India Post in the second week of March 2016 selected Deloitte to advise it on setting up a payments bank. An agreement between the two was signed on 14 March 2016.
The Public Investment Board (PIB) has already approved the 800-crore rupees proposal of India Post. The proposal will be sent to the Union Cabinet within two weeks for final approval.
India Post payments bank will largely target unbanked and under-banked customers in rural, semi-rural and remote areas, with a focus on providing simple deposit products and money remittance services.
The pilot for the payments bank is set to start from January 2017 and the full-fledged operations may start by March 2017.
The Reserve Bank of India had granted payments bank permit to India Post, which is already into providing financial services and has 1.55 lakh branches across the country.
As many as 40 international financial conglomerates including World Bank and Barclays had shown interest to partner the postal department for setting up the bank.
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