Payment bank license has been issued to India Posts, by RBI which permits them to roll out commercial operations, under the permit.
This is the third entity to receive official communication from RBI for setting up the Payment Bank, the previous two being Bharti Airtel and Paytm. What are the services available through this Bank? Let us see:
- Mobile firms, super market chains and others will now cater to the requirements of individuals and small businesses.
- The activities that can be done through this bank would be restricted to Accepting Deposits, Remittance Services and Internet Banking and other services specified specifically.
- Mr. A P Singh is appointed as the MD and CEO of Indiapost.
- The first payment bank of India Post will come up at Ranchi Post Office (GPO) has been inaugurated by the Finance Minister on Monday the 30th January 2017.
It is pertinent to add here that out of 11 licenses granted by RBI last year for setting up Payment Banks, Airtel has launched its commercial operations with an investment of Rs. 3000 crores and with an offering of 7.25 percent interest on deposits in addition to the benefit of transferring free of cost money from Airtel to Airtel numbers with in the Airtel Bank. Also it is possible to transfer money to any bank in the country. Paytm has a proposal to invest Rs. 400 crores initially and is backed by Chinese e-commerce major Alibaba.