India post payment bank. Do we really need more banks?

Our prime minister Mr. Narendra Modi has done a commendable job to open bank account of many people who were never thought of possibly opening an account. He rightly executed the ‘Jan Dhan Yojana’. He made it easier to open a bank account for villagers, poor and women. The Yojana was executed through the government run State Bank of India. But now banks have declared their minimum deposit level of cash. Failing which will be penalised by cutting an interest monthly. Is the poor is reaping the benefit of banking or banks are reaping off their small pockets?

Now, here comes a great news. ” Union Minister of state for communications Manoj Sinha on Sunday said that as many as 650 branches of the India Post Payments banks are likely to be operational ¬†across the country by next month i.e. May.

This is not happening. There is no need of additional banks in our country. Specially the banks run by central government. Government should focus on improving the existing banks to topmost level. Because there is lots of drawbacks in our govt banks.

The govt should improve the following things immediately to compete with their private counterparts.

1) Customer Service:

Being a customer of State Bank of India I know that their service is pathetic. Many employees are rude and careless towards their customers. So, the employees should given proper training from time to time.


2) Faster delivery:

Today is the age of faster internet. But government own banks server remains often down. They delay transactions and delays the overall work.

The delivery of loans are not fast and efficient. Be it car loan, housing loan or a personal loan. An immediate improvement is needed in this regard.

3) New Technology:

The technology using by our banks is outdated. They are not efficient to perform high speed transactions. It is time to introduce Blockchain technology to our banks. Blockchain technology is “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.”


With this I want to say that I am not against including more banks for people. But at first the government have to improve the functioning of the existing banks. It is no need to open more same kind of businesses when you are not earning any profit. If the current banks perform up to the mark then there would be no need of new banks for our country.

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