The interministerial committee which has been set for financial inclusion has recommended the Indian Postal service to bring its postal savings bank (POSB) account services to a larger platform in terms of technological development. The committee feels that technological advancement would make it easier to take the low cost banking services of Indian Post to the rural areas.

Large infrastructure costs always prove to be a hindrance in the penetration level of banking services. So the committee has suggested Indian Post to enter into agreements with IT vendors and thus formulate a platform wherein core banking solution (CBS) can be incorporated.

The department has been suggested to provide no frill accounts through its 1.55 lakh branches and thus reach those areas which have not yet been touched by banking services.

"With the transaction costs getting very high for taking financial services to the rural areas, such technological collaboration with institutions which have an embedded infrastructure helps in bringing costs down," said Rana Kapoor, managing director, Yes Bank.

The 13th finance commission has proposed Rs 3000 crore to be spent for the purpose of allowing incentive of Rs 100 to every Indian resident in the BPL category who enrolls himself with UID.

"India Post, with its ubiquitous reach should actively position itself to offer a low cost lightweight bank account to anyone enrolling for a UID," the committee said in its report.