IndiaPost has become the third entity after Paytm and Bharti Airtel to receive a final license from the Central Bank in order to kick start its payment bank operations, reported ET. The government has also appointed AP Singh as interim MD and CEO of the India Post Payment Bank.
AP Singh was formerly associated with the Ministry of Finance and was the Deputy Director General in charge of financial inclusion and payments systems at Unique Identification Authority of India (UIDAI).
As per the initial road map, each post office in the country will offer the post bank services. Currently, the department of post has an existing network of around 1,55,000 post offices.
Earlier this month, Airtel Payments Bank launched nationwide operations, offering 7.25% interest on savings bank balances, which is more than the maximum 7% paid by SBI on its fixed deposits. Bharti and Kotak Mahindra, which holds a 20% stake in the payments bank, would invest Rs 3,000 Cr. in the venture.
Payments banks can accept deposits from individuals and small businesses of up to Rs 1 lakh per account. And RBI had set a condition that formal license has to be obtained before 31 March.