Friday, August 21, 2015

Government committed to reviving postal department: Ravi Shankar Prasad

NEW DELHI: Communications Minister Ravi  Shankar Prasad today said the government will revive the postal department  by using over 1.5 lakh post offices for furthering financial inclusion and  payments bank is a step towards it.

The Reserve Bank of India has granted 'in-principle'  approval to Postal Department to set up payments bank.

"We have to make  all the preparations in 18 months, which we will do. The Modi government is  going to revive the postal segment and post payment bank is an indication to that," Prasad told reporters here.

He said that the 1.50 lakh post offices from Kashmir to Kanyakumari  will play an important role in financial inclusion.

Prasad said since  becoming the Communications Minister, he has tried that postal department should  move forward.

"You know in e-commerce, postal department is moving  forward, they have done business of about Rs 600 crore in the last 2 months," he  said.

The government will soon give handheld devices to all rural post offices, he  added.

The payments bank licence will enable the Department of Post (DoP) to offer banking services to the  masses through its vast network of 1,54,000 post offices, of which 1,30,000 are  in rural areas.

As per RBI  guidelines, payments bank would offer a limited range of products such as demand  deposits and remittances. They will not be allowed to undertake lending  activities and willinitially be restricted to hold a maximum balance of Rs 1 lakh per customer.

They will be allowed to issue ATM or debit cards as other prepaid  payment instruments, but not credit cards.

Meanwhile, regarding  electronic manufacturing the Minister said, under MSIPS scheme proposals worth Rs 30,000 crore have come and  approval has been given to around Rs 12,000-13,000 crore.

Source:
http://economictimes.indiatimes.com/

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