Financial inclusion: New Post Bank of India is an excellent idea

.....It can bring vast unbanked sections of the population under the formal banking network. It already does virtually everything a bank does, except granting loans. Most post offices are already computerised and interest rates on small savings have been partly deregulated, so there is no reason why it cannot upgrade its operations and take up the full gamut of banking operations. There are enough examples all over the world, notably in Japan and Germany, of post offices successfully offering banking services. What about the strict norms laid down by the RBI for grant of new bank licences? Will India Post be able to make the grade?......

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