The post office has begun the process of enabling transactions and account openings through the Post Office Savings Bank (POSB) using Aadhaar biometric verification (e-KYC). This e-KYC feature will be gradually rolled out, starting with its availability at POSA and post office counters. New customers will be able to open accounts and conduct transactions, while existing customers will have their e-KYC and KYC information updated.
In the subsequent phase, the post office plans to offer account opening, closing, and transactions for various schemes such as RD, TD, MIS, and SCSS through e-KYC. However, for now, transactions at post offices will be capped at five thousand rupees using Aadhaar biometric. For any transactions above this limit, vouchers will be required. This entire process will be managed through the post office’s Finacle software, which has seen significant updates.
Updating Aadhaar is essential
As per the postal department’s directive dated January 1, 2025, “Basic savings accounts and single type POSA (Post Office Savings Account) will be established in the Finacle software using Aadhaar authentication. e-KYC will also be necessary for opening accounts for other schemes. The transition of additional services like account closures and transfers to this software is currently in progress. Individuals wishing to open a post office account must ensure their Aadhaar is updated, as accounts cannot be opened without it.
In the second phase, customers will enjoy additional services
During the second phase of this initiative, the Department of Posts is planning to introduce more services, including account opening, closing, and transactions via e-KYC. In the future, the department aims to offer a variety of services for both new customers and existing account holders. The post office is swiftly advancing towards digital solutions for a more paperless operation.
The department has decided to enhance customer service by introducing Aadhaar biometric facilities. In the near future, having an Aadhaar will be essential for various activities, such as opening accounts and conducting transactions at post offices.
This new process will be rolled out in all post offices across the country starting January 6.
Initially, on November 26, 2024, the eKYC process was launched as a pilot in 12 head post offices and 2 sub-post offices. However, as of today, January 6, it is now available nationwide. This initiative will allow for the opening of new single savings accounts in all post offices, and existing account holders will also be linked to the eKYC system.
