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 10^th Plan.  Since an assessment of these schemes indicates the need for restructuring them, no targets were given in 2004-05 for opening PSSKs.

            Efforts are also underway to optimize the retailing capacity of the network.  One major initiative taken up in the current year is the retailing of non-life insurance products through Post Offices.  The Department has entered into an agreement with the Oriental Insurance Company to function as their Corporate Agent for marketing identified non-life products.  This Scheme was launched on a pilot basis through select Post Offices in 2 districts each of 7 Circles.  It is being gradually expanded, after providing the requisite training to other Circles.

Postal Services

            Postal operations at the post office encompass the entire gamut of the basic postal services which interalia include:

i)	Sale of stamps and stationery
ii)	Booking of registered articles
iii)	Booking of insured articles
iv)	Booking of value payable articles
v)	Remittance of money through money orders and postal orders
vi)	Booking of Parcels

            Traditionally, these services were being provided at manually operated counters.  Considering the vital need for providing the benefit of technology to the customers, the counter operations are now being progressively computerised to provide a greater range of service to the customer from a single window leading to services being more responsive, and error free.

Mail Operations 

            Mail processing, transmission and delivery are the core activities of the Department.  Mail is collected from 0.60 Million letter boxes in the country.  This is processed by a network of 466 Railway Mail Service Offices, and conveyed by road, rail and airlines all over the country.

Philately

The philatelic activities of India Post include:-

i)	Designing, printing and distribution of special/commemorative postage stamps and other postage stamps/ service postage stamps.
ii)	Items of postal stationery like Envelope, Inland Letter Card, Postcard, Aerogram and Registered Cover etc.
iii)	Monitoring and promotion of Philately/conduct of philatelic exhibitions within the country, participation in international and world exhibitions
iv)	Management of the National Philatelic Museum, Dak Bhavan.

 

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.           

Information on Financial Services Division

Post  Office Savings Bank

 The Post Office Savings Bank (POSB) constitutes the mainstay of the Financial Services provided by the Department of Posts. The Post Office Savings Bank is the oldest and largest banking institution in the country.  It operates more than 20.50 crore 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.     Savings Bank facilities are provided through a network of more than 1,54,000 post offices.  There are number of schemes provided by 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 Senior Citizens’ Savings Scheme. 

The salient features of all these Small Savings Schemes are as under :

SCHEME	Interest Payable, Rates, Periodicity etc.	Investment Limits and Denominations	Salient features including Tax Rebate
1. Post Office Savings Account	3.5% per annum on individual/ joint accounts.	Minimum Rs. 50/-. Maximum Rs. 1,00,000/- for an individual account. Rs. 2,00,000/- for joint account.	Cheque facility available.  Interest Tax Free.
2. 5-Year Post Office Recurring Deposit Account	On maturity Rs. 10/- account fetches Rs. 728.90/-. Can be continued for another 5 years on year to year basis. Rate of interest 7.5% (quarterly compounded)	Minimum Rs. 10/- per month or any amount in multiples of Rs. 5/-. No maximum limit.	One withdrawal upto 50% of the balance allowed after one year. Full maturity value allowed on R.D. Accounts restricted to that of Rs. 50/- denomination in case of death of depositor subject to fulfillment of certain conditions. 6 & 12 months advance deposits earn rebate.
3. Post Office Time Deposit Account	Interest payable annually but calculated quarterly. Period          Rate 1 yr. A/c      6.25% 2 yr. A/c      6.50% 3 yr. A/c      7.25% 5 yr. A/c      7.50%	Minimum Rs. 200/- and in multiple thereof. No maximum limit.	Account may be opened by individual. 2,3 & 5 year account can be closed after 1 year at discount. Account can also be closed after six months but before one year without interest. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
4. Post Office Monthly Income Account	8% per annum payable i.e. Rs. 80/- will be paid every month on a deposit of Rs. 12000/-.	In multiples of Rs. 1500/- Maximum Rs. 4.5 lakhs in single account and Rs. 9 lakhs in joint account.	Maturity period is 6 years. Can be prematurely encashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.) A bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts opened on or after 8.12.07
5. 15 year Public Provident Fund Account	8% per annum (compounded yearly).	Minimum Rs. 500/- Maximum Rs. 70,000/- in a financial year. Deposits can be made in lumpsum or in 12 installments.	Deposits qualify for deduction from income under Sec. 80C of IT Act. Interest is completely tax-free. Withdrawal is permissible every year from 7th financial year. Loan facility available from 3rd Financial year. No attachment under court decree order.
6. Kisan Vikas Patra	Money doubles in 8 years & 7 months. Facility for premature encashment. Rate of interest 8.4% (compounded yearly)	No limit on investment. Available in denominations of Rs. 100/-, Rs. 500/-, Rs. 1000/-, Rs. 5000/-, Rs. 10,000/-, in all Post Offices and Rs. 50,000/- in all Head Post Offices.	A single holder type certificate may be issued to an adult for himself or on behalf of a minor or to a minor, can also be purchased jointly by two adults
7. National Savings Certificate (VIII issue)	8% Interest compounded six monthly but payable at maturity. Rs. 100/- grows to Rs 160.10 after 6 years.	Minimum Rs. 100/- No maximum limit available in denominations of Rs. 100/-, 500/-, 1000/-, 5000/- & Rs. 10,000/-.	A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor. Deposits quality for tax rebate under Sec. 80C of IT Act. The interest accruing annually but deemed to be reinvested will also qualify for deduction under Section 80C of IT Act.
8.Senior Citizens Savings Scheme	9% per annum, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December	There shall be only one deposit in the account in multiple of Rs.1000/- maximum not exceeding rupees fifteen lakh.	Maturity period is 5 years. A depositor may operate more than a account in individual capacity or jointly with spouse.  Age should be 60 years or more, and 55 years or more but less than 60 years who has retired on superannuation or otherwise on the date of opening of account subject to the condition that the account is opened within one month of receipt of retirement benefits. Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years 1% interest. TDS is deducted at source on interest if the interest amount is more than Rs.10,000/- p.a.  The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Electronic Money Order

Electronic Money Order (eMO) launched on 10.10.2008

It is a system that facilitates remittance of MOs electronically, for which post offices should have Connectivity by WAN/ Broadband.  These Connected HOs and SOs will transmit eMOs for other connected HOs and SOs (including SOs and BOs in account with them).

Salient Features

The tariff structure would be the same as that for ordinary MO with the following features:

*        Messages in standard Codes

*        Tracking facility through 18 digit PNR No

*        Bulk booking of eMOs on the basis of lists provided by the Bulk Remitter; Uploading data available in soft copy.

*        Payment of bulk eMOs through consolidated list

*        MIS for sender and payee in the case of bulk booking / payment.

*        After payment, the post office of payment to upload payment particulars to the central server. Payment details for non-connected post offices to be updated by its Head Post Office.

*        Payment information can be obtained through SMS.

Instant Money Order (iMO)

Instant Money Order (iMO) is an online domestic money transmission service intended for a market clientele requiring instant money remittance. This service enables the customer to receive money in minutes from any of the post offices providing iMO service. The service was introduced on 20th January 2006.  Under this service, a person can send amount from Rs. 1000/- up to Rs. 50,000/- in one transaction. Money will be disbursed to the payee at any of the iMO Post Offices in India other than the office of booking on presentation of 16 digit iMO number and photo identity proof. At present iMO service is available from more than 2100 locations across the country.

International Money Transfer Service

This service, operated in association with Western Union Financial Services International, provides the customers the facility of receiving remittances from 205 countries and territories on a real time basis. The service is currently available more than 8500 post offices.

Electronic Clearing Service (ECS)

          The Electronic Clearing Service (ECS) provides an alternative method of effecting bulk payment transactions like periodic (monthly/quarterly) payments of interest/salary/pension by Banks/Companies/Government Departments. The transactions under this scheme move from a single User source (i.e. Banks/Companies/Government Departments) to a large number of Destination Account Holders (Customers/Investors). This scheme obviates the need for issuing and handling paper instruments and thereby facilitates improved customer service by the Banks and Companies/Corporations/Government Departments effecting bulk payments.

          The Electronic Clearing Service is being offered in the Department of Posts in connection with payment of monthly interest under Monthly Income Scheme (MIS), which offers depositors the facility of getting MIS interest automatically transferred and credited into their SB account on due date at the designated Bank of their choice. It is a value addition to MIS interest payment, which provides more comfort level to MIS account holders, as it eliminates the requirement for issuing and handling paper instruments. Currently, the service is available in the Department of Posts at following 36 locations:

1. Ahmedabad (Gujarat)	19. Hubli (Karnataka)
2. Bangalore (Karnataka)	20. Jabalpur (MP)
3. Bhubaneshwar (Orissa)	21. Jodhpur (Rajasthan)
4. Kolkata (West Bengal)	22. Kozhikode (Calicut) (Kerala)
5. Chandigarh (Punjab)	23. Nashik (Maharashtra)
6. Chennai (TN)	24. Panaji (Maharashtra)
7. Guwahati (Assam)	25. Pondicherry (TN)
8. Hyderabad (AP)	26. Sholapur (Maharashtra)
9. Jaipur (Rajasthan)	27. Surat (Gujarat)
10. Kanpur (UP)	28. Thrissur (Kerala)
11.Mumbai Maharashtra	29. Tiruchirapally (TN)
12. Nagpur  (Maharashtra)	30. Tirupur (Kerala)
13. New Delhi	31. Shimla (HP)
14. Patna (Bihar)	32. Siliguri (West Bengal)
15. Thiruvananthapuram (Kerala)	33. Burdwan (West Bengal)
16. Baroda (Gujarat)	34. Durgapur (West Bengal)
17. Dehradun (Uttrakhand)	35. Raipur (Chattisgarh)
18. Gwalior (MP)	36. Ranchi (Jharkhand)

Note:  For further details, Post Offices at these locations may be contacted.

Distribution of Pension Products of ICICI Prudential Life Insurance Company Ltd.:

Department of Post has tied-up with ICICI Prudential Life Insurance Company Ltd. in September, 2008 to retail their products through select Post Offices on Referral Model.  Initially, Post Offices started distributing Pension Products only.  Now, products of more solution categories such as Education, Health & Protection and Wealth Creation have also been added in the distribution basket.  Currently, these products are available from all the 817 Head Post offices of the country.

Note:  For further details, any Head Post Office may be contacted.

Retailing of Non-life Insurance Products of Oriental Insurance Company

Department of Posts is retailing following 15 Oriental Insurance Company’s Products through its post offices in all over the country:-

1.	Personal Accident Insurance
2.	Janta Personal Accident Insurance
3.	Mediclaim Insurance
4.	Householders Insurance
5.	Shopkeepers’ Insurance
6.	Sweet Home Insurance
7.	Fire Insurance
8.	Cattle Insurance
9.	Kissan Agricultural Pumpset Insurance
10.	Rajrajeshwari Mahila Kalyan Bima Yojna
11.	Bhagyashree Child Welfare Policy
12.	Universal Health Insurance
13.	Kissan Package Policy
14.	Nagrik Suraksha Policy
15.	Jan Arogya Policy

 

Details about the above Oriental Insurance Company can be obtained from the nearest Post Office.

Postal Life Insurance

            Postal 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)
v)	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: -
i)	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)
v)	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.

International Relations

            India Post is a member of the Universal Postal Union (UPU) which is  a specialized agency of the United Nations Headquartered at Berne, Switzerland  with 190 member countries.  India is its member since 1876 and holds an important position in the various organs of the UPU viz. – Congress, Council of Administration, Postal Operations Council and International  Bureau. India Post offers letter mail, parcel, money order and international speed post services to its customers.

Customer Care

India 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 there 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 computerised customer care centres to handle public grievances online. The Department also provides the facility of online registration and response to complaints at its website www.indiapost.gov.in .