India Post needs to reorganize its services first; banking can happen later! - Moneylife
India Post needs to reorganize its services first; banking can happen later! - Moneylife
When the idea of new bank licenses was first floated in 2010, I had commented in a finance newspaper that, financial sector reforms should get attention simultaneously, or after quickly issuing VIP licenses (these words were not used). Now an impression is being given to aspirants including India Posts that it is a ‘now or never’ stance from the authorities on the issue of new banks. Like any other business, starting banks also should be an ongoing process depending on need and policy considerations for the smooth functioning of the financial system. GOI and RBI should view the issue seriously and give a clear idea about the ‘banking policy’ including structural issues and expectations from existing and new banks. India Posts has a history of ‘customer satisfaction’ within the constraints and a hurried conversion of a portion of the business it is doing into ‘commercial bank’ before doing necessary groundwork will be suicidal.
M G Warrier
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