Indian Government’s official postal framework, 'India Post' will now be transformed into India’s biggest banking network. The institution is over 164 years old and is regarded as one of the biggest distributed postal service providers in the world.
Various interesting advances have been taken into consideration which will lead to the transformation of India Post. The advancements will result in the development of digital banking operations on a large scale as well as make the institution, largest Indian bank in terms of branches and penetration.
The plan by the Government to bring India Post Payments Bank and merge it with Postal Network was on the cards for a long time and will now finally put into implementation.
According to the drafted plan by Ministry of Finance, India Post Payments bank will function along with the enormous system of 1.5 lakh post workrooms across the country which will make it the largest banking network across the country. Currently, State Bank of India (SBI) is India’s biggest bank with around 29,000 branches and 59,000 ATM’s.
The Indian Post Payments Bank (IPPB) will go to the administration of Reserve Bank of India (RBI) whereas India Post will go under the administration of Finance Ministry. Each one of the 1.5 lakh post offices will now function as a bank office for India Post. Amongst them, 90 per cent (1.3 lakh) post offices are situated in rural areas.
India Post aims to reach 34 Crore Saving A/c Users and provide them Digital banking services. Out of 34 crore India Post clients, 17 crores are those who use saving accounts while the rest are using monthly income schemes.
Initially, India Post will begin with 650 Payment Bank branches across the country but soon all of the 1.5 lakh post offices will turn into a bank office.
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