On Tuesday, Finance Minister Nirmala Sitharaman presented the Union Budget 2022, Modi 2.0’s fourth budget.
There were a slew of policies aimed at stimulating GDP in the face of high and growing inflation, as well as continued Covid uncertainty.
In her Budget 2022 speech, the Finance Minister stated that by the end of 2022, all 1.5 lakh Post Office branches will be connected to the core banking system. All post office savings account users will be able to access internet banking and make online payments and money transfers as a result of this.
While a considerable number of post office branches have already been added to the core banking system, not all post offices have yet been added. As a result, money cannot be transferred via internet banking from a core banking-enabled post office to one that is not part of the core banking system.
This will increase financial inclusion and provide a significant benefit to farmers.
She also revealed that planned commercial banks will open 75 digital banking centres in 75 regions.
In her Budget speech, Sitharaman stated, ” By 2022, all 1.5 lakh post offices will be connected to the core banking system, allowing for financial inclusion and account access via net banking, mobile banking ATMs, and online fund transfers between post office and bank accounts.”
She went on to say that this will be especially beneficial to farmers and senior residents in rural regions, since it will enable interoperability and financial inclusion.
The India Post Payments Bank currently provides savings account and payments bank services through post offices.
Aside from internal online transfers, post office account users will be able to use internet banking to transfer funds to any other bank’s savings account.
“The impact of DoP and India Post Payments in boosting financial inclusion is unquestionable,” said Sanjoy Datta, partner and financial services sector leader at Deloitte India. They have a large audience and a well-known brand. Their customer base just surpassed 5 million, with the majority of them being from rural areas. It’s fantastic to see these services, which are crucial for financial inclusion, gaining traction,” says Datta.
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