NEW DELHI: India Post, the world’s largest mail delivery network, is carving out a separate vertical to manage banking services, a move that will help it win RBI nod for interoperability of its ATMs with those of PSU banks.
India Posts, which had last year won a licence to operate a payment bank, has not been able to move much on starting operations. “We wanted interoperability of the ATMs of Post Offices with other banks. RBI said we can allow it only if Post offices create a separate bank vertical because RBI has jurisdiction over only banks. The Postal department has taken a positive approach and created a separate vertical,” a finance ministry official said. The vertical will be based out of Bengaluru.
Interoperability will allow individuals to transfer money from their Post Office account to their accounts in any bank. Besides, the Post Office ATMs can be used for withdrawal of money from the bank accounts. The official, further, said the vertical will be created to operationalise the Post Bank licence and ultimately it would get merged suitably with the Post Bank.