In Budget 2022, finance minister Nirmala Sitharaman announced that around 1.5 lakh post offices will come under core banking system. This move will enable thousand of customers to access the accounts in the post office branches through net banking, mobile banking and ATMs. “In 2022, 100 per cent of 1.5 lakh post offices will come on the core banking system enabling financial inclusion and access to accounts through net banking, mobile banking ATMs and also provide online transfer of funds between post office accounts and bank accounts,” Sitharaman said during Budget 2022.
At present, post offices provide savings account services and payments bank services through the India Post Payments Bank. Connecting postal network with the banking network will enable online transfer of fund between post office accounts and bank accounts.
“The introduction of 75 digital banking systems in 75 districts by scheduled commercial banks will empower the population digitally in a consumer-friendly manner, supporting inter-operability and financial inclusion. This will enable many customers to experience digital banking for the first time at their convenience,” said Anushman Panwar, co-founder Creditas Solution.
If you have accounts in the post offices, soon you will have net banking, mobile banking and ATM facility. You will also be to transfer of funds from one post office account to other post banking account and bank accounts. This move is in line with the central government’s mission to establish financial inclusion in the country.
“The term financial inclusion intends to help people secure financial services and products at economical prices such as deposits, fund transfer services, loans, insurance, payment services, etc. and accordingly it will benefit the citizens in having access to Kiosk Banking, government Schemes like Pradhan Mantri Jan Dhan Yojana, Atal Pension Yojana, Pradhan Mantri Vaya Vandana Yojana etc. by bringing Post offices into core banking system,” Maneet Pal Singh, Partner, I.P. Pasricha & Co
“Bringing post offices into the banking system is an inclusive step which will bring the mass population from the remote parts of the country into the banking system in an organised manner. This will help integrate the services offered by the post offices on a nation-wide basis and enable poor to avail banking facilities eventually resulting in digital expansion of financial services.” said Manish Mishra, partner, JSA
What this Means for the Banks
This move to bring post offices under core banking system will also pave a way for new digital banking models. This transition will also help the big lenders like State Bank of India, HDFC Bank and Axis Bank to tap into huge number of accounts and customers in the rural area. Low cost financiers and SME lenders will also be able to take advantage of interoperability and financial inclusion, experts believed.
How this Move will Help the Government
The move will enable the government to track the transactions better and result in effective dissemination of the welfare schemes. “A digitalised debt collections approach can support in driving financial inclusivity by providing intelligent personalised experiences with options to resolve debt on their terms,” Panwar added.
Budget 2022 also proposed to set up 75 digital banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks.”This will encourage further adoption of digital payments. There will also be a focus to promote the use of payment platforms that are economical and user friendly,” finance minister added.
Read all the Latest Business News here
Comments
0 comment