Even the International Finance Corporation, a member of the World Bank Group, has shown interest in picking up a stake in the business.
There are nearly 1.5 lakh post offices across the country, and 1.3 lakh in rural India.
A large-scale modernization drive across these branches, including computerization and the gradual roll out of core banking solutions and ATMs, has attracted big boys of the financial world who are looking at new opportunities in banking, mutual funds, insurance and money transfer.
They can deposit their money in government bonds and issue debit cards but not credit cards. These banks are expected to spread financial inclusion across the country and bring down cost of remittance and fund transfer.
The interest in partnerships with the postal department comes against the backdrop of the success that India Post has achieved after tying up with over 800 e-commerce companies, including Flipkart, Snapdeal and Amazon.Parcel revenue, which registered a dip of 2% in 2013-14, grew 45% in 2014-15 and a staggering 100% till February in 2015-16.Those seeking an alliance with India Post for banking products and services include SBI, PNB, BoB, Union Bank, and IDBI Bank. Foreign aspirants include Barclays Bank, Deutsche Bank and HSBC.
Transfort and Western Union from the US have lined up for a deal on money transfer.State-owned telecom company BNSL wants to strike a partnership for the mobile wallet business, while American financial services giant Visa has approached India Post for a pact on ATM and point-of-sale transactions.
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