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.
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