Post Office Savings Account Holders can Avail Online Digital Banking Facility from May

Published Date - 10 April 2018 04:47:17 Updated Date - 10 April 2018 04:49:56

All the Post Office Savings Account Holders will be able to avail Online Banking Facility from May 2018. Around 34-crore post office savings account holders will be able to avail a full-fledged digital banking service from May as the government has approved linking such accounts with that of India Post Payments Bank (IPPB).

The 34 crore savings accounts comprise 17 crore post office savings bank accounts and rest are those subscribed monthly income scheme, recurring deposits etc.

Currently, there are 17 crore pure savings bank accounts and several recurring deposits and monthly income schemes that constitute 34 crore post office savings accounts.

The linking of post office savings accounts to IPPB accounts implies that 1.55 lakh post office branches will be linked to the IPPB, resulting in India’s largest banking network. Although India Post offers almost all core banking services to customers, money transfer facility is provided only within post office savings bank (POSB) accounts.

Currently, IPPB is under the governance of the Reserve Bank of India (RBI) and the finance ministry regulates the post office banking services. The customers of IPPB are able to use RTGS, NEFT, and other such online money transfer facilities. After the POSB accounts are attached to IPPB, the customers of those accounts can avail complete digital banking services, including money transfer facilities offered by other banks. It is also understood that the service will be optional; i.e., the customer can choose to link the POSB account with IPPB, if required.

Out of the 1.55 lakh post offices existing in the country, 1.3 lakh branches operate from rural regions.

There is a second phase of operations planned, starting September 2018. During this phase, post office savings account holders will be able to make payments towards schemes such as Sukanya Samriddhi Yojana, speed post, and recurring deposits through their IPPB accounts. Customers will also be able to pay merchants such as grocery store contacts, ticketing counters, etc. through their apps.

Online Banking Facility – Post Office Savings Account Holders

RBI is the monitoring body for IPPB which enables all the bank account holders to use NEFT / RTGS and other services. Banking Services in Post Offices comes under the finance ministry. Now FM has taken a step forward to provide banking like facilities to all its customers.

Now Finance Ministry gives its nod to link all post office savings account to IPPB to benefit 34 crore POSB account holders. There are around 17 crore post office saving bank accounts and another 17 crore people are subscribed for monthly income schemetime deposit, national saving certificate or other post office schemes. Previously all PO Account holders were able to transfer money only from one POSB account to other POSB accounts.

India Post will now provide an option to POSB account holders to avail the benefits of this new facility. However, this service will remain optional (not compulsive). Only if a person opts for it, then only their POSB account will get linked to IPPB.

Digital Banking Service Implementation

India Post is planning to implement this move through all 650 IPPB branches from the current month onward. Accordingly, all the IPPB branches will now get connected to smaller post offices in various districts across the country.

Moreover all the IPPB branches along with access points will get linked to postal network. Till date, the Postal Network includes around 1.5 lakh branches out of which, approx. 1.3 lakh are in rural areas. This move of linking POSB with IPPB in 1.55 lakh branches will make India Post as the biggest and most reliable banking network.

After the implementation of 1st phase, 2nd phase will start in the month of September 2018. In next phase, India post will provide an option to all the POSB account holders for payment of post office products through their IPPB account. This service would include payment (money deposit) for Sukanya Samridhi Yojana, Kisan Vikas Patra, PPF, Speed Post etc.

This facility will expand the base of India Post and also new merchants will get registered. This will be done through the registration of merchants who accept payment from post office customer with the help of an application. Furthermore, any POSB account holder can then make payment to merchants like stores, shops, ticket booking etc.



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