The ambitious plan of Rs.4900 crore has been drawn up by the Indian post which can strengthen rivalry in the banking sector. As per this plan, by 2015 they plan to have in major cities a at least 2800 automated teller machines (ATMs) as well as a total of rural branches ATMS of 1.3 lakhs. The Ministry of Communication division has are already in the process to tie up with Visa and MasterCard as well as banks in order to go ahead and start their plans of installing ATMs.
Presently they are still waiting for their banking license which has been applied to the Reserve Bank of India. One month from now, for the micro ATMs, the India Post will call a delicate through request for proposal (RFP).
In order to fund the Rs.4,900 crore, an approval has already taken from the cabinet for the modernization and expansion of the drive. In order to provide the funding, it would be taken from the budgetary provision.