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INTRODUCTION The department of posts functioning under the brand name India post is a

government operated postal system in India.The Indian postal services with 1,55,335

post offices approximately is the most widely distributed post offices system in the

world. The large numbers are a result of a tradition of many disperatepostal systems

which were unified in the Indian union post independence.

For more than 15 years ,the department of posts has been the bac!bone of the

countrys communication and has played a crucial role in the country socio"

economic development. It touches the lives of Indian citi#ens in many ways"

1$ %elievering mails

&$ 'ccepting deposits under small savings schemes

3$ providing life insurance under postal life insurance and rural postal insurance and

(rovides retail services li!e"

a$)ill collection

b$sale of forms etc.

The department of post also acts as an agent of government of India in

discharging other services for citi#ens such as *ahatma +andhi ational -ural

mployment +uaranter /cheme, 0age %isbursement and ld 'ge (ension (ayments,

0ith 1,55,335 post offices, department of posts has the mostly widely distributed

postal networ! in the world.

(ost services were founded 1stapril,122.Its 4eaduarters in /ansand *arg,


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ew %elhi 67.268 post are in rural areas and 1.&&8 are in urban areas.It has

different departmental post offices and branches.The postal services is under

department of which is part of *inistry of 9ommunication and IT of +overnment of

India.

In &13,It was revealed that the Indian postal services had formulated plans to enter

the ban!ing industry after -)I guidelines for the issuance of new ban!ing license

were released. ventually, they are planning to open a post of India, an Independent

)an!ing services.

There are different services provided by the post offices such as saving schemes

,insurance ,electronic Indian postal order etc. 9omputeri#ation has enabled the

paperless transactions for mail, postal ban!ing and insurance services.

VISION STATEMENT OF INDIA POST


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excellent organi#ation exceeding the expectations of the customers,

employees and the society; to perform the tas! byectives are to


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including matters relating to all international bodies dealing with postal

communications such as Cniversal (ostal Cnion, 'sia (acific (ostal Cnion

?'(C$, 9ommonwealth (ostal Cnion.

. *atters relating to introduction, development and maintenance of all services by

the (ost ffice including those based on cable, radio and satellite

communications channelsor locations in the country has been set up

to create an A%to"ated Mail .id. %edicated transport arrangements both road and

air are made for expeditious transmission of mails.

The department has underta!en Mail net 2o3 opti"i4ation pojectto improve the

uality of mail processing, transmission and delivery. The pro>ect see!s to optimi#e

the existing mail networ! with a view to streamline core mail operations and to bring

in greater standardi#ation and improvement in the operational processes relating to

mail processing, transmission and delivery. The visibility of transmission has been

enhanced by providing trac! and trace facility for speed post and registered mail. The

customer can trac! the mail through India (ost website by using the uniue barcode

number.

Poject ao2launched in &6 aims to improve the core operations of a post office

which includes the improvement of delivery efficiency for all !inds of articles . 'bout

15E post offices have been covered under pro>ect arrow.

Mail b%siness centewas conceptuali#ed in important towns in the year &@ as a

!ey component of the new paradigm for *ail management. It focuses on one stop

solution to the bul! mailers providing all premailing activities and other value added

services.

Traditionally, boo!ing of registered articles, insured and Dalue payable articles, speed

post were being provided at manually operated counters. 9onsidering the vital need

for providing the benefit of technology to the customers, the mail operations are now


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will be charged on delivery with double the letter postage. If the addressee refuses to

pay the charges, the parcel will be returned to the sender from whom the charge will

not be recovered.

Ins%ance(

Insurance covers all ris!s during the course of transmission by post. T$e follo2in.

t!pes of aticles can be ins%ed(

-egistered letters

Dalue (ayable Aetters

-egistered (arcels

Dalue (ayable (arcels

Aimits

)ranch offices are allowed to boo! up to the value of I- @

ther offices can boo! up to the value of I- 1

Insured value should not exceed the value of the articles insured

0hen articles having intrinsic value such as gold and currency notes are sent

they should be insured for the actual

value of the contents

The article to be enclosed in a strong cover sealed by means of identical seals, so that

it cannot be tampered without brea!ing the seals or in a special water tear resistant

and tamper evident special cover.

INTERNATIONA1 SERVICE:


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Surface Air Lifted (SAL):

/urface 'ir Aifted ?/'A$ is one more premium mailing service from India (ost. /'A

mail is faster than sea mail yet cheaper than air mail" an ideal combination of air and

surface transport for uic! and economical mail deliveries.

/'A mail will be 'ir Aifted between the country of origin and destination. 4owever

within the country of origin upto the office of exchange and in the country of

destination from the office of exchange to the point of delivery, /'A mail will be

transmitted by surface.

Pe"i%" sevices

&5 SPEED POST(

The very high speed express service for letters and documents. /peed (ost lin!s

more than 1& towns in India, with &7 /peed (ost 9entres in the national

networ! and around 1 /peed (ost 9entres in the state networ!. For regular

users, /peed (ost provides deliveryanywhere in Indiaunder contractual service.

/peed (ost offers a money"bac! guarantee, under which the /peed (ost fee will be

refunded if the consignment is not delivered within the published delivery norms.With

a view to provide convenience for the customers , /peed (ost provides collection from the

premises of the customers through on"call collection and regular collection at some of

he towns. For corporate customers and regular users , /peed (ost provides many

value added services including pic!"up from the premises, convenient monthly


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billings, account management facilities, assistance in import B export procedures of

shipments, corporate trac!ing facilities, volume discounts etc. 0hen you open a

/peed (ost account, you open the door to convenience and customi#ed solutions, as

per your reuirements.

)5 1o.istics post(' brand new service from India (ost great for sending parcels and large consignments

across the nation and around the world. Aogistics (ost manages the entire distribution

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

carriage, from order preparation to order fulfilment. Aogistics (ost is an ideal service

for sending large consignments including multi"parcels, >ust"in"time parcels, bul!"

brea! consignments andgoods of any weight. 0hile (arcel (ost offers weight up to

35 !g, Aogistics (ost has no weight limit. Aogistics (ost offers not only physical

logistics services but also provides comprehensive supply chain management services,

leading to improvement in the service level.

*5+%siness post )usiness (ost providestotal mailing solutionsto the businesses from mail

preparation to mail delivery. It is a one"stop shop service that manages entire mail"

out process, for small businesses as well as large companies. 9ustomers can choose

from a range of cost"effective and professional mailing services, including printing,

collating, inserting, sealing, and addressing to meet their specific business needs. In

order to speed up the mail delivery, special despatch direct to destination post office

and special delivery arrangements can also be made under )usiness (ost .


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)usiness (ost handles all business mail processing to ma!e the tas! easy and

convenient for the customer. utsourcing the business mail processing needs to India

(ost means that the company can redirect precious resources to its core business

activities. It ma!es sound business sense. )usiness (ost services are available in

)usiness (ost 9entres which have been established in ma>or towns. )usiness

(ost 9entres are available at ma>or post offices. Cnder )usiness (ost, the amount

payable for )usiness (ost services is received in advance.

4) E,pess Pacelxpress (arcel service will be available to both retail as well as business ?corporate$

customers. xpress (arcel is an air express parcel product providing time bound

delivery of parcels. These parcels will be transmitted through air or any other fastest

mean available. 'll xpress (arcel consignments shall be given door delivery

irrespective of its weight. )usinessB 9orporate customers are provided pic!"up facility

from their premises.

/5 Media post

India (ost offers an uniue media conceptto help the Indian corporate and the

+overnment organi#ations reach potentialcustomers through *edia (ost. 9reative,

cost"effective and personali#ed, its over pac!ed. 'bsolutely no other media can

match the sheer expanse of India (ost in terms of volume and reach .media post

an innovative effective vehicle for )rand and *ar!eting managers to

communicate their corporate messages across the nation.


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ow, your brand could ta!e the fast trac! and reach the masses at a low cost with

*edia (ost. 'dvertisement on postcards, letters, postal stationary etc.

05 6eetin. PostThese cards come ready with pre"paid postage envelopes thereby eliminating the

need to affix stamps< a uniue concept for the first time in India. 0hats more

fascinating, the postage stamps are an exact replica of the cards inside. 'nd its not

only convenience that these cards offer, but a lot more. Through +reeting (ost you

can express yourself perfectly on every occasion, festival or event. Few would miss

the warmth reflected in their beautiful designs and pleasing colours 0hich

undoubtedly ma!es them an absolute >oy to receive.

FINANCIA1 SERVICES(

&5 POST OFFICE SAVIN6 SC7EMESP%blic Povident F%nd Acco%nt

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

)$ on"-esident Indians ?-Is$ are not eligible.

9$ Investment up to I-. 1,, per annum ualifies for IT -ebate under

section 6 9 of IT 'ct.

%$ The rate of interest on the subscriptions made to the fund on or after

1.1&.&11 and balances at credit of the subscriber in the existing ((F account shall

bear interest at the rate of eight point seven per cent ?6.28$ per annum.

$ Aoan facility available from 3rd financial year upto 5th financial year. The rate

of interest charged on loan ta!en by the subscriber of a ((F account on or after


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Trust and 4CF cannot invest.

-ate of interest 6.58.

*aturity value of a certificate of I-.1B" purchased on or after 1..&1&

shall be I-. 151.@& after 5 years.

NSC 9t$Iss%e

o maximum limit for investment.

I-. 1B" grows to I- &3.35 after 1 years.

*inimum I-. 1B" o maximum limit available in denominations of I-.

1B", 5B", 1B", 5B" I-. 1,B".

' single holder type certificate can be purchased by an adult for himself or on

behalf of a minor or to a minor.


*aturity value of a certificate of I-.1B" purchased on or after 1..&1&

shall be I-. &3@.@ after 1 years.

)uy ational /avings 9ertificates ?/9s$ every month for Five years H -e"invest on

maturity and relax " n retirement it will fetch you monthly pension as the /9

matures.

Savin.s Acco%nt

'ny individual can open an account.

9heue facility available.


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+roup 'ccount, Institutional 'ccount, other 'ccounts li!e /ecurity %eposit

account fficial 9apacity account are not permissible

-ate of interest 8 per annum

Mont$l! Inco"e Sc$e"e :MIS5 Acco%nt /afe sure way to get a regular monthly income.

/pecially suited for retired employeesB /enior 9iti#ens or any one with high

sum for investment.


*aturity (eriod " Five ears.

o )onus on *aturity w.e.f. 1.1&.&11.

'uto credit facility to /) 'ccount.

T!pe of Acco%nt Mini"%" li"it Ma,i"%" li"it

/ingle I- 15B" I- .5 la!hs

Joint I- 15B" I- 7 la!hs

'bove scheme operates automatically, if you open a saving ban! account and give a

reuest for automatic transfer of *onthly Income /cheme interest to -ecurring

%eposit through /aving )an! account.

;ISAN VI;AS PATRA

KD( is a saving scheme that was announced by the government of India that double

the money invested in 6years 2months. It can encash after two and half years from

date of issue. Farmers buy these certificates and revenue earned buy the government


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will be used for farmers

Rec%in. Deposit Acco%nt Any individual (a single adult or two adults jointly) can open an

account.

Advance Deposits earn rebate.

our defaults are allowed.

!ate of interest ".4#$

Defaults can be paid within two months.

%art withdrawal facility available.

%remature closure allowed after three years.

%ay !oll &avings &cheme is also available for employees of various

'stablishments.

Type of Account Minimum Deposit Maximum Deposit

ndividual Account !. *#+, and in multiples

of !. -+, thereafter

o limit.

Ti"e Deposit Acco%nt

'ny individual ?a single adult or two adults >ointly$ can open an account.

+roup 'ccounts, Institutional 'ccounts and *isc. account not permissible.


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Trust, -egimental Fund or 0elfare Fund not permissible to invest.

1 ear, & ear, 3 ear and 5 ear Time %eposit can be opened.

In case of premature closure of 1 year, & ear, 3 ear or 5 ear account on or

after 1.1&.&11, if the deposit is withdrawn after @ months but before the expiry of

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.

In case of premature closure of & year, 3 year or 5 year account on or after

1.1&.&11, if the deposit is withdrawn after the expiry of one year from the date of

deposit, interest on such deposits shall be calculated at the rate, which shall be one per

cent less than the rate specified for a period of deposit of 1 year, & year or 3 years as

mentioned in the concerned table given under -ule 2 of (ost office Time %eposit

-ules.

-ate of interest " 6.8, 6.8, 6.8, 6.58 compounded uarterly for

1,&,3 5 years T% account respectively w.e.f.1B1B&1.

The investment in the case of 5 years T% ualify for the benefit of /ection

69 of the Income Tax 'ct, 17@1 from 1..&2.

T!pe of Acco%nt Mini"%" Deposit Ma,i"%" Deposit

1,&,3 5 ear T% I-.&B" and in multiples

of I-. &B" thereafter

o limit.

(ost ffice /avings )an! " The safest investment

/ave today"/mile tomorrow

(ay %ay is your /avings %ay


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+eneral of (ost ffices, *r. F.-. 4ogg in 1661 as a welfare scheme for the

benefit of (ostal employees and later extended to the employees of Telegraph

department in 1666. In 167, (AI extended insurance cover to female

employees of ( T %epartment at a time when no other insurance company

covered female lives. It is the oldest Aife insurer in this country.

In the beginning, the upper limit of life insurance was only -s B" which

has now increased to -s 1 lacs ?-upees Ten Aacs$ for all schemes combined "

ndowment 'ssurance and 0hole Aife 'ssurance. ver the years, (AI has

grown substantially from a few hundred policies in 166 to &,63,3& policies

as on 31.3.&1. It now covers employees of 9entral and /tate +overnments,

9entral and /tate (ublic /ector Cnderta!ings, Cniversities, +overnment aided

ducational institutions, ationali#ed )an!s, Aocal bodies etc. (AI also

extends the facility of insurance to the officers and staff of the %efence

services and (ara"*ilitary forces. 'part from single insurance policies, (ostal

Aife Insurance also manages a +roup Insurance scheme for the xtra

%epartmental mployees ?+ramin %a! /eva!s$ of the %epartment of (osts.

(AI is an exempted insurer under /ection 116 ?c$ of the Insurance 'ct of 1736.

It is also exempted under /ection ?d$ of AI9 'ct, 175@.

* -*ITT'9 /-DI9/

Mone! Ode(This is a domestic money transfer facility through post office. *oney

send through money order is paid at the door"step of the payee and this service is


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available in all post offices . *aximum amount which can be remitted through a

single money order is -s.5B". -emitter can pay the amount in cash or cheue at the

boo!ing office and the charges for the service is 58 of the value of money to be

transmitted. -emitter gets ac!nowledgement signed by the payee.there is a provision

for sending short communication also along with the money order.

Electonic Mone! Ode :eMO5(Introduced on 1.1.&6. e* system aims to

simplify the transmission process of money orders by ensuring uic! and secure

electronic transmission. Time ta!en for Transmission is very less amount is paid

within a day of boo!ing . the amount of money order is paid in cash at the door step of

the payee. Facility for remitting money from one to one, one to many and many to one

is available under this service. e* can be boo!ed at authori#ed (Ms, but paid

through all delivery (s in the country. commission for e* is same as applicable to

money order. The e*s can be trac!ed through Indiapost website.

Instant Mone! Ode :iMO5(India (ost provides instant *oney rder service,

which is Instant, /afe, -eliable 9onvenient. 'mount from -s.1B" to -s.5B"

can be remitted through designated i* (ost ffices. It is an instant web based

money transfer service. -emitter has to fill"up prescribed form should produce

valid photo identity. *oney rder 9ommission varies based on the amount of

remittance. There are 33 standard messages for selection by the remitter. (ayee has to

visit the post office, fill up the prescribed form and produce the identity proof to

receive the money. 'mount recieved can also be credited to the savings ban! account

of the payee.


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get their interest automatically transferred and credited into their accounts on due

dates at designated )an! of their choice. 9urrently the service is available in the

%epartment of (osts 15 -)I locations and &1 /)I locations.

MUTUA1 FUNDS(

The (ost ffice has traditionally been a distributor of financial services, from money

orders to ban!ing services. The (ost ffice /avings )an! is the largest retail ban! in

the country, operating from over 1,5, branches. 0ith an ob>ective to leverage the

strength of the postal networ! and s!ills %epartment of (osts had started retailing

mutual funds and bonds.

n &&nd January &1, India (ost in partnership with I%)I"(rincipal, launched a

scheme for distribution of mutual funds through post offices. ' pilot pro>ect was

started from the four cities of %elhi, *umbai, Kol!ata and (atna. Thereafter from

15th June &1 onwards, the scheme was extended to cover post offices in all ma>or

capital and other cities all across the country. 't present select schemes of (rincipal,

/)I, CTI, Fran!lin Templeton and -eliance *utual Fund are retailed through

designated post offices in the country.

Foe, Sevices4igh growth Indian economy coupled with globalisation has resulted in thousands of

Indians going abroad for travel, studies and business. /imultaneously, there is a huge

inflow of foreign tourists visiting India on vocation and business. This has resulted in

the need for a reliable and uality service provider for purchase and sale of Foreign

xchange.


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ach one of them reuires reliable, affordable and convenient Forex services. 't

many places, there is no )an! or other facilities to avail foreign exchange. India (ost,

with a networ! of more than 155, post offices, is best poised to offer Forex

services in an efficient and economical manner. ow India (ost, in association with

4%F9 )an!, provides Forex services through select (ost ffices across India. 4%F9

)an! is one of the leading providers of Forex services and through this association,

India (ost brings to the customers a range of Forex services in a professional and

efficient manner.

Retail SevicesThrough its vast networ! of (ost ffices across the country, India (ost offers the

facility to collect consumer bills for service industries li!e telephone B electricity B

mobile phone users etc for +overnment and private organi#ations through -etail (ost.

(ost ffices also sell forms for public bodies across counter of (ost ffice. )esides

this, facility of reservation of -ailway Tic!ets through computeri#ed passenger

reservation system terminals has been commenced from 2.1.&2 in selected (ost

ffices. -etail (ost leverages the vast networ! of (ost ffices for sale of products

across the counter on behalf of other organi#ations. It pro>ects India (ost as a =ne

/top /olution (rovider= for various utility services and it is in a position to offer the

retail services to the customers of any agency. /ome of the agency services that -etail

(ost offers are as followsority ?23.3 per cent$ 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.

6avini and At$"a :&9995 found that social considerations, tax benefits, and

provision for old age were the reasons cited for saving in urban areas, whereas to

provide for old age was the main reason in rural areas. 'mong the post office


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schemes, Indira Di!as (atra ?ID($, KD( and (ost ffice -ecurring %eposit 'ccount

?(-%$ were the most popular, in both urban and rural areas

So"as%ndaa" :&99>5has found that ban! deposits and chit funds were the best

!nown modes of savings among investors and the least !nown modes were Cnit Trust

of India ?CTI$ schemes and plantation schemes. 'ttitudes of investors were highly

positive and showed their intention to save for better future. early two"thirds of the

investors were satisfied with their savings. )oth income and expenses of a family

influenced the level of satisfaction over savings. ' large proportion of investors were

concerned about their children=s well"being. 'mong the dissatisfied investors,

ma>ority were of the opinion that cost of living was too high. The most common mode

of investment was ban! deposits. 4owever, a shift was noticed from ban! deposits to

other forms of investment. 'lmost all the investors had invested in gold and silver.

'mong several parameters in investing, safety of money was considered to be the

most important element. ext, the investors expected regular return from their

investments.

National Co%ncil of Applied Econo"ic Reseac$ :NCAER5 :&90&5

=Crban /aving /urvey= noticed that irrespective of occupation followed and

educational level and age attained, households in each group thought saving for the

future was desirable. It was found that desire to ma!e provision for emergencies was a

very important motive for saving and importance was given next to =saving for old

age=. 'mong motives for saving, provision for emergencies, old age, and purchase of


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appeal and it provides an opportunity for ordinary men, women, and even children to

par! their savings. It reaches a large number of people and covers a wide range of

areas. /he also suggested that efforts should be ta!en 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 ban!s.

?a!aa"an :&9>85has stated that instead of issuing special bonds for unearthing

blac! money the +overnment of India can encourage investment of blac! money in

various small savings schemes. 4e further stressed the need to draft the assistance of

voluntary agencies at the school and college level for further mobili#ation of savings.

Aan.asa"i :&99)5has observed that more and more dependence on mobili#ation

of resources through small savings will ensure and promote self"reliance. 4e

concluded that the 9entral government should give proper assistance and

encouragement to the small savings agencies, which will be useful not only in

mobili#ation of funds but also for the economic development.

T$e st%d! b! M%3$i :&9>95has revealed that /9 has been one of the most

popular tax savings instruments in this country. 4e has stated that contractors and

others who have to provide security while bidding for contracts find it extremely

convenient to buy /9 and pledge these to the appropriate authorities while earning


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1& per cent per annum on the pledged securities. 4e also stated that the ma>or

attraction of /9 is its simplicity. ven the average investor does not have to scratch

his head to understand the schemes

Refeences

'rangasami, '., ?177&$, =' study of small savings schemes in Tamil adu with

special reference to *adras %istrict during 1761"6& to 177"71=, unpublished thesis,

Cniversity of *adras, Tamilnadu, India.

+avini, 'ugustine, A., and (rashanth 'thma, ?1777$, =/mall /aving /chemes of (ost

ffice eed to )e Known *ore=, /outhern conomist, 32?&$, February 15, pp. 13"

1.

Jayaraman, -., ?1762$, ' study of small savings schemes in orth 'rcot %istrict=,

172@"6@, unpublished thesis, Cniversity of *adras, Tamilnadu, India.

Karthi!eyan, )., ?&1$, =/mall Investors= (erception on (ost ffice /mall /avings

/chemes=, unpublished thesis, *adras Cniversity, Tamilnadu, India.


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*u!hi, *.%., ?1767$, =/9s< ' saving grace=, )usiness 0orld, @"17 %ecember, 1767,

pp. 12"1&.

9'-, ?17@1$, =/avings in India=, ew %elhi. /)I"9'-, ?&$, =/urvey of

Indian Investor=, *umbai.

/omasundaram, D.K., ?1776$, =' /tudy on /avings and Investment (attern of /alaried

9lass in 9oimbatore district=, unpublished thesis, )harathiyar Cniversity, 9oimbatore,

Tamilnadu.

Tamil!odi, '.(.(., ?1763$, =/mall /avings /chemes in Tamil adu< ' Trend /tudy

?172"6$=, unpublished thesis, Cniversity of *adras, Tamilnadu.

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