Sunday, June 17, 2007

Indian Post Office to start a full fledged Bank!

Indian Post Offices, who have more than double account holders than the number of bank accounts of all the banks together; who have the reach to even the remotest part of India with its network of 1.55 lakh post offices across the country has now decided to start a full-fledged bank.

The interest rates on deposits by banks is going on increasing. Owing to which, there has been an outflow of deposits from small savings to banks in urban areas, though in rural areas the situation is still the same with deposits from small savings.

Minister for Communication and IT Shakeel Ahmed said the postal department was in talks with the Reserve Bank of India (RBI) and Finance Ministry for setting up a full-fledged bank.He also said that the postal department was also in talks with the finance ministry for raising interest rates on small savings.

If this bank comes up, it will be a great competition for the banks. As mentioned, post offices have their reach to almost everywhere. And if it starts a Bank, people are sure to prefer it for its wide reach.

One more thing, which comes to mind when Indian Post Office comes up with some newer service is that, post is losing its existence. with the advancement in technology, letters are called things ancient world. The small share it had in the market have been undertaken by the courier services. So, post office is compelled to go for other services.
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