India Post Will Transform Into World’s Largest Banking Network With 5000 ATMs!
Yesterday, we had reported about Paytm’s ambitious plans to launch their Payment Bank as they are planning to open 20 crore new bank accounts within a year. They have already allocated a budget of Rs 400 crore to promote their banking operations.
It seems India Post, another entity which has been given ‘in-principle’ approval for launching payment bank has some bigger, bolder plans for the same.
IT Minister Ravi Shankar Prasad has declared that India Post shall transform into world’s largest banking network, as they will be launching 5000 ATMs across the country.
Yesterday, Union Cabinet approved the proposal to launch India Post’s Payment Bank, thereby removing the last hurdle in the process. As per reports, India Post shall launch their banking operations by March, 2017.
Minister Prasad tweeted, “India Post #PaymentBank will set up 5000 ATMs across the country. It will be the largest banking network in the world.”
India Post #PaymentBank will set up 5000 ATMs across the country. It will be the largest banking network in the world.
— Ravi Shankar Prasad (@rsprasad) June 1, 2016
India Post’s Payment Bank: A Game changer?
As per Minister Prasad, India Post’s entry into the banking domain would be a gamechanger. There are 1.54 lakh post offices spread across India right now, whose reach and penetration goes deep inside rural hinterland.
Once each of these post-offices would start offering banking operations, then it would unleash a new wave of financial inclusion never witnessed in India.
He said, “It’s going to be a game changer. There are 1.54 lakh post officers. And our network will be the largest in the world. Even bigger than State Bank of India.”
When combined with the report of massive digitalization of all 1.54 lakh post offices at an expenditure of Rs 4909 crore, then it certainly becomes a game changer.
Besides, all these post offices are being geo-tagged using Bhuvan, which is a GIS tool developed by ISRO.
India Post Will Sell Banking Products
IT Minister Prasad also shared the fact that India Post Bank will aggressively sell financial products as well. Infact, as the reach and power of India Post’s new banking platform is spreading, leading financial product companies have started approaching Indian Govt. for a possible partnership.
Minister said, “50 top names are here including Barclays and others. Talks are on and a huge matrix will be created,”
Even Paytm is looking for churning out revenues via selling financial products like wealth management, insurance and more.
As of now, Airtel Money-Kotak Mahindra Bank JV is poised to open their first Payment Bank outlet, as RBI has allocated payment bank license to them.
It would be really interesting to observe how Payment Bank eco-system changes India, with Paytm, India Post and Airtel, all vying for attention.