main post office.docx

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INDIAN POST OFFICE AND BANKING

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1. Introduction

The Department of Post functioning under the brand name India Post , is a

governmentoperatedpostal systeminIndia;it is generally referred to within India

as "the post office".

The Indian Postal Service, with 155,333 post offices, is the most widely distributed

post office system in the world.. The large numbers are a result of a long tradition of

many disparate postal systems which were unified in the Indian Union post-

Independence. Owing to this far-flung reach and its presence in remote areas, the

Indian postal service is also involved in other services such as small savings banking

and financial services.
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History of Mumbai GPO (Bombay GPO)

The origin of the vast network of the Imperial Indian Post Offices can be traced to

the opening of the General Post Offices at Calcutta and Madras but in respect of

Mumbai GPO, sketchy information is traceable, scattered in the Mumbai Gazettes,

Gazetteers and other official records in the Presidency. The first reference is found in

the instructions issued in their letter book by the Company to the Council on 27th

August 1688 to erect a post office for all letters to be brought to and delivered at

Mumbai and the the land daks and passage boat should be established to take such

letters to Surat and Other places, and the post office should be first leased out to a

discreet and powerful man who ought to pay the Company for the contract not less than

E400 to E500 a year. The Presidency of Mumbai had to wait for a century to witness

the appointment of a Postmaster at Mumbai for the purpose of organizing a regular

postal communication with the Fort Saint George GPO Madras for receipt and

dispatches from the company. The exact date of establishment of Mumbai GPO is not

known to the postal historians.

In the month of November 1787 a Postmaster was presumably appointed at

Mumbai GPO for the first time in the history of Mumbai Presidency for receipt and

dispatch of a fortnightly mail between Mumbai and Madras, In 1789 and Calcutta via

Masulipatnam and Poona in the month of September of the year, The Postmaster

General functioned for the whole of Presidency with the upgradation of the post office

into a General Post Office in the year 1793. The Government opened a regular monthly

Mail Communication service with Great Britain via Bussora for dispatch on the first of

each month from 1st January 1798, four years after the first sea mail was introduced

from the Mumbai GPO. The Mumbai GPO established its position with other

Presidencies in the network of overland and inland postal communication lines within


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and outside British India, by opening runner lines to Surat, Delhi, Madras, Banglore,

Calcutta, between 1796 and 1820.

The GPO was first located in the Saint George Fort for the convenience of the East

India Company. Afterwards with the increase of private correspondence it was shifted to

the premises of the then Mumbai Bunder near Appollo Pier. On 18th October 1831 the

GPO was shifted to the premises opposite the head of Firbes Street. Again the GPO

establishment was removed to the new Post office building, adjoining the Custom

House vide Notice issued by John Gordon, PMG Mumbai, on 28th February 1844. The

Mumbai Gazeetted of 27th October 1862 intimated that the GPO was shifted to the

premises of Mumbai Fort near Appollo Street in 1860. The Director General recorded in

his Report of 1868 69 that the GPO Building was burnt down by a fire on 1st March

1869 and the records were completely destroyed. In 1869 the GPO was shifted to CTO

premises near Flora Fountain.


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The present GPO building just outside the CST Railway station earlier known as

VT Railway station was designed in 1902 by John Begg, consulting architect to the

Government. The stone fronted edifice was taken up for construction on 1st September

1904 and completed in April 1913. It is first building in India in Indo-Saracenic style of

architecture. Total cost of construction was 1809000. Total area covered is 120000

sq.ft. with end to end length of 523 ft. The Office of the PMG was also located in this

building. The chief feature of the building is the central hall that rises throughout the

height (120 ft.) of the building to the great dome surrounding the structure. Its dome has

a distinctive resemblance to the Gol Gumbaz of Bijapu. While the new dome of the

building has a diameter of 65 feet, it is the largest dome of the City. Turrets and

minarets resemble Moghul architecture. The style is in Indo-Saracenic style drawing

inspiration from the Indian Monuments of Moghul period. Materials used are local basalt

with dressing of yellow stones from Kurla and white stones from Drangdra. This

building with the imposing dome and architectural design is one of the landmarks of the

Fort area of Mumbai. In terms of utility, the building stands as a tribute to its planners

and architects that the building is serving the staff and the public, without causing any

cramp in the space available for use even today. The Department is earnest in

conserving the building in its original form, in keeping with the heritage status. INTACH

(Indian National Trust for Art, Culture & History) was engaged as consultant to advise

the department on restoration and maintenance of this monument building.

Mumbai GPO is now the biggest Post Office in the country and one of the biggest

in the world. It caters to over 50,000 address sites, most of which are recipients of

voluminous mail.

The Business Hall of the GPO is unique with 101 counter positions, following the

addition of the 1200 square meter large Bi-Centenary Hall, and working from 08.00 hrs.

to 23.00 hrs where all businesses of a post Office are transacted for about more than


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25,000 people every day. Mumbai GPO is now totally computerized which facilitates its

valued customer reliable and prompt service.

Mumbai GPO combines the glory of a historical tradition and the virtue of modern

technology and is part of the life-line of the city. It is serving the vast majority of

customer.


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HISTORY

The Indian postal system in the 14th century: In India the postal system was of twokinds. The horse post, called uluq, was run by royal horses stationed at a distance of

every four miles. The foot-post has three stations per mile; it was called dawa, that is

one-third of a mile ... was, at every third of a mile there is a well populated village,

outside which are three pavilions in which sit men with girded loins ready to start. Each

of them carries a rod, two cubits in length, with copper bells at the top. When the courier

starts from the city he holds the letter in one hand and the rod with its bells on the other;

and he runs as fast as he can. When the men in the pavilion hear the ringing of the bell

they get ready. As soon as the courier reaches them, one of them takes the letter from

his hand and runs at top speed shaking the rod all the while until he reaches the next

dawa. And the same process continues till the letter reaches its destination. This foot-

post was quicker than the horse-post; and often it is used to transport the

The British East India Company established post offices in Mumbai, Chennai and

Kolkata from 1764-1766, each serving the Bombay, Madras and Calcutta presidencies.

During Warren Hastings' governorship, postal service was made available to the

general public. A letter would cost 2 annas (one-eighth of aRupee)for distances up to

100 miles (160 km). Payments would be done throughcopper tokens; a letter was hand

stamped "post paid" if paid for, otherwise it was stamped "post unpaid" or "bearing".

In 1839, North West Province Circle was formed and since then, new Postal Circles

were formed as needed. In December 1860 Punjab Circle, in 1861 Burma Circle, in

1866 Central Province Circle and in 1869 Sind Circle was formed. By 1880 circles had

been formed in Oudh (1870), Rajputana (1871), Assam (1873),Bihar (1877), Eastern

Bengal (1878) and Central India (1879).
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Afterwards, the creation of new circles was accompanied by the merging of some

circles. By 1914, there were only 7 Postal Circles Bengal & Assam, Bihar & Orissa,

Bombay (including Sind), Burma, Central, Madras, Punjab & NWF and U.P.

The first stamp of independent India shows the new Indian Flag. It was meant for

foreign correspondence. August 15, 1947

The usage of the stamps began on 1 July 1852 in Scinde/Sindh district, with the use of

an embossed pattern on paper or wax. The shape was circular, with "SCINDE

DISTRICT DAWK" around the rim, leading to the common name "Scinde Dawk". 1854

was the year of the first issue for all of India. The stamps were issued by the British East

India Company, which first printed a 1/2a vermilion in April but never sold it to the

public, then put four values (1/2a, 1a, 2a, 4a) on sale in October. All were designed and

printed inCalcutta, featuring the usual profile of Queen Victoria.A new set of stamps,

with the queen in an oval vignette inside a rectangular frame, and inscribed "EAST

INDIA POSTAGE", was printed by De La Rue in England (who produced all the

subsequent issues of British India) and made available in 1855. These continued in use

until after the British government took over administration of India in 1858, and from

1865 were printed on paperwatermarked with anelephant head.
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MISSION

To provide high quality mail, parcel and related services in India and throughout

the world ; to be recognized as an efficient and excellent organization exceeding the

expectations of the customers, employees and the society; to perform the task by:

Total dedication to understanding and fulfilling customer's needs.

Total devotion to providing efficient and reliable services, which customers

consider to be value for money.

Total commitment to providing challenging and rewarding career for every

employee.

Total recognition of the responsibilities as a part of the social, industrial and

commercial life of the country.Total enthusiasm to be forward looking and

innovative in all areas.


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This retail like Nature of a payments system means that high volumes and ubiquity are

Necessary for success. All possible markets must thus be tapped to build volumes. The

Possibilities include but are not restricted to the following channels:

1. Person-to-person Payments

2. Government benefits payments

3. Microfinance, microinsurance, Micropensions

4. Mobile prepaid to pups

5. Recurring bill payments

6. Railway tickets

7. Other merchant transactions

Of the channels above, India Post should play an active role in the creation of the

Electronic MO linked to lightweight POSB accounts. This will enable persontoperson

Payments, and G2P payments. For all other channels, India Post should nurture the

Creation of an ecosystem, where other public and private enterprises integrate the India

Post Payments Network (IPPN) into their own businesses, along with creating

innovative

Payments products.

The Expert Committee recommends that India Post establish a mechanism through

which

The post offices can be harnessed into delivering short duration,


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Fixed size,

Noncollateralised

Micro loans (of Rs.500 for one month) while adhering to the following

Principles:

1) India Post must not undertake credit risk using public funds,

2) India Post should serve as a facilitator for a mass-market

For micro loans Without Running the market.

3) India Post must not displace private investment,

4) Vendor neutrality and transparency must be maintained in selecting eligible credit

Providers and India Post should not perform any activities that may damage its

reputation.

Connectivity

While expanding the Postal network, the policy of India Post is not only to provide

physical access to the people, but also to bridge the digital divide. As a step in this

direction, India Post has a Technology Induction Plan, which would connect the entire

population to the electronic network. India Post will induct technology aimed at providing

new and better services, and more efficient management by computerizing and

networking all post offices using Central Server based system. Induction of other state

of the art processing systems including mail-processing systems - so as to provide

service on par with global industry standards - will facilitate financial transactions such

as inward domestic and foreign remittances to and from India Posts customers.


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2.GOVERNANCE AND ORGANISTAION

The postal service comes under the Department of Posts which is a part of the Ministry

of Communications and Information Technology under theGovernment of India.The

apex body of the department is the Postal Service Board. The board consists of a

chairman and three members. The three members hold the portfolios of Operations &

Marketing, Infrastructure & Financial Services, and Personnel. The Joint Secretary and

Financial Advisor to the Board is also a permanent invitee to the Board.

India has been divided into 22 postal circles. Each circle is headed by a Chief

Postmaster General. Each Circle is further divided into Regions comprising field units,

called Divisions, headed by a Postmaster General. Other functional units like Circle

Stamp Depots, Postal Stores Depots and Mail Motor Service may exist in the Circles

and Regions.

Besides the 22 circles, there is a special Circle called the Base Circle to cater to the

postal services of the Armed Forces of India. The Base Circle is headed by an

Additional Director General, Army Postal Service holding the rank of aMajor General.

Governance Structure

The Department of Posts is part of the Ministry of Communications and Information

Technology, Government of India. The Secretary, Department of Posts, as the Chief

Executive of the Department, is also the Chairperson of the Postal Services Board and

Director General, India Post. There is a need to revisit India Posts governance structure

to provide an effective line of command so that India Post is able to meet the challenges

of current market conditions vis--vis other players in the postal sector. India Post

recognizes the presence of private competitors in the market, but there is also a need
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for regulating the sector to ensure disciplined functioning and growth. India Post

expects in the near term to achieve self-sufficiency given realistic prices for its core

functions and other services. However, for the purpose of operational efficiency and

expansion of its activities, funding of its capital requirement may require external

resources. It also expects to receive revenues from its financial services and other fee

based services. It will examine closely and rationalize its product mix with emphasis on

e-commerce, logistics and parcel services, etc., bearing in mind the need to maintain

highest level of performance in letter mail services, financial services and governance

functions.

India Post is an essential part of the governance of the country. It has performed

sovereign functions since its inception and is instrumental in unifying the country and

ensuring connectivity between far-flung regions and between dispersed citizens, both

within and outside the country.

Its presence and operations have ensured that as a Government organization it enjoys

high credibility and trust, and citizens have no hesitation in approaching its personnel or

visiting its offices. This degree of confidence is precious and it can be leveraged to bring

more accuracy, efficiency and credibility to other governance functions that depend

crucially on identification of individual citizens.

It is therefore, possible, given government approval and legislative support, for India

Post to carry out maintenance of electoral rolls, census operations and ensure passportverification etc. This will be based on a National Address Database Management

System (with street and GPS addresses), which will be established. It will also solve the

identification problem that besets most Governmental programs and policies.

Investment in this facility will enable the Union and state governments to allow citizens


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to avail of their rights as well as enable the Government to identify and locate citizens

more accurately.

Private Sector Participation

India Post welcomes the opportunity to work with the private sector in providing value

added services and extending its product range beyond the current core functions.

Private sectors participation in providing support services is expected to enable India

Post to serve its customers better.


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Physical Infrastructure

It will be the policy of India Post to bring its facilities within reach of every citizen in the

country. Since Independence, India Post increased the number of post offices from

23,344 to 1,55,204. It is the largest postal network in the world, with one post office

serving 7160 people and covering an area of approximately 21.2 sq. kms. Despite this

only 1,37,508 out of 5,95,113 inhabited villages have post offices. Even if only Gram

Panchayat villages are considered, only 1,15,881 of them out of a total of 2,34,755 have

post offices.

With the 73rd Constitutional Amendment transferring funds, function and functionaries

in many development sectors to Panchayati Raj Institutions (PRIs), there is a real need

to increase connectivity and provide communication and financial services to these

bodies to enable them to discharge their Constitutional roles. There is a need therefore,

to expand, strengthen and rationalize the rural branch network to ensure full coverage.

This can be done with funding assistance from the Government for infrastructure

support.

India Post not only needs to invest in physical structures and remedial maintenance, but

also in good housekeeping, computerization, transport facilities etc. This will result in

increased efficiency, lower costs, customer satisfaction and enhanced service delivery.


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3. NATIONAL POSTAL POLICY

Introduction

An efficient and reliable communication network is the lifeline of the nation and plays a

crucial role in socio-economic development and the integration of the country. For

nearly a century and half the Postal System has been the main component of the

communication infrastructure for the country.

The Indian economy has moved on to a high economic growth trajectory involving an

average annual growth rate of about 6% over the last 16 years with further acceleration

in recent years. India Post requires a new policy framework because of the emergence

of several significant trends such as: liberalization and globalization; demographic shift

towards urbanization leading to increasing internal and external migration requiring to

be serviced; monetization of the economy especially the agricultural sector giving rise to

a corresponding demand for financial services by all sections of the population; and

government policy to increase funding for weaker section programs. Given the need for

a strong communication and financial infrastructure, India Post will meet both

challenges and avail of the opportunities presented by current market conditions.

A Policy for India Post

This policy has a two-pronged approach.

Develop services that assist, facilitate, enhance and quicken the process of

development aimed at inclusive growth.


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Reposition India Post to become a self-sufficient, credible, efficient, quick and

costeffective provider of these services.

Function:-

India Posts mandate, traditionally, has covered the following services:

Delivery of letter and other mail

Savings Bank operations

Money transfer

Provision of Life Insurance

1) Transmission and delivery of mail can be defined as India Posts core business

so far. Post Office Savings Bank is the oldest and largest banking institution in

the country. Transmission of funds by postal order/money order has been the

traditional way of money transfer. Since 1884 onwards Postal Life Insurance

(PLI) has been providing life insurance coverage, initially to employees of P&T

Department and subsequently to all Government employees. Since 1995 PLI has

been extended to the rural population of the country under a new scheme Rural

Postal Life Insurance.

2) India Post is expected to ensure provision of quality and basic postal services on

regular basis to all the users at all points in the country at affordable prices as

part of its Universal Service Obligation. The cost of providing these services has


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to be assessed systematically and fully funded. The source of funding needs to

be determined and set in ways that ensure the financial self-sufficiency of India

Post and allow it to make decisions relating to growth and development. A

sustainable tariff policy for providing the basic postal services also has to be

determined. In view of the increasing participation in mail services by private

players there is a need to address the issue in a holistic manner.

3) To effectively face the challenges of competition India Post also needs to be able

to respond to market forces quickly and efficiently both in pricing and product

decisions. In order to do so, India Post will require a certain degree of financialautonomy and commercial flexibility while remaining accountable to its customers

and to Parliament.


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4. Human Resource Development

The basis of any policy of sustainability and growth, especially of labor intensive

activities, is the productivity, capacity and morale of its personnel. A greater focus on

human resource development will be given with the objective of enhancing and

transforming the human resource of India Post into a customer-friendly, techno-savvy

and efficient workforce led by managers attuned to their tasks and aware of the

competitive and accountable environment. Efforts will also be made to increase

productivity of human resources through direct recruitment of technically qualified

persons, training of incumbents and various incentive schemes.

Increased productivity and higher performance will receive appropriate incentives and

the interests of the workforce will be safeguarded. India Post will equip its workforce to

achieve the standards of excellence expected by its customers.

Ms. Radhika Doraiswamy

Secretary (Posts) Chairman, Postal Board

Director General

K Gopinath

Member (Personnel)

Postal Services Board

Ms. Manjula Prasher

Member (Operations)


S. Samant

Member (Technology)

Dr. Uday Balakrishna


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Postal Services Board Member

(PLI) & Chairman Investment Board


Maj. Gen. V Sadasivam

Member (HRD)


Ms. Indira Krishna Kumar

Member (Planning)


The Department of Posts comes under the Ministry of Communications and

Information Technology , Government of India, functions under the Minister for

Communications and Information Technology , and has a Minister of State

for Communications to assist the Minister of Communications andInformation Technology in the discharge of various functions. The Secretary,

Department of Posts, as the Chief Executive of the Department, is also the

Director General, India Post , and the Chairman of the Postal Services Board.

The Postal Services Board, the apex management body of the Department,

comprises the Chairman and six Members. The Members of the Board hold portfolios

of Personnel, Operations, Technology, Postal Life Insurance, Human Resources

Development, and Planning. The Joint Secretary and Financial Advisor to the

Department is a permanent invitee to the Board. The Board is assisted by a

senior staff officer of the Directorate as Secretary to the Board. Presently, Senior

Deputy Director General (CP) is assisting the Board in this capacity. Deputy


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Directors General, Directors and Assistant Directors General provide necessary

support for the Board at Headquarters. The Postal Services Directorate is

the Headquarters organisation located at Dak Bhawan , New Delhi , to oversee the

operations in the provision of postal services throughout the country.

For providing postal services, the whole country has been divided into 22 Postal

Circles. These Circles manage the day-to-day functioning of the various Head

Post offices.
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5. POSTAL SERVICE


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1 International Registered Post

To provide secure transmission of customers articles. A record is kept at all stages the

article passes through. Also the registered articles are transmitted , under special

precautions.

2Speed Post

The very high speed expresses service for letters and documents. Speed Post links

more than 1200 towns in India, with 290 Speed Post Centers in the national network

and around 1000 Speed Post Centers in the state network. For regular users, Speed

Post provides delivery anywhere in India under contractual service. Speed Post offers
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a money-back guarantee, under which the Speed Post fee will be refunded if the

consignment is not delivered within the published delivery norms.

3 E Payment

The most convenient way to pay your bills under one roof. With its tremendous reach

and expertise India Post specializes in acceptance of payments across the counter and

their consolidation. E-Payment is a Many to One service through which bills

(telephone, electricity, etc.) paid by customers in post offices is electronically

consolidated.

4 Logistics Post

A brand new service from India Post great for sending parcels and large consignments

across the nation and around the world. Logistics Post manages the entire distribution

side of the logistics infrastructure from collection to distribution, from storage to carriage,

from order preparation to order fulfillment. Logistics Post is an ideal service for sending

large consignments including multi-parcels, just-in-time parcels, bulk-break

consignments and goods of any weight. While Parcel Post offers weight up to 35 kg,

Logistics Post has no weight limit. Logistics Post offers not only physical logistics

services but also provides comprehensive supply chain management services, leading

to improvement in the service level efficiency. Where is the details rate?

5 Business Post

Total pre-mailing solutions including collection/printing, inserting, and addressing.


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6 Media Post

Advertisements sent by media companies on Post cards, letters, walls of post offices,

letter boxes, stationary etc and received by millions of peoples.

7 Direct Post

Distribution of advertising materials directly to prospective customer


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6. FINANCIAL SERVICES

The Post Office Savings Bank Scheme is an agency function performed by India Post

on behalf of the Ministry of Finance, Government of India. The Ministry of Finance

remunerates India Post for this agency work at a rate fixed from time-to-time.Nearly 16

core* people use India Post to save Rs. 3,23,781 crore as on March 31, 2007. Out of

this, deposits in savings bank account alone is Rs.16,789 crore. There is, therefore, a

need for India Post to computerize and connect all its savings bank accounts so as to

widen and deepen the level of financial transactions and offer banking services to the

rural population. India Post sees a great opportunity for increasing the number of

accounts and volume of savings.

India Post will provide banking and financial transaction services to cater to the needs

of the rural population and help realize the policy of financial inclusion for the un-

banked rural masses. For deepening and broadening its financial services, suitable

agreements with public/private sector banks will be forged, so that India Post can offer

its unique last mile connectivity to the customers. This will permit it to receive fees for

the service rendered to the banks and other financial entities. Before this, however,

adequate infrastructure and connectivity coupled with application of appropriate

software needs to be in place.

India Post will also be the predominant agency for payments under all social security

schemes of Government such as Old Age Pension scheme, Rural Health Insurance,

National Rural Employment Guarantee Scheme etc. Such a service will reduce delay

and inefficiencies in making payments of legitimate entitlements to the poor, illiterate

and uneducated masses that are more likely to have confidence in the Post Office, than

any other agency.


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The urbanization of the country to levels of over 50% of population in older urban

agglomerations, new growth sectors and new agglomerations, creation of special

economic zones etc., has created additional demand for postal and financial facilities.

These urban postal and financial services are essential in order to maintain the flow of

funds between urban and rural residents and it is necessary to ensure safe and quick

transmission of monies. Since the competitors for such urban services are aggressive

and efficient private players, India Post will enhance and improve its delivery of urban

services in order to offer comparative standards of performance. India Post will increase

its market share in rural insurance. Postal Life Insurance and Rural Postal Life

Insurance are the instruments, which will allow India Post to increase its market and

business potential, as also fulfilling the social obligation of insuring people. It will

transform the century old Postal Life Insurance into a commercial business entity

making its own investment decisions and (1 crore = 10 million) Competing on level

playing field with other insurance entities, while conforming to requirements of IRDA

norms.

Non-postal services

The post office has also traditionally served as a financial institution for millions of

people in rural India. Currently these are some of the activities being supported:

Public Provident Fund

National Savings Certificate

Kisan Vikas Patra

Savings Bank Account
http://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/15yearsPPF.html


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Monthly Income Scheme

Recurring Deposit Account

National Savings Scheme 1992 - discontinued from 01.11.2002

Post Office Time Deposit

Post boxes for mail receipt
http://www.indiapost.gov.in/6yearsMIS.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/Netscape/NSS92.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/Netscape/NSS92.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/6yearsMIS.html


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FINANCIAL SERVICES

Financial

service

Core banking

services

Postal life

insurance

Money order

International

money transfer

Electronic

clearance service

e-imo

Banking


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1 CBS -Core banking services

India Post provides accessible and affordable service to the people of India

through its unparalleled network of post offices. Mails, Savings, Insurance and Parcel

are the mainstay of post offices with several new services like Western Union money

transfer, Electronic Money Order and distribution of mutual funds added successfully in

the last decade. Due to its competitive advantage of geographical accessibility and its

time tested accounting procedures, India post has also positioned itself as a reliable

agency for the Government of India (GOI) in implementing its inclusive growth policies.

Not only does the post office disburse MGNREGS wage and old age pension payments

but also in the process has opened savings accounts to a large number of financially

excluded people, thereby enabling GOI to achieve its twin objectives.

To improve its service quality and operational efficiency, India post has

embarked on an IT modernization programmed. One of the key components of this IT

modernization programmed is to introduce a centralized core banking solution with

alternate delivery channels facilitating any time any where banking environment. This

core banking environment will enable faster transfer of funds and easier withdrawals

eventually being inclusive by bridging the digital divide. The alternate delivery channels

proposed for service delivery are ATMs, Internet, Phone and Mobile Banking.

This is an Eleventh Five Year Plan Project and envisages implementation of CBS in

4000 post offices during the plan period.

2 Postal Life Insurance

Postal Life Insurance was started in 1884 as a welfare measure for the employees of

Posts & Telegraphs Department under Government of India dispatch No. 299 dated 18-

10-1882 to the Secretary of State. Due to popularity of its schemes, various


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departments of Central and State Governments were extended its benefits. Now Postal

Life Insurance is open for employees of all Central and State Government Departments,

Nationalized Banks, Public Sector Undertakings, Financial Institutions, Local Bodies like

Municipalities and Zila Parisads, Educational Institutions aided by the Government etc.

A Rural Postal Life Insurance On 24th March, 1995, the benefits of Postal Life

Insurance were extended to rural pop2ne scan karvaya kya????ulace of the country

under the banner of Rural Postal Life Insurance.

B Postal Life Insurance Schemes

SANTHOSH (ENDOWMENT ASSURANCE)

SURAKSHA (WHOLE LIFE ASSURANCE)

SUVIDHA (CONVERTIBLE WHOLE LIFE ASSURANCE )

SUMANGAL (ANTICIPATED ENDOWMENT ASSURANCE)

YUGAL SURAKSHA ( JOINT LIFE ENDOWMENT ASSURANCE )

CHILDREN POLICY

C Rural Postal Life Insurance Schemes

GRAM SANTOSH (ENDOWMENT ASSURANCE)

GRAM SURAKSHA (WHOLE LIFE ASSURANCE)

GRAM SUVIDHA (CONVERTIBLE WHOLE LIFE ASSURANCE)

GRAM SUMANGAL (ANTICIPATED ENDOWMENT ASSURANCE)

GRAM PRIYA (10 YEARS RPLI)

CHILDREN POLICY
http://www.indiapost.gov.in/Santhosh.htmlhttp://www.indiapost.gov.in/Santhosh.htmlhttp://www.indiapost.gov.in/Suraksha.htmlhttp://www.indiapost.gov.in/Suraksha.htmlhttp://www.indiapost.gov.in/Suvidha.htmlhttp://www.indiapost.gov.in/Suvidha.htmlhttp://www.indiapost.gov.in/Sumangal.htmlhttp://www.indiapost.gov.in/Sumangal.htmlhttp://www.indiapost.gov.in/YugalSuraksha.htmlhttp://www.indiapost.gov.in/YugalSuraksha.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/GramSanthosh.htmlhttp://www.indiapost.gov.in/GramSanthosh.htmlhttp://www.indiapost.gov.in/GramSuraksha.htmlhttp://www.indiapost.gov.in/GramSuraksha.htmlhttp://www.indiapost.gov.in/GramSuvidha.htmlhttp://www.indiapost.gov.in/GramSuvidha.htmlhttp://www.indiapost.gov.in/GramSumangal.htmlhttp://www.indiapost.gov.in/GramSumangal.htmlhttp://www.indiapost.gov.in/GramPriya.htmlhttp://www.indiapost.gov.in/GramPriya.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/GramPriya.htmlhttp://www.indiapost.gov.in/GramSumangal.htmlhttp://www.indiapost.gov.in/GramSuvidha.htmlhttp://www.indiapost.gov.in/GramSuraksha.htmlhttp://www.indiapost.gov.in/GramSanthosh.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/YugalSuraksha.htmlhttp://www.indiapost.gov.in/Sumangal.htmlhttp://www.indiapost.gov.in/Suvidha.htmlhttp://www.indiapost.gov.in/Suraksha.htmlhttp://www.indiapost.gov.in/Santhosh.html


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After the money is paid to the payee the remitter of money order receives an

Acknowledgement of payment of the amount of the money order signed by thepayee or his authorized agent. If the acknowledgment is not received in a

reasonable time, a certificate of payment signed by the Postmaster of the office will

be given on application. However, in the case of money orders issued in favor of

Government or District, Local or Municipal Boards, the acknowledgment in some

cases is retained by the payee who issued a departmental receipt to the remitter

direct.

Alteration in address or place of payment:-

The remitter of a money order which has not been paid may require that the address of

the payee shall be altered or that the name of post office at which the order was

originally made payable, shall be changed. The required change will be made without

additional charge on the remitter applying in writing to the Post Office at which the order

was issued and producing the receipt and giving full particulars of the payees address

as entered in the money order.

Alteration of payees name:-

The remitter of a money order which has not been paid may require that the amount

be paid to some person other than the payee named in the order. The required changewill be made, on payment of a second commission equal to the first, on the remitter

applying in writing to the post office at which the order was issued and producing the

receipt and giving full particulars of the payees address as entered in the money order.


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Stoppage of payment: -

The remitter of a money order which has not been paid may stop payment and requires

that the money be repaid to him. This will be done without additional charge on the

remitter applying in writing to the post office at which the money order was issued and

producing the receipt and giving full particulars of the payees address as entered in the

money order. Payment can be stopped by telegram if the remitter pays the telegram

charges. In no case however will the Post Office be responsible for inability or failure to

stop payment of a money order in compliance with the remitters request. A money

order is an order issued by the Post Office for the payment of a sum of money to theperson whose name the money order is sent through the agency of the Post Office. A

Payee is the personnamed in money order as the person to whom the money is to be

paid. The advantage of sending money to someone through money order is that

the money is delivered at the house or his place of stay.

4) International Money Transfer:-As a result of the collaboration of the Department of

Posts with the Western Union Financial Services, state of the art international money

transfer service is now available through post offices in India. This enables

instantaneous remittance of money from 185 countries to India. The recipients can in

fact collect the money in minutes after the sender has made the remittance. The service

is targeted to particularly fulfils the needs of NRI dependent families in India, visiting

Internationaltourists and foreign students studying in India.

The International Money Transfer process is as follows: -

1. To avail of this Service, a remitter goes to any one of the more than 100,000

Western Union Locations in the 185 countries in which the Service operates , fills up

a "To send money" form and pays principal amount and charges. The sender

gets a Money Transfer Control Number on a receipt after the transaction is

sent through the system. Thereafter, the sender calls up his/her payee and gives


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10. On the request of the NRI community , the department is open to extending

the services to any other location (village/town/city) as well, which has the potential

clientele.

11. For further information on the service, the International representatives of the

Western Union Financial Services International can be contacted in any of the 185

countries from which the service is available.

12. Requests for extension of the service to any part ; town / village / city in

India along with any other feedback by Indian missions as well as NRI bodies

can be provided directly to Project Manager, International Money Transfer

Services

5 Electronic Clearance Service (ECS)

The ECS scheme provides an alternative method of effecting bulk payment transactions

like periodic (monthly/ quarterly/ half-yearly/ yearly) payments of interest/ salary/

pension/ commission/ dividend/ refund by Banks/Companies /Corporations

/Government Departments. The transactions under this scheme move from a single

User source (i.e. Banks/Companies /Corporations /Government Departments) to a large

number of Destination Account Holders (Customers/Investors). This scheme obviates

the need for issuing and handling paper instruments and thereby facilitates improved

customer service by the Banks and Companies/Corporations/Government Departments

effecting bulk payments.


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The Scheme is in operation at 15 centers where Reserve Bank of India manages

Clearing Houses, 21 centers where SBI is managing ECS on behalf of RBI and 29 other

centers where PNB and other banks are managing ECS on behalf of RBI.

The ECS is being offered in the Department of Posts in connection with payment of

monthly interest under Monthly Income Scheme (MIS). The Department of Posts

introduced ECS scheme on a pilot basis in Mumbai City on 9th August 2003. Under

ECS, the depositors have the facility of getting MIS interest automatically transferred

and credited into their SB account on the due dates at the designated Bank of their

choice. Currently, the service is available in the Department of Posts at 15 RBI locationsand 19 SBI locations as given below. In remaining 2 SBI locations viz. Raipur

(Chhattisgarh) and Ranchi (Jharkhand) the ECS will be introduced shortly.

6 Instant Money Order Service (imo)

The instant domestic money is available in 717 postoffices. However no InternationalMoney Order facility is available.

INSTANT SAFE RELIABLE CONVENIENT Up to INR 50,000/-

India Post presents Instant Money Order (iMO), the instant on-line money

transfer service that is instant, convenient, reliable and affordable.

IMO is an instant web based money transfer service through Post Offices (iMOCentre) in India between two resident individuals in Indian territory.

You can transfer money from INR 1,000/- to INR 50,000/- from designated iMO

Post Offices.

It is simple to send and receive money.


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IMO Booking Procedure

Fill up the To Remit Payment (TRP-1) form and submit it with money at iMO

Post Office Counter.

iMO Counter clerk after booking the iMO immediately will give a printed receipt

with computer generated confidential 16 digit iMO number in a sealed condition.

Even the 16 digit iMO number will not be known to booking clerk.

Customer is required to tear off the seal and convey the confidential 16 digit iMO

number to the receiver over phone, SMS, e-mail, etc. at his means and risk.

iMO delivery Procedure

Receiver to present the 16 digit iMO number at any designated iMO post office

counter and will fill up and submit a To Make Payment (TMP-1) form along with

a copy of his personal identity proof

Receiver can receive the payment in cash up to INR 50,000. He can also receive the

payment through his post office savings bank account in the same iMO office.


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Tariff

Remittance

Commission

INR

1000-5000 150

5001-10000 170

10001-15000 190

15001-20000 210

20001-25000 23025001-30000 250

30001-35000 270

35001-40000 290

40001-45000 310

45001-50000 330


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Photo Identity

1. Voters I-Card

2. PAN Card

3. Ration Card with photo of the receiver

4. Post Office Identity Card

5. Driving License

6. Passport.

7. School/college Id

8. Official Id

Non-postal services

The post office has also traditionally served as a financial institution for millions of

people in rural India. Currently these are some of the activities being supported:


National Savings Certificate

Kisan Vikas Patra

Savings Bank Account
http://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/15yearsPPF.html


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Monthly Income Scheme

Recurring Deposit Account

National Savings Scheme 1992 - discontinued from 01.11.2002

Post Office Time Deposit

Post boxes for mail receipt
http://www.indiapost.gov.in/6yearsMIS.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/Netscape/NSS92.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/Netscape/NSS92.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/6yearsMIS.html


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7.SAVINGSBANK

Post Office Savings Bank - The safest investment Save today-Smile

tomorrow

1) Monthly Income Scheme (MIS)

2) Recurring Deposit

3) Time Deposits

4) Senior Citizen Savings Scheme (SCSS)

5) Public Provident Fund

6) Kisan Vikas Patras

7) National Savings Certificates (NSC)

8) Savings Schemes Chart

9) FAQ on Banking
http://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/6yearsMIS.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/seniorcitizen.htmlhttp://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/Banking.htmlhttp://www.indiapost.gov.in/FAQonBanking.htmlhttp://www.indiapost.gov.in/FAQonBanking.htmlhttp://www.indiapost.gov.in/Banking.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/seniorcitizen.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/6yearsMIS.htmlhttp://www.indiapost.gov.in/SavingsAccount.html


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Savings Account

1. Any individual can open an account

2. Cheque facility available.

3. Group Account, Institutional Account, other Accounts like Security Deposit account &

Official Capacity account are not permissible

4.Rate of interest 3.5% per annum

Type of

Account

Maximum Limit

Single Account INR. 1 lakh

Joint Account INR. 2 lakh


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1 Monthly Income Scheme (MIS)

a) Safe & sure way to get a regular monthly income.

b) Specially suited for retired employees/ Senior Citizens or any one with high sum

for investment .

c) Rate of interest 8%.

d) Maturity Period - Six Years.

5% Bonus on Maturity.

e) Post maturity Interest at the rate applicable from time to time (at present 3.5%)

f) Auto credit facility to SB Account

Type of Account Minimum limit Maximum limit

Single INR 1500/- INR 4.5 lakhs

Joint INR 1500/- INR 9 lakhs

Deposit in Monthly Income Scheme and invest interest in Recurring Deposit to get

10.5% (approx) interest. Above scheme operates automatically, if you open a saving


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bank account and give a request for automatic transfer of Monthly Income Scheme

interest to Recurring Deposit through Saving Bank account

2 Recurring Deposit:-

a) Any individual (a single adult or two adults jointly) can open an account

b) Four defaults are allowed.

c) Defaults can be paid within two months.

d) Part withdrawal facility available.

e) Premature closure allowed after three years

Type of Account Minimum Deposit Maximum Deposit

Individual Account INR. 10/- and in multiples

of INR. 5/- thereafter

No limit.

3 Time Deposit:-

Type of Account Minimum Deposit Maximum Deposit

1,2,3 & 5 Year TD INR.200/- and in

multiples of INR. 200/-

thereafter

No limit.


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4 Senior Citizens Savings Scheme (SCSS) :-

a) A new avenue of investment and return for Senior Citizen.

b) The account may be opened by an individual,

c) Who has attained age of 60 years or above on the date of opening of the account?

d) Who has attained the age 55 years or more but less than 60 years and has retired

under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme

on the date of opening of the account within three months from the date of

retirement.

e) No age limit for the retired personnel of Defense services provided they fulfill other

specified conditions.

f) Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to

open an account

g) No withdrawal shall be permitted before the expiry of a period of five years from the

date of opening of the account. The depositor may extend the account for a further

period of 3 years

h) After one year but before 2 years on deduction of 1 % of the deposit

i) After 2 years but before date of maturity on deduction of 1% of the deposit.


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j) In case of death of the depositor before maturity, the account shall be closed and

deposit refunded without any deduction along with interest. Interest @ 9% perannum from the date of deposit on quarterly basis.

5 15 Years Public Provident Fund:-

a. Ideal investment option for both salaried as well as self employed

classes.

b. Non-Resident Indians (NRIs) not eligible.

c. Investment up to INR. 70,000 per annum qualified for IT Rebate under

section 80 C of IT Act

d. Loan facility available from 3rdfinancial year upto 5thfinancial year.

e. Withdrawal permitted from 6thfinancial year.

f. Free from court attachment.

g. An individual cannot invest on behalf of HUF (Hindu Undivided Family)

or Association of peINRons.

Type of

AccountMinimum

limitMaximum limit


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(Individual

account on

his behalf or

on behalf of

minor of

whom he is

the guardian

INR. 500/- in

a financial

year

INR. 70,000/- in a

financial year

6 Kissan Vikas Patra

1) Investment doubles in 8 years 7 months.

2) Encashment at any time after expiry of 2 Years from the date of issue of certificate

any Post Office.

3) NRIs & HUF not eligible.

4) Nomination facility is available.

5) Post maturity interest is also admissible at the rate applicable from time to time at

present 3.5%


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7 National Savings Certificates (NSC)

Scheme specially designed for Government employees, Businessmen and

other salaried classes who are IT assesses

No maximum limit for investment.

No tax deduction at source

Certificates can be kept as collateral security to get loan from banks.

Investment up to INR 1,00,000/- per annum qualifies for IT Rebate under

section 80C of IT Act.

Trust and HUF cannot invest.


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8.POST OFFICE SAVINGS SCHEMES

Sec 80C benefit: Investments up to INR 1 lakh in specified securities (maximum of INR

70,000 in PPF) qualify for deduction

Compounded half-yearly

Compounded yearly

Compounded quarterly

Payable quarterly


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SCHEME Interest Payable,

Rates, Periodicity

etc.

Investment Limits

and

Denominations

Salient features

including Tax Rebate

Post Office

Savings Account

3.5% per annum

on individual/ joint

accounts.

Minimum INR 50/-

. Maximum INR

1,00,000/- for an

individual account.INR 2,00,000/- for

joint account.

Cheque facility

available. Interest Tax

Free

5-YearPost Office

Recurring Deposit

Account

On maturity INR

10/- account

fetches INR

728.90/-. Can be

continued for

another 5 years

on year to year

basis.

Rate of interest

7.5% (quarterly

compounded).

Minimum INR 10/-

per month or any

amount in

multiples of INR

5/-. No maximum

limit.

One withdrawal upto

50% of the balance

allowed after one year.

Full maturity value

allowed on R.D.

Accounts restricted to

that of INR. 50/-

denomination in case of

death of depositor

subject to fulfillment of

certain conditions. 6 &

12 months advance

deposits earn rebate.

PostOffice Time Interest payable

annually but

Minimum INR

200/- and in

Account may be opened

by individual. 2,3 & 5
http://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/SavingsAccount.html


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Deposit Account calculated

quarterly.

Period Rate

1 yr. A/c 8.20%

2 yr. A/c 8.20%

3 yr. A/c 8.30%

5 yr. A/c 8.40%

multiple thereof.

No maximum limit.

year account can be

closed after 1 year at

discount. Account can

also be closed after six

months but before one

year without interest.

The investment under

this scheme qualifies for

the benefit of Section

80C of the Income Tax

Act, 1961 from

1.4.2007.

15year Public

Provident Fund

Account

8% per annum

(compounded

yearly).

Minimum INR.

500/- Maximum

INR. 70,000/- in a

financial year.Deposits can be

made in lump sum

or in 12

installments.

Deposits qualify for

deduction from income

under Sec. 80C of IT

Act. Interest iscompletely tax-free.

Withdrawal is

permissible every year

from 7th financial year.

Loan facility available

from 3rd Financial year.

No attachment under

court decree order.

PostOffice

Monthly Income

8% per annum

payable i.e. INR

In multiples of INR

1500/- Maximum

Maturity period is 6

years. Can be
http://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/6yearsMIS.htmlhttp://www.indiapost.gov.in/6yearsMIS.htmlhttp://www.indiapost.gov.in/6yearsMIS.htmlhttp://www.indiapost.gov.in/6yearsMIS.htmlhttp://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/TimeDeposit.html


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Account 80/- will be paid

every month on a

deposit of INR

12000/-.

INR 4.5 lakhs in

single account

and INR 9 lakhs in

joint account.

prematurely encashed

after one year but

before 3 years at the

discount of 2% of the

deposit and after 3

years at the discount of

1% of the deposit.

(Discount means

deduction from the

deposit.) A bonus of 5%

on principal amount is

admissible on maturity

in respect of MIS

accounts opened on or

after 8.12.07.

KisanVikas Patra Money doubles in8 years & 7

months. Facility

for premature

encashment.

Rate of interest

8.4%

(compounded

yearly)

No limit oninvestment.

Available in

denominations of

INR. 100/-, INR.

500/-, INR. 1000/-,

INR. 5000/-, INR.

10,000/-, in all

Post Offices and

INR. 50,000/- in all

Head Post

A single holder typecertificate may be

issued to an adult for

himself or on behalf of a

minor or to a minor, can

also be purchased

jointly by two adults.
http://www.indiapost.gov.in/6yearsMIS.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/6yearsMIS.html


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Offices.

National Savings

Certificate (VIII

issue)

8% Interest

compounded six

monthly but

payable at

maturity. INR.

100/- grows to

INR 160.10 after 6

years

Minimum INR.

100/- No

maximum limit

available in

denominations of

INR. 100/-, 500/-,

1000/-, 5000/- &

INR. 10,000/-.

A single holder type

certificate can be

purchased by an adult

for himself or on behalf

of a minor or to a minor.

Deposits quality for tax

rebate under Sec. 80C

of IT Act.

The interest accruing

annually but deemed to

be reinvested will also

qualify for deduction

under Section 80C of IT

Act.

Senior Citizens

Savings Scheme

9% per annum,

payable from the

date of deposit of

31st March/30th

Sept/31st

December in the

first instance &

thereafter, interest

shall be payable

on 31st March,

There shall be

only one deposit

in the account in

multiple of

INR.1000/-

maximum not

exceeding rupees

fifteen lakh.

Maturity period is 5

years. A depositor may

operate more than a

account in individual

capacity or jointly with

spouse. Age should be

60 years or more, and

55 years or more but

less than 60 years who

has retired on
http://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/seniorcitizen.htmlhttp://www.indiapost.gov.in/seniorcitizen.htmlhttp://www.indiapost.gov.in/seniorcitizen.htmlhttp://www.indiapost.gov.in/seniorcitizen.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/6yearsNSC.html


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30th June, 30th

Sept and 31st

December.

superannuation or

otherwise on the date of

opening of account

subject to the condition

that the account is

opened within one

month of receipt of

retirement benefits.

Premature closure is

allowed after one year

on deduction of 1.5%

interest & after 2 years

1% interest. TDS is

deducted at source on

interest if the interest

amount is more than

INR 10,000/- p.a. The

investment under this

scheme qualifies for the

benefit of Section 80C

of the Income Tax Act,

1961 from 1.4.2007.


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9. MUTUAL FUNDS AND BUSINESS OJECTIVES

Mutual Funds

Distribution of Mutual Funds and Securities:

The Post Office has traditionally been a distributor of financial services, from money

orders to banking services. The Post Office Savings Bank is the largest retail bank in

the

country, operating from over 1,50,000 branches. With an objective to leverage the

Strength of the postal network and skills Department of Posts had started retailing

mutual Funds and bonds.

On 22nd January 2001, India Post in partnership with IDBI-Principal launched a scheme

for distribution of mutual funds through post offices. A pilot project was started from the

four cities of Delhi, Mumbai, Kolkata and Patna. Thereafter from 15th June 2001

onwards, the scheme was extended to cover post offices in all major capital and other

cities all across the country. At present select schemes of Principal, SBI, UTI, Franklin

Templeton and Reliance Mutual Fund are retailed through designated post offices in the

country.


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Easy steps for investing through the Post Office:

1. At each designated post office one counter (AMFI qualified personnel) has been

earmarked (usually on a non-exclusive basis) to receive the Mutual Fund applications;

2. An investor can approach the designated post office counters or the concerned

postmaster for application forms and literature on the types of fund schemes available

through the post office;

3. Thereafter he can hand the application forms duly filled along with requisite amount

in the form of a demand draft/cheque to the counter staff. No cash will be accepted

4. The counters accept the application forms as per the cut off time prescribed by the

AMCs for accepting the applications for their schemes in the particular post offi

Business objectives

Vision:A socially committed organization connecting individuals and businesses.

Goal:

1. Post within easy reach of all by year 2013-14.


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2. To be a focal point for delivery of all social security schemes of the State by the year

2011-12.

3. To be a self-sustaining organization by the year 2013-14.

4. To increase financial inclusion of the unbaked population by at least 10% By the year

2013-14.

Objectives:

1. To provide basic postal facilities, i.e., collection and delivery of mails, within easy

reach (1.5 kms) of all people and businesses. This is to be achieved through opening of

more post offices, relocation of existing post offices, giving out franchisees to

individuals, shops, institutions, self-help groups, etc. By March 2012, 3000 post offices

and 10,000 franchisee outlets are proposed to be opened.

2. To : (i) seek out aggressively MOU with State / Central Governments for delivery of

all social security schemes through post office by the year 2010- 11; (ii) Computerize

and network all post offices by the year 2011-12 so that information regarding delivery

of social security schemes can flow on real time basis.

3. To be a self-sustaining organization by : (a) Increasing the growth in revenue from

the existing CAGR of 6% per annum to more than 12% per annum, so as to more than

double the revenue from the existing Rs.5500 crore in the year 2007-08 to Rs.12,000

crores in the year 2013-14. The increase in total revenue in the year 2009- 10 is


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targeted to be Rs.890 crores, Rs.1350 in 2010-11, Rs.1350 crores in 2011-12, Rs.1400

in 2012-13 and Rs.1400 crores in 2013-14. The major components of the increase in

revenue are the following:

2004-05 2005-06 2006-07 2007-08 2008-09 2009-010

revenue 4010 4257 4431 5023 5322 5495

expenditure 5374 5632 5813 6233 6571 7006

Deficit -1374 -1375 -1382 -1210 -1249 -1511

i) To increase the growth in traffic of mail volumes from the existing declining and near

stagnating state by 50 crores in the year 2009-10 and thereafter increase of 100 crores

in each of the subsequent years 2010-11, 2011-12, 2012-13, 2013-14. Thus the total

mail volume in the year 2013-14 would be approximately 1100 crores. As the focus

would be mainly on increasing the mail volume through bulk mails such as financial

statements pertaining to credit cards, mobile services, insurance, etc., the average

revenue per article can be taken as at least Rs.3/-. Consequently, the incremental

revenue on account of growth in mail volume would be Rs.150 crores in the year 2009-

10, and Rs.300 crores in each of the subsequent years 2010-11, 2011-12, 2012-13,

2013-14.

ii) To increase the growth in traffic of registered articles from the existing near

stagnating state (20 crores) by 10% so as to increase the traffic by 50% in five years

time. This would mean an incremental traffic of 2 crores in each of the subsequent

years, i.e., 2009-10, 2010-11, 2011-12, 2012-13, 2013-14 so that the total traffic in the


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year 2013-14 would be 30 crores. Consequently, the increase in revenue would be

Rs.50 crores in each of these years.

iii) To maintain the growth in traffic of Speed Post articles at the existing 15% to 20%

and continue to be a market leader in express segment. The increase in revenue on

account of Speed Post is targeted to increase from the existing Rs.455 crores by

Rs.100 crores in 2009- 10, and by Rs.150 crores in each of the remaining years 2010-

11, 2011-12, 2012-13, 2013-14. Consequently, the revenue on account of Speed Post

is projected to be Rs.1155 crores in 2013-14.

iv) To have a focused approach on parcel products including ecommerce and logistics

by devising customized products including the facilities of tracking the movement of

these products. The revenue on account of parcel products including e-commerce and

logistics is targeted to increase by Rs.100 crores in 2009-10, and by Rs.200 crores in

each of the remaining years 2010-11, 2011-12, 2012-13, 2013-14. Consequently, the

revenue on account of parcel products including e-commerce is projected to be Rs.940

crores in 2013-14.

v) To have a focused approach on the global business comprising of international mails,

parcels and financial remittances so as to generate an incremental revenue of Rs.10

crores in 2009-10 and Rs.50 crores in each of the years 2010-11, 2011-12 and Rs.100

crores in each of the years 2012-13 and 2013-14. Consequently, the revenue on

account of global business is projected to be Rs.310 crores in 2013-14. vi) To increase

the growth in traffic of financial remittance from the existing near stagnating trend so as

to more than double the revenue from financial remittance in five years time. Theexisting revenue on account of financial remittances (Money Orders) is targeted to

increase from the existing amount of Rs. 375 crores by Rs.50 crores in 2009-10 and

Rs.100 crores in each of the remaining years 2010- 11, 2011-12, 2012-13, 2013-14.


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Consequently, the revenue on account of financial remittances including Money Orders

is projected to be Rs.825 crores in 2013-14

vii) To increase the number of savings accounts of all types by 1 1.5 crores additional

accounts in each year so as to increase the number of accounts from the existing 17.3

crore to 22 crore, i.e., an increase of 30% by 2011-12. Assuming a modest increase in

remuneration per savings account, the increase in revenue on account of Savings Bank

is targeted at Rs.180 crores in 2009-10 and Rs.200 crores in each of the remaining

years 2010-11, 2011-12, 2012-13, 2013-14. Consequently, the revenue on account of

savings accounts is projected to increase from the existing Rs.2170 crores to Rs.3150crores in 2013-14.

viii) To increase the revenue on account of Cash Certificates from the existing Rs.430

crores by Rs.50 crores in each of the subsequent targeted to increase by Rs.100 crores

in 2009-10, and by Rs.200 crores in each of the remaining years 2010-11, 2011-12,

2012-13, 2013-14. Consequently, the revenue on account of parcel products including

e-commerce is projected to be Rs.940 crores in 2013-14. v) To have a focused

approach on the global business comprising of international mails, parcels and financial

remittances so as to generate an incremental revenue of Rs.10 crores in 2009-10 and

Rs.50 crores in each of the years 2010-11, 2011-12 and Rs.100 crores in each of the

years 2012-13 and 2013-14. Consequently, the revenue on account of global business

is projected to be Rs.310 crores in 2013-14.

vi) To increase the growth in traffic of financial remittance from the existing near

stagnating trend so as to more than double the revenue from financial remittance in fiveyears time. The existing revenue on account of financial remittances (Money Orders) is

targeted to increase from the existing amount of Rs. 375 crores by Rs.50 crores in

2009-10 and Rs.100 crores in each of the remaining years 2010- 11, 2011-12, 2012-13,


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2013-14. Consequently, the revenue on account of financial remittances including

Money Orders is projected to be Rs.825 crores in 2013-14.

vii) To increase the number of savings accounts of all types by 1 1.5 crores additional

accounts in each year so as to increase the number of accounts from the existing 17.3

crore to 22 crore, i.e., an increase of 30% by 2011-12. Assuming a modest increase in

remuneration per savings account, the increase in revenue on account of Savings Bank

is targeted at Rs.180 crores in 2009-10 and Rs.200 crores in each of the remaining

years 2010-11, 2011-12, 2012-13, 2013-14. Consequently, the revenue on account of

savings accounts is projected to increase from the existing Rs.2170 crores to Rs.3150crores in 2013-14.


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Targeted increase in revenue year wise (in Rs corer)

Activity 2009-10 2010-11 2011-12 2012-13 2013-14

Mails 150 300 300 300 300

registered

articles

50 50 50 50 50

Speed post 100 150 150 150 150

Parcel

products

including

ecommerce

100 200 200 200 200

Global

business

10 50 50 100 100

Financial

remittances

50 100 100 100 100

Saving bank 180 200 200 200 200

Cash

certificates

50 50 50 50 50

Mutual funds 50 100 100 100 100

PLI/RPLI 50 50 50 50 50

Retail

post/business

100 100 100 100 100

total 890 1350 1350 1400 1400


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EXPLANATORY MEMORANDUM ON GOALS/OBJECTIVES

1). Post within easy reach of all: The Department has a USO for providing basic

services to the citizens who will be reflected in its ability to provide affordable and

accessible services to all the citizens. More than 70% of the population lives in rural

areas in more than 5 lakh villages. Presently, they are being provided basic postal

facilities in terms of delivery of mails through an unfixed daily delivery system. Most of

the villages are not covered through a point of presence by having a post office, even in

the case of Gram Panchayat villages. In fact, against 2.35 lakh Gram Panchayats, only

1.15 lakh Gram Panchayats are having post offices. There is, therefore, a need to

expand the postal network in the rural areas. Moreover, as the result of large-scale

urbanization and industrialization there is also a need to expand the postal facilities in

the urban areas.

2.) To be a focal point for delivery of all social security schemes : The post offices are

already delivering social security schemes such as old age pension scheme, National

Rural Employment Guarantee Scheme, etc. This would require networking all the post

offices especially in the rural areas so that information can flow on real time basis.

3.) To be a self-sustaining organization by the year 2013-14: The revenue expenditure

gap is on the increase mainly because of substantial increase in the salaries of the

employees. In order to fulfill its social obligation, there is a need for the Department to

be self-sufficient. It can be seen from the table below that on an average the net

increase in revenue is about Rs.200-Rs.250 crore except for one year 2005-06 when

the increase by 600 crore. The increase in expenditure is around Rs.300 crore.

Consequently, the deficit is in the range of Rs.1200RS.1400 crore. However, with the

increase in salary and allowances due to the 6th Central Pay Commission, the deficit

during the current year is likely to be more than 4000 crore at the existing rate of net

increase in revenue. Achieving financial self-sufficiency would, therefore, require


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focusing on those products or group of products which are likely to generate substantial

increase in revenue.

I) Mails including business mails

ii) Speed post

iii) Parcels including e-commerce and logistics

iv) Savings bank

v) Cash certificates

vi) Financial remittance

vii) Mutual funds

viii) Life Insurance


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10.COMPARISON OF INDIAN POST AND BANKS

DEPARTMENT PUNJAB NATIONAL

BANK

TYPE Agency of the govt

of India

Public (BSE,NSE-

SBI)

Public(BSE,NSE-

PNB)

FOUNDED 1764 Kolkata( as a bank

of calcuta) 1806

LAHORE,1895

HEAD QUARTERS New delhi Mumbai New delhi

KEY PEOPLE Smt. Padmini

gopinath

(director general)

Arundhati

bhattcharya

(chairperson)

KRKamath


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INDUSTRY Post card ,postal

stamp , Speed post,

e-payment , logistic

payment , Business

post, Money order ,

NSC, KVP , SBA ,

MIS , IMO.

Credit

cards, consumer

banking, corporate

banking,finance and

insurance,investme

nt

banking, mortgage

loans, private

banking, wealth

management

Credit

cards, consumer

banking, corporate

banking,finance and

insurance,investme

nt

banking, mortgage

loans, private

banking, private

equity, wealth

management

EMPLOYEES 5,30,200 2,90,287 62,127

BRANCH 157,385 16,980 -------


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11.. FINDINGS

INTERVIEW WITH POST OFFICE CENTER MASTER

1. How to open an account in post office and its requirements?

To open an account [Savings Bank (SB), Recurring Deposit (RD), Time Deposit

(TD), Monthly Income Scheme (MIS) SB3, SB103 (pay-in-slip) and specimen

signature slip for SB and TD are required.

For senior citizen accounts, separate forms are to be used. For SB account

introduction is compulsory.

2. Whether any nomination facility is available for Savings Bank

Account in Post Office ? Whether a minor can open a Savingaccount?

Yes Nomination facility is available for all individual accounts except

in Minor accounts. Yes, If he is of 10 years of age he can open account

otherwise guardian can open for him .

3. What are the norms for issuing a Cheque Books?
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Cheque books are issued in respect of cheque accounts.

In a cheque account, minimum balance should be INR. 500/-

4. How your recurring deposit is is different from the banks

A post officerecurring deposit account (RDA)is similar to a recurring deposit in a

bank, where you can invest a fixed amount on a monthly basis. The postal RDA

has a fixed tenure of five years. The advantage with post-office deposits is that it

offers a fixed rate ofreturn for the duration of the deposit, while banks constantly

review their recurring deposit rates.

5. In recurring deposit do you provide customer a facility where he can

withdraw amount before maturity ?

Yes , Premature closure is permitted on completion of three years from

the date of Opening .Premature withdrawal, however, cannot earn you desired

returns.

6. Can you tell us something about time deposits in post office?

Just like banks' fixed deposits (FDs), post office time deposits are meant for

those investors who want to deposit a lump sum for a fixed period. Time Deposits

are of 1 year, 2 year, 3 year and 5 year tenures. The minimum investment should
http://www.business-standard.com/search?type=news&q=Recurring+Deposit+Accounthttp://www.business-standard.com/search?type=news&q=Rdahttp://www.business-standard.com/search?type=news&q=Rdahttp://www.business-standard.com/search?type=news&q=Recurring+Deposit+Account


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A minimum of INR 1,000/- and a maximum of INR 50,000/- can be sent through

iMO.

10. Can you tell us the working procedure of imo

Money can be sent from any iMO center. A simple To Remit Payment form is to

be filled up and submitted along with the remittance a

main post office.docx

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