Postmasters expressed serious alarm after it emerged the Tánaiste’s Department had written to thousands of pensioners inviting them to transfer their welfare payments to Electronic Funds Transfer.
The move was seen as a direct attack on the viability of post offices, particularly in rural areas- with fears it could lead to many closing down.
However Junior Minister Kevin Humphries has now stated no further letters would be sent out a move broadly welcomed by the Irish Postmasters Union.
The IPU has also welcomed Minister Humphries announcement that An Post has tendered for the development of a new Post Office based Transaction Account.
Postmasters say this would enable them to provide electronic transfer services and would also support financial inclusion.
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