The government plans to launch banking services at post offices to give a boost to social safety net programmes and popularise savings tools across the country, especially in remote rural areas.

The post and telecom division sought approval from the finance ministry last month to introduce the services under Bangladesh Post Office, said Tarana Halim, state minister for telecom.

“We think there is scope to serve the people living in remote areas through the post offices and that's why we have applied to the bank and financial institutions division.”

The telecom division is yet to finalise the paid-up capital that will be needed to launch the services, she said.

“After getting the approval, we will plan to introduce banking services at the post offices,” Tarana said.

The postal department had been a losing concern for a long time, but things have changed, she said.

The department earned around Tk 6 crore in profits in 2015-16, she added.

Currently, there are around 8,900 post offices across the country and it will be the biggest banking channel if the finance ministry gives a go-ahead to the proposal, Tarana said.

Bangladesh Post Office has a savings instrument that provides interest at more than 10 percent.

The post offices also provide other financial services like life insurance, savings certificate, electronic money transfer, ATM services under postal cash cards, money order and postal order.

The government plans to introduce digital postal centres across the country, Tarana said.