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By Gopal Goswami,

The Division of Posts, now generally known as India Publish, has been the spine of the nation’s communication for over 150 years and has performed a vital position within the social and financial progress of the nation. It impacts Indian residents in a wide range of methods, together with delivering mail, accepting deposits below Small Financial savings Schemes, offering life insurance coverage protection below Postal Life Insurance coverage (PLI), Rural Postal Life Insurance coverage (RPLI), offering retail providers corresponding to invoice assortment, type gross sales, and so forth. India Publish additionally delivers numerous authorities welfare advantages to residents, corresponding to MGNREGA and old-age pension funds.

It’s the nation’s solely community of publish places of work, with the duty of offering communication, banking, and insurance coverage providers to all residents. With a excessive degree of recognition amongst rural residents, having lesser hassle connecting to its community, it’s amongst India’s oldest establishments, with well-established and time-tested procedures. The workforce in rural areas, the place 85 % of publish places of work are positioned, is usually native and thus accustomed to the group served by the Publish Workplace. Most of the services supply options which might be acceptable for the everyday particular person, corresponding to day by day supply on the doorstep, supply of cash orders in money on the doorstep, and minor transactions within the Publish Workplace Financial savings Financial institution.

Following new guidelines, the Reserve Financial institution’s standards for the problem of recent banking licences in 2013, India Publish Launched Banking system, Prime Minister Narendra Modi inaugurated India Publish Funds Financial institution on September 1, 2018. With 23,483 publish places of work at present related, the Publish Workplace Core Banking Answer (CBS) system is the world’s largest at current. India Publish Fee Financial institution has the potential by way of 1.56 lakh publish places of work across the nation, India Publish serves greater than 50 crore Publish Workplace Financial savings Financial institution (POSB) clients.

India Publish with its essential options which may fetch wonders are as comply with: –

• Almost 156,000 publish places of work, with 90% of them in rural areas.

• Virtually 416,000 staff, with 41 % being direct staff and 59 % being Gramin Dak Sewaks within the rural space once more.

• Estimated whole income of Rs 13,600 crore, losses of Rs 14,800 crore, and pension funds of Rs 10,000 crore each year.

The banking arm of India Publish has deposits of Rs 8.23 lakh crore, greater than Punjab Nationwide Financial institution. PNB has 100,000 staff, which is lower than 1 / 4 of IP. Deposits of Rs 8.23 lakh crore should not adequate to assist over 400,000 employees. India Publish’s greatest opponent proper now could be its mounted price, which is consuming away its revenues and turning it into the nation’s largest loss-making PSU.

Given its present large community, India Publish must incrementally enhance its community and attain out to cost-effective franchisee with outsourcing fashions. This could enhance India Publish’s general viability and efficacy, and to allow inclusion of many people who’re at present unserved or underserved, primarily in rural areas. The federal government’s give attention to equitable progress presents a possibility to make use of the community for last-mile deliveries. MNREGA, previous age, and a wide range of different pensions are already being paid.

The next are a couple of areas the place India Publish’s huge community could make a distinction: –

• Giant-scale mail parcel providers and transactional B-C mails. A mean Indian receives ten mail parcel objects a 12 months, in comparison with 200 in Germany and 600 within the US.

• Insurance coverage providers, whether or not life or normal, don’t cowl 80 % of the agricultural market.

• There may be untapped potential by way of migrant cash switch and small enterprises that serve the whole India market.

• 40% of the agricultural inhabitants lacks entry to institutional credit score, even if India Publish, with its cost financial institution already in place, has the biggest entry.

• At the moment, there are not any invoice assortment techniques in place in rural areas, residents are compelled to pay their electrical energy payments, phone payments, insurance coverage premiums, and property taxes within the nearest city. Folks won’t object if India Publish can acquire these payments with a low service cost, as a result of they’re spending a complete day and few a whole lot of rupees paying payments.

The opposite sizzling space is E-Commerce, a quickly rising trade in India. Volumes are rising at a dizzying tempo, with income estimated to succeed in Rs 15-20 lakh crore by 2025/26, representing a six-fold enhance since 2016/17. Even on-line grocery gross sales are predicted to broaden at over 55 % annual progress price, reaching Rs 1.5 lakh crore in 2024. There may be little doubt that e-commerce will develop within the subsequent few years as web entry and smartphone utilization rise, and customers uncover the comfort of procuring on-line.

• Rural India is the biggest e-commerce market, however it’s primarily untapped. That is the place India Publish has a big benefit over the competitors.

• The ‘final mile drawback,’ or getting items to the customer from the final level the place bulk objects might be carried, is a significant problem for all e-commerce companies. The final supply leg is the costliest within the E-Commerce supply system, however India Publish has a community in place and therefore has a bonus over the competitors.

• India Publish gives in depth protection in rural areas, with every publish workplace servicing a median of 21 sq. kilometres.

• As a result of postmen are used to masking big areas every day with tiny objects and delivering them to areas, they require little coaching to develop into E-Commerce supply chain’s “final mile service.”

• There may be additionally a considerable probability for reverse supply. Postman also can decide up courier packets for onward supply whereas on his rounds delivering letters and e-commerce items.

• The Modi authorities has put a powerful emphasis on Make in India and different programmes, that are paying off nicely and turning rural India into a producing hotspot; the India Publish E-commerce supply system, with its in depth assortment community, might help them in reaching out to city customers.

• There isn’t any different organisation in India with such a broad attain throughout the nation with such an enormous power of well-trained “Postmen.” All that’s required is for it to organise its capabilities, type partnerships with large E-Commerce and courier firms, and make the most of its geographic attain (particularly in villages).

With an annual loss to the exchequer of Rs. 19,000 crores in fiscal 12 months 2019 and Rs. 15541 crores in 2020, the postal division has been India’s high loss-making entity. We are able to very nicely flip this loss-making company right into a profitable organisation within the coming years with the Invoice assortment system and the E-Commerce providers in place in rural India.

(The writer is Analysis Scholar, NIT Surat. Views expressed are private and don’t mirror the official place or coverage of the Monetary Categorical On-line.)

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