Approximately 34-crore post office savings account holders will soon be able to get the full-fledged service of digital banking from the month of May. The Indian Government has approved connecting such accounts with that of India Post Payments Bank (IPPB). According to sources, the finance ministry of India has endorsed connecting savings bank accounts at post offices with IPPB accounts. With this facility, the post office account holders will be able to transfer money to any bank account from post office account.
Post Office Saving Accounts To Become Digital
There are total 34 crore savings accounts in the post office and out of 34 crore accounts 17 crore accounts are post office savings bank accounts and rest are those with recurring deposits and subscribed monthly income scheme. The move of making all savings bank account in Post office digital will create a way of building country biggest/largest banking network. India Post Office is planning to link almost 1.55 lakh branches with the IPPB (India Post Payments Bank).
According to the sources, the banking services of Post office of India comes under the ministry of finance and the India Post Payments Bank (IPPB) is governed by the RBI (Reserve Bank of India). The IPPB customers will soon be able to use services like RTGS, NEFT and other money transfer services which are normally available for any bank customers. Furthermore, sources said that once the Post Office Savings Bank Accounts are linked to the India Post Payments Bank, customers will be able to enjoy all the money transfer services.
The service of linking the Post Office Saving Bank Accounts to the IPPB will be optional. It is totally on the customer if he/she wants to link the account to the IPPB or not. If the customers want to link its Post Office Saving Bank Account to IPPB then it will be linked otherwise if they don’t want to be linked than it will not be linked.
With this facility, the India Post Payments Bank customers will be able to pay bills, pay grocery store bills, tickets etc with the help of the app. IPPB will soon start registering merchants who will accept the payment from customers.
Source – Business Today