India Post draws up Rs 4,900-crore ATM network
plan
In what could intensify competition in the banking
arena, India Post has drawn up an ambitious Rs
4,900-crore (FE Photo: MZ Zulfi)
Raj Kumar Ray
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.
Courtesy : Financial Express
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