With the new Franchise scheme, one can open their own post office


Sathessh Mullappaly

Although the scheme was announced months ago, there was not much progress in Kerala. Certain employees’ associations claim that this is a move to privatize the postal department.

Representational Image | Photo: Mathrubhumi

Pathanamthitta: Indian Postal Department has decided to introduce a franchise scheme in the post department. This means that people now have the opportunity to start their own post offices in their locality and also to become a postal agent.

Service only through counters

India has the largest postal service network in the world. There are 1.55 lakh post offices in the country. Out of this, 89 percent of the offices are in rural areas. However, there are still lots of areas where the postal services do not reach. Franchise offices are being opened because it is not practical for India Post to open direct offices everywhere. In this way, all transactions via counters will be handed over to private agents or institutions.

Who can apply?

People settled permanently in areas where offices have to be started or institutions located in the same area can apply for the franchise scheme. The application available in the website should be filled in and submitted at the postal division office (https://www.indiapost.gov.in/VAS/Pages/Content/Franchise_Scheme.aspx). All those above the age of 18 and passed at least Class 8 can apply. Franchises will be allowed only if the Postal department is not be able to provide services in that particular locality.

Terms and conditions

The applicant must have a room (either owned or rented). People running commercial institutions can open the franchise office as part of that institution. A minimum of Rs 5,000 should be paid as security deposit. This deposit should be increased as the value of transactions also increase. The contract has to be signed by agreeing to all conditions including maintaining the responsibility and dignity of the Postal Department in all transactions. All security conditions applicable for the postal department will be applicable for the franchise offices as well.

Transactions

These franchise offices can sell items including postal stamps. Speed post, registered post and money order can be accepted in these offices. The individual concerned can also work as a Postal Life Insurance agent. They can also collect bill tax and fines. They can also set up e-governance system in the office along with the new schemes implemented by the postal department.

How income can be generated

A commission of Rs 3 can be obtained for each registered posts and Rs 5 for each speed post. Rs 3.50 can be gained from money orders upto Rs 200 and Rs 5 for money orders over Rs 200. Agents who are authorized to sell only stamps can get a commission of 5 percent.

Scheme a move to privatise the departement?

Although the scheme was announced months ago, there was not much progress in Kerala. Certain employees’ associations claim that this is a move to privatize the postal department. They said that states like Arunachal Pradesh need such offices and that a state like Kerala, which has 5,063 post offices, do not need franchise schemes.

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