LET THE POSTMAN TURN BANKER: INDIA POST DESERVES TO GET A BANK LICENCE
ET Bureau Jul 16, 2013, 05.00AM IST
India Post wants to own a bank.
This is a great idea. In one stroke, this can ensure that millions more will get access
to formal credit, in one of the most under-banked countries of the world.
The biggest advantage
for India Post, among the most enduring institutions set up by the British, is
its huge network and customer base. Compared to roughly 1,00,000 commercial and
rural bank branches in India, there are 1,55,000 post offices, a majority in
rural and semi-urban areas. As a collector of small savings, it has experience in taking deposits — about
Rs 6 lakh crore at last count — but not in lending. A bank licence for
only India Post would
mean that the network of bank branches would be more than double in one stroke.
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