NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News  » Business » Postal department to apply for bank licence: official

Postal department to apply for bank licence: official

Last updated on: June 27, 2013 17:21 IST

The government's postal department will apply for a licence to enter mainstream banking, a communications ministry official said on Thursday, the latest to join a host of companies vying for the permits.

India Post StampThe Reserve Bank of India, in an effort to improve access to banking services, issued guidelines

in February allowing any type of company to set up a bank. The deadline for submitting applications is July 1.

The postal department, part of the ministry of communications and information technology, has a network of more than 150,000 post offices across the country, with close to 90 percent of those located in rural areas.

Indian post offices already offer savings schemes and sell insurance and mutual funds. The department has long been mulling over whether it should enter the banking services sector.

Devidutta Tripathy in New Delhi
© Copyright 2018 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.