Tuesday, April 10, 2018

Finance Ministry Approved Linking of POSB Accounts with IPPB Accounts

Around 340 million post office savings account holders will be able to avail a full-fledged digital banking service from May as the government has approved linking such accounts with that of India Post Payments Bank (IPPB).

"The finance ministry has approved linking of savings bank accounts at post offices with IPPB accounts. This will enable post office account holders to transfer money from their account to any bank accounts...," an official source told PTI.

The 340 million savings accounts comprise 170 million post office savings bank accounts and rest are those subscribed monthly income scheme, recurring deposits etc.

The move also paves the way for creating of country's largest banking network as India Post has plans to link all 155,000 post office branches with the IPPB.

India Post has started core banking service but it offers money transfer service within post office savings bank (POSB) accounts.

"IPPB is governed by Reserve Bank of India and banking service of post offices comes under the finance ministry. IPPB customers can use NEFT, RTGS and other money transfer services as available for any banking customers. Once POSB accounts are linked with IPPB, customers will be able to enjoy all money transfer service like other banks," the source said.

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