Restructuring the department of post for financial inclusion and efficiency
A corporate structure for DoP may allow different wholly-owned subsidiaries to carry out specific commercial activities
The Reserve Bank of India (RBI) recently gave a licence to India Post to function as a payments bank. Does it change anything for the people? Post offices in India have already been working as payments banks. Individuals open accounts, deposit and withdraw money by cash or cheques and receive payments through them. All these transactions are meticulously recorded manually in their passbook. Post offices do not provide any loans or carry out any credit transaction. This has been in operation for more than a century and much before the RBI came into existence. So, what would change after the RBI’s licence?