POSTAL AND COURIER SERVICES

b. International mail Where sender and receiver lives in different countries.

a. Inland mail – Where sender and receiver lives in same the country.

POSTAL SERVICE

Gramin Sanchar Sewak Scheme

People can pay and use the phone.

Done by Department of Post and BSNL (Bharat Sanchar Nigam Limited).

Done to give phone facility to every home in rural areas.

Postman carries a mobile phone with him.

15 Year Public Provident Fund Account (PPF Account)• Features:1. Account name:

– People can open an account in their name or minor child’s name.2. Deposits :

– At least one deposit has to be made every Year.– Maximum deposit per year is Rs.70,000

• Can be done lump sum • or in maximum 12 instalments.

– Minimum deposit of Rs.500 has to be made every year.– Amount deposited should be in multiples of Rs.100– Deposit amount gets discount under income tax

3. Loans: – We can get a loan after 3 years.

4. Withdrawals:– Withdrawal can be done after the 7th year.

5. Interest :– Interest income is tax free.

PIN serve in mail service,– It helps in quick and easy sorting of mails.

PINCODE

VPP – Value Payable Post

BUSINESS REPLY POST

Different colours of letterboxes

i) There are different coloured letter boxes.

ii) This helps quick and easy sorting and delivery of mails.

iii) The different boxes are : -

Red boxes – For mails which are not local.

Green boxes – For local mail.

Blue boxes – For mails to metro cities.

Yellow boxes For mails to capital cities.

Different types of Post Cards

d. Reply postcard – Two ordinary postcards joined together. - One is used for sending the message. - The other is for the receiver to reply.

a. Ordinary postcard – Used for writing letters.

b. Competition postcard Used to send replies to competitions on radio, TV, Newspaper and Magazines.

c. Printed postcard A card with a message or picture printed on one side.

Money Order

Money Order - - Order from one post office to another,

- To pay a certain sum of money to someone.

Filled form and money is given to post office.

- Maximum that can be sent is Rs.5000 - Form is sent to other post office that has to pay. - Postman gets signature on the form

and gives the money to the receiver.

Postal Order

- Easy way to send money from one place to another. - Used mainly for paying exam fees or to apply for jobs. - We get them in post offices. - They are of different denominations. - E.g.. Rs.10, Rs.20, Rs.50, Rs.100 - We send it to the receiver after writing his name. - We also write the name of the post office where it has to be encashed. - After getting the postal order,

receiver gives it to the post office for payment.

Life Insurance available at the Post Office

a. Postal Life Insurance - - For all employees of government, banks, universities and nationalised institutions.

- Post office allows employees below 50 years to insure their lives. - They have to pay premium for a specific period.

- Money is given on death of insured or end of specific period.

b. Rural Postal Life Insurance – - For people in villages and weaker sections. - Premium is very low.

Private Courier Service.

i) Fast means of communication.

ii) Helps national and international communication.

iii) Used to send all items except gold and jewellery.

iv) They give safe and timely delivery of goods.

v) They collect items from senders and delivery it to the receivers.

vi) They use railways, roadways and airways.

v) Some couriers also use telephone, telex and fax services.

Post bag facility

i) For firms that want to get their mails quickly.

ii) Helps in receiving bulk mail.

iii) Helps in mail order business.

iv) For those who do not have fixed address.

v) For those who want to keep their address a secret.

Postal ServiceThe various services given by post office is called postal services.

a. Mail Service. – Deals with collection and distribution of letters and parcels.

b. Remittance Services – People can transfer money in and out of the country. Gives ‘Money Order’ and ‘Postal Order’ services.

c. Banking Services – Offers various schemes to help people save.

d. Insurance Services – Offers two Life Insurance Schemes. i) Postal Life Insurance ii) Rural Postal Life Insurance.

e. Other Services – i) Sale of stamps

ii) Sale of Forms

iii) Bill Payment

iv) Pension Payment

v) Gramin Sanchar Sewak Scheme

a. Mail Service : Collection and distribution of Letters and Parcels

b. Remittance service: Transfer of money

c. Banking Service : Schemes to help people save.

d. Insurance Service :Postal insurance and Rural Postal life insurance

e. Other servicesa. Sale of stampsb. Sale of Formsc. Bill paymentd. Pension Paymente. Gramin SancharSewak

Postal Service facilitate business transactions

i) Helps selling of goods by VPP (Value Payable Post)

ii) Carry letters from customers without postage by ‘Business Reply Post’

iii) Help advertisement of goods by Media Post.

iv) Quick delivery of letters by Express Post.

v) Pre-Mailing services to big mailers by Business Post.

vi) Transfer big amounts of money by Corporate Money Order.

vii) Collect mail by Post Bags.

Saving Schemes operated through Post Office

a. Post Office Savings Bank Account

- We can deposit and withdraw savings when we want. - Minimum amount is Rs.50 and - Maximum is Rs.1 lakh. - Account can be jointly operated.(Joint account) - Maximum amount is Rs.2 lakhs if jointly operated. - Money is withdrawn by cheques and withdrawal slips. - Interest on deposits is free from income tax.

b. 5 Year Post Office Recurring Deposit Scheme - Can be opened with a minimum of Rs.10

- No maximum limit.

- Deposit has to be done every month for 5 years.

- After one year, half of the deposit can be withdrawn only once.

- We can have more than one deposit.

c. Post Office Time Deposit Account

- Any person can open this account. - Minimum balance is Rs.200 - No maximum limit. - Deposit is made in lump sum. - Matures after fixed period. - Interest is given yearly, calculated quarterly. - This account can be opened by a trust. - Deposit amount is free from income tax. - The interest is also free from income tax.

d. Post Office Monthly Income Scheme

- Fixed sum is deposited for 6 years. - Minimum Rs.1500 and maximum Rs.4.5 lakhs. - 9 lakhs in case of joint account. - We get interest every month. - We also get bonus of 5%. - Interest and bonus are free from income tax. - Good for retired people.

e. 6 Year National Saving Certificate Bought by : :Can be bought by adult for minor or himself,

two adults jointly or a trust. Minimum Value : Rs.100 , Maximum Value : no limit. Certificate Amounts : Rs. 100, 500, 1000, 5000 and 10,000 Interest : Interest calculated half yearly. Interest paid at maturity. Can be Encashed : After 6 years.f. 15 Year Public Provident Fund Account

Importance of Postal Service

a)Cheaper means of communication –- Postal mail services available at low rates.

- Newspapers and magazines can be sent at concessional rates – they reach people even in the remote villages.

b) Encourage savings – -People with low incomes are encouraged to make small saving – through small savings schemes. These small savings schemes are allowed tax concessions.

c) Safe remittance of money at lower rates –- Post office offers : - Telegraphic Money Order and- Postal Order.

d) Promotion of trade – - Making enquiries, finalising deals, placing orders,

reminders for payments are done through post. - Cheque, drafts and documents are sent through registered post.

e) Facilitates distant learning – -Post office facilitates education by correspondence.

Students need not attend regular classes.- Money order is the cheapest way of remitting (sending) money.