CHAPTER 1

INTRODUCTION

In the beginning of the 19th century, there were only a few banks and that too in big towns and
cities. It was very difficult for the common man who wanted to save his small amount of money
in the bank, to go to a bank as he had to incur expenditure for the journey. Further, saving habit
amongst the people was almost nil, and most of the people had their small savings in the form of
gold and silver. On the other hand, the Government wanted to encourage savings because they
were in direct need of money for various developmental activities, for strengthening military
establishments and for carrying out administrative reforms. These factors compelled the
Government to start Savings bank through the Post Office.

Government Savings Bank was started in the three Presidency towns of Calcutta, Madras and
Bombay in 1833, 1834 and 1835 respectively. In 1860, the Secretary of state for India initiated
steps for empowering the +under organized and not mature enough to take upon such banking
business. Some changes took place subsequently in the management of Savings Bank. Between
1863 and 1865, the management of the Savings Bank was transferred from Government
Treasuries to the Presidency Bank, and each Presidency Bank framed its management. The
deposit allowed was Rs. 500 in a year up to a maximum of Rs. 3000 and the interest rate was
fixed at 3.75 percent per annum. In practice, the SB counters were kept open twice in a week.

Financial services of the Post Office form a profitable business today, although they were started
as a supplementary income generating operation. Post offices render a plethora of agency
services in addition to their basic duty of mail delivery. These services include savings Bank,
Money Order, Postal Order and Postal Life Insurance. This helps the postal Department produce
income to the extent of nearly 45% of its budget revenue.

India Post is committed to provide basic postal facilities throughout the country at an affordable
price. A network of 1.55 lakh post offices in the country, the largest in the world, of which more
than 1.39 lakh are in the rural areas, is indicative of this commitment.
Though people felt nostalgic about this service which had touched people’s lives in many ways,
the common view was that the Indian postal department had itself lost its relevance in days of
mobile, emails and instant messaging. True, the modern day communication system had made
this age old service quite defunct and obsolete , but the fact remains that the Indian post office
still remains the lifeline of rural India in many was or the other. Frankly not many people
especially those living in urban India would realize this.There are as many as 1, 54,822 post
offices across the country and around 90 percent of the post offices are located in rural India.
And these post offices meanserious business.

One of the key roles for the postal department today is delivery of financial services across the
country. Its services are of great significance in rural India, where no other organization, be it
government of private, has such deep rooted reach and the capacity to deliver social security
schemes. Indian post office saving bank has been the primary avenue for mobilizing small saving
in the country for the last 150 years. In this era of fast developing information and
communications technology, large scale induction and assimilation has become vital for the
sustenance and growth of India Post.

• OBJECTIVES

• To make brief study of various schemes provided by post office to customers.

• To know the saving habits of individuals in the rural areas of Trivandrum District.

• To understand the awareness of people towards post office saving scheme.

1.2 HYPOTHESIS

• Schemes provided by postal department are more effective in the case of lower
income groups in rural areas.

1.3 METHODOLOGY

The study is both empirical and descriptive. Primary and secondary data are
 made use in the analysis. Primary data has been collected from rural areas in
Trivandrum district. At random 50 samples were taken for the study. 50 respondents
were selected on a random basis, 10 each from 5 post offices in the Trivandrum District
for conducting the survey. Data was collected using a well-structured interview
schedule. Data analysis was done using statistical tools like percentage, total ratios,
etc. Secondary data has been collected from various issues of Economic review,
Annual reports of postal departments, journals, books and internet also.

1.4 STATEMENT OF THE PROBLEM

India is an economy where various kinds ofpeople, rich orpoorare living. Studies
of rural households in various states in India show that the poor are looking for ways
to save small amounts where they can. Saving havebeen an importanttool in poverty
alleviation.People need savings to run their daytoday life.Savings depends on the life
style ofa person. Domestic savings play an important role in bringing about
economicdevelopment of backward countries.Inorder topromote the economy of our
country various postoffice savingsschemes has been introduced by the
postoffices.There are manysaving banks alsooffering deposit schemes, but still post
office schemes have its importance. This research has taken up with the main
purpose of studying the

significance of postal Department for the mobilization of savingsin rural areas and
also findingpeople’sawareness about postal saving schemes.

1.2 RELEVANCE OFTHE STUDY

The Indian economy isgrowing significantly andhas various investment options.But

the Government of India has provided the oldest investment plans still the postal
savings schemes have not gained much importance.The changing postal environment
presents an enormous challenge for traditional postal business. Italso has vast arrays
of new business options and opportunities, the interest provided by the Postal
schemes are alsohigher. The present study has been undertaken to understand the
various schemes provided by the postoffice and also the study has to know the saving
habit and people awareness towards postal schemes.
1.6 LIMITATIONS OF THE STUDY
• This study was conducted among a limited population in Trivandrum district due to
time constraint.

• Biased view of the respondent is another cause of the limitation.

1.8. REVIEW OF LITERATURE

1. Report of the Congress Committee (1956) states that the intention to save is
important for human life especially for developing countries. Saving is necessary forthe
sake of both nation as well as an individual. Now-a-days, people are interested in making
their investment in buying ornaments. In the changed context of things, somemeasure is
needed for our people to give up these habits which are unproductive andalso risky.
Hence, there exists good scope for investment in small savings.

2. The National Council of Applied Economic Research (NCAER) (1961)Undertook a

comprehensive study on the “Aggregate savings in India in 1958” with aview to
provide detailed estimates of savings and investments in the major sectors ofthe
economy, viz, the government, corporate and individual sectors. The study revealed that
in comparison with individuals and the government, corporations have never played a
substantial role in the Indian economy or in the aggregate savings.

3. Shantilal Sarupriya (1963) in her case study, Individual Savings in

anUnderdeveloped Economy – India, has made an attempt to give certain widely
heldViews about an individual’s saving behavior in an underdeveloped economy like
Indiaand suggested the ways of potential savings which could be mobilized for
investment.The study has revealed that productive assets like shares, securities, insurance
premium, bank deposits and small savings have been held by investors for around
25percent of total household savings. Unproductive assets like gold, currency and
durables attracted rest of the 75 percent of savings. It has also been found in the study
that the act of savings in Indian families was the duty of women, who were largely
illiterate and more tradition bound than the men. In India, the very uncertain economic,
political, social condition, monsoon dominated agriculture provide a strongincentive for
large mass of people to save.

4. Desai (1967), in his study, “Social Aspects of Savings” has said that the social and
cultural aspects of individuals, families and communities are the main factors for
influencing savings. In this circumstance, it is easy to avoid compulsory savings and to
create a good climate for socio-cultural aspects.

5. Kelly and Williamson (1968), made their attempt “Household Saving Behavior in
the Developing Economics: The Indonesian Case” to study the importance of income
levels in influencing average saving rates by occupation. They concluded that the farmer,
the government employee and the urban wage earner are all negative savers, while the
trader – craftsmen and the owners of businesses have average saving ratios.

6. Panikar (1970) in his study, “Rural Savings in India” has stated that whencompared
with urban, rural families have interest for savings. But most of the rural savings are held
in the form of physical assets, especially in land and buildings. He suggests that the
financial institutions should take necessary steps to familiarize the new forms of
investments to rural areas. The opening of new channels of investment in the rural areas
will tone up the rural capital market. A radical change in the pattern of investment in the
rural families is a pre-condition for stepping up investment and accelerating development
in the sector.

7. The Inter-Regional Seminar on “The Mobilization of Personal Savings

inDeveloping Countries”, held at Stockholm (1971) has recognized that in order
toextend the savings habit of the public, it is essential to carry out dynamic publicityand
education campaigns. The campaigns should be tailored to the attitudes and needsof the
people of the country and make continual analysis of the motives which tunepeople to
save.

8. Mujumdar (1980) in his study, “High Savings Phase of Indian Economy”

concludethat the saving scenario of Indian economy faced a drastic change in the latter
half of the 1970s.Savings in the form of physical assets which was about 5 to 6percent of
the national income during the early 1970’s rose to 8.6 percent during1977-78, and
further to 9.3 percent during 1978 – 79. He concluded that in

the period1976 – 79, the buildup of institutional infrastructure, the rapid branch
expansion ofcommercial banks and the establishment of Regional Rural Banks, provided
the basefor higher mobilization of savings.

9. Tamilkodi (1983) has stated that small savings schemes have a psychological appeal
and it provides an opportunity for ordinary men, women, and even children to park their
savings. It reaches a large number of people and covers a wide range of areas. She also
suggested that efforts should be taken to simplify the procedure of small savings schemes
to suit the needs of illiterate and socially downtrodden people. Further, she suggested an
increase in the rate of interest of small savings schemes to meet the challenges of
commercial banks.

10. Chandrasekhar and Geetha.K.T, (1996) in their research paper, “NationalSavings

andEconomic Growth”has confirmed that there is a strong associationbetween a
nation’s saving rate and rate of growth of per capita income. They havealso found out that
the gross saving rate which was just 18.7 percent in 1986 – 87 hasstarted increasing
afterwards mainly because of household savings touched an all-timehigh level of 24.4
percent.

11. Somasundaram (1999) in his study, “A Study on Savings and InvestmentPatterns

of Salaried Class in Coimbatore District” found that bank deposits and chitfunds were
the best known modes of savings among investors and the least knownmodes were UTI
schemes and plantation schemes. Attitudes of investors were highlypositive and showed
their intention to save for better future. Nearly two–thirds of theinvestors were satisfied
with their savings. Both income and expenses of familyinfluenced the level of
satisfaction over savings. A large proportion of investors wereconcerned about their
children’s well–being. Among the dissatisfied investors, majority were of the opinion that
cost of living was too high. The most common modeof investment was bank deposits.
However, a shift was noticed from bank deposits toother forms of investment. Almost all
the investors had invested in gold and silver.Among several parameters in investing,
safety of money was considered to be themost important element. Next, the investors
expected regular return from their investment.
12. Gavini and Athma (1999) in their article, “Small Saving Schemes of PostOffice
Need to be Known More” found that social considerations, tax benefits, andprovision
for old age were the reasons cited for saving in urban areas, whereas toprovide for old
age was the main reason in rural areas. Among the post officeschemes, Indira Vikas Patra,
KVP and post office Recurring Deposit Account werethe most popular, in both urban and
rural areas.

13. Salam and Kulsum (2000) in their study, “Savings Behaviour inIndia:
AnEmpirical Study” attempted to find out the determinants of savings by
analyzingsaving behaviour in India over a period of nineteen years i.e., from 1980 – 81 to
1998– 99. It was tried to test empirically and validity of the proposition that saving
isassumed to have the function of income and the rate of interest. The analysis
revealedthat household sector saving provided the bulk of national saving. The share of
total household saving to the total national saving had gone up from 75.9 percent in 1980
–81 to 82.7 percent in 1998 – 99. The public sector saving rate declined but thecorporate
saving rate improved. The share of private corporate saving to total nationalsaving
increased from 8.0 percent in 1980 – 81 to 17.2 percent in the same period.The growth of
corporate sector saving accelerated in the post-reform period. In theliberalized
environment, with the increase in competition and foreign directinvestment (FDI), the
projects of the corporate sector had registered high growth leading to increased saving
rate. Therefore, the argument that globalization results inconsumerism, which in turn
reduces saving rate, was not proved by empiricalevidence. The declining trend of public
sector saving was attributable to the negativesaving of government administration. It has
also been observed that the growth ofincome was not a very effective instrument to
influence the savings rate. From theanalysis it was concluded that a favorable macro-
economic environment supported by strong structural reforms including liberalization of
financial markets should helpdomestic savings to increase substantially.

14. Karthikeyan (2001) conducted, research on ‘Small Investors’ Perception on Post

Office Saving Schemes and found that there was significant difference among the four
age groups, in the level of awareness for KVP, NSS, and Deposit scheme for Retired
employees, and the overall score confirmed that the level of awareness among investors
in the old age group was higher than in those of the young age group. No difference was
observed between male and female investors except for the NSS and KVP. Out of the
factors analyzed, necessities of life and tax benefits were the two major ones that
influence the investors both in semi–urban and urban areas. Majority (73 .3 percent) of
investors of both semi–urban and urban areas were very much willing to invest in small
savings schemes in future provided they have more for savings.

15. Scher (2001) observed that in many countries Postal Savings and Giro remittances
have long enabled provision of financial services to all segments of the population.
Questionnaires were sent to the Ministers and Postal administrations of approximately 80
countries in July 1999. The review of experiences of Asian developing countries
suggests many ways by which developing counties can help themselves to mobilize
domestic savings and provide domestic financial services through postal savings and
remittances and thereby provide financial services to those most likely to be excluded.

16. Suguna.G (2002) in her research, ‘A Study on Investor’s Attitude towards Saving
Pattern’ has concluded that there exists poor positive correlation between income and
saving. There exists high positive correlation between income and tax, indicating that the
taxes were increasing when the income increases.

17. Rajarajan.V (2002) in his article entitled “Determinants of Portfolio Choiceof

Individual Investors” concluded that investors with lower expected rate of return, lower
risk bearing capacity and with loss avoidance behaviour prefer the portfolio withmore of
fixed assets. They see their rewards as a result of luck, chance & fate etc. The investors
with high expected rate of return, high risk bearing capacity and less of lossavoidance
behavior prefer a portfolio with more of risky assets. The result has indicatedthat the
investors prefer a portfolio with more of risky assets.

18.Richa(2004) in their study argued that the Post office continues to be a major
attraction for savers going by the 32.45 percent higher collections during the first quarter
of the current fiscal relative to that mobilized over the same periods of 2003- 04. Finance
Ministry officials say that the attraction for the Post office deposit schemes stems from
the higher interest rate they offer vis-a-vis what banks give. Between 1999-2000 and
2003-04, gross collections under the savings deposits shot up from Rs.34, 650 crore to
Rs.91, 3000 crore.

19. Society for Capital Market Research and Development (2004) conducted a survey
entitled “Indian Household Investors survey- 2004” to identify the investor‘s
preference, problems and policy issues. The study was based on direct interviewing of a
large sample of 5908 household heads over 90 cities and across 24 States. The study
states that price volatility, price manipulation and corporate mismanagement/fraud have
been the household investor‘s top three worries in India. A large percentage of investors
had a negative opinion on company management. A majority of retail investors in India
do not regard mutual fund equity schemes as a superior investment alternative to direct
holding of equity shares. Retail investors prefer bank deposits rather than liquid/money
market funds. A Shareholdings in 3-10 companies are the dominant practice among retail
shareholders in all income and age classes. Middle class investors are conservative and
they invest for longer period. Equity shares have achieved a much higher degree of
penetration among middle class households compared to other capital market
instruments.

20.V.K.Thomas (2005) in his article “Tax Saving Avenues to the SalariedClass”

suggested that an optimum plan of saving schemes will bring maximum returnand lesser
tax burden to the tax payers. In the new scenario, the savings in the form ofcontribution
of PF/ Pension Fund will take a portion, tuition fee paid for children alsotake a portion.
Those who are having housing loans can opt for enhanced payment ofHousing Loan
principal amount. It has the benefit of reducing the interest liability. Forthe rest of the
amount at the disposal, 20 per cent to 30 per cent could be invested inreliable mutual
funds promising high returns. 20 per cent

to 30 per cent can be set asidefor insuring the life of the assesses, his/her spouse, children
including major children.Those persons who are about to retire within 10-15 years can
better choose a pensionfund that falls due, after retirement. Persons close to retirement
also can enhance their contribution to Provident Fund.

National Savings Certificates and Infrastructure Bonds may not be the right
choice, as the interest accumulated on these will be subjected to tax. A portion can also be
invested in short term securities like Post Office Savings Bank Account, Fixed Deposits
in Banks without much burden on tax liability.

21. Krishnaveni.L (2007) in her study titled “Savings Behavior in India” shehas
suggested a different form of financial savings for individuals. A Systematic Investment
Plan (SIP) is gaining popularity among the salaried people. They may deposit
theirsavingseither in the form of short-term or long-term deposits. The retired employees
and the senior citizens may invest in public sector banks as they have been offering an
additional rate of interest as an incentive to senior citizens. The financial savings have
more liquidity than the physical saving.

22.R.Kasilingam and G.Jayabal (2008) in their article titled “Segmentation

ofInvestors based on Saving Motives” analyzed that around 95 per cent of Indians
agree with the existence of motives to save money and 75 per cent of the people have
high level of motivation towards savings. Another important finding of the study is that
the level of motives has a significant influence on size of savings. India has high savings
rate because Indians have high level of motives to save. The present high level of savings
rate will continue as long as Indians have high level of motives. Hence, the savings in
India mainly depends on the ability to save. Understanding the requirements and
characteristics of various segments, the marketers of investment products can tailor
different instruments exclusively to fit their needs. This will help them to tide over the
competition effectively and efficiently which might arise out of globalization.

23. S.Kalavathy (2009) in her work titled “A Study on the Savings andInvestment
Behaviour of Salaried Persons” stated that the current study is divided intotwo sections.
The first section elucidates the awareness of savings and Investment modesand factors
influencing the savings and investments, the second section discusses on theirpreferences,
perceptions and satisfaction towards the savings and investment avenues. Ithas been
found that with the proportion of population, the working age group of 15-64years is also
going to increase in future, the demographic extra savings are also likely toincrease. The
study shows growth in real interest rate, growth in per capita income,spread of banking
facilities and the rate of inflation as statistically significant positiveinfluence on domestic
savings.
 24. Ganapathi (2010) studied that various Small Saving Schemes were mainly meant to
help the small investors and also those who are in high tax brackets. The study concluded
that proper advertisements must be made for Post Office Saving Schemes, so that even a
layman could know about these Schemes and deposits can be increased. They stated that
investing their amount in Post Office deposits provides safety and security for the amount
invested.

25.Dr. Dhiraj Jain and Ms. Ruhika Kothari(2010) in their article “Investors attitude
towards Post Office Deposits Schemes ” the study attempt to identify the awareness,
preference, problems and attitude of investors towards various deposit schemes offered
by post office among 100 respondents of Udaipur district . The primary data is collected
through structured questionnaire and convenience sampling is used. Statistical tools like
simple percentage, chi- square analysis, standard deviation and mean were taken to find
out the significance level. Thus from the study it is found that majority of the respondents
invest in post office deposit scheme for the purpose of safety and security.

26. Vinayagamoorthy and K.Senthilkumar (2012) in their study titled “An analysis of
PostalInvestment and Small Savings”, have shown that mobilization of domestic
financial resource has remained a major concern in many developing countries. Despite
the variety of vehicles that are intended to mobilize and allocate financial resources, only
very few offer strategies for meeting the needs of poor and lower income people. Savings
are increasingly beings acknowledged as a powerful tool for poverty reduction. Postal
savings funds play a significant role in financing public debt and in a number of
countries, the funds are intermediated through a variety of policy based financial
institutions with developmental objectives, returning the funds to the direct benefits of
the community of savers. Savings is the excess of income over consumption expenditure.
Savings are meant to meet contingencies and raise standard of living of individual savers.

1.6 CHAPTER SCHEME

The first chapter deals with the importance of postal service titled with introduction. It
also contains Statement of the problem, Objectives, Hypothesis, Methodology and review
of previous studies conducted in this areas.ie, review of literature. The second chapter
provides an overview of postal services which includes various postal saving schemes.
The third chapter is the analytical study of schemes of postal department for the
mobilization of savings in rural areas in Trivandrum district. The fourth chapter deals
with the summary, findings, suggestions and conclusions of the study.

CHAPTER 2
POSTAL SERVICE IN INDIA – AN OVERVIEW

Various investment opportunities are available for an individual to his savings and
he can choose the appropriate investment schemes, which suit his needs. There are
different types of opportunities provided by many financial institutions like commercial
banks, co-operative banks, post office savings banks, life insurance corporation public
limited company. Of all the above mentioned institutions, Post Office Savings Bank play
vital role. It provides numerous benefits to the investors. Post office saving bank is the
largest savings institutions in the country. With a view to mobilizing savings of people
with relatively small income and circulating in them a spirit of thrift and savings, the
Central Government has endeavored to make the National Savings Movement popular by
offering high returns than those given by scheduled banks. There are a number of
attractive schemes, well designed to meet the individual requirements of different
investors. Tax saving features of those schemes attracts the higher income groups more
than small savers.

Savings bank work was undertaken by post offices on 1 April 1882 and the entire
banking operations were kept under the supervision and management of postmasters. In
Tamil Nadu, the introduction of POSB was confined to small places. The object of
establishing SB was to extend banking facilities to millions of poor and middle class
people living in the farthest corners of the country and to accumulate and invest their
savings, and to use the same for the economic development of the country and also to
meet the administrative needs and requirements of the Government. It also aimed at
encouraging thrift.

The investment avenues provided by the post offices are generally marketable as
 they are a saving media. The major instruments of post office schemes enjoy tax benefits
such as exemption of investment contribution or interest income from tax or both up to
certain limits.

2.1. POSTAL SERVICES IN INDIA

India possesses the largest postal network in the world with 155,000 post offices
spread all over the country as on March 31, 2001, of which 89 per cent are in the rural
sector. Post offices in India play a vital role in the rural areas. They connect these rural
areas with the rest of the countryand also provide banking facilities in the absence of
banks in the rural areas. They come 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 six members. The six Members of the Board hold portfolios of Personnel,
Operations, Technology, Postal Life Insurance, Human Resource Development (HRD)
and Planning functions. 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 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.
The modern postal service in India is more than 150 years old. In 1854, the Post Office in
the Province of Sindh, (then in British India), made postal history, when India became the
first country to issue postage stamps. In October 1854, all the post offices of Indian sub-
continent came under centralized control. In the same year Railway Mail Service was
established and India had a network of 701 post offices across the continent. In 1911,
India achieved another "first" when a biplane from Allahabad to Nalini flew with 6500
pieces of mail. The flight was the first official Air Mail in the world.After independence,
the Indian government broadened the vision of the postal system to reach the entire
 population of the country. Today Indian postal system has a reach that ranges from arid
deserts of Rajasthan and Kutch to the icy heights of Laddakh. India has the highest post
office in the world in Sikkim at a height of 15,500 feet (postal code – 172114). Indian
postal service provide many facilities like - general or registered mail, parcel post, speed
post, express post, e post and special courier service known as EMS-speed post. They
also offer a number of post office savings schemes like National Savings Certificate,
Kisan Vikas Patra, Recurring Deposits and Term Deposits.

• POSTAL SMALL SAVINGS SCHEMES.

• SAVINGS BANK

Savings bank is one of major agency function of the department of posts. The
schemes and the rules relating to them to the are formulated by the ministry of finance
(Department of EconomicAffairs),Govt.ofIndia
The collections under the post office savings banks accounts give us long terms
long the respective state government for development activities. The Investors of post
office savings bank thus become partners in the nation building as well.

FEATURES

• Savings bank account may be opened by an adult in his / her individual capacity 2
or 3 adults jointly, a minor above 10 years of age, a guardian on behalf of a minor,
by pensioners.
• The minimum balance must be Rs. 50/- forordinary account and Rs.500/-for
cheque account.
• The maximum balance cannot exceed Rs.100, 000/- in case of single account and
Rs. 20,000/- in case of joint account.
• Rate of interest of 3.5%per annum.
• A public account may be opened by an association or institutions. The account
carries an interest of 3%.
• Security Deposit Accounts may be opened by an Agent who is required to deposit
security in his capacity etc. The account carries an interest of 2 %.
• Cheque facility is available.
8. Cheques are accept by all banks.
 9. Nomination facility is available.
10. Any number of accounts can be opened limited to one per post office.

TABLE.2.1.

RATE OF INTERST
TYPE OF ACCOUNT RATE OF INTEREST PER
ANNUM
Single Account 6.5% 5.5%
Pension Account 7.5% 8.5%
Joint Account 5.5% 6.5%
Sanchayika Account 6.5% 6.5%

• TIME DEPOSIT

In Time Deposit Account, the depositor make one lumpsum deposit of Rs200/- or
in multiples of Rs.200/- for a fixed term or 1 year, 2 years, 3years or 5 years. The Interest
is paid once in a year at the rate prescribedon completion of the period.The Deposit
amount is repaid premature closure ispermitted after six months and within year and no
interest will be paid procedural are as for savings account.

FEATURES

• The term of deposit shall be 1 year, 2 year, 3 year, 5 year.

• There is no limit for deposit
• Interest is payable annually but calculated quarterly
• Any individual can open an account.
• Any number of accounts can be opened
• An Account of maturity may be extended for a future period 1- 5 years
• Post maturity shall be allowed for a maximum period 2years at saving account
rate.
 TABLE.2.2.
RATE OF INTEREST

PERIOD RATE (%)

1 year account 7
2 year account 7.1
3 year account 7.3
5 year account 7.8

• RECURRING DEPOSIT

Recurring Deposit accounts provide for monthly deposit maturing at 5 years. The
depositor opens RD Accounts with a definite denomination goes on depositing every
mo0nth for a period of 5 years and gets a sizable amount at the end of the term. Since the
deposits‘recurring’ is mature every month, the scheme is named as Recurring Deposit.
Premature closure is permitted after 1 year on SB rate of interest. This scheme is very
popular among salaried people.

FEATURES

• May beopened by single adult, guardian on behalf of a minor or minor of age 10

years or more.
• Account may be opened the denomination of multiple of Rs.5/-with minimum of
Rs. 10/-
• Any number ofAccounts may be opened.
• There is no maximum limit of Deposit
• Depositmay be madeon any working date in the month.
• The accounts will be treated as discontinued when the numbers of defaults exceed
four.
• Defaults can be paid within two months.
• The Accounts on maturity can be extended for a future term of 5 years with us
without deposit.
 • Post maturity is interest is paid prescribed rate.
10. Part withdrawal facilityavailable.

• MONTHLY INCOME SCHEME

In the monthly income scheme accounts scheme depositor make 1 lump sum
deposit for a period of 6 years of Rs.1000/- as multiples of Rs.1000/-.The depositor gets
monthly interest from thevery next month of the deposit. After maturity, he will get back
the deposit amount with an additional 10 % as bonus. Premature closure is permitted
after one year. The procedural rules are as for savings accounts. There is no concession
for income tax.

FEATURES

• Any individual can opened an account

• Minimum deposit on account must be Rs. 1000/-
• Maximum deposit single account is Rs 3Lakhs and in a joint account it is
6 Lakhs.
• Rate of interest 8 %
• 10 % bonus on maturity.
• Auto credit facility to SB Account
• Maturity period -6 yrs.
• Income by means of interest up to Rs.12000/- is exempted for a payment of
income tax under section 80 of IT Act.
• Safe and sure to get a regular monthly income.

E.SENIOR CITIZENS SAVINGS SCHEME.

Any person who is of 60years and above who has attained the age of 55 years or
more but less than 60years whohas retired under VRS on the date of opening the
account. He can opened the account within 3 months from the date of retirement. Person
should attach the certificate along with the application for opening the accounts from the
employee indicating the fact of retirement under such VRS retirement benefits,
employment held long the with period of such employment.

FEATURES
 • NRI and HUF cannot opened the account.
• Joint account can be opened only with spouse.
• Depositor should produce certificate forage proof, PAN, and 2 photographs while
opening the accounts.
• Deposit can be made by cash or cheque if the amount of deposit ismore than
1lakhdeposit should made only by cheque.
• Depositor may operate more than 1 account in multiples of Rs.1000/- subject to
the condition that the balance in all the accounts taken together shall not exceed
the maximum limit Rs. 15lakhs. Not more than 1 account opened in the same post
office in the same calendar month.
• The account carries interest of 9 % per annum. Interest shall be payable quarterly
on march 31st June 30September 30 and December 31st.unclaimed interest will
not earn any interest Rs.2250/- will be paid at the end of each quarter on a deposit
of Rs. 1 Lakhs.
• Interest can be automatically credited to SB account .if the SB account is also
opened in the same post office.

TABLE.2.3.
THE AMOUNT OF INTEREST TO BE PAID FOR COMPLETE QUARTER AT
THE RATE OF 9%

Amount of deposit Interest per quarter Amount of deposit

Interest per quarter amount of deposit interest per quarter
(Rs) (Rs) (Rs)
1,000 22.50 30,000 675.00 5,00,000 11,250.00

2,000 45.00 40,000 900.00 6,00,000 13,500.00

3,000 67.50 50,000 1,125.00 7,00,000 15,750.00

4,000 90.00 60,000 1,350.00 8,00,000 18,000.00

5,000 112.50 70,000 1,575.00 9,00,000 20,250.00

6,000 135.00 80,000 1,800.00 10,00,000 22,500.00

7,000 157.50 90,000 2,025.00 11,00,000 24,750.00

8,000 180.00 1,00,000 2,250,00 12,00,000 27,000.00

9,000 202.50 2,00,000 4,500.00 13,00,000 29,250.00

10,000 225.00 3,00,000 6,750.00 14,00,000 31,500.00

20,000 450.00 4,00,000 9,000.00 15,00,000 33,750.00

F.SUKANYA SAMRIDDHI SCHEME
Sukanya Samriddhi Scheme is one of the most popular government schemes
launched by the Indian Prime Minister, shri.Narendra Modi. The scheme is aimed at
betterment of girl child in the country Sukanya Samriddhi Scheme has been launched to
offer a means of saving to the girl child in every family. The money saved via this scheme
is to provide for higher education of girl and for her wedding expenses. The scheme has
been accepted very well by the public since this is a great step towards providing
financial security and financial dependence to women.

FEATURES

• A legal guardian /natural guardian can open account in the name of girl child.
• A guardian can open only one account in the name of one girl and maximum two
accounts in the name of two different girl children.
• Account can be opened up to age of 10 years only from the date of birth .For
initial Operations of scheme, one year grace has been given.
• If minimum Rs 1000/- is not deposited in a financial year, account will become
discounted and can be revived with a penalty of Rs 50/- per year with minimum
amount required for deposit for that year.
• Partial withdrawal, maximum up to 50% of balance standing at the end of the
preceding financial year can be taken after account holder’s attaining age of 18
years.
• Account can be closed after completion of 21 years.
• Normal premature closure will be allowed after completion of 18 years/provided
that girl is married.

• CASH CERTIFICATES

• NATIONAL SAVINGS CERTIFICATE (NSC)

NSCs are cashable only on maturity. As the name it indicates. The period
 of maturity is 6 years. The amount payable to the investor is printed on the
backside of NSCs. One of the cardinal features of NSCs is that the investment
made under these qualities for rebate of Income Tax under Section 88. Even the
interest earned every year is deemed have been reinvested and thus qualifies for
tax rebate.

FEATURES

• Scheme specially designed for Government employees, businessman and other

salaried classes who are IT assesses
• No maximum limit for investment
• No tax deduction at source
• Certificates can be kept a collateral security to get loan from banks. Investment up
to Rs.1,00,000 per annum qualifies for IT rebate under section 80C of IT act
• Trust and HUF cannot invest. Interest is compounded 6 month
• The following interest accures on a certificate of Rs. 1,000/0 denomination after
the period mentioned.
• The interest occurring annually deemed to be reinvested will also qualify for Tax
rebate under section 88 of IT Act
• Such interest is deductable under Section 80-l of IT Act
• Loan can be taken from Banks on security of the certificates.

II.KISAN VIKAS PATRA (KVP)

Kisan Vikas Patra are like the NSCs, but there is no Income Tax Concession
for the investment made and also there is provision for premature encashment
after the specified period. The amount invested doubles on expiry of maturity
period. Procedures for issue,encashment, pledging etc, are as for nsc except to the
extent stated herein.

FEATURES

• The certificate may be purchased by an adult for himself or on behalf of a minor

or to a minor.
• The certificates can also be purchased jointly by two adults or a trust.
 • The certificates are available in the denominations of Rs.100, 500, 1, 000, 5, 000,
and 10,000 in all Post Office and Rs 50,000 in all head Post Office and selected
sub Post Office.
• There is no limit in investments.
• Investments doubles in 8 years 7 months
• NRI and HUF not eligible.
POST OFFICE SMALL SAVINGS SCHEME-INTEREST RATES- 4TH QUARTER OF FY
2016-17
(JAN TO MAR 2017)
Interest Rate
for 4th Quarter
of Fy 2016-
Small Savings 2017(w.e.f.01.J Frequency for Min Deposit Max Deposit Tenure
Scheme Name an.2017 Compounding (in rs) (in rs) (years)
To 31-Mar-
2017)
Sukanya 8.5% yearly 1,000 1.5 lakh 21
Samriddhi
account- Girl
Child Scheme
5 year sr.css 8.5% Quarterly &Paid 1,000 15 lakh 5

PPF 8.0% Yearly 500 1.5 lakh 15

Savings Deposit 4.0% Annually 20 No limit NA

1 year term 7.0% Quarterly 200 No limit 1

deposit

2 year term 7.1% Quarterly 200 No limit 2

deposit

3 year term 7.3% Quarterly 200 No limit 3

deposit

5 year term 7.8% Quarterly 200 No limit 5

deposit

5 year recurring 7.3% Quarterly 10p m No limit 5

deposit

5 year MIS 7.7% Monthly &paid 1,500 4.5 lakh 5

single A/C
 9 lakh joint
A/C
5 year NSC 8.0% Yearly 200 No limit 5

Kisan Vikas 7.7% yearly 1,000 No limit 9 yrs 4

Patra (KVP) months

TABLE 2.4

The rates of interest applicable on various small savings schemes for the quarter from Jan
to mar 2017 be effective from 1.1.2017 would be explained in the above table.2.4.

Kisan Vikas Patra now doubles in 112 months instead of earlier 110 months. This is due
to the reduction of interest rate from the earlier 7.8% to 7.7%. The new rate of interest on
SukanyaSamriddhi scheme is 8.5%.The new rate of interest on PPF would be 8%. The
interest rate on senior citizen savings scheme is 8.5%.The rate of interest on 5 year
national savings certificate is 8%.new interest rate on post office monthly income scheme
is 7.7%. The rate of interest on a 5 year post office recurring deposit would be 7.3%.

CHAPTER 3
AN EMPIRICAL ANALYSIS OF SIGNIFICANCE OF POSTAL
DEPARTMENT SCHEMES FOR THE MOBILISATION OF SAVINGS IN
RURAL AREAS
CUSTOMER SURVEY ANALYSIS

Customer opinion is very valuable in each and every market, customer

satisfaction or non -satisfaction should be taken into consideration through customer
surveys. 50 respondents were selected on a random basis, 10 each from 5 post offices in
the Trivandrum District for conducting the survey. They represent Government
employees, businessmen, self-employed, unemployed, others. The information was
collected by the issue of questionnaires, while surveying we came to know many,
suggestions that the customers wanted to give and their opinion regarding different
customer services by Postal Saving Schemes. All their suggestions and opinions towards
 customer service have been considered. This type of survey analysis is helpful to
understand the customer’s income group, occupation, preference and expenditure
permonth on postal services and other opinion about the Savings Schemes .However, the
customer survey analysis is limited to village area in Trivandrum District.

TABLE 3.1
CLASSIFICATION ON THE BASIS OF GENDER
GENDER NUMBER OF PERCENTAGE
RESPONDENT

Male 25 50
Female 25 50
TOTAL 50 100

(Source: Primary data)

The above analysis shows that of the 50 respondents50%each are males and
females.Thus this shows that both men and women have the saving nature. So this table
showing equal response to the postal savings schemes in our study which is different
from the rest of India where males are given more preference in earnings and savings.

TABLE 3. 2
CLASSIFICATION ON THE BASIS OF AGE
AGE GROUP NUMBER OF PERCENTAGE
RESPONDENT
Below 30 6 12

30-40 14 28

40-50 14 28

Above 50 16 32

TOTAL 50 100

(Source: primary data)

If we go through the table we can find that 32% of the peoples above the age
groupof 50 showing more preference towards postal savings. Thus saving nature is more
among the elder persons.The reason is they can withdraw the necessary amount for the
day to day transactions, daily from the post office saving banks. In addition to this elder
people get more allowance than the other age groups.

TABLE 3 .3
TYPES OF FAMILY
TYPES OF NUMBER OF PERCENTAGE
FAMILY RESPONDENT
Nuclear family 48 96

Joint family 2 4

TOTAL 50 100

(Sou(so(source : primary data)

The above analysis shows that 96%of the families are nuclear type families. Thus
in the rural area also joint family type is disintegratingbecause rural people are imitating
the lifestyle of urban people and also there is a trend towards industrialization and
urbanization in rural areas.

GRAPH 3.1

TABLE 3.4
MARITIAL STATUS
MARITIAL STATUS NUMBER OF PERCENTAGE
RESPONDENT
Married 41 82
Unmarried 8 16
Widow 1 2
TOTAL 50 100
(Source: Primary Data)

Our study shows that people either married or unmarried or widowed have the
 habit of saving. Because they know saving is necessary for meeting future needs.

TABLE 3.5
EDUCATIONAL NUMBER OF PERCENTAGE
QUALIFICATION RESPONDENT

Pre Primary 3 6
Primary 9 26
Secondary 13 14
Higher Secondary 7 14
Undergraduate 6 12
Illiterate 12 24

TOTAL 50 100

EDUCATIONALQUALIFICATION

(Source: Primary Data)

 Our analysis shows that people with different educational qualification save with
the postal saving banks.24% of the people who save are illiterate which shows the
importance of postal saving banks in rural areas. From the survey we came to know that
these illiterate people are not aware of the all the schemes of the postal saving bank. So
the necessary awareness is to given.

GRAPH 3.2

TABLE 3.6
OCCUPATIONALSTATUS
OCCUPATIONAL NUMBER OF PERCENTAGE
STATUS RESPONDENTS
Government Employee 6 12
Business 8 16
Self Employed 7 14

Unemployed 10 20

Others 19 38

TOTAL 50 100
(Source: primary data)

This table 3.6 shows the occupational status of respondent. 38% of respondents are
engaged in other activities which include Mahatma Gandhi National Rural Employment
Guarantee Scheme. This scheme is mainly provided for the benefit of rural people. In our
study the ‘others group’ had moresavings compared to other occupations.

GRAPH 3.3

TABLE 3.7
MONTHLY INCOME
MONTHLY INCOME NUMBER OF PERCENTAGE
RESPONDENT
Below 5000 16 32
5000 to 10000 18 36
10000 to 15000 11 22
Above 15000 5 10
TOTAL 50 100
(Source: Primary data)

The table shows that people belonging to different income groups ranging from
below 5000 to above 15000have the habit of saving.Many respondents have lot of needs,
 so their saving potential is less. For them it is necessary to save and deposit money with
high security and sure income with postal financial schemes which is near to their place
of residence.

GRAPH 3.4

TABLE 3.8
MONTHLY SAVINGS
MONTHLY NUMBER OF PERCENTAGE
SAVING RESPONDENTS
100 to 500 15 30
500 to 1000 20 40
1000 to 5000 10 20
Above 5000 5 10
TOTAL 50 100

(Source: primary data)

This table shows only 10% of respondents save above Rs.5000 per month. In rural
areas people with higher income is less. But they save according to their capacity. Post
office also provided different savings schemes according to the capacity of people. They
offer very small amounts of saving scheme with high interest.
 GRAPH 3.5

TABLE 3.9.
AWARENESS ABOUT POSTALSERVICES
AWARENESS FACTORS NUMBER OF PERCENTAGE
RESPONDENT
Visiting to Post office 21 42
Advertisement 2 4
Friends and relatives 26 52
Others 1 2
TOTAL 50 100
(Source: primary data)

Awareness about the schemes and the benefits of schemes is not popularized in
the rural areas. People come to know these schemes from their friends and relatives.

TABLE 310.
AWARENESS OF POSTAL SAVINGS BY DIFFERENT MEDIA
MEDIA NUMBER OF PERCENTAGE
RESPONDENTS
Magazine 1 2
Television 3 6
Agents 24 48
Newspaper 22 44
OTHERS 50 100
 (Source: primary data)

The schemes and their benefits are made known to the people through the agents
sent from the postal department. The agents can be post man or specialized agents from
the postal department. Agents play a vital role in mobilizing savings by rural peoples.
Both print and electronic media plays a small role in spreading schemes and their
benefits.

GRAPH 3.6

TABLE 3.11
POSTAL SAVINGSCHEME PREFERRED BY RESPONDENTS
SAVING SCHEME NUMBER OF PERCENTAGE
RESPONDENTS
Saving Bank Account 17 34
Recurring Deposit 12 24
Senior citizen Saving 3 6
Time Deposit 8 16
Sukanya Samriddhi Account 10 20
TOTAL 50 100
(Source: primary data)

This survey revealed that 34% of the respondents preferred savings bank account.
Because they can withdraw money daily or even twice a day from the post office saving
bank to meet their recurring needs. Hence majority of the people

prefer savings banks account. Moreover they can also deposit any amount of money as
they like. Other saving scheme does not have these benefits.

GRAPH 3.7

TABLE 3.12
SAVINGS DEPOSITED TOWARDS POSTAL SAVINGS SCHEMES

FACTORS NUMBER OF PERCENTAGE

RESPONDENTS
Agents 16 32
Post office 22 44
Friends and relatives 12 24
Others 0 0
TOTAL 50 100
(Source: primary data)

Savings can be deposited by the people themselves in the post office or through
the agents or through friends and relatives. This is convenient for the rural people to
deposit saving if they have any inconvenience in depositing the amount by themselves.
Agents from the post office also go for door collections. Its service for people is very
 large .Most of the post office service is very smooth. Their approach towards people is
very good.

TABLE 3.13
PERIOD OF POSTAL SAVING SCHEME

PERIOD NUMBER OF PERCENTAGE

RESPONDENTS
Regular 18 36
Occasional 32 64
Total 50 100

(Source: primary data)

People can deposit any amount according to their convenience either daily weekly
or monthly.36% people deposit money regularly on a daily basis where as 64% deposit
money occasionally as and when they have money to deposit.

TABLE3.14.
REASONS FOR PREFERRING POSTAL SAVINGS SCHEMES
REASONS NUMBER OF PERCENTAGE
RESPONDENTS
Fund to meet future 33 66
expenditure
Income tax benefits 5 10

Pressure of agents 12 24

TOTAL 50 100
 (Source: primary data)

This table 3.14 shows that 66% of people preferred the scheme to meet future
expenditure. Majority people preferred postal saving scheme for the fund to meet future
expenditure people also save to get income tax rebate. Postal service provided better and
easy transactions.

GRAPH 3.8

TABLE 3.15.
QUALITY OF SERVICES
QUALITY NUMBER OF PERCENTAGE
RESPONDENTS
Excellent 3 6

Good 45 90

Poor 2 4

TOTAL 50 100

(Source: primary data)

90% are satisfied with the performance of the postal savings bank. Yet4% of the
respondent feels that the services are not adequate.in order to increase the postal saving
schemes its services have to be enhanced.
 TABLE 3.16.
FEATURES OF POSTAL SAVINGS SCHEME
FEATURES NUMBER OF PERCENTAGE
RESPONDENTS
Tax Free Interest 5 10
Premature 4 8
Enhancement
Lead Facility 26 52
Regular Income 15 30
TOTAL 50 100

(Source: primary data)

People save with the postal savings bank because it offers many features like tax
free interest, premature enhancement etc.52% of the people say that they can withdraw
the savings according to their lead facility.

GRAPH 3.9

TABLE 3.17.
CHOOSING OF POST OFFICE INSTEAD OF BANKING.
REASONS NUMBER OF PERCENTAGE
RESPONDENTS
Nearest 13 26
Rate of interest 10 20
Easy transactions 15 30
Customers services 12 24
especially for uneducated
people
TOTAL 50 100

(Source: primary data)

People deposit with postal saving scheme because of many facilities like nearness,
higher rate of interest, transactions are easier and the customer services are good
especially for the uneducated people. The service provided by post office iseasier than
banking. In post office the procedure are simpler than the banks. Postal service is very
helpful mainly for illiterate peoples. So majority of people choose postal saving schemes.

GRAPH 3.10

TABLE 3. 18.
DIFFERENCE BETWEEN POST OFFICE ACCOUNT AND
BANKING ACCOUNT
DIFFERENCES NUMBER OF PERCENTAGE
RESPONDENTS
Security for Cash 8 16
Rate of Interest is more 13 26
Both 21 42
No Reduction in the amount 16
deposited For Long years 8
TOTAL 50 100

(Source: primary data)

In postal saving scheme rate of interest is more than any other financial
institutions, it is more beneficial for the people. From the survey it was known that even
if the amount deposited for long years there will no reduction in the principle amount but
in their opinion banks will deduct certain amount from the principle. Because of these
reasons they prefer postal saving scheme.

GRAPH 3.11.

CHAPTER 4

SUMMARY,CONCLUSIONS, FINDINGS AND SUGGESTIONS

The first chapter provides a brief introduction of the topic.it provides the statement
of the problem, relevance of the study, objectives, hypothesis, methodology and review of
the previous studies conducted in this area. This chapter made an introduction into the
significance of postal department for the mobilization of savings in rural areas in
Trivandrum district. The second chapter deals with the overview of the postal services in
India and various savings schemes and their features provided by postal department.

In the third chapter we analyzed the primary data of the respondence in

Trivandrum. The primary data analyzed the datathus collected were dealing with the
gender, age composition, educational qualification, marital status, occupational status,
monthly savings, awareness about postal service, postal saving preferred by the
customers,

The Indian postal network represents India’s largest and widespread public
infrastructure with 1, 54,000offices (of which 1, 16,000 are in rural areas) and over one
million employees. India post handles over 16 million mail items and 110 million money
orders per year and administers over 114 million saving account- a reflection of its
extensive experience with high critically transactions. The investors about saving
schemes will have a significant impact on the saving behavior of people.For example,
people who have positive perception about the scheme in which they have invested will
continue to invest in the same scheme. Very often they will start investing on other
schemes from the same institutions. People with positive perception might tell good thing
about the schemes to other people.

The post office has traditionally served as a financial institution for millions of
peoples in the rural areas. It plays a vital role in rural areas for mobilizing savings. It
connects these rural areas with the rest of the country and also provides

banking facilities in the rural areas. Small income group have a great faith in, very clear
perception and positive approach towards post office schemes. Strong support of union
government, rare case of malpractices, frauds, satisfactory return are the main reasons
behind it. But still it is necessary to go for certain changes and bring professional culture
in the department. It is also necessary to increase financial awareness about postal
schemes, competitiveness, fast decision making, marketing activities and strategic
planning to fight against private institutions. Even department of post needs many
technological, social, cultural, and economic changes with these changes once again
department of post can create a monopoly in Indian financial mark.

As this report shows, the government takes the post office network seriously; indeed it
provides 150 million each year to support it. Some local authorities are also taking
commendable steps to support their post office network directly. But financial support is
not enough. Post offices have to provide the services their communities need; whether
these are central or local government services, or fundamentally private services, such as
banking, or even access to retail, much more attention needs to be paid to the potential of
the post office in helping the government deliver its aims. The post office network
depends on very many private providers; their needs must also be considered. It is a
difficult balancing act, but it is one that has been performed for nearly 400years. Having
looked in depth at the issues confronting the post office network we are convinced that,
given sufficient political will from both central and local government and a real
determination to sustain and develop a priceless national asset, there is no reason why the
network cannot flourish again, serving the whole nation in a uniquely valuable way. The
passions the network change programme provoked showed that communities value their
post offices – now it is time for politicians to step up to the mark and give post offices
their wholehearted practical support. We conclude that post offices can flourish again –
and must be allowed to do so.

FINDINGS
• Majority of the respondents are at the age group of above 50.

• Both males and females have saving habit.

• Most of the respondents belong to others category than Govt. employee.

• About 52 % respondents where aware about postal service by friends and

relatives.

• At the age below 30 have only 12 % have saving habit.

• 66 % of respondents preferred postal saving scheme for their to meet future

expenditure.
 • 30 % of respondentschoosingpostalaccount instead of bank account because of
easy transactions

• Most of the respondents are satisfied on the postal services.

• Out of 50 respondence30 percentage of respondents preferring Savings Bank

Account.

SUGGESTIONS
• More awareness must be created among the people about the schemes introduced.
• The rate of interest offered by the post office should be increased so as to attract
more people.
• Tax benefits are attached only to a few schemes in post office; it can also can be
extended to many schemes.
• Lack of advertisement in postal services, the government has to take necessary
steps to adopt advertisement strategy in wider range.
• Latest technology should be incorporated in post office to serve the public in an
efficient manner , thereby reducing the transaction time
• It has to provide ATM facilities, so that saver can draw money when and where
they require.
 • Improve communication with customers.
• To provide better services, post office has to be computerized and are post
officehave to increase working hours.
• Separate sections should maintain in the post office
• There should be a kind and humble response from the staff of postal saving
schemes.
• It should clearly indicate the terms and conditions of the service to the customers.
• Provide more varities of savings schemes to satisfy the needs of different
customers.

BIBLIOGRAPHY
• Abdus Salam and Kulusum Umma, (2004) “savings behavior in India: an
empirical study”, the Indian economic journal, volume 50, No.1, p.77.

• AICC Economic and Political Research Department (1956) Report of the

congress committee.

• Augustine Gavini and Athma Prashanth(1999) Small Saving Scheme of post

office , need to be known more, southern economist 37(20)(13-64).

• B. Karthikeyan (2001) Small investors’ perception on post office small saving

scheme 6PhD thesis Madras University, Tamilnadu, India.

• Design Gnana (2006) Investors perception towards equity share investment, An

empirical study

• Jain Dr. Dhiraj and Kothari Ms. Ruhika (2010) Investors attitude towards post
office saving deposit scheme –Empirical study in Udaipur district Rajasthan,
 International Journal of Marketing and Technology, vol.2.

• K Chandrasekhar and K.T. Geetha. (1996) National Savings and Economic

Growth, Southern Economist.P.13.

• NCAER, (1961), ‘Savings in India’, New Delhi.

• Panikar, P.G.K. (1970) rural saving in India, Bombay.Somaya publications.

• R.Ganapathi and S Anbu malar (2010) ‘investors attitude towards post office
schemes’ BVIMR management edge, Vol.3, No. 2, Pp. 26-45.

• Sarupria Shantilal, (1963) “Individual Savings in an Undeveloped Economy-

India”, a case study the economic weekly, June 22, Pp.995-1001.

• Scher, Mark (2001) “Postal Savings and the Provision of Financial Services”,
policy issues and Asian experiences in the issue of postal infrastructure for
savings mobilization, Department of economic and social affairs discussion paper
no.22.

• S. Kallavathy, (2009) savings and investment behavior of salaried people with

special reference to Coimbatore city, unpublished thesis, Bharathiar University,
Coimbatore.

• Tamilkodi, A.P.P.,(1983),’small savings schemes in Tamilnadu: a trend study

(1970-80)’,unpublished thesis, Universityof madras, Tamilnadu.

• V.K. Somasundaram, (1998),’a study on savings and investment pattern of

salaried class in Coimbatore district’, unpublished thesis, Bharathiyar University,
Coimbatore &Tamilnadu.

REPORTSAND JOURNALS
• Government of India, ministry of finance, economic survey, 1995.
• Kerala State Planning Board Saving Investment Survey of Kerala,
Thiruvananthapuram, 1981.
• National Council of Applied Economic Research, “Saving and Investment
Behaviour of Rural Households in India – A Longitudinal Study – 1970-71 -1981-
82”, New Delhi, 1986.
• National savings institute, Government of India, Ministry of Finance – Annual
Report 2014- 2015.

WEBSITES
 • www.indianpost.gov.in
• www.trivandrumpost.gov.in
• www.wikipedia.com
• www.google.com
• www.postalsavingschemes.gov.in.

INTERVIEW SCHEDULE.

• NAME:

• AGE:

• SEX:
• ADDRESS:

• TYPE OF FAMILY:

• MARITAL STATUS

(a)Married (b) Unmarried (c) Widow

7) EDUCATIONAL QUALIFICATIONS

(a)Pre-primary (b) Primary (c) Secondary

(d) Higher secondary (e) undergraduate (f) illiterate

8) OCCUPATIONAL STATUS

(a) Govt. employee (b) Business (c) Self-employed

(d) Un-employed (e) other specify

9) MONTHLY INCOME

(a)Below 5,000 (b) 5, 000- 10,000

(c) 10,000- 15000 (d) Above 15,000

10) Do you have any saving nature?

(a)Yes (b) No

11) How much you save monthly?

(a) 100-500 (b) 500-1000 (c) 1000-5000 (d) Above 5000

12) How did you know about postal services?

(a)Visiting to Post office (b) Advertisement (c) Friends and relatives

(d) others

13) Have you heard about Postal Savingsscheme?

(a)Yes (b) No

14) Awareness of postal saving scheme through different media?

(a)Newspaper (b) Magazine (c) Television (d) Others

15) How many accounts do you have?

(a)1 (b) 1-2 (c) 3

16) Which Postal saving scheme you preferred?

(a) Savings Bank (b) Recurring deposit (c) Time deposit

(d) Suganya Samriddtie (e) Senior citizen savings.

17) Factors influencing you towards postal saving scheme?

(a)Agents (b) Advertisement (c) Post Office (d) other specify

18) Period of paying Postal Saving scheme?

(a)Regular (b) Occasional

19) Reasons for preferring Postal saving schemes?

(a) Fund to meet future expenditure (b) To availing income tax

(c) Pressure of agents (d) Other specify

20) Features of PostalOffice saving scheme?

(a)Tax free interest (b) Premature entrance

(c) Lead facility (d) Regular income

21) Your periodicity of savings?

(a) Below 1yrs (b) 1- 3 yrs.

(c) 3-5 yrs. (d) 5 to above

22) Why are you choosing Post Office instead of Banking?

(a) Nearest (b) Satisfaction (c) Easy Transaction

(d) Customer services especially for illiterate peoples

23) What is the difference between post office account and bank account?

(a)Security for cash (b) Rate of interest is more (c) both

(d) No reduction in account for long years

24) Quality of services

(a)Excellent (b) good (c) poor

25) Any Problem in availing the service of Postal Saving Scheme?

(a)Yes (b) No

26) Did you satisfied about Postal Services?

(a)Yes (b) No
27) On the whole, do you think that the technology will improve the postal Services?

(a) good (b) above average (c) below average (d) poor

28) How far you can increase your savings with the help of Post Office?

(a) high savings (b) low savings (c) poor

29) Would you like to have any new savings scheme in Postal Sector?

(a)Yes (b) No

30) If yes, give your suggestion.