Re: Postal Banking

[amraykar]

Can General Post Office participate in clearing house activities ? Is the postal banking is legal one .

Do request members feedback


Avinash

[jps50]

Yes. post offices are participating in bankers' clearing house as they comply with RBI rules for clearing house membership. It is a good service for users of banking services.

[amraykar]

Dear Members.

Please understand, Post office & Post office saving bank are two different identity.

Post office saving bank are authorised participatory in local clearing house as per RBI guide lines.

But Post office can not be participatory of clearing house by any regulation & it is illegal.

Post offices acting as if they are bankers but this is not so. This is absolutely illegal. There is no such legal circular. And i have proof for this replied by RBI.

Very few people know the difference between Post office & Postal Banking. Hence people believe in good faith in Post office.

Thanks


Avinash

[vashisthvivek]

I could not understand as to how this discussion is relevant here in this website

[amraykar]

Because one of my friend got the reply from RBI , under right to information.

This is wrong on the part of Post office to participate in the clearing house on behalf of customer.

Tomorrow anything goes wrong such as cheque lost, then who would be respoisible. All related banks are raising the hands on this matter , hence my friend approched RBI. And the alarming answer by RBI is Post ofice can not participate in clearing house which is serious i feel.

I thought it would be useful to members of this group.

If not useful , then i will stop.

Thanks

[ganpat1956]

Originally Posted by vashisthvivek

I could not understand as to how this discussion is relevant here in this website

Dear vashisthvivek, this discussion has appeared under "Ask for Social Help" section of the lounge, which has been created only to deal with matters other than RTI

Originally Posted by amraykar

Can General Post Office participate in clearing house activities ? Is the postal banking is legal one .

Dear Avinash, It puzzles me as to why you raised the questions first and then posted the answers yourself subsequently. Any way thanks for sharing the information. If possible please post the reply given by RBI verbatim, for the knowledge of all of us.

[kushal]

yes, kindly do post the information you have from the RBI.

Post Office is a part of Government and Postal Saving bank is an agency function on behalf of the Ministry of Finance. I am not sure how had you differentiated Post Office with Postal bank? It is only in reference to Post Office Saving bank, does the Post Office issues cheques and the cheques issued by the Post Office are non other than that of the Government of India.

Department of Posts (Post Offices), Ministry of Communications and IT, Government of India has been member of clearing house from time immortal. However, on some cases where there are some operational issues, especially in rural towns, the Post Office have only sub clearing house and the transaction is accorded in such cases through State Bank of India.

Tomorrow anything goes wrong such as cheque lost, then who would be respoisible.

If you trust that your Government is responsible, than you must by now understand that for each of Post Office cheque, Government of India is responsible. Let me also tell you; the cheque of the Post Office (Govt. of India) carries as sanctity as that of a currency note issued by RBI.

Post offices acting as if they are bankers but this is not so.

yes, in a way you are right, post Office is not a retail bank. When it collect money, it is not in any bank you are depositing the money, but with Government of India. Also the Post Office do not give loans and therefore there are no risk attributable of it being liquidated. Also no banking regulation decide the rate of interest, it is the parliament which decide the rate of interest. This way Post Office only work as an agency to Ministry of Finance, and charges only operational cost from the Ministry of Finance. This way Post Office do not run in Profit-loss model.

[vashisthvivek]

Dear ganpat
Thanks for the clarification. Although, I had registered much earlier with the RTI India, but I was unlucky enough not to have used this site for a long time. I recently became the active user, so many times may ask silly questions. Sorry to all.

[ganpat1956]

Dear vashisthvivek,
If you really feel that you have missed the forum for a long time, then try to spend some additional time on the various discussions that have taken place in the recent past. As they say, much water has flown under the bridge. Our forum also keeps evolving and as a result there have been a lot of new changes. I am really happy to see your active participation in the recent times.

[vashisthvivek]

Dear ganpat
Thanks. I am trying my best to overcome the mistake, I have committed. I assure you that I will give my best to the forum. Thanks again for the encouragement

[amraykar]

Dear Kushalji

Scanned document exceeds the size permitted to upload. Whenever i get time , i will type it & send for this website.

Thanks

Originally Posted by kushal

yes, kindly do post the information you have from the RBI.

Post Office is a part of Government and Postal Saving bank is an agency function on behalf of the Ministry of Finance. I am not sure how had you differentiated Post Office with Postal bank? It is only in reference to Post Office Saving bank, does the Post Office issues cheques and the cheques issued by the Post Office are non other than that of the Government of India.

Department of Posts (Post Offices), Ministry of Communications and IT, Government of India has been member of clearing house from time immortal. However, on some cases where there are some operational issues, especially in rural towns, the Post Office have only sub clearing house and the transaction is accorded in such cases through State Bank of India.



If you trust that your Government is responsible, than you must by now understand that for each of Post Office cheque, Government of India is responsible. Let me also tell you; the cheque of the Post Office (Govt. of India) carries as sanctity as that of a currency note issued by RBI.


yes, in a way you are right, post Office is not a retail bank. When it collect money, it is not in any bank you are depositing the money, but with Government of India. Also the Post Office do not give loans and therefore there are no risk attributable of it being liquidated. Also no banking regulation decide the rate of interest, it is the parliament which decide the rate of interest. This way Post Office only work as an agency to Ministry of Finance, and charges only operational cost from the Ministry of Finance. This way Post Office do not run in Profit-loss model.

[kushal]

you can send that to us here admin[at]rtiindia.org
BTW, the pdf document that can be uploaded to RTI India is upto 20 MB. I am not sure if your document is more than that? or is there any other trouble?

[amraykar]

Dear Kaushalji

I will definately do the needful as & when time permits.

Thanks

[kushal]

This thread is now closed and in information graveyard.

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