Chennai: After more than 20,500 post offices on Monday suffered a major slowdown nationally, India Post's Chennai office said its core banking network was partially restored on Wednesday, in the region. Serpentine queues could be seen in front of city post offices as people unsuccessfully tried to make last minute tax saving deposits.
While there has always been a year-end rush to claim tax benefits on investments, this time the problem was heightened by the four-day Easter holiday and the Centre's decision to lower interest rates on small saving schemes effective April 1.
Chennai region post master general Mervin Alexander said they saw a large number of customers wanting to invest in the postal saving scheme after it the announcement that March 31 depositors could benefit from the existing interest rate instead of the revised one in April. At an all-India level, India Post did not foresee the rush and the core-banking system crashed in many post offices in states, including Maharashtra, Delhi, Gujarat, Telangana, Himachal Pradesh, Madhya Pradesh and Tamil Nadu.
TOI reported on Monday that the post offices' troubles arise from the fast rollout of core banking platform across the country, which has been facing problems as it had not yet stabilized.
Mervin Alexander said the withdrawals will take some time as the glitch is being looked into and the customers will have to opt for cash from postal ATM's.
Source:-The Times of India