Department of Posts

Average business provided by major players is as follows: Amazon: ~3 Lakh articles per month (peak 6 Lakhs) Snapdeal:80000 articles per month Myntra:50000 articles per month Flipkart:30000 articles per month Yepme:60000 articles per month Parcel Revenue: Rs. 92.35 Crores till Nov 2015 Speed Post revenue: Rs. 1023 Cr till Nov 2015 (~10% eCommerce business) COD remittances : Total >Rs. 1000 Cr till Dec 15

Profile of Revenue Stream

(in Rs Crore) Products 2013-14 2014-15 2015-16(Upto Nov)

Speed Post 1372.2 1495.2

1023.5

Business Post 1029.5 962.5

553.7

Bill Mail Post 103.0 103.6

62.4

Express Parcel Post

77.6 64.3

38.0

Retail Post 70.2 84.4

51.5

Sale of Stamps

670.7 576.2

345.7

Logistics Post 15.3 24.4

10.7

Money Orders 606.9 632.3

331.9

Others 869.8 1023.0

415.3

Revenue from P.O.

4815.2 4966.0 2832.6

SBCC 5915.3 6670.0 5092.5

Total Revenue 10730.4 11636.0 7925.1

· Revenue Growth

· Speed Post revenue growth in the current FY is more than 16%. CAG report laid in Parliament on 8th May 2015 highlights that Speed Post is far better than private couriers, in terms of reach, assured delivery and delivery time.

– Department has tied-up with more than 400 e-commerce agencies including Flipkart, Snapdeal, Amazon, YepMe, Shopclues etc for delivering e-Commerce pre-paid as well as Cash on Delivery (CoD) orders. Amazon is the largest business partner in e-Commerce. Rs 1000 Crore COD collection by Department of Posts so far and this figure this likely to cross Rs 1500 Crores by the end of the current FY. – Parcel revenue which registered 2% decline in 2013-14, registered 37% growth in 2014-15. 117% growth in parcel revenue till 31st October 2015 in the current FY.

· Digital India

– Core Banking Solution (CBS) rolled out in 12441 Post Offices along with 300 ATMs. CBS shall be rolled-out in all 25,000 Departmental POs along with 1000 ATMs by 31st March 2016. – Core Insurance Solution (CIS) rolled out in 23,792 Post Offices and shall be rolled out in all 25,000 Departmental POs by 31st March 2016. – Supply of solar powered, biometric hand-held devices with connectivity to about 20,000 rural Branch Post Offices shall be completed by 31st March 2016. All 130,000 rural post offices would be provided with hand-held devices by March 2017.

• Promoting Financial Inclusion

– India Post Payments Bank (IPPB)- RBI has accorded in-principle approval for setting up of Department of Posts Payments Bank on 7th September 2015. IPPB shall be set up by March 2017 and shall leverage the physical and IT infrastructure of the Post office, using low-cost, low-risk, technology based solutions to extend access to formal banking especially in rural, un-banked and under-banked areas, including MSMEs, small entrepreneurs, Village Panchayats & SHGs

– Number of Post Office Savings accounts increased from 30.86 Crore to 33.60 Crore and total deposits of POSB accounts and Cash Certificates to Rs 6.5 Lakh Crore. – More than 80 lakh Sukanya Samriddhi Yojana accounts opened with a cumulative investment of more than Rs 2900 Crore since launch on 22nd January 2015. – More than 1.84 Crore Kisan Vikas Patras sold, attracting an investment of more than Rs 16,429 Crore since launch on 18th November 2014. – Launch of PM Suraksha Bima Yojana and PM Jeewan Jyoti Yojana for Post Office Savings Bank account holders in CBS Post Offices. So far, more than 57,000 policies have been sold to POSB customers. – Increase in maximum sum assured in Postal Life Insurance from Rs 20 Lakh to Rs 50 lakh and for Rural PLI from Rs 5 lakh to Rs 10 lakh in order to provide more investment opportunities to customers and also increase claim amount to nominees in case of death.

List of Products/Services which can be launched by Hon'ble MOC&IT during

the event on 28th Dec 2015 - service/product features, benefits, target

beneficiaries etc.

a. Launch of the Rural ICT project of the Department by handing over the

solar powered, biometric hand-held devices with connectivity along

with the application software to Gramin Dak Sewaks from three pilot

Circles viz Bihar, UP and Rajasthan

Benefits of Hand-held device to the rural citizen

1. Electronic transactions- Booking and delivery of Speed Post,

registered mail, money orders, sale of stamps and postal stationary will

be done through these devices and paper receipt shall be generated

instantaneously thereby eliminating chances of overcharging and other

problems associated with manual transactions. Savings Bank deposits &

withdrawals, PLI/RPLI premium deposits and loan/claim payments will

also be done electronically on these devices.

2. Immediate uploading of transaction data and financial

reconciliation- Using mobile connectivity, data pertaining to all

transactions done on the hand-held devices shall be uploaded onto the

central server. E-Money order will reach the destination post office

instantaneously unlike present day where the money order is digitized at

the nearest computerized Post Office and leads to delay in delivery. All

financial transactions shall also be reconciled immediately without any

manual intervention and Cash on Delivery amount collected in the

village shall be immediately credited to the account of e-Commerce

Company. Similarly the artisans would be able to fulfill e-commerce

orders and receive immediate payment for their sold products online.

This will have a positive impact on the overall economy of the villages.

3. Automatic track and trace- Speed Post and Registered

letters/parcels and money remittances will be trackable at the Branch

Post Office level and booking/delivery information will also be

uploaded to central server immediately.

4. Fraud and leakage elimination- As Savings Bank and Postal

Life Insurance transactions will be done on a real-time basis and through

immediate generation of receipt and voice message, chances of fraud

would be eliminated. Biometric authentication of MNREGS and social

security beneficiaries at the time of pay-out would also reduce leakage

in the schemes

5. Post Offices as Common Service Centres- Branch Post Offices

shall be able to work as Common Service Centres and offer services

such as Railway Reservation, online bill payment for electricity and

water utilities, mobile and DTH recharge, insurance policy premium

payments & transactions for partner banks/insurance companies/mutual

funds etc

b. E-dedication of 12000th CBS Post Office to the nation- Core Banking

Solution has enabled ‘Anywhere Anytime Banking’ to Post Office Savings

Bank customers and made available multiple service delivery options such

as ATM, mobile phone and internet.

The core banking solution is part of the IT Modernization project of India

Post that aims to bring in various IT solutions with the required IT

infrastructure to the post offices. The primary objective of the IT

modernization project has been to enhance customer, satisfaction

through better service delivery. India Post plans to implement Core

Banking Solution in all departmental Post Offices and install 1000 ATMs in

major Post Offices. The project will bring in facilities of ‘any time

anywhere Banking’, ATM Banking, Internet Banking, Mobile Banking and

Phone Banking to the Post Office Savings Bank customers.

As on 21.12.2015, 11082 (804 HOs & 10278 SOs) Post Offices have gone

live across the country having 31.28 crore accounts (14.49 crore accounts

& 16.28 crore certificates) and a deposit of Rs. 398959.51 crores have

been migrated to Core Banking Solution. ATMs have been installed at 197

locations.

Advantages of Core Banking Project

Core Banking System (CBS) will provide the following benefits:

(i) Improving service quality: Anytime and anywhere banking will provide convenience to Post Office Account holders in the form of access to their accounts through ATMs, Internet, Mobile and Phone banking. The time taken for transactions will be reduced by providing services through alternate channels on 24 x 7 basis – ATM, Internet, Phone and Mobile Banking by facilitating transfer of money through NEFT (National Electronic Fund Transfer) or RTGS (Real time Gross Settlement System)

(ii) Improving operational efficiency: Core banking will reduce operational costs by reducing transactions costs and by avoiding duplication of work at various levels.

(iii) Standardized, simple and automated processes (iv) Timely and accurate information for management decision making (v) Strong audit and internal controls (vi) Paving way for new value added services and operationalizing it in a quicker

manner.

c. E-dedication of 251st Post Office ATM to the nation- So far 197 Post

Office ATMs have been commissioned.

d. Announcement of launch of Internet and Mobile Banking facility to

POSB customers starting 7th January 2016. CBS brings in facilities of

Internet Banking, Mobile banking and ATM banking to the Post Office

Savings Bank customers. It enables POSB customers to perform

transactions 24x7 in ATMs and to transfer money from their Post Office

account to any Post Office/bank account through NEFT and RTGS also.

e. E-release of a compendium/handbook on preservation and disposal of

old records in Post Offices, Mail Offices, administrative offices, accounts

offices, PSDs/CSDs etc along with details on their preservation as well

as destruction/disposal procedure.

Compendium on eGov services and products - Information on ICT/e Gov

initiatives (citizen centric portals, mobile apps, e services) taken in the last one

year

a. 27,500 Post Offices, mail offices and administrative offices networked

into a country-wide WAN making it the largest single-organization

WAN in the country. Disaster Recovery Centre (DRC) at Mysore

operationalized on 15th May 2015. WAN has linked all the Post Offices

to the Data Centre facility at Mumbai and enabled Department to roll

out Core Banking Solution, Core Insurance, Core System Integrator

applications that all operate on a common database and help

customers access their accounts/policies from any Post Office as well

as on the internet.

b. Core Banking Solution (CBS) rolled out in 11082 Post Offices along with

160 ATMs. CBS shall be rolled-out in all 25,000 Departmental POs by

31st March 2016 and 1000 ATMs commissioned.

c. Core Insurance Solution (CIS) rolled out in 22103 Post Offices and shall

be rolled out in all 25,000 Departmental POs by 31st March 2016.

d. Solar powered, biometric hand-held devices with connectivity shall be

supplied to all 130,000 rural Branch Post Offices. The project shall be

flagged-off by the hon’ble MoC&IT on 28th December 2015 with the

handing over of hand-held devices to Branch Postmasters from 3 pilot

Circles viz Bihar, UP and Rajasthan. All 130,000 devices would be

rolled-out by March 2017.

e. India Post Mobile app (Postinfo app is available on Google Playstore)

for track and trace for Speed Post, registered mail and parcels, Post

Office and pincode search, information of services etc launched by the

hon’ble MoC&IT in May 2015.

f. More than 76 lakh Sukanya Samriddhi Yojana accounts opened with a

cumulative investment of more than Rs 2715 Crore since launch on

22nd

January 2015.

g. More than 1.59 Crore Kisan Vikas Patras sold, attracting an investment

of more than Rs 14,216 Crore since launch on 18th

November 2014.

h. Launch of PM Suraksha Bima Yojana, PM Jeewan Jyoti Yojana and Atal

Pension Yojana for Post Office Savings Bank account holders in CBS

Post Offices. SO far, more than 57,000 policies have been sold to POSB

customers.

i. Increase in maximum sum assured in Postal Life Insurance from Rs 20

Lakh to Rs 50 lakh and for Rural PLI from Rs 5 lakh to Rs 10 lakh in order

to provide more investment opportunities to customers and also

increase claim amount to nominees in case of death.

j. Parcel revenue which registered 2% decline in 2013-14, registered 37%

growth in 2014-15. 117% growth in parcel revenue till 30th November

2015 in the current FY.

k. Rs 980 Crore Cash On Delivery (COD) collection done by DoP so far and

this figure this likely to cross Rs 1500 Crores by the end of the current

FY.

l. 57 integrated state-of-the-art parcel centres have been created for

booking, processing and delivery of e-Commerce parcels.

m. RBI has accorded in-principle approval for setting up of Department of

Posts Payments Bank on 7th September 2015. As per this approval,

DoP has to operationalize the Payments Bank before 6th March 2017.

n. Department has signed an Agreement with Common Service Centre,

an SPV under DeitY, on 12th October 2015, for rolling out Common

Service Centre services in rural Post Offices and also appointing

existing CSCs as Post Office franchisee. A total of 22 CSCs are being

rolled out in rural Post Offices of 4 pilot Circles (Bihar, UP, MP and

Gujarat) before 31st December 2015.

Major initiatives of the Department of Posts in the last 18 months

• Transforming physical network into digital network – 27,500 Post Offices, mail offices and administrative offices networked

into a country-wide WAN making it the largest single-organization WAN in the country. Disaster Recovery Centre (DRC) at Mysore operationalized on 15th May 2015. WAN has linked all the Post Offices to the Data Centre facility at

Mumbai and enabled Department to roll out Core Banking Solution,

Core Insurance, Core System Integrator applications that all operate on

a common database and help customers access their accounts/policies

from any Post Office as well as on the internet.

– Core Banking Solution (CBS) rolled out in 8623 Post Offices along with 125 ATMs. CBS shall be rolled-out in all 25,000 Departmental POs by 31st March 2016.

– Core Insurance Solution (CIS) rolled out in 19,537 Post Offices and shall be rolled out in all 25,000 Departmental POs by 31st December 2015.

– Upto 31st March 2016, solar powered, biometric hand-held devices with connectivity shall be supplied to about 20,000 rural Branch Post Offices. The application for these hand-held devices is being developed by Infosys

and User Acceptance Testing is scheduled for December 2015. All 130,000 devices would be rolled-out by March 2017.

Benefits of Hand-held device to the rural citizen

1. Electronic transactions- Booking and delivery of Speed Post, registered

mail, money orders, sale of stamps and postal stationary will be done

through these devices and paper receipt shall be generated

instantaneously thereby eliminating chances of overcharging and other

problems associated with manual transactions. Savings Bank deposits &

withdrawals, PLI/RPLI premium deposits and loan/claim payments will

also be done electronically on these devices.

2. Immediate uploading of transaction data and financial

reconciliation- Using mobile connectivity, data pertaining to all

transactions done on the hand-held devices shall be uploaded onto the

central server. E-Money order will reach the destination post office

instantaneously unlike present day where the money order is digitized at

the nearest computerized Post Office and leads to delay in delivery. All

financial transactions shall also be reconciled immediately without any

manual intervention and Cash on Delivery amount collected in the village

shall be immediately credited to the account of e-Commerce Company.

Similarly the artisans would be able to fulfill e-commerce orders and

receive immediate payment for their sold products online. This will have

a positive impact on the overall economy of the villages.

3. Automatic track and trace- Speed Post and Registered letters/parcels

and money remittances will be trackable at the Branch Post Office level

and booking/delivery information will also be uploaded to central server

immediately.

4. Fraud and leakage elimination- As Savings Bank and Postal Life

Insurance transactions will be done on a real-time basis and through

immediate generation of receipt and voice message, chances of fraud

would be eliminated. Biometric authentication of MNREGS and social

security beneficiaries at the time of pay-out would also reduce leakage

in the schemes

5. Post Offices as Common Service Centres- Branch Post Offices shall

be able to work as Common Service Centres and offer services such as

Railway Reservation, online bill payment for electricity and water utilities,

mobile and DTH recharge, insurance policy premium payments &

transactions for partner banks/insurance companies/mutual funds etc

• Promoting Financial Inclusion – Number of Post Office Savings accounts increased from 30.86 Crore to

33.53 Crore and total deposits of POSB accounts and Cash Certificates to Rs 6.4 Lakh Crore.

– More than 75 lakh Sukanya Samriddhi Yojana accounts opened with a cumulative investment of more than Rs 2100 Crore since launch on

22nd

January 2015. Public Sector Banks have opened a total of 1,08,478 accounts upto 31st August 2015.

– More than 1.4 Crore Kisan Vikas Patras sold, attracting an investment

of more than Rs 12,400 Crore since launch on 18th

November 2014. Banks are yet to sell any KVP.

– Launch of PM Suraksha Bima Yojana and PM Jeewan Jyoti Yojana for

Post Office Savings Bank account holders in CBS Post Offices on 7th

September 2015 after approval of Ministry of Finance in August 2015. SO far, more than 50,000 policies have been sold to POSB customers.

– Increase in maximum sum assured in Postal Life Insurance from Rs 20 Lakh to Rs 50 lakh and for Rural PLI from Rs 5 lakh to Rs 10 lakh in order

to provide more investment opportunities to customers and also increase claim amount to nominees in case of death.

• Driving e-Commerce revolution in rural and semi-urban India – Department has tied-up with Flipkart, Snapdeal, Amazon, YepMe,

Shopclues etc for delivering e-Commerce pre-paid as well as Cash on Delivery (CoD) orders. Amazon the largest business partner in e-Commerce (Rs 35 Crore revenue in the current FY from Amazon)

– Parcel revenue which registered 2% decline in 2013-14, registered 37% growth in 2014-15. 117% growth in parcel revenue till 31st October 2015 in the current FY.

– Rs 800 Crore COD collection by DoP so far and this figure this likely to cross Rs 1500 Crores by the end of the current FY.

– 48 integrated state-of-the-art parcel centres have been created for booking, processing and delivery of e-Commerce parcels. 9 more such Centres are being established in the current FY.

Speed Post

Speed Post revenues have increased consistently in the last 2 years.

FY 2011-12 2012-13 2013-14 2014-15 2015-16

Revenue in Crores

889.64 1261.47 1372.21 1470.53 905 (Till 31st October 2015)

Speed Post revenue growth in the current FY is more than 16%

Setting up of Payments Bank

RBI has accorded in-principle approval for setting up of Department of Posts Payments Bank on 7th September 2015. As per this approval, DoP has to operationalize the Payments Bank before 6th March 2017.

Public Investment Board (PIB) memo was circulated by the Department among stake-holder Ministries/Departments, for which comments have been received and are being incorporated in the final memo. After PIB recommendations, final approval for setting up of Payments Bank shall be obtained from the Cabinet.

RFP is being circulated among the bidders shortlisted through EOI for selecting a Consultant for the Project

Common Service Centres Department has signed an Agreement with Common Service Centre,

an SPV under DeitY, on 12th October 2015, for rolling out Common Service Centre services in rural Post Offices and also appointing existing CSCs as Post Office franchisee.

A total of 22 CSCs are being rolled out in rural Post Offices of 4 pilot Circles (Bihar, UP, MP and Gujarat) before 31st December 2015.

.