Money transfer firm Western Union has extended its 14-year agreement with India Post, which is now looking to set up a payments bank.
The renewed agreement, for which tenure has not been disclosed, will allow nearly 10,000 post offices to continue their services as Western Union agents. People will continue to receive money sent from other locations via post offices, reported Press Trust of India.
The Department of Posts (DoP) has plans to set up a payment bank license.
Reserve Bank deputy governor SS Mundra recently said the central bank is planning to issue the licenses to eligible small and payment candidates by the end of 2015.
Western Union managing director Kiran Shetty said: "Through India Post, we are able to provide financial access to millions of people across the country with utmost convenience."