Role of Post Offices in Social Banking 9th Annual Banking Summit cum Social Banking Excellence Awards 2013 16th Sept 2013 Role of Post Offices in Social Banking Empowering and Connecting India

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 21.23 sq. km and serves 7,817 people. Role of Post Offices in Social Banking

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

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

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) 2008-09 29.2 38,630 2009-10 42.5 79,000 2010-11 49.0 91,790 2011-12 53.6 78,600 2012-13 57.4 120,140 Total 408,160 Role of Post Offices in Social Banking

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 2012-13, more than Rs. 8137.9 million have been disbursed through 8.44 million accounts and more than Rs. 32000 million have been paid through 42.8 million money orders Role of Post Offices in Social Banking

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.45.27 million have been disbursed. Role of Post Offices in Social Banking

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 3369 locations Role of Post Offices in Social Banking

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

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

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

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

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

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

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