“Digital Connectivity Has Become Better in Postal Department As Compared to SBI” : Ravi Shankar Prasad
Union IT and Communications Minister Ravi Shankar Prasad today said that the postal department has surpassed the country’s largest lender, SBI, in terms of digital connectivity even before its payments bank launch, .
He further added that “The core banking solution (CBS) or digital connectivity of the postal department has surpassed the State Bank of India’s digital connectivity.”
There are over 1.50 lakh post offices across the country, of which 1.25 lakh are in rural areas, since the department had embarked on CBS connectivity a few years ago.
The department is all set to launch a payments bank by March 2017.
SBI Chairman Arundhati Bhattacharya had in the past expressed reservations about the entry of payments banks.
The postal department has got in-principle nod to start a payments bank, along with 10 other players, including corporate houses like the Mahindras, the Birlas, Reliance Industries and telecom firms with a deeper distribution network such as Bharti Airtel.
The successful applicants have been given 18 months to start operations. They are required to present a final plan of operation to the Reserve Bank of India before final nod.
Speaking at the special session on IT and electronics, Prasad appealed all to invest more in the country, saying India will be a $1 trillion opportunity for digital companies in five years.
He elaborated that electronics will be a $350 billion industry while IT, IT-enabled services and e-commerce would bring in $350 billion and $250 billion for the communication sector.