Good news! Post office savings A/C holders can now opt for digital banking from May

New Delhi, April 9: The Finance Ministry has approved linking of post office savings accounts with that of India Post Payments Bank (IPPB). India Post is planning to link all 1.55 lakh post office branches with the 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," PTI reported.

The move will enable around 34 crore post office savings account holders in the country to do digital banking from May this year. The move also paves the way for creating of country's largest banking network as India Post has plans to link all 1.55 lakh post office branches with the IPPB.

India Post has 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.

As per an official statement issued earlier, India Post plans to start functioning of all 650 IPPB branches from this month. All 650 branches will be connected to smaller post offices in the districts.