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The good old post office plays a major role in the process of financial inclusion in the country. They are not flashy like banks and have a no-nonsense, functional approach to serving the masses of the country.
In the past seven years, as many as 36.80 crore post office savings bank (POSB) accounts were opened that have a total outstanding balance of Rs 10,78,535 crore, India Post mentioned on its Twitter handle.
Sukanya Samriddhi accounts
Showcasing its achievement in and contribution to ‘transformative economic growth’ in the country, the department said that as many as 2.04 crore Sukanya Samriddhi accounts were opened in post offices since January 2015. The cumulative deposit amount in these accounts is Rs 63,443.35 crore.
Sukanya Samriddhi Yojana is a plan that parents can invest in for the security of their girl child. It offers an interest rate of 7.6% and tax benefits too.
Core banking solution
Most of the post offices have been linked between themselves with the core banking solution (CBS) platform in the country. Presently 23,471 post offices are working on CBS, where customers may access their bank account and perform basic transactions.
Mobile banking
In October 2019, India Post Mobile Banking service was launched. This service is becoming increasingly popular among the people with about 1.75 lakh customers using this service. The postal department (DoP) has also rolled out 1,000 ATMs in the last seven years across India.
POSB account features
A POSB account is the Post Office Savings Account. Any individual adult, single or jointly, can open an account with valid KYC documents. But only one account can be opened by an individual as a single account. A minor above 10 years can also open a POSB account in his/her own name. The minimum amount for opening an account is Rs 500.
Minimum balance
All customers have to maintain a minimum balance of Rs 500. No withdrawals are allowed when the balance reaches this level in any account.
50 crore customers
India Post serves more than 50 crore POSB customers across the country. This number is 1.5 times the entire population of the US. An interest rate of 4.0% per annum is available in a POSB account.
Facilities
Post office savings account holders can have benefits of cheque books, ATM cards and e-banking/mobile banking.
They can also invest in Atal Pension Yojana, Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jeevan Jyoti Bima Yojana that offer security at a nominal investment. All these instruments are offered through post offices and opening a savings account is the first step of investing in these.