Post offices have become new banks for people to open accounts and deposit money

Chennai: The humble post offices are now cynosure of all eyes in every neighbourhood. Suddenly, there seems to be a huge rush outside every post office in the city and elsewhere with people queuing up to open new accounts.

With nationalised banks including the State Bank of India increasing the minimum balance to '5,000, people are now flocking to post offices to open accounts where the required minimum balance is just '50 and no fine is levied even if the norms are violated at times.

And the loss of banks is the gain of post offices. Sources in India Post told DC that there is a threefold increase in the number of new accounts since March 2017. “Apart from prime offices in Ashok Nagar, T Nagar and Anna Salai,  even branch post offices in the suburbs, which we were planning to shut down due to no floating visitors, are buzzing with potential customers. This has fuelled our interest in looking for initiatives that would enhance customer satisfaction,” says a senior official from the office of the Chief Post Master General of Tamil Nadu.

The senior official said at least 10 people knock on the doors of every post office in Tamil Nadu every day to open fresh accounts and women top the list.

With post offices providing almost every facility that a bank does – savings accounts, Public Provident Fund (PPF), recurring deposit, fixed deposit and even ATM cards –people say they don’t feel any difference between holding an account in a post office and a bank.

Sources in the postal department told Deccan Chronicle that they expect a huge rush of people for the opening of fresh accounts in the coming months as many are not aware of the increase in minimum balance for savings account holders in nationalised banks yet.

With the number of account holders, increasing manifold, the postal department has for now put on hold issuance of ATM cards to savings account holders.

“We have stopped issuing the cards from 1 April due to directions from the government. The new cards are being printed in Bangalore. We are accepting the applications,” manager of a post office in Chennai said.

As the banking system and infrastructure are quite advanced, it will take time for post offices to match it. They have, however introduced initiatives like easy withdrawal of cash and provision of receipts.