Banking Facilities at Post Offices in India

Introduction

Converting a post office into a bank branch is not a new practice in the world. In India, the process started in 2014, when India Post established its first ATM facility. After subsequent developments, since August 2015, it is enjoying the status of a payment bank.

In a country like India, where financial inclusion is a big concern, it is definitely a welcome initiative. India Post has access to most of the remotest corners of the country and hence, it is the best organization to develop banking habits among the unbanked population of the country.

In this article, I have discussed different banking services that can be availed at various post offices of the country.

Banking Services

Taking Deposits

For years, the department is involved in taking deposits from customers by means of its various savings schemes. In terms of outstanding deposits, India Post can easily challenge State Bank of India and other big public and private sector banks. According to FY14 data, combining its short and long-term savings schemes, it has mobilized around Rs. 6.04 lakh crore of total deposits. Here are the options that you can choose to save with India Post.

• Savings Account
• Recurring Deposit Account (5 Years)
• National Savings Certificate
• Monthly Income Scheme Account
• Kisan Vikas Patra
• Senior Citizen Savings Scheme
• Public Provident Fund Account
• Time Deposit Account
• Sukanya Samriddhi Account

All of these accounts vary with respect to interest rate, balance requirement, features, target groups etc. The details of each of these plans are available here. The FAQ Page might give you further insight.

Core Banking

In 2013, India Post introduced core banking for the first time. Since then, increasing numbers of head and sub-post offices are being equipped with this facility. Currently, more than 12,150 post offices in India are offering this solution. Changing its old Post Office Savings Bank platform, India Post is now opting for Finacle, a core banking solution developed by Infosys.

Circle-wise Core Banking migration status, as of 01.01.2016

ATM

In February 2014, India Post opened its first ATM facility. It is in the process of setting up its own ATM network and offering ATM cards to its savings account holders.

Money Transfer

Money remittance is a popular facility of India Post. Using this service domestic as well as international money transfer is possible. India Post’s online portal can be used to transfer money conveniently. Depending upon individual requirements and preferences, there are a number of money transfer options, namely Money Order, MO Videsh, Money Gram etc. to choose from.

Find the details of each scheme here.

e-Payments

India Post acts as an intermediary between businesses and customers for the purpose of bill payment. This facility is available currently in more than 14,000 post offices in the country. Using a web-based platform of India Post, POSB customers pay their utility bills and India Post then transfers the collected amount to the billing company.

Find out more on e-Payments facility here.

Forex Service

Through its collaboration with HDFC Bank, India Post offers currency exchange and other related services at some selected post offices.

To know more on India Post’s Forex service, click here.

Conclusion

India Post is a trusted name to most of the Indians. Through its postal, insurance and other services, for years, it connects to the laymen of the country. It has offices where even nationalized banks don’t have branches. At present, it is the best organization in the country to educate the people about the importance of savings, earning interests etc.

However, when it comes to using technology, India Post Payment Bank is not up to mark. Good news is that improvements are taking place. The planning of a full-service bank has also begun. Within a couple of years, we can expect it to become a modernized bank functioning largely for the disadvantaged section of the nation.