UPA Government has sanctioned a sum of Rs 106 crores to Department of Post to enable the later implement core banking solution in its system.

The facility will enable the small savings scheme customers of the institution to access their accounts from any branch - "Anywhere, Anytime, any Branch banking"

Presently there are more than 18 crore savings accounts in Indian post offices. The department of Post plans to implement the solution initially in 100 post offices during FY 2009-10.

By the end of 11th Five Year Plan, the organization plans to bring another 4,000 post offices under the system.

The Minister of State for Communications and IT, Sachin Pilot, indicated, "The government has already approved a project that will help post offices implement core banking facility. The government has earmarked Rs 106 crores for developing software for the project."

The Indian post office has a deep on-the-ground presence, with 89 percent of its network concentration in rural areas. While the figure is challenging in terms of implementation of CBS, it also shows the vast opportunity available with the organization.

Recently, Indian Post revealed its plans to install of onsite ATMs for the saving bank accountholders.