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Friday, December 18, 2015

Japan’s Hitachi is keen to partner with the postal department for payments bank solutions

Japan’s Hitachi is keen to partner with the postal department for payments bank
 solutions, aid communications and IT minister Ravi Shankar Prasad.

The president and CEO of the company’s IT systems, Yutaka Saito,  called on the
 minister and discussed the possibility of Hitachi offering its banking solutions
 to India Post, which has got a an in-principle approval from the Reserve Bank of India
 (RBI) for starting a payments bank.

“I have heard them, they have already met the postal department people. I have
 asked them to make elaborate presentations. They have come with the idea of a
 revenue-sharing model to install the banking solutions in all the post offices in India.
 We will consider it,” Prasad said after the meeting.

“I have asked the postal department to work out the details,” he added.
As per RBI guidelines, payments banks would offer a limited range of products
 such as demand deposits and remittances. They will not be allowed to
 undertake lending activities and will initially be restricted to holding a maximum
 balance of Rs 1 lakh per individual customer.

They will be allowed to issue ATM or debit cards as also other prepaid payment
 instruments, but not credit cards.

Hitachi’s payment services offer banking solutions related to ATM, point of sale,
 cash and deposit machines and card management solutions to all leading banks
 of the country.

“They are very keen to partner with postal department for payments bank
 solutions in the vast network of India’s postal operations across the country 
and in rural areas,” Prasad said.

The minister further said what is important is the technical upgrading of
rural post offices to make the payments bank a success.

“I have assured them that with Digital India opening up in India in a big way,
 there is enough scope for products, marketing, consumer base and above
 all innovation,” he added.



Financial Express

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