Budget FY23: 1.5 lakh post offices to be brought under core banking system

The Centre plans to bring 1.5 lakh post offices in the country under the core banking system, Finance Minister Nirmala Sitharaman said in her Budget speech in Parliament on Tuesday.

She said that the move will enable financial inclusion and access to accounts various other means.

“In 2022, 100 per cent of 1.5 lakh post offices will come on the core banking system enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and also provide online transfer of funds between post office accounts and bank accounts.

“This will be helpful, especially for farmers and senior citizens in rural areas, enabling interoperability and financial inclusion.”

Besides, she proposed to set up 75 Digital Banking Units.

“In recent years, digital banking, digital payments, and fintech innovations have grown at a rapid pace in the country. Government is continuously encouraging these sectors to ensure that the benefits of digital banking reach every nook and corner of the country in a consumer-friendly manner.

“Taking forward this agenda, and to mark 75 years of our independence, it is proposed to set up 75 Digital Banking Units in 75 districts of the country by Scheduled Commercial Banks.”

Furthermore, she said that financial support for digital payment ecosystem announced in the previous Budget will continue in 2022-23. “This will encourage further adoption of digital payments. There will also be a focus to promote use of payment platforms that are economical and user friendly.”

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