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.
“The move to connect 1.5 lakh post offices in India to the core banking system is also a welcome move. This shall enhance the overall banking experience with easy access to post offices through ATMs, mobile, and net banking. This will further support the Government’s plans to encourage digital banking in the country where most people, particularly in rural areas, make use of the services of post offices to deposit their money,” says Murali Nair, President of Banking, Zeta.