Department of Posts begins ECS service in Post offices, Step towards Digital Banking

Government of India has also started the facility of Electronic Clearing Service (ECS) outward credit for Post office account holders. With this, the amount received from the closure of the account operated in any Post office will be transferred online to the Bank account of the respective account holders. Now, cheques will no longer be issued for payment of amount invested in various Post office savings schemes. To avail this facility, customers have to present the cancelled cheque or the photocopy of the first page of the Bank passbook along with the withdrawal slip at the counter at the time of receipt of payments. Highlighting this, Postmaster General of Varanasi Region Mr. Krishna Kumar Yadav said that the Department of Posts is making unstinted efforts for digital banking and taking utmost care of the interests of the Post office account holders. Accordingly, new services are being introduced and implemented by the Government of India. In this connection, ECS service is an important step towards digital banking.

Postmaster General, Shri Krishna Kumar Yadav said that Post offices are playing an important role in financial inclusion and Antyodaya. Department of Posts is providing latest banking services up to the last mile. Especially in rural areas, most of the population still have accounts in Post offices. As such, introduction of Electronic Clearing Service (ECS) outward credit facility by the Government of India in the Post office will facilitate account holders in many ways. Depositors of Post Office Small Savings Schemes like Recurring Deposit (RD), Term Deposit (TD), Monthly Income Scheme (MIS), Public Provident Fund (PPF), Kisan Vikas Patra (K.P. Account holders of VP), National Savings Certificate (NSC) and Sukanya Samriddhi Yojana will be able to transfer the amount received from the closure of these accounts directly to their Bank accounts. With the introduction of this facility, the time of the account holders will be saved and they will be able to get rid of cheque deposit and cheque clearing in the Banks. Such customers, who want to receive payment from the Post office instead of receiving payment from the savings accounts operated in the bank, are free to withdraw the amount by transferring the amount to their savings account operated in the Post office as before. Post office will pay its customers through cheques only in certain special circumstances.

Postmaster General, Mr. Yadav added that the rate of interest in Post office Savings Schemes are very attractive. Government of India has given the gift of interest hike to the account holders of the Department of Posts in the beginning of New Year. Now, interest at the rate of 4.0% in Savings bank, 5.80% in RD, 6.60% to 7% in TD, 7.10% in MIS & PPF, 7.60% in Sukanya Samriddhi Yojana, and 8.0% in Senior Citizen Savings Scheme is payable. Income tax exemption can also be availed by investing in small savings schemes of Post offices. Department of Posts is continuously making their services more customer friendly by adopting latest technology. Now modern digital banking services like e-banking, mobile banking, NEFT, IVRS and e-passbook can be availed by linking mobile numbers with accounts, while the amount of various public welfare schemes can also be obtained in Post office saving bank accounts through Direct Benefit Transfer (DBT). Now IFSC code has also been allotted to Post offices across the country. IPOS0000DOP is the only IFSC code for all the post offices in the country.