Thursday, July 2, 2015

WHY INDIA POST COULD BECOME E-COMMERCE’S MOST POTENT DELIVERY PARTNER

Sharadamani Amma, an 87-year-old great grandmother, remembers a time when the sight of mail runners would cause a great deal of excitement in the small Kerala village she grew up in. The appearance of these postal employees, who carried mail between post offices on foot, meant a letter or money order or, god forbid, a telegram—a sure sign of ill news.
But those days are long gone. The postmen are no longer held in high regard in most of the country, and few in the current generation would have even stepped into a post office, at least in urban India.
New age e-commerce companies want to change this. The likes of Amazon and Snapdeal already have pilot projects running with India Post, while newspaper reports suggest that Flipkart is set to follow suit.
But what makes India Post, seen by many as a relic of a bygone era, so attractive to these online portals?

UNBEATABLE NETWORK

India Post’s network of post offices in India is incomparable. None of the private courier or logistics firms can even come close say experts and e-commerce firms. “India Post has an unmatched network that is critical for the growth of e-commerce in India,” says Ashish Chitravanshi, Vice President of operations at Snapdeal. A view echoed by Amazon.in. “Through India Post’s extensive network, Amazon India is able to service over 19,000 pin-codes through 140,000 post-offices across all 35 states and union territories in India,” says Samuel Thomas, Director of transportation at Amazon India.

This network covers about 25,000 pin codes, while even large private courier companies like DTDC reach only about 10,000.
The scale of India’s Postal Network

RURAL DEPTH

While the pan India network is impressive, it is India Post’s rural depth that gives it an edge. “No one can reach rural areas like India Post,” says Manish Saigal, Managing Director of advisory services firm Alvarez & Marsal India. Manish says India Post’s importance will only increase when non-metro India’s contribution to e-commerce sales surpasses that of metro India. “The top 20 cities contribute 60% in value terms right now. The pendulum will shift the other way pretty soon,” adds Manish.

The pendulum has already swung the other way for some e-tailers. Over 70% of orders for Snapdeal are from smaller cities and towns, according to Snapdeal’s VP-Operations Ashish. “The growing popularity of online shopping in these non-metro centers presents a unique set of logistical challenges like spread out population, high km/delivery factor and high cost of setting up delivery infrastructure,” explains Ashish.
India-Post’s-North-East-Network
did-you-know

ADVANTAGE INDIA POST

It is not just the e-commerce companies that stand to gain from a partnership with India Post. The revenue potential for India Post is quite high.

The central government agency is already handling over 1.5 lakh e-commerce deliveries a day, according to industry estimates, making India Post one of the largest delivery partners for the industry. The Business Development and Marketing Directorate of India Post, which handles delivery of parcels like those of e-commerce companies, earned revenue of Rs 1961.76 crore between April and December last year.

“A lot of people dismiss India Post but they are doing mind-boggling work on the ground for e-commerce already,” says Manish.

An advertisement put out by India Post showed the department has handled Rs 500 crore of cash-on-delivery (CoD) in the financial year 2014-15.
Revenue Earnings copy
cod
However, Alvarez & Marsal’s Manish says India Post needs to do more in terms of technology adoption. This is especially important for CoD. India Post does have years of experience handling and delivering cash, in the form of money orders. However, CoD unlike money order requires postmen and women to collect cash and not hand over cash. E-commerce companies also expect this cash to be remitted into their accounts daily and further expect transparent and instant system updates.

This technology integration between India Post and e-commerce companies is beginning to happen. “We have integrated Amazon and Postal systems to electronically enable information sharing,” says Amazon India’s Samuel.

There are examples globally of national postal departments taking advantage of the growth of online retail. Ankur Bisen, senior Vice President at retail advisory firm Technopak, cites the examples of Deutsche Post (Germany) and Royal Mail (UK). “Both these companies were state sponsored mail carriers and realised the diminishing importance of postage. Both of them have successfully re-modelled themselves to suit the emerging e-commerce needs,” says Ankur. An AFP report in March stated that Deutsche Post’s e-commerce parcel division saw its revenues rise by 2.6% to reach 15.7 billion euros (Rs 1.11 lakh crore) in FY 2014.

“If they can marry India Post’s local knowledge and network with technology, they can become unbeatable. But they need to do this fast,” says Manish.

If this succeeds, then Sharadamani Amma’s great granddaughter Mythili will also soon wait with bated breath for the postman to call at her Bengaluru flat.

(Sources of data and information shown in graphics: India Post annual report, India Post advertisement, Amazon India, DTDC website, news reports)

ABOUT BANK LICENSE TO DOP

MANY NEWS ARE COMING ABOUT PAYMENT BANK LICENSE TO DOP
SO WE MUST KNOW WHAT WILL HAPPEN WHEN DOP WILL GET IT .HERE IS THIS INFO
The Payments Bank will be set up as a differentiated bank and shall confine its activities to further the objectives for which it is set up. Therefore, the Payments Bank would be permitted to undertake only certain restricted activities permitted to banks under the Banking Regulation Act, 1949, as given below:
Acceptance of demand deposits, i.e., current deposits, and savings bank deposits. The eligible deposits mobilised by the Payments Bank would be covered under the deposit insurance scheme of the Deposit Insurance and Credit Guarantee Corporation of India (DICGC). Given that their primary role is to provide payments and remittance services and demand deposit products to small businesses and low-income households, Payments Banks will initially be restricted to holding a maximum balance of Rs. 100,000 per customer. After the performance of the Payments Bank is gauged by the RBI, the maximum balance can be raised. If the transactions in the accounts conform to the “small accounts”1 transactions, simplified KYC/AML/CFT norms will be applicable to such accounts as defined under the Rules framed under the Prevention of Money-laundering Act, 2002.

Payments and remittance services through various channels including branches, BCs and mobile banking. The payments / remittance services would include acceptance of funds at one end through various channels including branches and BCs and payments of cash at the other end, through branches, BCs, and Automated Teller Machines (ATMs). Cash-out can also be permitted at Point-of-Sale terminal locations as per extant instructions issued under the PSS Act. In the case of walk-in customers, the bank should follow the extant KYC guidelines issued by the RBI.
Issuance of PPIs as per instructions issued from time to time under the PSS Act.
Internet banking - The RBI is also open to applicants transacting primarily using the Internet. The Payments Bank is expected to leverage technology to offer low cost banking solutions. Such a bank should ensure that it has all enabling systems in place including business partners, third party service providers and risk managements systems and controls to enable offering transactional services on the internet. While offering such services, the Payments Bank will be required to comply with RBI instructions on information security, electronic banking, technology risk management and cyber frauds.

Functioning as Business Correspondent (BC) of other banks – A Payments Bank may choose to become a BC of another bank for credit and other services which it cannot offer.

The Payments Bank cannot set up subsidiaries to undertake non-banking financial services activities. The other financial and non-financial services activities of the promoters, if any, should be kept distinctly ring-fenced and not comingled with the banking and financial services business of the Payments Bank.

The Payments Bank will be required to use the word “Payments” in its name in order to differentiate it from other banks.
Deployment of funds

The Payments Bank cannot undertake lending activities. Apart from amounts maintained as Cash Reserve Ratio (CRR) with RBI, minimum cash in hand and balances with a scheduled commercial bank/RBI required for operational activities and liquidity management, it will be required to invest all its monies in Government securities/Treasury Bills with maturity up to one year that are recognized by RBI as eligible securities for maintenance of Statutory Liquidity Ratio (SLR). The Payments Bank will participate in the payment and settlement system and will have access to the inter-bank uncollateralised call money market and the collateralised CBLO market for purposes of temporary liquidity management.

6. Capital Requirement

Since the Payments Bank will not be allowed to assume any credit risk, and if its investments are held to maturity, such investments need not be marked to market and there may not be any need for capital for market risk. However, the Payments Bank will be exposed to operational risk. The Payments Bank will also be required to invest heavily in technological infrastructure for its operations. The capital will be utilised for creation of such fixed assets. Therefore, the minimum paid up voting equity capital of the Payments Bank shall be Rs. 100 crore. Any additional voting equity capital to be brought in will depend on the business plan of the promoters. Further, the Payments Bank should have a net worth of Rs 100 crore at all times. The Payments Bank shall be required to maintain a minimum capital adequacy ratio of 15 per cent of its risk weighted assets (RWA) on a continuous basis, subject to any higher percentage as may be prescribed by RBI from time to time. However, as Payments Banks are not expected to deal with sophisticated products, the capital adequacy ratio will be computed under simplified Basel I standards.

As the Payments Bank will have almost zero or negligible risk weighted assets, its compliance with a minimum capital adequacy ratio of 15 per cent would not reflect the true risk. Therefore, as a backstop measure, the Payments Bank should have a leverage ratio of not less than 5 per cent, i.e., its outside liabilities should not exceed 20 times its net-worth / paid-up capital and reserves.

7. Promoter’s Contribution

The promoter’s minimum initial contribution to the paid up voting equity capital of Payments Bank shall be at least 40 per cent which shall be locked in for a period of five years from the date of commencement of business of the bank. Shareholding by promoters in the bank in excess of 40 per cent shall be brought down to 40 per cent within three years from the date of commencement of business of the bank. Further, the promoter’s stake should be brought down to 30 per cent of the paid-up voting equity capital of the bank within a period of 10 years, and to 26 per cent within 12 years from the date of commencement of business of the bank. Proposals having diversified shareholding and a time frame for listing will be preferred.

8. Foreign Shareholding

The foreign shareholding in the bank would be as per the extant FDI policy.

9. Voting Rights And Transfer/Acquisition Of Shares

As per Section 12 (2) of the Banking Regulation Act, 1949, the voting rights in private sector banks are capped at 10 per cent, which can be raised to 26 per cent in a phased manner by the RBI. Further, as per Section 12B of the Act ibid, any acquisition of 5 per cent or more of voting equity shares in a private sector bank will require prior approval of RBI. This will also apply to the Payments Banks.

10. Prudential Norms

As the Payments Bank will not have loans and advances in its portfolio, it will not be exposed to credit risk and, the prudential norms and regulations of RBI as applicable to loans and advances, will therefore, not apply to it. However, the Payments Bank will be exposed to operational risk and should establish a robust operational risk management system. Further, it may face liquidity risk, and therefore is required to follow RBI’s guidelines on liquidity risk management, to the extent applicable.

11. Business Plan

The applicants for Payments Bank licences will be required to furnish their business plans and project reports with their applications. The business plan will have to address how the bank proposes to achieve the objectives of setting up of Payments Banks. The business plan submitted by the applicant should be realistic and viable. Preference will be given to those applicants who propose to set up Payments Banks with access points primarily in the under-banked States / districts in the North-East, East and Central regions of the country. However, to be effective, the Payments Bank should ensure widespread network of access points particularly to remote areas, either through their own branch network or BCs or through networks provided by others. The bank is expected to adapt technological solutions to lower costs and extend its network. In case of deviation from the stated business plan after issue of licence, RBI may consider restricting the bank’s expansion, effecting change in management and imposing other penal measures as may be necessary.

12. Corporate Governance

The Board of the Payments Bank should have a majority of independent Directors.

The bank should comply with the corporate governance guidelines including ‘fit and proper’ criteria for Directors as issued by RBI from time to time.
SOURCE :RBI
Thanks to Ashutosh Kumar Kausha

Holiday Homes at Rameswaram and Puducherry in Tamilnadu Circle

To view Department of Posts (Welfare & Sports Section Letter No.14-2/2014-WL/Sports dated 18/06/2015 please  CLICK HERE

Friday, May 22, 2015

Bank employees scale finalised...


Joint note between IBA and Unions to be signed on 25/05/2015 in Mumbai. Scale for all cadre of employees have been finalized and agreed upon by both parties. Here under we provide highlights of pay and other benefits for officers, clerks and sub staffs.

Thursday, May 21, 2015

Inclusion of Aadhar (Unique Identification) number in Service Book of Government servants

Rates i/r/o Remuneration payable to DoP for Savings Bank and Savings Certificates work for the Year 2015-16


POSB Rates for the Year 2015-16
Sl.No.
Item / Category
Rate per unit
1
Savings Deposits
205.59
2
Savings Certificates (NSC,KVP)
70.25
3
Indira Vikas Patra
18.60
4
Silent Accounts
31.17

Source : Department of Posts (FS Division) Letter No.63-1/2015-(FS) dated 20-05-2015

Increase in Service Tax Rate from 12% to 14% with Effect from 1st June, 2015

In the Union Budget, 2015, an increase in the rate of Service Tax from 12% to 14% had been proposed from a date to be notified. The Finance Bill, 2015 has since been enacted and the Central Government has notified 1st June, 2015 as the date from which the rate of 14% would become applicable. The provisions levying Education Cess and Secondary and Higher Education Cess would also cease to have effect from same date i.e. 1st June, 2015, as the same would be subsumed in the service tax rate of 14%. Certain other changes have also been notified with effect from 1st June, 2015. However, the date of giving effect to the provisions relating to imposition of a Swachh Bharat cess on all or any taxable service will be done in due course

Speed post faster, more reliable than private couriers: CAG

Should we depend on private courier services? A Comptroller and Auditor General (CAG) study has found private couriers deliver only 90% of letters compared to 99% by speed post.

In major cities, the performance of speed post is faster and more reliable. The postal service delivers 99% of letters through speed post within 1-9 days as compared to 92% by private courier services that take up to 10 days.

At the local level, the delivery by speed post is 98% compared to 93% by courier services. While the time taken by speed post is 1-11 days at local level, it is 1-12 days in case of private couriers.

In a report on department of posts, tabled in Parliament recently, the official auditor has said the performance of speed post has been better not only at local level and in major cities, but it is the only reliable service at the tehsil and village level.

To compare the performance and quality of speed post with private courier agencies for delivery of mails, a test check was conducted by CAG in eight postal circles -- Gujarat, Maharashtra, Rajasthan, Tamil Nadu, Delhi, Andhra Pradesh, Uttar Pradesh and Madhya Pradesh. Checks were conducted by posting hundreds of letters.



At the tehsil level only speed post could reach 100% addressees that too within 1-7 days while private couriers could deliver only 83% letters and time ranged from 1-23 days.

"Based on the results, it could be concluded that the speed post service of the department of posts (DoP) was better than the services provided by the private couriers," the auditor said.

Speed post was introduced in 1986 to provide a faster and time-bound mail delivery service in major cities. However, due to late delivery of mails people had stopped relying on the department. But the auditor says the perception is wrong and speed post still remains most reliable and account for more than 10% of the total revenue of the DoP.


In the test check, the auditor had posted 284 letters by speed post and 287 by different private couriers. The performance was judged based on the number of letters sent, letters actually delivered, and time taken for delivery of test letters.

Source : http://timesofindia.indiatimes.com/india/Speed-post-faster-more-reliable-than-private-couriers-CAG/articleshow/47349880.cms

Wednesday, May 20, 2015

Dopt Clarification on LTC - Eligibility of Home Town Concession- Frequently Asked Questions

G.I., Dept. of Per. & Trg., O.M.No. 31011/4/2007-Estt.(A-IV), dated 18.5.2015

Subject: Central Civil Services (Leave Travel Concession) Rules, 1988- Clarification regarding eligibility of Home Town Concession- Frequently Asked Questions.

The undersigned is directed to say that this Department receives a number of references from Government servants/ various Ministries/Departments seeking clarifications regarding the eligibility of Government employees in respect of Home Town LTC. The point of doubts raised and their clarifications are as under :-

1. Whether the employees whose Headquarters/ Place of posting and Home Town are same, are eligible for Home Town LTC?

No. Government employees whose headquarters/place of posting and Home Town are one and the same are not eligible for Home Town LTC.

2. Whether the employees who are not eligible for Home Town LTC may avail the Special Concession scheme of conversion of Home Town LTC to travel to North East Region, allowed by DoPT's 31011/3/2014-Estt.A-IV 26.09.2014?

No. Employees whose Home Town & Headquarters are same are not eligible for Home town LTC and hence, the question of conversion of Home Town LTC to travel to these places under special concession scheme does not arise.

3. Whether the employees residing in cities / towns outside Delhi which fall under other states of National Capital Region (NCR) are eligible for Home Town Concession?

Yes, Cities/Towns which outside Delhi and fall in other states of NCR are not to be treated as Delhi Headquarters. Hence, the Government employees whose headquarters are Delhi and reside in cities/towns outside Delhi falling in other states of NCR, are eligible for Jammu & Kashmir & Andaman & Nicobar Islands as eligible for Home Town Concession.

Source : www.persmin.gov.in

Opening of New Post Offices and details of computerization of post office in country

GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY
DEPARTMENT OF POSTS
RAJYA SABHA

UNSTARRED QUESTION NO.1441
TO BE ANSWERED ON 8TH MAY, 2015


OPENING OF POST OFFICES
1441. SHRI DILIPBHAI PANDYA:
Will the Minister of COMMUNICATIONS AND INFORMATION TECHNOLOGY be pleased to state:

(a) whether post offices have been opened in all the villages of the country;

(b) if so, the details especially to that of Gujarat and the number of post offices likely to be opened during the current financial year, State-wise;

(c) whether all post offices of the country, including those of Gujarat, have been equipped with e-mail, internet and computer facilities, if so, the details thereof; and

(d) if not, by when all post offices are likely to be equipped with above mentioned facilities, the details thereof?

ANSWER
THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY
(SHRI RAVI SHANKAR PRASAD)
(a) &(b) No Sir, However, Department through a physical network of 1,39,182 rural post offices, 1,795 Franchise Outlets (FOs) and 2,795 Panchayt Sanchar Sewa Kendras (PSSKs) are providing basic postal services to all the villages in the country. In addition to delivery, sale of stamps and stationery is also being offered through postmen/delivery agents, while they are on their regular visits to respective beats. Expansion of postal services by relocation and redeployment is an ongoing activity. This is taken up under Plan Scheme-“Rural Business & Access to Postal Network” subject to fulfillment of certain norms prescribed by the Department for opening of post offices, availability of Plan support and manpower. Postal Circle-wise physical targets for opening of 92 Gramin Dak Sewak Post Offices (GDSPOs) by relocation/redeployment including Gujarat for the current financial year 2015-16 is at Annexure-I.

(c)&(d) Yes Sir, all 25,468 departmental post offices including those in Gujarat have been supplied with computers & peripherals and out of this 24,465 post offices are having e-mail & internet facilities and also have been switched over to the new Wide Area Network as a part of “India Post IT Project 2012”. The remaining 1003 (including 9 post offices in Gujarat) do not have these facilities yet due to technical reasons which are in the process of getting addressed and remaining post offices will be provided with e-mail & internet facilities after solving these issues. Postal Circle-wise details of number of Post Offices Computerized and provided inter-net facilities is at Annexure-II.

ANNEXURE-I

Postal Circle-wise given physical targets for opening of Gramin Dak Sewak Post Offices (GDSPOs) by redeployment & relocation during 2015-16
Sl. No.
Name of the Circle
Physical Target for 2015-16
(in number)
1
Andhra Pradesh including Telangana State
6
2
Assam
7
3
Bihar
8
4
Chhattisgarh
7
5
Delhi
0
6
Gujarat
4
7
Haryana
4
8
Himachal Pradesh
3
9
Jammu & Kashmir
2
10
Jharkhand
5
11
Karnataka
4
12
Kerala
0
13
Madhya Pradesh
4
14
Maharashtra
4
15
North East
10
16
Odisha
4
17
Punjab
3
18
Rajasthan
4
19
Tamil Nadu
4
20
Uttarakhand
2
21
Uttar Pradesh
5
22
West Bengal
2
Total
92

ANNEXURE-II
Postal Circle-wise Number of Post Offices Computerized and provided e-mail & internet facilities.
Sl. No.
Name of the Circle
No. of Post Offices Computerized
No. of Post Offices 
Provided e-mail & internet facilities.
1
Andhra Pradesh including Telangana State
2438
2439
2
Assam
626
582
3
Bihar
1046
1043
4
Chhattisgarh
343
335
5
Delhi
425
393
6
Gujarat
1335
1328
7
Haryana
493
490
8
Himachal Pradesh
464
418
9
Jammu & Kashmir
263
251
10
Jharkhand
455
454
11
Karnataka
1715
1683
12
Kerala
1506
1506
13
Madhya Pradesh
1062
1061
14
Maharashtra
2212
2213
15
North East
329
268
16
Odisha
1195
1147
17
Punjab
758
760
18
Rajasthan
1345
1334
19
Tamil Nadu
2759
2578
20
Uttarakhand
388
341
21
Uttar Pradesh
2553
2540
22
West Bengal
1758
1301
Total
25468
24465