The Finance minister announced in her Budget 2022 speech that all 1.5 lakh branches of Post Office will be linked to the core banking system by the end of 2022. This will allow all post office saving account holders to access internet banking and conduct online payment and money transfer. While a large number of post office branches were already there on the core banking system however all post offices are not on the core banking system as yet. Therefore, transfer of funds via internet banking from a core-banking enabled post office to one which is not part of the core banking system is not possible.
Besides the internal online transfers, post office account holders will also be able to transfer funds to savings account with any other bank via internet banking.
Sanjoy Datta, partner and financial services industry leader, Deloitte India said, “ The role of DoP and India Post Payments in increasing financial inclusion is undisputed. They have tremendous reach and a trusted brand name. Their customer base recently crossed 5 crore, most of it rural. It’s great to see growing adoption of their services which are critical for financial inclusion” says Datta.