By Gopal Goswami,
The Division of Posts, now generally known as India Submit, has been the spine of the nation’s communication for over 150 years and has performed a crucial position within the social and financial development of the nation. It impacts Indian residents in a wide range of methods, together with delivering mail, accepting deposits beneath Small Financial savings Schemes, offering life insurance coverage protection beneath Postal Life Insurance coverage (PLI), Rural Postal Life Insurance coverage (RPLI), offering retail providers similar to invoice assortment, type gross sales, and so forth. India Submit additionally delivers varied authorities welfare advantages to residents, similar to MGNREGA and old-age pension funds.
It’s the nation’s solely community of publish workplaces, with the duty of offering communication, banking, and insurance coverage providers to all residents. With a excessive stage of recognition amongst rural residents, having lesser bother 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 p.c of publish workplaces are positioned, is usually native and thus acquainted with the neighborhood served by the Submit Workplace. Most of the services supply options which are applicable for the everyday particular person, similar to every day supply on the doorstep, supply of cash orders in money on the doorstep, and minor transactions within the Submit Workplace Financial savings Financial institution.
Following new guidelines, the Reserve Financial institution’s standards for the difficulty of latest banking licences in 2013, India Submit Launched Banking system, Prime Minister Narendra Modi inaugurated India Submit Funds Financial institution on September 1, 2018. With 23,483 publish workplaces presently related, the Submit Workplace Core Banking Resolution (CBS) system is the world’s largest at current. India Submit Fee Financial institution has the potential by 1.56 lakh publish workplaces across the nation, India Submit serves greater than 50 crore Submit Workplace Financial savings Financial institution (POSB) prospects.
India Submit with its fundamental options which may fetch wonders are as comply with: –
• Practically 156,000 publish workplaces, with 90% of them in rural areas.
• Virtually 416,000 staff, with 41 p.c being direct staff and 59 p.c 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 every year.
The banking arm of India Submit 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 aren’t ample to assist over 400,000 staff. India Submit’s largest opponent proper now’s its fastened price, which is consuming away its revenues and turning it into the nation’s largest loss-making PSU.
Given its present large community, India Submit must incrementally improve its community and attain out to cost-effective franchisee with outsourcing fashions. This might enhance India Submit’s general viability and efficacy, and to allow inclusion of many people who’re presently unserved or underserved, primarily in rural areas. The federal government’s give attention to equitable development presents a possibility to make use of the community for last-mile deliveries. MNREGA, outdated age, and a wide range of different pensions are already being paid.
The next are a couple of areas the place India Submit’s huge community could make a distinction: –
• Massive-scale mail parcel providers and transactional B-C mails. A median Indian receives ten mail parcel objects a yr, in comparison with 200 in Germany and 600 within the US.
• Insurance coverage providers, whether or not life or basic, don’t cowl 80 p.c 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, although India Submit, with its cost financial institution already in place, has the biggest entry.
• At present, there are not any invoice assortment methods 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. Individuals won’t object if India Submit can acquire these payments with a low service cost, as a result of they’re spending a complete day and few a whole bunch of rupees paying payments.
The opposite scorching space is E-Commerce, a quickly rising business 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 improve since 2016/17. Even on-line grocery gross sales are predicted to develop at over 55 p.c annual development charge, 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 shoppers uncover the comfort of purchasing on-line.
• Rural India is the biggest e-commerce market, however it’s primarily untapped. That is the place India Submit has a major benefit over the competitors.
• The ‘final mile downside,’ or getting items to the customer from the final level the place bulk objects could 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 Submit has a community in place and therefore has a bonus over the competitors.
• India Submit offers intensive protection in rural areas, with every publish workplace servicing a mean of 21 sq. kilometres.
• As a result of postmen are used to protecting enormous areas every day with tiny objects and delivering them to areas, they require little coaching to turn out to be E-Commerce supply chain’s “final mile provider.”
• There may be additionally a considerable likelihood for reverse supply. Postman also can choose up courier packets for onward supply whereas on his rounds delivering letters and e-commerce items.
• The Modi authorities has put a robust emphasis on Make in India and different programmes, that are paying off effectively and turning rural India into a producing hotspot; the India Submit E-commerce supply system, with its intensive assortment community, could help them in reaching out to city shoppers.
• There isn’t a 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 huge 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 yr 2019 and Rs. 15541 crores in 2020, the postal division has been India’s high loss-making entity. We are able to very effectively 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 creator is Analysis Scholar, NIT Surat. Views expressed are private and don’t mirror the official place or coverage of the Monetary Categorical On-line.)