Indian post is planning to issue debit cards to their customers and install ATM Centre in the post office to come in the race of banking activities. Indian post is planning to set up at least 1000 ATM center initially for this purpose by set up a subsidiary PBI (Post bank of India). India post has the large network in India in rural as well as in urban areas which has around 1.5 lakhs centers. Giving the ATM facility will increase the transactions as well as increase the network of India post.
India post is also planning to introduce core banking solutions for its customers in which one can deposit or withdraw the money in any branch of post office. Generally we can see the long queue in the post office of the people who wants to deposit or withdraw the small amount. ATM will surely reduce the burden for these transactions.
According to IT professionals, setting the core banking solutions in 1000 branches will cost around 2000 crore for India post including software, postal services and banking services.
India post is currently giving some of the banking services like fixed deposit, recurring deposit, loans, pension payments and money transfer services. India post is also planning to tie up with the banks to use their ATMs free of charge to their customers.
RBI is not happy with this move. According to RBI, setting ATM is allowed only to bank. If India post is planning to setting up, it should be in complete purview of RBI with regulation and transactions purposes.