India Post wants to own a bank. This is a great idea. In onestroke, this can ensure that millions more will get access to formal credit, in one of the most under-banked countries of the world.
The biggest advantage for India Post, among the most enduring institutions set up by the British, is its huge network and customer base. Compared to roughly 1,00,000 commercial and rural bank branches in India, there are 1,55,000 post offices, a majority in rural and semi-urban areas. As a collector of smallsavings, it has experience in taking deposits â€” about Rs 6 lakh crore at last count â€” but not in lending. Abank licencefor onlyIndia Postwould mean that the network of bank branches would more than double in one stroke.