People investing in Post office schemes are dealing with or rather forced to deal with Post office near their house. But Post office have become modernized. They are moving to Core Banking Solution. The Core Banking Solution (CBS) Project brings facilities of ATM Banking, Internet Banking, Mobile Banking and Phone Banking to the Post Offices Savings Bank (POSB) customers to perform transactions 24×7 in ATMs and to transfer money from their account to any bank account through National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS). This article talks about Modernization of Post office, Overview of Post Office Internet Banking, Mobile Apps for Banking and Postal Information and Core Banking Solution in detail.
On 1st Sep 2018, the Central Government has launched the Indian Post Payment Bank (IPPB). The IPPB Banks are different from Post office saving account(POSA), though one can link POSA with IPPB bank account.
Table of Contents
Internet Banking and Post Office Saving Account
Internet banking is the easy and most convenient way to transact- anytime, anyplace, at your convenience. Department of Posts offers Internet Banking services to the customers as a part of Core-banking solution. You can access Post office Internet Banking at https://ebanking.indiapost.gov.in shown in the image below.
First of all, you need to have a saving Bank account at a Post office. Visit the Post office where you have opened the account. You need to register for the Internet banking service with the Post office. You need to fill the form. The officials will guide you with the formalities. The PO branch will collect your application request for DoP internet banking and process in 10 working days. You may need to visit your Post office for collecting your login credentials.
Mobile App for Post Office Saving Account
You need to complete the registration in your nearest post office where your POSB account is present. Once you have completed registration for mobile banking, you can use the services offered by the Department of Post Mobile banking application.
Department of Posts offers to its esteemed valued customers, India Post mobile banking application for banking on the go. Why visit Post Office when you can do banking from your comfort zone anytime, anywhere using your mobile device.
- Download the Mobile Banking Application from Google Play store. Please don’t download from any other websites.
- Open the application and click on Activate Mobile Banking button.
- Enter the Security Credentials which you have provided with Department of Post.
- No message Charges for OTP (One Time Password). We shall deliver you Activation OTP on your Registered Mobile Device. Please enter the OTP on the screen which asked you to enter the OTP and proceed further.
- Once successfully validated you will be asked to enter 4 digit MPIN. Please enter 4 digit MPIN of your choice and you will be activated for Mobile Banking Application.
- For login into Mobile Banking application, please enter your User Id and the new MPIN.
- Help Desk: Should you face any difficulty or you have any queries, please contact Post Office Customer care 18004252440
Post office and Small Saving Schemes
Post Offices in India
People investing in Small Saving Schemes in Post office are confined to dealing only with post offices they have had direct dealings with. The post office might seem like a relic of the past to some but fact is
- India has a network of 154,866 post offices across the country, the largest in the world. Of these, 139,040 are in rural areas. In contrast, in 1947 there were only 23,344 post offices, which were primarily in urban areas. Annual Report Post Office 2014-15 (pdf)
- The department of posts mobilizes over Rs 6 lakh crore of long-term savings under the various postal savings schemes. It also has close to Rs 40,000 crore in its postal savings accounts.
- From 2013-14, India Post has entered into tie-ups with online retailers, introducing Cash on Delivery (COD) facility, and offering e-commerce companies credible last mile connectivity outside of large cities. India Post has set up 57 modern delivery centers to handle the e-commerce traffic, with a big centre at Parel, Mumbai. For India Post, the boom in e-commerce deliveries is proving to be a big money spinner, especially the surging cash-on-delivery consignments of the country’s top online sellers — Amazon, Snapdeal and Flipkart-Myntra. The postal department’s revenues by ways of COD consignments from e-commerce majors have more than doubled in the first nine months of this fiscal at Rs 1,000 crore, up from Rs 500 crore during the whole of 2014-15, and just Rs 100 crore in 2013-14.
- In August 2015, the Reserve Bank of India had granted in-principle approval to 11 applicants to set up payments banks, including India Post.
India’s post offices have lacked an integrated banking structure or a core banking solution. In India’s Union Budget presented by Finance Minister P Chidambaram on 28 February 2013, he said: “Post offices will become part of the core banking solution and offer real time banking services. I propose to provide Rs 532 crore for the project in 2013-14.”
Website of Department of Post Office: www.indiapost.gov.in
What financial products do India Posts offer?
India Posts is operating small savings schemes since 1882. The total number of accounts of Small Savings Schemes is 29.89 crores. Presently, the following schemes are being offered:
- Public Provident Fund or PPF
- Sukanya Samriddhi Scheme
- Monthly Income Scheme
- Senior Citizen Savings Scheme
- KVP (Kisan Vikas Patra)
- NSC (National Savings Certificate)
- Time Deposits or Fixed Deposits
- Recurring Deposits
- Saving Account
Post office small savings collection saw nearly a 40 per cent increase in collection between November 2014 and November 2015 to Rs 2,15,803 crore. West Bengal remained the top state in terms of small savings collection, with total net collections a Rs 3,974 crore till November 2015, against Rs 1,381 crore till November 2014, showing a rise of 188 per cent. After West Bengal, Uttar Pradesh accounts for highest collections in small savings at Rs 3120 crore net collections till November 2015, an increase of 185 per cent in November 2014. Image below shows how much money is invested in Post Office Saving Schemes. Ref Annual Report Post Office 2014-15 (pdf)
Post offices as Banks
In August 2015, the Reserve Bank of India had granted in-principle approval to 11 applicants to set up payments banks, including India Post. The department, which has received expressions of interest from all the top global consultancy firms is pursuing a plan where there will be two Postbanks.
Post office as Banks Difference between IPPB and POSA
Regular Post office account will offer the traditional financial services of the Post office. This includes the postal savings accounts and other post office savings schemes. Although not a Reserve Bank of India-recognized bank, this division, which is a bank for most practical purposes, will continue to operate in its existing form.
On 1st Sep 2018, the Central Government launched the Indian Post Payment Bank (IPPB). It is an entirely new creation with a paid-up capital in line with the Reserve Bank of India’s requirement.
The IPPB Bank account is different from the Post office saving account(POSA), though one can link POSA with IPPB bank account. Differences are shown in the table below
Comparing PPB with POSA
|Types of Account||The IPPB offers three different types of savings account – regular, digital and basic.||POSA offers standard banking and remittance services.|
|Opening an Account||Accounts can be opened instantly through their respective mobile apps just by providing details like Aadhaar number with KYC verification.||Accounts can be opened after filling a post office savings account application form and submitting the required KYC documents – identity and address proof.|
|Deposits||Zero balance savings accounts can be opened||Accounts can be opened with a minimum deposit of Rs 20. The accounts with cheque facility require a minimum deposit of Rs 500.|
|Interest||4 percent interest on deposits, payable quarterly.||4 percent interest on deposits, payable quarterly.|
|Account – minimum balance||Account holders do not need to maintain any minimum balance in their savings account.||Account holders have to maintain a minimum account balance of at least Rs 50 per month or Rs 500, for accounts with cheque facility.|
|Account – maximum balance||The maximum savings amount is capped at Rs 1 lakh. Any amount above the figure will be transferred to the linked POSA account.||There is no maximum balance limit for the account holders.|
|Doorstep Banking||New doorstep banking feature introduced. It, however, has additional charges.||No doorstep banking feature.|
|Money Transfer||Money transfer allowed from the account to any bank account. IPPB customers can use NEFT, RTGS and other money transfer services as available for any banking customers.||Money transfer allowed within post office savings bank (POSB) accounts. Once POSB accounts are linked with IPPB, customers will be able to enjoy all money transfer service like other banks.|
|Withdrawals||IPPB offers a free debit card with annual maintenance fee of Rs 100 from the second year. It doesn’t charge any fee for withdrawals made from its own ATM or any PNB ATM.||Customers will be offered a debit card while opening the account. The card can be used to make withdrawals from any ATM across the country.|
|Governing Authority||Reserve Bank of India||Union finance ministry|
Post Office : Internet Banking, Mobile Banking, Mobile App
The Department of Posts(DoP) has undertaken an end to end IT Modernization project 2012 to equip itself with requisite modern tools and technologies. In order to IT enable Post Office Savings Bank, Core Banking Solution (CBS) is being implemented across India covering all the post offices. Core Banking means a banking service facility in which we can access our bank account and perform basic transactions like withdrawal or deposit of cash from any of the member branches or any other bank for that matter. The Post office were using computer but now are migrating from Sanchay Post to Finacle, Core Banking Solution from Infosys.
Pilot-in-Pilot roll out of CBS was done in Greams Road Post office,S.O under Thygarayanagar HO in Chennai City Region of Tamil Nadu Circle, in Chennai on 16.12.2013. After observing the functionality, roll out in other Post Offices was started in a phased manner. Total of 12150 Post offices including 805 Head Post Offices and 11345 Sub Offices have been rolled out for CBS until now. All Post Offices in India will be migrated to CBS by Mar 2016 .
What is Core Banking Solution
Core Banking means a banking service facility in which we can access our bank account and perform basic transactions like withdrawal or deposit of cash from any of the member branches or any other bank for that matter. Initially banking activities were restricted to account-holding branch only. For example, say I had an account in Dena Bank, Mulund. If I had to withdraw cash I was able to do so only from Mulund Branch i.e I cannot withdraw cash from any other branch. But today, if I am holding the same account in the same branch, I can withdraw money from any ATM or branch of Dena Bank irrespective of the location. Even ATMS of other banks can be used for the same purpose.
Similar to Banks, Post offices are also moving to Core Banking, that means you can perform transactions from any of the Post offices in India. As on February 22, 2016, 17,057 post offices are utilizing Core Banking Solution. Core Insurance Solution is rolled out in 805 head post offices and the corresponding sub offices. 510 ATMs have been installed
During the earlier times each branch had its own computer and transactions were automated on that computer only. This is called as Total Branch Automation. Consolidation of data of various branches was done at Head Office at a decided periodicity. With advancement in technology all the computers of all the branches were connected to a single computer at the main centre and transactions where recorded centrally. This concept is core-banking.
What are the objectives of Core Banking Solution project in Post Offices?
To provide Anytime, Anywhere banking. Anytime, Anywhere banking means that the banking customers can make inquiries and transactions at any location and at any time via multiple channels like ATM, internet banking, phone banking, SMS etc. The key objectives are as below:
- To increase the number of customers
- To provide multiple delivery channels like internet, mobile banking, ATMs, thereby bringing access to financial services to the doorsteps of the customers
- To enable faster money fund transfers to reach out to more customers
- To become one stop solution for financial inclusion initiatives of the Government of India
In CBS environment, transactions can be initiated in any CBS Post Office. Any depositor of Savings, RD, TD, MIS, SCSS, PPF or Certificates can initiate transaction either Financial or Non-Financial at any CBS Post Office.
Post office as Banks: Payment Banks
How to use Modern Post Office Services: CBS, Internet Banking, Mobile App
Every customer will be first allotted which will be a different from the account number. All the accounts opened by the same customer will be linked to his CIF number which will help in validating the limits of investments/number of accounts prescribed in the rules automatically at the time of opening account.
If you have an invested in any scheme in Post office you would be alloted a CIF number. You have to visit the branch, get the CIF number, Cheque book if you have a saving bank account, enroll for Net Banking.
Note: If Customer Already have CIF ID in India Post, kindly Mention the same in New Account Opening form to Account opening process make it easier.
Core Banking Solution CBS
- In CBS environment, transactions can be initiated in any CBS Post Office. Any depositor of Savings, RD, TD, MIS, SCSS, PPF or Certificates can initiate transaction either Financial or Non-Financial at any CBS Post Office. There is no need to transfer your account from one CBS branch to another. Quoting from Post office document on Clarification on different Scenarios being presented after implementation of CBS. (pdf)
- When Account Holder of MIS/SCSS/TD scheme approaches CBS Post Office, where account stands for transfer of accounts before maturity to another CBS Post Office. The Counter PA or Supervisor or Postmaster should politely request the Account holder that since CBS has been implemented in the office, where he wants to transfer Accounts, there is no need for transfer of Accounts as he/she, on maturity, can take payment from any CBS Post Office after giving fresh KYC documents. Whenever any account is closed at the office other than the office where account was opened, payment should not be made by cash in any case and payment should either be made by crossed cheque or credit to savings account (where required KYC documents have been taken). Monthly/quarterly or Yearly interest can also be withdrawn at any CBS Post Office.
- Payment of maturity value of MIS/RD/SCSS/TD/PPF/Certificates, payment should be made by crossed cheque or credit to Savings Account (where appropriate KYC documents have been taken).
- Duplicate Passbook can be issued by any CBS Post Office after following the laid down procedure of issue of duplicate Passbook.
- A Certificate holder of CBS Post Office, lost certificates and wants to get duplicate certificates issued. In such cases, certificate holder can apply for issue of duplicate certificates only at the CBS post office from where, certificates were issued. Process of issue of duplicate certificates should be started and completed by that CBS Post Office only
- Non Financial transaction,such as KYC, means modification in account or CIF. This can also be initiated at any CBS Post Office but it should be supported by documentary proof. This document and application for modification (to be taken on A4 size paper) should be sent to concerned CPC where modification is being done for scanning and attaching to CIF
Internet Banking for Post Office Saving Account
Department of Posts offers Internet Banking services to the customers as a part of Core-banking solution. Internet banking is the easy and most convenient way to transact- anytime, anyplace, at your convenience. Department of Posts offers Internet Banking services to the customers as a part of Core-banking solution. You can access Post office Internet Banking at https://ebanking.indiapost.gov.in
I want to register for Internet Banking. What do I do?
First of all you need to have a saving Bank account at a Post office. Visit the Post office where you have opened the account. You need to register for the Internet banking service with the Post office. You need to fill the form. The officials will guide you with the formalities. The PO branch will collect your application request for DoP internet banking and process in 10 working days. You may need to visit your Post office for collecting your login credentials.
I do not have an account with Post office. What should I do?
You can open saving Bank Account in Post office. It is easy to open an account in Post office but you have to go physically. Please visit any nearest Post office which is migrated into CBS network and open the account. You need to Submit the documents of
- Account Opening Application form
- KYC Documents like Address proof /ID Proof.
On First Login
During the first login, you need to go through a simple initialization process. The user name and password given on registering for Internet Banking services are system generated. When you login to DoP Internet Banking Portal, you must change your user name and password.
If I am unable to login with the user name and password assigned to me. What should I do?
The user name and password are cryptic in nature because they are system generated and are case sensitive. When you are typing the user name and password for the first time, ensure that you type the characters as they appear in the document sent to you. If you still encounter problems, log a complaint in the “Complaints” link in the login page or contact your Post office branch immediately.
What happens If I forget my Internet Banking Password.
Click on the ‘Forgot password’ link in the site and provide the requested information. A new password will be sent to your registered email address.
What happens if I forget my Internet banking username?
If you forget the Internet banking user name, contact your Post office branch and re-register yourself.
Customer Care Numbers or Help Desk numbers for DoP
Customer Care Numbers or Help Desk numbers for DoP Internet Banking are given below
+91 89396 58163
+91 89396 58172
PostInfo Mobile App
Centre for Excellence in Postal Technology, Mysore has developed a citizen centric app for mobile phones. The app provide facility for tracking of items(eMoney orders, Registered articles, Parcels and Speed post etc.), Post Office Pincode, Contact details and address search, Postage calculator,Postal Life and Rural Life Insurance,IndiaPost premium calculator, Interest calculator for Small Savings). You can download the PostInfo app from Google PlayStore. It is 9.2 MB in size and requires Android 4.0 and up.
- Post office Small Savings Schemes : Changes in Interest Rate from 1st Apr 2016
- Public Provident Fund or PPF
- Sukanya Samriddhi Scheme
- Senior Citizen Savings Scheme
- Senior Citizen : Income and Tax
Post office are modernizing. With Core Banking Solution life of a Post Office Customer has become simple. Going to Post office would now be minimal, Submit KYC document , Registering for Internet etc. We had invested in Post Office Monthly Income Scheme and Recurring Deposit, 6 years back, When we went recently to withdraw money on maturity we noticed the changes. We have not closed our Saving Bank account in Post office. Have you tried the new modern Post Office? How has been your experience.