Financial Daily from THE HINDU group of publications
Saturday, Jul 30, 2005
Financial Daily from THE HINDU group of publications Saturday, Jul 30, 2005 |
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Financial Services Money & Banking - Information Technology Postal Dept preparing blueprint to set up ATMs Thomas K Thomas
New Delhi , July 29 THE Department of Post is making a blueprint for setting its own nationwide network of ATMs for the postal savings account-holders. According to the proposal, the account-holders will also be issued debit cards to undertake transactions through the ATM machines. The move is at a conceptual stage and details are being worked out. At present, the postal department has a tie up with banks like the UTI Bank to offer ATM services and Mastercard for the debit cards. If the proposal comes through, the DoP will have one of the biggest ATM networks in the country. However, DoP officials said that no time-frame has been fixed yet for the completion of the project. "The move is part of DoP's strategy to convert the postal network to a complete financial services provider. We have already written to the government seeking permission to become a full-fledged bank," said a DoP source. At present, DoP has to pass on the money collected from its various bank schemes to the Finance Ministry. The DoP gets only a commission on every transaction and is not free to decide on where to invest the money of its account- holders. The move to get into financial services is aimed at reducing the Budgetary deficit which stands in excess of Rs 1,400 crore. The DoP is aiming to become financially independent by the end of the 10th Five-Year Plan period. The postal network has been loosing money on most of its traditional postal services due to its universal services obligation (USO). DoP is also engaging consultants KPMG to review the subsidy element and to rationalise the USO.
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