RBI Governor Raghuram Rajan hints at bank licence for India Post

NEW DELHI: Reserve Bank of India governor Raghuram Rajan has backed the postal department’s demand to set up a bank, even as the finance ministry has tried to block the move.

At the annual day lecture of the Competition Commission of India on Tuesday evening, the RBI governor, who is known for his candid comments, suggested that the ‘Post Bank’ could be given a limited banking licence that will be able to raise deposits and offer payment and remittance services. There will, however, be restrictions on investments and the entire amount would be have to be parked in government securities.

“…the proposed Post Bank could start as a payment bank, making use of post office outlets to raise deposits and make payments,” Rajan said.

Source : http://timesofindia.indiatimes.com/