Adapting To Changing Times

The Department of Posts, popularly known as the India Post, has come a long way since it was founded over 200 years ago. Today, the government uses its vast network of over 1.54 lakh post offices to sell Ganga Jal (holy water) and pulses (you read it right), apart from delivering over 700 crore units of unregistered, registered mails, post cards and what not.

Very soon, India Post will float its first ever public sector undertaking — India Post Payments Bank (IPPB), which plans to begin operations next year.

If one adds Gramin Dak Sevaks to those on rolls, India Post is perhaps the largest employer among government bodies with numbers running up to 4.60 lakh. No wonder, the department is running in deficit of over Rs 6,000 crore on an overall revenue of over Rs 11,000 crore as reported on 31 March, 2015. It has been a neglected department of the central government, for years now.

But time and again, the department has been called upon to fulfil national duties. Be it selling insurance products or managing small savings schemes or operating ATM, e-Banking, net banking for Post Office Savings Bank, India Post is the first choice for the central government. Most important role for it in recent years has been the disbursement of wages for the Mahatma Gandhi Rural Employment Guarantee Scheme (MGNREGS). In 2012-13, India Post disbursed nearly Rs 800 crore in wages through its rural network of 1.39 lakh post offices.

With changing times, now India Post is focussed on the IPPB, which will be headquartered in New Delhi. For this venture, it plans to recruit about 3,500 professionals across 650 branches in the coming months. IPPB will also seek deputations from banks, post office and other government departments for its branch locations.

But a lot needs to be done to keep India Post in healthy state of affairs. For example, a recent review of the revenue performance of individual products/services indicated that out of 18 services, only three services — Competition Postcard, Letter and Insurance —generated revenue in excess of the cost incurred by India Post. It has to be protected, preserved and encouraged so it can continue to be relevant in the coming decades. Is anyone listening?