Finance Minister P Chidambaram and Padmini Gopinath, Secretary Department of Posts look on as a customer withdraws money from the India’s first Postal ATM which was inaugurated by the Minister at T. Nagar Post Office in Chennai on Thursday.
Chidambaram said that Rs 4,909 crore had been allocated for the IT modernisation of Department of Posts in the interim budget for 2014-15.
The IT modernisation scheme would cover 1.55 lakh Post offices and would be
implemented by next year, he added. Speaking about the newly launched ATM service at the HPO, Chidambaram said that while it will initially operate in a closed environment for about six months, it will later change to ‘inter-operability,’ on the lines of bank ATMs, allowing customers to withdraw money from any ATM. An official release said the T Nagar HPO ATM is the first in the country and “four more ATMs are ready for operations” in Delhi and Mumbai. It added that Rs 700 crore has been earmarked for implementing Core Banking Solution (CBS) for Post office Savings Bank.