India Post is at a crossroads. As private courier services continue to expand their market share with speed and convenience, it must adapt to stay competitive
India Post, a vital lifeline in connecting citizens across the country, needs to undergo a comprehensive review of its services. This reform should focus on introducing innovation, ensuring greater revenue generation for the Department of Posts (DoP), and maintaining affordability for the public. As private courier services continue to gain traction due to their convenience and efficiency, India Post must adapt to remain competitive and relevant in a rapidly changing environment.
Rationalising Postal Tariffs and Eliminating GST on Select Services
The current structure of postal services includes highly subsidised offerings, such as postcards priced as low as 50 paise. While such subsidies aim to make communication accessible, they are often exploited. For instance, during Lok Sabha elections in 2019, political parties used postcards extensively, resulting in significant costs to the public exchequer. Similarly, postcards are frequently misused for commercial purposes, such as reminders by chit-fund companies. These subsidised services, rarely used by the common man, burden taxpayers without corresponding benefits.
To address this, printed or rubber-stamped postcards should be discontinued unless they are sponsored. The introduction of sponsored Meghdoot postcards priced at Re1 and printed postcards priced at Rs10 could ensure a sustainable revenue model. Similarly, the tariff for registered newspapers could be rationalised to Rs1, reflecting the increased cost of inputs for small newspaper production.
Additionally, while normal postal services are exempt from GST, applying GST on premium services like Speed Post is counterproductive. It results in a redundant transfer of funds between government departments. Rationalising tariffs for Speed Post to Rs 20 or Rs 30 per 50-gram weight slabs and aligning other domestic and international postal tariffs in multiples of Rs 10 would streamline the system and reduce inefficiencies. International postal rates could follow a consistent structure, with uniform tariff increases per weight slab for air and surface mail.
Generating Revenue Through Sponsored Postal Stamps
To boost revenue, the DoP should introduce sponsored postal stamps. These stamps, carrying advertisements or approved messages, could be issued in bulk to sponsors at a fixed charge per printed stamp. This initiative could attract businesses, encouraging them to utilise postal services over private courier companies.
Additionally, a new series of definitive postal stamps and stationery could be launched annually on the first day of the financial year. These stamps should maintain consistent color schemes for specific denominations while showcasing new designs based on a selected theme. Commemorative stamps, previously issued in arbitrary denominations like Rs 12 and Rs 41, should be standardised to denominations in multiples of Rs 10. Furthermore, the practice of printing stamps of different denominations on the same sheet, except for miniature sheets, should be discontinued as it complicates usage.
Miniature sheets, being collectible items, should be priced higher than the face value of the stamps they contain. Such measures could not only enhance revenue through philately but also rekindle public interest in postal services.
Replacing “My-Stamp” with Sponsored Stamps
The “My-Stamp” initiative, which allows individuals to print personal images on postage stamps, has been misused. Reports indicate instances of notorious individuals obtaining stamps with their photos, tarnishing the program’s credibility. Since no robust mechanism exists to screen applicants’ backgrounds, the programme is susceptible to abuse. Discontinuing the “My-Stamp” concept in favor of sponsored stamps could address this issue. Sponsored stamps would not only ensure better regulation but also offer a significant revenue stream.
Enhancing Consumer Convenience with Sticker Receipts
Currently, receipts issued by the Postal Department include a sticker only on the portion retained by the Department, leaving the consumer without one. Adding stickers to consumer receipts would eliminate the need for gum to paste them onto dispatch registers or documents. This small change could save public resources and improve the user experience, especially for organisations that rely heavily on postal services.
Introducing RTI Stamps and Rationalising Postal Orders
Postal orders in low denominations such as Rs 1, Rs 2, Rs 5, and Rs 7 were discontinued due to high handling costs. For example, the handling cost of a postal order in 2011–12 was Rs 37.45, far exceeding its value. To minimise losses, higher denominations like Rs 100, Rs 200, and Rs 500 could be introduced. Furthermore, RTI-specific stamps in denominations of Rs 2, Rs 10, and Rs 50 could replace postal orders for fees under the RTI Act, streamlining the payment process. This approach aligns with recommendations from the Central Information Commission and addresses the issue of unfeasible copying charges below Rs10 due to the absence of lower-denomination postal orders.
Managing Inoperative and Matured Accounts
Unclaimed deposits in post office accounts often remain unnoticed due to deceased account holders failing to inform legal heirs. This creates a risk of fraud, as unscrupulous individuals may attempt to claim such funds in collusion with postal employees. To mitigate this risk, the Postal Department should send registered letters to account holders who have not operated their accounts or claimed matured deposits for over three years. If no response is received within three months, the funds should be frozen in fixed accounts and made accessible only after rigorous verification. Publishing details of such accounts could help legal heirs claim their rightful amounts, subject to stringent scrutiny. The introduction of successive nominations, as practiced by LIC of India, would further safeguard deposits and simplify inheritance processes.
Expanding Postal Services Through Bank Counters
The closure of post offices in key commercial areas, such as Chandni Chowk in Old Delhi, has caused inconvenience for businesses that rely on Registered and Speed Post services. With banks increasingly adopting government savings schemes, their branches could be utilised for booking postal services. Offering banks a nominal commission for hosting these services would not only enhance accessibility but also integrate postal and banking ecosystems more effectively.
Revamping the Postal Ecosystem for Sustainability
India Post’s transformation should emphasise efficiency, innovation, and customer-centricity. Rationalising tariffs, eliminating wasteful subsidies, and leveraging sponsored services are crucial steps toward financial sustainability. Additionally, addressing operational inefficiencies and improving service delivery will help India Post reclaim its position as a trusted and competitive communication medium.
By embracing these changes, India Post can not only secure its financial future but also continue serving as a cornerstone of India’s communication network.
(The writer is a Guinness World Record holder and RTI Consultant; views are personal)
