India Post to launch payment bank by March 2017

India Post is expected to launch its payments bank by March 2017. 

While speaking at the Good Governance Week Celebration, Communication and IT Minister Ravi Shankar Prasad said 40 international financial conglomerates, including World Bank and Barclays, have shown interest to partner with the Indian Postal Department for the payment bank.

The Reserve Bank of India had granted in-principle approval to 11 applicants, including Postal Department, in August to set up payments banks. 

Other companies to receive an in-principle nod were Reliance Industries, Aditya Birla Nuvo, Vodafone, Airtel, Cholamandalam Distribution Services, Tech Mahindra, National Securities Depository Limited (NSDL), Fino PayTech, Sun Pharma's Dilip Shantilal Shanghvi and PayTM's Vijay Shekhar Sharma.

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The in-principle nod granted by the RBI was valid for 18 months, when it was issued in August this year, during which time the applicants have to comply with the requirements under the guidelines and fulfil the other conditions as may be stipulated by the Reserve Bank," RBI said in a statement.

The Payments Bank will be set up as a differentiated bank and shall confine its activities to acceptance of demand deposits, remittance services, Internet banking and other specified services. It will not indulge in any lending activities.