NEW DELHI: Finance Minister Arun Jaitley on Monday launched the India Post Payments Bank branches, saying the network of post offices can take banking operations to every doorstep.
"The postman connects every household. They can reach every house for banking activity. Banking can reach your doorstep. The network of post offices can make it a reality," Jaitley said after he with Communications Minister Manoj Sinha remotely launched the Raipur and Ranchi India Post Payments Bank branches.
As many as 1.55 lakh post offices in the country and the postmen will function as banks giving a major push to banking, he said.
"The impact of payments bank that were announced by RBI in 2015, will be felt now. Payment banks, will not have any geographical limitations. The telephone company stores will run as payments banks. The post office in the country will turn into bank branches," he added.
Jaitley said that the payments banks can give a considerable challenge to the conventional brick-and-mortar banks because of their low overhead costs.
"As compared to banks, the overhead costs of payments bank are very less because their infrastructure already exists and are making an alternative use of that," he said.
The Reserve Bank of India (RBI) had granted in-principle approval to 11 entities for carrying out payments bank operations. So far, India Post, Airtel and Paytm have received payments bank licenses from RBI.