What is the Post Office Core Banking System Announced in the Union Budget?

In the budget 2022 announcement delivered today, the FM said that all of the Post offices shall now be core banking enabled. The facility shall be a delight for post office customers as through the new initiative customers shall be able to transact online and even transfer money to other bank accounts as via net banking.

"All 1.5 lakh post offices in India will be brought under the core banking system. This will enable 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," says Sitharaman.

"Enablement of net banking and fund transfer for Indian Post will enable better financial inclusion," says ICICI Direct.

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