In a new order, India Post introduced biometric Aadhaar-enabled banking services in Branch Post Offices through the DREAM mobile application, while also setting a key compliance deadline: from September 1, customers whose Post Office Savings Bank (POSB) accounts are not linked with a mobile number will no longer be able to carry out transactions through the DREAM platform.
The order effectively creates a new operational rule for rural postal banking customers.
While mobile number linkage had earlier been made mandatory for POSB accounts, the Department has now attached a consequence to non-compliance. Beginning September 1, DREAM app transactions, including Aadhaar-authenticated deposits and withdrawals at Branch Post Offices, will be blocked for accounts without registered mobile numbers.
The move is aimed at strengthening digital verification, transaction alerts and fraud prevention mechanisms as India Post expands Aadhaar-based banking services into rural areas.
Aadhaar-based transactions expand to village post offices
The latest order marks the first phase of e-KYC-enabled banking operations at Branch Post Offices. Customers can now use biometric authentication for routine banking transactions without filling traditional paper slips.
The newly introduced facilities include:
- Deposits up to ₹50,000 in savings, RD and Sukanya Samriddhi accounts through biometric authentication.
- Withdrawals up to ₹20,000 from savings accounts without withdrawal slips.
- Conversion of existing customer records into Aadhaar-based e-KYC profiles.
The services will currently apply only to single-holder accounts. Joint and minor accounts remain outside the e-KYC transaction framework.
Major change: Transactions possible from any branch post office
In another significant change, India Post has introduced “BO inter-operability.”
Until now, customers could conduct transactions only at the Branch Post Office where their account was maintained. Under the new Aadhaar-authenticated system, eligible customers will be able to transact from any Branch Post Office across the network.
The Department believes this could significantly improve convenience for rural customers, migrant workers and beneficiaries of government schemes who may not always be near their home branch.
Aadhaar data to become the primary record
Under the new e-KYC system, customer details such as name, address, gender and date of birth will be pulled directly from the UIDAI database after biometric consent.
Postal staff will not be allowed to manually edit Aadhaar-fetched information. If customer details are incomplete or mismatched, the account cannot be converted into e-KYC status until Aadhaar records are corrected.
Customers facing such issues will continue using traditional paper-based transactions.
First Published: Jun 25, 2026 8:46 AM IST
