The government is looking at setting up a Postal Bank of India which will have a structure that is distinct from other payments banks and will compete with universal banks. The new line of activity for the centuries-old department of posts is expected to help leverage the institution's valuable real estate infrastructure and distribution and, at the same time, further the government's plan of financial inclusion.
"In the coming year, we will have many new players in the banking eco-system, such as payments banks, small finance banks and possibly a postal bank competing with existinguniversal banks, regional rural banks, cooperative banks, and a variety of non-bank finance companies," said RBI governor Raghuram Rajan, outlining the developments in the central bank at an event to commemorate its 80th anniversary.
Speaking on the occasion, finance minister Arun Jaitley said, "It is the professionalism and ability of the central bank which has, indeed, served the country well. We are indeed proud of its performance." The finance minister said that a very large part of India's sovereign functions rests on the shoulders of the RBI.
"The management of monetary policy, inflation management, management of interest rates, regulation of banking system and management of public debt — these are among the functions which RBI has undertaken performed well."
Talking about financial inclusion, the finance minister said the Prime Minister's Jan-Dhan Yojana was a tremendous success and added that the next phase of the challenge was to provide a certain amount of social security to the holders of these accounts in terms of accident and life insurance and an alterative pension system for the under-privileged sections with the support of public exchequer, banking system and other institutions.
He said that the banking system and the RBI — as a regulator of the system — will have an important role in all these developments.
Source:-The Times of India
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