NEW DELHI: Department of Posts has started inter-ministerial consultations for seeking Cabinet approval on around Rs 1,900 crore fund requirement to start Post Banks in the country.
"DoP will need around Rs 1,900 crore to start Post Banks in the country. This includes Rs 500 crore paid-up capital required under new banking licence guidelines and rest is for other capital adequacy norms that Post Banks will need to fulfil. Cabinet note has gone to various ministries to seek their views," a government official told PTI.
The Department of Posts (DoP) has plans to apply for banking licence to offer full-fledged banking services along with postal services through post offices.
The RBI has issued comprehensive guidelines for new bank licences. It has fixed July 1 as the last date for filing application by interested entities.
The DoP has proposed to start 50 bank branches in the first year and scale it to a total of 150 branched in 5 years.
There are around 90,000 bank branches in the country and provision of real-time banking services through postal network is estimated to triple the current banking network.