Post offices permitted to issue ATM cards

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Post offices can now function as half a bank

The recent amendment to the Post Office Savings Bank General Rules, 1981 has empowered Post Offices to function as Banks, except for credit operations business.

Key Points

  • Post offices can now issue ATM cards to account holders and traditional passbook system will be replaced by the account statements - similars to proper banks.
  • However, these facilities will be limited to select branches that are connected to Core Banking Solution (CBS) network.
  • CBS network connect all branches of a bank and this enables real time transaction on an account.
  • The move, already in effect, however will hardly benefit the rural population as only 676 post offices out of the total 1.55 lakh are connected to CBS network for the time being.


  • Post offices currently provide savings account, recurring deposits, fixed deposits, public provident funds apart from several other small savings schemes run by the government.
  • Over Rs 6 lakh crore are held by the India Post under various deposit schemes.
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