The Department of Posts, on Thursday, submitted an application before the Reserve Bank of India (RBI) for a licence to offer full-fledged banking services.

“We have approached the RBI today [Thursday], and hopefully having met all the conditions of RBI, an in-principle approval might be given. If it is given, I think, it will be a revolutionary step because it will bring banking, subject to Cabinet approval, to the doorstep of the ordinary man in this country,” Telecom and IT Minister Kapil Sibal told PTI.

The RBI is in the process of granting fresh banking licences and has set July 1 as the deadline for applying.

The Department of Posts has plans to start 50 bank branches in the first year and scale it to a total of 150 branched in five years.

The Department of Posts has started inter-ministerial consultations for seeking Cabinet approval on around Rs.1,900 crore fund requirement to start Post Banks. The total amount includes Rs.500 crore paid-up capital required under new banking licence guidelines.

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