India Post received the payments bank licence from the RBI to start rollout of banking operations commercially under the permit.
India Post has received the payments bank license and the service will be launched as per schedule.
This is the third entity to receive payments bank permit following Bharti Airtel and Paytm.
The new banking model allows mobile firms, supermarket chains and others to cater to banking requirements of individuals and small businesses.
This bank will confine its services to certain specified ones including:- DD
- Remittances
- Internet banking
In 2015, RBI has granted in-principle approval to 11 entities including the DoP. The license is for setting up payment banks and proposed to provide licenses on tap basis in the future.
Of the 8 companies currently in the race to set up the payments bank, Airtel has launched its commercial operation across India with an investment of INR 3,000 crore.
It is offering interest rate of 7.25 per cent on deposits, free money transfer from Airtel to Airtel numbers within Airtel Bank, money transfer to any bank account in the country.
Paytm, promoted by Vijay Shekhar Sharma and backed by Chinese e-commerce major Alibaba, plans to roll out payments bank worth about INR 400 crore.
Others in the fray are Aditya Birla Nuvo, Fino PayTech, National Securities Depository, Reliance Industries Ltd and Vodafone m-pesa.
The interim MD and CEO of the India Post Payment Bank is AP Singh, the JS in the Department of Disinvestment and a member of the founding team that launched Aadhaar.
India Post: Know More- Indian name:भारतीय डाक
- Type: Agency of the Government of India
- Industry: Postal services, courier
- Founded: 1 April 1854
- Headquarters: Sansad Marg, New Delhi
- Secretary: B.V Sudhakar
- Services: Letter post, parcel service, EMS, delivery, freight forwarding, third-party logistics, deposit account
