\

l
 7

LEARNING OUTCOME
The learning from this chapter will enable students
♦ Know the brief timeline of the Indian Post
♦ Learn about various post office saving schemes
♦ Get familiarize ~tb the _m oney transfer facilities of Indian post
♦ Learn about the collaboration initiative with -the western union

INTRODUCTION
The East Indi~ Compaiiy started estab,ishing post' offic~s in India. The East
India company opened its first post office in 1727. Lord Dalhousie appointed a
Post office commission in 1850. Fjnally, the.approved recommendations of the
Commissipn were fram~d as P9st office Act XVII, 1854. Lord Dalhousie recog-
nized the Indian Post Offic.e s as·separate organizations of national importance.
After independence, various services•were introduced such as speed post,-parcel
etc. it is in the year 2008 project Arrow was introduce·d _with the objective of
modernizing postal offices across India. The initiativ~ aimed at modernizing the
Post office through Computerization, diversification of its activities and tying
up various governmental departments to provide social security services. On
9th October every year World Postal Day is celebrated to highlight the fun~~ions
and importance of postal services. ·
For ~ore than 150 years, the Department of Posts (DoP)_ has be~n the backbon,e
of the country's communication and has played a crucial role 11;1 the ~?un~ s
social and economic development ..It touches the lives of Indi~ citizens 1n
· · d ·ts under Small Savmgs Schemes,
many ways: delivering mail, as:;ceptmg eposi ·f fu · (PLI) and Rural
0 st
providing life insurance cover under ·~ . al L::Ii se=c~ke bill collection,

:~r!s
Postal Life Insurance (RPLI) and proVIding re f the Government of India
~ale :°f forms, etc. The Do_P al~o ac~~- as an
in ·discharging other serVIces for citizens s
~ahatma Gandhi National

7.3
 FIC ES 7.4
FR OM . ST OF
IND IAN PO
UNIT 3: FINANCIAL SER VIC ES
RE GS ) wa ge dis bu rse me nt and
ice s, the Do P has
Em plo ym en t Gu ara nte e Sc he me (M~NSS,000 po st off
Ru ral tha n ' rJd ·
old ag e pe ns ion pa ym bu en ts. w·1th mo re rk in the wo
sta l ne tw o
the mo st wi de ly dis tri ted po
ne s ru l f Allaudin KhiJ ..
In dia n Po sta l M ile sto JI
l sys tem du rin g the .e o
fi sta
12 96 Ho rse an d oo t po ab lis . b Ma ha raj a Ch ikk a Devaraya
he d y .
16 72 My sor e An ch e is est
lar po sta l sy ste m
Wo de ya r 1· ets up a reg u
1766-1774 1766- Ro be rt C ive s . the po st off ice
• s org aru ses
1774- Wa rre n Ha sti ng
Ca lcu tta , Ma dras an d Bo mb ay GP O op en ed
17 74 -17 94
. · ap po int ed.
18 50 Po st Office comm1ss10n
18 54 Po st Office Ac t XVII int rod uc ed
Un ion
18 76 Ind ia joi ns the Universal Po sta l
ard s we re .
int ro duc e d and mo ne y ord ers lau nc he d
1879-1880 Po stc
.
Po st Of fic e Sa vin gs Ba nk op en s
1882
d
1884 Po st office life ins ura nc e lau nc he
1935 Ind ian Po sta l Or de r int rod uc ed
1986 Sp eed po st i_ntroduced
e int ro du ce d
1994 Ex pre ss pa rceW SA T mo ne y or de r ser vic
2003 Me gh do ot sof tw are in( rod uc ed
2006 eP ay me nt services int rod uc ed

I 2008
201 2
Mo de rni sat ion of Po st Office- Pr
IT Mo de rni sat ion pro jec t- 20 12
oje ct Ar row int ro du ce d
int rod uc ed
NK
IN DI A PO ST PA YM EN TS BA
e, the rur al ma sse s ha ve no t be en ful ly co ve red by the for ma l
Since ind ep en de nc s be en se tup un de r the De pa rtm en
t
ia po st pa ym en ts ba nk ha
ba nk ing sec tor. Ind pte mb er 1, 20 18 , wi th the vis ion
to
of Co mm un ica tio n on Se
of Posts, Ministry d tru ste (i ba nk fo r the co mm on
ma n in
st acc ess ibl e, aff ord ab le an
bu ild the mo Bs
uld res ult ih the fin an cia l em po we rm en t of ev ery cit ize n. IPP
Ind ia wh ich wo an d vu lne rab le se cti on s of soc iet
y.
mo st fin an cia lly ex clu de d
tar ge t so me of the cia l inc lus ion lan ds ca pe in India
ed the ba nk ing an d fin an
IPPB ha s transform an d sim ple & int uit ive us er int erf ac es.
thr ou gh fru gal inn ov ati on
d 3 Jakh
s a vas t po sta l ne tw ork of ne arl y 1.55 lak h po st off i ce s an
IPP B1ha 1 inc rea se
. t, towd. . n an d village of the co un try to
po sta em p oyees m every 1stric
 CH. 7 : INDIA POST PAYMENTS BANK

75 .
· f ral banking infrastruct ure by almost 2.5 tirpes. IPPB addresses
the s ~ ~nd financial needs of over 5 crore customers in 37 states/unio n
0
the b . 5 currently .
...-itorie
te"·
t0
JJler Segtnent .
• CUS es its customers by fulfilling the financial and banking needs of its
JPP~:;. The products ~nd s~rvices_ are de~igned to fulfil the emergin.g need
cust t and Urban India. With India Post s legacy of serving the nation for
ofB~; years combined with the last mile connect of the trusted local 'Dakiya',
bver. ow very much possible. Whether it's farmers, senior citizens ' special-
this 1s n . .
bled persons, kirana ~t?re o~ners, students or housewives, IPPB has been
ly-a t rnake a difference 1n their lives by not only bringing banking services
ab1e o,r doorstep but .also creating . an ecosystem that promotes and supports
to theJ.J. .
inclusive growth.
♦ Diversified Product suite
!PPB through its diversified products and services delivers a holistic and
complete 360-degree banking experience that is contemporary, seamless, and
built for the new normal. ,JPPB's product and services portfolio is wide-ranging
and includes Savings Account, _Current Account, Money Transfer,- Utility Bill
Payments, Aadhaar enabled Payment Sys~em, Virtual Debit Card, Government
to Citizen services etc.
 UNIT 3: FINANCIAL SERVICES FR?M INDIAN POST OFFICES

POST OFFICE SAVINGS SCHEMES

Offi Savings Account . f .

t. Post ce . . . amount of Rs. 500 or opemng
Post Office saving Account re~wres al
an Account. There is no maximum i_m1 .
?"i~i~~'; minimum
.
withdrawal limit is
Rs. 50. The account ~ be opened by. . .
♦ a single adult

♦ two adults only (Joint A or Joint B)

♦ a guardian on behalf of a minor
♦ a guardian on behalf of a person of unsound mind
♦ a minor above 10 years in his own name
An individual can open only one account as a single account. Similarly, one
account can be opened as a single account in the name of a minor/unsoun?
mind/above IO yean; ofage (self). The minor or attaining majority has to submit
a fresh account opening fonn and KYC documents of his/her name at the con·
cemed Post Office for conversion to his/her name. At the end of the financial
Year fut~rest
st shal_l be credited to the account at the interest rate prescribed by
the Mmi ry of Finance. At the timi, of closure of the account interest wiil be
paid up to the Pre<;eding month in which the account is closed. Interest up to
TT Year is exempted from taxable Income u/s 80
o t e eamed
Rs.AlOf,ooho in a Financial
Income-tax Act.

Additional facilities available n p t ffi .

Aadhaar seeding, Cheque boo~
At: P:n~:~avi~gs accounts are ATM cards:
Suraksha Bima Yojana (PMsfly) d p YoJana (APY), Pradhan Mantn
Yojana (PMJJBY) an rad han Mantn Jeevan Jyoti Bima
 CH. 7 : INDIA POST PAYMENTS BANK
1.1
vings Recurring De pos it
·na lS3
z, Natt(). ear post office rec um.ng ·deposi· . t account.
It is a five-Y . gle adult, a gua rdi an on beh alf The Account can b e
of a min or or per son of uns oun d
0
pene d by a s~: or above 1O yea rs in his ow n nam e and it can also be ope
mind, ~r a rn~unt with a ma xim um of thr ee ned
adults. It req uire s a min imu m of
as a joint accrnonth or any am oµn t in _ m ulti ple of Rs. 1O as a deposit, the re is
s 100 per . . . .
R · ·rourn hnut.
norna: uent deposit is not ma de up to the pre scr
ibe d day of the mo nth , a
The ~ ~e~harged for eac h def aul ted mo nth
. The acc oun t dis con tinu es afte r
defa t;ia r defaults. It can be revived wit hin
two mo
f?ur relf not done so, no fur the r dep osi t can be ma nth s of the dis con tinu a-
non. d de and the acc oun t bec om e
discontinue . .
In a recurring deposit accou°:t, th~ adva°:ce dep
osi t can be ma ~e for upt o five
ears. It can me·mad~ at the tim e of ope~ing of acc
f he recurring deposit acc oun t also pr<:>vides
oun~ ?r any tim e the rea fter .
a lo~n facility of upt o 50 per cen t
of the balance credit in the acc oun t. Depqsitor
s can avail of ,a loa n wh en twelve
instalments -are deposited and the acc oµn t
is con tinu ed .at lea st for one year.
In case the loan is not pai d,till ma,turity,
. the loa n plu s inte res t will be ded uct ed
from the maturity value ot the Rec urr ing·Dep
osit accoup.t. t
The Recurring Deposit acc oun t can be closed
pre nia tur eiy afte r thr ee yea rs fro m
the date of opening of th'e acc oun t- b~t it sho
uld be not ed tha t in the cas e of ·
advance deposit, the acc oun t cari'be'closetl
•prerriaturely only afte r the adv anc e
deposit period gets over. On the dea th of the
acc oun t holder, the cla im can be
submitted by the nom ine e at the con cer ned
pbs t office to get th:e eligible bal-
ance of the Recurring Deposit. ~e r san ctiq
nin g of the claim and sub mis sio n
of the application the acc oun t cah be con tinu
. . ed by tpe ·nomiriee till ma tur ity.
'
3. National Savings Tim e De pos it Ac'cou ' ' '
nt . .
The Account ·can .be ope ned wit h,' a ininirrium
inv est me nt of Rs. 1000 and the re
is no maximum lim it for rein ves tme nt. The
.· Account type available are for 1
year, 2 years, 3 years and 5 yea rs. the inte
res t is pai d annually. It is to be not ed
that the investment und er a 5-year TD qualifi
es for the ben efit of sec tion SOC of
the Income-tax Act, ·1961. The dep osi t am oun
t is repayable afte r .the expiry of 1
Year, 2 years, 3 years and 5 yea rs (as the
cas e ma y be) fro m the dat e of opening. ·
?n maturity, the TD acc oun t can be fur the r
ext end ed for ano the r ten ure . The
mterest rate applicable to the respective TD
acc oun t on the dat e of ma tur ity is
applicable to the ext end ed per iod .
·
TD account can be clo sed pre ma tur ely but not
bef
_from the date of deposit. If the TD ·a cco unt clo ore the expiry of six mo nth s
sed afte r 6 mo nth s but bef ore 1
.Year, the Post Office savings acc oun t inte
res t rat e will be applicable. If a 2/3/5
Ye ar~ account pre ma tur ~ly .c los ed afte
r 1 year, inte res t ~hall be cal cul ate d
at 2 per cent less tha n of TD inte res t rat e (i.e.
1/2/3 years) for com pl~ ted yea rs,
and for par t per iod s less tha n a yea r, Pos
applicable. t Office savings inte res t rate s will be
·
 ,

UNIT 3: FINAN
, CIAL SERVICES FROM INDIAN POST OFFI C~S
7,lo
PPF prov ides a facility for with draw al wher e subs cribe rs after
~om pleti ng five
year s (exc ludin g the year of acco unt open ing) can take one
with draw al. .The
amo unt of with draw al can be 50% of the bala nce at the _e nd th 4
of e th preced.
ing year or at the end of the prec edin g year whic heve r I~ lowe
r. The maturity
perio d of PPF is 15 year s excluding the finan cial year of acco
unt open ing. The
optio ns avail able with depo sitor s ·on matu rity are:
♦ Can take matu rity paym ent by subr rutti ng acco unt clos ure form along
with pass book at conc erne d Post office
♦ Can retai n matu rity value in the acco unt with out any depo sit further.
PPF inter est will be applicable and paym ent can be take
n at any time
♦ Can extend the account for a furth er bloc k of five year s and so on.
The prem ature closer is allowed only after five year s from the
end of the year in
whic h the acco unt was opened. There is a dedu ction of 1 per
cent )nte rest from
the date of opening of the account. It is subj ect to the follo wing
cond ition s:
♦ In case of life-threatening disea se of the acco unt hold er or
depe nden t
children ·
♦ In the case of higher educ ation of acco unt hold ers or depe
nden t children
♦ In case of a change of resid ent s~atus of the acco unt
hold er
In ca_se of the death_of .the acco unt hold er, the·acco unt
shal l be clos ed and the
nonun~e or legal herr shall not be allowed to cont inue depo sits
in the
!:!:t~.:e:!~:::s::wt;~:,::t:!~~:t~t;1~!!~~erest is paid till the e:~ci:::,~
8. Seni or Citizen Savi ngs Sche me Acco unt
The account can be opened by:
♦ An indiv idual who is above 60 ye
. ars o f age
♦ Retired civilian employees abo 55
age, _subject to the cond ition th::i nv year s of age and belo w .
60 year s of
. receipt of retirement benefits estm ent be mad e with in 1 mon th of
♦ Retired defence empl
age; subject to th o~e~s above SO year of a
receipt of ref e cond ition that inve stmesnt b ge an
db .
♦ Th irement benefits .
elow 60 year s of
e mad e with in 1 mon th of
e account can be o .
spouse only pened m as indiv id I .
The minimum d . ua capa city or.jo intly with a
mum limit . epos1t required to
benefit of s;~t~ · 15 lak.h. The inve~pen an acco unt is Rs 1
quarterly ha . on 80C of the Inco tmen t unde r this sch. 000
and the maxi·
holder it d;is. If the interest pa m~- tax Act, 1961 Th . eme
qual ifies for the
prema~urely :~ not earn any ad~1~t· 1e is not clai~ ed qe inter est
any timea ft is paya ble on a
er the Iona}.
i t uart
n erest . The . erly b Y t h e acco unt
O pem ng of
th. acco unt can b I
e acco unt It. e c osed
· is to be note d that
 CH. 7 : INDIA POST PAYMENTS BANK

1.tt . closed wit hi~ on~ y~~ of ope nin g of acc

oun~ ~he~ no inte res t
. the 3ccountd1.5f
any inte rest 1s pai d 1t 1s reco ver ed from
if 3ble an i the pnn c1p al amo un~ .
is paY
nin g. In cas e o f
be closed afte r five yea rs from the dat e of ope
fbe acc oun }: account hol der , the acc oun t
ear ns inte rest at the ra~e o~ ~e
the dea~ 0 ving acc oun t from the dat e of dea th.
In cas e 't he spo use 1s a JOIDt
post offic~ sa nominee the n the acc oun t can
1 be con tinu ed till ma turi ty if the
hO}der ~r a ~0.~le to ope n a sen ior citi zen sav ing sch eme acc
e is e1igl oun t and doe s not
spOU5 ther scss Account. .
h veano .
a t can be exte nde d by the acc oun t hol der
for ano the r thre e yea rs
'fhe a;0:te of maturity. The acc oun t can be ext
end ed wit hin one yea r of
froIO . e The extended acc oun t ear ns inte rest
rnatunlY· whi ch is app lica ble on the dat e
.
of rnaturilY ·
~••1r... nya samriddhi Yojana
·
9.~
Th account can be ope ned by the gua rdia n in the
th: age of ·10 years. The acc oun t can be ope ned
nam e of the girl chi ld bel ow
for ma xim um of two girl s in
family. It is to be not ed tha t onl y one _acc oun t cana be
~ Post Office or in any ban k in the nam e of the girl ope ned in Ind ia eith er
chil d. The acc oun t can be
opened with a min imu m bal anc e of Rs. 250
a~d the m~ mu m dep osit can be
Rs. 1.5 lakh in a financial yea r in a lum p· sum
or inst alm ent s. The dep osit s can
be made upto 15·years from .the dat e of qpe
nin g of the acc oun t. The acc oun t
becomes a defaulted acc oun t if a min imu m c\ep
osit of Rs~250 is not dep osit ed
in an account in a fina ncia l yea r. The def
aul ted acc oun t can be rev ived bef ore
the completion ·of 15 yea rs by payfrig Rs. 2°50
plu s Rs. 50 for eac h def aul ted
year. The SSY offers ben efit s of ded uct ion und
er sec tion SOC of the Inc om e-ta x
Ac\. The account ear ns inte rest at the rate not
ifie d by the Min istr y of Fin anc e.
The interest is cred ited to the·acc oun t at the end
of eac h fina ncia l yea r. Inte rest
earn~ is tax-free und er the Inc om e-ta x Act.
The account is ope rate d by the gua rdia n till
t'4e girl chil d atta ins the age of
majority i.e. 18 years. The wit hdr awa l can be
tak en from the acc oun t wh en a
~l reaches the age of 18 or pas s clas s 10t h. The
18 ma xim um lim it of wit hdr awa l
upto 50 per cen t of th'e bal anc e ava ilab le at the
i~ar. The ~th dra wal can be in a lum p sum or inst
end of the pre ced ing fina ncia l
alm en! s. The mat urit y per iod
thr c~osure of the acc o~n t is afte r 21 yea rs from the
ope
bee hme of marriage of the girl chi ld afte r atta inin g thenin g of the acc oun t or at
age of 18 years. It is to
ont~ted that an acc oun t can be pre mat ure ly clos ed
a~e r five yea rs of ope nin g
Ym the following con diti ons :
·
• On the dea th of the acc oun t hol der
♦ Life-threatening dise ase
♦ Death of gua rdi~ n by wh om acc oun t ope rate d
• The pre scri bed app lica tion form alo ng wit
h the pas sbo ok is nee ded to
be sub mit ted to the con cer ned pos t office
account. for pre ma ture clo sur e of the
 I f

UNIT 3: FINANCIAL SERVICES FROM

. INDIAN POST OFFICES

POSTAL MONEY TRANS FER

1. Money order .
. ffi e a sum of money can be transferred to th
With the agency of the post O c ', , • the person named in the n-. e
person t hrough a money order· A Payeee is
is
to be paid. A remitte r is a
...,oney
Pers
th
order as the person to whom e mo~e~ offers the benefit of delivering monon
who sends the money order. Money 0 \ £ r which a single money order may~~
to the person's residence. The amoun ° · ue
issued must not exceed Rs. 5000.
The procedure for sending the money order is:
.
♦ Buy a money order 1orm c
a t the counter of the Post Office.
♦ Fill in the necessary details and sign at the foot.
♦ The money ord er 1orm c duly filled in' togethe r with the amount of the
b h • b
money order and Commission either in cash or y c eque e. presented
at the post office.counter.
♦ The Remitter receives the receipt' slip of the amount paid on account of
the money order and commission.
♦ After the money is paid to the payee, the remitte r receives the acknowl.
edgemei:J,t of payment of ~he amo_u nt of money order signed by the l?ayee.
However, in case a money order is issued in favour of ~e government or
district, local or municipal boards, the payee retains the acknowledgement
slip and issues a departm ental receipt to the r~mitte r directly.
The remitter of a money order which has _not been paid.may require that the
address of the payee or the name of the post office at which the order was qrig-
inally made payable, shall be changed . Such changes can be made by writing
to the post office at which.the order was issued withou t paying any addi~onal
charges. Sometimes the,rem itter may want to change the name of the payee,
the required change can be done by writing an applica tion to the post office at
which the order was wued and produci ng the receipt and giving full particulars
of the payee's address as entered in the money order and paying second com-
mission equal to the first. There might be a situatio n where the remitte r wants
to stop the payment and require that money be repaid to himself . This can be
done without, paying additional charges and in wtjting to the concern ed poS1
office. In no case, the post offie;e would be respons ible for the inabilit y or failure
to stop payment of a money order in complia nce with the remitte r's request.
2. Electronic Money Order (eMO)
\

An electronic money order is a web-bas ed rapid tran £ f ffi red by

India Post between two individuals within Indi Ths er ~ ~oney o e t of
hr . . a. e m1mmu m arnoun
money s~: t M~ugh e:c:u18bRs. 1 and the maxim um amoun t is Rs. 5000. The
money W1 e
fr ~n e s ursed within 24 hours. The money can be booked
om any e1ectromc money order centre The Indi p "d f il"ty of
sen di ng messages a long Wit
• h money
. through
· ost provi
MOa Th . es the ac 1 t·on
.e . e rem1tte r has the op 1
 CH. 7 : INDIA POST PAYMENTS BANK

7.1 3 sage while filling in details and it will be delivered along with
to write a :~no extra cost. _T he pa~ee receives money at home or the ~ayee

:e
the JlloneY oney from the post office as well. Electronic money ord~r 1s not
can co~ect tariff is similar to ordinary money order.
eXJJC051ve, •
t Money Order (iMO) ·
3· JnStaD t facilitates an instant online money transfer service.which is conve-
~dia Potable, instant artd affordable. ~O is an in~tant web-based money
111e0 \ re ervice in India between two resident individuals in Indian territory .
...,_.ns1er
u-:...5 pie • money throu gh 1MO.
s to send· and receive . The minimum amount
1
It ~ huncan be transferred through iMo is Rs. 1000 and the maximum amount
whiC
• Oc, 50 ooo.
IS~• I

iMO booking proce~ure is as follows: _

1. Remitter needs to fill ."To Remit Payment" (TRP-1) form and submit it
with-money at the iMO Post Office counter.
2. iMO counter clerk after booking the iMO will give a printed receipt with
a computer-generated confidential 16-digit iMO number in a sealed con-
dition.
3. The 16-digit iMO number is conveyed to the receiver over the phone,
SMS, e-mail etc.
4. The receiver fills up and submits "ro Make Payment" (TMP-1) along with
personal identity pI_"oof and presents16 ·~git .iMO number to the iMo
post counter.
5. The receiver can receive payment in cash upto Rs. 50,000.
4. Indian Postal Orders
Indian Postal Orders are the means· of remitting money ·from one place to
another through the post office. They used to be useful in transferring small
amounts like the application fees for government services. The amount is to
he paid at one post office and is paid to the recipient at the destination post
· office. The IPOs are available in the denominations of Rs. 1, 2, 5, 7, 10, 20, 50
and _100. While making payment through the iPO, you will need to fill in the
details of the recipient. The specific details include the Name of the payee and
the post office at which the payment is to be made.
~PO is valid for 24 months from the last date of.the month in which the IPO
is purchased from the post office. IPO older than 24 months as above can be
~evalidated for the next 12 months by paying a prescribed commission for th~t
enornination of IPO in the form of postal stamps to be affixed on the reverse
of_ the IPO. IPO older than 36 months from the last day of the month of issue
~ b~ forfeited if presented:for p~yment. In case of loss of IPO, a re~d can .
claimed by submitting a counterfoil to the Superintendent of Post Offices
~~er whosejurisdiction issuing post office operates. Hpwever, a refund of the
0st
IPO will not be made ·before the expiry of 36 months from the last day of
 UNIT 3: FINANCIAL SERVICES FROM INDIAN POST OFFICES 7,14

the month of the issue of the IPO. Claim fo~ loS t IPO should be_~ade Within
24 months from the last day of the month of i~sue. If a counterfoil ~s not ·avau.
able, then the number, date and post office of issue should be mentioned in the
application for refund.
The scheme of Electronic Indian Postal Orde~ (e~O) has been lau~ched by
nd
the Departmen t of Posts, Ministry of eommumc ations a Info~~tio n Tech.
nology, in association with the Departmen t of Personnel and Tr~IIllilg (DoPl).
This would enable Indian citizens abroad to pay the RTI fee online .. An India
Postctl Order can be purchased electronically by p~ying a fee online thro~
e-Post Office Portal or through the India Post website.
INTERNATIONAL MONEY TRANSFER THROUGH INDIA _POST
1. Collaboration with the Western Union finan.c ial services
Who ·is Western Union?
Western Union enable people to send and receive money through bank accounts,
cards, mobile w~ets or cash across countries and tenitories. It has a network
present in over 200 countries and.territories which has connected people, busi-
nesses, financial institutions, non-governmental organizatio ns (NGOs), and
governmental entities to send and receive money and make payments through
one of the world's most expansive, flexible, and versatile financial networks.
?ie re~tionship between the Western Union and the India Post Office began
m 2001: It has provided customers with an expanded array of services where
people_ m the re~otest area can receive money from almost any part of the
world m a few mmutes. ·
Initiative: International money transfer
With a money transfer service scheme benefi . . . Indi
tance from abroad such as re •tta ' cianes ID · a can receive remit-
mi nee towards family • t d .
tance favouring foreign tourists visitin Indi . mam enance an remit-
not permit sending remittances outw gd D a. It IS to be noted that MTSS does
ar ·· ep~ment of Post, the Government
of India in collaboration wi"th th e western
• . . uruo h .
mtemational money tFansfer. n as proVIded the facility of
International money transfer enables ins . :
~ound 195 countries and territ . 0 tantly rece1VIng remittance s from
NRI-dependent families in Indi:ne~ ~ . lnd_ia. The service fulfils the needs of
students studying in India. , VIs1ting internation al tourists and foreign

7.;,;e: ~:~t er fill~\; t~;'f:.!i~~He ::;~e;-;: union locations within

A remitter can avail the servi b . . . .
1
;:,:;::
1
on a re~eipt after the : ~th t?e charges. receive e amount and pays the
receiving the referenc ransbaction is sent through th s the reference number
. e num er. goe t h e system The payee on
receive money. On showin . s o t e post office nd . .
It takes ten minutes to g vahd identity proof th a fills out the foi:m to
USD 2500 for personal complete the Process. Th e pa~ee receives the money.
use. The amount paid to t~:i,axim~ ~ limit at a time is
enefic1ary in c~h is upto
 CH. 7 : INDIA POST PAYMENTS BANK
7.15 .
0 case the amou nt exceeds, the exceeding balanc e is paid throug h
In
JtS· 50,00 ·directly credited to the savings accou nt standi ng in the post office
cheque or e of the beneficiary. In a calend ar year, only thirty transa ctions can
ill the nam
. d by the b ene fi ciary
. · The b enefi c1ary
· · served as the most favour
1s ed
be receive rt
which ensures cou eous au e ffi c1ent
... d . service to them.
customer •
z. )IO videsh . . . .
be eficiary can avail the se1V1ce of sendin g and receiving money from
the dn It has been launch ed in associ ation with the·Eurog iro co~e bankin g
abroa ·of the British Post. It serves Intern ationa l ·mone y remitt ance needs like
system
sh-to-cash, cash-to-account and accou nt-to-c ash transfers. With this service,
cadians can send money abroa d throug h the post office for the first time. The
In •mum outward remitt ance is USD 5000·and maxim um 12 outwa rd remit-
rnaxi d. .
tances are allowe 1n a year. .
3. MoneyGram International Money Transfer
MoneyGram Intern ationa l Inc. is a global leader in the evolution of peer-t~-peer.
S?
payments serving over 1 ~on peo~le in the last five years. The compa ny
leverages its modern, mobile, and API-driven platfo rm and collaborates with the
world's top brands to serve consu mers throug h its direct-to-consumer digital
channel, global retail netwo rk, and embed ded -finance busine ss for enterprise
customers. On 29th Septe mber 2011 Depar tment of Post in collaboration with
MoneyGram Payment System s, Inc., starte d the MoneyGram intern ationa l
money transfer service throug h select ed post offices in India. It has facilitated
the person to receive money in cash with the help of MoneyGram agents or in
the bank account directly. .
In conclusion, it can be said that post offices have come a long way from being
amode of communication to a mode for the dissem inatio n of financial activity.
It assists the government in provid ing variou s financial benefits to the public .

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_

1. 'Explain in brief the featur es of Sukan ya Samri dhi Yojana.

.
2· Explain the evolut ion of post
office services in India. •
3. Mention the condit ions in which kisan vikas .patra can be transferred.
4. How is the post office facilitating· sendin
g and receiving money from
abroad? Also, provid e some altern atives available for fund transfer.
5
· Explain Indian postal orders in detail.
 S FR OM IN DI AN PO ST OF FIC ES
UNIT 3: FINANCIAL SERVICE 7-16

UiMi i!MU li!ie hat1s Ma ♦5-year-old daughter. Sh. ..

1. Mrs. x is a 40 ye ar s ol d w or n~ : Sh e 1s
y an d re ce iv in g Rs . 15 ,00 0 pe r m on th . She . aJs
working in a factor Is
· · n. A s an a d vi· se r su gg es t Mrs. X regarding t 0
· le for a widow pe ns io
eligib he
following:
♦ Identification of he
r fin an cia l ne ed s.
st office ca n he lp he r in fulfilling th ei r ne ed s?
♦ How po
va rio us po st of fic e sc he me s, especially · h
♦ Also, evaluate th e
of he r eli gib ili ty fo r su ch sc he m es an d th ei r requirei:~ts~
context