Lok Sabha Question No. 399 (STARRED), answered on 2016-12-14
Subject: Upgradation of Postal Network
Ministry: COMMUNICATIONS
Asked by: S.P. MUDDAHANUMEGOWDA, DUSHYANT SINGH

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF POSTS

## LOK SABHA STARRED QUESTION NO.399 TO BE ANSWERED ON 14 TH   DECEMBER, 2016

## UPGRADATION OF POSTAL NETWORK

- *399.  SHRI S.P. MUDDAHANUME GOWDA: SHRI DUSHYANT SINGH:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether  the  use  of  post  offices  has  decreased  considerably  during  the  last decade;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether the Government has upgraded or proposes to upgrade the post offices into  a  multi-facility  provider  unit  like  ATM/money  transfer/foreign  exchange  etc.  to attract more and more people, which in turn will make it economically viable;
- (d) if so, the details thereof; and
- (e) the new services introduced and proposed to be introduced in the post offices for its viability?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

- (a) to (  e) A Statement is laid on the Table of the House.

## STATEMENT TO BE LAID ON THE TABLE OF THE LOK SABHA IN RESPECT OF PARTS (a)  TO  (e)  OF  LOK    SABHA  STARRED  QUESTION  NO.399    FOR  14 TH DECEMBER, 2016 REGARDING 'UPGRADATION OF POSTAL NETWORK'.

(a) & (b) No Madam, on the contrary, the use of Post Offices has increased.   In fact,  the  number of functional Post Offices has increased from 1,52,792 in the year 1994-95 to 1,54,939 in the year 2014-15 which affirms that the use of Post Offices has  increased  in  the  country.    The  Department  of  Posts  is  presently  providing  a diverse  range of services, including new  services, in addition to processing, transmission & delivery of mails. These include money remittance, Banking, premium products  and  insurance  sector,  MGNREGA  payments,  amongst  others.  In  order  to meet  the  new  challenges,  many  services  have  been  upgraded  and  diversified.    In view  of  the  new  services  having  been  introduced,  the  revenue  and  traffic  has increased, which also indicates the increased use of Post Offices.

(c) & (d) Yes Madam, the Post Offices in the country are providing multi-facilities to the public. These facilities include:-

- (i) The Department has rolled  out Core Banking  Solution (CBS)  in  23,054 Post Offices. Besides, the total number of live accounts as on 31.3.2016 are 34.7 crores; the  revenue  has consistently increased in the last three years from the Savings  Bank  accounts:  from  Rs.5915.60  crores  (2013-14)  to  Rs.6670.03 crores (2014-15) to Rs.7783.87 crores (2015-16).
- (ii)     a) Money  remittance  service  to  customers  in  India  from  around  195 countries  on  a  real  time  basis  is  being  operated  in  association  with Western  Union  and  Money  Gram  from  9,943  and  6,070  locations, respectively.
- b)        The  number  of  transactions  through  electronic  Money  Order  and  the amount    remitted  have  shown  a  consistent  increase  in  the  last  three years: from 8,81,15,757 (2012-13) to 9,24,04,736 (2013-14) to 9,27,43,488 (2014-15).   The amount remitted has also increased from Rs.8,253.67 crores (2012-13) to Rs.8,701 crores (2013-14) to Rs.9,264.61 crores (2014-15).
- (iii) Furthermore, Insurance services - Postal Life Insurance (PLI)/Rural Postal Life Insurance (RPLI) -  have shown increasing trend in the last decade in terms of procurement of policies:    in  2006-07, the  number of  active PLI  policies  were 32,97,825 and in 2015-16, the number of active PLI policies were  49,30,838. Likewise, in 2006-07, the number of active RPLI policies were 52,46,673 and in 2015-16, the number of active RPLI policies were  1,49,15,652.
- (iv) 967 ATMs have been installed in different parts of the country.
- (v) 5,63,635 Debit cards have been issued to Post Office Savings Bank customers since February, 2014.
- (vi) Revenue  earned  from  Express/Business  Parcel  has  also  showed  a  positive increase  in  last  three  years:  from  Rs.77.63  crores  (2013-14)  to  Rs.112.47 crores (2014-15) to Rs.149.00 crores (2015-16).
- (vii) Premium service, such as Speed Post has also shown increase in revenue and transactions: traffic has increased from 36.99 crores (2013-14) to 39.87 crores (2014-15) to 41.43 crores (2015-16); likewise, revenue has also increased from Rs.1372.21  crores  (2013-14)  to  Rs.1495.21  crores  (2014-15)  to  Rs.1605.25 crores (2015-16)

- (viii) Additionally, services such as Post Shoppe, Jan Suraksha, Sukanya Samriddhi and  retail  services  have  also  led  to  increased  footfalls  in  the  Post  Offices. 93,17,532 Sukanya Samriddhi Accounts have been opened since 22.1.2015. The value of deposits in these Accounts is Rs.7,585 crores.
- (ix) Social security benefits and pension are also being provided through the Post Offices.

All in all, these services have served the customers better and have increased the use of Post Offices which, in turn, increases the prospects of economic viability. Revenue has increased from Rs.10,730.42 crores (2013-14) to Rs.11,635.98 crores (2014-15) to Rs.12,939.79 crores (2015-16).  The deficit in the Department has also decreased  from  Rs.6,258.60  crores  in  2014-15  to  Rs.6,007.19  crores  in  2015-16. Also, the Department constantly reviews its products & services from the customers' perspective and market requirements, and diversifies its product portfolio in order to provide  efficient  &  customer-oriented  services.    This  has  further  enhanced  the relevance and use of the Post Offices.

(e)            The  Department  has  introduced  various  services  towards  the  objective  of economic  viability.    These  include  Cash  on  Delivery,  Express  Parcel,  Business Parcel, ATMs, Jan Suraksha, amongst others. Even otherwise, for the convenience of public and for grievance redressal, a call centre  - 1924 has been introduced; Twitter Sewa has also been introduced and it provides an interactive medium for the public to air their views, suggestions, etc. on which the Department takes prompt action.

As  explained, the  Department is continuously  working to meet the needs of the people.

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