DEPARTMENT OF POSTS TO SET UP INSURANCE FIRM IN 2 YEARS

NEW DELHI: The Department of Posts is working to set up an insurance company after launching of a payments bank and the parcel directorate, communications minister Manoj Sinha said.

“Departments of Posts is now reincarnating itself. After diversifying its business with parcel directorate and payments bank, the department has decided to set up insurance firm as a special business unit in two years,” Sinha said.

“The request for proposal to appoint a consultant for setting up insurance unit will be floated in the coming week,” Sinha said.

Prime Minister Narendra Modi launched India Post Payments Bank (IPPB) on September 1 that aims to take banking to the doorstep of every citizen by arming three lakh postmen and ‘Grameen Dak Sewaks’ with digital aids to deliver financial services.

IPPB, which will be available through 650 branches and 3,250 access points immediately, scaled to all 1.55 lakh post offices by December 2018, is like any other bank but with a smaller scale of operations and without involving any credit risk.

The freshly-minted payments bank will accept deposits of up to ₹1 lakh, offer remittance services, mobile payments/transfers/ purchases and other banking services like ATM/debit cards, net banking and third-party fund transfers. However, it cannot offer loans directly, or issue credit cards.