ATMs being installed in 1.25 lakh post-offices: Jayant Sinha in LS
→ Hitachi keen to partner Postal Department for payments bank: Ravi Shankar Prasad
Work is on to install ATMs and micro ATMs at over 1.25 lakh post offices across the country to help people living in far-flung areas to withdraw money,government said in Lok Sabha.
Responding to some members speaking about difficulties faced by people in distant places, Minister of State for Finance Jayant Sinha said that 'bank mitra', people hired temporarily at branches with inadequate staff, will also be of a big help in this regard.
Replying to a question about vacancies in public sector banks, he said during the Question Hour that all the backlog vacancies are being filled and added that over 60,000 people were recruited against the retirement of 38,000 people.
There were 38,254, 38,170 and 21,500 vacancies of officers in public sector banks in 2013-14, 14-15 and 15-16 respectively and the corresponding recruitment numbers were 35,549, 30,359 and 24,133.
Japan-based Hitachi is keen to partner with Postal Department for payments bank solutions, Communications and IT Minister Ravi Shankar Prasad said.
The President and CEO of IT Systems, Hitachi Ltd, Yutaka Saito, called on the minister and discussed about the possibility of Hitachi offering its banking solutions in a revenue sharing model to the Postal Department.
"I have heard them, they have already met the Postal Department people. I have asked them to make elaborate presentations. They have come with the idea of revenue sharing model to install the banking solutions in all the post offices in India. We will consider it," Prasad said after the meeting.
"I have asked the Postal Department to work out the details," he added.
Hitachi payment services offer banking solutions related to ATM, point of sale (POS), cash and deposit machines and card management solutions to all leading banks of the country.
"They are very keen to parter with Postal Department for payments bank solutions in the vast network of India's postal operations across the country and in rural areas," Prasad said.
The minister further said what is important is the technical upgradation of rural post offices to make payment bank a success.
"I have assured them that with Digital India opening up in India in a big way, there is enough scope for products, marketing, consumer base and above all innovation," he added.
The Reserve Bank granted in-principle approval to 11 applicants, including Postal Department, in August to set up payments banks.
As per RBI guidelines, payments banks would offer a limited range of products such as demand deposits and remittances. They will not be allowed to undertake lending activities and will initially be restricted to holding a maximum balance of Rs 1 lakh per individual customer.
They will be allowed to issue ATM or debit cards as also other prepaid payment instruments, but not credit cards.
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