Indian Postal banks will be game changer in financial sector: Govt

Secretary Department of Financial Services (DFS) Anjuli Chib Duggal said that launch of the Indian Postal bank would be a game changer and operationalisation of its 1.5 lakh branches would give a massive fillip to the Banking and Financial system in the country. 

Finance ministry sources added that the proposal which has been cleared by cabinet will be launched before March 2017.

“Launch of Indian Postal Bank is going to be a game changer for banking sector. Banks need to take advantage of such rapidly changing positive growth opportunities in the country and contribute further to development of nation” said Duggal at the 69th AGM of Indian Bank Association in Mumbai.  

She added that with so many additional Postal Bank branches on the ground and expansion of the ‘Bank Mitra’ network, not only would the financial inclusion  programmes of the Government get a boost, but it would also help develop last mile Banking operations in the country. She said that other established Banking Institutions should take advantage of the same. 

Meanwhile, Finance Minister Arun Jaitely said that the government was making all possible efforts to boost economic growth along with social security in an unprecedented manner through the enactment of various enabling legislations and institutional cum administrative reforms. The decision making process is being made more efficient and responsive he added.

“Banks in India need to be given top priority in order to support the growth possibilities in the country. The sector has, no doubt performed very well in the context of a non supportive global economic environment, but, it needs to show more progress in the coming year,” said Jaitley.