Indian Post has been planning to set up on-site ATMs for its saving bank (SB) account holders.
Initially the ATM machines will be installed at the select branches of the head post offices in different states across the country.
The move is expected to eliminate the problem of queuing, faced by pensioners and PO account holders. With these machines, the users will be able to quickly make tranactions like fund withdrawals, cash deposits, request cheque books, make balance enquiries, make inter-SB account fund transfers; etc.
M.S. Bali, Chief Postmaster General (Maharashtra & Goa), said, "As part of the information technology revamp of our department, we will be gradually moving the operations of our extensive network of post offices on to a core banking platform. With the Post Office emerging as a focal point for the delivery of all social security schemes such as National Rural Employment Guarantee Scheme and Old Age Pension, establishing ATMs at select head post offices will follow as a natural corollary."
Bali stated that post office nodes can help in expanding reach of financial services like insurance, mutual funds, small loans; etc.
With deeper on-the-ground presence in nearly 1,55,000 locations across the country, the Indian Post is a potential competitor for banking institutions in terms of products, service and reach.
The Department of Posts had 22.89 crore SB accounts with aggregate outstanding amount of Rs 22,217 crore, as on March 2009.