The Department of Posts will soon launch core banking services in post offices through a concept titled "Any Where, Any Time Banking."
The largest communication network in the country with a total of 1.5 lakh post offices, the postal department has chalked out a plan to extend banking services to its savings scheme customers.
"We already have deposits of around Rs 4.5 lakh crore from individual accounts. This is more than the Rs 2 lakh crore held by State Bank of India, which is from individual, company and other accounts," said D Kailash Prasad, member, Postal Services Board.
The service will enable people from the remotest parts of the country to access regular banking services since post offices were present everywhere, Prasad said.
"Post offices generate 41 per cent of their revenue from financial services, which translate into Rs 1,500 crore per annum," he said.
The scheme will first be launched in 825 head post offices all over the country, he said, adding that further expansion will depend on the success of the programme.
"We have engaged a consultancy for preparing a detail report on the possibilities of such a programme. Some plans are already being discussed and we expect the scheme to take off as soon as possible," Prasad said.
"We might not be able to offer full-level banking services but to start with, the facility will enable the customer to withdraw money from any post office branch in the country," a chief postmaster said.
"To deliver financial services to the majority of the rural population, our strategy is to accommodate and strengthen more rural branches," Prasad said, adding, "In the cities, our aim is to regain the mail business lost to private courier services."
"We are trying to provide same services in general post offices as well as in small village post offices. In two years, our department will regain the lost business," he said.