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Mr Dayanidhi Maran, Minister for Communications and Information Technology; Mr O.V. Bundellu, Executive Director, IDBI Ltd, and Ms Jyotsna Diesh, Member (Development), Postal Services Board, at the signing of the agreement of retailing Government securities, in Chennai on Monday. — Bijoy Ghosh

Chennai , July 18

THE Postal Department has started retailing Government of India securities following a tie-up with IDBI Capital Market Services Ltd.

Launching the service here today, the Union Minister for Communications and Information Technology, Mr Dayanidhi Maran, said the Postal Department has also sought the Finance Ministry's approval to get into banking operations.

Mr Maran launched a range of services, including Direct Post, a service for the corporate sector to distribute its brochures and pamphlets through the Postal Department, and released an envelope of Rs 5 denomination that can accommodate A4 sized sheets of paper folded thrice.

Now, postmen will not only deliver letters but also pick up letters, including Speed Post, at customers' doorstep. Stamps will also be available in packs of Rs 100 and Rs 200 so customers can stock up as needed.

These are part of the department's efforts to expand and diversify its services to attract customers and increase customer service.

With the tie-up between the Postal Department and IDBI Securities, individuals can buy Government of India securities through specific India Post branches in Delhi, Chennai, Mumbai and Hyderabad. Any member of the public will just need a demat account with a depository participant of National Securities Depository Ltd or Central Depository Services Ltd and a bank account in the local area of the post office through which the investment is made.

Mr Maran said that the postal department's nature of work ensured that it would be a heavily staffed department with a wide reach. The department was now looking at exploiting this strength and infrastructure to advantage.

For instance, it has over Rs 3,75,000 crore in fixed deposits and 18 crore customers. But as of now it only takes and pays out the deposit amount. If it were to get into banking it would be bigger than the State Bank of India, the largest bank in the country. His Ministry has approached the Finance Ministry for permission to let the Postal Department start banking operations, he said.

The issue of the Rs 5-stamped Sesquicentennial envelope measuring 22 cm X 11 cm comes nearly 40 years after the conventional 14 cm X 9 cm envelope was launched. With the arrival of the email and expansion of telecommunication services person-to-person letter writing was coming down.

But business letters and parcels were on the increase, he said.

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