Disbursements Through Post Offices

Disbursements Through

Post Offices

Departmental Employees2,09,047

Gramin Dak Sevaks 2,57,856

Area per PO21.23 sq KmPopulation per PO7184

Postal Network

Disbursement of Benefits• Some disbursements through POSB accounts (MGNREGS ,

IGMSY ) while others either through POSB accounts or MOs (NSAP pensions )

• MGNREGA wage disbursements through POs (Apr 2012- till date)

– 95,931 POs (82,998 BOs, 12,342 SOs and 591 HOs) in 19 Postal Circles involved. Not involved in Delhi, J&K and TN Postal Circles

– Rs 5584 cr disbursed - 53% of total disbursements (through 4.7 cr accounts - 54% of total accounts)

• Pension disbursements (2011-12)– 64 lac accounts (Rs 984 cr disbursed)– 4.4 cr MOs issued (Rs 2850cr disbursed)

Wage Disbursement

Receipt of Wage List at HO

Wage paid at BO

Receipt of Wage List and Cheque at HO/ SO

SO/ BO Authorised to

make Payment and Cash Arranged

N

N

Y

N

Y Y

START

STOP

Rolling Fund

Fund Available

Cheque Cleared

Major Challenges Faced by POs• Lack of security arrangements for conveyance of cash• Rolling fund has not been provided in many districts• Wage lists/pay orders are sent after considerable

time• Delay in clearance of cheques• Non-availability of cash at bank branches• Sudden increase of work at BO• Largely manual operation• Law and order problem in some areas• Unlawful pressure at local level• Absence of POs in some areas

Challenges Addressed by DOP• Line limits made dynamic• Withdrawal limit at BOs increased to Rs. 5,000• Cash balance at BOs increased and made

dynamic• Human resource strengthened for disbursement• State Governments are being regularly

requested for providing security for conveying cash.

Road Ahead• Rural ICT

– will improve efficiency– If the records of state Governments are computerized it

would allow submission of wage bills electronically thus avoiding delay on this count, and synchronization of data between state Governments and post offices.

– Biometric devices will improve transparency of transactions.

– Workload at POs will be better managed– will facilitate better overall monitoring at local as well as

at central levels• Proposal for opening of Pos is being pursued

8 RFPs for IT Induction

8

Rural ICT Solution

9

Dev

ices

Net Book Handheld Computers Thermal PrinterBiometricScanner2D Imager

Smartcard / Mag StripeReader and Writer

Rura

l ICT

Sol

ution

Ove

rvie

w

Future Applications

MGNREGS

Nearest Connected SO/HO

Internet

Central Server Application/ SDP

In case of no

connectivity at

BO

eMOMail

Operations

Postal Banking Solution

Postal Insurance Solution

Third Party Applications

Client Application on Rural ICT Device

Illustrative Rural ICT Devices

Rural ICT Service Delivery Platform = Central Server Application + Client Application

Digital Camera Solar Panel

Process for NREGA Payments

10

Future Applications

MGNREGS


Internet


In case of no

connectivity at

BO

eMOMail

Operations







Future Applications

MGNREGS


Internet


In case of no

connectivity at

BO

eMOMail

Operations







Central Application/ SDP State Government

3. Disbursements are carried out at various BOs

2. Information is pushed by the SDP to respective BO devices

…..Beneficiaries

4. Information on disbursements is sent back to the server

1. State Government sends electronic file with beneficiary details

5. Updated file is sent back to State Government

IT ENABLEMENT OF BOs

•Provision for ICT equipment•Central data base•Would address various challenges

•Fingerprint, card reading capability•GPS enabled•Voice guidance system•Solar power

Rural ICT Project Timeline

12

Quarters Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8

Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 18 20 21 22 23 24

Rural ICT

Application

(RSI)

Rural ICT

Hardware

(RH)

Vendor Selection

Roll OutPhase II

Roll OutPhase I

Roll OutPilot

Program Management of Roll out

• 3 months• 4,000 BOs



Vendor

Selection

Develop

Application

Current Stage

Supply of MCDsPhase II

Supply of MCDsPhase I

Supply MCDsPilot

Interim Solution• Patch for electronic transfer of wage bills from

State Govts to POs and its credit in electronic ledgers available

• Necessary MIS can be generated for State Govts • However, it is not being implemented because

electronic transfer of fund from bank accounts of State Govts to Govt accounts is not permitted

Thanks

Solution Empowers Rural India

15

Banking services for “un-banked” rural population

Availability of multiple channels for ease of transaction

Expedited distribution of insurance policies to 100 million rural customers

Personalized Smart cards for policy holders to enable paperless transactions

Electronic and Secure mode of money transfer into rural India

Confirmation of successful transfers through SMS

Focal point of delivery of all Social Security schemes of the State

Reduction in fraud and errors through biometric authentication

Online retail outlet to rural communities

Utility bill Payments (water, electricity,)

Phone top ups, rail ticket bookings

Last mile tracking Streamline mail booking process by

printing and scanning bar codes

Mail Operations

Postal Banking

Retail Applications

Money Order Transfer

Rural Life Insurance

Paying Social Security Schemes

Rural ICT

Enablement

Documents

Disbursements Through Post Offices