**Executive Summary:**
The Ministry of Communications, Department of Posts, responded to a parliamentary question regarding the modernization and digitization of the India Post system. The response details the progress of the DOP IT 1.0 project, its assessment findings, and the ongoing DOP IT 2.0 project, with an outlay of Rs 5785 Crore, which commenced in 2022-23. It further outlines specific initiatives to improve postal banking and parcel services across India, including rural areas.
**Key Points / Main Content:**
* **DOP IT 1.0 Project:**
* Aimed to transform the Department of Posts into a technology-driven organization.
* Mid-term review in 2018 by IIM, Lucknow, and final evaluation in 2021 by IIPA.
* Achieved an Internal Rate of Return (IRR) of 6.33%.
* Improved service delivery speed and accessibility, especially for unbanked customers.
* Postal operations are efficiently working on digital platforms.
* Customer satisfaction is generally high, with network connectivity issues being a concern.
* **DOP IT 2.0 Project:**
* Approved with an outlay of Rs 5785 Crore for eight years, commencing in 2022-23.
* Aims to provide an integrated single-window view of postal and financial services through multiple channels.
* Rollout of Advanced Postal Technology (APT) across all 1.64 lakh Post Offices.
* Enables faster, secure, and user-friendly postal services and QR code-based digital payments.
* Android-based Mobile Phones provided to all rural Branch Post Offices.
* Internal Mobile App (IMA) deployed with digital signature capture, real-time delivery updates, and digital payment features.
* **Core Banking Solution (CBS) Initiatives:**
* ATM facilities.
* Internet and Mobile Banking.
* NEFT/RTGS for fund transfers.
* ECS for interest and maturity amount credits.
* ePassbook facility.
* IPPB-Post Office Savings Account linkage.
* IVRS facility.
* **India Post Payments Bank (IPPB) Initiatives:**
* Services enabled through 1.64 lakh access points.
* Offers savings and current accounts, virtual debit cards, online payment for Post Office Saving schemes and AePS.
* **Mail and Parcel Sector Initiatives:**
* Mail and Parcel Optimization Project (MPOP) focuses on automation, standardization, and technology integration.
* All parcels are classified as accountable articles.
* All types and weight categories of parcels can be booked and delivered through Branch Post Offices.
* Technology integration includes real-time tracking, API integration, capturing second delivery address, SMS notifications, and system-assisted sorting.
* Computerization and infrastructure upgrades of sorting and mail processing offices.
**Impact Analysis:**
* **Customers:**
* *Impact:* Faster, more accessible, and more reliable postal and financial services, especially in rural areas. Improved tracking and delivery of parcels.
* *Action Required:* Utilize the new digital services and provide feedback to the Department of Posts.
* **Department of Posts Employees:**
* *Impact:* Required to adapt to new technologies and processes. Enhanced tools and infrastructure to improve efficiency.
* *Action Required:* Participate in training programs for new technologies and implement updated procedures.
* **Rural Communities:**
* *Impact:* Increased access to banking and financial services through IPPB and mobile-enabled post offices.
* *Action Required:* Utilize the services offered at Branch Post Offices and IPPB access points.
Key Entities Referenced
India Post: The postal service of India, undergoing modernization and digitization efforts.
Core Banking Solution CBS: A key component of the India Post modernization project, facilitating banking services.
India Post Payments Bank IPPB: A payments bank established by India Post to provide accessible banking services.
Department of Posts IT Modernization Project 2012 DOP IT 1.0: A Mission Mode e-governance project aimed at transforming the Department into a technology driven organization.
Information Technology Modernization Project 2.0 DOP IT 2.0: A project approved by the Government in continuation of DOP IT 1.0 with an outlay of Rs 5785 Crore for a period of eight years commencing from 202223.
IIM, Lucknow: Indian Institute of Management Lucknow, which conducted a midterm review of the DOP IT 1.0 Project in 2018
Advanced Postal Technology APT: A new inhouse developed Postal and Logistics Solution, across all 1.64 lakh Post Offices in the country.
Mail and Parcel Optimization Project MPOP: A key initiative of the Department of Posts aimed at modernising and streamlining mail and parcel operations across the country.
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF POSTS
LOK SABHA
UNSTARRED QUESTION NO. 4452
ANSWERED ON 20TH AUGUST, 2025
PROGRESS AND CHALLENGES IN MODERNISATION AND DIGITISATION OF
INDIA POST SYSTEM
4452. SHRI K E PRAKASH:
Will the Minister of COMMUNICATIONS be pleased to state:
(a) whether the Government has undertaken any review or assessment of the progress and
challenges in the modernisation and digitisation of the India Post system including the Core Banking
Solution (CBS) rollout, IT system integration and India Post Payments Bank (IPPB) expansion;
(b) if so, the key findings of such assessments with respect to service delivery gaps in rural and
remote areas, connectivity and infrastructure constraints and workforce capacity for digital adoption;
and
(c) the specific policy measures proposed or implemented by the Government to address these
challenges, improve interoperability and ensure equitable access to modern postal banking and parcel
services across all regions of the country?
ANSWER
MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT
(DR. PEMMASANI CHANDRA SEKHAR)
(a) Yes Sir.
(b) Sir,
1. Department of Posts implemented IT Modernization Project 2012 (DOP IT 1.0), a Mission
Mode e-governance project, aimed at transforming the Department into a technology driven
organization ensuring improved service delivery for customers.
2. For assessment of progress and challenges of DOP IT 1.0 Project, a mid-term review of the
Project was done in 2018 by IIM, Lucknow and final evaluation of the Project was done by an
independent third-party evaluator, IIPA (Indian Institute of Public Administration), in 2021.
Some of the key findings of the final evaluation are as under –
i. Department achieved Internal Rate of Return (IRR) of 6.33 % after implementation of
IT Modernization Project 2012.
ii. The qualitative and quantitative contributions made by the 'IT Modernization Project
2012 of the Department of Posts have been found to be effective. Qualitatively, the faster
delivery of services has been found as one of the major improvements. Quantitatively,
the number of postal services made accessible, particularly to the un-banked/under-
banked customers, were found to have grown.
iii. The postal operations have been found to be efficiently working on digital platforms.
1iv. As per the surveys conducted, the Department of Posts (DoP) customers were found to
be by and large satisfied, with the postal staff. The technical glitch due to network
connectivity disappointed some customers.
(c) Sir,
1. In continuation of DOP IT 1.0, Government has approved Information Technology
Modernization Project 2.0 (DOP IT 2.0) with an outlay of Rs 5785 Crore for a period of
eight years commencing from 2022-23.
2. The Information Technology Modernization Project 2.0 combines applications, intelligent
platforms and interconnected ecosystems so as to provide an inclusive integrated single
window view of Postal and Financial Services to its stakeholders through multiple delivery
channels.
3. Under DOP IT 2.0 Project, Department has completed rollout of new in-house developed
Postal and Logistics Solution, named as Advanced Postal Technology (APT), across all 1.64
lakh Post Offices in the country. It will make postal services faster, secure, and user-friendly
and enable Post Offices to accept QR Code based digital payments.
4. DoP has provided Android based Mobile Phones to all rural Branch Post Offices of the
country to facilitate the delivery of Postal, Financial, Insurance and Government services to
rural masses. In house developed Internal Mobile App (IMA) under APT has now been
deployed in these phones which has the capability to capture the digital signature of the
addressee, real-time update for articles delivery and integrated digital payment feature
(using dynamic QR code functionality).
5. Further, a list of initiatives taken by the Department in Core Banking Solution (CBS), India
Post Payments Bank (IPPB), Mails and Parcel services throughout the nation, including
remote and rural regions, to mitigate delivery gaps, address infrastructure challenges and
advance the modernization and digitization of the India Post System is attached as
Annexure-I.
2Annexure-I
Annexure-I referred to in answer to part (c) (5) of Lok Sabha Unstarred Question No. 4452
answered on 20.08.2025
I. Initiatives in Core Banking Solution (CBS)
a) Automatic Teller Machine (ATM) facilities.
b) Internet Banking and Mobile Banking.
c) National Electronic Fund Transfer (NEFT) / Real Time Gross Settlement (RTGS) services
for transfer of funds from post office to bank and vice versa.
d) Electronic Clearing Services (ECS) facility- for crediting the interest and maturity amount in
bank accounts.
e) e-Passbook facility to view the balance and mini-statement.
f) India Post Payments Bank -Post Office Savings Account linkage services for all types of
digital transactions.
g) Interactive Voice Response System (IVRS) facility.
II. Initiatives in India Post Payments Bank (IPPB)
a) India Post Payments Bank (IPPB) services have now been enabled through 1.64 lakh access
points.
b) IPPB offers a variety of banking services including savings and current accounts. Virtual
Debit Card, Post Office Savings Account linkage with IPPB accounts, online payment for
Post Office Saving schemes, Aadhaar Enabled Payment System (AePS) etc.
III. Initiatives in Mail and Parcel Sector
a) The Mail and Parcel Optimization Project (MPOP) is a key initiative of the Department of
Posts aimed at modernising and streamlining mail and parcel operations across the country.
It focuses on end-to-end process optimization through automation, standardisation of
workflows and integration of advanced technologies such as parcel sorters and real-time
tracking systems. MPOP seeks to improve operational efficiency, reduce turnaround times
and enhance service quality, enabling India Post to handle higher volumes of e-Commerce
and logistics consignment competitively.
b) According to the Post Office Regulation of 2024, all parcels are now classified as accountable
articles to enhance the tracking services for every parcel booked by the Department of Posts.
c) The previous system of restricted and specific weight parcel booking and delivery from
Branch Post Offices has been modified or enhanced. Currently, all types of parcels and all
weight categories of parcel can be booked and delivered through Branch Post Offices in rural
areas.
d) Technology Integration- Real time delivery status, tracking of articles viz. Speed Post, API
integration, capturing second delivery address, en-route cancellation, system assisted sorting,
system enabled settlement of errors, SMS notifications of booking & delivery information for
accountable mail to the customers are a few technology interventions which have been made
to improve parcel services.
e) Computerization, infrastructure and site upgradation of sorting and mail processing offices
have been carried out.
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