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1 1 Rural Marketing & Business Opportunities. Trust of the local people Intimate knowledge of people and locality Central role in village life Cost effective.

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Presentation on theme: "1 1 Rural Marketing & Business Opportunities. Trust of the local people Intimate knowledge of people and locality Central role in village life Cost effective."— Presentation transcript:

1 1 1 Rural Marketing & Business Opportunities

2 Trust of the local people Intimate knowledge of people and locality Central role in village life Cost effective Experience of handling large sums of money

3 3 Mails Ordinary Post, Registered Post, Parcels, Book Post, Speed Post. Savings Bank Savings Bank, Recurring Deposit, Term Deposits, Sale of Cash Deposits etc. Insurance Rural Postal life Insurance, Retailing and others Telephone/Electricity Bill Collections, Sale of Recharge coupons, Micro Credit disbursement, Social Security Payments – pensions, wages, etc. Retailing of SBI Loan Products, Data Collection for Rural Consumer Price Index, Dissemination of MCX information on agricultural prices

4 Rural India Overview  70% of population lives in 5.5 lakh villages  26 % below BPL(260 Million)  39% of credit needs met by money lenders and traders  Tremendous Market Opportunities o Population - 90 crs.(30 crs. in urban India) o Per capita income grew in rural India exactly at the rate that it grew in urban India

5 Market Opportunities in Rural India Demand for Financial Services  > 50% of LICs business is in Rural India  Bank Credit cards issued o Kisan Credit Cards issued for farmers crores o General credit & debit cards issued crs.  Households with Bank Accounts o Rural households crs. o Urban households crs.

6  Demand for Retail Services o Government to Citizen Services – Pensions, Scholarships, Births & Deaths Registration, Electoral Roll enrolment… o E-Commerce - collecting orders/payments, delivery of goods o Utility Bill Collection Services 1.Rural Telephone Services o Subscribers Base – 4 crores o Generating 48 crs. bills per annum o If DoP does 25% Rs.5/bill – Rs.60 crs revenue 2.Electricity Subscribers o Total No. of Subscribers – 14 crores (Renewing India.org) o Bills generated - 14 crs bills/month o 25% bills distributed and collected gets huge revenue

7 Postal Insurance -The Rural Market THE RURAL MARKET Poor 54% of the total population Number of Rural Insurable Poor million Annual Household Disposable Income-up to Rs. 90,000 Near Poor 41% of the total population Number of Rural Insurable Near Poor 200 million Annual Household Disposable Income Rs. 90,000-Rs.2,00,000 The poor & near poor own over 250 million mobiles! Middle Class Annual Household Disposable Income Rs. 2,00,000 - Rs. 5,00,000 4% of the total population Rural Insurable Middle Class million Important to remember that India has Highest Household savings rate in the World Postal Insurance -The Rural Market THE RURAL MARKET Poor 54% of the total population Number of Rural Insurable Poor million Annual Household Disposable Income-up to Rs. 90,000 Near Poor 41% of the total population Number of Rural Insurable Near Poor 200 million Annual Household Disposable Income Rs. 90,000-Rs.2,00,000 The poor & near poor own over 250 million mobiles! Middle Class Annual Household Disposable Income Rs. 2,00,000 - Rs. 5,00,000 4% of the total population Rural Insurable Middle Class million Important to remember that India has Highest Household savings rate in the World

8 Harnessing the potential of India Posts Rural Network  DDG (Rural Business)  New Partnerships  Increasing Focus on Rural Retail Services o Rural Micro insurance – PLI Dte. o Micro Finance – Fin. Services o Mutual Funds – Fin. Services o Social Security payments – RB Div. o Logistic post services – BD Div.  Technology Induction – Rural ICT, Tech. Div.  GDS Training & Capacity Building  Designing rural market relevant products & services

9 Half of NREGA payments through Post Offices 4.25 Crore NREGA Accounts in BO, SO and HO Rs 8800 Crs of wages paid through rural POs in CPI now calculated for both urban and rural areas BPMs collect prices of 259 commodities, Collected from one BO in each District in the Country Inflation rate is determined on the basis of CPI data of urban and rural areas Rural PLI – from 6 th position to 2 nd position 60,00,000 rural postal life insurance policies, In six months 6 million lives insured in the National Micro Insurance Drive Branch Post Office – Achievements to be proud of 9 BPM as a Business Manager – Achievements to be proud of in rural post offices

10 10 Postal Insurance – National Micro Insurance Drive

11  Price information is made available at rural post offices  Farmers place orders for agricultural products  Supply to farmers

12  1181 villages covered  Data on prices of about 300 items collected every month  MIS is available to the Ministry of Statistics and Plan Implementation on web

13 Microcredit  Post Offices facilitate information of Self Help Groups (SHGs)  Credit given from corpus from NABARD  Recovery by Post Offices  No default so far  Fostering thrift habit  Empowering vulnerable groups Loans  Post Office procures loan applications  Loan sanction and recovery by the bank

14  4.5 crore Savings Bank accounts opened in 3 years  Wages amounting to Rs 8800 crore disbursed in  95,000 post offices involved in payments to wage earners  51% of total Mahatma Gandhi NREGS accounts are in post offices

15 15 Pilot projects on to technology induction for NREGS wages disbursement – Andhra Pradesh  Tripartite agreement in GoAP, DOP and AP Online  Wage payments through Point of Transaction Device (POTD) at PO with biometric authentication.  Provides required MIS reports to DOP & Govt. of AP  Coverage – 2 districts – Nizamabad & Nalgonda  Over 500 POs  Enrolled wage seekers - > 5,00,000  Wages disbursed in one ear - > Rs.250 crs.  Marching forward – > 4 lakhs Pension payments

16 APOnline Data Centre BO (MCC) NREGS State Data Centre SO 4 6 HO 7 3 Muster Roll 6 A P Online Pilot in Nizamabad Division for NREGS Wage Disbursement Process

17  Paradigm shift to become technology led organization  Rural ICT solution Low power, battery operated device On-line mode - data exchange with the central server on real time basis Off-line mode - data storage and download in encrypted form for uploading to the central server  Institutional last mile infrastructure to be created

18  12,999 Computerized post offices  1318 Post Offices On Wide Area Network  All 27,360 departmental Post Offices to be computerized and networked  1,29,000 Rural Post Offices to be connected through mobile data devices.  Multiple Channel ACCESS ( eg. Mobile, Web) As on Date

19 19 Devices Net Book Handheld Computers Thermal Printer Biometric Scanner 2D Imager Smartcard / Mag Stripe Reader and Writer Rural ICT Solution Overview Mobile Phone

20  Business Enablement Layer: enables creation of new products and services  Interaction Layer: provides customer interaction through multiple access channels such as Web, Call Centre, Retail (Post office, Point of Sale), Mobile, Kiosks, and Enterprise Desktop.  Customers can obtain account information, transaction details and service offerings

21  Web Based Products and services such as e-commerce to be offered  Fee collection and Data collection on behalf of service providers  Transactions on behalf of banks/ Booking of train/bus tickets  Bulk and corporate customers can exchange information directly with IT system of DOP  Services in rural areas at par with urban locations through mobile banking, remittances, acceptance of credit/debit cards (Through magnetic/smart card reader in case of On-line connectivity, and if GPRS not available, then a solution using SMS  →→ Business Houses and citizens can use network effectively for communication, banking, and service delivery needs

22 22 Minimize weakness - Over view of IT solution of India Post * Information & Communication Technology Customer Interaction Channels Setting up IT Infrastructure – Data Centre/ Connectivity Mail & Retail Operation s Postal Banking Solution Postal Life Insuranc e Solution HRMS & Payroll Finance & Account s MIS Reporting/ Business Intelligence/ IT Security India Post Data Warehouse

23 CBS - Future State – Structure

24 India Post would be 3 rd largest in CBS implementer in India 24

25 Reaching new heights Largest postal network – largest electronic postal network Financial Inclusion – NREGA, Insurance, Remittances Largest bank – Peoples Bank – CBS High Accessibility - high quality services Project Arrow

26 Envisioned Changes - Benefits Summary

27 Branch Post Office – Name of Village served by BO Family School College Students Farmer Worker Dairy, Industry 27 Use Pin Code NREGA payments …….Accounts Panchayat, Block Office Family of Migrant Worker Receive MO BPM as a Business Manager – Products and Services of Indiapost Financial Services

28 What is your response ? Five responses to a challenge – Avoid – Survive – Cope – Manage – HARNESS

29 Role of ASPs  On the cutting edge  Multiplicity of roles & responsibilities  Unfolding opportunities  Challenges o Traditional & changing nature of job o High Targets o Increased monitoring o Updating knowledge and skills

30 Harnessing the Potential  Enormous opportunity to make a difference  Need for planning and executing works  Starting from the Strengths o Strong Manpower base! o Reflected trust and credibility o Technology induction & new initiatives on the anvil  What & How to do? o Assessing the opportunities/scope o Planning the agenda o Consulting, Training & working with the Team o Operationlising the plans

31 Exercise Trainer to give 20 minutes to trainee groups to think over best ways & means to harness business potential in Rural areas (BOs). One of the groups to present in 20 minutes before the class. 31

32 32


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