Introduction

Indian Postal Service

Department of Posts:

Type:

Agency of the Government of India

Founded:

1764

Headquarters:

New Delhi, India

Key people:

Radhika Doraiswamy, Director General

Industry:

Postal system

Employees:

520,191 (As of 2007)

Website:

http://www.indiapost.gov.in/

The Department of Posts (Hindi: ) functioning under the brand name India
Post (Hindi: ) , is a government operated postal system in India; 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 (China is next, with 57,000 [2]). The large numbers are a result of a long
tradition of many disparate postal systems which were unified in the Indian Union postIndependence. 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.

VISION STATEMENT OF INDIA POST

India Post will be a socially committed, technology driven, professionally
managed & forward looking Organization

MISSION STATEMENT OF INDIA POST

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
be value for money.

consider to

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.

Objectives
Department of Posts is committed to providing universal access to basic postal services in the country
at affordable prices. Its objectives are to:Ensure availability of basic postal services in all parts of the country, including tribal, hilly and
remote areas.
Provide efficient reliable and economic service.
Provide value added services according to market requirements.
Modernize the services to handle the growing volume of work with efficiency and thereby enhance
customer and employee satisfaction.
Be a forward looking organization, and
Generate more resources and improve financial performance.
As per Government of India (Allocation of Business) Rules, 1961, second Schedule, Rule 3,
Distribution of Subjects among the Departments the Department Of Posts is responsible for
1.Execution of works, including purchase of land debitable to the Capital Budget pertaining to
the Department of Posts.
2.Posts, including Post Office Savings Banks (Administration), Post Office Certificate
(Administration), Post Office Life Insurance Fund (Administration), printing of public postage
stamps/commemorative stamps including postal stationery, premium postal products and any
agency function.
3.International cooperation in matters connected with postal communications, including matters
relating to all international bodies dealing with postal communications such as Universal Postal
Union, Asia Pacific Postal Union (APU), Commonwealth Postal Union.
4.Matters relating to introduction, development and maintenance of all services by the Post
Office including those based on cable, radio and satellite communications channels:
Provided that these matters do not amount to broadcasting, narrow casting, cable and radio
networking services and are also not governed by the Indian Telegraph Act, 1885 and the rules
made there under, and not exclusively allotted to any other Department.
5.Promotion of feasibility survey, research and development in the field of activities allotted to
the Department.
6.Matters relating to administration of the Indian Post Office Act, 1898 and rules made there
under as well as other laws or enactments having a bearing on postal activities, not specifically
allotted to any other Department.

Old logo:

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 a Rupee) for distances up to 100 miles (160 km). Payments would be
done through copper 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).
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 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 in Calcutta, 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 paper watermarked with an
elephant head.

Governance and organization

The postal service comes under the Department of Posts which is a part of the Ministry of
Communications and Information Technology under the Government 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 a Major General.

Network
India has the largest Postal network in the world with 1,55,669 Post Offices of which 89% are in
rural areas. At the time of independence, there were 23,344 Post Offices, which were primarily
in the urban areas. Thus the network has registered a seven fold growth over the last five
decades, the focus of this expansion being in the rural areas. On an average, a post office serves
an area of 21.09 sq. km. & population of 6,585. Through these offices it ensures daily delivery of
dak at the doorstep of every customer all over the country, collection of letters through
letterboxes, and also sale of stamps and stationery through village postmen at the doorstep of
customers in rural areas. Post Offices in Urban and Rural areas provide a range of basic postal
services to the customers, including banking and insurance services. Bill collection felicities are
being extended through all post offices in urban areas, and identifying post offices in rural areas.
Certain value added services are being provided in selected offices in urban areas.
Efforts are also being made to identify means of providing postal services through more cost
effective measures. The Licensed Stamp Vendor Scheme, Licensed Postal Agents Scheme and
the Panchayat Sanchar Sewa Yojana(PSSY) were initiatives that were taken up in this regard. So
far 7,697 Panchayat Sanchar Sewa Kendras(PSSKs) have been opened, including 2,371 PSSKs
under the 10th Plan. Since an assessment of these schemes indicates the need for restructuring
them, no targets were given in 2004-05 for opening PSSKs.
The following Rules and Manuals are referred in respect of Savings Bank Operations and
services-:
The Government Savings Banks Act, 1873
The Government Savings Certificates Act, 1959
The Post Office Savings Bank General Rules, 1981

The Post Office Savings Account Rules, 1981

The Post Office Recurring Deposit Rules, 1981
The Post Office Time Deposit Rules, 1981
National Savings Scheme Rules, 1992
Post Office (Monthly Income Account) Rules, 1987
Indira Vikas Patra Rules, 1987
National Savings Certificates (VIII Issue) Rules, 1989
National Savings Scheme Rules, 1987
The Post Office Savings Certificates Rules, 1960
Senior Citizens Savings Scheme Rules, 2004
Post Office Savings Bank Manual Volume I
Post Office Savings Bank Manual Volume II

GENERAL PROFILE OF THE ORGANISATION, FUNCTIONS AND DUTIES

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 and Information 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.
Shri. Kapil sibal is the Minister of Communications and Information Technology And
Dr. Sachin pilot is the Minister of State for Communications and Information
Technology.
Ms. Manjula Prasher is the Secretary (Posts) to Govt. Of India as well as Director
Department of Posts and the Chairman of the Postal Services Board.

General,

The Postal Services Board, the apex management body of the Department, comprises
the Chairman and three Members. The Members of the Board hold portfolios of Operations,
Development and Personnel. 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, Deputy Director General
(FS) is assisting the Board in this capacity. Deputy Directors General, Directors and
Assistant Directors General provide necessary support for the Board at Headquarters. The
Postal Services Directorate is the Headquarters organization 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, Sub - Post
Offices and Branch Post Offices, through their Regional and Divisional level arrangements.

Postal Services
A small rural post office at Chamundi Hills, near Mysore, Karnataka

Speed Post-

The very high speed express service for letters and documents. Speed Post links more than 1200
towns in India, with 290 Speed Post Centres in the national network and around 1000 Speed Post
Centres in the state network. For regular users, Speed Post provides delivery anywhere in India
under contractual service. Speed Post offers a money-back guarantee, under which the Speed
Post fee will be refunded if the consignment is not delivered within the published delivery
norms.
e-PaymentThe 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 are electronically consolidated.
Logistics PostA 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 fulfilment. 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
e-PostDocuments and greetings sent online but delivered by mail
Business PostTotal pre-mailing solutions including collection/printing, inserting, and addressing.
Media PostReach millions through advertisements on Post cards, Letters walls of post office, letter boxes,
post cards and stationary
Direct PostDistributing advertising materials directly to prospective customers.
Postal Life InsurancePostal 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 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 municipalities and Zila Parishads an Educational Institution aided by
the Government.
Instant Money Order Service (iMO)-

The instant domestic money is available in 717 post offices. However no International Money
Order facility is available
International Money TransferAs 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 fulfil the needs of NRI dependent families in India, visiting
International tourists and foreign students studying in India.
Non-postal servicesThe 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
Savings Bank Account
Monthly Income Scheme
Recurring Deposit Account
National Savings Scheme 1992 - discontinued from 01.11.2002
Post Office Time Deposit
Post boxes for mail receipt
Post Office Savings Account

Rate of interest 4.0% per annum Minimum amount Rs 50/- in case of non-cheque account,
Rs.500/- in case of cheque account.

Maximum balance permissible is Rs 1,00,000/- in a single account and Rs 2,00,000/- in a

joint account.

Interest Tax Free.

 Any individual can open an account

Cheque facility available.

Group Account, Institutional Account, other Accounts like Security Deposit account &
Official Capacity account are not permissible.
Post Office Monthly Income Scheme (MIS)
Interest rate of 8.5% per annum payable monthly w.e.f. 01.04.2012

Maturity period is 5 years.

No Bonus on Maturity w.e.f. 01.12.2011.

No tax deduction at source (TDS).

No tax rebate is applicable.

Minimum investment amount is Rs.1500/- or in multiple thereafter.

Maximum amount is Rs. 4.50 lakhs in a single account and Rs.9 lakhs in a joint account.

Auto credit facility of monthly interest to saving account if accounts are at the same post
office.

 Account can be opened by an individual, two/three adults jointly, and a minor through a
guardian.

Non-Resident Indian / HUF cannot open an Account.

Minors have a separate limit of investment of Rs. 3 lakhs and the same is not clubbed
with the limit of guardian.
Facility of premature closure of account after 1 year but on or before 3 years @ 2.00%
discount.
Deduction of 1% if account is closed prematurely at any time after three years.

Suitable scheme for retired employees/ senior citizens and for those who need regular
monthly income.

Post Office Time Deposit Scheme

1 year, 2 year, 3 year and 5 year time deposits can be opened.

Interest payable annually but compounded quarterly:

Period

Rate of interest

One year

8.2%

Two years

8.3%

Three years

8.4%

Five years

8.5%

Minimum amount of deposit is Rs 200/- and in multiples of Rs 200/- thereafter. No

maximum limit.

Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under section
80C of IT Act.

Interest income is taxable.

Facility of redeposit on maturity of an account.

In case of premature closure of 1 year, 2 Year, 3 Year or 5 Year account on or after

01.12.2011 between 6 months to one year from the date of deposit, simple interest at the
rate applicable to from time to time to post office savings account shall be payable.

2 year, 3 year or 5 year accounts on or after 01.12.2011 if closed after one year, interest
on such deposits shall be calculated at a discount of 1% on the rate specified for
respective period as mentioned in the concerned table given under Rule 7 of Post office
Time Deposit Rules.

Account can be pledged as security against a loan to banks/ Government institutions.

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

 Group Accounts, Institutional Accounts and Misc. account not permissible.

Trust, Regimental Fund or Welfare Fund not permissible to invest.

National Savings Certificate (NSC)

NSC VIII Issue (5 years) Interest rate of 8.6% per annum w.e.f. 01.04.2012

NSC IX Issue (10 years) - Interest rate of 8.9% per annum w.e.f. 01.04.2012

Minimum investment Rs. 100/-. No maximum limit for investment.

No tax deduction at source.

Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under NSC section 80C of IT Act.

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

Trust and HUF cannot invest.

 A single holder type certificate can be purchased by an adult for himself or on behalf of a
minor or to a minor.

The interest accruing annually but deemed to be reinvested will also qualify for deduction
under NSC - section 80C of IT Act.

Public Provident Fund (PPF)

Interest rate of 8.8% per annum w.e.f. 01.04.2012.

Minimum deposit is 500/- per annum. Maximum deposit is Rs. 1,00,000/- per annum

The scheme is for 15 years.

Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under section
80C of IT Act.

Interest is completely tax-free.

Deposits can be made in lumpsum or in 12 installments.

One deposit with a minimum amount of Rs 500/- is mandatory in each financial year.

Withdrawal is permissible from 6th financial year.

 Loan facility available from 3rd financial year upto 5th financial year. The rate of interest
charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be
2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans
already taken or taken up to 30.11.2011.

Free from court attachment.

Non-Resident Indians (NRIs) not eligible.

An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association

of persons.

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

Senior Citizen's Savings Scheme

Interest @ 9.3% per annum from the date of deposit on quarterly basis w.e.f. 01.04.2012

Minimum deposit is Rs 1000 and multiples thereof. Maximum limit of 15 lakhs.

Maturity period is 5 years and can be extended for a further period of 3 years.

 Age should be 60 years or more, and 55 years or more but less than 60 years who 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.

No age limit for the retired personnel of Defence services provided they fulfill other
specified conditions.

The account may be opened in individual capacity or jointly with spouse.

TDS is deducted at source on interest if the interest amount is more than Rs 10,000/- per
annum.
Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under section
80C of IT Act.

Interest can be automatically credited to savings account provided both the accounts
stand in the same post office.

Premature closure is allowed after one year on deduction of 1.5% of the deposit and after
2 years on deduction of 1%.

No withdrawal permitted before the expiry of a period of 5 years from the date of
opening of the account.

Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open
an account.

Recurring Deposit Account

Post office recurring deposit is small savings scheme promoted by Govt of India
which can be opened in any of the post office. One can deposit as small as Rs 10
every month.
On maturity after 5 years, INR 10/- account fetches INR 728.90/-. Can be continued
for another 5 years on year to year basis.Any individual (a single adult or two adults
jointly) can open an account.
Features of post office recurring deposit

Minimum INR 10/- per month or any amount in multiples of INR 5/-. No
maximum limit.

6 & 12 months advance deposits earn rebate.

Four defaults are allowed.

Defaults can be paid within two months.

One withdrawal upto 50% of the balance allowed after one year.

Premature closure allowed after three years.

Rate of interest 8.4%.

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.

Business Development Activities

The Business Development Directorate was set up in 1996 to design, monitor,

develop and market value added premium products of the Department. The
Business Development Directorate is responsible for the operations and
marketing of speed post, speed post passport service, business post, greeting
post, express parcel post, media post, megdoot post card, data post, e-bill
post, e-post, bill mail service and logistic post.

Financial servicesThe Post Office Savings Bank is the oldest and largest banking institution in the
country. It operates about 140 Million Savings Accounts. The Post Office Savings
Bank Scheme is an agency function performed by the Department of Posts on behalf
of the Ministry of Finance, Government of India. The Ministry of Finance remunerates
Department of Posts for this agency work at a rate fixed from time-to-time. During
the last financial year 2003-04, the Department earned approximately Rs. 17,000
Millions as remuneration for discharging various responsibilities relating to the
Savings Bank.
Post Office Savings Bank has a customer base of 140 Million account holders with
annual deposits exceeding Rs. 9,70,000 Million. Savings Bank facilities are provided
through a network of 1,54,000 Post Offices, which is double the size of all banks
outlets in the country, put together. Eight products are retailed from the Post Offices
across the country. There are also a number of Schemes covered under the Post
Office Savings Bank and these include Savings Account Schemes, Recurring Deposit
Schemes, Time Deposit Schemes, Monthly Income Schemes, Public Provident Fund
Schemes, Kisan Vikas Patras, National Savings Certificates and the Senior Citizen
Scheme 2004. The outstanding balance under all national savings schemes in Post
Offices is over Rs. 3,750,000 Million.

Financial Services Provide As we have an extensive network, post offices serve the nation by providing various agency
services like banking services. The banking services offered at post office counter are:
Savings Bank Account
Recurring Deposit Account
Time Deposit
Public Provident Fund Account
Monthly Income Scheme
National Savings Scheme Account,1992
National Savings Certificates VIII th issue
Kisan Vikas Patras
Senior Citizens Savings Scheme
New Products and Services introduced by Department of Posts
In recent years, the Department of Posts has tried to leverage its reach and
remittance facility as well as the credibility it enjoys to diversify the range of

financial products and services that the Department of Posts can offer to its
customers. With the induction of technology and progressive computerization of
the network, the Departments capability to provide more value added services has
increased.
Details of some of the services being presently offered by the
Department are given below:-

Mutual Funds & BondsThe Mutual Funds industry has made rapid strides in the country, with assets worth
nearly Rs. 1,550,000 Million this industry is under the management of various Assets
Management Companies. India Post has entered into the business of retailing mutual funds
through select offices. Since February, 2001, a growing network of over 250 Post Offices are
distributing select Mutual Funds and Bonds (Principal/Prudential-ICICI/SBI/ICICI
Capital/IDBI/RBI Bonds). Mutual Fund industry is a new growth area in financial services.
Therefore, as a retailer, India Post is expected to gain a higher revenue share through
commissions and trail commissions. Today the financial services portfolio of India Post has a
large number of other relevant financial products like RBI India Relief Bonds, IDBI Flexi Bonds
and ICICI Pension Fund, etc. The Department has also recently entered into a tie up with the
UTI Asset Management Company Limited, which is the largest player in the Mutual Fund
market in the country, to retail its five mutual fund schemes, on a pilot basis, from select Post
Offices. Till date business worth over Rs. 50 Million has been retailed by the post office network.
This service has helped to extend the reach of the capital market of the country and provides the
common man easy access to market based investment options.
Electronic Fund TransferA facility for Electronic Fund Transfer was launched in October, 2001, leveraging the VSAT
network of the Department to facilitate end-to-end fund transfers by Banks (UTI/IDBI/HDFC)
on behalf of the corporate sector as well as the Capital Market. Banks use this facility to transfer
funds to locations where they do not have a presence.
Warrant PaymentThe Warrant Payment Scheme was launched in January, 2002. It has facilitated redemption of
over 73,000 dividend warrants of UTI and Citibank worth more than Rs. 1,000 Million through
the postal network, establishing the ability of the Department to undertake this critical service,
for the countrys Capital Market.
Electronic Clearance Service (ECS)The Department of Posts has introduced Electronic Clearance Service (ECS), on a pilot basis,
in Mumbai City from 9th August 2003 through 70 Post Offices. The Electronic Clearance

Service is being offered in connection with payment of interest under the Monthly Income
Scheme(MIS). The depositor can have the facility of automatically transferring interest from the
MIS account and crediting it into the SB account at any designated bank electronically, by due
date, through the RBI Clearing House. A nominal charge of Rs. 20/- per transaction is levied on
the customers opting for this facility. As there is a growing demand from customers in different
parts of the country, the Department proposes to extend the ECS scheme beyond Mumbai to 46
more cities where the RBI-EFT (Electronic Fund Transfer) facility is currently available.
International Money Transfer ServiceThis service provides customers the facility of receiving remittances from more than 196
countries on a real time basis. The service is currently available from more than 4500 post
offices. Remittances in excess of US Dollars 125 Million have been delivered through this
service since April 2001. It has brought in remittance worth 72 Million US Dollars from April
2003 to March 2004 and has generated a revenue of Rs.58.9 Million.
The focus of the Departments initiatives in the area of financial services is to provide a bouquet
of services that will cater to the needs of the customer, leveraging the retailing outreach of the
network, so that the Post Office gradually becomes a one-stop shop for a range of such services.
Postal Life InsurancePostal Life Insurance (PLI), introduced in 1884, is the oldest life insurance scheme for the
benefit of Government employees. Initially meant only for the Postal employees, today it caters
to employees of the civil and military personnel of the central and state governments, local
bodies, government aided educational institutions, universities, nationalized banks, many
autonomous and financial institutions, and public sector undertakings of the central and state
governments. In a major innovation, Rural Postal Life Insurance (RPLI) scheme was also
introduced in 1995 for the benefit of the entire rural populace.
PLI offers the following types of policies: i

Whole Life Assurance (Suraksha)

ii

Convertible Whole Life Assurance (Suvidha)

iii

Endowment Assurance(Santosh)

iv

Anticipated Endowment Assurance for 15 & 20 years (Sumangal)

Joint Life Endowment Assurance (Yugal Suraksha)

Under RPLI, there are first four common plans and one additional plan 10 year RPLI.
Their trade names are as indicated below: -

Whole Life Assurance (Gram Suraksha)

ii

Convertible Whole Life Assurance (Gram Suvidha)

iii

Endowment Assurance (Gram Santosh)

iv

Anticipated Endowment Assurance for 15 & 20 years (Gram Sumangal)

10 year RPLI (Gram Priya)

An Extra Departmental Agents Group Insurance Scheme was introduced with effect from
01.04.1992 and a monthly subscription of Rupees 10/- is deducted from the salary of its
beneficiaries. As on 31.03.2004 there were 2,57,695 members under this scheme. In the event
of death of its beneficiary, an amount of Rupees 10,000/- is paid out of the insurance fund, in
addition to accretion in the savings and the interest on it. On 31.03.04 the balance in this scheme
was Rs. 530.1 Million.
Customer CareIndia Post lays maximum stress on customer care in rendering its services and also
to sort out the grievances that arise in the course of providing these services.
Customers can lodge their complaints about our services at their nearby post office
which are authorized to collect them. The complaints are consolidated at a
customer care centre which registers these cases on the website to obtain a reply
online for a final reply at the earliest. There are 1116 computerized customer care
centers to handle public grievances online. The Department also provides the
facility of online registration and response to complaints at its website.
NORMS FOR VARIOUS POSTAL SERVICESDepartment of Posts is proud to have the largest postal network in the world-.
Our service area continues to expand to reach people even in hilly, difficult and
inaccessible terrains. At the same time there is a continuous endeavor to improve
our services/operations with innovative ideas and induction of technology. Our
commitment towards rendering better service emanates from our Mission. Our
Mission guidelines are:
Total dedication to understanding and fulfilling customer needs;
Total devotion to providing efficient and reliable service which the 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.
The Department has formulated and implemented in all major offices its citizen's
charter, which is an expression of our commitment towards improving our services

offered to make them more efficient and responsive and at the same time making
our working more transparent to our valued customers.

The citizen's charter is an attempt to bring the Department closer to its customers.
Our Citizen's Charter Commitments We will treat you with courtesy and consideration.
Our staff will be helpful.
We will attend promptly to your enquiries and complaints.
We will provide all the necessary information at customer care centers.
We will speedily redress customer grievances.
We will make posting facilities easily accessible as far as possible.

Introduction to Core Banking Solution

India posts maintains:
Over 24 Crore accounts
with a deposit of rupees 5.5 Lakh crore rupees
in 1.5 lakh post offices.
India post is losing its customers due to lack of modernization in its customer
experience and operations.
At present, India post does not have the services of ATMs, Mobile banking and
demat certificates facility.

Need for Core Banking Solution in Post Office

Majority of work in manual form.

 Data is re-entered at many levels thereby chances of mistakes are higher.

Many deficiencies in Sanchay Post.
No authentication of data as posting and agreement in huge arrear.
Lack of security features in the existing software.
Data is frequently changed at many levels.
Password is often shared with others.
No MIS facilities
Poor record maintenance
Inadequate audit functions
Non agreement of balances
No ATM or Internet Banking facilities available to match competitors.
No Real Time Processing
No Debit Card facility.
No networking.

Benefits of Core Banking Solution

Reduction in transaction time
Elimination of duplication.
Minimum chance of mistake.
Generation of different types of management Information.
Uniform changes in all systems.

 Interest calculation can be done uniformly in quick time.

Introduction of any new scheme at short notice.
Anywhere-Anytime-Anybranch banking.
Issue of debit cards thereby reducing lines in post offices.
Internet banking.
ATM facilities.
Account to Account transfer of funds in real time.
Compatible for ECS and RTGS.
In built features of balancing.
More security features for data-base.

Pre requirements to introduce Core Banking Solution in Department of Post:

Updation of transaction feeding in all categories
Settlement of un posted items, will follow items and all objections including
minus balance.
Agreement of office wise balances to ensure the authentication of data
Preparation of daily consolidation in Sanchay Post to ensure 100%
transaction feeding.

Comparison

Departme
nt

Post office

Stat Bank

Punjab Bank

Type

Agency of the
Government of India

Public (BSE, NSE:SB

I) & (LSE:SBID)

Public (BSE, NSE:P

NB)

1764

Kolkata, 1806 (as

Bank of Calcutta)

Lahore, 1895

New Delhi, India

Mumbai 400 021

India

New Delhi, India

Founded
Head
Quarters
Key
people

Radhika Doraiswamy,
Director General

Om Prakash
Bhatt,Chairman

--

Industry

Postal system

Banking. Insurance.
Capital Markets and
allied industries

Banking.
Insurance. Capital
Markets and allied
industries

Product

Post card, postal stamp,

Speed post,epayment.logistic
payment; Business post
,Direct post,PLI,Money
order,PPF,NSC,KVP,SBA,
MIS,etc

Loan, Credit
card,Savings,Invest
ment SBI LIC

Loan, Credit
card,Savings,Inves
tment PNB LIC

Employee
s

520,191

205,189

Branch

155,333

16000

Website

http://www.indiapost
.gov.in/

StateBankofIndia
.com

4904
www.pnbindia.c
om

Bank deposits v/s post office savings:

Everyone says interest rates are rising. This is true even for deposit rates. So
does that mean bank deposits could now be a better option to post office
savings? Here is a birds eye view of recurring and fixed deposits offered by
banks and post-office.
Post office Recurring Deposits VS Bank Recurring Deposits:
A post office recurring 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.
These deposits accumulate money at an annual fixed rate of interest of 8 per
cent. The interest is compounded on a quarterly basis. The minimum
investment in a post office RDA is Rs 10 and there is no prescribed upper
limit. For example, if you invest Rs 100 every month in 60 installments, you
will earn a sum of Rs 7,289 after 5 years.
Banks, however, offer a flexible time period on their recurring deposits. You
can open an RDA for a minimum period of 6 months, and thereafter in
multiples of 3 months up to a maximum period of 10 years.
In banks, you can start a recurring deposit with State Bank of India (SBI) for a
monthly installment of Rs 100 whereas ICICI Bank has kept its minimum
deposit limit at Rs 500.
An individual can open an RDA account with a post office individually or one
in a joint form with another investor, or a guardian on behalf of the minor
who has attained the age of 10 years can open an RDA account in his/her
own name. The advantage with post-office deposits is that it offers a fixed
rate of return for the duration of the deposit, while banks constantly review
their recurring deposit rates.
However, the disadvantage with post office savings is that that in the age of
convenience banking, you will have to visit the post office every month. In
case of banks, the amount is automatically debited from your account.
Premature withdrawal, however, cannot earn you desired returns.

In post office RDA, you can withdraw up to half the balance. On premature
closure of the account (after one year), interest is payable as per the rate for
the Post Office Savings Bank Account, which is 3.5 per cent.
In the case of banks, premature closure of an RDA will attract a penal
interest. This means the depositor will get interest around 1 per cent less
than the prevailing rate. It will certainly be higher than the 3.5 per cent paid
by post office.
Post office Time deposits vs Banks Fixed Deposits:
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 be Rs 200 and its multiples. The tenure of bank fixed
deposits are flexible, with periods ranging from 15 days to 10 years but the
minimum amount is as high as Rs 10,000.
In case of postal time deposits, the account can be closed after 6 months but
before one year of opening the account. On such closure, the amount
invested is returned without interest. If a time deposit of two or three years is
withdrawn prematurely, post office will pay interest only for the completed
year or years.
For example, a fixed deposit for two years is withdrawn after 20 months,
interest will be paid only for the one full year completed. The depositor will
lose interest for the remaining 8 months.
If a bank FD is closed before completing the original term of the deposit,
banks have the discretion to charge penal interest. If a bank decides to
charge penal interest, the depositor will be paid interest at a lower rate than
that was contracted.

SWOT ANALYSIS
A SWOT analysis (alternatively SWOT matrix) is a structured planning method
used
to
evaluate
the strengths,
weaknesses,
opportunities
and
threats involved in a project or in a business venture. A SWOT analysis can be
carried out for a product, place, industry or person. It involves specifying the
objective of the business venture or project and identifying the internal and external
factors that are favorable and unfavorable to achieve that objective. Some authors
credit SWOT to Albert Humphrey, who led a convention at the Stanford Research
Institute (now SRI International) in the 1960s and 1970s using data from Fortune
500companies.[1][2] However, Humphrey himself does not claim the creation of

SWOT, and the origins remain obscure. The degree to which the internal
environment of the firm matches with the external environment is expressed by the
concept of strategic fit.

Strengths: characteristics of the business or project that give it an

advantage over others.

Weaknesses: characteristics that place the business or project at a

disadvantage relative to others.

Opportunities: elements that the project could exploit to its advantage.

Threats: elements in the environment that could cause trouble for the
business or project.

Identification of SWOTs is important because they can inform later steps in

planning to achieve the objective.
First, the decision makers should consider whether the objective is attainable,
given the SWOTs. If the objective is not attainable a different objective must be
selected and the process repeated.
Users of SWOT analysis need to ask and answer questions that generate meaningful
information for each category (strengths, weaknesses, opportunities, and threats) to
make the analysis useful and find their competitive advantage.
SWOT ANALYSIS
1. STRENGTH

More products in comparison to SBI and PNB

More branches, more facilities

More employees

More services

Good facilities to customers

Strong Network

Cost Effective

Security /Safety with respect to deposits

Efficient Manpower

2. Weakness

No advertisements

Not provide loan to consumer

Unchanged working culture

Job stress among employees

Lower rate of interest on deposits as competors

3. Opportunity

In rural and urban areas

In vendoring field

In developing Indian economy

In developing communication to other countries

In developing good rapport with people

Increasing number of customer

Inflationary market

Technological advancement

4. Threat

Courier services

A lot of courier companies

Insurance companies

Banking sector

Customer dissatisfaction

Increasing market share of competitors

Competitors' Strategy To Increase The Market

The competitors of Indian Postal Services are attracting the customers by a number
of ways. The following are the remarkable signs that leave their print in the heart of
customers while visiting the private sector banks / insurance companies, courier
companies:
1.- At the entrance of the office, one security person wishes warmly and pulls
the door for you. (First impression is the last impression).
2.- Gesture and posture of the employees and their appearance makes the
environment pleasant.
3.- Time effectiveness.
4.- Effective working culture that helps employees to be more productive.

5.- Interconnection among small companies (for example a courier company

with limited network, makes a tie-up with another company and drops the
mails to the desired destination.).
6.- Provides higher rate of interest on deposits.
If we compare the SWOT Analysis of Indian Postal Services with its Competitors'
Strategy to increase their market share, we would come to know that the
' strength' of Indian Postal Service is very strong and if it makes certain changes in
its policies it can remove its 'weakness' and can easily overcome from the 'threat'
situation.
If there is a 'problem' in the relationship among the family members, it can be
removed only by painting the heart of the family members rather than painting the
walls of the house. In a company, family means the relationship between:
i.- Top Level Management,
ii.- Middle Level Management,
iii.- Lower Level Management, and
iv.- The Customer
The customers are also a part of our professional family and to strengthen the
relationship with the customers, efforts should be done from entire family members
whether it is a top level management or a lower lavel management .

Suggestion
There are a few suggestions which may help to Indian Postal Service Department
in its further growth:
i.- To increase the productivity of the employees, Job Rotation Policy should
be adopted because a similar nature of work makes an employee irritate and
less-productive.
ii.- Soft Skill Training is provided to the employees but the implementation
should be done from the Top Level Management because they are the
leaders. If a leader will come late in the office, the follower will also come
late.
iii.- Employees are the internal customers of a company. Their satisfaction
carries a greater value. A true & fair feedback system should be their where
each employee can put their words without any fear.
iv.- Employees should be motivated for providing suggestions and if any
suggestion is really valuable, proper attention is required . There should not
be any adverse action against employees at the time of providing suggestion.

v.- A dress code should be there to form uniformity among employees and the
colour of the uniform should be in a light shade because it makes the working
environment cool. (All the colours have their psychological effect.)
vi.- No employee should be allowed to work overtime. Even he should not
work after the duty-hour. Because, the efficiency & effectiveness in the work
means completion of a work within the time limit.
vii.- An attractive infrastructure attracts the customers. Therefore, attention
should be given towards this side.
viii.- Time is precious for every one. With this motto, the customer service
department should work so that there shall not be a long queue in any
counter.
ix.- Customer-friendly environment should be there in every counter.
x.- In today's inflationary market, banking sector is providing higher rate of
interest on deposits. The postal service department should also adopt this
kind of strategy to retain their customers.
xi.- The postal service department should adopt an adequate promotional
policy. For example, advertisement in local newspaper for financial services
provided by the Indian Postal Department.

Conclusion
It can be concluded, that Indian Postal Service needs technological, social, cultural
& economic change. With a little bit of change, it can create a monopoly in the
market.
But Indian postal services is only one central government services for Indian
peoples as well as post card , postal stamp KVP , NSC ,MIS and other some product
which is best campier to other private company like Postal life insurance.
Lastly conclusion is a - - - - - - - -

India is a beautiful so our Post Office

References / Bibliography

www.indiapost.gov.in
Wikipedia
www.business-standard.com
www.indiapost.gov.in/POSBActs/SMALLSAVINGSSCHEMES.pdf
www.moneycontrol.com
articles.economictimes.indiatimes.com