The Reserve Bank of India has given the department of posts the licence to provide money changing service in the country. With this, the postal department will be able to offer foreign exchange services through its 1,54,000 branches. The detailed operational plans are being formulated for introduction of the service.
The move is in line with the recommendations of a five-member committee constituted by the department of economic affairs to review the mandate of the Post Office Savings Bank.
The department of posts has already taken a number of initiatives to diversify and expand its range of financial services. It had recently launched the international money transfer service in association with the US-based Western Union Financial Services. Through this tie up, remitting money into the country instantaneously from as many as 185 countries worldwide has become possible on a real-time basis.
The service, launched in April, is currently available at more than 500 post offices across the country and through it, $2 million worth of foreign exchange has already been remitted into the country.
The department has also initiated a partnership with IDBI Principal Asset Management Company to distribute the latter
