Dept. of Posts applies for banking licence
TODAY'S PAPER » BUSINESS
NEW DELHI, June 28, 2013
The
Department of Posts, on Thursday, submitted an application before the
Reserve Bank of India (RBI) for a licence to offer full-fledged banking
services.
“We
have approached the RBI today [Thursday], and hopefully having met all
the conditions of RBI, an in-principle approval might be given. If it is
given, I think, it will be a revolutionary step because it will bring
banking, subject to Cabinet approval, to the doorstep of the ordinary
man in this country,” Telecom and IT Minister Kapil Sibal told PTI.
The RBI is in the process of granting fresh banking licences and has set July 1 as the deadline for applying.
The
Department of Posts has plans to start 50 bank branches in the first
year and scale it to a total of 150 branched in five years.
The
Department of Posts has started inter-ministerial consultations for
seeking Cabinet approval on around Rs.1,900 crore fund requirement to
start Post Banks. The total amount includes Rs.500 crore paid-up capital
required under new banking licence guidelines. — PTI
