By 2017, your neighbourhood post office will start operating as a bank. The Union Cabinet has cleared a proposal for setting up of the Indian Post Payment Bank, which will become operational from March next year.
"By March next year we will launch payments bank of the postal department. It's going to be a game changer. There are 1.54 lakh [154,000] post officers. And our network will be the largest in the world. Even bigger than State Bank of India," said Communications and IT Minister Ravi Shankar Prasad.
Mr Prasad also said that during the discussions for deciding the modalities, 60 international consortiums had shown keen interest to partner India Post for third partner delivery for insurance and banking, among others.
"50 top names are here including Barclays and others. Talks are on and a huge matrix will be created," said Mr Prasad.
India Post has the largest network of core banking solutions branches in India. There has been a steady rise from 250-odd in 2014 to 22,000 at present.
The postal bank eyes to penetrate rural India via the postal department's 1.39 rural postal branches. In the first phase, 650 payment bank branches will be set up. Initially, the target was to create the architecture in three years but today at the cabinet meet, Prime Minister Narendra Modi asked the minister to finish work by September next year….The competition between India and China to dominate the global economy will be fierce — and interesting. They are approximately equal in population, but China is heavily wighted toward the aging and India toward the young, so India has a huge advantage demographically. Both countries are combine socialism and capitalism and will lead in forging a new "heterodox" system to replace the orthodoxy of neoliberalism as Western dominance declines. Presently, China's political system under market socialism with Chinese characteristics is much better organized than India's democratic but corrupt and some chaotic government apparatus, with different states taking widely different approaches. So presently China has the advantage in this regard.
Post Offices To Operate As Banks, Network To Be Largest In World: Government