government has to be consulted. Given the fact that industrial banks have recorded high non-performing assets, their earlier efforts at extending money inclusion can’t be simply replicated.
Therefore, banks might currently think about exploring prospects with post offices, with an abstraction reach, a high level of a charitable trust, a good client base, and usually well-revered employees.
To enhance money inclusion, post offices with a vital presence in rural areas supply a promise.
But to realize that, ought to Indian nation Post to metamorphose into a poster bank or explore prospects with banks affected by drooping assets? Internationally, several countries have tapped the communicating establishment for extending money inclusion. For instance, in Brazil, money inclusion got a lift once Brazil Post fashioned a partnership with money establishments. Some countries have even offered a banking license to their post offices (China, France, Morocco), whereas in other countries banking establishments have created operating arrangements to supply services through the post offices (Algeria, Italian Republic, and also the UK). However, a number of the necessary criticisms against creating a bank out of communicating establishment are lack of technology, totally different work culture and skill, and employees constraints like skills, coaching, and laptop attainment levels.
In India, the contribution of little savings, despite cooperative efforts by the govt. since 1951, has been relatively little compared to deposits with industrial banks, in the main attributable to the shortage of ability to avoid wasting and money attainment amongst the phase of the population that banks with post offices. Converting post offices into banks wouldn’t amendment that scenario. Incidentally, the nationalization of banks in 1955, 1969, and 1980 was initiated to reinforce banking penetration in rural areas, however that failed to meet with vital success, given the work culture and ability levels of banking employees.
The vision of the Indian Post Payment Bank
- Building the most accessible, reasonable, and sure bank for someone.
- Spearheading money inclusion agenda for underneath banked people (Annual report, DOP, 2018)
Functions / Channels of Indian Post Payment bank
- Prompt and simply accessible counter operations.
- ATM / small ATM facilities close to their house.
- Aadhar card primarily based mobile banking and net banking services at customers’ doorsteps.
- Postpaid instruments for customer’s convenience like mobile wallets etc.
- Direct profit Transfer like fund from disbursing agency to transfer subsidies to the individuals through their checking account.
- Doorsill banking means that money deposit, money withdrawal, balance inquiry, and Aadhar to Aadhar funds transfer (Department of post, 2017-18).
India Post as banking Platform
Banking services accessible at post offices, through time-specific extension counters of major industrial banks within the native space or the presence of business correspondents of banks, might cut back such prices and increase banking penetration. To initiate banking habits with the agricultural population, post offices might begin giving debit cards to account holders of communicating bank accounts additionally providing data on those accounts through watchword-protected net portals. Post offices might additionally facilitate the use of electronic cards, credit and debt, for communicating transactions for not solely convenience of the employment however additionally to encourage the use of banking facilities. This would enhance the money attainment and awareness of banking services for the unbanked population.
Banks might build arrangements with post offices for addressing remittances, as suggested by the Rangarajan Committee on money Inclusion in 2008. Similarly, banks can be invited to find their ATMs within the premises of the post offices. While the employment of plastic currency can build transacting easier and encourage banking habits among the unbanked population, it’ll additionally legitimize the economy and facilitate bringing down the demand for currency notes and scarce coins considerably. India Post has touched the lives of each Indian. To preserve its heritage and extend its glory, post offices needn’t become banks, however might think about a dependent business partnership with industrial banks to reinforce money inclusion and mobilize deposits.
Current scenario of Indian Postal Services
The Indian communicating services could be a heavily subsidized entity of the presidency of India because it is providing public interest primarily based services on a no-profit basis. A billion-dollar and budget has been assigned for modernization and IT initiation altogether types of communicating services like mail services, premium services, human resource development, estate management, and rural business, etc.
Government departments, like Railways, Posts, Airports Authority of Asian nation, major port trusts, and people that undertake industrial operations with development mandate, won’t come back underneath the extent of the new PSU privatization policy declared within the Union Budget 2021-22.