1. Role of Post Offices in Social Banking
9th Annual Banking Summit cum Social Banking Excellence Awards th Sept 2013
Role of Post Offices in Social Banking
Empowering and Connecting India

2. India Post – The Last Mile reach
Urban POs
(10.16%)
Rural POs
(89.84%)
Post Offices
1,54,822
Departmental
Post Offices
25,444
Extra Departmental
Post Offices
1,29,378
2, 09, 000
Departmental
Employees
2, 58, 000
Extra Departmental
Employees
23,552 Computerized and internet equipped Post Offices.
On an average, a post office covers an area of sq. km and serves 7,817 people.
Role of Post Offices in Social Banking

3. Role of Post Offices in Social Banking
Savings Bank
Post Offices Savings Bank:
Small Savings Schemes in operation on behalf of Ministry of Finance since 1882 through more than 154,000 Post Offices
More than 279 million account holders with outstanding balance of Rs 6059 billion
Schemes offered include Savings Account, Recurring Deposit, Time Deposit , Monthly Income Account Scheme, Senior Citizens’ Savings Scheme , Public Provident Fund & National Savings Certificates
Role of Post Offices in Social Banking

4. Disbursement of Social Security Schemes
Mahatama Gandhi National Rural Employment Guarantee Act (MGNREA)
Pension Schemes
Indira Gandhi National Old Age Pension Scheme
Indira Gandhi National Widow Pension Scheme
Indira Gandhi National Disability Pension Scheme
Scheme for pregnant and lactating mothers
Providing cash directly to women during pregnancy and lactation
Role of Post Offices in Social Banking

5. Role of Post Offices in Social Banking
MGNREGA
Act provide at least 100 days of guaranteed wage employment in every financial year to every household
Disbursement of MGNREGA wages is being made through around 94,000 post offices across India through Post Office Savings Bank (POSB) accounts
Yeas wise Progress:
Year
Number of MGNREGA accounts (in million)
Amount disbursed (Rs. In milliom)
29.2
38,630
42.5
79,000
49.0
91,790
53.6
78,600
57.4
120,140
Total
408,160
Role of Post Offices in Social Banking

6. Role of Post Offices in Social Banking
Pension Schemes
These payments are being effected either through money orders or Post Office Savings Bank accounts
In , more than Rs million have been disbursed through 8.44 million accounts and more than Rs million have been paid through 42.8 million money orders
Role of Post Offices in Social Banking

7. Role of Post Offices in Social Banking
Scheme for pregnant and lactating mothers: Indira Gandhi Matritva Sahyog Yojana (IGMSY)
Conditional Cash Transfer (CCT) Maternity Benefit Scheme envisages providing cash directly to women during pregnancy and lactation
More than 0.21 million such accounts have been opened so far through which Rs million have been disbursed.
Role of Post Offices in Social Banking

8. Role of Post Offices in Social Banking
Remittances Services
Electronic Money Order ( eMO)
Facilitates ELECTRONIC remittance of Money Orders up to Rs. 5000/- (85 US$) electronically, between Post Offices.
Centralized MIS and online Tracking facility through 18 digit code
Facility of cash delivery at the doorsteps
Instant Money Order (iMO)
An instant online domestic money transmission service available in 15,540 POs
Amounts upto Rs 50,000/- (850 US$) can be transmitted and paid based on unique system generated iMO code number and valid ID proof
International Money Transfer Service
Instant transfer of personal remittances from 195 countries to beneficiaries in India
Being offered in association with WU since 2001 and with Money Gram since 2011
Amounts upto INR equivalent of 2500/- USD can be received by providing the unique Money Transfer number and valid ID proof.
Maximum of 30 transactions can be received in a year from one customer.
WU-IMTS available from 7312 locations and MG-IMTS from locations
Role of Post Offices in Social Banking

9. Remittance Services – contd.
International Money order Service through International Financial System (IFS)
Sent through the secured electronic channel of UPU
Inward remittance up to Rs 50000/- (850 US$) can be received in cash and above Rs 50000/- (850 US$) is paid by cheque
Each inward remittance is limited to $2500 through single transaction and a maximum of 30 inward remittances are allowed in a year to a single payee.
Rapid delivery (1) Within two days in eMO Service connected POs and (2) 5 days for offline offices.
Existing eMO Domestic Channel expanded is being used for IFS service
Service in Operation: with France
Agreement finalized : with Sri Lanka, Mauritius, Ukraine, Lao PDR and Cambodia
Discussion in process: With UAE, Malaysia, Belarus, Pakistan, Bangladesh, Indonesia, Vietnam, Portugal, Russia and Nigeria
Role of Post Offices in Social Banking

10. Remittance Services - contd
MO Videsh (through Eurogiro)
Only outward service Offered by India Post through Eurogiro Network
Available to all the countries except Myanmar, Nepal, Bhutan, Cuba, Iran and Sudan
Maximum limit of a single transaction is USD 5000 subject to RBI regulations and local legislation of the destination countries
Integrated with domestic remittance platform to ensure rapid delivery & online tracking
Dedicated monitoring unit “International Remittance Unit” set up at Mysore, India
An agreement has been signed to expand the service with Deutsche Bank, an approved US Dollar Settlement Partner of Eurogiro Network
Bilateral Agreements with Japan Post, Al Rajhi Bank, Saudi Arabia, Thai Post and Italy Post are in progressive stage
Role of Post Offices in Social Banking

11. Rural Postal Life Insurance
Introduced in 1995 with objective to provide affordable insurance cover to the rural population, especially women and weaker section
RPLI is the second largest life insurer in rural areas (after LIC)
20.71 million rural policies including 6 million policies of women
Provides financial security
Low premium payment
Premium payment facility at all Post Offices
Role of Post Offices in Social Banking

12. IT Modernization – Rural ICT Solution
Rural ICT Solution will introduce 1.3 Lakh mobile BOs
Tracking of accountable articles
Streamline mail process by scanning bar codes
Mail
Operations
Bridging gap between urban and rural India
Utility bill payments (water, electricity,)
Phone top ups, rail ticket bookings
Banking services for “unbanked” rural population
Availability of multiple channels for ease of transaction
Retail Applications
Postal
Banking
Branch Post Office
Focal point of delivery of social security schemes of the State
Reduction in fraud and errors through biometric authentication
Paying Social Security Schemes
Expedited distribution of insurance policies to the rural customers
Personalised smart cards for policy holders to enable paperless transactions
Rural Life Insurance
Money Order Transfer
Electronic and secure mode of money transfer into rural India
SMS confirmation of successful transfers

13. IT Modernization – Rural ICT Solution – The Architecture
Rural ICT Solution Overview
Handheld Computers
Biometric
Scanner
Thermal Printer
2D Imager
Smartcard / Mag Stripe
Reader and Writer
Devices
Role of Post Offices in Social Banking

14. Direct Benefit Transfer (DBT)
DBT envisages electronic crediting of social benefits into accounts and bio-metric authenticated payment to beneficiaries
DBT will ensure transparency and minimize pilferage
Rolled out in 121 districts of India. Other districts will be added soon.
Implementation of Rural ICT and Core Banking Solution (CBS) will enable India Post to roll out DBT through Post Offices shortly
India Post is using electronic Fund Management System (eFMS) for MGNREGA & Central Plan Scheme Monitoring System (CPSMS) for other schemes as an interim solution for electronic crediting of benefits
Role of Post Offices in Social Banking

15. Role of Post Offices in Social Banking
Thank You
Role of Post Offices in Social Banking