Union budget 2022 | All post offices will be under the central banking system

It will be useful for farmers and elderly people in rural areas, says finance minister

It will be useful for farmers and elderly people in rural areas, says finance minister

To ensure Anytime – Anywhere Post Office Savings, the government said on Tuesday that by 2022, 100% of 1.5 lakh post offices will come under the central banking system enabling financial inclusion and access to accounts through banking services online, mobile banking, ATMs, and also provide online funds transfer between postal accounts and bank accounts.

“This will be helpful especially for farmers and rural elders, enabling interoperability and financial inclusion,” Finance Minister Nirmala Sitharaman said in her budget speech.

Also to promote digital banking in the country, banks have been asked to set up 75 digital banking units in 75 districts.

“In recent years, digital banking, digital payments and fintech innovations have developed at a rapid pace in the country. The government is continuously encouraging these sectors to ensure that the benefits of digital banking reach every nook and corner of the country in a user-friendly way,” Ms. Sitharaman said.

“To advance this agenda, and to mark 75 years of our independence, it is proposed to create 75 digital banking units [DBUs] in 75 districts by regular commercial banks,” she added.

She said the financial support for the digital payment ecosystem announced in the previous budget would continue in 2022-23.

“This will encourage further adoption of digital payments. Emphasis will also be placed on promoting the use of cost-effective and user-friendly payment platforms,” she added.

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