Lok Sabha Question No. 2925 (UNSTARRED), answered on 2016-05-11
Subject: Delivery Through Postal Network
Ministry: COMMUNICATIONS AND INFORMATION TECHNOLOGY
Asked by: SHRIKANT EKNATH SHINDE, VIRENDRA  KUMAR, VINAYAK BHAURAO RAUT, ABHISHEK SINGH

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY DEPARTMENT OF POSTS

## LOK SABHA UNSTARRED QUESTION NO.2925 TO BE ANSWERED ON 11 TH  MAY, 2016

## DELIVERY THROUGH POSTAL NETWORK

2925. DR. SHRIKANT EKNATH SHINDE:

DR. VIRENDRA KUMAR:

SHRI VINAYAK BHAURAO RAUT:

SHRI ABHISHEK SINGH:

Will the Minister of COMMUNICATIONS AND INFORMATION TECHNOLOGY be pleased to state:

- (a) whether  the Department  of Posts has  signed agreements  with  various organisations  including  financial  institutions  and  e-commerce  companies  to  deliver their products through postal networks;
- (b) if so, the details of agreements so signed;
- (c) whether  India  Post  proposes  to  augment  their  parcel  handling  capacity  to cater to the e-commerce demand;
- (d) if  so,  the  details  thereof  and  the  investment  made/proposed  to  be  made therein; and
- (e) whether  the  Government  has  any  plan  to  make  postal  savings  and  other financial products more attractive and if so, the details thereof?

## ANSWER

## THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a) & (b) Yes  Madam.  The  postal  circles  under  the  Department  of  Posts  have entered into various agreements under the 'Book Now Pay Later' (BNPL) scheme for delivery of  articles through Speed Post, Registered Post, Express Parcel, Business Parcel etc. As per information received from the Circles, 7218 agreements have been signed  by  the  Circles  in  the  last  three  years.  At  the  Directorate  level,  agreements have been signed with UTI Asset Management Company Pvt. Ltd for doing mutual fund business and with Western Union Services India Pvt. Ltd. for international money remittance.

(c) & (d) Yes  Madam.  The  Department  of  Posts  has  augmented  its  parcel handling capacity in order to cater to the rising e-commerce demand. Accordingly, 57 Integrated  Parcel  Booking  Centres  have  been  established  and  infrastructure  of  27 Parcel Booking Centres has been upgraded in the country during 2013-14 to 2015-16. The total expenditure made in this regard during the above mentioned period is Rs. 22.58 Crores. The Department has also undertaken the Parcel Network Optimization Project in order to consolidate its processing, transport and delivery systems through process  redesigning  and  performance  management.  The  total  outlay  for  providing consultancy for the project is Rs. 8.25 crore.

(e) Yes Madam. With a view to making postal savings and other financial products attractive  and  convenient,  the  Department  of  Posts  has  rolled  out  Core  Banking Solution (CBS) in 21664 post offices and Automated Teller Machines (ATMs) at 922 post offices.

The  Department  has  also  been  issued  a  license  for  a  Payments  Bank  to provide basic banking services such as acceptance of demand deposits like current and savings accounts upto a balance of Rs. 1.00 Lakh, various payments including social  security  payments,  person  to  person  remittances  and  offer  other  financial products such as insurance, mutual funds, pensions, etc. through third party tie-ups with  banks  and  financial  service  providers  especially  in  rural  areas  and  among  the under banked segments of society.

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