In a major boost to digital banking, Union finance minister Nirmala Sitharaman on Tuesday announced that all 1.5 lakh post offices in India will be connected to the core banking system that will enable people to access their account online and also transfer money within post office accounts and to other banks.
“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,” Sitharaman said.
She added that this will be helpful especially for farmers and senior citizens in the rural areas enabling interoperability and financial inclusion. Currently, post offices provide savings account services and payments bank services through the India Post Payments Bank.
Presenting Union Budget 2022, Sitharaman further said that 75 digital banking units will be established in 75 districts. “With the aim to take ‘Digital Banking’ to every citizen, 75 digital banking units in 75 districts of the country will be launched,” she said, adding that digital payments have grown at a rapid pace, and its benefits should reach every nook and corner.
Sitharaman further announced that RBI will be introducing the ‘digital rupee’ using blockchain technology over the coming year.
The announcements come a week after the Reserve Bank of India (RBI) issued a public notice asking people to follow safe digital banking practices to prevent any possible financial loss.
Worried over rising incidence of cyber frauds through usage of innovative modus operandi, including social media techniques and mobile phone calls, the RBI urged the members of public to take all due precautions while carrying out digital financial transactions.
“… the Reserve Bank cautions members of public to be aware of fraudulent messages, spurious calls, unknown links, false notifications, unauthorised QR codes, etc. promising help in securing concessions/ expediting response from banks and financial service providers in any manner,” the central bank said.
The last two decades have seen several digital innovations that have made banking more accessible to customers. Fintech apps and platforms have just added to the convenience of customers. With the outbreak of coronavirus pandemic and people being restricted to their homes, the digitalisation of the banking system has got a further push.
Launched in 2016 to allow payments round the clock 365 days a year, the Universal Payments Interface (UPI) has been very successful. Recently, the UAE became the third country after Bhutan and Singapore to accept UPI payments outside India.
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