Dept of Posts cuts banking fund proposal to Rs 623 cr

The Department of Posts (DoP) has lowered its estimate of funds that it needs to start banking operations to about Rs 623 crore from its earlier projection of about Rs 1,900 crore, sources said. The proposal for Rs 623 crore includes Rs 500 crore that is required as paid-up capital under the RBI’s new banking licence norms. The remaining amount is for infrastructure that is needed to comply with the new norms. The DoP has applied for a banking licence. The Reserve Bank of India is expected to issue licences to shortlisted entities in January 2014. “The DoP has lowered the proposal for funds it needs to start banking operations from about Rs 1,900 crore estimated earlier to about Rs 623 crore,” a government official told PTI.

Read more >> Click here