PM Narendra Modi’s New Year gift…

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The NDA-government amended the Post Office Savings Bank General Rules, 1981 to permit select offices of Department of Posts to issue ATM cards to savings bank account holders and issue account statements, instead of the traditional passbooks.

Presently, the service will be limited to only those post branches, which are under the core banking solution (CBS) network. To put it simple, CBS makes possible real time operation of a bank account across all branches connected through the network.

That is the reason why a customer can transact in their accounts in any bank branches. Most Indian commercial banks have covered their entire branches under CBS.

For India Post, only 676 post offices are under the CBS network out of its total 1.55 lakh branches.

Hence the ATM/account statement services will be initially limited to those branches. However, the department is currently undertaking a project to cover more number of branches under CBS as part of its IT-modernisation programme, besides increasing its ATM network to 2,800 by 2015.

A customer can keep their savings, draw statements, withdraw money from ATMs like in any other bank.

The first step forward to realize the dream of ‘Post Bank of India’ by becoming a payments bank, permissible under recent RBI guidelines.

The deadline to apply for payments bank is on January 16. Getting a payments bank licence will be cakewalk for posts, since RBI is already is in favour of its candidature to become a bank.

RBI issued licences to only two from the 25–IDFC and Bandhan—for the full service operations but had observed that India Post can be given banking licences if government, technically the promoter of the proposed Post bank, gives its nod.

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