Postal dept awaits Ministry approval to start banking services

Bangalore, Oct 10 (UNI) The Department of Posts is awaiting approval from the ministries concerned to start banking service in post offices, Karnataka Chief Post Master Meera Datta said today.

Speaking after signing a MoU with private sector HDFC Bank to offer loan against postal securities, she said the face of the post office needs to be changed in the wake of letter writing habit coming down among the people. There was an urgent need to bring in diversity in postal department to put to use the skilled workforce.

''Communications Minister Dayanidhi Maran wants the department to begin banking services as a strategy of diversification. We are ready to do it. We are awaiting approval from the ministries concerned. We hope to start banking functions in a few month's time.

Post offices can also be used to market mutual funds,'' she added.

HDFC Bank Vice-President and Business Head Biju Pillai said that under the tie-up, HDFC Bank would offer loan against postal securities such as National Savings Certificates and Kisan Vikas Patras in the form of overdraft facility. The customers would be given cheque books and ATM/Debit card to operate the account. In addition, the customers could avail facilities like internet banking and phone banking, he added.

Interest would be charged only on the amount utilised by the customer and there was no need to give postdated cheques or make prepayment, he said.

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