Financial inclusion: New Post Bank of India is an excellent idea

Dear Comrades,

The marginal cut in small savings interest rates on Monday turns the spotlight on the post office as a potential candidate for a new bank licence.

India Post seldom figures in the list of those reportedly vying for a bank licence, but its credentials fit the bill almost to a T. Consider. A prime reason for issue of new bank licences is financial inclusion. By that criterion, India Post is an automatic choice.

With close to 1,55,000 offices, a majority of them in rural and semi-urban areas, and 30 crore deposit accounts, India Post can do what commercial banks have tried to over the years, but with limited success.

It can bring vast unbanked sections of the population under the formal banking network. It already does virtually everything a bank does, except granting loans.

Most post offices are already computerised and interest rates on small savings have been partly deregulated, so there is no reason why it cannot upgrade its operations and take up the full gamut of banking operations.

There are enough examples all over the world, notably in Japan and Germany, of post offices successfully offering banking services. What about the strict norms laid down by the RBI for grant of new bank licences? Will India Post be able to make the grade?

It is advantageously placed on many counts: ability to meet the minimum paid-up equity (Rs 500 crore), a satisfactory "past record of sound credentials and integrity" with a successful track record of 10 years and, most important of all, it will be able to meet the requirement of having at least 25% of its branches in unbanked rural areas with a population of less than 10,000.

There is only one aspect where India Post might find compliance difficult: the requirement that the bank should be set up through a wholly-owned non-operative financial holding company.

But this is a problem it shares with stateowned banks, which calls for a common solution. It should certainly not be a stumbling block to creating a new Post Bank of India.

 economictimes.indiatimes.com

Need for introducing modern technology in post offices: Vohra

Dear Comrades,

Jammu and Kashmir Governor N N Vohra today emphasised the need for introducing modern technology in the post offices of the state to improve their functioning.

"There is a need for introducing modern technology and upgrading logistics to bring continuing improvements in the functioning of post offices, particularly in the rural areas," Vohra said during the inauguration ceremony of the Post Office Summit at the Police Auditorium here.

The Governor, highlighting the importance of post offices, observed, "Indian Postal Department is among the oldest organisations in the country which has for decades past provided valuable services to the people, particularly those living in the remote and difficult parts of the country".

Vohra on the occasion also gave away Dak Sewa Awards for 2011 and 2012.

The awardees included 19 functionaries of the Department of Posts, J&K Circle, and two post offices for providing commendable services to the people.

business standard

Sibal tries to upstage Chidu, launches all-women post office

Dear Comrades,

Telecom Minister Kapil Sibal has stolen the thunder from his other ministerial colleagues on Women’s Day. If Finance Minister P Chidambaram made news and drew initial applause from UPA chairperson Sonia Gandhi, Leader of Opposition Sushma Swaraj and Lok Sabha Speaker Meira Kumar by announcing an all-women bank, Sibal has gone a step ahead by quietly working on an all-women post office. The post office was inaugurated today at Shastri Bhawan in New Delhi.

Various public sector banks, departments and ministries have been vying to draw attention with liberal splurging on big advertisements in various publications for what they call a noble cause: giving a sense of pride to women and raising awareness to treat them with dignity and respect. It’s a different matter though that the morning headlines in prominent dailies painted a scary picture on the issue of women safety in Delhi and the National Capital Region (NCR).

In this backdrop, no one can be particularly sure of the driving idea behind Sibal’s all-women post office at Shastri Bhawan, adjacent to Parliament and one of the most secure places in the national Capital. Shastri Bhawan houses around a dozen department and ministerial offices of the Union government. High and mighty ministers have their offices and the place is under 24X7 strict vigil of Central Industrial Security Force (CISF). Delhi Police provide the outer ring vigil.

Sibal at the innauguration of the all-women post office. Image courtesy: PIB

There was no official word or study to show that the women employees and visitors felt insecure entering a post office in same area that had male employees. In fact, post office employees (male included) appeared to be relatively subdued as compared to their counterparts in other government departments. It would be interesting to see if in the days to come the new or the nation’s first all-women post office sees rise in number of women visitors.

The prospect of higher number of male visitors frequenting this first women post office could be high. After all, there would be a great deal of curiosity about it. But whether or not that brings greater business to the Indian Postal Department, or to that post office, would be known only after a year. For now, no one is complaining in Shastri Bhawan and in other big government buildings in the neighbourhood. Employees at all levels, senior officers to lowly babus are amused about Sibal’s move.

“In coming days, I believe there will be more all-women post offices across country for convenience of women. This is first office in the country where all employees will be women. The government is looking into problem faced by woman and this is just a symbolic step,” Sibal said.

The next such post office is coming in North-Campus of Delhi University. The official reason: a high concentration of female students in the campus, both as resident and as day scholars. With the advent of mobile phones not many of them go to post office in any case. But that’s gesture from the government to convey to female students that it cares for their safety and was creating a better living environment in the campus.

P Gopinath, Secretary, Department of Posts, had a different rationale to offer for opening all-women post offices.

“There is a different comfort level when women interact among themselves. Keeping all this in mind we will open post offices in places where there are large number of women. We have identified Mumbai, Chennai, Chandigarh, Lucknow, Hyderabad and Bangalore to start with,” she said.

Later in an informal chat with media personnel, Sibal said the experience from all women-post office would be a useful feed back for the all-women bank, promised by Chidambaram in the Union budget. It could also be used for basic research work for the hyped bank. What kind of feedback the Finance Ministry will seek and receive from this post office will be interesting to note.

firstpost.com

‘2,000 postal department vacancies to be filled’

Dear Comrades,

VISAKHAPATNAM: Around 2,000 vacancies in the postal department are going to be filled soon, said the Union minister for communications and information technology, Killi Kruparani.

About 1.5 lakh post offices in the country would be modernized and computerized by March 2014 at an estimated cost of Rs 4,700 crore, he said. An Automated Mail Processing Centre (AMPC) at Hyderabad, the third one in the country after Delhi and Kolkata, would come up soon near Golconda and have the capacity to sort 30,000 mails every hour, said the minister. 

Times of India

If India Post can run a bank, so can anyone with land

Dear Comrades,

No matter how many times a bad idea is killed in India, it has a way of resurfacing in some form or the other. Despite being shelved several times over the last two decades, the idea of a Post Bank of India never dies a complete death. It is re-emerging, this time riding the catch-all justification called "financial inclusion".

That even a business-literate newspaper like The Economic Times is now championing the idea is indicative of the inherent attraction of the flawed your-beauty-and-my-brains logic. Hey, I have 1.55 lakh branches, and you need financial inclusion. So make me a bank.

In an editorial today , the pink daily says: "India Post seldom figures in the list of those reportedly vying for a bank licence, but its credentials fit the bill almost to a T. Consider. A prime reason for issue of new bank licences is financial inclusion. By that criterion, India Post is an automatic choice. With close to 1,55,000 offices, a majority of them in rural and semi-urban areas, and 30 crore deposit accounts, India Post can do what commercial banks have tried to over the years, but with limited success."

Look at the logic closely and what the editorial is saying is this: India Post has a lot of real estate in villages and financially excluded places, It is already taking in deposits, so it is ready to become a bank.

If it were that simple, any retailer with real estate in the right places should be ideally positioned to become a bank. How about Bata as a semi-urban bank? Why not every rural police station? Even better, they could guard the cash better. There are lots of kirana stores in rural areas. Why not give them a bank franchise?

We have to look at the real reasons that are driving this proposal to debunk the idea.

One, India Post is making losses. So we need a bank to bring in the profits. In this financial year, losses could top Rs 6,800 crore .

Counter-argument: If you can’t run your existing business well, and costs escalate independently of revenues, how are you going to run another business (banking), which you know nothing about, well?

Two, India Post's core business delivering letters and parcels is gutted. This is because the profitable part of the business has been taken over by private couriers. So India Post needs a new business to run. So why not banks?

Counter-argument: If your main business is a losing proposition, you either need to shut it down or seek a new idea that is contiguous to it. If no one is writing letters, why not convert post offices into cyber cafes, which print email? If email is the new postcard, why not make email and letter-printing the new business of rural POs? This may not bring profits, but will at least cut down losses. But there could be even better ideas for leveraging India Posts people and real estate.

Three, India Post is overstaffed. The department of posts has 4,87,621 people employed in it and it plans to spend over Rs 10,900 crore on them in 2013-14. A bank will presumably soak up some of the excess staff.

A modern bank needs completely different manning and automation levels, and if these skills are available more in urban areas, you won't be able to get competent people to serve time in villages

A modern bank needs completely different manning and automation levels, and if these skills are available more in urban areas, you won't be able to get competent people to serve time in villages.

Counter-argument: There is no way bureaucratic post office personnel can become modern bankers, at least not all of them. A modern bank needs completely different manning and automation levels, and if these skills are available more in urban areas, you won't be able to get competent people to serve time in villages. The answer to overstaffing is not a new business, but humane forms of retrenchment.

Four, there is the financial inclusion argument we talked about right at the outset.

Counter-argument: Financial inclusion does not mean you become a bank. You can team up with an existing bank or many banks and make them pay rent (or share profits) for the space they occupy in rural post offices. This is a risk-free way to leveraging 1.55 lakh post offices for financial inclusion.

Five, there is the point that post offices anyway run deposit schemes, so why not make them give out loans as well? Like a full-fledged bank?

Counter-argument: Post offices are very poor at servicing customers. Check with any post office and find out who likes doing business there. People are forced to go there only because that is where tax-saving schemes like NSCs and post office monthly income schemes are sold. Also, it is easy to stash black money in post office savings schemes.

Six, other countries have done it. Germany has a post office bank, and so does Japan. So why not India Post?

Counter-argument: These countries set up their post banks long ago, and they also have better standards of governance and accountability. We don't. Somebody doing something does not automatically mean we should do the same.

What post offices may be competent at could be taking in deposits. There may thus be a case for giving them a licence to become deposit-taking institutions, without lending operations. This is way short of making the post office a bank. Lending needs different skills including money management, risk assessment, and the ability to monitor credit accounts on a continuous basis. Post offices have no such skills.

However, if one accepts that even public sector banks have not been particularly good at managing bad loans, and tend to lend money under political pressure, post offices will be even more vulnerable since they will be operating in rural areas where thugs and rural vested interests operate. Unlike nationalised banks, many of which are listed, an unlisted Post Office Bank of India will be continually under political tutelage. What we will end up creating is yet another institution that soaks up capital from the exchequer without any kind of public accountability.

So what are the best options?

The best option is for the post office to team up with banks in specific regions either for a fixed annual payment or even for free (government owns post offices and banks, after all). If Bank of India teams up with all post offices in Maharashtra to set up branches, you will automatically have rural inclusion and better banking sense.

The second-best option is to allow the Post Bank of India to become a "narrow bank" one that only takes in deposits, does limited cash management, and invests wholly in government bonds but does no commercial lending that can result in bad loans. This way returns will be lower, but if financial inclusion is the goal, lower returns will be acceptable. There will also be no risk of frequent government bailouts or huge capital infusions every other year.

But as far as the depositor is concerned, it will be a real bank which issues cheque books, and allows people to draw or deposit cash.

The worst option is to make Post Office Bank a real bank. It will be a permanent albatross around the taxpayer's neck.

 moneycontrol.com

TCS set to bag Rs 1,100-cr contract from India Post

Dear Comrades,

Tata Consultancy Services is close to bagging a Rs 1,100-crore systems integration contract from India Post as part of the latter’s drive to modernise its technology infrastructure, it is reliably learnt. 

The five-year deal would make TCS accountable for overall implementation of ‘India Post 2012’, a multi-faceted IT automation programme announced by the Department of Posts (DoP) three years ago. 

As a precursor to formalising the arrangement, DoP issued a Letter of Intent last week to the country’s largest software exporter, sources close to one of the bidders told Business Line. TCS is expected to sign a contract with DoP in the next two weeks. 

Postal ATMs to come up soon

Dear Comrades,

TRICHY: Soon, public who have invested in post office savings scheme can transact through exclusive Automatic Teller Machines (ATMs) that will come up at some post offices in Trichy region. The facility,which will come up once the postal department completes the process of connecting the post offices under the core banking facility, will enhance convenience to account holders.

The postal department has decided to bring all the branches under the core-banking facility. As a pilot project, the ATM centres will be set up in six head post offices in Trichy, Thanjavur, Pudukkottai, Kallakurichi, Kumbakonam and Nagapattinam, probably, in June this year.

TCS, Capgemini bag Norway Post contract

Dear Comrades,

NEW DELHI: Tata Consultancy Services and global outsourcing services firm Capgemini have been awarded contracts worth $43 million (about Rs 233 crore) each from Norway Post to operate and manage its applications. The 6-year deal encompasses delivery of a wide range of services across Norway Post's core portfolio of 55 applications. It delivers over 36 million packages and 2.2 billion letters annually.

With e-postal order, RTI now within Indian Americans’ reach

Dear Comrades,

Indians living abroad, especially those in the US have welcomed the launch of the electronic postal order, which they say would go a long way for them seeking information from the Indian Government and other state governments under the Right to Information Act.

A number of Indians living in the US said that RTI has now become accessible to the Indian citizens living abroad after the Postal Department last week launched Indian postal order in electronic format (eIPO).

“With eIPO, I now have the ability to discern conflicting information about governance in India in the news by going directly to the source — the Government,” Vishal Kudchadkar, a volunteer with the non-profit Association for India’s Development (AID) at Los Angeles, told PTI.

Consumer Price Index Numbers for Industrial Workers (CPI-IW) February 2013

Dear Comrades,

Consumer Price Index Numbers for Industrial Workers (CPI-IW) February 2013

According to a press release issued today by the Labour Bureau, Ministry of Labour & Employment the All-India CPI-IW for February, 2013 rose by 2 points and pegged at 223 (two hundred and twentythree). On 1-month percentage change, it increased by 0.90 per cent between January and February compared with 0.51 per cent between the same two months a year ago. The largest upward contribution to the change in current index came from Food group which increased by 1.28 per cent, contributing 1.40 percentage points to the total change. This was followed by Miscellaneous and Fuel & Light groups with 0.62 and 0.80 per cent increase respectively contributing 0.27 and 0.11 percentage points to the change. At item level, largest upward pressure came from Rice, Wheat & Wheat Atta, Fish Fresh, Goat Meat, Poultry (Chicken), Milk, Onion, Tea (Readymade), Electricity Charges, Rail Fare, Petrol, etc. However, this was compensated by Root Vegetables and Sugar, putting downward pressure on the index. The year-on-year inflation measured by monthly CPI-IW stood at 12.06 per cent for February, 2013 as compared to 11.62 per cent for the previous month and 7.57 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 14.98 per cent against 14.08 per cent of the previous month and 5.08 per cent during the corresponding month of the previous year. At centre level, Belgaum and Munger-Jamalpur centres recorded the largest increase of 7 points each followed by Vijaywada, Tiruchirapally and Jharia (6 points each). Among others, 5 points rise was registered in 5 centres, 4 points in 6 centre, 3 points in 9 centres, 2 points in 14 centres and 1 point in 15 centres. On the contrary, 4 points decline was reported in Coimbatore, followed by Tirpura and Guwahati (3 points each) and 1 point in 7 centres. Rest of the 14 centres’ indices remained stationary. The indices of 41 centres are above All-India Index and other 36 centres’ indices are below national average. The index of Haldia centre was at par with all-India index. The next index of CPI-IW for the month of March, 2013 will be released on Tuesday, 30 April, 2013. The same will also be available on the office website www.labourbureau.nic.in. ST/-  (Release ID :94335) PIB

CELEBRATION OF HOLY FESTIVAL AT KORAPUT HO

Dear Comrades,

Snaps taken during the celebration of holy festival by staff of Koraput H.O.

Consolidated instructions relating to action warranted against Government servants remaining away from duty without authorisation / grant of leave-Rule position.

Dear Comrades,

Consolidated instructions relating to action warranted against Government servants remaining away from duty without authorisation / grant of leave-Rule position.

To view Department of Personnel & Training OM No. 13026/3/2012-Estt (Leave) dated 28th March,2013 please Click Here.

Recommendation of Department Relates Parliamentary Standing Committee on Compassionate Appointment-reg.

Dear Comrades,

Recommendation of Department Relates Parliamentary Standing Committee on Compassionate Appointment-reg.

To view Department of Personnel & Training OM No.41013/1/2013-Estt. (D) dated 25th March, 2013 please Click Here.

STAGE SET FOR A JOINT ACTION BY ALL C.G.EMPLOYEES DEMANDING 7th CPC INCLUDING RAILWAYS AND DEFENCE

Dear Comrades,

STAGE SET FOR A JOINT ACTION BY ALL C.G.EMPLOYEES DEMANDING 7^th CPC

MOVEMENT LAUNCHED BY THE CONFEDERATION CULMINATING IN A STRIKE ON 12.12.12 PAVES WAY FOR A UNITED PLATFORM OF ALL C.G.EMPOLOYEES UNDER THE JOINT BANNER OF ALL INDIA RAILWAYMEN FEDERATION - ALL INDIA DEFENCE EMPLOYEES FEDERATION - & CONFEDERATION OF C.G.EMPLOYEES.

NATIONWIDE DEMONSTRATIONS BY THE ENTIRETY OF C.G.EMPLOYEES ON 29th APRIL DEMANDING CONSTITUTION OF 7th PAY COMMISSION IS CALLED UPON BY THE ABOVE ORGANISATIONS.

JOINT CALL ISSUED BY AIRF - AIDEF - CONFEDERATION IS PLACED IN OUR WEBSITE FOR WIDEST CIRCULATION AMONG THE EMPLOYEES TO PREPARE THEM FOR A MASSIVE DEMONSTRATION ON 29.04.2013.

Upgradation of Turudihi BO a/w Raighar SO as Turudihi Delivery S.O.

Dear Comrades,

DEPARTMENT OF POSTS: INDIA

OFFICE OF THE POSTMASTER GENERAL, 

BERHAMPUR REGION, BERHAMPUR-760001

Memo.No.ESP/5-31/2012-13         dated at Berhampur the 26.03.2013.

          Approval of the competent authority is hereby accorded for upgradation of Turudihi GDS BO in account with Raighar SO into a Departmental Delivery SO under Jeypore H.O. of Koraput Division by redeployment of staff with immediate effect.

          The new Departmental Delivery SO will be opened with the following.

Sl.No.	Designation	Number	Arrangement of staff
1.	TSSPM	01(One)	By redeployment one PA from Raighar SO
2.	GDSPacker	1(one)	By redeployment of existing GDSBPM
3.	GDSMD	1(one)	Existing
4.	GDSMC	1(one)	Existing

The posts proposed to be redeployed should be given effect simultaneously by issuing a single order.

          Following 08(eight) GDS BOs will be tagged with Turudihi new DSO and will continue to function in account with Turudihi from the date of opening after being diverted from Raighar SO. SSPOs, Koraput Division will take necessary action to transfer all these BOs to Turudihi.

1. Jadapara 2. Parchipara 3. Deobharandi 4. Hatbharandi 

5. Jodinga 6. Kaudola 7.Khuduku 8.Parchipara.

          A formal memo indicating the detail mail arrangements of new DSO and BOs tagged with this DSO, authorized cash and stamps balances, hours of business, demarcation of delivery jurisdiction, lines and stages etc. to be issued by SSPOs, Koraput Division endorsing copies to all concerned.

         The new DSO should be opened by 30.03.2013 under the annual plan target 2012-13 by the SSPOs, Koraput Division observing usual formalities and the covering memo. in this regard be issued to all concerned and date of opening intimated to this office.

The SSPOs, Koraput Division will locate a suitable building, preferably a rent free one for functioning of Turudihi DSO.

          The expenditure incurred towards opening of the new DSO by redeployment of staff may be booked under the relevant Plan Head as per direction issued vide RO letter No.ESP03-02/2012-13 dated 15.10.2012 and 27.11.2012.

               This has been approved by Chief PMG with the concurrence of CIFA.

                 (S.N.Panda)

Asst. Director (Establishment)

O/o PMG, Brahmapur Region, Brahmapur – 760001.

COMPUTER TRAINING PROGRAMME AT THE WTC, RO, BERHAMPUR

Dear Comrades,

COMPUTER TRAINING PROGRAMME AT THE WTC, RO, BERHAMPUR

For the period from 01.04.2013 to  12.06.2013

Duration of the course	Post Office-Offline Module					Post Office-Online Module					Sanchay Post					Speednet
	BF	KPT	KLD	Aska	PHI	BF	KPT	KLD	Aska	PHI	BF	KPT	KLD	Aska	PHI	BF	KPT	KLD	Aska	PHI
01.4.2013to 05.4.2013	04	--	--	04	02	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--
08.4.2013to 12.4.2013	--	--	--	--	--	04	--	--	04	02	--	--	--	--	--	--	--	--	--	--
15.4.2013to 19.4.2013	--	--	--	--	--	--	--	--	--	--	04	--	--	04	02	--	--	--	--	--
22.4.2013to 23.4.2013	04	--	--	04	02	--	--	--	--	--						--	--	--	--	--
25.4.2013to 26.4.2013	--	--	--	--	--	--	--	--	--	--	04	--	--	04	02	--	--	--	--	--
29.4.2013to 03.5.2013	--	--	--	--	--	04	--	--	04	02	--	--	--	--	--	--	--	--	--	--
06.5.2013to 10.5.2013	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	04	--	--	04	02
Duration of the course	CRC/Speednet/MPCM					IInd Line System Administrators					PLI/RPLI Web Based Programme					Project Arrow(Sup/Operator)
	RMS BG Division					BF	KPT	KLD	Aska	PLI	BF	KPT	KLD	Aska	PLI	BF	KPT	KLD	Aska	PLI
13.5.2013to 17.5.2013	--	--	--	--	--	02	02	02	02	02	--	--	--	--	--	--	--	--	--	--
20.5.2013to 23.5.2013	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	02	02	02	02	02
27.5.2013to 31.5.2013	One Supervisor and Two Operators form each Mail office					--	--	--	--	--	--	--	--	--	--	--	--	--	--	--
03.6.2013to 04.6.2013						--	--	--	--	--	02	02	02	02	02	--	--	--	--	--
05.6.2013to 07.6.2013	Workshop on Network Administration and Database Management System One System Administrator from each HO
10.6.2013to 12.6.2013	CBS One System Administrator/ Two Supervisors from each Postal Division