India Post is soon likely to sign a pact with Bharat Sanchar Nigam Limited (BSNL) to use the latter’s platform to offer payment bank services. The deal is yet to be finalised as the two companies are still working out the revenue sharing model. Meanwhile, India Post is also in talks with private operators such as Bharti Airtel and Vodafone India.

India Post has also sought an approval from the Cabinet for an investment of Rs 6.5 billion in the proposed payment bank entity. Of this, at least Rs 1 billion will constitute the equity base while Rs 2 billion will be required to set up the entity.

India Post intends to launch these services at all of its 155,000 branches by March 2016. The company will offer hand-held devices at all village post offices. As per the Reserve Bank of India (RBI) guidelines, the payments bank must have 25 per cent of the touch points in backward and naxal-affected areas.

To take this forward, India Post will submit its report on its plan to establish the payment bank by October 2015 and expects to get formal approval from the RBI before December 2015.