Expert committee
recommended to create Post Bank of India through an Act of Parliament
The expert committee appointed by The Prime Minister Naredra Modi to
study the feasibility of Postal Bank in India on August has submitted the
report to The Communication Minister, Ravi Shankar Prasad on 04.12.2014.
The expert committee includes Kavery Banerjee - Secretary Department of
Posts, Rakesh Garg – Secretary Department of Telecom , RS Sharma -
Secretary Department of Electronics and IT , LC Goyal - Secretary rural
development, former SEBI chairman GN Bajpai and former Infosys board member TV
Mohandas Pai.
Following are the highlights of recommendations
1. Launch the Post Bank of India
through an Act of the Parliament and not by approaching the Reserve Bank of
India which would make it easier for the Government to take a decision even if
the RBI makes any objection.
2. Set up holding company fully owned
by the Department of Posts, with commercial subsidiaries for postal bank,
e-commerce, insurance, delivery of various government services including
Aadhar, ration cards and Kisan Vikas Patra, and distribution of third party
products, such as bill collections and payments.
3. PBI must be professionally managed
and operated, with credit and other risks being handled by experienced experts
hired from the market. In its own interest, operations must be fully in line
and compliant with RBI guidelines
4. An initial capital investment of
Rs 500 crore for the postal bank, which can come from the
government. After three to five years, the government can then
decide to raise additional capital via an initial share sale or involve private
equity after assessing the success of this project.
5. The postal bank will offer
comprehensive financial services including regular banking credit, deposit and
loans. To begin with, the PBI should give loans up to Rs 1 lakh and a second
loan will be granted only after the first loan is paid back.
Source : www.postbankofindia.org
