Postal Department may extend services in banking, insurance & e-commerce
Updated: Dec 05, 2014 11:10:10am
New Delhi, Dec 5 (KNN) A task force on leveraging the post offices network of the country had suggested setting up of three subsidiaries as a part of a holding company under the Postal Department under the Ministry of Communication and Information Technology for extending services in the fields of banking, insurance and e-commerce.
The report of the Task Force headed by former Cabinet Secretary, TSR Subramanian was submitted to the Minister for Communications and Information Technology, Ravi Shankar Prasad here yesterday.
The move is significant considering that banking and financial services are not available in over six lakh villages of the country. According to Subramaniam it was felt that a ‘Post Bank of India’ which is professionally organized would contribute to financial inclusion of the rural poor, and perhaps create over five lakh new jobs over the next 3-5 years.
The state governments, he said are also keen to implement the recommendations of the Task Force.
As per the task force’s recommendations, there will be five subsidiary companies called Strategic Business Units (SBU). In addition to the three subsidiaries for services in banking, insurance and e-commerce, one will take care of distribution of 3rd party products and services like providing e-services for general public for bill collections and providing of application forms, documents and certificates on commercial basis. The other subsidiary is for delivery of government services like Aadhaar ration cards, Vikas patras, etc. on agency basis, an official release said.
It was also proposed that each SBU will have a separate independent board to operate commercially as a profit centre. Each one of the SBU over the time may go for public participation through public issue. Further, a new postal law may be enacted to give statutory basis for these operations.
Prasad who received the report said that there will be a structured response to the recommendations of the task force on priority basis.
The task force had been set up to rediscover the potential of the postal department in the country. It is expected that the vast connectivity of the Postal Department would be fully exploited to be a part of the e-commerce boom in the country.
However, the Minister said that not a single employee of the postal department will be removed as a part of any reformation of the Department. He also said that there will not be undue increase in the price of the post card and other postal services that are mostly used by the poor. (KNN/ES)
The report of the Task Force headed by former Cabinet Secretary, TSR Subramanian was submitted to the Minister for Communications and Information Technology, Ravi Shankar Prasad here yesterday.
The move is significant considering that banking and financial services are not available in over six lakh villages of the country. According to Subramaniam it was felt that a ‘Post Bank of India’ which is professionally organized would contribute to financial inclusion of the rural poor, and perhaps create over five lakh new jobs over the next 3-5 years.
The state governments, he said are also keen to implement the recommendations of the Task Force.
As per the task force’s recommendations, there will be five subsidiary companies called Strategic Business Units (SBU). In addition to the three subsidiaries for services in banking, insurance and e-commerce, one will take care of distribution of 3rd party products and services like providing e-services for general public for bill collections and providing of application forms, documents and certificates on commercial basis. The other subsidiary is for delivery of government services like Aadhaar ration cards, Vikas patras, etc. on agency basis, an official release said.
It was also proposed that each SBU will have a separate independent board to operate commercially as a profit centre. Each one of the SBU over the time may go for public participation through public issue. Further, a new postal law may be enacted to give statutory basis for these operations.
Prasad who received the report said that there will be a structured response to the recommendations of the task force on priority basis.
The task force had been set up to rediscover the potential of the postal department in the country. It is expected that the vast connectivity of the Postal Department would be fully exploited to be a part of the e-commerce boom in the country.
However, the Minister said that not a single employee of the postal department will be removed as a part of any reformation of the Department. He also said that there will not be undue increase in the price of the post card and other postal services that are mostly used by the poor. (KNN/ES)
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