PM Narendra Modi to review India Post Task Force report tomorrow

NEW DELHI: Prime Minister Naredra Modi will meet Telecom Minister Ravi Shankar Prasad tomorrow to review report of the India Post Task Force that was set up to suggest ways for turning around the world's largest postal network.

The meeting will focus on India Post's new role relating to banking, insurance and eCommerce operations, a source in the government said.

"Prime Minister will meet Prasad tomorrow to review the India Post Task Force report and deliberate on ways to leverage its huge network for banking, insurance and eCommerce operations," the source added.

The government is planning to utilise the huge resources at the disposal of India Post to provide cost-effective and innovative solutions to the citizens like financial services using digital connectivity, the source said.

The idea is to enable the postman in rural areas to provide services like savings and insurance, normal postal operations and also value added services like accepting payments of various services as well as registration of data.

Modi had set up the Task Force in 2014 to leverage the postal network in India and to enhance the role of India Post in financial inclusion, among other services like delivery of goods for eCommerce firms.

In December last year, the Task Force had submitted its report to Prasad. It noted that with its Rs 6 lakh crore in deposits, India Post is second only to the country's largest bank SBI.

The report suggested that the government should set up a holding company under the Department of Posts for immediate roll out of banking, insurance and e-commerce services by the 1.55 lakh strong postal network.

The holding company should have five different verticals, and three of them -- banking, insurance and e-commerce -- can start working immediately.

It added that e-commerce could be the second largest activity after banking that DoP can foray into for emerging as one of biggest players in the world.

The panel also suggested establishing Post Bank of India as a separate entity with a branch in each district in the first three years with initial capital of Rs 500 crore to be funded by the government.

Post Bank of India and Prime Minister's Jan Dhan Yojana can compliment each other for financial inclusion, former Cabinet Secretary TSR Subramanian, who headed the task force, said.