Post offices to be core of rural banking
1 March 2013 7:11 AM IST
Presenting the eight union budget, finance minister P Chidambaram on Thursday proposed to provide Rs 532 crore in order to modernise India’s existing postal network. As a result of this now even post offices will become part of the core banking solution and offer real time banking services.
While delivering his Budget speech Chidambaram said soon the ubiquitous post office could also morph into a neighbourhood bank, proving a major boon for villages. ‘Government has initiated an ambitious IT driven project to modernise the postal network at a cost of Rs. 4,909 crore. Post offices will become part of the core banking solution and offer real time banking services. I propose to provide Rs 532 crore for the project in 2013-14,’ he said in the budget speech.
The total project cost approved by the government is Rs 4,909 crore. The Department of Post (DoP) has started deploying modern technology solution to develop core banking capability across post offices. As part of modernisation, it has set target of 31 March to computerise all departmental post offices.
India postal network has 1,54,822 post offices in the country. Of these, 1,39,086 are in rural areas and 15,736 are in urban regions. There are around 90,000 bank branches in the country and provision of real-time banking services through postal network is estimated to triple the current banking network.
The DoP has appointed Ernst and Young to prepare detailed project roadmap for setting up of post banks and the report is expected to be in place by April.
POSTAL REVIVAL
While delivering his Budget speech Chidambaram said soon the ubiquitous post office could also morph into a neighbourhood bank, proving a major boon for villages. ‘Government has initiated an ambitious IT driven project to modernise the postal network at a cost of Rs. 4,909 crore. Post offices will become part of the core banking solution and offer real time banking services. I propose to provide Rs 532 crore for the project in 2013-14,’ he said in the budget speech.
The total project cost approved by the government is Rs 4,909 crore. The Department of Post (DoP) has started deploying modern technology solution to develop core banking capability across post offices. As part of modernisation, it has set target of 31 March to computerise all departmental post offices.
India postal network has 1,54,822 post offices in the country. Of these, 1,39,086 are in rural areas and 15,736 are in urban regions. There are around 90,000 bank branches in the country and provision of real-time banking services through postal network is estimated to triple the current banking network.
The DoP has appointed Ernst and Young to prepare detailed project roadmap for setting up of post banks and the report is expected to be in place by April.
POSTAL REVIVAL
- P Chidambaram proposed to provide Rs 532 crore in order to modernise India’s existing postal network. As a result of this now even post offices will become part of the core banking solution and offer real time banking services
- The total project cost approved by the government is Rs 4,909 crore. The Department of Post (DoP) has started deploying modern technology solution to develop core banking capability across post offices
- India’s postal network has 1,54,822 post offices in the country. Of these, 1,39,086 are in rural areas and 15,736 are in urban regions. There are around 90,000 bank branches in the country and provision of real-time banking services through postal network is estimated to triple the current banking network
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