In a strategic move, India will bring all its post offices, the world’s largest postal department, under the core banking system. This step has been taken to improve financial inclusion, the Finance Minister Nirmala Sitharaman stated in her budget speech. This will enable post office customers to get access to digital financial services and transfer money from post office accounts to bank accounts.
She said that all 1.5 lakh post offices in India will be brought under the core banking system and help post office customers get access to digital financial services.
“This will enable 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. This will be helpful especially for farmers and senior citizens in rural areas, enabling interoperability, and financial inclusion,” added Sitharaman.
Analysts said this will speed up financial inclusion especially in the rural regions.