Shri Kapil Sibal Addresses Economic Editors’ Conference 2011 : - Detailed Project Report For Postal Bank to be Finalized in Next Six Months

One organization and sector which is rarely talked in public but which is equally important for empowering the common man is Postal Department. With its network of 1.55 lakh post offices and wide range of financial, mailing and insurance, post offices in India have the enormous potential to join and ride on the ICTE agenda. To enable post offices to serve the 21st century Indians, reform agenda is underway

“One, Indian Post Office Bill 2011. To reform and open the Indian Postal Market, which will ultimately result in a vibrant industry and satisfied customers. The bills aims to open the Indian postal market with 50 gm privilege to India Post for a maximum of 15 years, registration of couriers by an independent registration authority and USO of postal sector to be borne wholly by the government. Discussions with stakeholders ( couriers, industry bodies and government agencies) is underway and bill will shortly introduced in the Parliament for approval.

“Two, IT Modernization Project. It has been approved by the Cabinet and essentially involves

• Computerization and networking of 1.55 lakh post offices.
• Core banking solution for Anytime Anywhere Banking through Post Offices with ATM facility
• Delivery of banking, insurance and mailing services in rural areas through hand held device.
• Postal Network to deliver a host of retail ( banking, financial and e-com services) with technology enabled  solutions
• Post Offices to become hub of social security payment through digital network

“Three, setting up of Postal Bank of India – Detailed Project Report will be finalized in next six months. This will enable India Post to extend micro credit and other loans through vast network of 1.55 lakh post offices. Coupled with other financial services like micro remittance, micro insurance and micro pensions, postal bank of India will help to achieve the goal of financial inclusion in India

“Four, Commercialization of Postal Network in India, to ensure that a large number of financial, insurance and physical goods and services are delivered to the common man though India Post