India Post announced to install as many as 3000 Automated Teller Machine (ATM) and 1.35 lakh micro-ATMs by September 2015 on 27 January 2014. The facility will be available for savings account holders of post offices across the country.
Initially, three ATMs were to be installed in New Delhi, Chennai and Bangalore by 5 February 2014.
After six months of launch of the service, India Post might get interoperability permission from Reserve Bank of India (RBI). After that India Post will join the National Financial Switch, which will benefit India Post account holders to transact at the banks' ATMs and vice versa.
The ATMs can be used only by 26 crore savings account-holders who save with the postal department.
India Post is working with software major Infosys on this project.
The micro ATMs will be handheld devices to be operated at the post office level while the ATM will be similar to the one operated by any commercial bank.
Postal savings are worth around 6.05 trillion rupees, which is half the savings in the largest lender SBI and more than double that of the largest private sector lender ICICI Bank.
The postal department, which has 1.55 lakh post offices over 90% of which are in villages, offers the savings account to people across the country and pays an interest of 4% per annum for such deposits. The account offers cheque facility at present.
DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.