Lok Sabha Question No. 4452 (UNSTARRED), answered on 2025-08-20
Subject: Progress and Challenges in Modernisation and Digitisation of India Post System
Ministry: COMMUNICATIONS
Asked by: Shri K E Prakash

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF POSTS

## LOK SABHA UNSTARRED QUESTION NO. 4452 ANSWERED ON 20 TH  AUGUST, 2025

## PROGRESS AND CHALLENGES IN MODERNISATION AND DIGITISATION OF INDIA POST SYSTEM

## 4452.   SHRI K E PRAKASH:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether  the  Government  has  undertaken  any  review  or  assessment  of  the  progress  and challenges in the modernisation and digitisation of the India Post system including the Core Banking Solution (CBS) rollout, IT system integration and India Post Payments Bank (IPPB) expansion;
- (b) if so, the key findings of such assessments with respect to service delivery gaps in rural and remote areas, connectivity and infrastructure constraints and workforce capacity for digital adoption; and
- (c) the specific policy measures proposed or implemented by the Government to address these challenges, improve interoperability and ensure equitable access to modern postal banking and parcel services across all regions of the country?

## ANSWER

## MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT (DR. PEMMASANI CHANDRA SEKHAR)

- (a) Yes Sir.
- (b) Sir,
1. Department of Posts implemented IT Modernization Project 2012 (DOP IT 1.0), a Mission Mode e-governance project, aimed at transforming the Department into a technology driven organization ensuring improved service delivery for customers.
2. For assessment of progress and challenges of DOP IT 1.0 Project, a mid-term review of the Project was done in 2018 by IIM, Lucknow and final evaluation of the Project was done by an independent third-party evaluator, IIPA (Indian Institute of Public Administration), in 2021. Some of the key findings of the final evaluation are as under -
- i. Department achieved Internal Rate of Return (IRR) of 6.33 % after implementation of IT Modernization Project 2012.
- ii. The  qualitative and  quantitative  contributions  made  by  the  'IT  Modernization  Project 2012 of the Department of Posts have been found to be effective. Qualitatively, the faster delivery of services has been found as one of the major improvements. Quantitatively, the  number  of  postal  services  made  accessible,  particularly  to  the  un-banked/underbanked customers, were found to have grown.
- iii. The postal operations have been found to be efficiently working on digital platforms.

- iv. As per the surveys conducted, the Department of Posts (DoP) customers were found to be  by  and  large  satisfied,  with  the  postal  staff.  The  technical  glitch  due  to  network connectivity disappointed some customers.
2. (c) Sir,
1. In  continuation  of  DOP  IT  1.0,  Government  has  approved  Information  Technology Modernization Project 2.0 (DOP IT 2.0) with an outlay of Rs 5785 Crore for a period of eight years commencing from 2022-23.
2. The Information Technology Modernization Project 2.0 combines applications, intelligent platforms  and interconnected  ecosystems  so as  to  provide  an  inclusive  integrated  single window view of Postal and Financial Services to its stakeholders through multiple delivery channels.
3. Under DOP IT 2.0 Project, Department has completed rollout of new in-house developed Postal and Logistics Solution, named as Advanced Postal Technology (APT), across all 1.64 lakh Post Offices in the country. It will make postal services faster, secure, and user-friendly and enable Post Offices to accept QR Code based digital payments.
4. DoP has provided Android based Mobile Phones to all rural Branch Post Offices of the country to facilitate the delivery of Postal, Financial, Insurance and Government services to rural  masses. In house developed Internal Mobile App (IMA) under APT has now been deployed in these phones which has the capability to capture the digital signature of the addressee,  real-time  update  for  articles  delivery  and  integrated  digital  payment  feature (using dynamic QR code functionality).
5. Further, a list of initiatives taken by the Department in Core Banking Solution (CBS), India Post  Payments Bank (IPPB), Mails and Parcel services throughout the nation,  including remote and rural regions, to mitigate delivery gaps, address infrastructure challenges and advance  the  modernization  and  digitization  of  the  India  Post  System  is  attached  as Annexure-I .

## Annexure-I referred to in answer to part (c) (5) of Lok Sabha Unstarred Question No. 4452 answered on 20.08.2025

## I. Initiatives in Core Banking Solution (CBS)

- a) Automatic Teller Machine (ATM) facilities.
- b) Internet Banking and Mobile Banking.
- c) National Electronic Fund Transfer (NEFT) / Real Time Gross Settlement (RTGS) services for transfer of funds from post office to bank and vice versa.
- d) Electronic Clearing Services (ECS) facility- for crediting the interest and maturity amount in bank accounts.
- e) e-Passbook facility to view the balance and mini-statement.
- f) India  Post  Payments Bank -Post Office Savings Account linkage services for all types of digital transactions.
- g) Interactive Voice Response System (IVRS) facility.

## II. Initiatives in India Post Payments Bank (IPPB)

- a) India Post Payments Bank (IPPB) services have now been enabled through 1.64 lakh access points.
- b) IPPB offers a  variety  of  banking  services including  savings and  current  accounts. Virtual Debit Card, Post Office Savings Account linkage with IPPB accounts, online payment for Post Office Saving schemes, Aadhaar Enabled Payment System (AePS) etc.

## III. Initiatives in Mail and Parcel Sector

- a) The Mail and Parcel Optimization Project (MPOP) is a key initiative of the Department of Posts aimed at modernising and streamlining mail and parcel operations across the country. It  focuses  on  end-to-end  process  optimization  through  automation,  standardisation  of workflows  and  integration  of  advanced  technologies  such  as  parcel  sorters  and  real-time tracking systems. MPOP seeks to improve operational efficiency, reduce turnaround times and enhance service quality, enabling India Post to handle higher volumes of e-Commerce and logistics consignment competitively.
- b) According to the Post Office Regulation of 2024, all parcels are now classified as accountable articles to enhance the tracking services for every parcel booked by the Department of Posts.
- c) The  previous  system  of  restricted  and  specific  weight  parcel  booking  and  delivery  from Branch Post Offices has been modified or enhanced. Currently, all types of parcels and all weight categories of parcel can be booked and delivered through Branch Post Offices in rural areas.
- d) Technology Integration- Real time delivery status, tracking of articles viz. Speed Post, API integration, capturing second delivery address, en-route cancellation, system assisted sorting, system enabled settlement of errors, SMS notifications of booking & delivery information for accountable mail to the customers are a few technology interventions which have been made to improve parcel services.
- e) Computerization, infrastructure and site upgradation of sorting and mail processing offices have been carried out.

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