TARGETS FOR SPMs / POSTMASTERS UNDER POSB SCHEMES
- Is it realistic and achievable ?
Dear friends,
You all might have gone through the S B Orders recently circulated by the Directorate in connection with reinvestment of maturity value of one scheme to same or another ( S B Order No. 13/2010 vide Dte.’s letter No.113-3/2008-SB), dated 26.07.2010, admissibility of interest after death of depositor before maturity in case of SCSS-2004 ( SB Order No.17/2010 vide Dte.’s letter No.79-01/2010-SB, dated 23.08.2010 and above all introduction of Anti-Money Laundering / Combating of Financing of Terrorism norms ( SB order No.18/2010 vide Dte.’s letter No.109-04/2007-SB, dated 24.08.2010). All these orders have imposed several restrictions both on the post offices and on customers for investment / reinvestment. Particularly due to strict adherence of the instructions under Customer Due Diligence / Know Your Customer (KYC) norms vide SB Order No.18/2010, customers have started grumbling at the post office counters expressing serious dissatisfaction when asked for their address proof, identity proof and photographs etc. for opening of new accounts / purchase of certificates and as experienced, most of such customers never return with the required documents and thus there has been a decreasing trend in investment in post offices.
2. Physical presence of customers at the time of opening of account / purchase of certificates has been made mandatory now vide SB Order No.18/2010. The customers opting their transactions through agents are seen avoiding to come in person to post office which directly affects the investments under POSB schemes.
3. Compulsory submission of PAN / declaration in Form 60 / 61 in case of investment exceeding Rs.50000/- is another cause of decreasing investment in post offices. The Post Office Small Savings Schemes have not remained favourable anymore for small investors – most customers opine due to the recent restrictions.
4. No revision in rates of interest since 2003 has already affected the deposits under various POSB schemes which has been a question in the Parliament several times with no result.
5. Though the account opening form ( SB-3 ) has since been revised vide S B order No.16/2010 (Dte.’s letter No.114-01/2002-SB, dated 23.08.2010), neither the new form nor the old SB – 3 is presently available in Orissa Circle. While all post offices are not computerized with net facilities and xerox facilities are not available everywhere especially in rural areas, Post Offices have been advised to download the same from website or to make photocopy for supplying to the customers which has created an embarrassing situation for post offices before the customers. A period of four months is going to be elapsed. But the Department has failed to print and supply revised SB-3 forms to post offices in Orissa Circle.
When the SPMs / Postmasters are working under the above restrictions confining themselves within the four walls of the Post Office, the Department has fixed unrealistic targets for opening of new accounts and issue / discharge of certificates. Since the duties of the SPMs / Postmasters are confined to the four walls of the Post Office and they don’t have any other option except requesting the customers through the Counter P As, perhaps, there is no justification for fixing specific targets for the SPMs / Postmasters. Illustratively, Sahidnagar MDG in spite of its prime location in the capital city of Odisha has only opened 1007 accounts out of 4000 fixed for 2010-11 and issued / discharged 5904 savings certificates out of 17000 targeted for 2010-11 respectively as on 30.11.2010. Thus, certainly, the target fixed for the post offices are unrealistic and unachievable. This might be the position in other divisions in Odisha Circle and other circles of the nation also.
Thus, in view of this, in order to procure more business and achieve the required targets under different POSB schemes, it is suggested that the Directorate, in addition to giving priority for Core Banking Solution, may consider to:
1. Deploy special filed staff for collecting business under POSB schemes as like as Business / Marketing Executive for Business Development.
2. Recruit special agents for procuring POSB business as made for PLI / RPLI without depending upon the existing SAS/MPKBY agents. The case of retired postal employees may be considered for the purpose.
3. Allow postmen staff to collect business on POSB Scheme on commission basis as given to SAS / MPKBY agents.
4. Take the matter with Ministry of Finance, Govt. of India for increasing rates of interests in various POSB Schemes.
5. Grant normal savings bank interest for completed months in case of premature closure of various Time Deposit accounts. Presently, no interest is paid if withdrawn prematurely after 6 months but before expiry of one year. Where a deposit in a 2 year, 3 year or 5 year account is withdrawn prematurely after the expiry of one year from the date of deposit, interest is paid for completed years but 2 % less than the rate specified for deposit of 1 year, 2 year and 3 year respectively as the case may be. Such conditions need to be withdrawn immediately.
6. Remove ceiling fixed for Single / Joint S B Accounts, MIS and SCSS Accounts. When the Govt. has already allowed fixed deposits under TD Accounts ( for 1,2,3 and 5 years ) and Savings Certificates ( for 6 years in case of NSC and 8 years 7 months in case of KVP ) without any limit, there may not be any logic for restricting the MIS Account for 6 years and SCSS for 5 years.
7. Print and supply the revised forms at once.
8. Print leaflets / brochures / literatures on various POSB schemes preferably carrying the salient features and comparative benefits of the same schemes provided by our competitors and give to post offices in huge quantity for circulation amongst the customers. This has been a great draw back in Orissa Circle. The SPMs / Postmasters are quite unable for instant supply of a literature to a needy customer due to scarcity of printing and supply. These are being printed in small quantity, perhaps annually once which does not satisfy the requirement. As experienced, the importance of advertising has not yet been felt seriously by the Department.
9. Supply Pass Book and Certificate covers for instant motivation.
10. Relax the norms for opening of S B and R D Accounts and for purchase of KVPs ( up to certain amount ) which are really meant for small savings. A poor man from lower income group, preferably a daily labourer, now finds it difficult for opening a R D Account of Rs10/- denomination and for purchase of a KVP of Rs.100/- denomination. Many customers from this group fail to produce identity and address proof. Special relaxation may be there for BPL card holders.
- Is it realistic and achievable ?
Dear friends,
You all might have gone through the S B Orders recently circulated by the Directorate in connection with reinvestment of maturity value of one scheme to same or another ( S B Order No. 13/2010 vide Dte.’s letter No.113-3/2008-SB), dated 26.07.2010, admissibility of interest after death of depositor before maturity in case of SCSS-2004 ( SB Order No.17/2010 vide Dte.’s letter No.79-01/2010-SB, dated 23.08.2010 and above all introduction of Anti-Money Laundering / Combating of Financing of Terrorism norms ( SB order No.18/2010 vide Dte.’s letter No.109-04/2007-SB, dated 24.08.2010). All these orders have imposed several restrictions both on the post offices and on customers for investment / reinvestment. Particularly due to strict adherence of the instructions under Customer Due Diligence / Know Your Customer (KYC) norms vide SB Order No.18/2010, customers have started grumbling at the post office counters expressing serious dissatisfaction when asked for their address proof, identity proof and photographs etc. for opening of new accounts / purchase of certificates and as experienced, most of such customers never return with the required documents and thus there has been a decreasing trend in investment in post offices.
2. Physical presence of customers at the time of opening of account / purchase of certificates has been made mandatory now vide SB Order No.18/2010. The customers opting their transactions through agents are seen avoiding to come in person to post office which directly affects the investments under POSB schemes.
3. Compulsory submission of PAN / declaration in Form 60 / 61 in case of investment exceeding Rs.50000/- is another cause of decreasing investment in post offices. The Post Office Small Savings Schemes have not remained favourable anymore for small investors – most customers opine due to the recent restrictions.
4. No revision in rates of interest since 2003 has already affected the deposits under various POSB schemes which has been a question in the Parliament several times with no result.
5. Though the account opening form ( SB-3 ) has since been revised vide S B order No.16/2010 (Dte.’s letter No.114-01/2002-SB, dated 23.08.2010), neither the new form nor the old SB – 3 is presently available in Orissa Circle. While all post offices are not computerized with net facilities and xerox facilities are not available everywhere especially in rural areas, Post Offices have been advised to download the same from website or to make photocopy for supplying to the customers which has created an embarrassing situation for post offices before the customers. A period of four months is going to be elapsed. But the Department has failed to print and supply revised SB-3 forms to post offices in Orissa Circle.
When the SPMs / Postmasters are working under the above restrictions confining themselves within the four walls of the Post Office, the Department has fixed unrealistic targets for opening of new accounts and issue / discharge of certificates. Since the duties of the SPMs / Postmasters are confined to the four walls of the Post Office and they don’t have any other option except requesting the customers through the Counter P As, perhaps, there is no justification for fixing specific targets for the SPMs / Postmasters. Illustratively, Sahidnagar MDG in spite of its prime location in the capital city of Odisha has only opened 1007 accounts out of 4000 fixed for 2010-11 and issued / discharged 5904 savings certificates out of 17000 targeted for 2010-11 respectively as on 30.11.2010. Thus, certainly, the target fixed for the post offices are unrealistic and unachievable. This might be the position in other divisions in Odisha Circle and other circles of the nation also.
Thus, in view of this, in order to procure more business and achieve the required targets under different POSB schemes, it is suggested that the Directorate, in addition to giving priority for Core Banking Solution, may consider to:
1. Deploy special filed staff for collecting business under POSB schemes as like as Business / Marketing Executive for Business Development.
2. Recruit special agents for procuring POSB business as made for PLI / RPLI without depending upon the existing SAS/MPKBY agents. The case of retired postal employees may be considered for the purpose.
3. Allow postmen staff to collect business on POSB Scheme on commission basis as given to SAS / MPKBY agents.
4. Take the matter with Ministry of Finance, Govt. of India for increasing rates of interests in various POSB Schemes.
5. Grant normal savings bank interest for completed months in case of premature closure of various Time Deposit accounts. Presently, no interest is paid if withdrawn prematurely after 6 months but before expiry of one year. Where a deposit in a 2 year, 3 year or 5 year account is withdrawn prematurely after the expiry of one year from the date of deposit, interest is paid for completed years but 2 % less than the rate specified for deposit of 1 year, 2 year and 3 year respectively as the case may be. Such conditions need to be withdrawn immediately.
6. Remove ceiling fixed for Single / Joint S B Accounts, MIS and SCSS Accounts. When the Govt. has already allowed fixed deposits under TD Accounts ( for 1,2,3 and 5 years ) and Savings Certificates ( for 6 years in case of NSC and 8 years 7 months in case of KVP ) without any limit, there may not be any logic for restricting the MIS Account for 6 years and SCSS for 5 years.
7. Print and supply the revised forms at once.
8. Print leaflets / brochures / literatures on various POSB schemes preferably carrying the salient features and comparative benefits of the same schemes provided by our competitors and give to post offices in huge quantity for circulation amongst the customers. This has been a great draw back in Orissa Circle. The SPMs / Postmasters are quite unable for instant supply of a literature to a needy customer due to scarcity of printing and supply. These are being printed in small quantity, perhaps annually once which does not satisfy the requirement. As experienced, the importance of advertising has not yet been felt seriously by the Department.
9. Supply Pass Book and Certificate covers for instant motivation.
10. Relax the norms for opening of S B and R D Accounts and for purchase of KVPs ( up to certain amount ) which are really meant for small savings. A poor man from lower income group, preferably a daily labourer, now finds it difficult for opening a R D Account of Rs10/- denomination and for purchase of a KVP of Rs.100/- denomination. Many customers from this group fail to produce identity and address proof. Special relaxation may be there for BPL card holders.
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