Indian Postal Dept. plans to offer banking services

The Postal department of India is planning to offer banking services through its full-fledged bank to be named Post bank of India.

Union Minister of State for Communications and Information Technology Shakeel Ahmed said that the postal department is talking with Reserve bank of India (RBI) for setting up full-fledged bank. The DoP is also planning to form a separate company to administer postal life insurance and rural postal life insurance after it comes under the purview of the Insurance Regulatory Development Authority (Irda). The DoP has launched a number of financial services, including a money transfer facility through a tie-up with Western Union. HDFC Bank will offer loan against postal securities such as national savings certificate (NSC) and Kisan Vikas Patra in Bengal.