Post Offices to launch Banking & ATM Services in India

Indian Post Offices are all set to revamp themselves from being a traditional Post Office to a modern Post Bank on the same lines as Post Banks in Japan and New Zealand. Indian Post Offices will soon be implementing the Core Banking Solutions through which all the services offered by Private Banks would be accessible to account holders of Post Office Accounts. The Services include:-

ATM Facility

Internet Banking

Mobile Banking and other services

The lack of modern banking facilities in rural areas and dependence of villagers on informal sector for their credit requirements has prompted the government to establish a post bank. By implementing the Core Banking Solutions, all the Post Offices across India would be inter-connected to each other and a customer would be able to access his account from any Post Office.

The aim of establishing a post bank is to provide banking services to the rural poor who still do not have modern banking facilities and still have to depend on informal sector for their credit requirements.

The Planning Commission of India had allocated Rs 5 crore during the 11th Plan period towards this purpose under the head of ‘studies and miscellaneous expenditure relating to setting up of Post Bank of India‘. The Department of Post with its huge network already provides various financial services, including a post office savings bank, postal life insurance, pension payments and money transfer services.

Post Offices are already offering 3/4th of a Banks services with a network base of more than 1.44 Lakh Post Office Branches in India with Deposits of 5.60 Lakh Crores. These Deposits are not being used for any commercial purposes like extending loans to people and all the deposits were being utilised by the government of India for welfare schemes only.

The Department of Post is already in advanced stage of setting up 1000 ATM’s and also intends to tie-up with other Banks for access of Post Office Debit Cards through Other Bank ATM’s.

Apart from the banking sector, the postal department also intends to emphasise on insurance sector especially in rural areas. It also intends to establish its business development wing and start offering several more services like issuing Railway Tickets, Collecting Passport Applications and very soon even the air ticketing would also be included in the list of postal services.

The Post Offices have now also started Money Remittance Services by the name of MO Videsh where you can transfer and send money anywhere in the World.

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