It is reported that, there is a proposal to introduce Core Banking Solution (CBS) in 4, 000 post offices for ensuring “anytime, anywhere and any branch banking” in these 4000 post offices and, also that, there is a financial outlay of Rs.106 crores for development of the requisite software, customer relations management, training, project management unit, centralised back office, etc. during the 11th Five Year Plan. The project reportedly aims at provision of delivery channels like ATM, internet, phone and mobile banking services besides streamlining the existing operations of savings schemes /savings certificates. It is also reported that, till now, 117 officers have already been imparted CBS appreciation training and 60 operative officials have attended workshop on Core Banking.
The reported move would appear to be directed toward increasing the volume of business of the post office savings banks (POSB). But, what is strange is that, the present system being followed in respect of POSB positively discourages people from patronising these banks which can be developed into the largest banking network in the country. At present, there are monetary limits on the maximum amount of interest-earning deposits in POSBs. In the case of joint account, interest is allowed on the deposit not exceeding Rs. 2 lakhs while, for an individual, the limit is Rs. 1 lakh only. The logic of these monetary limits is not very realistic in the present situation with higher generation of incomes. Moreover, to make the CBS in the POSB cost-effective, these limits must be raised as otherwise POSBs will continue to cater to the villages and muffassils where the scope of income generation is becoming smaller and there is constant and unending movement of the rural poor to the urban centres.
The deptt. of Posts and the government may like to ponder over this aspect.
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