DETAILS OF THE ACHIEVEMENTS OF THE MINISTRY - RS _ Q & A

Date : 15.8.2016

DETAILS OF THE ACHIEVEMENTS OF THE MINISTRY - RS _ Q & A

GOVERNMENT OF INDIA

MINISTRY OF COMMUNICATIONS

DEPARTMENT OF TELECOMMUNICATIONS

RAJYA SABHA

2997. SHRI DEVENDER GOUD T.:

Will the Minister of COMMUNICATIONS be pleased to state:

(a)        the details of achievements of the Ministry in the last two years;

(b)        whether presentation before the Prime Minister was made about Ministry's last two year's achievements, if so, the details thereof;

(c)        whether the Ministry has fallen short of its targets and where it has excelled;

(d)        the targets set for the coming three years and road-map to achieve the same;

(e)        the details of difficulties brought out before the Prime Minister and suggestions made to overcome them; and

(f)        the details of core areas the Ministry is going to focus on in the coming three years?

ANSWER

THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS &

 MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI MANOJ SINHA)

---

(Details of the achievements of Ministry of Telecommunications in Annexure - I )

---

(a)          The targets set by the Department of Posts for the coming three years and road-map to achieve the same are at Annexure-II. However no specific targets have been set by the Department of Telecommunications.

(b)            Does not arise  in view of (b) above.

(c)          The details of core areas the Ministry is going to focus during the coming three years are at Annexure-III.

ACHIEVEMENTS OF DEPARTMENT OF POSTS DURING THE LAST TWO YEARS

A.   REVENUE GROWTH

	2013-14 (Rs. in crore)	2014-15 (Rs. in crore)	2015-16 (Rs. in crore)
Speed Post revenue	1372	1495	1600.45
Parcel revenue	77.63	112	149.94

B.   E-COMMERCE

Tie-up with e-commerce agencies

900 e-commerce merchants

	2013-14 (Rs. in crore)	2014-15 (Rs. in crore)	2015-16 (Rs. in crore)
Collection through Cash on Delivery (COD)	100	400	800

Parcel delivery per day

40,000 parcels

	Rural (in Rs.)	Urban (in Rs.)
Average value of e-commerce parcel	3000	5000

Overall premium products and services Revenue (Rs. in crore)

2014-15	2015-16	2016-17(up to June)
2827.95	3097.24	691.60

Post Shoppes

No of Post Shoppes opened	50
Total revenue generated	Rs 60 lakh

Distribution of Gangajal

The Department since 10^th July 2016 has made arrangement for distribution of Gangajal, sourced from Rishikesh and Gangotri in 200 ml and 500 ml bottles, from post offices. The same are available through Head Post Offices across the country and can also be ordered online at www. epostoffice.gov.in.

The packaging and handling charges of delivery of Gangajal are as follows:

Size	Source	Post Office counters (in Rs.)	*Online (in Rs.)	Doorstep Delivery (in Rs.)
200 ml	Rishikesh	15	101	28
500 ml	Rishikesh	22	151	38
200 ml	Gangotri	25	101	38
500 ml	Gangotri	35	151	51

*Online cost includes Speed Post charges.

Doorstep delivery means a customer can place an order in the nearest post office and the Gangajal is delivered at his doorstep. The cost excludes Speed Post charges.

  

C.   PARCEL INFRASTRUCTURE

Road Transport network established for fast, secure, and reliable transmission of parcels	34 (major routes)
Mail vans fitted with GPS devices for online monitoring of mail movement	950

	2013-14	2014-15	2015-16
Parcel Centre established	20	28	9

D.   IT MODERNIZATION

CBS roll out	22,722 Post Offices
Post Office Savings Bank (POSB) Accounts migrated to CBS	31.61 Crore
ATM Installed	946
Hand held devices supplied to rural branch Post Office	4,782

E.    FINANCIAL INCLUSION

              i.        Post Office Savings Bank Account

2014-15	2015-16
33,03,35,249	34,53,21,639

            ii.        Sukanya Samriddhi Yojana (SSY)

No. of Sukanya Samriddhi Account (SSA) upto March 2016	85,31,482
Amount invested upto March 2016 (INR)	5151,33,40,173

           iii.        Kisan Vikash Patra (KVP)

No. of KVP sold upto March 2016	2,79,76,490
Amount invested upto March 2016 (INR)	27853,19,91,700

           iv.        Jan Suraksha Yojana (JSY)

No. of Atal Pension Yojana (APY)	98,802
No. of Pradhan Mantri Jeewan Jyoti Yojana(PMJJBY)	25,852
No. of Pradhan Mantri Suraksha Bima Yojana(PMSBY)	3,73,173
Total Number	4,97,827

F. Social Security Pension Scheme

SI No	National Pension Schemes	SB Accounts
		2014-2015		2015-2016
		Total no. of SB accounts  (in Crore)	Total Amount disbursed through the SB accounts during the year 2014-15 (in Crore)	Total no. of SB accounts (in Crore)	Total Amount disbursed through the SB accounts during the year 2015-16 (in Crore)
1	Indira Gandhi National Old Age Pension Scheme (IGNOAPS)	.79	889.44	1.42	1250.99
2	Indira Gandhi National Widow Pension Scheme (IGNWPS)	.24	385.46	.70	909.76
3	Indira Gandhi National Disability Pension Scheme (IGNDPS)	.39	237.25	.95	432.56
4.	Indira Gandhi MatritvaSahyog Yojna (IGMSY)	.05	106.56	.05	27.59
	Total	1.47	1618.71	3.12	2620.9

G. MGNREGA

Disbursement through savings Bank Accounts (SB) under Mahatma Gandhi National Rural employment Guarantee Scheme:

	2014-15	2015-16
Total no. of active SB Accounts	4,43,38,667	4,59,03,201
Total amount of disbursement ( in Rs.)	6631,98,19,176	6177,75,72,875

H.  MONEY ORDERS

Disbursement through Money Orders under National Pension Schemes

SI No	National Pension Schemes
		2014-2015		2015-2016
		No. of MO Booked (in Crore)	Amount (in Crore)	No. of MO Booked (in Crore)	Amount (in Crore)
1	Indira Gandhi National Old Age Pension Scheme (IGNOAPS)	4.32	3201.82	3.13	2256.83
2	Indira Gandhi National Widow Pension Scheme (IGNWPS)	1.40	1029.24	1.76	937.23
3	Indira Gandhi National Disability Pension Scheme (IGNDPS)	.55	414.22	.57	445.78
	Total	6.27	4645.28	5.46	3639.84

Annexure-II

THE TARGETS SET BY THE DEPARTMENT OF POSTS FOR THE COMING THREE YEARS AND ROADMAP TO ACHIEVE THE SAME

1.    Postal Life Insurance (PLI) / Rural Postal Life Insurance (RPLI) :

            India’s Life Insurance sector is expected to increase at a compound Annual Growth (CAGR of 12-15%) over the next few years (source ASSOCHAM Report 2016 and IBEF).  In line with Industry growth trend Postal Life Insurance/Rural Postal Life Insurance may achieve a CAGR of approximately 15% to 25%  over the next few years. A tentative growth in premium income and revenue  (FRR)  is given Below :

Business Targets

YEAR	PLI				RPLI
	No. of Policies in force	Sum Assured (In Rs. Crore)	Premium income (In Rs Crore)	No. of Policies in force	Sum Assured (In Rs. Crore)		Premium income (In Rs. Crore)
Actual
2015­16 (unaudited)	63,13,447	1,36,747.65	6737.72	2,33,59,574	1,15,970.15		2003.03
Projections
2016­17	66,28,650	1,57,259.79	7750.00	2,47,15,950		1,33,365.70	2359.00
2017­18	69,60,083	1,88,711.76	9298.05	2,59,51,748		1,60,038.8	2764.18
2018-19	73,08,087	22,65,454.11	11,157.66	2,72,49,335		1,92,046.6	3317.01

Road Map to achieve the targets :

a)  Revamping Marketing Structure

b)  Improvement in after sales service of PLI and RPLI

c)  Technology Induction- Stabilization of McCamish (the software developed by Infosys for Postal Life Insurance.

d)  Reduction / check of lapse of PLI and RPLI policies

e)  Marketing/ promotion and publicity of PLI and RPLI products leading to brand image

f)   Customer friendly Initiatives such as premium due alert, direct and timely payment of maturity amount to insurants etc

g)   Training of Marketing Personnel in marketing skills and back office staff in policy servicing and underwriting

2.    Financial Inclusion

           

Saving Bank Cash Certificate (SBCC) Target
Current year 2016-17	10247 Crs.
Targets set of coming three years
2017-18		11,272 Crs.
2018-19		12,399 Crs.
2019-20		13,639 Crs.

Road Map to achieve the targets:

(i)         Door to door contact for opening of accounts through field staff by way of handbills, flyers etc. upto the level of rural areas, and distributing pamphlets to all customers who visit post offices.

ii.             Organizing Seminars/Melas/Road Shows to open savings accounts upto the level of rural areas.

iii.            Targets are fixed for each Post Office right from the level of Rural Branch Post Office for opening of Accounts.

THE DETAILS OF CORE AREAS THE DEPARTMENT OF POSTS IS GOING TO FOCUS ON THE COMING THREE YEARS

1.     India Posts Payments Bank(IPPB):

In the area of financial inclusion, the government has decided to set up the India Post Payments Bank. The Post Office with its vast network is the last mile Government institution in the villages that is closest to the people’s heart. The Payments Bank will be run on the state-of-art technology so that they can give quick and sufficient service to the village folks especially in making Direct Benefit Transfer (DBT) payments. The India Post Payments Bank is expected to commence working from May, 2017 and complete linking with all the 1.55 lakh Post Offices by September, 2017.

Benefit :

      I.   Department of Posts with its vast reach and infrastructure is ideally suited to fulfil the parameters laid down for a Payment Bank to ensure financial inclusiveness across the country especially in the rural and remote areas.

    II. The India Post Payments Bank will promote financial inclusion by providing small savings accounts and payments/remittance services to migrant labour workforce, low income households, small businesses, other unorganised sector entities and other users.

   III.  India Post Payments Bank will help to expand banking services to the remotest corner of the country as there is large population in India which do not have banking facilities due to India’s geographical spread, regional disparities, reach and connectivity.

  IV.   The benefits of financial inclusion would result in bringing a host of financial products to suit the needs of different strata of society with special focus on the marginalized sections and citizens in rural areas. It would also bring a large number of individuals and small businesses into the formal banking channel. Combining the use of technology and physical presence it will, create a unique Bank combining physical and digital presence.

   V.   Generation of new employment opportunities for skilled banking professionals and for entities and individuals engaged in propagating financial literacy across the country would be a byproduct of this India Post Payment Bank.

The current status in context of setting up of the Payments Bank including the focus areas is as follows:

      i.        Process of selection of top level management of upcoming India Post Payments Bank has been initiated. A proposal has been sent to Department of Personnel &Training seeking approval of Appointments Committee of the Cabinet (ACC) for the selection of Managing Director  & Chief  Executive Officer  (MD & CEO) of the Bank.

    ii.        The Request for Proposal (RFP) for selection of System Integrators for setting up India Post Payments Bank (IPPB) has been floated.

   iii.        Name of the company India Post Payments Bank (IPPB) has been registered with registrar of companies (MCA) and incorporation of the company is under process.

   iv.        Steps for implementation of the project are being taken as per target set by the cabinet.

2.    IT Modernization Project:

India Post IT Modernization Project with total outlay of Rs 4909 crore aims at modernization, digitization and networking of  1,54,620 post offices,  including 1,29,323 Gramin Dak Sewak post offices, in rural areas across the country.

Under this Project, the benefits for the Customer and the Government are :-

Benefits for the Customers

·         Better financial inclusion especially in rural areas

·         Effective and transparent delivery of social security schemes including DBT

·         Faster and more reliable postal services

·         Multiple channels of access

Benefits for the Government 

·         Last Mile IT Network connecting about 1,55,000 post offices

·         Improved delivery of government schemes in rural areas

·         Improved quality of services

Impact of Digitization/Modernization - CBS and ATM

India Post is one of the largest provider of financial services in the country with an account base of 34.53  Crore and total deposit of Post Office Saving Bank (POSB) accounts and Cash Certificates of Rs.6.53 lakh Crore managed  through a network of more than 1.5 lakh post offices.

Service Delivery Impact:

· Reduction in waiting time for customers at Core Banking Solution enabled post offices

·  Anytime, Anywhere, Any Branch banking from the CBS enabled branches

·  Enabling quick money transfer to rural customers

·  Faster service delivery

· Access to facilities like ATMs, net banking and phone banking to the customers of Small Savings Schemes

·  Prompt grievance redressal on a real-time basis

· Service level improvement for transfer of accounts, posting of interest and encashment of certificates

Core Banking Solution (CBS)

Core Banking is to be rolled out in all departmental post offices (around 25,000). About 1.3 lakh branch post offices will also be covered by deploying CBS (Core Banking Solution) mobile application in hand-held devices. The project will bring in facilities of ATM banking, Internet Banking, Mobile Banking and Phone Banking to the Post Office Savings Bank (POSB) customers. It will enable POSB customers to perform transactions 24x7 in ATMs.

The specific focus areas under this project :

Sl No	Project	Expected time of completion
1	Financial Services Integrator (FSI) Core Banking Solutions for Post Office Savings Bank ( POSB), ATM facility and Core Insurance Solution  Postal Life Insurance (Postal Life Insurance, Rural Postal Life Insurance (PLI & RPLI)	Roll out of Core Banking Solution (CBS) and Core Insurance Solution (CIS) has almost been completed (CBS-88.89% and CIS-99.39%) in technically feasible Post Offices. Efforts are on to provide stable connectivity to the remaining POs so as to expedite CBS & CIS migration. A total of 946 ATMs have been installed.
2	Core System Integrator (CSI) Solutions relating to Mails, Postal counters Remittances, Human Resource (HR), Finance & Accounts (F&A), Customer Interaction etc. and Common Infrastructure.	March,2017
3	Change Management  (CM) Preparing the workforce of the Department, including the Gramin Dak Sewaks for the complete change in the Department’s working after implementation of the Project.	March,2017
4	Mail Operations Hardware (MOH) Providing postman handheld devices & Hardware for Mail offices & Transit Mail Offices.	December,2016
5	Rural ICT Hardware (RICT RH) Supply & installation of Hardware and other peripherals, connectivity and solar backup systems to 130000 Rural Branch Post Offices.	40,000 offices shall be covered by November,2016
6	Rural ICT RSI (RICT RSI) Development of Core application platform, development of MGNREGS application and expansion of already existing e-MO application for RICT hardware devices.