The Hindu Business Line : Enhancing postal dept’s revenue

Networking the 1,50,000 odd post offices will enable revival of the money order business but with a difference — funds can be remitted to the remotest corners of the country instantaneously. India Post can also tie up with banks, whereby their c lients, by using Internet banking, can remit money even to centres with no bank branches but having post offices. A win- win for both banks and India Post.

Tie-up with banks having a wide network, such as SBI, to take banking to the rural masses through the business correspondent/business facilitator (BC/BF) model, whereby the villager can operate his bank account through a smart card on a handheld device with the postman.

As email penetration is only going to increase, installing PC kiosks at post offices will enable even the common man who doesn’t own a PC, to send e-letters, at a trifling cost of, say, one or two rupees.

R. Vishvesh, email

Palakkadan S. Narayan

The move by the Department of Posts to go in for public-private tie-ups is welcome. With most private couriers making a lot of money, it is the right time for the postal department to enter into tie-ups with the private players.

Palakkadan S. Narayan, e-mail

There are many ways by which the postal department can earn more revenues. These include:

Having a dynamic Web site with up-to-date information on the services being offered;

Turning post offices into vibrant malls selling bouquets, greeting cards, gift cheques, etc;

Web-enabled money order transfers, repayment of small savings deposits, etc.

Converting postmen into postal relationship managers with powers to open small savings account and accept crossed cheques at the door steps of the customer and delivering the certificates the very day or next day.

Cross selling of products — mutual funds, life and non-life insurance, driving licences, ration cards, PAN cards, etc. — for a fee

V. Narayanan, email

The idea of tie-ups for reducing the losses of the Postal Department is indeed a welcome initiative. Post offices have a wide reach. As financial inclusion of the entire rural population is a formidable task, post offices can represent banks and function as a conduit for delivery of banking services and products to people in these areas.

Post offices can play an important role in promoting financial inclusion as agents of banks. If the postal department aggressively pursues tie-ups with banks and financial institutions it can surely find a lot of opportunity for its post offices to undertake remunerative work and earn huge fee-based and commission income. Through this strategy the postal department can surely reduce its losses.

K. K. Ammannaya, email

Cross selling of products and services is order of the day. Every industry is providing everything under one roof. Else, retaining existing customer and attracting new customers will be a challenge. Retail outlets and coffee shops are already operating out of some petrol bunks. Banks are cross selling insurance/mutual fund products and gold coins. The postal department has a network that covers the length and breadth of the country. If all the post offices are computerised and networked, they can provide services such as instant money transfer. The other avenues available for the post offices are air, train, and bus ticket booking, hotel accommodation, taxi arrangements, Internet browsing, sale of engineering applications, mutual funds, medi-claim insurances and mobile recharge coupons.

K. Nagarajan, email

Post office has a universal service obligation. India has the largest postal network in the world with 1,55,618 post offices as on March 31, 2003. New products and services are to be introduced and the existing ones strengthened as a part of the drive to increase revenue. The potential of the vast network needs to be harnessed. Banks, financial institutions and NGOs expand their services through the postal network. With the Indian economy growing at 8-9 per cent annually, the requirements of the postal services are also increasing.

Investment in human resources is essential to achieve the skill, expertise and knowledge for operating the services more competitively, efficiently and economically.

T. V. Jayaprakash, email

With the advent of information technology, the postal department moving into oblivion. Indian Post has not geared itself to keep pace with the changed environment. The Post has to acquire a new face. The following can help revive its lost glory:

Retailing and delivery of postal articles and services. Private sector joint partnerships will provide the necessary fillip

Make a foray into rural areas.

Adequate funds need to be allocated by the Centre to go online in core areas; this will go a long way to compete with the private players.

Partnering with private sector in providing e-commerce logistics.

Ashok Jayaram, email

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