Wednesday, April 29, 2015

RAJYA SABHA Q&A regarding Post Bank of India & Task force Recommendations on PBI

GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY
DEPARTMENT OF POSTS     
RAJYA SABHA
UNSTARRED QUESTION NO.163
                                        TO BE ANSWERED ON 24TH APRIL, 2015
POSTAL BANKS
163. DR. PRADEEP KUMAR BALMUCHU:
Will the Minister of COMMUNICATIONS AND INFORMATION TECHNOLOGY be pleased to state:
(a)       whether it is a fact that Government is urging the Department of Posts to come up with opening of Postal Banks in the country, if so, the details thereof;
(b)       whether the Subramanian Committee, to which the matter had been referred, has submitted its report and has made recommendations in this regard; and
(c)        if so, the details thereof?
ANSWER
THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY
(SHRI RAVI SHANKAR PRASAD)
(a)       Sir, the Department of Posts has submitted an application to Reserve Bank of India on 30.1.2015 seeking license for setting up Post Bank of India under the rubric of “Payments Bank”. The Government is committed to increasing access of the people to the formal financial system and in this context, Government proposes to utilize the vast Postal network with nearly 1, 54,000 points of presence spread across the villages of the country.  The Government hopes that the Postal Department will make its proposed Payments Bank venture successful so that it contributes further to the Pradhan Mantri Jan Dhan Yojana. The details of the proposed Post Bank would be finalized once the Reserve Bank of India takes a favourable decision on application submitted by Department of Posts. In the recent budget speech also the Finance Minister has appreciatingly talked about Post Bank.
           
(b) & (c )         The Task Force on Leveraging the Post Office Network under the Chairmanship of retired Cabinet Secretary Shri. T.S.R.Subramanian,  has submitted its report during November-2014. The said task force has recommended for setting up Post Bank of India. The details of the recommendations are reproduced in theAnnexure- ‘A’ enclosed herewith.


Annexure-A
Recommendations of Task Force on Leveraging Post Office Network with respect to Setting up of Post Bank of India:-
(i)   The proposal is not to convert the PO Network into a Bank, but to set up a fully professional new Bank to further financial inclusion and meet the objectives of the Pradhan Mantri Jan Dhan Yojna, which specifically provides for the extension of credit to all Indians resident in every part of India, particularly in rural areas.
(ii)  This opportunity for achieving universal financial inclusion via technology and the institutional reach of the PO Network must not be lost. There is admittedly a risk involved, as there is in any new venture into uncharted waters. The risk involved can and must be managed in the interests of the overall larger national objectives.


(iii) The PBI must be professionally managed and operated, with credit and other risks being handled by experienced experts hired from the market. In its own interest, its operations must be fully in line and compliant with RBI Guidelines.


(iv)  A new institution, to be called the Post Bank of India or by some other suitable name, should be set up as a commercial bank offering the full spectrum of financial and banking services.


(v)  As the owner of the proposed PBI, the Government of India may take decisions as appropriate on structural and organizational issues and other details, including the funding requirements.


(vi)  The Task Force is of the view that the PBI should be set up under an Act of Parliament and that establishing the PBI as a statutory institution and a Government Bank would enhance its credibility, insulate it from local pulls and greatly facilitate its operations.


(vii) It is essential to structure the proposed PBI in such a manner as to pre-empt the possibility of outside interests influencing its day-to-day operations.


(viii) The Task Force also recommends that the PBI should initially be set up as a Public Sector Bank wholly owned by the Government of India.


(ix) The initial capital requirement, estimated at Rs. 500 crores as per RBI requirements would be fully funded by the Government.


(x) After the Bank establishes itself in 3 to 5 years, the Board of Directors could take a view on floating an IPO to raise fresh capital.


(xi)  The PBI will focus on fulfilling the Government’s mandate of financial inclusion and on bringing the un-banked and under-banked segments of the population, particularly in rural, semi-rural and remote areas within the ambit of the formal monetized economy.


(xii)  A view needs to be taken on how best to seamlessly integrate the earlier banking operations into the proposed new structure, The best and seamless method would be to fully absorb the POSB in the new proposed Bank (PBI).


(xiii) The PBI will offer services including credit, which are beyond the remit of the POSB.


(xiv) The PBI will develop financial products and services which are specially tailored to the needs of the rural and urban unbanked population, if necessary in collaboration with other banks.


(xv)  The PBI will function as a commercially viable and self-sustaining entity without the need for continuing Government subsidies.


(xvi) After the Initial gestation period, it should generate its own resources and sustain itself in the competitive market environment.


(xvii) The PBI should price its services on a cost plus basis and revise these rates from time to time, so that its operations do not become a continuing and increasing burden on the Government exchequer.


(xviii) The PBI will start with a Head Office Main Branch and will thereafter expand its operations by opening Branch offices in the Metro towns and State capitals, to be manned by banking professionals.


(xix) The longer term objectives would be to establish a Branch Office of the PBI in each District Headquarter over a 3 to 5 year period, to be operated mostly by banking professionals.


(xx) The 150,000-plus Departmental and Branch POs will act as Banking Correspondents for the PBI.


(xxi) Careful consideration should be given to the various types, elements and levels of risk involved in the PBI’s operations.


(xxii) Robust System Protocols and Standard Operating Procedures should be put in place to manage these risks effectively.


(xxiii) The PBI should recruit/commission the services of banking experts to manage its credit, portfolio and market risks.


(xxiv) Appropriate management capabilities should be mobilized from the market and robust systems and processes should be put in place to ensure that Non-Performing Assets are kept within acceptable limits.


(xxv) It is neither necessary nor desirable to mandate a waiting period before the PBI enters into credit and lending operations.


(xxvi) The PBI should be constituted and begin working as a credit and lending Bank immediately, without any trial/waiting/learning period.


(xxvii) The PBI should be set up as an independent Statutory and corporate entity offering the full bouquet services, including credit, to its customers.


(xxviii) The PBI will primarily target currently unbanked and under-banked customers in rural, semi-rural and remote areas, with a focus on providing small and affordable loans and simple deposit products.


(xxix) Customers will be provided with full-fledged Savings Accounts, which can be retained even with zero balances, as provided for in the PMJDY.
(xxx) Credit risks will be managed by hiring professionals from the banking sector and by developing and implementing robust protocols for building checks and balances in the system. Market and robust systems and processes should be put in place to ensure that Non-Performing Assets are kept within acceptable limits.   


courtesy:sapost.blogspot.in

Wednesday, April 22, 2015

Postal Museum inaugurated in Mysuru ( The Hindu News )

   M.S. Ramanujam, Chief Post Master General, Karnataka Circle, Department of Post, S.K.Sinha member HRD and Veena Kumari, Director, PTC at the inauguration of postal muesum in Mysuru on Monday. Photo: M.A. Sriram.



Jingling bells, shining badges, spears, weighing scales and a host of paraphernalia associated with the postman that trace the evolution of the Postal Department over the last one and a half century were today unveiled at the Postal Museum situated in the Postal Training Centre (PTC) here.


The Postal Museum was thrown open to the public on Monday by Dr. S.K. Sinha, Member (HRD), Postal Services Board, New Delhi, in the presence of Chief Postmaster General, Karnataka Circle, M.S. Ramanujam as part of the Golden Jubilee celebrations of PTC.
The Museum housed in an area spread across 1,250 square feet also features the attire of the postman of the bygone era. The postman’s attire, which is a special attraction, includes a water bag with cooling facility, slings across the shoulder, and a pouch for cash collection.
Letter boxes of many types, shapes and sizes are also displayed at the Museum.
To commemorate PTC’s completion of 50 years, a special cover on PTC and a set of 22 picture post cards on wood carvings of the heritage building housing PTC were also released on the occasion

Source : http://www.thehindu.com/

Karanji Mansion was bought for just Rs. 24 lakh in 1964.

 
 
The Karanji Mansion and its sprawling 32 acre campus in Nazarbad, which houses the Postal Training Centre (PTC), was bought by the Department of Posts from the erstwhile Mysore royal family for Rs. 24 lakh in August 1964.

The PTC, which has been functioning from the building since April 20, 1965, celebrated its Golden Jubilee on Monday.

Begun in 1902

The construction of the palatial building had begun in 1902 and was completed in 1914 at a cost of Rs. 4.29 lakh. “The Postal Department purchased Karanji Mansion for Rs. 24 lakh on August 20, 1964, from Rajkumari L. Desaraj Urs, sister of the erstwhile Maharaja of Mysuru Sri Jayachamarajendra Wadiyar,” said D. Veena Kumar, Director of PTC, Mysuru, while reading out a report on the journey of PTC during the celebrations.

The PTC, spread across 32 acres, has a built up area of 28,500 square feet. The facility has eight computer labs, three classrooms, one conference hall and video-conferencing facility, besides two hostel blocks.

PTC, Mysuru, caters to the needs of not only Karnataka Postal Circle, but also Kerala and Andhra Pradesh postal circles, conducting special training programmes for system administrators.

“During the last 50 years, PTC, Mysuru, has trained a total of 1,16,590 trainees under various programmes,” Dr. Kumar said.

To commemorate the golden jubilee, a special cover on PTC, Mysuru, and a set of 22 picture postcards on wood carvings of Karanji Mansion were released.

Source : http://www.thehindu.com/

Tuesday, April 21, 2015

India Post eyes e-commerce.

If all goes well, the Department of Posts may launch its own e-commerce portal to sell various government products online in the future.


Reacting to media queries, after participating in the golden jubilee celebrations of the Postal Training Centre,  Mysuru, Chief Postmaster General, Karnataka, M S Ramanujan, on Monday, said: “It may take some time, but it is the niche area, with the government being a vendor, producing many products that include handicrafts and other things.”

Ramanujan said that at present, the department was catering for private players in the realm by providing ‘same day delivery’ service. In Bengaluru, the service is called ‘Metro’ and the products booked online are delivered before 9.30 pm the same day. 

The service launched in October last is growing at a rapid pace between 20 and 25 per cent, assuring a promising revenue to the department every month.

Earlier, addressing the trainees and staff members, Ramanujan appealed to them to gear up to face the new challenge in e-commerce. 

Unlike the IT sector, e-commerce is growing at a fast pace. The need of the hour, on the part of the postal department, is to observe and respond, he said.

Though the volume at present is less, with the department offering ‘same day delivery’ in select cities such as Bengaluru, Mumbai and Delhi, it may increase in the future, throwing up a bigger challenge, added Ramanujan.

Ramanujan said though technology had eroded the services, with the advent of the Internet (e-mail), it was a global phenomenon. 

“While the postal service providers in foreign countries were quick to incorporate technology, we are in the midst of a major technology rollout. But it’s just a matter of time,” he said.

Museum
Earlier, member (HRD) of the Postal Services Board, New Delhi, S K Sinha, inaugurated the renovated postal museum at the Postal Training Centre. The museum houses different exhibits that include stamps brought out on different occasions, including events, personalities, themes, besides record books and manuals, postman’s attire and equipment used in the past, letter boxes, etc.


courtesy:http://www.deccanherald.com

Footprints of India Post under one roof

Spears with jingles, used by mail runners, badges of types, postmen’s attire, record manual books, commemorative stamps released on different occasions, all related to the past and the present have been exhibited in the renovated Postal Museum at the Postal Training Centre, Nazarbad, in the city.


The museum with a new look was opened to mark the golden jubilee celebrations of the training centre that was started in the year 1965. Spears of types and equipment of types adorning the walls greet the visitors. While the spears are exhibited aplenty, stamps are on display according to the events, personalities and themes. The stamps released to mark the Independence of India on August 15, 1947, Swaraj among others form the event section, while the personalities from the fields of arts and cinema are a treat to watch. It includes that of Kannada matinee idol Dr Rajkumar, 100 years of Indian cinema, yesteryear’s actress Meenakumari and the list goes on.

Spears in those days were mostly used by mail runners, who used to deliver posts on foot enduring risks at times. Owing to the lack of transport facilities, the mail runners used to traverse through the toughest terrains, sometimes inside dense forests. So, spears came in handy, while the sound emitting from the jingle attached to it denoted the arrival of a postman. Mention must be made of the lanterns, seals, weights and measures, letter boxes, postmen’s attire that included a water can, record manuals, badges of types — brass, plastic and steel, all related to the bygone era.

Amidst a row of record manuals, ‘Order book on wellington SO (1868-1901)’, ‘Postal Manual (Ward) India,1937, ‘Rules related to money order for the Madras presidency’, ‘Postal Handbook Karnataka 1952’ are sure to attract the visitors.