'Post Bank of India' seeks professional help

The Department of Posts has decided to hire a professional agency to prepare a roadmap for its proposed banking initiative.

The proposal to set up 'Post Bank of India' is at a conceptual stage, though. Requests for proposal to select an institute to study and design a roadmap for launching a post bank has been issued already, the telecom ministry has informed a parliamentary standing panel.

The ministry said the aim of establishing a post bank is to provide banking services to the rural poor who still do not have modern banking facilities and still have to depend on informal sector for their credit requirements.

The Planning Commission had allocated Rs 5 crore (Rs 50 million) during the 11th Plan period towards this purpose under the head of 'studies and miscellaneous expenditure relating to setting up of Post Bank of India'.

An appraisal memo detailing the action plan like feasibility studies, including foreign visits has already been approved by the government.

With a network of over 1.55 lakh post offices, the DoP already provides various financial services, including a post office savings bank, postal life insurance, pension payments and money transfer services.

Though capital investment for the bank is yet to be considered, sources say it is likely that the department could rope in public sector banks to pick up some stake in the proposed bank.