ABSTRACT
The Post Office Savings Bank (POSB) of India is an institution steeped in history. The POSB originated in the Government Savings Bank Act of 1873 with the mandate of providing facilities for the general population to invest their savings. It opened its first branch on 1 April 1882, and by the end of 1883 the POSB was showing significant growth, registering 4,066 branches, 39,129 accounts, and deposits totaling Rs. 2,796,796. At that time the POSB was then open for transactions on all weekdays between 12 noon and 4 p.m.; however, a depositor could withdraw money only once a week. The rate of interest was 3.75 percent, subject to no higher monthly interest than Rs. 9.6 being allowed on any account. By 1886 the success of the POSB had convinced the government to amalgamate the District Treasuries Banks with the Post Office Savings Banks. From that point on the Post Office Savings Banks really began to come into their own.
