New Delhi, Jan 31 (IANS): The Union Cabinet is likely to approve the setting up of a strategic business unit of postal life insurance within the next 15 days, Communications Minister Manoj Sinha said on Wednesday.

Speaking to reporters here on the sidelines of the second anniversary celebrations of the India Post Payments Bank (IPPB), Sinha said that the ministry has floated a cabinet note on the subject.

"In the first phase, we are creating a strategic business unit. In the second phase, we will go for a full-fledged insurance company for Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI)," he said.

"Hopefully within 15 days, the cabinet will clear it," he added.

With 1,54,939 branches across the country, India Post has a presence in the most remote areas of the country, offering a wide range of products and essential services. Providing life cover is part of this mix of services provided by the department.

Currently, Postal Life Insurance (PLI) covers employees of Central and state governments, Central and state Public Sector Undertakings, as well as institutions and organisations where the government holds a minimum 10 per cent stake.

With the formation of the separate business unit, all the functions of PLI and RPLI will be subsumed under the new unit, officials said.