Budget 2021

Postal dept to use vast network for proposed payment bank

PTI New Delhi | Updated on January 24, 2018

Finance Minister Arun Jaitley today said the Postal Department will utilise the services of its vast network for the proposed Payment Bank.

“Government proposes to utilise its vast postal network with nearly 1.55 lakh points of presence across villages of the country.

“I hope the postal department will bring the proposed Payment Bank venture successfully so that it can contribute in the Pradhan Mantri Jan Dhan Yojana,” Jaitley said while presenting the Budget for 2015-16 in Parliament.

The postal offices will function as payment banks, he added.

The Government has applied to RBI for a Payment Bank licence for the Postal Department.

Payment Banks would be allowed payments and remittance services through various channels.

However, such lenders cannot issue credit cards or undertake lending activities.

There are 1,54,000 rural branches of post offices, while all other banks put together have about 35,000 rural banks, most of which are not in rural panchayat towns.

Published on February 28, 2015

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