PROJECT REPORT

ON

STUDY OF INDIAN POSTAL SERVICES Submitted For the Partial fulfillment of

Master Of Business Administration

Submitted By : Anurag Shukla 10001117010 IVnd Sem. MBA (International Business) Institute Of Management Sciences, Lucknow University

ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the possibility to complete this project. Firstly I want to thank Post Office. For giving me permission to complete this project, . I would like to thank Mrs. Shruti Aurora. For all her support and guidance, without her support I would to not be able to complete this project. I am deeply indebted to my faculty guide Dr.Avinash Bajpai from Institute of Management and sciences, whose help, stimulating suggestions and encouragement helped me in all the time of research and for completing this project. Specially, I would like to give my special thanks to my PAPA friends and colleagues for their valuable suggestions and thoughts for editing this project. (Anurag Shukla)

DECLARATION I hereby declare that research report entitled Study of Indian Postal Services is my original work done on behalf of Institute of management sciences, Lucknow under the guidance of Mentors Mrs.Shruti Aurora and Dr.Avinash Bajpai.

I have not submitted this research report to any other organization/institution for any type of materialistic goal/reward or incentive.

(Anurag shukla)

CONTENT

PARTICULERS

PAGE NO

1. Acknowledgement . 02 2. Declaration..03 3. Introduction.05 4. Vision And Mission06 5. Objective..07 6. History..09 7. General Profile Of Organization...11 8. Postal Services.12 9. PPF...18 10. SCSS.19 11. RD..20 12. Business Development Activities..21 13. New Products And Services Introduced22 14. Customer Care..24 15. Core Banking Solution.25 16. Comparison With Banks..29 17. SWOT Analysis32 18. Ideas And Details..34 19. Suggestions.35 20. Conclusion36 21. Reference And Bibliography..37

Introduction
Indian Postal Service Department of Posts:

Type Founded

Agency of the Government of India 1764

Headquarters New Delhi, India Key people Industry Employees Website Radhika Doraiswamy, Director General Postal system 520,191 (As of 2007)[1] 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 post-Independence. Owing to this far-flung reach and its presence in remote areas, the Indian postal service is also involved in other services such as small savings banking and financial services

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 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.

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

A.Raja & Jyotiraditya Madhavrao Scindia, launching the new logo for India Post on 23 Sept 2008, at New Delhi 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. 9

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

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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 General, Department of Posts and the Chairman of the Postal Services Board. 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.

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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 12

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-Post-

Documents 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.

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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

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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.

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 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 Two Years Three Years Five Years

8.2% 8.3% 8.4% 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.

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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.

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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.

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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.

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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.

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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 200304, 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.

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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/PrudentialICICI/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

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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.

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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) (ii) (iii) (iv) (v) Whole Life Assurance (Suraksha) Convertible Whole Life Assurance (Suvidha) Endowment Assurance(Santosh) 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: (i) (ii) (iii) (iv) (v) Whole Life Assurance (Gram Suraksha) Convertible Whole Life Assurance (Gram Suvidha) Endowment Assurance (Gram Santosh) 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.

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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.

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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.

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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.

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DB Analyzer 34 Points of exercise SB/MIS/PPF/RD/TD/SCSS 1.Index with zero account no. 2.Index entries with open date 01.01.1900 3.Ledger entries prior to account open date 4.Index entries different PO code 5.Accounts without names of depositors 6.Account numbers with blank account type 7.Account no. without previous year interest entries 8.Ledger entries with zero account no. 9.Ledger entries with LOT date 01.01.1900 10.Account no. with zero Nomination no. 11.Ledger entries with different PO code 12.Account without address of depositors 13.Account no. with blank account status 14.Accounts for which Service charge have been deducted 15.Index entries without ledger entries 16.MIS discrepancy 17.Accounts with wrong amount in SI register 18.Accounts having no ledger entries 19.Accounts with fractions 20.Default entries discrepancy 21.Accounts with different months counts 22.Accounts with more than one entry in SI register 23.Ledger entry discrepancy 24.RD bulk list not posted 25.Paid/Unpaid discrepancy 26. Accounts for which interest calculated is zero 27. Accounts with difference of amount in index & ledger 28. Account no. with SI without previous quarter interest withdrawal 29. accounts with SI which TDS deducted automatically ( 15G/15H not submitted 2008-09) 30. Account no. for which TDS exemption has been given 31. Account nos. with incomplete ledger entries 32. Account nos. with withdraw type but not in SI entries 33. Account nos. with SI having withdrawal entries with future dates 34. Account nos. in SI register having closed/transferred SB accounts.

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Comparison

Post office Departme nt

Stat Bank

Punjab Bank

Type Founded Head Quarters Key people Industry

Agency of the Government of India 1764 New Delhi, India Radhika Doraiswamy, Director General Postal system

Public (BSE, NSE:SBI ) & (LSE:SBID) Kolkata, 1806 (as Bank of Calcutta) Mumbai 400 021 India Om Prakash Bhatt,Chairman Banking. Insurance. Capital Markets and allied industries Loan, Credit card,Savings,Invest ment SBI LIC

Public (BSE, NSE:PN B) Lahore, 1895 New Delhi, India ---

Product

Employe es Branch Website

Post card, postal stamp, Speed post,epayment.logistic payment; Business post ,Direct post,PLI,Money order,PPF,NSC,KVP,S BA, MIS,etc 520,191

Banking. Insurance. Capital Markets and allied industries Loan, Credit card,Savings,Invest ment PNB LIC

205,896

--4,904 www.pnbindia.com

155,333 16000 http://www.indiapost.go StateBankofIndia.co v.in/ m

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Bank deposits vs 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.

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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. A postal time deposit fetches annual interest rates in the range of 6.25 to 7.5 per cent. A bank FD offers annual interest rates in the range of 3.75 per cent to 7.27 per cent. Senior citizens enjoy the privilege of earning higher interest rates on bank FDs, ranging from 4.25 per cent and 7.95 per cent. In the post-office scheme your investment grows at a pre-determined rate with no risk as it is backed by the government.

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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 32

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.

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Ideas &Details 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

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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 lessproductive. 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.

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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

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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

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