INTRODUCTION OF POST OFFICE

SAVINGS BANKS
The scheme of District Savings Bank was drawn up
and circulated to local governments and administrations
on 27-7-1868 and on 16-5-1870 all the local
Governments announced the establishment of District
Savings banks.
On 1-4-1882 the Post Office savings Banks (POSBs)
were opened all over India except in the Presidency of
Bombay where The Presidency bank had privileges
which it was unwilling to forego.
 In the Presidency of Madras the opening was limited
to certain places and in Bengal no POSB was
established in Calcutta and Howrah.
 The District Savings Banks were also allowed to
function until the POSB established itself firmly.
 The immediate result was addition of 4066 POSBs to
the 197 Districts savings Banks and Railways and the
regimental banks.
 At the end of 1882, the Post Office had 39,129
accounts with a balance of Rs. 27,96,796 .
 AMALGAMATION OF DISTRICTS SAVINGS
BANKS WITH POSBs.
• The Government of India in their resolution No. 33
dated 4-1-1886 decided that the District and POSBs
should be amalgamated with the Post Office
organization being more widely spread and more
convenient for the Public than the Treasury System.
• As a result of the merger, 31,699 accounts
representing Rs. 1,24,13,972 were transferred from
the Districts savings banks to POSBs.
• In order to promote small savings schemes a new
organizations, namely, National Savings Institute
replacing the existing National Savings Organization
has been set up under the control of Ministry of
Finance, Government of India.
 THE MAIN FUNCTIONS OF THE
INSTITUTE
• To promote small savings movements in all possible
ways to arrange publicity of various savings schemes
and mopping up as much savings as possible through
authorized agents or other voluntary workers.
• State governments also have their own organizations
to supplement the efforts of the National Savings
Institute. The states are too interested in savings
because 100% of the net collection in a State in small
savings are given to that State by the Central
Government in the shape of loans.
ROLE OF POST OFFICE SAVINGS BANK
 
• It has about 1,54,000 branches throughout India out
of which 1,30,000 are in the rural sector serving the
simple banking needs of the hitherto neglected rural
population.
• Since the first five year plan, the role of POSB has
gone a radical change. From the restricted objective a
facility to the public to deposit their savings, the
POSB has become a medium of mobilizing large
sources running into hundreds of crores every year
for planned projects.
• As a result of the change in the role, the expectations
of the performance of the POSB have gone up very
high both in the minds of those connected with small
savings and the general public.
THE GOVERNMENT HAS INTRODUCED
SEVERAL AGENCY SYSTEMS
• Standardised Agency System
• Mahila Pradhan Kshetriya Bachat Yojna
• Public Provident Fund Agency System
• Pay Roll Savings Scheme
• Incentive Schemes for Extra Departmental Sub
and Branch Postmasters.
• Savings Accounts
• Time Deposits Accounts
• It has taken over the payment of pension to the
Railway Pensioners by the automatic credit of
their pension in their Post Office Savings
(Pension) Account.
• The Scheme has also been extended to the P&T
pensioners. Thus the POSB provides much relief
to the pensioners who had to wait long either at
the treasury or in the post office to receive their
pension on the first of the every month.
• A scheme of payment of pension to freedom
fighters through POSB has been introduced w.e.f.
1-4-1983. These measures will also result
individually in boosting the small savings among
this category of public.