Indian Post Bank only deserves a bank license

Out of the 26 applicants for the bank licenses, the only applicant which deserves to be favorably considered is perhaps India Post Bank. They can easily comply with  the  requirement of spreading their wings to rural and semi urban centers as they are already in existence in these centers. Besides,they have an easy access to all categories of people, whether, they are poor or rich, illiterate or educated,employed or unemployed,farmers or non farmers, laborers or white collared employees etc. They do not require heavy infrastructure investment in the initial years as they have a fairly very good set up in terms of, building, staff and technology. The main requirement of the Reserve Bank that the new bank should intensify Financial inclusion and achieve the target as desired by the Reserve Bank can be easily complied with only by the India Post Bank. It is easy for the India Post Bank to ensure 100 % Financial inclusion a  reality than on paper as is done by other banks in the field. Further Financial literacy which is the foundation for the financial inclusion to make it meaningful and result oriented can be easily achieved if India Post Bank is given the license. Being a Government institution, and having earned a very good name and reputation for a pretty long period for its dedicated service , it is only proper that this institution should be allowed to be converted into a bank . Once it becomes a bank and starts its operations, even the Regional Rural Banks which have failed to deliver can be considered for a merger with the India Post bank so that it gets strong and healthy to make the banking a reality among the masses. The views of the author are fantastic and seem to have come out of his experiences of the intricacies of banking, banks' failure to achieve financial inclusion etc. India Post Bank foots the bill most appropriately and can give a boost to rural savings and rural development, the need of the hour.

Dr.T.V.Gopalakrishnan

( this comment is in response to an article New Bank Licensing Derby that appeared in Business Line dated 12/7.07).