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PROJECT SUBMITTED TO NIS ACADEMY, IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE

PROJECT SUBMITTED TO NIS ACADEMY, IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE ADVANCE DIPLOMA IN

ADVANCE DIPLOMA IN MANAGEMENT AND APPLIED SKILLS

CURRENT SCENARIO OF POSTAL INVESTMENT

Mrs. Rajlaxmi R.Bhosale.

The NIS Academy, Aurangabad.

Mr. Rushendra S. Tarte

Registration No.:

Name of the Guide

R14308090294

Name:

1

The NIS Academy, Aurangabad. 2

The NIS Academy, Aurangabad.

2

PROJECT SUBMITTED TO NIS ACADEMY, IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE ADVANCE DIPLOMA IN MANAGEMENT AND APPLIED SKILLS

PROJECT SUBMITTED TO NIS ACADEMY, IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE ADVANCE DIPLOMA IN

CURRENT SCENARIO OF POSTAL INVESTMENT

Mrs. Rajlaxmi R.Bhosale.

The NIS Academy, Aurangabad.

Mr. Rushendra S. Tarte

Name of the Guide

3

4

Date: 04/03/2009

Official Address with Seal:

Name: Mr.Ganesh Salunke

Signature of the Guide

Signature of the Director

Name: Ms. Rajlaxmi Bhosale

The NIS Academy, Aurangabad.

Registration No ._______________

work done by Mr. Rushendra S. Tarte

CERTIFICATE

during the period of his/her study under my

Skill/ Post Graduate Diploma in Applied Management.

Place: Aurangabad. Date: 04/03/2009.

Certified that the project CURRENT SCENARIO OF POSTAL INVESTMENT is

guidance for the partial fulfilment of Advance Diploma in Management and Applied

The NIS Academy, Aurangabad. 5

The NIS Academy, Aurangabad.

5

I take this opportunity to express my deep sense of obligation to management Post Office , Aurangabad City for their kind permission to undertake this study in their organization and also extending to me all the guidance and help in completing the project work successfully. My special thanks to the Senior Post Master for initiating me in this study and extending their cooperation in providing their related information.

Any research is never an individual effort. It is contributory efforts of many hearts, hands and brains. I sincerely feel that the credit of the project work could not be narrowed down to only one individual. As the whole work is the outcome of integrated efforts of all those concerned with this, through whose cooperation and effective guidance I would achieve its completion.

It extends my heart-felt gratitude to Mrs. Rajlaxmi Bhosale (project head) and Mr. Ganesh Salunke (director) The NIS Academy, Aurangabad for their timely assistance. I will always be obliged to them whose love and blessings have been a source of inspiration and courage to undertake the studies in pursuit of knowledge and to face the vicissitudes of eventful life.

The NIS Academy, Aurangabad.

ACKNOWLEDGEMENT

YOURS SINCERELY

THANKING YOU

6

The report discussed following important aspects by which I achieved my primary and secondary objectives:- What are the criteria for the selection of a postal investment schemes while investing? From where would they like to get the services? Are they satisfied with the services provided by the Postals? What kind of features and offers should we focus on to attract clients? What is the main source of information the customer gets to know the facilities of the postal investment schemes?

Every student of F.Y.MBA is required to undertake a project and submit the same for the partial fulfillment of the course. It is also very necessary to acquire practical knowledge on the specialized field against theoretical base. The topic I have “TO STUDY THE CURRENT SCENARIO OF POSTAL INVESTMENT”. The aim of the service provided is to satisfy target customer’s need and wants. Understanding customer’s buying and knowing customer is never simple.

Investment must also examine buyer’s level of involvement and the number of brands that are actually available in market. The report consists of tables and graphical presentations of the data gathered by the survey. In report I have discussed all those concerned which customers look before investing in postals.

be initiators, influencers, deciders, buyers or users. Postal

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PREFACE

People

can

7

Sr. No

Content

Page No

1

Executive Summary

8

2

Objective of the Project

16

3

Methodology Used

17

4

Data / Information Collected

19

5

Interpretation of the data

46

6

Information collected

50

7

Suggestions for Improvement

56

8

Conclusion

57

9

Appendix

58

The NIS Academy, Aurangabad.

INDEX

8

The NIS Academy, Aurangabad.

9

Though fundamentals of Indian economy continue to be sound, the country is no longer an island. There has been some real, and some perceptional, effect on the financial sector in India in the wake of global financial meltdown. Investors did have a re-think on their options. Even at the best of times, a sound investor spreads his risk, and keeps a good share of his investible income in secure instruments. Post Office has always offered a range of such secure investment/savings options like Monthly Income Scheme (MIS) Recurring Deposits (RD), Time Deposits, Public Provident Fund (PPF), NSS and various Savings Certificates. In the wake of recent uncertain financial climate, a much larger number of investors have re-discovered the wisdom of investing/saving with the Post Office. Though the exact figures would become available in the next few days, it is already clear that the investment in Post Office savings schemes has increased substantially. Maharashtra Postal Circle has the largest number of live Post Office Savings accounts in the country and the number has been increasing every year. The number of Life Savings Accounts in Maharashtra Postal Circle has been increased from 1.59crores in 2004-05 to 1.92crs in 2007-08. The gap between revenue and expenditure had been narrowing down significantly till before the pay revision on account of acceptance of recommendations of the 6th Pay Commission. The number of new products and services is very wide ranging. A few of these are:

The Department of Posts has the biggest reach with over 1, 55,000 post offices. Also, the domain knowledge, especially of the postmen, is unquestionably far superior to any other organization. In fact many organizations like Registrar General of India and even municipal corporations and a host of other public and private organizations rely on domain knowledge of the postmen for surveys, verification etc. Most customers who value their mail trust only Post Office to deliver. In fact there are many occasions of large corporates going back to India Post, even at higher prices, after they found that percentage of articles returned/remaining un-delivered in the case of Post Offices was less than 1% compared to about 20% in case of other competitors like private couriers or Angadias.

Speed Post traffic in Maharashtra & Goa Postal Circle grew at nearly 50% last year (2007-2008) compared to about 40% at All-India level. In fact, Speed Post traffic and revenue has been growing at a robust rate in recent years. For over 100 years, law has already provided for a monopoly to India Post for booking, transmission to imposing penalties. It has sought to hold its place in the market by providing quality service, and has been reasonably successful in that, as explosive growth in Speed Post traffic would testify.

The fact that Speed Post traffic grew at nearly 40% last year (2007-2008) compared to market growth of estimated 20%, clearly shows that Speed Post continues to grow from strength to strength, and is the market leader in express business.

1,55,000. POST OFFICESS IN INDIA

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NON POSTAL INVESTMENT

SPEED POST

10

franking

* Address verification and Address database Curing facilities at reasonable prices to ensure that your mail pieces do not get mis-delivered or delayed. In the next few days, the India Post is also going to introduce Worldnet Express, a new world class, time bound international express service from select cities in India, in collaboration with Deutsche Post. The booking will be done by select post offices, and transmission from India and delivery in foreign countries would be done by Deutsche Post. Complete track & trace facility and time bound delivery would be a part of the standard service. India Post in Mumbai is going to be the gateway for international parcel traffic, activation of post offices based international network for international money remittance etc. India Post will introduce hand held devices for delivery of Speed Post articles. A pilot for this is likely to start operations within 2 months. Vehicles would be provided to deliver staff to affect delivery in a more efficient manner and to cover larger territory.

* A massively augmented Speed Post network that touches every city and town in the country; and a very competitive rate of Rs.12 for local (including suburbs), and One India One Rate of Rs.25 for any where in India for articles weighing up to 50gms. In addition, volume discounts, pick up and credit facility is also available. Tear & water resistant envelopes are also being introduced soon for Speed Post.

Electronic Intimation

of

Delivery

(e-IOD)

facility

bundled

with

it.

* Electronic Intimation of Delivery (e-IOD) facility@ only 50 paisa per article for all

classes

of

article,

including

greetings,

Bill

Service

Mail

etc.

* Customized business solutions and business packages for corporate customers. For example, setting up of Mail Business Centre, dispatching mail directly from premises of customers to destinations (sometimes even by hiring dedicated private

* Total mailing solutions, including pre-mailing facilities like printing, addressing, folding, inserting, enveloping, sealing, franking, mailing and more under the brand Business Post.

* Bill Mail Service at very competitive price of Rs.3per local article and National Bill Mail Service (NBMS)@Rs.5 per article other places. The NBMS has a free

The NIS Academy, Aurangabad.

preparation lines

POSTAL SERVICESS

their mailers.

transport

installation

in

customers

machines

same),

online

mail

and

the

the

for

of

of

11

<a href=Type Agency of Indian government ( government semi-monopoly ) Founded 1764 Headquarters New Delhi, India Key people Ms. Radhika Doraiswamy, Director General Industry Postal Department Employees 520,191 (As of 2007 (in Delhi) Website www.indiapost.gov.in DEPARTMENT OF POSTS The NIS Academy, Aurangabad. 12 " id="pdf-obj-11-4" src="pdf-obj-11-4.jpg">

Agency of Indian government (government semi-monopoly)

Founded

1764

Headquarters

New Delhi, India

Key people

Ms. Radhika Doraiswamy, Director General

520,191 (As of 2007 (in Delhi)

DEPARTMENT OF POSTS

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Mr. W.K Tirankar (Senior Post Master), Head Post Office, Juna Bazar, AURANGABAD. (M.S.)
Mr. W.K Tirankar
(Senior Post Master),
Head Post Office, Juna Bazar,
AURANGABAD. (M.S.)
Mr. Bujade (Money Transfer Department), Head Post Office, Juna Bazar, Aurangabad. (M.S.)
Mr. Bujade
(Money Transfer Department),
Head Post Office, Juna Bazar,
Aurangabad. (M.S.)
SPECIAL THANKS
SPECIAL THANKS

Who helped us Exploring and imparted us Knowledge….

AURANGABAD. (M.S.)

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13

Lord Dalhousie created the 'All India Postal Service' on 2nd March 1854 and Sir H.P.A.B. Riddlell was the first officer to join it. It is to record here that Sir Riddell first joined as Deputy Collector of Sukkur in Scinde Province on 29th May 1843 and after that as Magistrate and Dy. Collector of Muzaffarnagar on 11th December 1843 and later on as Postmaster General of newly created North Western Province circle on 1st March 1844 with good record of service. It is important to mention here that the appointment of the Director General came first on 2nd March, 1854 as Sir H.P.A.B. Riddell and the Post Office Act XVII of 1854 was drafted later on.

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In India the postal system is of two kinds. The horsepost, called uluq, is run by royal horses stationed at a distance of every four miles. The foot-post has three stations per mile; it is called dawa, that is one-third of a mile ... Now, at every third of a mile there is a wellpopulated village, outside which are three pavilions in which sit men with girded loins ready to start.

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.

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.

This foot-post is quicker than the horse-post; and often it is used to transport the fruits of Khurasan which are much desired in India."

Ibn Battuta describes the Indian postal system in the 14th century as follows:

Each of them carries a rod, two cubits in length, with copper bells at the top.

When the men in the pavilion hear the ringing of the bell they get ready.

HORSE POST

FOOT POST

THINGS WE SHOULD KNOW

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British East India Company, which first printed a 1/2a vermilion in April but never sold it to the public, then put four values (1/2a, 1a, 2a, 4a) on sale in October. All were designed and printed in Calcutta, featuring the usual profile of Queen Victoria. A new set of stamps, with the queen in an oval vignette inside a rectangular frame, and inscribed "EAST INDIA POSTAGE", was printed by De La Rue in England (who produced all the subsequent issues of British India) and made available in 1855. These continued in use until after the British government took over administration of India in 1858, and from 1865 were printed on paper watermarked with an elephant head.

<a href=British East India Company , which first printed a 1/2a vermilion in April but never sold it to the public, then put four values (1/2a, 1a, 2a, 4a) on sale in October. All were designed and printed in Calcutta , featuring the usual profile of Queen Victoria . A new set of stamps, with the queen in an oval vignette inside a rectangular frame, and inscribed "EAST INDIA POSTAGE", was printed by De La Rue in England (who produced all the subsequent issues of British India) and made available in 1855. These continued in use until after the British government took over administration of India in 1858, and from 1865 were printed on paper watermarked with an elephant head. available to the general public. A letter would cost 2 annas (one-eighth of a Rupee ) for distances up to 100 miles (160 km). Payments would be done through copper tokens; a letter was hand stamped "post paid" if paid for, otherwise it was stamped "post unpaid" or "bearing". In 1839, North West Province Circle was formed and since then, new Postal Circles were formed as needed. In December 1860 Punjab Circle, in 1861 Burma Circle, in Orissa, Bombay (including Sind), Burma, Central, Madras, Pun j ab & NWF and U.P. The usage of the stamps began on 1 July 1852 in Scinde/ Sindh district, with the use of an embossed pattern on paper or wax. The shape was circular, with "SCINDE DISTRICT DAWK" around the rim, leading to the common name "Scinde Dawk" . had been formed in Oudh (1870), Rajputana (1871), Assam (1873), Bihar (1877), Eastern Bengal (1878) and Central India (1879). Afterwards, the creation of new circles was accompanied by the merging of some circles. By 1914, there were only 7 Postal Circles — Bengal & Assam, Bihar & 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 1866 Central Province Circle and in 1869 Sind Circle were formed. B y 1880 circles 1854 was the y ear of the first issue for all of India. The stamps were issued by the The NIS Academy, Aurangabad. OLD LOGO 16 " id="pdf-obj-15-21" src="pdf-obj-15-21.jpg">

available to the general public. A letter would cost 2 annas (one-eighth of a Rupee) for distances up to 100 miles (160 km). Payments would be done through copper tokens; a letter was hand stamped "post paid" if paid for, otherwise it was stamped "post unpaid" or "bearing". In 1839, North West Province Circle was formed and since then, new Postal Circles were formed as needed. In December 1860 Punjab Circle, in 1861 Burma Circle, in

Orissa, Bombay (including Sind), Burma, Central, Madras, Punjab & NWF and U.P. [3] 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".

had been formed in Oudh (1870), Rajputana (1871), Assam (1873), Bihar (1877), Eastern Bengal (1878) and Central India (1879). Afterwards, the creation of new circles was accompanied by the merging of some circles. By 1914, there were only 7 Postal Circles — Bengal & Assam, Bihar &

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

  • 1866 Central Province Circle and in 1869 Sind Circle were formed. By 1880 circles

  • 1854 was the year of the first issue for all of India. The stamps were issued by the

The NIS Academy, Aurangabad.

OLD LOGO

16

Thiru A. Raja & Thiru Jyotiraditya Madhavrao Scindia, launching the new logo for India Post on 23 Sept 2008, at New Delhi. The postal service comes under the Department of Posts which is a part of the Ministry of Communications and Information Technology under the Government of India. The apex body of the department is the Postal Service Board. The board consists of a chairman and three members. The three members hold the portfolios of Operations & Marketing, Infrastructure & Financial Services, and Personnel. The Joint Secretary and Financial Advisor to the Board is also a permanent invitee to the Board. India has been divided into 22 postal circles. Each circle is headed by a Chief Postmaster General. Each Circle is further divided into Regions comprising field units, called Divisions, headed by a Postmaster General. Other functional units like Circle Stamp Depots, Postal Stores Depots and Mail Motor Service may exist in the Circles and Regions. Besides the 22 circles, there is a special Circle called the Base Circle to cater to the postal services of the Armed Forces of India. The Base Circle is headed by an Additional Director General, Army Postal Service holding the rank of a Major General

GOVERNANCE AND ORGANIZATION

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17

To study how Post office provides service to its clients.

The research is performed to know how a postal investment serves the client with various investment schemes.

This research is also based on the procedure to know the awareness among people about postal.

To study about what problems are been faced by the postal investment schemes and its clients.

OBJECTIVE OF THE PROJECT

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Such type of data deals with the used of important contribution in the subject, important books, magazines, survey material, periodical reports, newspaper published in India and abroad. To present useful information on this topic we used various information publishing mediums like internet, magazines and newspapers. Around every company has its own website. All the useful information presented in this project has been captured from their respective websites.

A questionnaire is prepared for field survey, which will be filled on the basis of interviews and free discussion with Mr. W.K Tirankar (Senior Post Master), Mr. Bujade (Money Transfer Department) and Sachin Patil (Agent) In order to conduct field survey, interviews and questionnaire filled in by the Mr. Bujade (Money Transfer Department) and the customer questionnaire are take as study area and their view and options are taken in to consideration.

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Secondary data

METHODOLOGY

Primary data

19

The famous magazine POSTAL INVESTMENT IN INDIA.

Web sites.

  • 1. www.google.co.in

  • 2. www.indiandata.com/postal

Postal Investment council’s website.

Personally visited the respected Post Offices

  • 1. Head Post Office, Juna Bazar, Aurangabad (M.S)

  • 3. Post Office, Osmanpura, Aurangabad (M.S)

  • 2. Post Office, Rajabazar, Aurangabad (M.S)

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BIBLIOGRAPHY

20

21

e-Post

Media Post

e-Payment

SPEED POST

Business Post

Logistics Post

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SOME MAJOR POSTAL SERVICES

Documents and greetings sent online but delivered by mail.

Total pre-mailing solutions including collection/printing, inserting, and addressing.

Reach millions through advertisements on Post cards , Letters walls of post offices ,letter boxes,post cards and statonary.

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 are electronically consolidated.

The 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 a money-back guarantee, under which the Speed Post fee will be refunded if the consignment is not delivered within the published delivery norms.

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.

22

Direct Post

POSTAL SERVICES.

Postal Life Insurance

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International Money Transfer

Instant Money Order Service (iMO)

The instant domestic money is available in 717 post offices.

Distributing advertising materials directly to prospective customers.

The letter boxes in India are colour coded like- green coloured boxes are meant for

As a result of the collaboration of the Department of Posts with the Western Union

Indian postal service is the government operated postal system in India. The general public refers to the Indian postal service as ‘the post office’.

The Indian postal service is the largest postal network in world with 1,55,000 post offices spread across all over the country. With post offices in almost every corner of the country, it helps people stay in touch irrespective of the length and breadth of the country.

Indian postal service provide many facilities like- general or registered mail, parcel post, speed post, greeting post, express post, media post, e post and special courier service known as EMS-speed post. It also provides us with various financial services like international money transfer, instant money order service, money order, mutual funds. Various post office savings schemes like National Savings Certificate, Kisan Vikas Patra, Recurring Deposits and Term Deposits are also available.

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 fulfill the needs of NRI dependent families in India, visiting International tourists and foreign students studying in India.

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 departments of Central and State Governments were extended its benefits. Now Postal Life Insurance is open for employees of all central and state government departments, nationalized banks, public sector undertakings, financial institutions, local municipalities and Zila Parisads an Educational Institution aided by the Government.

local letters, and for metropolitan and other cities as well as international mails can be dropped in red coloured boxes. Quick Mail Service (QMS) has yellow colour boxes.

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:

Non-postal services

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Ensure availability of basic postal services in all parts of the country, including tribal, hilly and remote areas. Provide efficient reliable and economic service. Provide value added services according to market requirements. Modernize the services to handle the growing volume of work with efficiency and thereby enhance customer and employee satisfaction. Be a forward looking organization, and Generate more resources and improve financial performance.

Department of Posts is committed to providing universal access to basic postal services in the country at affordable prices.

OBJECTIVES OF POST OFFICE

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Its objectives are to:-

24

  • 4. Matters relating to introduction, development and maintenance of all services by the Post Office including those based on cable, radio and satellite communications channels: Provided that these matters do not amount to broadcasting, narrow casting, cable and radio networking services and are also not governed by the Indian Telegraph Act, 1885 and the rules made there under, and not exclusively allotted to any other Department.

  • 3. International cooperation in matters connected with postal communications, including matters relating to all international bodies dealing with postal communications such as Universal Postal Union, Asia Pacific Postal Union (APU), Commonwealth Postal Union.

  • 2. Posts, including Post Office Savings Banks (Administration), Post Office Certificate (Administration), Post Office Life Insurance Fund (Administration), printing of public postage stamps/commemorative stamps including postal stationery, premium postal products and any agency function.

  • 6. Matters relating to administration of the Indian Post Office Act, 1898 and rules made there under as well as other laws or enactments having a bearing on postal activities, not specifically allotted to any other Department.

As per Government of India (Allocation of Business) Rules, 1961, second Schedule, Rule 3, Distribution of Subjects among the Departments the Department Of Posts is responsible for

  • 5. Promotion of feasibility survey, research and development in the field of activities allotted to the Department.

Budget pertaining to the Department of Posts.

  • 1. Execution of works, including purchase of land debitable to the Capital

RESPONSIBILITIES OF POST OFFICE

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25

Efforts are also being made to identify means of providing postal services through more cost effective measures. The Licensed Stamp Vendor Scheme, Licensed Postal Agents Scheme and the Panchayat Sanchar Sewa Yojana(PSSY) were initiatives that were taken up in this regard. So far 7,697 Panchayat Sanchar Sewa Kendras(PSSKs) have been opened, including 2,371 PSSKs under the 10 th Plan. Since an assessment of these schemes indicates the need for restructuring them, no targets were given in 2004-05 for opening PSSKs. Efforts are also underway to optimize the retailing capacity of the network. One major initiative taken up in the current year is the retailing of non-life insurance products through Post Offices. The Department has entered into an agreement with the Oriental Insurance Company to function as their Corporate Agent for marketing identified non-life products. This Scheme was launched on a pilot basis through select Post Offices in 2 districts each of 7 Circles. It is being gradually expanded, after providing the requisite training to other Circles.

India has the largest Postal network in the world with 1,55,669 Post Offices of which 89% are in rural areas. At the time of independence, there were 23,344 Post Offices, which were primarily in the urban areas. Thus the network has registered a seven fold growth over the last five decades, the focus of this expansion being in the rural areas. On an average, a post office serves an area of 21.09 sq. km. & population of 6,585. Through these offices it ensures daily delivery of dak at the doorstep of every customer all over the country, collection of letters through letterboxes, and also sale of stamps and stationery through village postmen at the doorstep of customers in rural areas. Post Offices in Urban and Rural areas provide a range of basic postal services to the customers, including banking and insurance services. Bill collection felicities are being extended through all post offices in urban areas, and identifying post offices in rural areas. Certain value added services are being provided in selected offices in urban areas.

World’s largest network. 89% post offices are in rural area. Post Offices provide a range of basic postal services Post office serves an area of 21.09 sq. km. & population of 6,585.

Largest postal network

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26

India possesses the largest postal network in the world with 155,000 post offices spread all over the country as on March 31, 2001, of which 89 per cent are in the rural sector. Post offices in India play a vital role in the rural areas. They connect these rural areas with the rest of the country and also provide banking facilities in the absence of banks in the rural areas. Post Offices offer various types of accounts.

Savings Account Recurring Deposit Account Monthly Income Account Time Deposit Account

National Savings Certificate Public Provident Fund Kisan Vikas Patra

Post Offices also offer various saving and tax saving instruments as:

NON-Postal Services in India

POSTAL LIFE INSURANCE

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MAJOR FINDINGS

These are:

AND

27

The account can be opened at any post office with a minimum balance of Rs. 20.

Post office saving account is similar to a savings account in a bank. It is a safe instrument to park those funds, which you might need to liquidate fully or partially at very short notice. Post office savings accounts are especially suited for those living in rural and semi-rural areas where the reach of banks is very limited.

Product

:

Saving Account.

Place

:

Post-Office.

Price

:

Rs.20 to 1lack (individual)

Promotion :

Rs.2 lack (joint) No limit (group) Agents.

Rate of interest is decided by the Central Government from time to time. Interest is calculated on monthly balances and credited annually. Income tax relief is available on the amount of interest under the provisions of section 80L of Income Tax Act.

account holders can

be

deposited. There

is

no

lock-in or maturity period. The

amount can be withdrawn anytime subject to keeping a minimum balance of Rs. 50

in

account

simple

and

Rs.

500

for

cheque

facility

accounts.

Minimum Rs.20/-. Maximum Rs. 1,00,000/- for an individual account, Rs. 2,00,000/- for joint account. No limit on group/institutional or official capacity accounts.

  • Interest is completely tax free under section 10 of Income Tax Act financial assets in form of small savings Schemes have been exempted from wealth tax

3.5% per annum on individual/joint and group accounts. 3% per annum on public accounts and Security Deposits Account for purchase of motor vehicle or

tractor

and for other purposes 2% per annum. For Official capacity account 2% per

annum.

28

  • Cheque facility available cheques are also accepted by scheduled banks.

one lack for single account holder and Rs. two lacks for joint

Post Office Saving Account

Investment Limits and Denominations

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Features and Tax Rebate

Maximum of Rs.

Interest Rates

subject

Period during which opened

Amount repayable for an

   

account of Rs. 10/-

From

To

denomination

  • 01.10.1991 01.09.1993

 

856.40

  • 02.09.1993 31.12.1998

 

833.40

  • 01.01.1999 14.01.2000

 

811.15

  • 15.01.2000 28.02.2001

 

789.60

  • 01.03.2001 28.02.2002

 

758.53

  • 01.03.2002 28.02.2003

 

748.49

  • 01.03.2003 onwards

 

728.49

Premature closure of accounts is permissible after expiry of three years. In case of premature closure of account, the interest at the rate applicable to post office savings account shall be payable.

Recurring deposit account is a systematic way of saving money. The scheme is meant for those investors who want to deposit a fixed amount regularly on monthly basis in order to get a tidy sum after 5 years on the maturity of the account.

Product:

RD (Recurring Deposit)

Place:

post office

Price:

Rs. Xyz (per month)

Promotion:

Agents.

Duration:

5 years.

The Recurring deposit account can be opened at any post office Period of maturity of account is 5 years. Sixty equal monthly deposits shall be made in an account in

5Year Recurring Deposit (RD) Interest Rates

Maturity value from time to time (for denomination of Rs.10/):

Post Office Recurring Deposit Account

The NIS Academy, Aurangabad.

multiples

a

minimum

rupees.

five

Rs.

ten

29

of

of

to

30

4/-

FEATURES OF RD.

rate: Denomination Rs.10.

12 advance deposits:

The NIS Academy, Aurangabad.

6 advance deposits…….Re.1/-

Interest earned is exempted as per Section 80L of Income Tax Act.

For advance deposits, including deposit for current month, rebate is allowed at the

vi. For the first 24 months no default should be outstanding. vii. No withdrawal should have been taken during the first 24 months.

One withdrawal is permitted from the account on completion of one year from the date of opening, on the conditions that:

Minimum amount of Deposit is Rs.10. No maximum limit. Deposit should be made every month within the calendar month. Default fee is chargeable for delayed deposit at 0.20 P. per month of delay, for Rs.10 Dn.

Maximum defaults allowed in an account is four (4). After four defaults the account is treated as ‘discontinued’. Discontinued account can be revived by paying defaulted deposits, within two months from the fifth default. If it is not so revived, the account cannot be continued.

Premature closure is permitted on completion of 3 years from the date of opening. Interest is to be calculated as per the rules and rate applicable to individual account. at the rate applicable to savings account from time to time is calculated and paid.

i.

At least 12 deposits should have been made

ii.

Account should not have been discontinued one.

iii.

Amount not exceeding 50% of the balance.

iv.

Withdrawal may be repaid in one lump or in equal monthly installments.

v.

Interest is charged at 15%.

After maturity of the account, it can be continued for a further period of 5 years with or without further deposits. During this extended period, the account can be closed at any time. Post maturity interest is paid at the prescribed rate.

Under the protected savings scheme, on the death of depositor before maturity of the account, the legal heir is entitled to get full maturity value, subject to the

conditions:

i.

Age of the depositor at the time of opening should be between 18 and 53

ii.

Benefit limited to the maturity value of Rs.50 denomination

iii. Account should not have been discontinued as on the date of death

iv. At least two years should have been completed

v.

At least 24 deposits should have been made.

Product:

MI Account.

 

Place:

Post-Office.

Price:

1000 (Min deposit)

Promotion:

Agents.

Durability:

six years.

Post Office Monthly Income Account is meant for those investors who want to invest a lump sum and earn interest on monthly basis for their livelihood. The scheme is,

therefore,

a

boon

for

retired

persons.

The account can be opened by a single adult or 2-3 adults jointly. Period of maturity of an account is six years. Only one deposit can be made in an account. Minimum

deposit limit is

Rs

1000. Maximum deposit limit

is

Rs.

3

lacks in case

of single

account

and

Rs.

6

lacks

in

case

of

joint

account.

Safe & sure way to get a regular monthly income.

 

Specially suited for retired employees/ Senior Citizens or any one with high

sum for investment . Rate of interest 8%.

10% Bonus on maturity. (withdrawn w.e.f 13th February 2006)

Maturity Period - Six Years.

Post maturity Interest at the rate applicable

from time

to time

(at present

3.5%)

Auto credit facility to SB Account.

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 bank accountand give a request for automatic transfer of Monthly Income Scheme interest to Recurring Deposit through Saving Bank account.

Interest @ 8% per annum is payable monthly. In addition, bonus equal to 10% of the deposited amount is payable at the time of repayment on maturity. Premature closure facility is available after one year subject to condition. Income tax relief is available on the interest earned as per limits fixed vide section 80L of Income Tax, as amended from time to time.

Type of Account

Minimum limit

Maximum limit

 

Rs. 1000/-

Rs. 3 lakhs

Single Joint

Rs. 1000/-

Rs. 6 lakhs

Post Office Monthly Income Account

The NIS Academy, Aurangabad.

Monthly Income Scheme

31

Post office time deposit account is just like the bank fixed deposit account. These time deposits are meant for those investors who want to deposit a lump sum for a fixed period. Time deposit account can be opened at any post office with a minimum deposit of Rs. 200. There is no maximum limit for the account.

Interest is calculated on quarterly compounding basis, and is payable annually. Rate of interest varies according to the period of the deposit and is decided by the Central Government from time to time. Income tax relief is available on the amount of interest under the provisions of section 80L of Income Tax Act.

The amount can be deposited for 1year, 2year, 3year, and 5years. The deposited amount is repayable after expiry of the period for which it is made viz: 1 year, 2 years, 3 years or 5 years.

Product:

Time deposit A/C

Place:

Post Office

Price:

Rs 200- no limit

Promotion:

Agents

Durability:

1yr – 5yr

Premature withdrawals from all types of post office time deposit accounts are permissible after expiry of 6 months with certain conditions.

Post Office Time Deposit Account

The NIS Academy, Aurangabad.

32

Interest accrued on the certificates every year is liable to income tax but deemed to have been reinvested. Income Tax rebate is available on the amount invested and interest accruing under Section 88 of Income Tax Act, as amended from time to time. Income tax relief is also available on the interest earned as per limits fixed vide section 80L of Income Tax, as amended from time to time.

Period of maturity of a certificate is six years. Presently, maturity value of a certificate of Rs. 100 denomination is Rs. 160.10. Maturity value of a certificate of any other denomination is at proportionate rate. Premature encashment of the certificate is not permissible except at a discount in the case of death of the holder(s), forfeiture by a pledge and when ordered by a court of law.

An adult in his own name or on behalf of a minor,

A minor,

A trust

Two adults jointly,

Hindu Undivided Family

National Savings Certificates are available in the denominations of Rs. 100, Rs 500, Rs. 1000, Rs. 5000, & Rs. 10,000. There is no maximum limit on the purchase of the certificates.

Product:

NSC

Place:

Post-Office.

Price:

Rs. Xyz/ month.

Promotion:

Agents.

Durability:

six years.

National Savings Certificate, popularly known as NSC, is a time-tested tax saving instrument that combines adequate returns with high safety.

National Savings Certificate can be purchased by the following:

National Savings Certificate

The NIS Academy, Aurangabad.

33

Period from the date of the certificate to

Issued

from

Issued

from

01.03.2003

the date of its encashment.

01.03.2001

to

01.03.2002

to

onwards

28.02.2002

28.02.2003

Three years or more, but less than three years and six months

126.43

  • 124.62 121.15

 

Three years and six months or more, but less than four years.

131.71

  • 129.51 125.09

 

Four years or more, but less years and six months.

than four

136.90

  • 134.29 129.16

 

Four years and six months or more, but less than five years.

142.48

  • 139.43 133.36

 

Five

years or more,

but less

than five

147.98

  • 144.46 137.69

 

years and six months.

 

Five years and six months or more, but less than six years

153.89

  • 149.83 142.16

 

Period during which purchased

Maturity

Value

for

a

Denomination

of

From

To

Rs.100.00

01.01.1999

14.01.2000

Rs.195.60

15.01.2000

28.02.2001

Rs.190.12

01.03.2001

28.02.2002

Rs.174.52

01.03.2002

28.02.2003

Rs.169.59

01.03.2003

Onwards

Rs.160.10

Maturity period is 6 years. No premature encashment is permitted in the normal course. PREMATURE ENCASHMENT under sub-rule (1) of rule 16 after the expiry of three years from the date of purchase of certificate. Table below for a certificate of Rs.100 denomination and at a proportionate rate for a certificate of any other denomination.

One person can be nominated for certificates of denomination of Rs. 100- and more than one person can be nominated for higher denominations.

National Savings Certificate Interest Rate

The NIS Academy, Aurangabad.

Features

Table

34

Public Provident Fund account can be opened at designated post offices throughout the country and at designated branches of Public Sector Banks throughout the country. The account can be opened by an individual in his own name, on behalf of a minor of whom he is a guardian, or by a Hindu Undivided Family.

The account matures for closure after 15 years. Account can be continued with or without subscriptions after maturity for block periods of five years. Premature withdrawal is permissible every year after completion of 5 years from the end of the year of opening the account.

Loans from the amount at credit in PPF amount can be taken after completion of one year from the end of the financial year of opening the account and before completion of the 5th year.

Minimum deposit required in a PPF account is Rs. 500 in a financial year. Maximum deposit limit is Rs. 70,000 in a financial year. Maximum number of deposits is twelve in a financial year.

Public Provident Fund, popularly known as PPF, is a savings cum tax saving instrument. It also serves as a retirement planning tool for many of those who do not have any structured pension plan covering them.

Interest at the rate notified by the Central Government from time to time, is calculated and credited to the accounts at the end of each financial year. Presently, the rate of interest is 8% per annum.

Product:

PPF.

Place:

Post-Office.

Price:

Rs.xyz/month.

Promotion:

Agents.

Durability:

15 years.

Income Tax rebate is available "on the deposits made", under Section 88 of Income Tax Act, as amended from time to time. Interest credited every year is tax-free.

The NIS Academy, Aurangabad.

Public Provident Fund

35

Kisan Vikas Patra (KVP) is a saving instrument that provides interest income similar to bonds. Amount invested in Kisan Vikas Patra doubles on maturity after 8 years & 7 months.Kisan Vikas Patra can be purchased by the following:

Kisan Vikas Patra are available in the denominations of Rs 100, Rs 500, Rs 1000, Rs 5000, Rs. 10,000 & Rs. 50,000. There is no maximum limit on purchase of KVPs. Premature encashment of the certificate is not permissible except at a discount in

No income tax benefit is available under the Kisan Vikas Patra scheme. However, the deposits are exempt from Tax Deduction at Source (TDS) at the time of withdrawal.

An adult in his own name, or on behalf of a minor,

A minor,

A Trust,

Two adults jointly.

Product:

KVP.

Place:

Post-Office.

Price:

Rs.xyz/month.

Promotion:

Agents.

Durability:

8 years & months.

the case of death of the holder(s), forfeiture by a pledgee and when ordered by a

The NIS Academy, Aurangabad.

Kisan Vikas Patra

court

law.

36

of

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 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

On 24th March, 1995, the benefits of Postal Life Insurance were extended to rural populace of the country under the banner of Rural Postal Life Insurance.

RURAL POSTAL LIFE INSURANCE SCHEMES

Postal Life Insurance Schemes

Rural Postal Life Insurance

The NIS Academy, Aurangabad.

Postal Life Insurance

37

* Premium ceasing at the age of 35, 40, 45, 50, 55, 58 & 60 ( Payment of premia for at least 5 years ) * Maximum Sum Assured of Rs.10 lac * Insurance Cover starts from the date of acceptance * Eligible for loan after payment of premia for 36 months. * Interest Rate @ 10% on loan * Surrender allowed after payment of premia for 36 months * Assignment facility available * Can be converted into Suraksha (Whole Life Assurance ) * No medical examination required if age is 35 years or less and Sum Assured is not

Under this scheme the proponent is given an assurance to the extent of the Sum Assured and accrued bonus till he/she attains the pre-determined age of maturity. In case of unexpected death of the insurant, the assignee, nominee or the legal heir is paid the full Sum Assured together with the accrued bonus.

Product:

PLI-Santhosh.

place:

Post-Office.

Price:

Rs.xyz/month.

promotion:

Agents

eligible:

loan(36month)

* Minimum Age at entry is 19 years * Maximum Age at entry is 55 years

Postal Life Insurance – Santhosh

* Nomination facility is available.

The NIS Academy, Aurangabad.

An Endowment Assurance Scheme

than Rs. 1 lac.

more

38

Insurance cover starts from the date of acceptance of proposal to the extent

of sum assured with accrued bonus Bonus shall accrue till the date of death.

Higher bonus and lower premia than the Endowment Policy

Eligible for loan after payment of premia for 48 months

Surrender of policy allowed after payment of premia for 36 months

Assignment facility available

The policy can be converted into an Endowment Assurance Policy after

completion of one year and before 57 years of age of the insurant Nomination facility available

Minimum Age at entry is 19 years

Maximum Age at entry is 55 years

Premia ceasing at the age of 55, 58, 60. ( Minimum payment of premia for 5 years)

Maturity amount is payable only to the Assignee, nominee or the legal heir after death of the insurant. Maximum sum assured is Rs. 10 lac

place:

Post-Office.

Price:

Rs.xyz/month.

promotion: Agents eligible: loan(48month)

A Whole Life Assurance Scheme Product: PLI-SURAKSHA.

POSTAL LIFE INSURANCE- SURAKSHA

The NIS Academy, Aurangabad.

39

40

with bonus

15 years 20 years

The NIS Academy, Aurangabad.

policy the minimum Age at entry is

Survival benefit is payable as under :

19 years and maximum Age at entry is 45

Postal Life Insurance- Sumangal

Insurance cover starts from the date of acceptance of the Proposal

years.In case of 20 years term policy, the minimum Age at entry is 19 years and

An Anticipated Endowment Assurance Scheme which is also known as Money Back Policy.

Product:

PLI- Sumangal.

place:

Post-Office.

Price:

Rs.xyz/month.

promotion:

Agents

eligible:

loan(48month)

maximum Age at entry is 40 years. Maximum Sum assured is Rs.5 lac No loan facility No surrender value is payable Assignment facility is available Nomination facility available

at the end of 6 years

8 years

20% of sum assured

at the end of 9 years

12 years

20% of sum assured

at the end of 12 years

16 years

20% of sum assured

at the end of 15 years

20 years

40% of sum assured

Survival benefits is paid to the insurant periodically (Such payments will not be taken into consideration in the event of unexpected death of the insurant and the full sum assured with accrued bonus is payable to the assignee, nominee or legal heir). Two type of policies i.e. 15 year term and 20 year term.In case of 15 years term

It is a joint-life Endowment Assurance in which one of the spouses is eligible

for PLI policies Life insurance coverage is provided to both the spouses to the extent of sum

assured with accrued bonus from the date of acceptance of proposal Insurance cover is started from the date of acceptance

It is a term policy of 5 to 20 years.

It gives assurance to both, the Insurant and spouse

Minimum Age at entry is 21 years

Maximum Age at entry is 45 years

Maximum sum assured of Rs. 5 lac

Surrender value payable after 3 years

Assignment facility available

Nomination facility available

Loan facility is available.

Product:

PLI-SURAKSHA.

place:

Post-Office.

Price:

Rs.xyz/month.

promotion:

Agents

facilities:

loan

Postal Life Insurance - Yugal Suraksha

The NIS Academy, Aurangabad.

41

Insurance cover starts from the date of acceptance

Minimum Age at entry is 19 years

Maximum Age at entry is 55 years and for policies with sum assured beyond

Rs.1 lakh maximum age at entry is 45 years Premium ceasing at the age of 55, 58 & 60

Maximum sum assured is Rs. 2 lac

Eligible for loan after payment of premia for 48 months.

Interest rate @ 10% on loan

Surrender of policy allowed after payment of premia for 36 months

Assignment facility available

Can be converted into Gram Santosh (Endowment Assurance)

Nomination facility available

Under this scheme, the proponent is given an assurance to the extent of sum assured and accrued bonus which is paid to the assignee, nominee or legal heir after the death of the insurant.

place: Post-Office. Price: Rs.xyz/month. promotion: Agents facilities: loan/nomination

It is a Whole Life Assurance Scheme. An Endowment Assurance Scheme

Rural Postal Life Insurance - Gram Suraksha

The NIS Academy, Aurangabad.

PLI-Gram SURAKSHA.

Product:

42

Insurance cover starts from the date of acceptance

 

Minimum age at entry is 19 years

Maximum age at entry is 55 years

Premia ceasing at the age of 55, 58 & 60

(Payment of premia for at least 5 years )

Maximum sum assured Rs. 1 lac

Eligible for loan after payment of premia for 48 months

Interest on loan @ 10 %

Surrender of Policy allowed after payment of premia for 36 months

 

Assignment facility available

Can

be

converted

into

Gram

Santosh

(Endowment Assurance after 5 years with premia ceasing at the age applicable to that Scheme ) Nomination facility available.

Product:

PLI- Gram Suvidha.

place:

Post-Office.

Price:

Rs.xyz/month.

promotion:

Agents

facilities:

loan/nomination.

Rural Postal Life Insurance - Gram Suvidha

A Convertible Whole Life Assurance Scheme.

An Endowment Assurance Scheme

The NIS Academy, Aurangabad.

43

Two type of policies i.e. 15 years term and 20 years term.

Minimum age at entry is 19 years and maximum age at entry is 40 years

Maximum sum assured is Rs.1 lac.

No loan facility

No surrender value is payable

Nomination facility is available.

Assignment facility is available.

Survival benefit is payable as under: 15 years

20 years

at the end of 6 years

8 years 20% of Sum Assured

at the end of 9 years

12 years 20% of Sum Assured

at the end of 12 years

16 years 20% of Sum Assured

at the end of 15 years With bonus

20 years 40% of Sum Assured

(Such payments will not be taken into consideration in the event of unexpected death of the insurant and full sum assured with accrued bonus is payable to the nominee).

An Anticipated Endowment Assurance Scheme which is also known as Money Back Policy An Endowment Assurance Scheme

Product:

PLI- Gram Sumangal.

place:

Post-Office.

Price:

Rs.xyz/month.

promotion:

Agents

facilities:

loan/nomination.

Insurance cover starts from the date of acceptance of the proposal.

Survival benefit is paid to the insurant periodically

Rural Postal Life Insurance - Gram Sumangal

The NIS Academy, Aurangabad.

44

Proponent is given an assurance to the extent of Sum Assured with accrued bonus payable

till completion of ten years. Minimum Age at entry is 19 years

Maximum Age at entry is 40 years

No interest charged upto one year arrear of premia in case of natural calamities like flood,

drought, earthquake, cyclone etc. Survival benefit is payable as under:

At the end of 4 years - 20%

At the end of 7 years - 20%

 

At the end of 10 years - 60% with accrued bonus

Nomination facility is available

No surrender value is payable

Assignment facility is available

No loan is admissible.

RURAL POSTAL LIFE INSURANCE - GRAM PRIYA

It is Anticipated Endowment Scheme for Ten Years

- Insurance cover start from the date of acceptance

The NIS Academy, Aurangabad.

45

46

  • Minimum Age-5 Years.

The NIS Academy, Aurangabad.

CHILDREN POLICY- SALIENT FEATURES

  • A non-medical policy with full benefits.

  • Assignment/Nomination facility available, as per POIF Rules.

An Endowment Assurance Scheme Product: PLI-children.

  • Maximum Age- 20 Years (The age of main policy holders should be below 45 years.)

place:

Post-Office.

Price:

Rs.xyz/month.

promotion: Agents

facilities:

loan

  • A Policy holder of WLA or EA in PLI/RPLI shall be eligible for taking such Policy for his/her child(ren) against his/her policy.

  • In even of death of main policy holder before the expiry of the Children Policy- no further premia shall be payable for the remaining term of the policy.

  • No loan facility against this policy, but can be made paid up in usual conditions to main policy provided atleast 5 Years premia have been paid.

  • Sum Assured along with accrued bonus shall be payable on maturity or earlier on death of the Child(ren).

  • Insurance Cover starts from Date of acceptance of the proposal or payment of the Ist premia in full, which ever is later.

  • Sum Assured limit Minimum- Rs. 20,000/- Maximum- Rs. 1,00,000/-. However, the Sum Assured of Children policy should not exceed the Sum Assured of the main policy.

Age at

Age at maturity

 

entry

18

19

20

21

22

23

24

25

5

8.13

7.67

7.27

6.93

6.63

6.36

6.13

5.92

6

8.68

8.13

7.67

7.27

6.93

6.63

6.36

6.13

7

9.33

8.68

8.13

7.67

7.27

6.93

6.63

6.36

8

 
  • 10.11 8.68

9.33

 

8.13

7.67

7.27

6.93

6.63

9

 
  • 11.07 9.33

10.11

 

8.68

8.13

7.67

7.28

6.93

10

 
  • 12.28 10.11

11.07

 

9.33

8.68

8.13

7.67

7.28

11

 
  • 13.85 10.11

12.28

11.07

 

9.33

8.68

8.13

7.67

12

 
  • 15.94 11.07

13.85

12.28

 

10.11

9.33

8.68

8.13

13

 
  • 18.88 12.28

15.94

13.85

 

11.07

10.11

9.33

8.68

14

 

18.88

15.94

13.85

12.28

11.07

10.11

9.33

15

   

18.88

15.94

13.85

12.28

11.07

10.11

16

     

18.88

15.94

13.85

12.28

11.07

17

       

18.88

15.94

13.85

12.28

18

         

18.88

15.94

13.85

19

           

18.88

15.94

20

             

18.88

CHILDREN POLICY PREMIA FOR SUM ASSURED OF Rs. 1000/-

The NIS Academy, Aurangabad.

47

  • d) Savings Bank Account

10.

Why do you think they are loosing interest in postal investments?

a)

No advertising

b) Lack of govt. Support c) Less attractive, d) Less

 

speed.

11.

What is your expectation from Post-Office? ..................................................................................................................................

.........

 

..................................................................................................................................

..........

12.

What suggestion would you like to give to post office? ..................................................................................................................................

...........

 

..................................................................................................................................

...........

13.

According to you does recession effect your investment?

Age Group: Below 30 (

30-45(

)

) Above 45(

).

  • 1. Are you aware of the investment policies provided by post office?

B. No

Yes

A.

  • 2. If yes how did you to know about the investment policies of post office?

  • a) c) Promotion

Relatives

b) Agent

d) Others.

  • a) b)

Interest

Loan

c)

Service

d)

Security

e)

Others

  • 7. According to you which of the following class invest in postal?

  • a) b)

Upper class

Middle class c) Lower class.

 
  • 3. If no why you are unaware about the investment policies of the post office? ……………………………………………………………………………………………………………

  • 4. Do you think postal investment are a secured way of investing your money?

    • a. Tax saving benefits b. Saving references.

  • 5. If you get a choice to invest in, which one would you prefer?

Organization: ……………………………… Designation:………………………….

  • 6. Why would you invest in the in option chosen by you?

  • 8. In which policies do you like to invest your money?

Name :………………………………………………………………… ..

The NIS Academy, Aurangabad.

  • g) National Savings Scheme 1992

b) National Savings Certificate c)

  • 9. Wat made you invest postal?

b) Others financial investment.

e) Monthly Income Scheme

  • a) Public Provident Fund

……………………………………………………………………………………………………………

f)

c. Others services d. Due to

  • a) Postal investment

Deposit Account,

Questionnaires

Questionnaires

c) I don’t know.

Vikas Patra,

Post Office Time Deposit .

Recurring

  • a) Yes

b) No

Kisan

………………………………………

………………………………………

48

f)

The NIS Academy, Aurangabad. a) Yes b) No 49
The NIS Academy, Aurangabad.
a) Yes
b) No
49
ORGANISATION CHART OF THE DEPARTME NT OF CURRENT SCENARIO The NIS Academy, Aurangabad. 50
ORGANISATION CHART OF THE DEPARTME NT OF
CURRENT SCENARIO
The NIS Academy, Aurangabad.
50
 

Security

Don’t know

17%

Yes

Yes

 

No

  • Yes

10%

  • No

  • Don’t kn

 

73%

Parameter

Number of People

Yes

22

No

03

Don’t know

05

Total

30

The NIS Academy, Aurangabad.

51

High Level, 3 10 12 14 16 18 20 Low Level Medal Level High Level Serie
High Level, 3
10
12
14
16
18
20
Low Level
Medal Level
High Level
Serie
Low Level, 7
Medal Level, 20
0
2
4
6
8
Class Awarness

Permute

Number of People

High Level

03

Middle Level

20

Low Level

07

Total

30

The NIS Academy, Aurangabad.

52

   

Postal investment

     

Other investment

 

1

This

investment

played

is

post-

by

1

This investment is played by private

office

agencies. e.g. Bajaj Allianz, Tata

AIG etc.

2

Low Promotion strategies

 

2

More Promotion strategies

 

3

Less

people

aware

about

postal

3

People are more aware than postal

investment.

 

investment.

 

4

Interest rate

low as compared

is

to

4

Interest rate is high as

 

other investments.

 

compared to postal investments.

 

5

Highly

secured

 

than

others

5

Secured

but

not more

than

postal

investments.

 

investments.

 

6

It is govt. Organisation.

 

6

It is private organisation.

 

Difference between postal investment and other investment:

The NIS Academy, Aurangabad.

53

Due to improper promotional strategies.

Low advertising.

Government updation is not done forcefully.

Youth:

No proper investment to attract youth.

Easy money investment are not available.

Low rate of interest.

Low competitive.

Improper use of resources.

No promotion strategies used.

Agent

Government service.

Tax benefits.

Promotion strategies of postal investment

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Low interest rate to investment:

CURRENT AFFAIRS

Highly security:

Lack of awareness:

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The perception of client are varied diverting according to age difference.

Above 45-have the blind faith on investment in postal as it is a government

controlled organization &operating since decades.

30-45 are aware but are confused into get more profit or to invest in safer

way.

Youth:

they are the new comers and earn &like to get more profit in easy manner

Improper promotion.

Not proper planning

No advertisement.

Service provide not on time.

Low rate of interest.

Lack of awareness among new generation

no satisfactory service comparatively

low impact of youth on

investment more time is required for processing.

Highly secured

In few money good service.

Save money save time.

No effect of recession

Government control

High network coverage

are not interested in ancient process so prefer private investment.

Nega tive point of postal investment

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Consumer behavior:

Positive point

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The macro environment is the external environment of a business over which the

that are out of its direct control. A company needs to be flexible to adapt to the

the schemes, promotion, pricing and features. Socio cultural environment influences

Every society has a unique social structure comprising distinct set of behavior

interest rate, wage rates, degree of unemployment, government and consumer

their. The legal environment creates the framework within which postal need to

to predict the legal changes that may take place which will affect the working

the postal to present its schemes in the sync with the social set up of the market.

Laws, rules and regulations of a nation influence the way a postal can do business

business has no control. This includes all factors that can influence an organization

Economic environment consist of the phase of the economic cycle (recession and

expansion) the economy is in, the income of the population, the inflation rate,

patterns, attitude, beliefs, taste and lifestyle. It is crucial for a company to understand

Social environment sets the tone for what is and what is not acceptable in terms of

the social environment of the market. Where it intends to do business. This will help

operate. Postal must be careful to keep within the law. In addition the postal needs

changes in the macro environment.

operation.

spending ect…

Political environment.

Economic environment.

Economic environment:

Legal environment.

Legal environment:

MACRO ENVIRONMENT

Socio cultural environment.

Socio cultural environment:

MARKET OPPORTUNITY

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Technological environment.

the consumer buying behavior.

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processes. Technological developments provide opportunities for postal to adopt

laws, economic policies, taxes, foreign investment policies, import and export

This is the century of high end technological developments. Nearly everyday, some

need to be aware of this developments and utilize them in enhancing their business

new breakthroughs, innovations, and inventions to cut costs and develop new

Political stability is closely linked with the economic and legal environment. Labour

or the other technology development is taking place somewhere in the world. Postal

Technological environment

The NIS Academy, Aurangabad.

Political environment

regulation.

schemes.

57

\

environment through its various strategies.

on the postal and its ability to serve its customers. A firm can influence its micro

ensuring success for Postal. Postal should employee the correct staff and provide

market by offering greater customer value and satisfaction than its competitors. For

this, Postal needs to analyses the nature of competition prevailing in the market.

Employees are the backbone of Postal. Quality of employees plays a crucial role in

Satisfying customer needs is the ultimate aim of Postal. So, the analysis of the need

clients. These marketing intermediaries form an important component of the Postal.

position its schemes strongly against those of the competitors in the minds of clients.

According to the marketing concept, Postal investment can gain an edge in the

Based on this analysis, Postal needs to design its competitive marketing strategy to

Marketing intermediaries help Postal to promote, sell and distribute its schemes to

The micro environment is close to a postal and has a direct and immediate impact

them training to groom them for the particular job.

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and wants of the customer is crucial for Postal.

Overall value delivery system.

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Marketing intermediaries:

MICRO ENVIORNMENT

Marketing intermediaries

Competitors:

Competitors

Employees:

Employees

Company

Consumers

Consumers

Make Use Of Promotional Actives To Attract Maximum Number Of Clients.

 

Measures

should

be

taken

to

create

an

awareness

among

the

new

generation.

Maximum use of advanced diversified technology.

 

Upcoming generation should be preferred in working authority.

 

Target should be given to the employees

 

Service should be given more importance.

Internet services should be made available for investment related available.

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SUGESSION

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Due to comparatively low profit youth have less interest in investing as that of

Low awareness because of no promotional activities considered.

Huge network but lack of appropriate management

Comparatively most secured investment

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old generation.

CONCLUSSION

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