In a big boost for digital payments, post offices across India can now accept UPI transactions from customers of any bank. Until recently, technical limitations meant that only holders of India Post Payments Bank accounts could use UPI at postal counters. The removal of this restriction is expected to make postal services more convenient and encourage greater use of cashless payments in towns and villages.
According to the Department of Posts, the change is part of a broader modernisation drive. The ministry has rolled out a Rs 5,800 crore project called the Advanced Postal Technology platform, designed to transform India Post into a world-class logistics and financial services organisation. By upgrading software and hardware at thousands of branches, the department has gained the capability to process UPI payments from any bank through interoperable QR codes and mobile devices.
Communications Minister Jyotiraditya Scindia announced the milestone during a media briefing. He said the Advanced Postal Technology platform will allow the postal network to offer a range of mobile-based services, from parcel tracking to digital savings, while enabling managers to make real-time operational decisions. The goal is to strengthen India Post as a reliable last-mile partner in the rapidly growing e-commerce and financial sector.
For customers, the new UPI facility will simplify transactions at post offices. People can now pay for services such as parcel bookings, postal savings or retail purchases using any UPI-enabled app linked to their bank account. Officials hope the seamless payment option will attract younger users, reduce cash handling and support the government’s broader agenda of financial inclusion.
Industry observers note that India Post has one of the widest physical networks in the country, and its adoption of interoperable digital payments could play a crucial role in bringing rural and semi-urban populations into the fold of cashless commerce. With the technology upgrade in place, the department aims to deploy more mobile-based services and gradually build a data-driven logistics ecosystem.
Summary:
- Post offices can now accept UPI payments from customers of any bank, not just India Post Payments Bank.
- The change follows a Rs 5,800 crore Advanced Postal Technology project that upgraded systems nationwide.
- Communications Minister Jyotiraditya Scindia says the platform will enable mobile services and real-time decision-making.
- Customers can use any UPI app to pay for postal services, reducing reliance on cash and improving convenience.
- The initiative is expected to boost digital payments and financial inclusion, especially in rural areas.
