The Indian postal department is planning to offer banking services soon. According to a member of Postal services board, a proposal on this subject is in the advanced stages of approval.
On this matter, Mr. Kamleshwar Prasad, a member of the Postal Services Board , Delhi said "We are already providing a range of financial services as agency for financial institutes. However, we have the required infrastructure in place to launch our own banking services and a proposal to set up Post Bank is at advanced stage,"
On the ability of the postal department to handle the responsiblities of a banking institution, Mr. Prasad said, "We are in a position to deliver services of government social welfare schemes or any other services in the most efficient and reliable way at the lowest cost due to our reach," He furthur added that the postal department has sufficient workforce to carry out the new responsibilities. At present, the postal department has about 5 lakh employees.
The Indian postal department has a wider reach than any of the banking services provider in the country. The largest Indian bank, State bank of India, has a network of 12,500 branches whereas the postal services has a network of atleast 1.55 lakh post offices across India. In Gujrat alone, there are about 9,500 post offices.
At present, the services offered by the postal department include services like money transfer, pension payments, postal life insurance and savings accounts.