Presentation Transcript

1. Rural Marketing & Business Opportunities 1
2. Rural Post Office in India – The Strength Trust of the local people Intimate knowledge of people and locality Central role in village life Cost effective Experience of handling large sums of money
3. Rural Post Offices – Services Offered
4. 70% of population lives in 5.5 lakh villages 26 % below BPL(260 Million) 39% of credit needs met by money lenders and traders Tremendous Market Opportunities Population - 90 crs.(30 crs. in urban India) Per capita income grew in rural India exactly at the rate that it grew in urban India Rural India Overview
5. Market Opportunities in Rural India Demand for Financial Services > 50% of LICs business is in Rural India Bank Credit cards issued Kisan Credit Cards issued for farmers - 4.1 crores General credit & debit cards issued - 2.2 crs. Households with Bank Accounts Rural households - 4.2 crs. Urban households - 2.7 crs.
6. Demand for Retail Services Government to Citizen Services – Pensions, Scholarships, Births & Deaths Registration, Electoral Roll enrolment… E-Commerce - collecting orders/payments, delivery of goods Utility Bill Collection Services Rural Telephone Services Subscribers Base – 4 crores Generating 48 crs. bills per annum If DoP does 25% business @ Rs.5/bill – Rs.60 crs revenue Electricity Subscribers Total No. of Subscribers – 14 crores (Renewing India.org) Bills generated - 14 crs bills/month 25% bills distributed and collectedgets huge revenue
7. Postal Insurance -The Rural Market THE RURAL MARKET Poor 54% of the total population Number of Rural Insurable Poor - 200+million Annual Household Disposable Income-up to Rs. 90,000 Near Poor 41% of the total population Number of Rural Insurable Near Poor 200 million Annual Household Disposable Income Rs. 90,000-Rs.2,00,000 The poor & near poor own over 250 million mobiles! Middle Class Annual Household Disposable Income Rs. 2,00,000 - Rs. 5,00,000 4% of the total population Rural Insurable Middle Class - 15 -20 million Important to remember that India has Highest Household savings rate in the World
8. Harnessing the potential of India Posts Rural Network DDG (Rural Business) New Partnerships Increasing Focus on Rural Retail Services Rural Micro insurance – PLI Dte. Micro Finance – Fin. Services Mutual Funds – Fin. Services Social Security payments – RB Div. Logistic post services – BD Div. Technology Induction – Rural ICT, Tech. Div. GDS Training & Capacity Building Designing rural market relevant products & services
9. Branch Post Office – Achievements tobe proud of BPM as a Business Manager – Achievements to be proud of in rural post offices
10. Postal Insurance – National Micro Insurance Drive
11. Dissemination of Agricultural Information- Tie up with MCX Price information is made available at rural post offices Farmers place orders for agricultural products Supply to farmers
12. Consumer Price Index Data Collection 1181 villages covered Data on prices of about 300 items collected every month MIS is available to the Ministry of Statistics and Plan Implementation on web
13. Micro Credit and Loan Disbursement Microcredit Post Offices facilitate information of Self Help Groups (SHGs) Credit given from corpus from NABARD Recovery by Post Offices No default so far Fostering thrift habit Empowering vulnerable groups Loans Post Office procures loan applications Loan sanction and recovery by the bank
14. Mahatma Gandhi NREGS 4.5 croreSavings Bank accounts opened in 3 years Wages amounting to Rs 8800 crore disbursed in 2009-10 95,000 post offices involved in payments to wage earners 51% of total Mahatma Gandhi NREGS accounts are in post offices
15. Tripartite agreement in GoAP, DOP and AP Online Wage payments through Point of Transaction Device (POTD) at PO with biometric authentication. Provides required MIS reports to DOP & Govt. of AP Coverage – 2 districts – Nizamabad & Nalgonda Over 500 POs Enrolled wage seekers - > 5,00,000 Wages disbursed in one ear - > Rs.250 crs. Marching forward – > 4 lakhs Pension payments Pilot projects on to technology induction for NREGS wages disbursement – Andhra Pradesh
16. (MCC) SO HO A P Online Pilot in Nizamabad Division for NREGS Wage Disbursement Process 3 7 3 6 4 3 6 6 5 2 7 BO NREGS State Data Centre APOnline Data Centre 1 Muster Roll
17. Rural Post Offices – Physical to Digital Network Paradigm shift to become technology led organization Rural ICT solution Low power, battery operated device On-line mode - data exchange with the central server on real time basis Off-line mode - data storage and download in encrypted form for uploading to the central server Institutional last mile infrastructure to be created
18. Rural Post Offices – Physical to Digital Network 2012-13 As on Date All 27,360 departmental Post Offices to be computerized and networked 1,29,000 Rural Post Offices to be connected through mobile data devices. Multiple Channel ACCESS ( eg. Mobile , Web) 12,999 Computerized post offices 1318 Post Offices On Wide Area Network
19. Rural ICT Architecture Rural ICT Solution Overview Handheld Computers Net Book Devices Biometric Scanner Smartcard / Mag Stripe Reader and Writer Thermal Printer 2D Imager Mobile Phone
20. Rural ICT - Outcomes Business Enablement Layer: enables creation of new products and services Interaction Layer: provides customer interaction through multiple access channels such as Web, Call Centre, Retail (Post office, Point of Sale), Mobile, Kiosks, and Enterprise Desktop. Customers can obtain account information, transaction details and service offerings
21. Rural ICT - Outcomes Web Based Products and services such as e-commerce to be offered Fee collection and Data collection on behalf of service providers Transactions on behalf of banks/ Booking of train/bus tickets Bulk and corporate customers can exchange information directly with IT system of DOP Services in rural areas at par with urban locations through mobile banking, remittances, acceptance of credit/debit cards (Through magnetic/smart card reader in case of On-line connectivity, and if GPRS not available, then a solution using SMS →→ Business Houses and citizens can use network effectively for communication, banking, and service delivery needs
22. Minimize weakness - Over view of IT solution of India Post 2012-13 Customer Interaction Channels Web Portal (e-Com’erce) Rural ICT Solution Mobile Banking ATMs Call Centre India Post Data Warehouse Mail & Retail Operations Postal Banking Solution Postal Life Insurance Solution HRMS & Payroll Finance & Accounts MIS Reporting/ Business Intelligence/ IT Security Setting up IT Infrastructure – Data Centre/ Connectivity *Information & Communication Technology 22
23. CBS - Future State – Structure
24. India Post would be 3rd largest in CBS implementer in India
25. Reaching new heights 2012-13 Largest postal network – largest electronic postal network Financial Inclusion – NREGA, Insurance, Remittances Largest bank – Peoples Bank – CBS High Accessibility - high quality services Project Arrow
26. Envisioned Changes - Benefits Summary
27. Farmer Worker NREGA payments …….Accounts Panchayat, Block Office Family Family of Migrant Worker Receive MO Branch Post Office – Name of Village served by BO College Students Dairy, Industry BPM as a Business Manager – Products and Services of Indiapost Financial Services School Use Pin Code
28. What is your response ? Five responses to a challenge Avoid Survive Cope Manage HARNESS
29. Role of ASPs On the cutting edge Multiplicity of roles & responsibilities Unfolding opportunities Challenges Traditional & changing nature of job High Targets Increased monitoring Updating knowledge and skills
30. Harnessing the Potential Enormous opportunity to make a difference Need for planning and executing works Starting from the Strengths Strong Manpower base! Reflected trust and credibility Technology induction & new initiatives on the anvil What & How to do? Assessing the opportunities/scope Planning the agenda Consulting, Training & working with the Team Operationlising the plans
31. Exercise Trainer to give 20 minutes to trainee groups to think over best ways & means to harness business potential in Rural areas (BOs). One of the groups to present in 20 minutes before the class.
32. Thank You