Iv Organizational Structure and Schemes of India Post

CHAPTER– IV ORGANIZATIONAL STRUCTURE AND SCHEMES OF INDIA POST 4.1 INTRODUCTION 4.2 ORGANIZATIONAL STRUCTURE OF INDIA POST 4.2.1 Governance System 4.2.2 Planning and Policy formulation at Headquarters 4.2.3 Postal Circles 4.2.4 Operational Units 4.2.5 Army Postal Service Core 4.2.6 Some basic statistics relating to Organizational Structure of India Post 4.3 SCHEMES OF INDIA POST 4.3.1 Mail Services 4.3.1.1 Registered Post 4.3.1.2 Parcel Service 4.3.1.3 Value Payable Post 4.3.1.4 Surface Air Lifted Service 4.3.1.5 Speed Post-The High Speed Postal Service 4.3.1.6 Business Post - Mailing solutions for businesses 4.3.1.7 Express Parcel - Product Information 4.3.1.8 Business Parcel – Product information 4.3.1.9 Media Post –Marketing of Corporate Sector 4.3.1.10 Greeting Post 4.3.1.11. Logistics Post - B2B Express Distribution 4.3.2 Financial Services 4.3.2.1 Savings Account 4.3.2.2 Recurring Deposit Account 4.3.2.3 Time Deposit Account 4.3.2.4 Monthly Income Scheme Account 4.3.2.5 Public Provident Fund Account 4.3.2.6 National Savings Certificates

4.3.2.7 Postal Life Insurance 4.3.2.8 Money Remittance Services 4.3.2.8.1 Money Order 4.3.2.8.2 Electronic Money Order 4.3.2.8.3 Instant Money Order 4.3.2.8.4 MO Videsh 4.3.2.8.5 International Money Transfer Service 4.3.2.8.6 Electronic Clearance Service 4.3.2.8.7 Mutual Fund and Securities Distribution 4.3.2.8.8 Foreign exchange Services 4.3.3 Bill Mail Services 4.3.4 Direct Post 4.3.5 Retail Post 4.4 NORMS FOR VARIOUS POSTAL SERVICES 4.5 RECENT DEVELOPMENTS 4.6 SUMMARY

CHAPTER– IV ORGANIZATIONAL STRUCTURE AND SCHEMS OF INDIA POST

4.1 INTRODUCTION: This chapter concerned with the nature of administration and organization structure of India Post. In this chapter details of postal administration in India and organizational structure from top level to branch level has been explained. It also includes various schemes of India Post and the service norms. The span of the postal sector broadly covers collect letters, transmission of various types of letters and parcels, post office counter services related to letter and parcel delivery and other related services such as mail box rental. At the same time, post offices often provides a variety of services outside of the postal sector – pension’s payments, telephone or internet access, financial services and retail services. India Post has enforced the global communication revolution to study closely their products, operations, and the way they have conducted business for the past 150 years or so. Throughout the world postal services are generating losses. They are facing challenges of technological changes and their financial performance is becoming deprived, causing a lack of investment in the sector, hence no development in the quality of service, which reduces the usages of postal services. The pressures of a free global market and the responsibility of providing a universal service also act as constraints. All national and international rules and systems are entered as parameters in the software, which is used in all post offices nationwide as the basis for counter and back-room operations. In this way it is ensured that rules and regulations are applied correctly throughout the postal network. For providing postal services throughout the country the organizational structure of India Post is given as below. 4.2 ORGANIZATIONAL STRUCTURE OF INDIA POST: 4.2.1 Governance System: For providing postal services, the whole nation has been divided into twenty two postal circles. Each Circle is co-terminus with a State except for Gujarat Circle (which also administers the Union Territories of Daman & Diu and Dadra & Nagar Haveli), Kerala Circle (which includes the Union Territory of Lakshadweep) , Maharashtra Circle (which has within its jurisdiction the State of Goa), North East Circle (which comprises six North Eastern States- Arunachal Pradesh, Manipur, 90

Meghalaya, Mizoram, Nagaland & Tripura), Punjab Circle (which has within its administrative control, the Union Territory of Chandigarh), and Tamilnadu Circle ( which also administers the Union Territory of Pondicherry ). Each of these Circles is headed by a Pr. Chief Postmaster General or Chief Postmaster General. Each Circle is further divided into Regions comprising field units, called Divisions. A Postmaster General is the head of each Region. Planning and policy formulation at Headquarters: In India Post the postal service Board is the apex management body. It includes the chairperson and six members, joint secretary and financial advisor is an invitee to the Board. The area of personnel management, postal operations, technology training and implementations postal life insurance and investment of postal life insurance funds, Human resources development and planning is look after by the six member of the Board. The joint secretary and financial advisor to India Post provide finance advice to the postal service's Board. At the headquarters the secretary postal services Board help the board and is in charge of administration. The Chief General Managers business development, postal life insurance, mail business deputy director’s general directors and Assistant Director General of India Post give required support to the Board in running the service. 4.2.2 Postal Circles: The postal network of the country is divided into 22 postal circles for administrative ease; circles are generally co-terminus with a state with a few exceptions. A chief post master General is head of the circle. Each circle is divided into Regions comprising Division Postal/RMS, a Post Master General is head of each region in the circles and Regions there are other practical and supporting units like stamp depots, stores depots and mail motor service. 4.2.3 Operational Units : Post offices in the country are classified as head, Sub and Branch post offices; Branch post offices are mostly situated in rural areas. The sub-post offices are departmental offices situated in both rural and urban areas. Head post offices are situated in important towns and cities mostly at district level. Gramin Dak Seva post offices are situated in rural areas and are run by the Gramin Dak sewaks, who are not regular departmental employees, but function as agents of India Post. The sub-post offices are departmental offices located in both rural and urban areas, and is managed by departmental employees. As a result of this huge expansion of postal network, the 91

Indian postal network is the biggest in the world. The number of post offices is much higher than in a country like China which has a larger population and larger area than India. One post office in India serves 7176 persons covering an area of approximately 21.2 sq. kms and compares very favorably with China (One post office serves 19962 people and covers 145 sq. kms). Although this network out of 5.95 lakh settled villages, less than one third villages are having post offices. In addition against 2.34 lakh Gram Panchayat Villages, only 1.15 lakh Gram Panchayat villages have post offices. 4.2.4 Army Postal Service Core: Apart from these 22 circles, there is a separate division called the Army Postal Service to provide postal services to the armed forces. The APS is designated as another circle called the base circle. It is headed by the Additional Director General; Army Postal Service Officers cadre of Army postal services is drawn on deputation from the Indian posted service. About 75 percent of the employees of the Army postal service is also drained from India Post and the remaining employees are positioned by the army. 4.2.6 Some basic statistics relating to organizational structure of India Post:

Particulars Total No’s Total number of postal circles 22 Total number of postal regions 37 Total number of postal divisions 442 Total number of circle stamp depots 19 Total number of circle store depots 46 Total number of postal training centers 06 Total number of post offices in the country 155204 Total number of post offices in rural area 139046 Total number of post offices in urban area 16158 Number of Head Post offices 816 Number of sub- post offices 24835 Total number of GPO 17 Source: www.india post

DEPARTMENT OF POSTS ORGANIZATIONAL CHART Figure 4.1

Figure 4.2

4.3 SCHEMES OF INDIA POST: India Post provides a huge number of products and services such as all types of mails, parcels and money remittances, including value added services such as registration, insurance, express services, in addition to that doing agency and retail functions. The details of which are as follows: 4.3.1 Mail Services: The main function of post office is collection, dealing out, diffusion and delivery of mails. All postal articles whose insides are in the nature of message can be classified as Mails which includes Letters, Inland letter card, packets, Postcard, regular, registered, insured, value payable articles, speed post. These are classified as first class and second class mails. First class mails get free Air mail diffusion within India; whereas second class mails get air lift only if prepaid with air surcharge. These four stages of mail operation have a only objective, delivery of mail to its receiver. The mail is collected from 579594 letter boxes by 154979 post offices in the country. This is processed by a net work of 389 mail offices and 89 national speed post center and transported by road, rail and airlines throughout the country. Usually mails were handled on a regular line and their concepts were based upon primary rules laid down for its operations resulting more disadvantages and dissatisfaction to the customer. To overcome these weaknesses India Post has started course of action to evaluate and reform the mail operations starting from booking to delivery of mails. To create a computerized Mail network Automated Mail processing centre at major locations in the country has been set up. Devoted transport provision both road and air are made for efficient diffusion of mails. To increase the quality of mail processing, diffusion and delivery India Post has undertaken Mail network optimization project. The project aims to optimize the existing mail network with a view to make more efficient core mail operations and to bring in superior regularity and progress in the operational processes relating to mail processing, diffusion and delivery. The visibility of diffusion has been improved by providing track and trace facility for speed post and registered mail. The customer can track the mail through India Post website by using the unique barcode number. Project arrow launched in 2008 aims to develop the core operations of a post office which includes the enrichment of delivery efficiency for all kinds of articles. About 15000 plus post offices have been covered under project arrow. Mail business centre was conceptualized in important towns in the year 2006 as a key element of the 95 new model for Mail management. It focuses on one stop way out to the bulk mailers providing all popular actions and other value added services. Booking of registered articles, insured and Value payable articles, speed post were being provided at manually operated counters. In view of the very important need for providing the advantage of technology to the customers, the mail operations are now automated to develop efficiency of operations. Track and Trace facility is made available for speed post and registered post articles. These new facilities have improved consistency and reliability in mail delivery system in line with worldwide values and improved customer satisfaction. The post office saving Bank Scheme is the prime source of income for India Post with a consumer base of 238 Millions Saving Accounts in more than 154000 post offices. The total amount deposited of Rs. 4.05 lack crore as on 31.3.2011 a branch network double the size of all the banks in the country put together and with a different product variety, the post office saving Bank is the largest retail Banking network in the country. This post office savings Bank functions as an agency of the ministry of finance, Government of India. The Ministry of Finance pays an annual remuneration to India Post for the performance of the savings bank function at the rate fixed from time to time. At present eight savings schemes are operated from post offices across the country. These are savings Accounts, Recurring Deposit, Monthly income scheme, PPF, Kisan Vikas Patra,Time Deposit, National Saving Certificates and Senior Citizens Saving Scheme. The outstanding balance under all National saving schemes was Rs. 5189430.26 Million as on 31.3.2011. India Post has also provided services of social security schemes such as old age pension scheme, MNREGS etc, through the rural postal network. As on 30th Dec. 2011 almost 53.5 Million MGNREGA Accounts have been opened in post offices and wages amounting to nearly Rs. 2,66,270 Million have been paid to MGNREGA beneficiaries through 97709 post offices from corner to corner of the country. Some of the other major steps which have been undertaken by the India Post include disbursal of micro credit to women self help groups as a pilot project in association with NABARD. India Post has also tied up with the state Bank of India on a pilot basis for sourcing their assets, Liability and Investment products through the huge network of India Post. An agreement has also been signed between the India Post and State Bank of India in this concern. Smart card Accounts are being operated 96 through a point of sale device which consists of a mobile phone instrument, biometric card to check the recognition of the account holders and a battery operated printer. The day to day transactions are updated immediately with the back end server which is centrally located at the state Bank of India office in Mumbai. Postal life insurance (PLI) introduced in 1884, is the oldest life insurance plan for benefit of the Government and semi Government employees. Primarily planned only for the postal employees, today it caters to employees of the civil and military employees of the central and state Governments, Government aided educational institutions, Universities, Local Bodies, and Nationalized Banks. Autonomous Institutions, public sector undertakings of the Central and State Governments. Rural Postal Life Insurance (RPLI) scheme was introduced in 1995 for the benefit of rural areas with special importance on weaker sections and women workers. The Status of PLI/RPLI funds as on 31.3.2011 and business procured during the year 2010-2011 was Rs. 135192 and 96109 Million respectively. (Sum assured) philately-postage stamps, which began as a piece of paper in token of receipt of postage, has assumed additional functions. It is a mode of commemorating, celebrating and promoting national heritage and events. It is the brand image of India Post and a statement of sovereignty of nation. After independence, the medium of postage stamps was primarily used to emphasize the country's achievements in science and technology as well as its socio-economic development by depicting themes like the five year plans, Steel plants, Dams etc. Then, the country's rich cultural and natural heritage came to be showcase and many beautiful stamps were issued in thematic sets on art, architecture crafts, marine heritage, science, technology, defense and cinema. Great leaders of national and international position have also been honored with commemorative stamps, the most significant being Mahatma Gandhi, personalities, who have made contribution in areas like painting, literature, science, music, social upliftment etc, have also been pleased. In keeping with their double character as a Token of postage' and as cultural representative, there are two categories of stamps namely, authoritative and communicative. The first is meant for day to day use as a token of payment of postage on mail articles. The second on the other hand are planned and printed with greater aesthetic inputs. They are manufactured in limited quantities and generate great interest among philatelists and collectors. With parcels and packages, there are competitors who are local couriers or multi-nationals like DHL, UPS, FedEx etc. In 97 the financial sector dealing with the savings money orders, the competitors are the banks and established multinational companies such as western Union, Money Gram. The local Shops, Kiosks are threat to the retailing activities. 4.3.1.1 Registered Post: An article should be present at the window on the counter of post office for getting service. A receipt is given for registration at the post office window during the hours given for posting registered article. No such article shall also be accepted for registration, where it contains words to the effect that it has been, or is intended to be insured for any specific amount, or that is may contain valuable contents unless it is also to be insured. 4.3.1.2 Parcel: 1. Anything may be sent in a parcel excepting articles, the diffusion of which is prohibited. It may contain a single written communication of the nature of a letter or having the nature of a personal communication, addressed to the receiver of the same. 2. No written communication must be together with this in a parcel. 3. If a parcel is alleged to contain any written communication other than that permitted by sub-clause (1) it will be forwarded to its destination marked “For open delivery”. If on being opened in the office of delivery in the presence of the receiver or his certified agent it is found to have any written communication other than the one permitted by sub-clause (1), each such written communication shall be charged on delivery with double the letter postage. Any charges paid on the parcel shall not be taken into account in assessing this charge. If the receiver fails to attend as required or refuse to pay the charge in full it shall be returned to the sender from whom the charge will not be recovered. Insurance Procedure: An article planned for insurance should be presented at the window of the Post Office counter. It should be clearly written in words and figures, the insurance value without correction, on the top of the address side of the cover. The name and address of the sender must also be written on the cover in the lower left-hand corner or on a separate slip of paper, to be presented with the article should there be no space for his name and address on the cover.

4.3.1.3 VALUE PAYABLE POST The value payable service is planned to meet the requirements of persons who wish to pay for articles sent to them at the time of receipt of the articles or of the 98 bills or railway receipts relating to them, and also to meet the requirements of traders and others who wish to recover, through the agency of the Post Office the value of article supplied by them. Value payable postal articles can be posted at any post office that is a money order office for spread to any other post office that is a money order office. Surface Air Lifted (SAL) is one best mailing service from India Post. SAL mail is faster than sea mail yet cheaper than air mail-an ideal combination of air and surface transport for fast and reasonably priced mail deliveries. SAL mail will be Air Lifted between the country of origin and destination. However within the country of origin up to the office of exchange and in the country of destination from the office of exchange to the point of delivery, SAL mail will be transmitted by surface. 4.3.1.5 Speed Post-The High Speed Postal Service: Speed Post service is provided in more than 1200 cities in India, there are 290 Speed Post Centers in the national network and just about 1000 Speed Post Centers in the state network. Speed Post provides delivery ‘anywhere in India’ under contractual service. Speed Post provides money-back guarantee, under which Speed Post fee will be refunded if the consignment is not delivered within the available delivery norms. Speed Post Home Collection: With a view to provide convenience for the customers, Speed Post provides collection from the place of the customers through on-call collection and regular collection at some of the cities. Speed Post Passport Service: In a unique partnership, India Post and MEA have come together to provide convenience in getting passports. Applicants need to buy the Passport application form available with the Speed Post Centre, fill it and submit it along with the fee. Speed Post Centers will verify the forms; send them to the selected Passport Office for further processing and issue of Passport. The service is available only for issue of new passports and not for the renewal of passports. Speed Post International Service: Backed by Universal Postal Union, EMS Speed Post offers normal and faster service to 97 foreign countries. Be it an important letter or University application form, be it an export consignment or a business sample, Speed Post will take it from corner to corner with care. For international Speed Post tariff and destinations. 4.3.1.6 Business Post - Mailing solutions for businesses For a corporate customer looking for mailing solutions, Business Post services will make your task easy and convenient. Business Post demonstrates our 99 responsiveness to market demands in providing value additions to mail services, with the best possible delivery at the reasonable price. Total Mailing solutions: Business Post provides ‘total mailing solutions’ to 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. Customers 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 dispatch direct to destination post office and special delivery provision can also be made under Business Post. 4.3.1.7 Express Parcel Product Information Silent features: Express Parcel service will be available to both retail as well as business customers. Express Parcel 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. Minimum chargeable weight for which Express Parcel consignments will be booked is 0.5 Kg. Maximum weight of Express Parcel consignments which shall be booked across the Post Office counter by a retail customer shall be 20Kg. Maximum weight of Express Parcel consignments which can be booked by a contractual business customer at recognized centers is 35 Kg. All Express Parcel consignments shall be given door delivery irrespective of its weight. Business customers are provided pick-up facility from their location. Insurance: No compulsory coverage of insurance shall be necessary for Express Parcel consignments irrespective of weight or value thereof. 4.3.1.8 Business Parcel – Product information: Business Parcel is a contractual service, intended to furnish requirement of business customers for a reasonable and reliable distribution solution. Business Parcel provides a gainful distribution solution to its customers using surface communication modes. Minimum chargeable weight for which Business Parcel consignments will be booked is 2 Kg. Maximum weight of Business Parcel consignments which shall be booked by a contractual business customer is 35 Kg. All Business Parcel consignments shall be given door delivery irrespective of its weight. Corporate customers are provided pick-up facility from their premises. Insurance: No compulsory coverage of insurance shall be necessary for Business Parcel consignments irrespective of weight or price thereof. 100

4.3.1.9 Media Post (Advertisement): An innovative and effective vehicle for brand and marketing managers to communicate their corporate messages throughout the nation. Now, corporate brand could take the fast track and reach the masses at a reasonable cost with Media Post. India Post delivers 1,575 crore mails every year linking every slot and corner of the country through a network of 1,54,149 Post Offices and 5,64,701 Letter Boxes. Business organizations can use the following for your branding use. Advertisement on post cards, letters, aerogramme, postal stationary etc. Space sponsorship options on letter boxes. Every time a person sends or receives a postcard, an inland letter or an envelope, he gets to see corporate logo or your message. The Aerogramme even gives you the opportunity to make a global impact. Postcards, Inland Letters and Money Order Forms can carry your message in any Indian language or in English. Aerogramme will carry your message in English only. 4.3.1.10 Greeting Post A new variety of pleasant greeting cards brought to you by India Post. These cards come ready with pre-paid postage envelopes thereby eliminating the need to affix stamps: a distinguishing concept for the first time in India. What’s more beautiful, the postage stamps are an exact model of the cards inside. Through Greeting Post you can convey yourself absolutely on every occasion, festival or event. Few would overlook the warmth reflected in their beautiful designs and pleasing colors. This definitely makes them a complete joy to receive. The cards are being sold through the private distributors of the Greeting Cards and the stationary shops. The Cards and the envelopes with the embossed stamp will be sold together. Greeting cards are available at all major Post Offices. Greeting Post is yet another new product of India Post which include a card with envelop with pre- printed postage stamp upon the envelope. The envelope contains multi colored printed stamp, which is a small model of the blueprint that appears upon the card of 5 cm x 4 cm x 3 cm of the denomination of Rs. 5 written on the stamp. Thus you need not affix postage stamps on the envelope thus saving your time of going to post offices and standing in the queue. 4.3.1.11. Logistics Post - B2B Express Distribution: For a corporate customer looking for logistics solutions, Logistics Post services will provide you reasonable and efficient distribution from corner to corner in 101 the country. Logistics Post manages the total distribution side of the logistics facilities from collection to distribution, from storage to carriage, from order preparation to order discharge at the reasonable price. With a high growth of economy in India, transport and logistics take on a new aspect in any business. Logistics Post can offer to any demand for moving goods, parcels and consignments in terms of delivery target and quality of service. Further, it offers the possibility of monitoring the delivery progress at all times. Whether you want to hand out your computers from corner to corner of the nation or to send your auto parts to the distributors, Logistics Post provides you a perfect solution. 4.3.2 Financial Services: 4.3.2.1 Savings Account: Any individual can open an account. Cheque facility is available. Institutional Accounts of Institutions, Groups, other Accounts like Security Deposit account and Official Capacity account are not permissible. Rate of interest 4 percent per annum. 4.3.2.2 Recurring Deposit Account: Any single adult or two adults jointly can open an account. Advance Deposits get discount. Four defaults are allowed. Rate of interest 8.30 percent maturity value of a 5 Years RD account opened on or after 1.4.2013 with monthly deposit of Rs.10 shall be Rs. 744.53. Defaults can be paid within two months, Partial withdrawal facility available. After three years premature closure allowed. Pay Roll Savings Scheme is also available for employees of various Organizations. 4.3.2.3 Time Deposit Account: Any single adult or two adults jointly can open an account. Institutional, Group Accounts and Misc. account are not allowed. Any Trust, Regimental Fund or Welfare Fund not permissible to invest. 1 , 2 , 3 Year and 5 Year Time Deposit can be opened. In case of premature closure of 1 , 2 , 3 Year or 5 Year account on or after 01.12.2011, if the deposit is withdrawn after 6 months but before the end of one year from the date of deposit, simple interest at the rate valid from time to time to post office savings account shall be payable. 4.3.2.4 Monthly Income Scheme (MIS) Account To get a safe and sure way regular monthly income. Which is suited for retired employees/Senior Citizens or any one with high sum for investment. Rate of interest 8.40 percent. Maturity period - Five Years. No bonus on maturity i.e. 01.12.2011. Auto credit facility to S/B Account. Above scheme operates automatically, if you 102 open a saving bank account and give a request for automatic transfer of Monthly Income Scheme interest to Recurring Deposit through Saving Bank account. 4.3.2.5 Public Provident Fund Account: Ideal investment option for both salaried, and self employed classes. Non- Resident Indians NRIs are not eligible. Investment up to Rs. 1,00,000 per annum qualifies for IT Rebate under section 80 C of IT Act. Balances at credit of the subscriber in the existing PPF account shall allow interest at the rate of 8.70 percent per annum. Loan facility is available from 3rd financial year up to 5th financial year. 4.3.2.6 National Savings Certificates (NSC) NSC VIII Issue: This plan is planned for Government employees, Businessmen and other salaried classes who are Income Tax assesses. There is no maximum limit for investment. No Tax deduction at source. Certificates can be kept as collateral security to get loan from banks. IT Rebate under section 80C of Income Tax Act for Investment up to Rupees one lakh per annum. Trust and HUF cannot invest. Rate of interest is 8.50 percent. NSC IX Issue: No maximum limit for investment. It is available in denominations of Rs. 100, 500, 1000, 5000 and Rs. 10,000. A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor. Rate of interest 8.80 percent. 4.3.2.7 Postal Life Insurance (PLI): PLI was introduced on 1st February 1884 with the approval of the Secretary of State (for India) to her dignity, the Queen Empress of India. It was essentially a scheme of State Insurance mooted by the then Director General of Post Offices, Mr. F.R Hogg in 1881 as a welfare scheme for the benefit of Postal employees and later extended to the employees of Telegraph department in 1888. In 1894, PLI extended insurance cover to female employees of P and T Department at a time when no other insurance company covered female lives. It is the oldest Life insurer in this country. In the beginning, the maximum limit of life insurance was only Rs 4000 which has now increased to Rs. 10 lacks for all schemes combined - Endowment Assurance and Whole Life Assurance. It now covers employees of Central and State Governments, Central and State Public Sector Undertakings, Universities, Government aided Educational institutions, Nationalized Banks, Local bodies etc. 103

4.3.2.8 Money Remittance Services: Remittances are a rising and an important area for India Post. India Post offers different remittance services to gather the demands of different sections of the society. The remittance services of India Post are accessible for both domestic and international locations. 4.3.2.8.1 Money Order: It is a domestic money transfer facility through post office. Money send through money order is paid at the door-step of the payee and this service is available in all post offices. Maximum limit for amount can be remitted through a single money order is Rs.5000. Remitter can pay the amount in cash or cheque at the counter of post office and the charges for the service is 5 percent. Remitter gets acknowledgement signed by the payee. There is a small space provided for sending short message along with the money order. 4.3.2.8.2 Electronic Money Order (EMO): It was started on 10th October 2008. This system planed to simplify the transmission process of money orders by ensuring quick and secure electronic transmission. Time taken for diffusion is very less and amount is paid within a day of booking. The amount of money order is paid in cash at the door step of the payee. Service for remitting money from one to one, one to many and many to one is available under this scheme. EMO can be booked at authorized PO’s, but paid through all delivery POs in the country. Charge for EMO is same as applicable to money order. The EMOs can be tracked through India Post website. 4.3.2.8.3 Instant Money Order (IMO): India Post provides instant Money Order service, which is Instant, Safe, Reliable and suitable. Amount from Rs.1,000 to Rs.50,000 can be remitted through selected IMO Post Offices. It is an instant web based money transfer service. Remitter has to fill-up approved form and should produce valid photo identity. Money Order charge varies based on the amount of remittance. There are 33 standard messages for selection by the remitter. Payee has to visit the post office, fill up the standard form and produce the identity proof to receive the money. Amount received can also be credited to the savings bank account of the payee. 4.3.2.8.4 MO Videsh: This is an international money transfer service presented by India post to most foreign countries. Outward transfer of funds is payable to beneficiaries by crediting 104 the payment to the bank account of receiver in the destination countries. Each outward remittance shall not exceed 5000 USD and maximum 12 outward remittances are allowed in a year. This service is available in all computerized post offices. The charges for M O Videsh differ with the amount to be transferred. 4.3.2.8.5 International Money Transfer Service: India post is also providing inward international money transfer through collaboration with western union money transfer and Money gram. The service is safe, fast and reliable. It is a quick and easy way of transferring personal remittance from abroad to receivers in India. Money can be received from 195 countries through identified post offices. Recipients can receive money in minutes after the remitter remits money. A maximum of 2500 USD can be received at a time. 12 transactions can be received by a single beneficiary in a calendar year. Amount up to Rs.50000 in cash and more than that in cheque or credited to savings accounts in PO. Recipient to provide sufficient information to establish his identity and proof of residence. The service for receipt of WUMT is available in 7212 Post Offices and money gram service is available in 500 post offices. 4.3.2.8.6 Electronic Clearance Service (ECS): ECS scheme provides alternative method for bulk payment, payment of interest/salary/pension/dividend. The service was started on 9th August 2003. ECS is offered by India Post in c/w payment of monthly interest in Monthly Income Scheme. Under ECS, depositors of MIS accounts get their interest mechanically transferred and credited into their accounts on due dates at designated Bank of their choice. Currently the service is available in India Post of Posts 15 RBI locations and 21 SBI locations. 4.3.2.8.7 Mutual Fund and Securities Distribution Service: The Post Office has conventionally 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, started 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. After that from 15th June 2001 onwards, the service was extended to cover post offices in all major capital 105 and other cities all across the country. Presently select schemes of Principal, SBI, UTI, Franklin Templeton and Reliance Mutual Fund are retailed through designated post offices in the country. 4.3.2.8.8 Foreign exchange Services: High growth Indian economy tied with globalization has resulted in thousands of Indians going abroad for travel, studies and business. Similarly, there is a huge inflow of foreign tourists visiting India on vocation and business. This has resulted in the need for a reliable and quality service provider for purchase and sale of Foreign Exchange. Each one of them requires reliable, reasonable and convenient Foreign exchange services. At many places, there is no Bank or other facilities to avail foreign exchange. India Post, with a network of more than 155,000 post offices, is best balanced to offer Forex services in an efficient and reasonable manner. Now India Post, in alliance with HDFC Bank, provides Forex services through select Post Offices across India. Forex services are subject to regulations of Reserve Bank of India. 4.3.3 Bill Mail Services Exchange of information in the nature of financial statements, bills, monthly account bills or any such other items of similar nature may be posted by a service provider to customers at least once in 90 days under this service. The Bill Mail Service does not include communication in the nature of letter mail or having personal communication or exclusive commercial publicity material. Inclusions (those permitted under Direct Post) are permitted at Rs. 0.25 per insertion. The least quantity of articles to be posted at a time is 5000. Rate of postage will be Rs. 3.00 for a weight not exceeding 50 grams and Rs. 2.00 for additional 50 grams or a part thereof. The mails will be received at recognized location provided. 4.3.4 Direct Post: Direct Post is the un-addressed element of Direct Mail, and would comprise of un-addressed postal articles like letters, cards, brochures, questionnaires, pamphlets, samples, promotional items like CDs/floppies and Cassettes etc., coupons, posters, mailers or any other form of printed communication that is not forbidden by the Indian Post Office Act 1898. 4.3.5 Retail Post: Retail post, one stop shop for all mailing needs. Department of Post is being developed as a one-stop shop to provide a range of utility services to the customers. 106

Retail Post, one of the key brands of India Post, offers utility services to common man, thus providing convenience and affordability at the door steps of the common man. With Retail Post, India Post will be leveraging the vast network of more than 1,50,000 post offices across India. Under Retail Post, India Post offer a range of services including the collection of electricity bill, telephone bills, insurance premium and collection of taxes and fee for the Government etc. Further under Retail Post, the Post office sells application forms of UPSC, SSC, AFMC, Universities etc. India Post Passenger Reservation System (PRS): In order to provide Railway Tickets at doorstep of the public, Railway Reservation Tickets of all classes is booked at select Post Offices. Post Forex India Service: India Post provides exchange of foreign currency and travelers cheques through select Post offices. This is done in association with HDFC Bank. India Post Gold Coins: In alliance with RML and WGC, India Post sells gold coins of the denomination 0.5 g, 1 g, 5 g and 8 g of 24 carat. The gold coins are packed in a sealed cover with the certification from Valcambi, Switzerland. It has the benefits like internationally recognized certification, low risk of duplication, quality packaging, product standardization, and numbering and assayer certificate. E-Payment: E-Payment is a elegant option for businesses and organizations to collect their bills or other payments through Post Office network. When businesses require collection of bills and other payments from customers from corner to corner of the country, Post Office provides them a simple and convenient solution in the form of e- Payment. E-Payment is a many-to-one solution which allows collection of money (telephone bills, electricity bills, examination fee, taxes, university fee, school fee etc.) on behalf of any organization. The collection is consolidated electronically using web based software and payment is made centrally through cheque from a particular Post Office of biller's choice. The information regarding the payment can be had by the biller online. The MIS will contain the five fields of biller's choice like name, telephone number, application number etc. The service is currently available through more than 14,000 Post Offices across the country. There is no agency in the market today with a large reach and established trust as the Post Office where the public can comfortably deposit all their bills in their region.

107

4.4 NORMS FOR VARIOUS POSTAL SERVICES: India Post is proud to have the biggest postal network in the world. Our service area continues to expand to reach people even in hilly, difficult and remote terrains. At the same time there is a constant attempt to develop our services or operations with modern ideas and introduction of technology. Citizen's Charter Commitments to Customers/ Clients:  India Post serve all residents of India and we are the main service provider for rural citizens for mails and financial services.  Public institutions, private businesses and print media,  Government organizations,  Other postal administrations,  Philatelists  Mails Services: 1. Letters, postcards, Inland letter cards, book packets, value payable post, parcels, Flat Rate Box, Logistics Post Registration and insurance of postal articles and parcels covered by such facility. 2. Premium mail services like Speed Post, Business Post, Direct Post, Bill Mail Service, Express Parcel Post, etc. 3. Delivery services are provided by the selected delivery post offices and Branch Post Offices in villages.  Financial Services: 1. Money Transfer – Money Order, Instant money order, MO Videsh, Indian Postal Order, etc. 2. Post Office Savings Bank- Small Savings Schemes and Savings Certificates. 3. Postal Life Insurance and Rural Postal Life Insurance.  Philately: 1. Promotion of philately, 2. Issue of definitive postage stamps. 3. Issue of commemorative and special postage stamps. 4. Delivery through Philatelic Bureau and counters as well as through e-post office.

108

 Counter Services: 1. Counter services are provided from post offices (Departmental and Branch Post Offices), Mail Offices or any other outlet designated for the purpose. These include: 2. Sale of postage stamps and postal stationery etc. 3. Booking of registered, insured, Speed Post and other mail articles etc. 4. Booking of money orders, various transactions relating to Post Office Savings and Postal Life Insurance (PLI)/Rural Postal Life Insurance (RPLI) etc.  E-Post Office for anytime anywhere transaction related to instant money order, electronic money order and philately products.

Table 4.1 Expectations from Service Recipients Sl. Expectations from Service Recipients No. 1 Mails Services Address of receiver and sender should contain House Number, Name of Street, City, District, State and Pin Code. 2 Mails Services Name of village of receiver and the name of the delivery Post. Branch Post Office of the receiver.

3 Mails Services Phone number of the sender and receiver. 4 Mails Services To conform to packing, size and content requirements for registered and Insured articles and parcels. 5 Mails Services To comply with instructions for articles banned by 6 Mails Services To affix correct amount of postage on mail articles. 7 Mails Services Give Mail Box on the ground floor for each address in the multi storied building. 8 Mails Services Inform the delivery post office of the change of address and provide the forwarding address. 9 Mails Services To give appropriate authorization to his/her delegate for

109

receiving delivery of registered, insured, money orders and Speed Post etc. in his/her absence. 10 Money Order/Mails Cooperate by producing ID on demand by Postmen or at Services the counter. 11 Money Order/Mails Insist on obtaining receipts for articles and money orders Services booked. 12 Savings Bank / Cash Provide Know Your Customer (KYC) documents as Certificate Services prescribed. 13 Savings Bank / Cash Check the Agency Number, Authorization and validity of Certificate Services the Small Savings and Postal Life Insurance Agents and

Rural Postal Life Insurance Agents before carrying out any transactions with them. 14 Savings Bank / Cash Savings Bank / Cash Certificate Services:- To keep pass Certificate Services book updated and secure. Obtain receipt if passbook is handed over to the post office and check that the last balance in the Pass Book matches with that written in the receipt. 15 Savings Bank / Cash Make nominations for all Post Office Savings Bank Certificate Services Accounts, Savings Certificates, Postal Life Insurance and

Rural Postal Life Insurance. 16 Financial Services Not to disclose the code numbers of instant money orders and MO Videsh communicated by the Post Office to any person other than the recipient 17 Financial Services To bring the officially valid ID for MO payments. 18 Savings Bank / Cash Collect receipt when handing over requests for transfer or Certificate/PLIServices deceased claim cases. 19 General / Public To lodge a complaint, if so desired; within 60 days of the Grievance Redress transaction / availing of a service, relating to any Services deficiency in service.

110

Table 4.2 Norms for various services Services/Transaction Success Indicators Service Unit Standards Mails Time from posting/booking to · Excludes day delivery of posting, * Local – within Municipal City holidays and limits, Sundays.

** Metro- Delhi, Mumbai, · Maximum time Kolkata, Chennai, Hyderabad ·Articles posted and Bengaluru. before cut off time. Delivery of Speed Post Local* and between Metro 2 articles & First class Cities** Days mail i.e, letters, post Rest of India 4 - 6 cards, Inland letter

cards, etc. Delivery of Registered / Local* and between Metro 3 Insured articles, Express Cities** Parcel Post, Parcels, Rest of India 5-7 Book Packets, Registerd

Newspapers, etc. International EMS Exclusive of time taken in 4-10 articles customs examination. Instant Money Order – Booking 15 Minutes payment on same day. Payment on production of code 20

and ID (service available at specified offices) Money Order Local* and between Metro 3 Days Cities** Rest of India 4-6

111

Transfer of S. B. Time taken for opening of 1 Accounts account at the post office where

transfer is sought

Days -When request is for transfer of accounts within the same Head Post Office -When request is for transfer of 7 accounts in post offices which are under different Head Post Offices. When request is made at the 20 transferee post office Settlement of customer Time taken for settlement 7 Days requests for deceased starting from the time of receipt claims, issue of of completed documents. Duplicate Passbook and interest posting (in office other than Head Post Office) Discharge of Savings Time taken from the receipt of 30 Days Certificates at post application for discharge of office other than the certificates at the post office. office of purchase Transfer of Savings Time taken from the receipt of 30 Days Certificate application for transfer at the post office. Issue of Duplicate Time taken from the receipt of 30 Days Certificate application along with required documents:at the post office of issue of the Certificate. Issue of Postal Life Time taken from the receipt of 15 Insurance and Rural completed documents

112

Postal Life Insurance

Acceptance Letter and Policy Bond

Settlement on Maturity Time taken from the receipt of 30 of PLI/RPLI policy completed documents Days Settlement of claims on With nomination 30 death of PLI/RPLI Without nomination – (time policy holder taken after production of required documents.) Involving investigation 90 Transfer of PLI/RPLI Time taken for settlement on 10 policy from one Circle receipt of request to another Paid up Value of policy Time taken for settlement on 30 receipt of request

Revival and conversion Time taken from receipt of 15 of PLI/RPLI policy request

Settlement of customer Time taken for settlement on 10 requests for loan against receipt of request Days policies, change of address, change of nomination, assignment of policy and issue of duplicate policy bond Counter Services: Transaction time at the counter 5 Booking of articles (excluding waiting time in Registered, Speed Post, queue) Value Payable, Insured,

Money Order, eMO, Premia collection for Minutes PLI/RPLI, sale of forms, bill collection, Savings Bank and Savings

113

Certificate Transactions - Deposit, Withdrawals, updation of pass book Counter Services: Transaction time at the counter 15 Savings Bank and (excluding waiting time in Savings Certificate queue) Transactions-Opening of Account, Closure of Accounts, Issuance of Certificates, Discharge of Certificate Grievance Redress Time from lodging of complaint 7 Days Mechanism: By post or other means acknowledgement of complaint. (Instantaneous in case of web registration) Settlement of Time from lodging of complaint 60 Days Complaints Settlement of complaint 90 Days in cases requiring investigation

Compensation India Post is not liable for any loss or damage to letters carried by the ordinary letter service. But in some cases you are entitled to compensation depending upon the type of service that you have availed. Compensation claims should be submitted to the Postmaster of the office where you booked the article after completing the formalities. However it is suggested that you send your valuable mail either by Speed Post or Registered Post. Norms for Administrative Functions: With respect to official business at the postal headquarters, the time limits/norms as prescribed by Ministry of Finance and Planning Commission are

114 adhered to on budget related matters. Norms as laid down by O&M Unit are followed to deal with the following items: Parliamentary references Same day. Audit Paras Two weeks. Inter Branch One week. references/clarifications VIP references One week. Public references Two weeks

As per O&M guidelines, cases are disposed by not more than three levels. Ordinarily not more than two working days are taken for disposal of a case by the officer of the Division. List of awaiting cases are reviewed by Divisional head on monthly basis as approved. Table 4.3 Norms evolved (internal) for disposal of various Items of Work in Administrative Section Sl. No Item Max. Number of working days for disposal of applican 1. Forwarding of applications for higher posts 10 2. Grant of Leave 15 3. Grant of Increment During the 1st week of the month in which increment is due. 4. Honorarium 15 5. Furnishing of various types of reports By the due date 6. Verification of various types of applications 05 e.g. GPF, LTC advance etc. 7. Pay fixation 10 8. Issue of NOC 15 9. Encashment of unutilized earned leave after 07 retirement 10. Acceptance of nominations of DCRG/Family 10 Pension/GPF

115

Table 4.4

Norms for disposal of cases in Cash &Accounts/Pay Bill Section Sl. No. Item of work Working days Remarks required for disposal of case 1. GPF Advance/withdrawal 5 2. GPF & Retirement - On the date of retirement Benefits (Except CGEGIS) provided requisite papers received from DA (P) 3. CGEGIS 30 Subject to availability of Service Book complete in all respects 4. LTC/TA/FTA Advance 5 5. Final settlement of 5 LTC/TA/FTA bills 6. Festival Adv - 2 days before the festival. Application for festival advance must reach seven days before the date of festival 7. Honorarium/ OTA/Tuition - Payment one in a month on 25th Fee of each month in r/o the applications received by 15th of the month. 8. HBA 30 9. Motor 15 Subject to release of funds by Car/Computer/Scooter Budget Section 10. Cycle & Other Short term 7 advances 11. Assignment of CGEGIS 5 fund to financial institutions 12. Medical Advance 5 13. Medical Reimbursement 25 Subject to the claims being

116

complete 14. Telephone Bills 5 15. Contingent Bills 5 16. News Papers Bills 5 Payment once in a month on 20th of each month in r/o the applications received by 15th of the month. 17. Conveyance/Tea/Other 5 Petty bills 18. Air India/India Air Lines 20 Bills

19. Assessment of Income Tax - Twice during the year. Once in Nov. of each year & the final assessment in Feb. of each year. 20. Issue of Form 16 - 30th April of each year 21. Submission of Income Tax - 31st May of each year Return in Form 24 22. Fixation of Pay 15 23. Arrears after pay fixation 30 24. Periodical Increment - By 15th of each month Certificates 25. Disbursement of salary - On the last date of each month, apart from the month of March payment for which is made on the Ist working day of April. 26. Credit of undisbursed A/c - Before salary date 27. Schedules - By 10th of each month 28. Service Verification 15 29. GPF Statement of Class IV - By 31st July of each year Staff 30. GPF Statement of Other Staff 15 After receiving from DA (P)

117

31. Reconciliation of Accounts - By 10th of each month with DA (P) 32. Payment of DA arrears 5 33. Payment of Bonus 10 34. Pay Advance 5 35. Pay Certificate/LPC 15 36. Deposit of Cheques to P.O. 2

37. Payment by Cashier 2 38. NDMC/MCD Guarantee 2 39. RE/BE/FG - As per scheduled time 40. Parliament Questions - -do- 41. Periodical Statements - -do- 42. Audit Objection - -do- WWW. India Post

Norms for opening for post offices in rural areas: The following norms for opening of Branch Post Offices in rural areas came into effect from 1st April, 1991. Population 1. In normal areas 3000 population in group of villages. 2. In hilly tribal desert and inaccessible areas, 500 population in an individual village or 1000 in a group of villages. Distance 1. In normal areas, the minimum distance from the nearest existing post office will be 3 km. 2. In hilly, tribal, desert and remote areas, the distance limit will be the same except that the hilly areas, the minimum distance limit can be relaxed by the Directorate in cases where such relaxation is defensible by special situation which should be clearly explained while submitting a proposal. Anticipated Income 1. In normal areas, the least estimated revenue will be 33.33 % of cost. 2. In hilly, tribal, desert and inaccessible areas, the least estimated income will be 15% of the cost.

118

Norms for opening of post offices in urban areas: 1. Primarily the SO should be self supporting but at the time of the first annual review, it should show a 5% profit to be eligible for further retention. 2. The least distance between two post offices is 1.5 km in Cities with population of 20 lakhs and above and 2 km in urban areas. 3. No Extra Departmental PO will be opened in future in urban areas. 4. Heads of circles will continue to have powers to relax the distance conditions in 10% of the cases but this power should be exercised personally and not by allocation. Norms for delivery post offices. 1. The projected delivery office should have a well demarcated delivery field so as to reduce errors in TD Sorting. 2. The lowest strength of postmen acceptable on the existing basis should not be less than 7. 3. There will be no necessity of a minimum distance between the projected delivery office and the nearest existing delivery office in view of 1 above. 4. In case of new townships/individual estates and new colonies, heads of circles and regions will have the power to relax the condition of a minimum contingent of 7 postmen to open a delivery sub office or to change a non- delivery office in to a delivery office. 4.5 RECENT DEVELOPMENTS: Indian Post touches the lives of People more closely than perhaps, another Government agency. It has conventionally been found to be a very important tool of mass communication and for fast delivery of information amongst people. It has continued to be an important help to the development of Industry trade and commerce and has huge scope in facilitating e-commerce. The importance of improved efficiency and productivity was never felt as vital in the last three decades as it is today for survival and sustain feasibility of postal service in India. With advanced statistical methodologies and measurement techniques, considerable progress has been made towards considerate productivity, efficiency uniqueness of banks and industries in the developed countries. Project Arrow: An arrow, well aimed, will reach its projected goal straight, safe and sure! Similarly, the "Project Arrow", being conceptualized and implemented by India Post , 119 under the Ministry of Telecommunications, aims to make postal services sharp, straight and confident. The project will see to it that the customers will directly feel the difference in the quality of postal services. Ariyaloor was the first post office in Tamilnadu to have implemented "Project Arrow". It was inaugurated in August 2008 by Shri D. Raja, Minister of State for Telecommunications. Project Arrow is an attempt at the integrated modernization of postal services. It aims at modernizing the look, feel and efficiency of the services rendered by the post office. The project also aims at making the services of the postal department as straight, safe and sure as that of a well aimed arrow! For this purpose, the project has been divided into two sections. Less than one section branding of services, use of modern information technology devices, integration of human resources and development of infrastructure is being achieved. This section mainly is an attempt at improving the look and feel of the service. The second part of Project arrow is aimed at improving all the core areas of the postal services. Thus, the aim is to renew and make more effective services like mail, savings bank operations, improving quantum and quality of remittances and developing a better quality of counter services and customer services. As a part of the project, most post offices including Ariyaloor, which have been included in the first phase of the project, are in the process of completing basic documentation about the post office, its service area, customers, banking particulars etc. Development of new and better infrastructures like buildings, furniture etc also comes under this section. Training of staff and development of adequate hardware are the other principal components of Project Arrow. In the initial, pilot phase of Project Arrow, fifty post offices have been selected. In the second phase 450 post offices will be covered. The final phase is planned to modernize 4500 post offices, covering all the parts of the country. The aim is to cover 4500 post offices under the project within the next two years. In the Southern Region, 33 post offices have been covered so far. Nineteen more post offices have been recognized for inclusion in the project. It is also to be renowned that the Project Arrow is a green initiative. The project aims to minimize the use of paper, thus help in preserving trees and green cover, by making all internal correspondence based on email alone. Another important aspect of Project Arrow is that it allows for independent assessment of the quality of the program. For this purpose, an independent rating agency is being approved to rate the services of the Project Arrow using a five star rating formula. Best achievers under the program will be rewarded suitably and their services will be recognized. The final aim of Project 120 arrow is to become a working model for integration of services of the post office. The project will see to it that the customer will feel the difference. 4.6 SUMMARY: The details of postal administration in India and its organizational structure from top level to bottom level is explained and various schemes of India Post in mail and financial services are elaborated in detail. The innovative services launched by India Post and norms for various services are also explained in detail. The plans of India post for internal technological changes and computerization etc, through project arrow also explained systematically in this topic.

121

REFERENCES: 1. Atmanand(1997)“Productivity and Management of State Level Public Enterprises, Mittal Publication, New Delhi. 2. Deepak Sharma (2011) “Performance Management and Appraisal System” Published by Regal Publication New Delhi. 3. Nikam M.D. and Dr. Gawali S. N. (2009) “Business Administration” Published by Success Publication, Pune. 4. Swarajyalakshimi C.(2005)“Human Resource Development in Public Enterprises, Published by Discovery Publishing House, New Delhi. 5. www.india post.

122