India's UTI Bank has signed a Memorandum of Understanding (MOU) with India Post to introduce financial products and services to the customers of both organisations.
Proposals under the agreement include setting up of UTI Bank ATMs in post office premises; utilisation of the postal network for All India collections and payments under the cash management services of UTI Bank; remittance and collection of drafts.
The two companies will collaborate for provision of loans by UTI Bank against various financial products of the Department of Posts. Cross selling of each other's financial products will also take place.
Shri Som, Secretary to the Government of India & Director General, Department of Posts, states that "the technology of a new generation private sector bank such as UTI Bank would enable DOP to provide more efficient services to its customers".
The Post Office Savings Bank is the largest retail bank in the country, operating from over 1,50,000 branches.