**Executive Summary:**
This document is the Indian government's response to a parliamentary question regarding the performance of post offices in rural areas. It clarifies that mail business is not declining, as traffic and revenue for Speed Post Letter and Registered letters have increased. It also outlines measures being taken to improve the finances of the Department of Posts, including technological upgrades, customer incentives, and expanded services in rural areas. The information provided pertains to the period between 2018-19 and 2024-25, with measures ongoing as of July 30, 2025.
**Key Points / Main Content:**
* **Mail Business Performance:**
* The traffic and revenue of Speed Post Letter and Registered letters have increased.
* Total revenue grew from Rs. 2057.84 crores in 2018-19 to Rs. 2352.55 crores in 2024-25.
* Total traffic grew from 72.61 crores in 2018-19 to 87.64 crores in 2024-25.
* **Measures to Enhance Revenue:**
* Technological, operational, and other reforms aligned with current market requirements.
* End-to-end tracking and real-time delivery updates via mobile app and SMS notifications.
* Volume-based discounts for contractual customers meeting minimum monthly revenue thresholds.
* National Account Facility for major clients to manage billing and payments centrally.
* API-based integration for data exchange with contractual customers.
* **Rural Area Services:**
* Aadhaar enrollment and updating services via mobile kits at local schools, panchayat offices, and health centers.
* Verification services for government and financial institutions to enhance financial inclusion.
* Core Banking Solutions (CBS) in all post offices, including ATMs, Internet Banking, Mobile Banking, NEFT, RTGS, ECS, IVRS, and e-Passbook.
* India Post Payments Bank (IPPB) supplying mobile devices in branch post offices to support digital inclusion and financial empowerment.
**Impact Analysis**
* **Customers:**
* Impact: Improved tracking, convenient services (Aadhaar, banking), discounts for bulk usage.
* Action Required: Utilize the new services and technologies offered.
* **Department of Posts Employees:**
* Impact: Use of new technologies (mobile app, CBS) and processes for service delivery.
* Action Required: Implement and manage the new technologies and services effectively.
* **Contractual Customers:**
* Impact: Opportunity for volume-based discounts and API integration for streamlined operations.
* Action Required: Meet minimum revenue thresholds to qualify for discounts, integrate systems via API.
* **Rural Citizens:**
* Impact: Increased access to Aadhaar services, banking facilities, and financial assistance verification.
* Action Required: Avail themselves of the Aadhaar enrollment, updating services, and financial services.
* **Government and Financial Institutions:**
* Impact: Streamlined verification processes for beneficiaries and investors.
* Action Required: Utilize the verification services provided by the Department of Posts.
Key Entities Referenced
Department of Posts: The government department responsible for postal services in India.
Ministry of Communications: The Indian government ministry responsible for communications and information technology.
Speed Post: An expedited mail service offered by the Department of Posts.
India Post Payments Bank IPPB: A payments bank established by the Department of Posts to provide financial services in India, especially in rural areas.
Aadhaar: A 12-digit unique identity number issued to all Indian residents.
National Electronic Funds Transfer NEFT: A nationwide electronic funds transfer system in India.
Prime Ministers Employment Generation Programme PMEGP: A credit-linked subsidy program in India to promote self-employment.
Khadi and Village Industries Commission KVIC: A statutory body in India promoting khadi and village industries.
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF POSTS
LOK SABHA
UNSTARRED QUESTION NO. 1831
ANSWERED ON 30TH JULY, 2025
PERFORMANCE OF POST OFFICES IN RURAL AREAS
1831. COM. SELVARAJ V:
Will the Minister of COMMUNICATION be pleased to state:
(a) whether it is a fact that mail business has come down sharply the world over and India is not
an exception and the postal department is running at heavy losses;
(b) if so, the details thereof; and
(c) the measures being considered to run the existing post offices particularly in rural areas by
improving the finances of the Department of Posts?
ANSWER
MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT
(DR. PEMMASANI CHANDRA SEKHAR)
(a) No, Sir. The traffic and revenue of Speed Post Letter and Registered letter have been
increasing over the years. Total revenue (Speed Post Letter and Registered letter) has grown from
Rs. 2057.84 crores in 2018-19 to Rs. 2352.55 crores in 2024-25. At the same time total traffic (Speed
Post Letter and Registered letter) has grown from 72.61 crores in 2018-19 to 87.64 crores in 2024-
25.
(b) Does not arise in view of (a) above.
(c) The Department of Posts is undertaking the following measures to enhance its revenue across
the country including rural areas. The Department has undertaken a range of technological,
operational and other reforms that are aligned with current market requirements:
(i) End to end tracking and real-time delivery updation for all accountable items through a
mobile-based delivery app and SMS notification system to keep customers informed
about booking and delivery status.
(ii) Volume-based discounts are provided to contractual customers who meet minimum
monthly revenue thresholds, incentivizing bulk usage.
(iii) The National Account Facility allows major clients to manage billing and payments
centrally through a single nodal office, simplifying multi-location operations.
1(iv) API-based integration for seamless exchange of data for pick-up, booking, determining
tariff, ascertaining Pin codes etc. with contractual customers for improved operational
efficiency.
(v) Aadhaar enrolment and updating services especially in rural areas using mobile kits.
These portable units are deployed at local schools, panchayat offices, and health centers,
making services easily accessible.
(vi) Verification services for various government and other financial institutions such as
Khadi and Village Industries Commission (KVIC) under Prime Minister’s Employment
Generation Programme (PMEGP) scheme, mutual fund investors etc. to enhance
financial inclusion by helping rural citizens meet mandatory compliance requirements
and ensuring that genuine beneficiaries receive timely assistance and subsidies.
(vii) All post offices across India, including those in rural areas, are functioning under Core
Banking Solutions (CBS), providing services such as ATMs, Internet Banking, Mobile
Banking, National Electronic Funds Transfer (NEFT), Real-Time Gross Settlement
(RTGS), Electronic Clearing Services (ECS), Interactive Voice Response System (IVRS)
and e-Passbook facilities to the customers for seamless transactions. Additionally, India
Post Payments Bank (IPPB) has supplied mobile devices in branch post offices to support
digital inclusion and financial empowerment in rural areas, while contributing to the
Department’s revenue.
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