Post offices to issue ATM-cum-debit cards for savings account holders

Our Bureau New Delhi | Updated on December 30, 2014

Facility will be available in post offices that are on core banking solution platform

Post office savings bank accounts can now be operated through ATMs. The Centre has amended the Post Office Savings Bank General Rules accordingly following the Budget announcement in this regard.

This facility, however, will be available only in post offices that are on core banking solution (CBS) platform. A notification said: “In case of an account standing at any post office with a core banking solution platform in place, the Post office Savings Bank shall issue ATM or debit card to the account holder on payment of such fee as may be prescribed by the Central Government.”

Currently, 676 post offices are on CBS. Four head post offices (Delhi, Mumbai, Kolkata and Chennai) have gone live on ATM.

This entire project is part of the ₹4,909-crore IT modernisation project of the Department of Posts. The department aims to take the ATM network to 2,800 by 2015.

The notification also mentioned that a savings account holder at a post office linked to the CBS platform will be allowed to deposit money in his or her account at “any other post office with CBS platform within the limits prescribed”.

Deposits can be made through the electronic mode as well. New rules also provide for giving a statement of account in lieu of the passbook, but only as an option to the customer.

The IT project also aims to provide customer interaction through multiple channels such as call centres, internet, ATM, mobile banking and net banking for PO savings bank customers.

It will provide an electronic and secure mode of money transfer, including doorstep delivery even in rural areas.

Published on December 30, 2014

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