Budget provisions will help Department of Posts to adopt best practices for financial inclusion: Secretary

Vineet Pandey, Secretary, Departmeent of Posts has said that the budget allocation will strengthen the goals of financial inclusion of the Department of Posts and best practices of banking will be implemented for customers, especially in rural areas.

As per the budget announcements, in 2022 all 1.5 lakh post offices will be connected to the core banking system, which will enable financial inclusion, net banking, mobile banking, access to accounts through ATMs.

The move will also enable online transfer of funds between post office accounts and bank accounts. This will bring great convenience to farmers and senior citizens especially in rural areas.

The gross budgetary support for the Department of Posts has been fixed at Rs 36,395.89 crore for 2022-23 as against Rs 35,173.27 crore (Budget Estimates) in the financial year 2021-22. The net budgetary allocation for the fiscal year 2022-23 is Rs 20,820 crore, as against Rs 16,528.22 crore in 2021-22 (Budget Estimates).

Pandey told PTI-language, “Most of our beneficiaries or our customers are from the second and third categories. Especially among them are women, farmers, artisans, senior citizens. Now they will be able to get all the benefits which are considered to be the best in the industry. The best of banking industry facilities will now be available to the post office customers also.”

Pandey said that the expectations from the post office are now much higher than the traditional role and the postal department is fully leveraging its digital and vast physical network.

“This is also the goal of this budget. This gives us a foundation to pursue these objectives and it is now possible to include all types of services. When you talk of financial inclusion, apart from post office savings agency, it could be insurance, there could be other things like direct transfer.

He said that the Department of Posts is preparing itself for various types of financial services.