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All 155,000 post offices will starting working using modern technology by next year, Finance Minister P Chidambaram said on Monday.
"The IT modernisation project of the Department of Posts with outlay of Rs 4,909 crore (Rs 49.09 billion) will be operational by 2015 in all 1.55 locations," the finance minister said.
The IT modernisation project with this outlay was approved by Cabinet Committee of Economic Affairs in November 2012.
It has to be implemented through eight projects which include core banking system technology, IT based management at post offices, business intelligence system to analyse and project new business opportunity.
The project aims at increasing efficiency, quickening transactions and enhancing transparency at all 1.55 lakh post offices in the country.
Under the project all rural post offices are to be provided with 1,30,000 handheld devices which will come with smart card reader for financial transactions, solar panel for charging it, biometric reader for immediate identification and thermal printer for immediate printing of receipt.
The device will enable post offices to deliver services at the door step of the customer.
The postal department has almost computerised about 25,000 of its departmental post offices but rural post offices will be provided handheld devices for digitalising records.