All the Post Office Savings Account Holders will be able to avail Online Banking Facility from May 2018. People who have a savings account in any post office can now avail a full fledged digital banking service. Central govt. has now approved linking of all such accounts to the India Post Payments Bank (IPPB). Around 34 crore account holders will now be entitled to transfer money from their post office account to any bank account.
Reserve Bank of India (RBI) governs IPPB while finance ministry governs the banking service of post offices. IPPB customers are applicable for usage of NEFT, RTGS or other money transfer modes just like banking customers. After the savings account gets linked with IPPB, customers will be enabled for money transfer service like other banks.
Post Office is going to become the largest banking network as India Post is going to link all 1.55 lakh PO branches with IPPB. Previously, India post has started core banking service such as money transfer facility but it was confined only to the money transfer within post office savings bank (POSB) accounts. People can also Compare All Post Office Schemes 2018
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 scheme, time 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.