Post offices to be linked to bank network, ATMs

In a bid to help expand the reach of financial services to the last mile, the Union Budget 2022 announced the setting up Digital Banking Units (DBUs) and bringing 1.5 lakh post offices into the core banking system.

“In 2022, 100 per cent of 1.5 lakh post offices will come into 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,” said finance minister Nirmala Sitharaman while delivering her Budget 2022 speech.

■ Continued from Page 1 Currently, post offices provide savings account services and payments bank services through the India Post Payments Bank.

The minister also announced the setting up of 75 Digital Banking Units (DBUs) in 75 districts of the country by scheduled commercial banks.

“In recent years, digital banking, digital payments and fintech innovations have grown at a rapid pace in the country. The government is continuously encouraging these sectors to ensure that the benefits of digital banking reach every nook and corner of the country in a consumerfriendly manner. Taking forward this agenda, and to mark 75 years of our Independence, it is proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by commercial banks,” said Ms Sitharaman.