Indian Postal Deptt. to launch payments by next year

The Indian Department of Post will launch its payments bank by January next year and top management of the newage venture would be inplace by July, a senior official said today.

The Department of Post (DoP), along with 10 other entities, received inprinciple approval from RBI to launch payments banks in August last year. The ‘inprinciple’ approval is valid for a period of 18 months. “We (India Post Payments Bank) hope to hit streets by yearend or January next year because time for us is also very tight. Out of 18 months, we have have lost six months,” India Post Member for Banking and HRD, M S Ramanujan said at an event to mark 15 years of partnership with Western Union.

He said that India Posts will hire personnel from outside as well as deploy some of its existing workforce for the payments bank to be named as India Post Payments Bank (IPPB). “The top management of the IPPB should be in place by July,” Ramanujan said. While granting inprinciple approval, RBI had said that applicants would have to comply with the requirements under the Guidelines and fulfil other conditions during 18 months. On being satisfied that the applicants have complied with the requisite conditions, the central bank would consider granting to them a licence for commencement of banking business, it had said.

The DoP has received clearance for funds from the Public Investment Board (PIB) for the payments bank. It is in process to seek approval of the Cabinet Committee on Economic Affairs for setting up of the IPPB. The IPPB is also likely to facilitate payments of central and state governments as well as municipal dues and fees of various universities and educational institutions. (Economic Times)