In
what could intensify competition in the banking arena, India Post has drawn up
an ambitious Rs 4,900-crore plan to swamp the country with 2,800 automated
teller machines (ATMs) in major centres and handheld micro-ATMs in 1.3 lakh
rural branches by 2015.
Though
the division under the ministry of communication has applied for a banking
licence with the Reserve Bank of India, it has started the process of tying up
with banks, Mastercard and Visa for rolling out its ATM services.
If
the plans are implemented on time, India Post will have an outreach far
superior than any single bank and would be in a better position to meet the
government's financial inclusion plan.
"Irrespective
of whether we get a banking licence or not, the expansion and modernisation drive
will continue. We will have more than 2,800 ATMs by 2015 in major centres. In
case of villages, we are planning hand-held micro ATMs in 1.3 lakh
villages," an official told FE.
India
Post will call a tender through request for proposal (RFP) for the micro-ATMs
next month.
Last
week, India Post rolled out a pilot project
with core banking solutions in three post offices in Chennai. "All
the three POs have migrated to CBS. We will keep rolling out similar facilities
in other centres and by end of 2014, the entire country will be connected
through CBS," the official said.
The
entire expansion and modernisation drive entails an investment of Rs 4,900
crore for which cabinet approval has already been taken. The funds will come
from budgetary provisions.
Over
the 150 years of his existence, India Post has build the largest postal network
in the world with over 1.55 lakh post offices of which 90% are in the rural
areas. Apart from postal services, it has been a major outlet for small
savings, postal life insurance, money transfers, sale of mutual funds, foreign
exchange and even payment of pension and wages under the MGNREGA scheme.
It's
not just the reach as India Post is already one of the largest providers of
financial services with a deposit base of over Rs 5.53 lakh crore of around 22
crores investors. A major drawback in the way of its expansion plan is the
massive deficit that India Post is unable to wipe out.
During
2011-12, the deficit stood at Rs 5,800 crore, which was 8.5% lower than 6,346
crore in 2010-11.
Source : http://www.financialexpress.com
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