Professional Documents
Culture Documents
ON
Submitted By :
Anurag Shukla
10001117010
IVnd Sem. MBA (International Business)
Institute Of Management Sciences, Lucknow University
ACKNOWLEDGEMENT
DECLARATION
I hereby declare that research report entitled Study of Indian
Postal Services is my original work done on behalf of Institute of
management sciences, Lucknow under the guidance of Mentors
Mrs.Shruti Aurora and Dr.Avinash Bajpai.
(Anurag shukla)
CONTENT
PARTICULERS
PAGE NO
1. Acknowledgement . 02
2. Declaration..03
3. Introduction.05
4. Vision And Mission06
5. Objective..07
6. History..09
7. General Profile Of Organization...11
8. Postal Services.12
9. PPF...18
10. SCSS.19
11. RD..20
12. Business Development Activities..21
13. New Products And Services Introduced22
14. Customer Care..24
15. Core Banking Solution.25
16. Comparison With Banks..29
17. SWOT Analysis32
18. Ideas And Details..34
19. Suggestions.35
20. Conclusion36
21. Reference And Bibliography..37
Introduction
Indian Postal Service
Department of Posts:
Type
Founded
1764
Industry
Postal system
Employees
Website
http://www.indiapost.gov.in/
Objectives
Department of Posts is committed to providing universal access to basic postal services in the
country at affordable prices. Its objectives are to: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.
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
1.Execution of works, including purchase of land debitable to the Capital Budget
pertaining to the Department of Posts.
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.
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.
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.
5.Promotion of feasibility survey, research and development in the field of activities
allotted to the Department.
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
Old Logo
The British East India Company established post offices in Mumbai, Chennai and
Kolkata from 1764-1766, each serving the Bombay, Madras and Calcutta presidencies.
During Warren Hastings' governorship, postal service was made available to the general
public. A letter would cost 2 annas (one-eighth of 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 1866
Central Province Circle and in 1869 Sind Circle was formed. By 1880 circles had been
formed in Oudh (1870), Rajputana (1871), Assam (1873), Bihar (1877), Eastern Bengal
(1878) and Central India (1879).
Afterwards, the creation of new circles was accompanied by the merging of some circles.
By 1914, there were only 7 Postal Circles Bengal & Assam, Bihar & Orissa, Bombay
(including Sind), Burma, Central, Madras, Punjab & NWF and U.P.
The usage of the stamps began on 1 July 1852 in Scinde/Sindh district, with the use of an
embossed pattern on paper or wax. The shape was circular, with "SCINDE DISTRICT
DAWK" around the rim, leading to the common name "Scinde Dawk". 1854 was the year
of the first issue for all of India. The stamps were issued by the British East India
Company, which first printed a 1/2a vermilion in April but never sold it to the public,
then put four values (1/2a, 1a, 2a, 4a) on sale in October. All were designed and printed 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.Raja & 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.
10
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.
Network
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.
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 10th Plan. Since an assessment of these
schemes indicates the need for restructuring them, no targets were given in 2004-05 for
opening PSSKs.
The following Rules and Manuals are referred in respect of Savings Bank Operations
and services-:
The Government Savings Banks Act, 1873
The Government Savings Certificates Act, 1959
The Post Office Savings Bank General Rules, 1981
The Post Office Savings Account Rules, 1981
The Post Office Recurring Deposit Rules, 1981
The Post Office Time Deposit Rules, 1981
National Savings Scheme Rules, 1992
Post Office (Monthly Income Account) Rules, 1987
Indira Vikas Patra Rules, 1987
National Savings Certificates (VIII Issue) Rules, 1989
11
12
For providing postal services, the whole country has been divided into 22 Postal
Circles. These Circles manage the day-to-day functioning of the various Head Post
Offices, Sub - Post Offices and Branch Post Offices, through their Regional and
Divisional level arrangements.
Postal Services
Speed Post-
13
The very high speed express service for letters and documents. Speed Post links more
than 1200 towns in India, with 290 Speed Post Centres in the national network and
around 1000 Speed Post Centres 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.
e-PaymentThe 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.
Logistics PostA 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 fulfilment. 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
e-Post-
Media PostReach millions through advertisements on Post cards, Letters walls of post office, letter
boxes, post cards and stationary
14
.
Direct PostDistributing advertising materials directly to prospective customers.
Postal Life InsurancePostal 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 Parishads an
Educational Institution aided by the Government.
The instant domestic money is available in 717 post offices. However no International
Money Order facility is available
International Money TransferAs a result of the collaboration of the Department of Posts with the Western Union
Financial Services, state of the art international money transfer service is now available
through post offices in India. This enables instantaneous remittance of money from 185
countries to India. The recipients can in fact collect the money in minutes after the sender
has made the remittance. The service is targeted to particularly fulfil the needs of NRI
dependent families in India, visiting International tourists and foreign students studying
in India.
Non-postal services-
15
The post office has also traditionally served as a financial institution for millions of
people in rural India. Currently these are some of the activities being supported:
Public Provident Fund
National Savings Certificate
Savings Bank Account
Monthly Income Scheme
Recurring Deposit Account
National Savings Scheme 1992 - discontinued from 01.11.2002
Post Office Time Deposit
Post boxes for mail receipt
16
Maximum amount is Rs. 4.50 lakhs in a single account and Rs.9 lakhs in a joint
account.
Auto credit facility of monthly interest to saving account if accounts are at the
same post office.
17
Minors have a separate limit of investment of Rs. 3 lakhs and the same is not
clubbed with the limit of guardian.
Facility of premature closure of account after 1 year but on or before 3 years @
2.00% discount.
Deduction of 1% if account is closed prematurely at any time after three years.
Suitable scheme for retired employees/ senior citizens and for those who need
regular monthly income.
PERIOD
RATE OF
INTEREST
One Year
8.2%
Two Years
8.3%
Three Years
8.4%
Five Years
8.5%
18
Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under
section 80C of IT Act.
2 year, 3 year or 5 year accounts on or after 01.12.2011 if closed after one year,
interest on such deposits shall be calculated at a discount of 1% on the rate
specified for respective period as mentioned in the concerned table given under
Rule 7 of Post office Time Deposit Rules.
Any individual (a single adult or two adults jointly) can open an account.
19
NSC VIII Issue (5 years) Interest rate of 8.6% per annum w.e.f. 01.04.2012
NSC IX Issue (10 years) - Interest rate of 8.9% per annum w.e.f. 01.04.2012
Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under
NSC - section 80C of IT Act.
20
The interest accruing annually but deemed to be reinvested will also qualify for
deduction under NSC - section 80C of IT Act.
Minimum deposit is 500/- per annum. Maximum deposit is Rs. 1,00,000/- per
annum
21
Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under
section 80C of IT Act.
Loan facility available from 3rd financial year upto 5th financial year. The rate of
interest charged on loan taken by the subscriber of a PPF account on or after
01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue
to be charged on the loans already taken or taken up to 30.11.2011.
Ideal investment option for both salaried as well as self employed classes.
22
Interest @ 9.3% per annum from the date of deposit on quarterly basis w.e.f.
01.04.2012
Maturity period is 5 years and can be extended for a further period of 3 years.
Age should be 60 years or more, and 55 years or more but less than 60 years who
has retired under a Voluntary Retirement Scheme or a Special Voluntary
Retirement Scheme on the date of opening of the account within three months
from the date of retirement.
23
No age limit for the retired personnel of Defence services provided they fulfill
other specified conditions.
Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under
section 80C of IT Act.
Premature closure is allowed after one year on deduction of 1.5% of the deposit
and after 2 years on deduction of 1%.
No withdrawal permitted before the expiry of a period of 5 years from the date of
opening of the account.
Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible
to open an account.
24
Minimum INR 10/- per month or any amount in multiples of INR 5/-. No
maximum limit.
One withdrawal upto 50% of the balance allowed after one year.
Full maturity value allowed on R.D. Accounts restricted to that of INR. 50/denomination in case of death of depositor subject to fulfillment of certain
conditions.
25
Business Development ActivitiesThe Business Development Directorate was set up in 1996 to design, monitor, develop and
market value added premium products of the Department. The Business Development
Directorate is responsible for the operations and marketing of speed post, speed post
passport service, business post, greeting post, express parcel post, media post, megdoot
post card, data post, e-bill post, e-post, bill mail service and logistic post.
Financial servicesThe Post Office Savings Bank is the oldest and largest banking institution in the country. It
operates about 140 Million Savings Accounts. The Post Office Savings Bank Scheme is an
agency function performed by the Department of Posts on behalf of the Ministry of
Finance, Government of India. The Ministry of Finance remunerates Department of Posts
for this agency work at a rate fixed from time-to-time. During the last financial year 200304, the Department earned approximately Rs. 17,000 Millions as remuneration for
discharging various responsibilities relating to the Savings Bank.
Post Office Savings Bank has a customer base of 140 Million account holders with annual
deposits exceeding Rs. 9,70,000 Million. Savings Bank facilities are provided through a
network of 1,54,000 Post Offices, which is double the size of all banks outlets in the
country, put together. Eight products are retailed from the Post Offices across the country.
There are also a number of Schemes covered under the Post Office Savings Bank and these
include Savings Account Schemes, Recurring Deposit Schemes, Time Deposit Schemes,
Monthly Income Schemes, Public Provident Fund Schemes, Kisan Vikas Patras, National
Savings Certificates and the Senior Citizen Scheme 2004. The outstanding balance under
all national savings schemes in Post Offices is over Rs. 3,750,000 Million.
26
Financial Services Provide As we have an extensive network, post offices serve the nation by providing various
agency services like banking services. The banking services offered at post office counter
are:
Savings Bank Account
Recurring Deposit Account
Time Deposit
Public Provident Fund Account
Monthly Income Scheme
National Savings Scheme Account,1992
National Savings Certificates VIII th issue
Kisan Vikas Patras
Senior Citizens Savings Scheme
overRs.50Millionhasbeenretailedbythepostofficenetwork.Thisservicehashelped
toextendthereachofthecapitalmarketofthecountryandprovidesthecommonman
easyaccesstomarketbasedinvestmentoptions.
Electronic Fund TransferA facility for Electronic Fund Transfer was launched in October, 2001, leveraging the
VSAT network of the Department to facilitate end-to-end fund transfers by Banks
(UTI/IDBI/HDFC) on behalf of the corporate sector as well as the Capital Market. Banks
use this facility to transfer funds to locations where they do not have a presence.
Warrant PaymentThe Warrant Payment Scheme was launched in January, 2002. It has facilitated
redemption of over 73,000 dividend warrants of UTI and Citibank worth more than Rs.
1,000 Million through the postal network, establishing the ability of the Department to
undertake this critical service, for the countrys Capital Market.
Electronic Clearance Service (ECS)TheDepartmentofPostshas introduced ElectronicClearance Service(ECS),ona
pilot basis, in Mumbai City from 9th August 2003 through 70 Post Offices. The
ElectronicClearance Service is beingoffered inconnection withpaymentofinterest
under the Monthly Income Scheme(MIS). The depositor can have the facility of
automaticallytransferringinterestfromtheMISaccount andcreditingitintotheSB
accountatany designatedbankelectronically,byduedate,throughtheRBIClearing
House.AnominalchargeofRs.20/pertransactionisleviedonthecustomersoptingfor
this facility. Asthereisagrowingdemandfromcustomers indifferentpartsofthe
country,theDepartmentproposestoextendtheECSschemebeyondMumbaito46more
citieswheretheRBIEFT(ElectronicFundTransfer)facilityiscurrentlyavailable.
International Money Transfer ServiceThisserviceprovidescustomersthefacilityofreceivingremittancesfrommore
than196countriesonarealtimebasis.Theserviceiscurrentlyavailablefrommorethan
4500postoffices.RemittancesinexcessofUSDollars125Millionhavebeendelivered
throughthisservicesinceApril2001.Ithasbroughtinremittanceworth72MillionUS
DollarsfromApril2003toMarch2004andhasgeneratedarevenueofRs.58.9Million.
ThefocusoftheDepartmentsinitiativesintheareaoffinancialservicesistoprovidea
bouquetofservicesthatwillcatertotheneedsofthecustomer,leveragingtheretailing
outreachofthenetwork,sothatthePostOfficegraduallybecomesaonestopshopfora
rangeofsuchservices.
28
WholeLifeAssurance(Suraksha)
ConvertibleWholeLifeAssurance(Suvidha)
EndowmentAssurance(Santosh)
AnticipatedEndowmentAssurancefor15&20years(Sumangal)
JointLifeEndowmentAssurance(YugalSuraksha)
UnderRPLI,therearefirstfourcommonplansandoneadditionalplan10year
RPLI.Theirtradenamesareasindicatedbelow:
i
ii
iii
iv
v
WholeLifeAssurance(GramSuraksha)
ConvertibleWholeLifeAssurance(GramSuvidha)
EndowmentAssurance(GramSantosh)
Anticipated Endowment Assurance for 15 & 20 years (Gram
Sumangal)
10yearRPLI(GramPriya)
are1116computerizedcustomercarecenterstohandlepublicgrievancesonline.The
Departmentalsoprovidesthefacilityofonlineregistrationandresponsetocomplaintsat
itswebsite.
Total devotion to providing efficient and reliable service which the customers
considertobevalueformoney;
Totalcommitmenttoprovidingchallengingandrewardingcareerforeveryemployee;
Totalenthusiasmtobeforwardlookingandinnovativeinallareas.
TheDepartmenthasformulatedandimplementedinallmajorofficesitscitizen'scharter,
whichisanexpressionofourcommitmenttowardsimprovingourservicesofferedto
makethemmoreefficientandresponsiveandatthesametimemakingourworkingmore
transparenttoourvaluedcustomers.
Thecitizen'scharterisanattempttobringtheDepartmentclosertoitscustomers.
Our Citizen's Charter Commitments We will treat you with courtesy and consideration.
Our staff will be helpful.
We will attend promptly to your enquiries and complaints.
We will provide all the necessary information at customer care centers.
We will speedily redress customer grievances.
30
NeedforCoreBankingSolutioninPostOffice
Majorityofworkinmanualform.
Dataisreenteredatmanylevelstherebychancesofmistakesare
higher.
ManydeficienciesinSanchayPost.
Noauthenticationofdataaspostingandagreementinhugearrear.
Lackofsecurityfeaturesintheexistingsoftware.
Dataisfrequentlychangedatmanylevels.
Passwordisoftensharedwithothers.
31
NoMISfacilities
Poorrecordmaintenance
Inadequateauditfunctions
Nonagreementofbalances
NoATMorInternetBankingfacilitiesavailabletomatchcompetitors.
NoRealTimeProcessing
NoDebitCardfacility.
Nonetworking.
BenefitsofCoreBankingSolution
Reductionintransactiontime
Eliminationofduplication.
Minimumchanceofmistake.
GenerationofdifferenttypesofmanagementInformation.
Uniformchangesinallsystems.
Interestcalculationcanbedoneuniformlyinquicktime.
Introductionofanynewschemeatshortnotice.
AnywhereAnytimeAnybranchbanking.
32
Issueofdebitcardstherebyreducinglinesinpostoffices.
Internetbanking.
ATMfacilities.
AccounttoAccounttransferoffundsinrealtime.
CompatibleforECSandRTGS.
Inbuiltfeaturesofbalancing.
Moresecurityfeaturesfordatabase.
PrerequirementstointroduceCoreBankingSolutioninDepartmentofPost:
Updationoftransactionfeedinginallcategories
Settlementofunposteditems,willfollowitemsandallobjections
includingminusbalance.
Agreementofofficewisebalancestoensuretheauthenticationofdata
PreparationofdailyconsolidationinSanchayPosttoensure100%
transactionfeeding.
DBAnalyzer34PointsofexerciseSB/MIS/PPF/RD/TD/SCSS
33
1.Indexwithzeroaccountno.
2.Indexentrieswithopendate01.01.1900
3.Ledgerentriespriortoaccountopendate
4.IndexentriesdifferentPOcode
5.Accountswithoutnamesofdepositors
6.Accountnumberswithblankaccounttype
7.Accountno.withoutpreviousyearinterestentries
8.Ledgerentrieswithzeroaccountno.
9.LedgerentrieswithLOTdate01.01.1900
10.Accountno.withzeroNominationno.
11.LedgerentrieswithdifferentPOcode
12.Accountwithoutaddressofdepositors
13.Accountno.withblankaccountstatus
14.AccountsforwhichServicechargehavebeendeducted
15.Indexentrieswithoutledgerentries
16.MISdiscrepancy
17.AccountswithwrongamountinSIregister
18.Accountshavingnoledgerentries
19.Accountswithfractions
20.Defaultentriesdiscrepancy
21.Accountswithdifferentmonthscounts
22.AccountswithmorethanoneentryinSIregister
34
23.Ledgerentrydiscrepancy
24.RDbulklistnotposted
25.Paid/Unpaiddiscrepancy
26.Accountsforwhichinterestcalculatediszero
27.Accountswithdifferenceofamountinindex&ledger
28.Accountno.withSIwithoutpreviousquarterinterestwithdrawal
29.accountswithSIwhichTDSdeductedautomatically(15G/15H
notsubmitted200809)
30.Accountno.forwhichTDSexemptionhasbeengiven
31.Accountnos.withincompleteledgerentries
32.Accountnos.withwithdrawtypebutnotinSIentries
33.Accountnos.withSIhavingwithdrawalentrieswithfuturedates
34.Accountnos.inSIregisterhavingclosed/transferredSBaccounts.
Comparison
Post office
Stat Bank
Departme
nt
35
Punjab Bank
Type
Founded
Agency of the
Government of India
1764
Lahore, 1895
Head
Quarters
Key
people
Radhika Doraiswamy,
Director General
Om Prakash
Bhatt,Chairman
Industry
Postal system
Banking. Insurance.
Capital Markets and
allied industries
Banking. Insurance.
Capital Markets and
allied industries
Product
Loan, Credit
card,Savings,Invest
ment SBI LIC
Loan, Credit
card,Savings,Invest
ment PNB LIC
Employe
es
520,191
205,896
---
Branch
155,333
16000
4,904
Website
http://www.indiapost.go StateBankofIndia.co
36
---
www.pnbindia.com
v.in/
Bankdepositsvspostofficesavings:
Everyone says interest rates are rising. This is true even for deposit rates. So does that
mean bank deposits could now be a better option to post office savings? Here is a birds
eye view of recurring and fixed deposits offered by banks and post-office.
Post office Recurring Deposits VS Bank Recurring Deposits
A post office recurring deposit account (RDA) is similar to a recurring deposit in a bank,
where you can invest a fixed amount on a monthly basis. The postal RDA has a fixed
tenure of five years.
These deposits accumulate money at an annual fixed rate of interest of 8 per cent. The
interest is compounded on a quarterly basis. The minimum investment in a post office
RDA is Rs 10 and there is no prescribed upper limit. For example, if you invest Rs 100
every month in 60 installments, you will earn a sum of Rs 7,289 after 5 years.
Banks, however, offer a flexible time period on their recurring deposits. You can open an
RDA for a minimum period of 6 months, and thereafter in multiples of 3 months up to a
maximum period of 10 years.
In banks, you can start a recurring deposit with State Bank of India (SBI) for a monthly
installment of Rs 100 whereas ICICI Bank has kept its minimum deposit limit at Rs 500.
An individual can open an RDA account with a post office individually or one in a joint
form with another investor, or a guardian on behalf of the minor who has attained the age
of 10 years can open an RDA account in his/her own name.
The advantage with post-office deposits is that it offers a fixed rate of return for the
duration of the deposit, while banks constantly review their recurring deposit rates.
However, the disadvantage with post office savings is that that in the age of convenience
banking, you will have to visit the post office every month. In case of banks, the amount
is automatically debited from your account. Premature withdrawal, however, cannot earn
you desired returns.
In post office RDA, you can withdraw up to half the balance. On premature closure of the
account (after one year), interest is payable as per the rate for the Post Office Savings
37
38
SWOT ANALYSIS
1. STRENGTH
MoreproductsincomparisontoSBIandPNB
Morebranches,morefacilities
Moreemployees
Moreservices
Goodfacilitiestocustomers
StrongNetwork
CostEffective
Security/Safetywithrespecttodeposits
EfficientManpower
2. Weakness
Noadvertisements
Notprovideloantoconsumer
Unchangedworkingculture
Jobstressamongemployees
Lowerrateofinterestondepositsascompetors
39
3. Opportunity
Inruralandurbanareas
Invendoringfield
IndevelopingIndianeconomy
Indevelopingcommunicationtoothercountries
Indevelopinggoodrapportwithpeople
Increasingnumberofcustomer
Inflationarymarket
Technologicaladvancement
4. Threat
Courierservices
Alotofcouriercompanies
Insurancecompanies
Bankingsector
Customerdissatisfaction
Increasingmarketshareofcompetitors
3.Timeeffectiveness.
4.Effectiveworkingculturethathelpsemployeestobemoreproductive.
5.Interconnectionamongsmallcompanies(forexampleacouriercompanywith
limitednetwork,makesatieupwithanothercompanyanddropsthemailstothe
desireddestination.).
6.Provideshigherrateofinterestondeposits.
Ideas &Details
If we compare the SWOT Analysis of Indian Postal Services with its
Competitors' Strategy to increase their market share, we would come
to know that the ' strength' of Indian Postal Service is very strong and
if it makes certain changes in its policies it can remove its 'weakness'
and can easily overcome from the 'threat' situation.
If there is a 'problem' in the relationship among the family members, it
can be removed only by painting the heart of the family members
rather than painting the walls of the house. In a company, family
means the relationship between:
i.- Top Level Management,
ii.- Middle Level Management,
iii.- Lower Level Management, and
iv.- The Customer
The customers are also a part of our professional family and to
strengthen the relationship with the customers, efforts should be done
41
42
Suggestion
ThereareafewsuggestionswhichmayhelptoIndianPostalServiceDepartmentinits
furthergrowth:
i.Toincreasetheproductivityoftheemployees,JobRotationPolicyshouldbe
adoptedbecauseasimilarnatureofworkmakesanemployeeirritateandless
productive.
ii.SoftSkillTrainingisprovidedtotheemployeesbuttheimplementation
shouldbedonefromtheTopLevelManagementbecausetheyaretheleaders.Ifa
leaderwillcomelateintheoffice,thefollowerwillalsocomelate.
iii.Employeesaretheinternalcustomersofacompany.Theirsatisfactioncarries
agreatervalue.Atrue&fairfeedbacksystemshouldbetheirwhereeach
employeecanputtheirwordswithoutanyfear.
iv.Employeesshouldbemotivatedforprovidingsuggestionsandifany
suggestionisreallyvaluable,properattentionisrequired.Thereshouldnotbe
anyadverseactionagainstemployeesatthetimeofprovidingsuggestion.
v.Adresscodeshouldbetheretoformuniformityamongemployeesandthe
colouroftheuniformshouldbeinalightshadebecauseitmakestheworking
environmentcool.(Allthecolourshavetheirpsychologicaleffect.)
vi.Noemployeeshouldbeallowedtoworkovertime.Evenheshouldnotwork
afterthedutyhour.Because,theefficiency&effectivenessintheworkmeans
completionofaworkwithinthetimelimit.
vii.Anattractiveinfrastructureattractsthecustomers.Therefore,attention
shouldbegiventowardsthisside.
viii.Timeispreciousforeveryone.Withthismotto,thecustomerservice
departmentshouldworksothatthereshallnotbealongqueueinanycounter.
ix.Customerfriendlyenvironmentshouldbethereineverycounter.
x.Intoday'sinflationarymarket,bankingsectorisprovidinghigherrateof
interestondeposits.Thepostalservicedepartmentshouldalsoadoptthiskindof
strategytoretaintheircustomers.
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xi.Thepostalservicedepartmentshouldadoptanadequatepromotionalpolicy.
Forexample,advertisementinlocalnewspaperforfinancialservicesprovidedby
theIndianPostalDepartment.
Conclusion
Itcanbeconcluded,thatIndianPostalServiceneedstechnological,social,cultural&
economicchange.Withalittlebitofchange,itcancreateamonopolyinthemarket.
ButIndianpostalservicesisonlyonecentralgovernmentservicesforIndianpeoplesas
wellaspostcard,postalstampKVP,NSC,MISandothersomeproductwhichisbest
campiertootherprivatecompanylikePostallifeinsurance.
Lastly conclusion is a - - - - - - - -
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References / Bibliography
www.indiapost.gov.in
Wikipedia
www.business-standard.com
www.indiapost.gov.in/POSBActs/SMALLSAVINGSSCHEMES.pdf
www.moneycontrol.com
articles.economictimes.indiatimes.com
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