In addition to online internal transfers, postal account holders will also be able to transfer funds to a savings account with any other bank via online banking.
“The decision to connect 1.5 lakh of post offices in India to the central banking system is also a welcome move. This will enhance the overall banking experience with easy access to post offices through ATMs, mobile and online banking. This will further support the government’s plans to encourage digital banking in the country where most people, especially in rural areas, use post office services to deposit their money,” said Murali Nair, Chairman of the bank, Zeta.
The move is expected to ensure last mile delivery of digital banking services. Sanjoy Datta, Partner and Financial Services Industry Leader, Deloitte India, said, “The role of the DoP and India Post Payments in increasing financial inclusion is undisputed. They have huge reach and a mark of trust. Their clientele has recently exceeded 5 crore, mostly rural. It’s great to see the growing adoption of their services which are essential for financial inclusion,” says Datta.
