Hyderabad: Until a few years ago, postman and post office used to be an integral part of public life. People eagerly waiting for “post” from the postman, the clatter of his bicycle bell and letters thrown into the veranda were a common scene in the past. Postal service is the only government department that is synonymous with nostalgia and emotions.
With the advent of mobile phone and internet; cards, covers and inland letters have lost their importance. Instead of writing to each other, people are simply sending an SMS or an email. On an average, the department incurs a loss of Rs 7 per postcard and Rs 5 per inland letter; becoming the biggest loss-making Public Sector Undertaking (PSU). But, India Post is transforming itself with changing times.
At the time of Independence, there were 23,344 post offices in India. Over the next seven decades, the number increased to 1,55,000 of which 90 per cent are located in rural areas. The strength of the postal department reflects in its numbers – 40 crore users and over 17 crore post office savings accounts.
In a move to preserve this solid base, India Post was forced to take the innovation path. At this juncture, the PSU launched Speed Post and My Stamp services. Gradually, it expanded its base to courier, insurance, pension, passport, Aadhar, Tirumala Tirupati Devasthanam calendars and tickets, books and medicines delivery services. India Post Payments Bank is another feather in its cap.
Though the banking sector grew by leaps and bounds, full-fledged services are available in less than 50,000 villages. Keeping in view the availability and trust factor of post offices in India’s rural areas, Subramanian Committee (2014) made recommendations to leverage the post office network.
The Committee’s suggestion to create a Postal Bank of India, which would work independently within the postal department with banking professionals, came as a boon to India Post. Taking another step ahead, the PSU launched DakPay, a suite of digital financial and assisted banking services provided through the postal network.
During the pandemic and successive lockdowns, Aadhar-based payment services came to the rescue of many. The services provided by postmen in those tough times were exceptional. Postal staff helped the elderly, sick, immobile and those trapped in cantonment areas. Between March 23 and May 11, the cash disbursed in over 59 lakh postal transactions was Rs 1,000 crore.
The India Post Payments Bank has developed Postinfo, a mobile app that gives the opportunity to enjoy banking facilities at the doorstep. The latest DakPay is seemingly on par with Paytm, PhonePe and Google Pay. Postal bank account holders can link their bank accounts to this app for cash transactions, mobile recharges and bill and insurance instalment payments.
There have been suggestions to strengthen India Post along the lines of United States Postal Service. Even China, Italy, France, Morocco and Algeria have integrated their postal services with the banking sector. Brazil Post’s affiliation with financial institutions made way for an innovative trend.
Systemic and political support is essential for India Post to excel in its endeavour to bring postal services to people’s doorstep. India lags behind Sri Lanka, Nepal and Pakistan in terms of internet speed. The Central Government is all set to rollout 5G network for greater connectivity and better prospects for the country. If Digital India can indeed become a reality, India Post will achieve many more milestones for sure.
Also read: World's largest postal service lends helping hand in battling COVID-19
