Union Budget 2022: 150,000 Post Offices in India To Be Connected to Core Banking System

Finance Minister Nirmala Sitharaman on Tuesday announced that all 150,000 post offices in India will be connected to the core banking system.

Budget 2022: Finance Minister Nirmala Sitharaman on Tuesday announced that all 150,000 post offices in India will be connected to the core banking system that will enable people to access their account online and also transfer money within post office accounts and to other banks.

“In 2022, 100 per cent of 1.5 lakh post offices will come on the core banking system enabling financial inclusion and access to accounts through net banking, mobile banking ATMs and also provide online transfer of funds between post office accounts and bank accounts,” Sitharaman said.

She added that this will be helpful especially for farmers and senior citizens in the rural areas enabling interoperability and financial inclusion. Currently, post offices provide savings account services and payments bank services through the India Post Payments Bank.

Here are some of the key announcements:

• Finance Minister reduces Alternate Minimum Tax on co-operative societies tax rate to 15% from 18.5%
• Gift of cryptocurrencies to be taxed at the receiver’s end
• New provision to allow taxpayers to file an updated return. Updated return can be filed within 2 years from the end of the relevant assessment year.
• India to roll out own Digital Currency by 2023
• India to launch sovereign green bonds
• 5G spectrum auctions to be conducted this year
• ECLGS scheme extended till March 2023
• Capital expenditure is being stepped up to Rs 7.5 lakh crore
• Implementation of the Ken-Betwa linking project at the cost Rs 44,605 crore will be taken up