[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.