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1. Introduction
The Department of Post functioning under the brand name India Post , is a
governmentoperatedpostal systeminIndia;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.. 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.
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History of Mumbai GPO (Bombay GPO)
The origin of the vast network of the Imperial Indian Post Offices can be traced to
the opening of the General Post Offices at Calcutta and Madras but in respect of
Mumbai GPO, sketchy information is traceable, scattered in the Mumbai Gazettes,
Gazetteers and other official records in the Presidency. The first reference is found in
the instructions issued in their letter book by the Company to the Council on 27th
August 1688 to erect a post office for all letters to be brought to and delivered at
Mumbai and the the land daks and passage boat should be established to take such
letters to Surat and Other places, and the post office should be first leased out to a
discreet and powerful man who ought to pay the Company for the contract not less than
E400 to E500 a year. The Presidency of Mumbai had to wait for a century to witness
the appointment of a Postmaster at Mumbai for the purpose of organizing a regular
postal communication with the Fort Saint George GPO Madras for receipt and
dispatches from the company. The exact date of establishment of Mumbai GPO is not
known to the postal historians.
In the month of November 1787 a Postmaster was presumably appointed at
Mumbai GPO for the first time in the history of Mumbai Presidency for receipt and
dispatch of a fortnightly mail between Mumbai and Madras, In 1789 and Calcutta via
Masulipatnam and Poona in the month of September of the year, The Postmaster
General functioned for the whole of Presidency with the upgradation of the post office
into a General Post Office in the year 1793. The Government opened a regular monthly
Mail Communication service with Great Britain via Bussora for dispatch on the first of
each month from 1st January 1798, four years after the first sea mail was introduced
from the Mumbai GPO. The Mumbai GPO established its position with other
Presidencies in the network of overland and inland postal communication lines within
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and outside British India, by opening runner lines to Surat, Delhi, Madras, Banglore,
Calcutta, between 1796 and 1820.
The GPO was first located in the Saint George Fort for the convenience of the East
India Company. Afterwards with the increase of private correspondence it was shifted to
the premises of the then Mumbai Bunder near Appollo Pier. On 18th October 1831 the
GPO was shifted to the premises opposite the head of Firbes Street. Again the GPO
establishment was removed to the new Post office building, adjoining the Custom
House vide Notice issued by John Gordon, PMG Mumbai, on 28th February 1844. The
Mumbai Gazeetted of 27th October 1862 intimated that the GPO was shifted to the
premises of Mumbai Fort near Appollo Street in 1860. The Director General recorded in
his Report of 1868 69 that the GPO Building was burnt down by a fire on 1st March
1869 and the records were completely destroyed. In 1869 the GPO was shifted to CTO
premises near Flora Fountain.
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The present GPO building just outside the CST Railway station earlier known as
VT Railway station was designed in 1902 by John Begg, consulting architect to the
Government. The stone fronted edifice was taken up for construction on 1st September
1904 and completed in April 1913. It is first building in India in Indo-Saracenic style of
architecture. Total cost of construction was 1809000. Total area covered is 120000
sq.ft. with end to end length of 523 ft. The Office of the PMG was also located in this
building. The chief feature of the building is the central hall that rises throughout the
height (120 ft.) of the building to the great dome surrounding the structure. Its dome has
a distinctive resemblance to the Gol Gumbaz of Bijapu. While the new dome of the
building has a diameter of 65 feet, it is the largest dome of the City. Turrets and
minarets resemble Moghul architecture. The style is in Indo-Saracenic style drawing
inspiration from the Indian Monuments of Moghul period. Materials used are local basalt
with dressing of yellow stones from Kurla and white stones from Drangdra. This
building with the imposing dome and architectural design is one of the landmarks of the
Fort area of Mumbai. In terms of utility, the building stands as a tribute to its planners
and architects that the building is serving the staff and the public, without causing any
cramp in the space available for use even today. The Department is earnest in
conserving the building in its original form, in keeping with the heritage status. INTACH
(Indian National Trust for Art, Culture & History) was engaged as consultant to advise
the department on restoration and maintenance of this monument building.
Mumbai GPO is now the biggest Post Office in the country and one of the biggest
in the world. It caters to over 50,000 address sites, most of which are recipients of
voluminous mail.
The Business Hall of the GPO is unique with 101 counter positions, following the
addition of the 1200 square meter large Bi-Centenary Hall, and working from 08.00 hrs.
to 23.00 hrs where all businesses of a post Office are transacted for about more than
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25,000 people every day. Mumbai GPO is now totally computerized which facilitates its
valued customer reliable and prompt service.
Mumbai GPO combines the glory of a historical tradition and the virtue of modern
technology and is part of the life-line of the city. It is serving the vast majority of
customer.
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HISTORY
The Indian postal system in the 14th century: In India the postal system was of twokinds. The horse post, called uluq, was run by royal horses stationed at a distance of
every four miles. The foot-post has three stations per mile; it was called dawa, that is
one-third of a mile ... was, at every third of a mile there is a well populated village,
outside which are three pavilions in which sit men with girded loins ready to start. Each
of them carries a rod, two cubits in length, with copper bells at the top. When the courier
starts from the city he holds the letter in one hand and the rod with its bells on the other;
and he runs as fast as he can. When the men in the pavilion hear the ringing of the bell
they get ready. As soon as the courier reaches them, one of them takes the letter from
his hand and runs at top speed shaking the rod all the while until he reaches the next
dawa. And the same process continues till the letter reaches its destination. This foot-
post was quicker than the horse-post; and often it is used to transport the
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 aRupee)for distances up to
100 miles (160 km). Payments would be done throughcopper 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).
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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 first stamp of independent India shows the new Indian Flag. It was meant for
foreign correspondence. August 15, 1947
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 inCalcutta, 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 paperwatermarked with anelephant head.
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MISSION
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.
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This retail like Nature of a payments system means that high volumes and ubiquity are
Necessary for success. All possible markets must thus be tapped to build volumes. The
Possibilities include but are not restricted to the following channels:
1. Person-to-person Payments
2. Government benefits payments
3. Microfinance, microinsurance, Micropensions
4. Mobile prepaid to pups
5. Recurring bill payments
6. Railway tickets
7. Other merchant transactions
Of the channels above, India Post should play an active role in the creation of the
Electronic MO linked to lightweight POSB accounts. This will enable persontoperson
Payments, and G2P payments. For all other channels, India Post should nurture the
Creation of an ecosystem, where other public and private enterprises integrate the India
Post Payments Network (IPPN) into their own businesses, along with creating
innovative
Payments products.
The Expert Committee recommends that India Post establish a mechanism through
which
The post offices can be harnessed into delivering short duration,
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Fixed size,
Noncollateralised
Micro loans (of Rs.500 for one month) while adhering to the following
Principles:
1) India Post must not undertake credit risk using public funds,
2) India Post should serve as a facilitator for a mass-market
For micro loans Without Running the market.
3) India Post must not displace private investment,
4) Vendor neutrality and transparency must be maintained in selecting eligible credit
Providers and India Post should not perform any activities that may damage its
reputation.
Connectivity
While expanding the Postal network, the policy of India Post is not only to provide
physical access to the people, but also to bridge the digital divide. As a step in this
direction, India Post has a Technology Induction Plan, which would connect the entire
population to the electronic network. India Post will induct technology aimed at providing
new and better services, and more efficient management by computerizing and
networking all post offices using Central Server based system. Induction of other state
of the art processing systems including mail-processing systems - so as to provide
service on par with global industry standards - will facilitate financial transactions such
as inward domestic and foreign remittances to and from India Posts customers.
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2.GOVERNANCE AND ORGANISTAION
The postal service comes under the Department of Posts which is a part of the Ministry
of Communications and Information Technology under theGovernment 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 aMajor General.
Governance Structure
The Department of Posts is part of the Ministry of Communications and Information
Technology, Government of India. The Secretary, Department of Posts, as the Chief
Executive of the Department, is also the Chairperson of the Postal Services Board and
Director General, India Post. There is a need to revisit India Posts governance structure
to provide an effective line of command so that India Post is able to meet the challenges
of current market conditions vis--vis other players in the postal sector. India Post
recognizes the presence of private competitors in the market, but there is also a need
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for regulating the sector to ensure disciplined functioning and growth. India Post
expects in the near term to achieve self-sufficiency given realistic prices for its core
functions and other services. However, for the purpose of operational efficiency and
expansion of its activities, funding of its capital requirement may require external
resources. It also expects to receive revenues from its financial services and other fee
based services. It will examine closely and rationalize its product mix with emphasis on
e-commerce, logistics and parcel services, etc., bearing in mind the need to maintain
highest level of performance in letter mail services, financial services and governance
functions.
India Post is an essential part of the governance of the country. It has performed
sovereign functions since its inception and is instrumental in unifying the country and
ensuring connectivity between far-flung regions and between dispersed citizens, both
within and outside the country.
Its presence and operations have ensured that as a Government organization it enjoys
high credibility and trust, and citizens have no hesitation in approaching its personnel or
visiting its offices. This degree of confidence is precious and it can be leveraged to bring
more accuracy, efficiency and credibility to other governance functions that depend
crucially on identification of individual citizens.
It is therefore, possible, given government approval and legislative support, for India
Post to carry out maintenance of electoral rolls, census operations and ensure passportverification etc. This will be based on a National Address Database Management
System (with street and GPS addresses), which will be established. It will also solve the
identification problem that besets most Governmental programs and policies.
Investment in this facility will enable the Union and state governments to allow citizens
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to avail of their rights as well as enable the Government to identify and locate citizens
more accurately.
Private Sector Participation
India Post welcomes the opportunity to work with the private sector in providing value
added services and extending its product range beyond the current core functions.
Private sectors participation in providing support services is expected to enable India
Post to serve its customers better.
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Physical Infrastructure
It will be the policy of India Post to bring its facilities within reach of every citizen in the
country. Since Independence, India Post increased the number of post offices from
23,344 to 1,55,204. It is the largest postal network in the world, with one post office
serving 7160 people and covering an area of approximately 21.2 sq. kms. Despite this
only 1,37,508 out of 5,95,113 inhabited villages have post offices. Even if only Gram
Panchayat villages are considered, only 1,15,881 of them out of a total of 2,34,755 have
post offices.
With the 73rd Constitutional Amendment transferring funds, function and functionaries
in many development sectors to Panchayati Raj Institutions (PRIs), there is a real need
to increase connectivity and provide communication and financial services to these
bodies to enable them to discharge their Constitutional roles. There is a need therefore,
to expand, strengthen and rationalize the rural branch network to ensure full coverage.
This can be done with funding assistance from the Government for infrastructure
support.
India Post not only needs to invest in physical structures and remedial maintenance, but
also in good housekeeping, computerization, transport facilities etc. This will result in
increased efficiency, lower costs, customer satisfaction and enhanced service delivery.
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3. NATIONAL POSTAL POLICY
Introduction
An efficient and reliable communication network is the lifeline of the nation and plays a
crucial role in socio-economic development and the integration of the country. For
nearly a century and half the Postal System has been the main component of the
communication infrastructure for the country.
The Indian economy has moved on to a high economic growth trajectory involving an
average annual growth rate of about 6% over the last 16 years with further acceleration
in recent years. India Post requires a new policy framework because of the emergence
of several significant trends such as: liberalization and globalization; demographic shift
towards urbanization leading to increasing internal and external migration requiring to
be serviced; monetization of the economy especially the agricultural sector giving rise to
a corresponding demand for financial services by all sections of the population; and
government policy to increase funding for weaker section programs. Given the need for
a strong communication and financial infrastructure, India Post will meet both
challenges and avail of the opportunities presented by current market conditions.
A Policy for India Post
This policy has a two-pronged approach.
Develop services that assist, facilitate, enhance and quicken the process of
development aimed at inclusive growth.
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Reposition India Post to become a self-sufficient, credible, efficient, quick and
costeffective provider of these services.
Function:-
India Posts mandate, traditionally, has covered the following services:
Delivery of letter and other mail
Savings Bank operations
Money transfer
Provision of Life Insurance
1) Transmission and delivery of mail can be defined as India Posts core business
so far. Post Office Savings Bank is the oldest and largest banking institution in
the country. Transmission of funds by postal order/money order has been the
traditional way of money transfer. Since 1884 onwards Postal Life Insurance
(PLI) has been providing life insurance coverage, initially to employees of P&T
Department and subsequently to all Government employees. Since 1995 PLI has
been extended to the rural population of the country under a new scheme Rural
Postal Life Insurance.
2) India Post is expected to ensure provision of quality and basic postal services on
regular basis to all the users at all points in the country at affordable prices as
part of its Universal Service Obligation. The cost of providing these services has
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to be assessed systematically and fully funded. The source of funding needs to
be determined and set in ways that ensure the financial self-sufficiency of India
Post and allow it to make decisions relating to growth and development. A
sustainable tariff policy for providing the basic postal services also has to be
determined. In view of the increasing participation in mail services by private
players there is a need to address the issue in a holistic manner.
3) To effectively face the challenges of competition India Post also needs to be able
to respond to market forces quickly and efficiently both in pricing and product
decisions. In order to do so, India Post will require a certain degree of financialautonomy and commercial flexibility while remaining accountable to its customers
and to Parliament.
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4. Human Resource Development
The basis of any policy of sustainability and growth, especially of labor intensive
activities, is the productivity, capacity and morale of its personnel. A greater focus on
human resource development will be given with the objective of enhancing and
transforming the human resource of India Post into a customer-friendly, techno-savvy
and efficient workforce led by managers attuned to their tasks and aware of the
competitive and accountable environment. Efforts will also be made to increase
productivity of human resources through direct recruitment of technically qualified
persons, training of incumbents and various incentive schemes.
Increased productivity and higher performance will receive appropriate incentives and
the interests of the workforce will be safeguarded. India Post will equip its workforce to
achieve the standards of excellence expected by its customers.
Ms. Radhika Doraiswamy
Secretary (Posts) Chairman, Postal Board
Director General
K Gopinath
Member (Personnel)
Postal Services Board
Ms. Manjula Prasher
Member (Operations)
Postal Services Board
S. Samant
Member (Technology)
Dr. Uday Balakrishna
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Postal Services Board Member
(PLI) & Chairman Investment Board
Postal Services Board
Maj. Gen. V Sadasivam
Member (HRD)
Postal Services Board
Ms. Indira Krishna Kumar
Member (Planning)
Postal Services Board
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 andInformation 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.
The Postal Services Board, the apex management body of the Department,
comprises the Chairman and six Members. The Members of the Board hold portfolios
of Personnel, Operations, Technology, Postal Life Insurance, Human Resources
Development, and Planning. 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, Senior
Deputy Director General (CP) is assisting the Board in this capacity. Deputy
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Directors General, Directors and Assistant Directors General provide necessary
support for the Board at Headquarters. The Postal Services Directorate is
the Headquarters organisation 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.
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5. POSTAL SERVICE
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1 International Registered Post
To provide secure transmission of customers articles. A record is kept at all stages the
article passes through. Also the registered articles are transmitted , under special
precautions.
2Speed Post
The very high speed expresses service for letters and documents. Speed Post links
more than 1200 towns in India, with 290 Speed Post Centers in the national network
and around 1000 Speed Post Centers in the state network. For regular users, Speed
Post provides delivery anywhere in India under contractual service. Speed Post offers
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a money-back guarantee, under which the Speed Post fee will be refunded if the
consignment is not delivered within the published delivery norms.
3 E Payment
The 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 is electronically
consolidated.
4 Logistics Post
A 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 fulfillment. Logistics Post is an ideal service for sending
large consignments including multi-parcels, just-in-time parcels, bulk-break
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. Where is the details rate?
5 Business Post
Total pre-mailing solutions including collection/printing, inserting, and addressing.
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6 Media Post
Advertisements sent by media companies on Post cards, letters, walls of post offices,
letter boxes, stationary etc and received by millions of peoples.
7 Direct Post
Distribution of advertising materials directly to prospective customer
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6. FINANCIAL SERVICES
The Post Office Savings Bank Scheme is an agency function performed by India Post
on behalf of the Ministry of Finance, Government of India. The Ministry of Finance
remunerates India Post for this agency work at a rate fixed from time-to-time.Nearly 16
core* people use India Post to save Rs. 3,23,781 crore as on March 31, 2007. Out of
this, deposits in savings bank account alone is Rs.16,789 crore. There is, therefore, a
need for India Post to computerize and connect all its savings bank accounts so as to
widen and deepen the level of financial transactions and offer banking services to the
rural population. India Post sees a great opportunity for increasing the number of
accounts and volume of savings.
India Post will provide banking and financial transaction services to cater to the needs
of the rural population and help realize the policy of financial inclusion for the un-
banked rural masses. For deepening and broadening its financial services, suitable
agreements with public/private sector banks will be forged, so that India Post can offer
its unique last mile connectivity to the customers. This will permit it to receive fees for
the service rendered to the banks and other financial entities. Before this, however,
adequate infrastructure and connectivity coupled with application of appropriate
software needs to be in place.
India Post will also be the predominant agency for payments under all social security
schemes of Government such as Old Age Pension scheme, Rural Health Insurance,
National Rural Employment Guarantee Scheme etc. Such a service will reduce delay
and inefficiencies in making payments of legitimate entitlements to the poor, illiterate
and uneducated masses that are more likely to have confidence in the Post Office, than
any other agency.
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The urbanization of the country to levels of over 50% of population in older urban
agglomerations, new growth sectors and new agglomerations, creation of special
economic zones etc., has created additional demand for postal and financial facilities.
These urban postal and financial services are essential in order to maintain the flow of
funds between urban and rural residents and it is necessary to ensure safe and quick
transmission of monies. Since the competitors for such urban services are aggressive
and efficient private players, India Post will enhance and improve its delivery of urban
services in order to offer comparative standards of performance. India Post will increase
its market share in rural insurance. Postal Life Insurance and Rural Postal Life
Insurance are the instruments, which will allow India Post to increase its market and
business potential, as also fulfilling the social obligation of insuring people. It will
transform the century old Postal Life Insurance into a commercial business entity
making its own investment decisions and (1 crore = 10 million) Competing on level
playing field with other insurance entities, while conforming to requirements of IRDA
norms.
Non-postal services
The 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
Kisan Vikas Patra
Savings Bank Account
http://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/15yearsPPF.html8/13/2019 main post office.docx
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Monthly Income Scheme
Recurring Deposit Account
National Savings Scheme 1992 - discontinued from 01.11.2002
Post Office Time Deposit
Post boxes for mail receipt
http://www.indiapost.gov.in/6yearsMIS.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/Netscape/NSS92.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/Netscape/NSS92.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/6yearsMIS.html8/13/2019 main post office.docx
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FINANCIAL SERVICES
Financial
service
Core banking
services
Postal life
insurance
Money order
International
money transfer
Electronic
clearance service
e-imo
Banking
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1 CBS -Core banking services
India Post provides accessible and affordable service to the people of India
through its unparalleled network of post offices. Mails, Savings, Insurance and Parcel
are the mainstay of post offices with several new services like Western Union money
transfer, Electronic Money Order and distribution of mutual funds added successfully in
the last decade. Due to its competitive advantage of geographical accessibility and its
time tested accounting procedures, India post has also positioned itself as a reliable
agency for the Government of India (GOI) in implementing its inclusive growth policies.
Not only does the post office disburse MGNREGS wage and old age pension payments
but also in the process has opened savings accounts to a large number of financially
excluded people, thereby enabling GOI to achieve its twin objectives.
To improve its service quality and operational efficiency, India post has
embarked on an IT modernization programmed. One of the key components of this IT
modernization programmed is to introduce a centralized core banking solution with
alternate delivery channels facilitating any time any where banking environment. This
core banking environment will enable faster transfer of funds and easier withdrawals
eventually being inclusive by bridging the digital divide. The alternate delivery channels
proposed for service delivery are ATMs, Internet, Phone and Mobile Banking.
This is an Eleventh Five Year Plan Project and envisages implementation of CBS in
4000 post offices during the plan period.
2 Postal Life Insurance
Postal 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
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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 Bodies like
Municipalities and Zila Parisads, Educational Institutions aided by the Government etc.
A Rural Postal Life Insurance On 24th March, 1995, the benefits of Postal Life
Insurance were extended to rural pop2ne scan karvaya kya????ulace of the country
under the banner of Rural Postal Life Insurance.
B Postal Life Insurance Schemes
SANTHOSH (ENDOWMENT ASSURANCE)
SURAKSHA (WHOLE LIFE ASSURANCE)
SUVIDHA (CONVERTIBLE WHOLE LIFE ASSURANCE )
SUMANGAL (ANTICIPATED ENDOWMENT ASSURANCE)
YUGAL SURAKSHA ( JOINT LIFE ENDOWMENT ASSURANCE )
CHILDREN POLICY
C Rural Postal Life Insurance Schemes
GRAM SANTOSH (ENDOWMENT ASSURANCE)
GRAM SURAKSHA (WHOLE LIFE ASSURANCE)
GRAM SUVIDHA (CONVERTIBLE WHOLE LIFE ASSURANCE)
GRAM SUMANGAL (ANTICIPATED ENDOWMENT ASSURANCE)
GRAM PRIYA (10 YEARS RPLI)
CHILDREN POLICY
http://www.indiapost.gov.in/Santhosh.htmlhttp://www.indiapost.gov.in/Santhosh.htmlhttp://www.indiapost.gov.in/Suraksha.htmlhttp://www.indiapost.gov.in/Suraksha.htmlhttp://www.indiapost.gov.in/Suvidha.htmlhttp://www.indiapost.gov.in/Suvidha.htmlhttp://www.indiapost.gov.in/Sumangal.htmlhttp://www.indiapost.gov.in/Sumangal.htmlhttp://www.indiapost.gov.in/YugalSuraksha.htmlhttp://www.indiapost.gov.in/YugalSuraksha.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/GramSanthosh.htmlhttp://www.indiapost.gov.in/GramSanthosh.htmlhttp://www.indiapost.gov.in/GramSuraksha.htmlhttp://www.indiapost.gov.in/GramSuraksha.htmlhttp://www.indiapost.gov.in/GramSuvidha.htmlhttp://www.indiapost.gov.in/GramSuvidha.htmlhttp://www.indiapost.gov.in/GramSumangal.htmlhttp://www.indiapost.gov.in/GramSumangal.htmlhttp://www.indiapost.gov.in/GramPriya.htmlhttp://www.indiapost.gov.in/GramPriya.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/GramPriya.htmlhttp://www.indiapost.gov.in/GramSumangal.htmlhttp://www.indiapost.gov.in/GramSuvidha.htmlhttp://www.indiapost.gov.in/GramSuraksha.htmlhttp://www.indiapost.gov.in/GramSanthosh.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/YugalSuraksha.htmlhttp://www.indiapost.gov.in/Sumangal.htmlhttp://www.indiapost.gov.in/Suvidha.htmlhttp://www.indiapost.gov.in/Suraksha.htmlhttp://www.indiapost.gov.in/Santhosh.html8/13/2019 main post office.docx
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After the money is paid to the payee the remitter of money order receives an
Acknowledgement of payment of the amount of the money order signed by thepayee or his authorized agent. If the acknowledgment is not received in a
reasonable time, a certificate of payment signed by the Postmaster of the office will
be given on application. However, in the case of money orders issued in favor of
Government or District, Local or Municipal Boards, the acknowledgment in some
cases is retained by the payee who issued a departmental receipt to the remitter
direct.
Alteration in address or place of payment:-
The remitter of a money order which has not been paid may require that the address of
the payee shall be altered or that the name of post office at which the order was
originally made payable, shall be changed. The required change will be made without
additional charge on the remitter applying in writing to the Post Office at which the order
was issued and producing the receipt and giving full particulars of the payees address
as entered in the money order.
Alteration of payees name:-
The remitter of a money order which has not been paid may require that the amount
be paid to some person other than the payee named in the order. The required changewill be made, on payment of a second commission equal to the first, on the remitter
applying in writing to the post office at which the order was issued and producing the
receipt and giving full particulars of the payees address as entered in the money order.
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Stoppage of payment: -
The remitter of a money order which has not been paid may stop payment and requires
that the money be repaid to him. This will be done without additional charge on the
remitter applying in writing to the post office at which the money order was issued and
producing the receipt and giving full particulars of the payees address as entered in the
money order. Payment can be stopped by telegram if the remitter pays the telegram
charges. In no case however will the Post Office be responsible for inability or failure to
stop payment of a money order in compliance with the remitters request. A money
order is an order issued by the Post Office for the payment of a sum of money to theperson whose name the money order is sent through the agency of the Post Office. A
Payee is the personnamed in money order as the person to whom the money is to be
paid. The advantage of sending money to someone through money order is that
the money is delivered at the house or his place of stay.
4) International Money Transfer:-As 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 fulfils the needs of NRI dependent families in India, visiting
Internationaltourists and foreign students studying in India.
The International Money Transfer process is as follows: -
1. To avail of this Service, a remitter goes to any one of the more than 100,000
Western Union Locations in the 185 countries in which the Service operates , fills up
a "To send money" form and pays principal amount and charges. The sender
gets a Money Transfer Control Number on a receipt after the transaction is
sent through the system. Thereafter, the sender calls up his/her payee and gives
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10. On the request of the NRI community , the department is open to extending
the services to any other location (village/town/city) as well, which has the potential
clientele.
11. For further information on the service, the International representatives of the
Western Union Financial Services International can be contacted in any of the 185
countries from which the service is available.
12. Requests for extension of the service to any part ; town / village / city in
India along with any other feedback by Indian missions as well as NRI bodies
can be provided directly to Project Manager, International Money Transfer
Services
5 Electronic Clearance Service (ECS)
The ECS scheme provides an alternative method of effecting bulk payment transactions
like periodic (monthly/ quarterly/ half-yearly/ yearly) payments of interest/ salary/
pension/ commission/ dividend/ refund by Banks/Companies /Corporations
/Government Departments. The transactions under this scheme move from a single
User source (i.e. Banks/Companies /Corporations /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.
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The Scheme is in operation at 15 centers where Reserve Bank of India manages
Clearing Houses, 21 centers where SBI is managing ECS on behalf of RBI and 29 other
centers where PNB and other banks are managing ECS on behalf of RBI.
The ECS is being offered in the Department of Posts in connection with payment of
monthly interest under Monthly Income Scheme (MIS). The Department of Posts
introduced ECS scheme on a pilot basis in Mumbai City on 9th August 2003. Under
ECS, the depositors have the facility of getting MIS interest automatically transferred
and credited into their SB account on the due dates at the designated Bank of their
choice. Currently, the service is available in the Department of Posts at 15 RBI locationsand 19 SBI locations as given below. In remaining 2 SBI locations viz. Raipur
(Chhattisgarh) and Ranchi (Jharkhand) the ECS will be introduced shortly.
6 Instant Money Order Service (imo)
The instant domestic money is available in 717 postoffices. However no InternationalMoney Order facility is available.
INSTANT SAFE RELIABLE CONVENIENT Up to INR 50,000/-
India Post presents Instant Money Order (iMO), the instant on-line money
transfer service that is instant, convenient, reliable and affordable.
IMO is an instant web based money transfer service through Post Offices (iMOCentre) in India between two resident individuals in Indian territory.
You can transfer money from INR 1,000/- to INR 50,000/- from designated iMO
Post Offices.
It is simple to send and receive money.
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IMO Booking Procedure
Fill up the To Remit Payment (TRP-1) form and submit it with money at iMO
Post Office Counter.
iMO Counter clerk after booking the iMO immediately will give a printed receipt
with computer generated confidential 16 digit iMO number in a sealed condition.
Even the 16 digit iMO number will not be known to booking clerk.
Customer is required to tear off the seal and convey the confidential 16 digit iMO
number to the receiver over phone, SMS, e-mail, etc. at his means and risk.
iMO delivery Procedure
Receiver to present the 16 digit iMO number at any designated iMO post office
counter and will fill up and submit a To Make Payment (TMP-1) form along with
a copy of his personal identity proof
Receiver can receive the payment in cash up to INR 50,000. He can also receive the
payment through his post office savings bank account in the same iMO office.
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Tariff
Remittance
Commission
INR
1000-5000 150
5001-10000 170
10001-15000 190
15001-20000 210
20001-25000 23025001-30000 250
30001-35000 270
35001-40000 290
40001-45000 310
45001-50000 330
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Photo Identity
1. Voters I-Card
2. PAN Card
3. Ration Card with photo of the receiver
4. Post Office Identity Card
5. Driving License
6. Passport.
7. School/college Id
8. Official Id
Non-postal services
The 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
Kisan Vikas Patra
Savings Bank Account
http://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/15yearsPPF.html8/13/2019 main post office.docx
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Monthly Income Scheme
Recurring Deposit Account
National Savings Scheme 1992 - discontinued from 01.11.2002
Post Office Time Deposit
Post boxes for mail receipt
http://www.indiapost.gov.in/6yearsMIS.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/Netscape/NSS92.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/Netscape/NSS92.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/6yearsMIS.html8/13/2019 main post office.docx
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7.SAVINGSBANK
Post Office Savings Bank - The safest investment Save today-Smile
tomorrow
1) Monthly Income Scheme (MIS)
2) Recurring Deposit
3) Time Deposits
4) Senior Citizen Savings Scheme (SCSS)
5) Public Provident Fund
6) Kisan Vikas Patras
7) National Savings Certificates (NSC)
8) Savings Schemes Chart
9) FAQ on Banking
http://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/6yearsMIS.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/seniorcitizen.htmlhttp://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/Banking.htmlhttp://www.indiapost.gov.in/FAQonBanking.htmlhttp://www.indiapost.gov.in/FAQonBanking.htmlhttp://www.indiapost.gov.in/Banking.htmlhttp://www.indiapost.gov.in/6yearsNSC.htmlhttp://www.indiapost.gov.in/KVP.htmlhttp://www.indiapost.gov.in/15yearsPPF.htmlhttp://www.indiapost.gov.in/seniorcitizen.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/6yearsMIS.htmlhttp://www.indiapost.gov.in/SavingsAccount.html8/13/2019 main post office.docx
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Savings Account
1. Any individual can open an account
2. Cheque facility available.
3. Group Account, Institutional Account, other Accounts like Security Deposit account &
Official Capacity account are not permissible
4.Rate of interest 3.5% per annum
Type of
Account
Maximum Limit
Single Account INR. 1 lakh
Joint Account INR. 2 lakh
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1 Monthly Income Scheme (MIS)
a) Safe & sure way to get a regular monthly income.
b) Specially suited for retired employees/ Senior Citizens or any one with high sum
for investment .
c) Rate of interest 8%.
d) Maturity Period - Six Years.
5% Bonus on Maturity.
e) Post maturity Interest at the rate applicable from time to time (at present 3.5%)
f) Auto credit facility to SB Account
Type of Account Minimum limit Maximum limit
Single INR 1500/- INR 4.5 lakhs
Joint INR 1500/- INR 9 lakhs
Deposit in Monthly Income Scheme and invest interest in Recurring Deposit to get
10.5% (approx) interest. Above scheme operates automatically, if you open a saving
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bank account and give a request for automatic transfer of Monthly Income Scheme
interest to Recurring Deposit through Saving Bank account
2 Recurring Deposit:-
a) Any individual (a single adult or two adults jointly) can open an account
b) Four defaults are allowed.
c) Defaults can be paid within two months.
d) Part withdrawal facility available.
e) Premature closure allowed after three years
Type of Account Minimum Deposit Maximum Deposit
Individual Account INR. 10/- and in multiples
of INR. 5/- thereafter
No limit.
3 Time Deposit:-
Type of Account Minimum Deposit Maximum Deposit
1,2,3 & 5 Year TD INR.200/- and in
multiples of INR. 200/-
thereafter
No limit.
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4 Senior Citizens Savings Scheme (SCSS) :-
a) A new avenue of investment and return for Senior Citizen.
b) The account may be opened by an individual,
c) Who has attained age of 60 years or above on the date of opening of the account?
d) Who has attained the age 55 years or more but less than 60 years and 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.
e) No age limit for the retired personnel of Defense services provided they fulfill other
specified conditions.
f) Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to
open an account
g) No withdrawal shall be permitted before the expiry of a period of five years from the
date of opening of the account. The depositor may extend the account for a further
period of 3 years
h) After one year but before 2 years on deduction of 1 % of the deposit
i) After 2 years but before date of maturity on deduction of 1% of the deposit.
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j) In case of death of the depositor before maturity, the account shall be closed and
deposit refunded without any deduction along with interest. Interest @ 9% perannum from the date of deposit on quarterly basis.
5 15 Years Public Provident Fund:-
a. Ideal investment option for both salaried as well as self employed
classes.
b. Non-Resident Indians (NRIs) not eligible.
c. Investment up to INR. 70,000 per annum qualified for IT Rebate under
section 80 C of IT Act
d. Loan facility available from 3rdfinancial year upto 5thfinancial year.
e. Withdrawal permitted from 6thfinancial year.
f. Free from court attachment.
g. An individual cannot invest on behalf of HUF (Hindu Undivided Family)
or Association of peINRons.
Type of
AccountMinimum
limitMaximum limit
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Public Provident Fund
(Individual
account on
his behalf or
on behalf of
minor of
whom he is
the guardian
INR. 500/- in
a financial
year
INR. 70,000/- in a
financial year
6 Kissan Vikas Patra
1) Investment doubles in 8 years 7 months.
2) Encashment at any time after expiry of 2 Years from the date of issue of certificate
any Post Office.
3) NRIs & HUF not eligible.
4) Nomination facility is available.
5) Post maturity interest is also admissible at the rate applicable from time to time at
present 3.5%
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7 National Savings Certificates (NSC)
Scheme specially designed for Government employees, Businessmen and
other salaried classes who are IT assesses
No maximum limit for investment.
No tax deduction at source
Certificates can be kept as collateral security to get loan from banks.
Investment up to INR 1,00,000/- per annum qualifies for IT Rebate under
section 80C of IT Act.
Trust and HUF cannot invest.
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8.POST OFFICE SAVINGS SCHEMES
Sec 80C benefit: Investments up to INR 1 lakh in specified securities (maximum of INR
70,000 in PPF) qualify for deduction
Compounded half-yearly
Compounded yearly
Compounded quarterly
Payable quarterly
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SCHEME Interest Payable,
Rates, Periodicity
etc.
Investment Limits
and
Denominations
Salient features
including Tax Rebate
Post Office
Savings Account
3.5% per annum
on individual/ joint
accounts.
Minimum INR 50/-
. Maximum INR
1,00,000/- for an
individual account.INR 2,00,000/- for
joint account.
Cheque facility
available. Interest Tax
Free
5-YearPost Office
Recurring Deposit
Account
On maturity INR
10/- account
fetches INR
728.90/-. Can be
continued for
another 5 years
on year to year
basis.
Rate of interest
7.5% (quarterly
compounded).
Minimum INR 10/-
per month or any
amount in
multiples of INR
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 INR. 50/-
denomination in case of
death of depositor
subject to fulfillment of
certain conditions. 6 &
12 months advance
deposits earn rebate.
PostOffice Time Interest payable
annually but
Minimum INR
200/- and in
Account may be opened
by individual. 2,3 & 5
http://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/TimeDeposit.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/5YearsRD.htmlhttp://www.indiapost.gov.in/SavingsAccount.htmlhttp://www.indiapost.gov.in/SavingsAccount.html8/13/2019 main post office.docx
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Deposit Account calculated
quarterly.
Period Rate
1 yr. A/c 8.20%
2 yr. A/c 8.20%
3 yr. A/c 8.30%
5 yr. A/c 8.40%
multiple thereof.
No maximum limit.
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 qualifies for
the benefit of Section
80C of the Income Tax
Act, 1961 from
1.4.2007.
15year Public
Provident Fund
Account
8% per annum
(compounded
yearly).
Minimum INR.
500/- Maximum
INR. 70,000/- in a
financial year.Deposits can be
made in lump sum
or in 12
installments.
Deposits qualify for
deduction from income
under Sec. 80C of IT
Act. Interest iscompletely tax-free.
Withdrawal is
permissible every year
from 7th financial year.
Loan facility available
from 3rd Financial year.
No attachment under
court decree order.
PostOffice
Monthly Income
8% per annum
payable i.e. INR
In multiples of INR
1500/- Maximum
Maturity period is 6
years. Can be
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Account 80/- will be paid
every month on a
deposit of INR
12000/-.
INR 4.5 lakhs in
single account
and INR 9 lakhs in
joint account.
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.
KisanVikas Patra Money doubles in8 years & 7
months. Facility
for premature
encashment.
Rate of interest
8.4%
(compounded
yearly)
No limit oninvestment.
Available in
denominations of
INR. 100/-, INR.
500/-, INR. 1000/-,
INR. 5000/-, INR.
10,000/-, in all
Post Offices and
INR. 50,000/- in all
Head Post
A single holder typecertificate 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.
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Offices.
National Savings
Certificate (VIII
issue)
8% Interest
compounded six
monthly but
payable at
maturity. INR.
100/- grows to
INR 160.10 after 6
years
Minimum INR.
100/- No
maximum limit
available in
denominations of
INR. 100/-, 500/-,
1000/-, 5000/- &
INR. 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.
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,
There shall be
only one deposit
in the account in
multiple of
INR.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
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30th June, 30th
Sept and 31st
December.
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
INR 10,000/- p.a. The
investment under this
scheme qualifies for the
benefit of Section 80C
of the Income Tax Act,
1961 from 1.4.2007.
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9. MUTUAL FUNDS AND BUSINESS OJECTIVES
Mutual Funds
Distribution of Mutual Funds and Securities:
The Post Office has traditionally been a distributor of financial services, from money
orders to banking services. The Post Office Savings Bank is the largest retail bank in
the
country, operating from over 1,50,000 branches. With an objective to leverage the
Strength of the postal network and skills Department of Posts had started retailing
mutual Funds and bonds.
On 22nd January 2001, India Post in partnership with IDBI-Principal launched a scheme
for distribution of mutual funds through post offices. A pilot project was started from the
four cities of Delhi, Mumbai, Kolkata and Patna. Thereafter from 15th June 2001
onwards, the scheme was extended to cover post offices in all major capital and other
cities all across the country. At present select schemes of Principal, SBI, UTI, Franklin
Templeton and Reliance Mutual Fund are retailed through designated post offices in the
country.
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Easy steps for investing through the Post Office:
1. At each designated post office one counter (AMFI qualified personnel) has been
earmarked (usually on a non-exclusive basis) to receive the Mutual Fund applications;
2. An investor can approach the designated post office counters or the concerned
postmaster for application forms and literature on the types of fund schemes available
through the post office;
3. Thereafter he can hand the application forms duly filled along with requisite amount
in the form of a demand draft/cheque to the counter staff. No cash will be accepted
4. The counters accept the application forms as per the cut off time prescribed by the
AMCs for accepting the applications for their schemes in the particular post offi
Business objectives
Vision:A socially committed organization connecting individuals and businesses.
Goal:
1. Post within easy reach of all by year 2013-14.
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2. To be a focal point for delivery of all social security schemes of the State by the year
2011-12.
3. To be a self-sustaining organization by the year 2013-14.
4. To increase financial inclusion of the unbaked population by at least 10% By the year
2013-14.
Objectives:
1. To provide basic postal facilities, i.e., collection and delivery of mails, within easy
reach (1.5 kms) of all people and businesses. This is to be achieved through opening of
more post offices, relocation of existing post offices, giving out franchisees to
individuals, shops, institutions, self-help groups, etc. By March 2012, 3000 post offices
and 10,000 franchisee outlets are proposed to be opened.
2. To : (i) seek out aggressively MOU with State / Central Governments for delivery of
all social security schemes through post office by the year 2010- 11; (ii) Computerize
and network all post offices by the year 2011-12 so that information regarding delivery
of social security schemes can flow on real time basis.
3. To be a self-sustaining organization by : (a) Increasing the growth in revenue from
the existing CAGR of 6% per annum to more than 12% per annum, so as to more than
double the revenue from the existing Rs.5500 crore in the year 2007-08 to Rs.12,000
crores in the year 2013-14. The increase in total revenue in the year 2009- 10 is
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targeted to be Rs.890 crores, Rs.1350 in 2010-11, Rs.1350 crores in 2011-12, Rs.1400
in 2012-13 and Rs.1400 crores in 2013-14. The major components of the increase in
revenue are the following:
2004-05 2005-06 2006-07 2007-08 2008-09 2009-010
revenue 4010 4257 4431 5023 5322 5495
expenditure 5374 5632 5813 6233 6571 7006
Deficit -1374 -1375 -1382 -1210 -1249 -1511
i) To increase the growth in traffic of mail volumes from the existing declining and near
stagnating state by 50 crores in the year 2009-10 and thereafter increase of 100 crores
in each of the subsequent years 2010-11, 2011-12, 2012-13, 2013-14. Thus the total
mail volume in the year 2013-14 would be approximately 1100 crores. As the focus
would be mainly on increasing the mail volume through bulk mails such as financial
statements pertaining to credit cards, mobile services, insurance, etc., the average
revenue per article can be taken as at least Rs.3/-. Consequently, the incremental
revenue on account of growth in mail volume would be Rs.150 crores in the year 2009-
10, and Rs.300 crores in each of the subsequent years 2010-11, 2011-12, 2012-13,
2013-14.
ii) To increase the growth in traffic of registered articles from the existing near
stagnating state (20 crores) by 10% so as to increase the traffic by 50% in five years
time. This would mean an incremental traffic of 2 crores in each of the subsequent
years, i.e., 2009-10, 2010-11, 2011-12, 2012-13, 2013-14 so that the total traffic in the
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year 2013-14 would be 30 crores. Consequently, the increase in revenue would be
Rs.50 crores in each of these years.
iii) To maintain the growth in traffic of Speed Post articles at the existing 15% to 20%
and continue to be a market leader in express segment. The increase in revenue on
account of Speed Post is targeted to increase from the existing Rs.455 crores by
Rs.100 crores in 2009- 10, and by Rs.150 crores in each of the remaining years 2010-
11, 2011-12, 2012-13, 2013-14. Consequently, the revenue on account of Speed Post
is projected to be Rs.1155 crores in 2013-14.
iv) To have a focused approach on parcel products including ecommerce and logistics
by devising customized products including the facilities of tracking the movement of
these products. The revenue on account of parcel products including e-commerce and
logistics is targeted to increase by Rs.100 crores in 2009-10, and by Rs.200 crores in
each of the remaining years 2010-11, 2011-12, 2012-13, 2013-14. Consequently, the
revenue on account of parcel products including e-commerce is projected to be Rs.940
crores in 2013-14.
v) To have a focused approach on the global business comprising of international mails,
parcels and financial remittances so as to generate an incremental revenue of Rs.10
crores in 2009-10 and Rs.50 crores in each of the years 2010-11, 2011-12 and Rs.100
crores in each of the years 2012-13 and 2013-14. Consequently, the revenue on
account of global business is projected to be Rs.310 crores in 2013-14. vi) To increase
the growth in traffic of financial remittance from the existing near stagnating trend so as
to more than double the revenue from financial remittance in five years time. Theexisting revenue on account of financial remittances (Money Orders) is targeted to
increase from the existing amount of Rs. 375 crores by Rs.50 crores in 2009-10 and
Rs.100 crores in each of the remaining years 2010- 11, 2011-12, 2012-13, 2013-14.
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Consequently, the revenue on account of financial remittances including Money Orders
is projected to be Rs.825 crores in 2013-14
vii) To increase the number of savings accounts of all types by 1 1.5 crores additional
accounts in each year so as to increase the number of accounts from the existing 17.3
crore to 22 crore, i.e., an increase of 30% by 2011-12. Assuming a modest increase in
remuneration per savings account, the increase in revenue on account of Savings Bank
is targeted at Rs.180 crores in 2009-10 and Rs.200 crores in each of the remaining
years 2010-11, 2011-12, 2012-13, 2013-14. Consequently, the revenue on account of
savings accounts is projected to increase from the existing Rs.2170 crores to Rs.3150crores in 2013-14.
viii) To increase the revenue on account of Cash Certificates from the existing Rs.430
crores by Rs.50 crores in each of the subsequent targeted to increase by Rs.100 crores
in 2009-10, and by Rs.200 crores in each of the remaining years 2010-11, 2011-12,
2012-13, 2013-14. Consequently, the revenue on account of parcel products including
e-commerce is projected to be Rs.940 crores in 2013-14. v) To have a focused
approach on the global business comprising of international mails, parcels and financial
remittances so as to generate an incremental revenue of Rs.10 crores in 2009-10 and
Rs.50 crores in each of the years 2010-11, 2011-12 and Rs.100 crores in each of the
years 2012-13 and 2013-14. Consequently, the revenue on account of global business
is projected to be Rs.310 crores in 2013-14.
vi) To increase the growth in traffic of financial remittance from the existing near
stagnating trend so as to more than double the revenue from financial remittance in fiveyears time. The existing revenue on account of financial remittances (Money Orders) is
targeted to increase from the existing amount of Rs. 375 crores by Rs.50 crores in
2009-10 and Rs.100 crores in each of the remaining years 2010- 11, 2011-12, 2012-13,
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2013-14. Consequently, the revenue on account of financial remittances including
Money Orders is projected to be Rs.825 crores in 2013-14.
vii) To increase the number of savings accounts of all types by 1 1.5 crores additional
accounts in each year so as to increase the number of accounts from the existing 17.3
crore to 22 crore, i.e., an increase of 30% by 2011-12. Assuming a modest increase in
remuneration per savings account, the increase in revenue on account of Savings Bank
is targeted at Rs.180 crores in 2009-10 and Rs.200 crores in each of the remaining
years 2010-11, 2011-12, 2012-13, 2013-14. Consequently, the revenue on account of
savings accounts is projected to increase from the existing Rs.2170 crores to Rs.3150crores in 2013-14.
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Targeted increase in revenue year wise (in Rs corer)
Activity 2009-10 2010-11 2011-12 2012-13 2013-14
Mails 150 300 300 300 300
registered
articles
50 50 50 50 50
Speed post 100 150 150 150 150
Parcel
products
including
ecommerce
100 200 200 200 200
Global
business
10 50 50 100 100
Financial
remittances
50 100 100 100 100
Saving bank 180 200 200 200 200
Cash
certificates
50 50 50 50 50
Mutual funds 50 100 100 100 100
PLI/RPLI 50 50 50 50 50
Retail
post/business
100 100 100 100 100
total 890 1350 1350 1400 1400
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EXPLANATORY MEMORANDUM ON GOALS/OBJECTIVES
1). Post within easy reach of all: The Department has a USO for providing basic
services to the citizens who will be reflected in its ability to provide affordable and
accessible services to all the citizens. More than 70% of the population lives in rural
areas in more than 5 lakh villages. Presently, they are being provided basic postal
facilities in terms of delivery of mails through an unfixed daily delivery system. Most of
the villages are not covered through a point of presence by having a post office, even in
the case of Gram Panchayat villages. In fact, against 2.35 lakh Gram Panchayats, only
1.15 lakh Gram Panchayats are having post offices. There is, therefore, a need to
expand the postal network in the rural areas. Moreover, as the result of large-scale
urbanization and industrialization there is also a need to expand the postal facilities in
the urban areas.
2.) To be a focal point for delivery of all social security schemes : The post offices are
already delivering social security schemes such as old age pension scheme, National
Rural Employment Guarantee Scheme, etc. This would require networking all the post
offices especially in the rural areas so that information can flow on real time basis.
3.) To be a self-sustaining organization by the year 2013-14: The revenue expenditure
gap is on the increase mainly because of substantial increase in the salaries of the
employees. In order to fulfill its social obligation, there is a need for the Department to
be self-sufficient. It can be seen from the table below that on an average the net
increase in revenue is about Rs.200-Rs.250 crore except for one year 2005-06 when
the increase by 600 crore. The increase in expenditure is around Rs.300 crore.
Consequently, the deficit is in the range of Rs.1200RS.1400 crore. However, with the
increase in salary and allowances due to the 6th Central Pay Commission, the deficit
during the current year is likely to be more than 4000 crore at the existing rate of net
increase in revenue. Achieving financial self-sufficiency would, therefore, require
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focusing on those products or group of products which are likely to generate substantial
increase in revenue.
I) Mails including business mails
ii) Speed post
iii) Parcels including e-commerce and logistics
iv) Savings bank
v) Cash certificates
vi) Financial remittance
vii) Mutual funds
viii) Life Insurance
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10.COMPARISON OF INDIAN POST AND BANKS
DEPARTMENT PUNJAB NATIONAL
BANK
TYPE Agency of the govt
of India
Public (BSE,NSE-
SBI)
Public(BSE,NSE-
PNB)
FOUNDED 1764 Kolkata( as a bank
of calcuta) 1806
LAHORE,1895
HEAD QUARTERS New delhi Mumbai New delhi
KEY PEOPLE Smt. Padmini
gopinath
(director general)
Arundhati
bhattcharya
(chairperson)
KRKamath
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INDUSTRY Post card ,postal
stamp , Speed post,
e-payment , logistic
payment , Business
post, Money order ,
NSC, KVP , SBA ,
MIS , IMO.
Credit
cards, consumer
banking, corporate
banking,finance and
insurance,investme
nt
banking, mortgage
loans, private
banking, wealth
management
Credit
cards, consumer
banking, corporate
banking,finance and
insurance,investme
nt
banking, mortgage
loans, private
banking, private
equity, wealth
management
EMPLOYEES 5,30,200 2,90,287 62,127
BRANCH 157,385 16,980 -------
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11.. FINDINGS
INTERVIEW WITH POST OFFICE CENTER MASTER
1. How to open an account in post office and its requirements?
To open an account [Savings Bank (SB), Recurring Deposit (RD), Time Deposit
(TD), Monthly Income Scheme (MIS) SB3, SB103 (pay-in-slip) and specimen
signature slip for SB and TD are required.
For senior citizen accounts, separate forms are to be used. For SB account
introduction is compulsory.
2. Whether any nomination facility is available for Savings Bank
Account in Post Office ? Whether a minor can open a Savingaccount?
Yes Nomination facility is available for all individual accounts except
in Minor accounts. Yes, If he is of 10 years of age he can open account
otherwise guardian can open for him .
3. What are the norms for issuing a Cheque Books?
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Cheque books are issued in respect of cheque accounts.
In a cheque account, minimum balance should be INR. 500/-
4. How your recurring deposit is is different from the banks
A post officerecurring 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. The advantage with post-office deposits is that it
offers a fixed rate ofreturn for the duration of the deposit, while banks constantly
review their recurring deposit rates.
5. In recurring deposit do you provide customer a facility where he can
withdraw amount before maturity ?
Yes , Premature closure is permitted on completion of three years from
the date of Opening .Premature withdrawal, however, cannot earn you desired
returns.
6. Can you tell us something about time deposits in post office?
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. Time Deposits
are of 1 year, 2 year, 3 year and 5 year tenures. The minimum investment should
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A minimum of INR 1,000/- and a maximum of INR 50,000/- can be sent through
iMO.
10. Can you tell us the working procedure of imo
Money can be sent from any iMO center. A simple To Remit Payment form is to
be filled up and submitted along with the remittance a