Now,Postal dept,IIFL vie for bank licencehttps://indianexpress.com/article/news-archive/web/now-postal-dept-iifl-vie-for-bank-licence/

Now,Postal dept,IIFL vie for bank licence

Two more aspirants on Thursday announced plans to apply for new bank permits. While the Department of Posts submitted its application

Two more aspirants on Thursday announced plans to apply for new bank permits. While the Department of Posts submitted its application to the Reserve Bank of India for a banking licence,financial services company India Infoline Ltd (IIFL) also announced that its board has approved a similar plan.

“We have approached RBI today and hopefully having met all the conditions of RBI,an in-principle approval might be given. If it is given,I think,it will be a revolutionary step because it will bring banking,subject to Cabinet approval,to the doorstep of the ordinary man in this country,” Telecom and IT Minister Kapil Sibal told PTI.

The move,comes after a long pending proposal for India Post to set up a bank that would take advantage of its vast reach and coverage as well as its existing financial services such as small saving schemes and postal accounts.

The Indian postal network has 1,54,822 post offices in the country. Of these,1,39,086 are in rural areas and 15,736 are in urban regions. The Department of Posts (DoP) has plans to start 50 bank branches in the first year and scale it to a total of 150 branched in five years.

Meanwhile,Mumbai based IIFL in a filing to the Bombay Stock Exchange (BSE) said,“The Board of Directors of the company at its meeting held on June 27,2013 approved the proposal for making an application to the Reserve Bank of India for a New Banking Licence.”