India Post has selected Deloitte to advise it on setting up a payments bank and an agreement between the two will be signed on March 14. The Public Investment Board has already approved the Rs 800-crore proposal of India Post and in 15 days, it will go to the Cabinet for final approval.
Trail run project for the payments bank is set to start from January and the full-fledged operations will start by March As many as 40 international financial firms including World Bank and Barclays have shown interest to partner the postal department for setting up the bank. India Post has 55 lakh branches across the country.
Brief about Payment bank:
The minimum capital requirement is Rs.100 crore. For the first five years, the stake of the promoter should be 40% minimum. Foreign share holding will be allowed in these banks as per the rules for FDI in private banks in India. The voting rights will be regulated by the Banking Regulation Act, 1949. The voting right of any shareholder is capped at 10%, which can be raised to 26% by Reserve Bank of India (RBI). Any acquisition of more than 5% will require approval of the RBI. The majority of the bank’s board of director should consist of independent directors, appointed according to RBI guidelines.
- The Department of Posts, trading as India Post, is a government-operated postal system in India; it is generally referred to within India as “the post office”. As of 31 March 2011, the Indian Postal Service had 154,866 post offices, of which 139,040 (89.78 percent) were in rural areas and 15,826 (10.22 percent) in urban areas.
- It had 25,464 departmental Post Offices and 129,402 Extra-Departmental Branch Post Offices. At the time of independence, there were 23,344 post offices, primarily in urban areas.
- The postal service is under the Department of Posts, which is part of the Ministry of Communications and Information Technology of the Government of India.
So lets do:
Who is the minister of Communications and Information Technology?
Source – The Hindu