The Department of Posts is likely to finalise plans for setting up the Post Bank of India soon to provide full banking services primarily to the rural poor who still depend on informal credit sources.
A detailed project report (DPR) is expected to be in place in a few weeks that would bring clarity on the organisational structure of the proposed Post Bank of India, besides clarifying relationship between the Post Bank of India and the Post Office Savings Bank, the Department of Posts has informed the Standing Committee on Information Technology in a written statement.
In July 2012, the Department of Posts has appointed an external consultant to execute the DPR. The assignment was given to one of the five shortlisted firms -- Accenture Services, Boston Consulting Group, Ernst & Young, KPMG Advisory Services and McKinsey & Co. The DPR was scheduled to be completed by December 31, 2012.
According to a report by the Standing Committee on Information Technology, the proposed Post Bank of India will be a profit making entity that would essentially help the Department of Posts in reducing its deficit.
The Standing Committee, in its report, has also suggested that the Post Bank of India should also provide ATM services in remote areas, besides taking core-banking facilities to the rural areas.
The Committee also asked the Department of Posts that it should establish the Post Bank of India within the 12th Five-Year Plan period.