Department of Posts has decided to enter banking business with the Reserve Bank of India all set to grant new bank licences to entities with credible track record.
The Postal Department,which has a strong base in the rural areas with its 1.55 lakh post offices in the country.
Initially,Post Bank of India,may offer service in the 24000 district level head post offices.
They are to set up 1000 ATMs.Post Bank will not only take care of the banking needs of the rural poor but also converge with micro-insurance and micro-remittance services of the Department of Posts.
The Department of Posts has a large net work of savings bank with 26 crore operational savings accounts in post offices as on March,2012,having deposits worth Rs.1.9 lakh crore.