Revenue Protection

1. Revenue Protection

2. Why Revenue Protection? • To increase revenue • To reduce loss • To become self-sufficient

3. Leakage of Revenue • Studies say that at least 5% of the every postal organization's revenue is lost to “Leakage” • Leakage is due to • Poor accounting (billing/invoicing/payment) • Lack of training and lack of fraud awareness to the staff • Loyalty of staff involved in mail acceptance and verification • Ignorance of rules by officials • Fraudulent procedure

4. Leakage due to………. • Absence of effective technologies • Under franked (short paid) mails • Tampering with postage meters (franking machine) • Stamp-related fraud • Counterfeit stamps • Illegal issues • Ineffective Spot Checks • Ineffective Supervisor Checks in transmission • Difficulty in measuring real leakage

5. Sources of Leakage of Revenue • Mails • Mailing facilities • SB/SC (in Post Offices) • PLI/RPLI (in Post Offices) • Other Agency Services • Miscellaneous services

6. Case Study - 1 • During the visit at one of the NSHs (say Mysore NSH), it was noticed that five speed post articles booked under BNPL scheme by some X booking office, addressed to Bahrain & London (UK) was received mis-sent, reported by the sorter. Because, X booking office is mapped with one of the ICHs, which is not mapped with Mysore NSH. • So, the articles are supposed to be directly dealt in the parent NSH. But the ICH which handled the article has sent them to Mysore NSH.

7. Case Study - 1 • Do you find revenue leakage in this case?

8. Case Study - 1 • Yes • There was leakage of revenue to a tune of around Rs. 4,500/- in just five speed post articles

9. How……This way….. • Reason for receipt of missent was found. Because, the articles were addressed to foreign destinations and pincode of one of the post office mapped with Mysore NSH was in the address. • Since it was booked under BNPL scheme, there was no prepayment of postage. So the X booking office was contacted. Postage accounted for the five speed post articles were sought and it was accounted as Rs. 39/- for each article. • As per the speed post rates, the postage for speed post to London is Rs. 1,073/- and that of to Bahrain is Rs. 764/-.

10. Observations • Staff Carelessness at booking office • May be intentional or may not be • Effective spot check • Not left simply, treating the articles as missent • Accounting was sought to find leakage of revenue • Non availability of effective tool to check the postage paid during spot check

11. Case Study - 2 • During a visit of Vigilance Squad to a delivery post office, • Some articles were picked for checking in detail • All categories of mails scrutinized • Two copies of NEWSPAPERS IN HINDI were also found

12. Case Study – 2 • Do you suspect any revenue leakage in this case? • What immediate actions do you propose?

13. Case Study – 2 – Revenue Leakage • Yes • There was leakage of revenue to a tune of around Rs. 1.45 Lakhs

14. Case Study - 2 • It was found • Newspaper was posted without valid license • It was ascertained from the Divisional Head Concerned • Divisional Head was asked to recover the amount from the Newspaper publisher • Or from the official at fault

15. Case Study – 2 – Immediate Actions • The wrapper may be collected back after delivery • Copy of the page where the registration numbers assigned to Newspapers are to be taken • Report along with the above collected materials to the Divisional Head Concerned through SRM / SSRM

16. Observations • Lack of awareness of procedures by Customer / Official at accepting office • May be intentional or may not be • Ignorance / Intention at delivery office • May be intentional or may not be • Effective spot check • Not left simply, after checking the postage paid on the article • Immediate reporting to the Divisional Head Concerned • Non availability of effecttivetool to check the validity of license during spot check

17. Taxation – A Review

18. Taxation Need for Taxation • Arrest huge leakage of revenue • Reduce deficit • Stop practice of postings without postage by customers

19. How to Tax ? • Minimum Tax Rs. 1/- • Single Deficiency in case of service mails Taxation is • For insufficiently paid or unpaid articles • For breach of conditions • Reporting in case of bulk mails and the mails presented at the counter (Eg. Parcels, RLs etc)

20. How to Tax ? • Double the deficiency if unpaid or insufficiently paid • In case of breach of condition

21. How to tax?

22. How to tax? *** Postage already paid extra, will not be taken in to account

23. Taxation • If taxed article is returned, sender should pay • If the sender does not pay, it will be recovered as a fine by any magistrate having jurisdiction where that person is residing based on request from Postal Authorities • The PMG may further direct that any other postal article, not being on [Government] service, addressed to that person shall be withheld from him until the sum so due is paid or recovered as aforesaid. Note :The Indian Post Office Act 1898(12)

24. Conditions for posting • Trainer to lead discussion about conditions for posting various types of mails

25. Modus operandi - general mails • Insufficient payment of postage • Use of used up & fake stamps • Non collection of Late fee • Private manufactured ILC and Post Cards not confirming prescribed size and thickness

26. Modus operandi - general mails… • Acknowledgements sent by couriers • Dispatching articles without defacing postage stamp • Miss-sending of letters

27. Modus operandi-Periodicals • Posting with bogus RNI number or without RNI number • Posting publication of less than 31 days as periodical (it can be presumed as bogus) • Sending periodicals more than one copy in single packet paying single copy postage

28. Modus operandi- RNP • Posting of Pamphlets, printed letters, appeals under RNP • Printing bogus registration number • Without registration • With registration number affixed with rubber stamp impression

29. Modus operandi- RNP… • Without renewal • With same number for different RNP • Different tariff for different POs • With enclosures • Posting the publication of more than 31 days under RNP • Without WPP number

30. Modus operandi- Printed Book • Posting magazines under Printed Book rate • With enclosures • Posting of Pamphlets, printed letters, appeals under printed book rate. • Posting Annual reports Souvenirs under printed book rate.

31. Modus operandi- BD Product • Posting SP/EPP without payment of postage • Booking SP with Registered acknowledgement I/O POD • Booking NBMS at BMS tariff

32. Modus operandi – Regd articles • Registered post without payment of postage • Articles booked in special journals without postage/ without correct postage • MPCM with “postage prepaid” option • Registered post with parcel postage • Deficiency in Registration fee and acknowledgement fee

33. Modus operandi – Regd articles • Foreign articles- customs duty & postal charges not realized • Non collection of redirection fee for parcels • Non collection of home delivery charges for parcels

34. Leakage of revenue in Mailing facility

35. Leakage of revenue- Mailing facilities • Post Boxes/Post Bags • Business Reply Systems • BNPL • Franking Machines • Money Order

36. Leakage of revenue in miscellaneous services

37. Leakage of revenue- Miscellaneous services • Non credit of amount realized from sale of old records • Advertisement on postal stationeries • Non credit of amount realized from sale of unserviceable articles • Non credit of amount realized from rent in respect of Inspection quarters • Non credit of amount realized from sale of garden products • Non credit of UCR • Excess payment of coolie charges • Improper payment of conveyance charges

38. Preventive Measures • Careful examination of mails received for delivery , posted for dispatch and received for sorting • By paying surprise visits • By surprise check of stamp advance to counters • Up dating rate lists

39. Preventive Measures… • Acceptance of RNP at counters only • Acceptance of Franked articles at counter only • Acceptance of bulk mails at counter only • Maintenance of required registered for posting of RNP and Franked articles.

40. What will we get ? • Huge revenue • Recurring revenue in case of RNP/Periodicals • Detection of frauds in bulk posting • Award/reward • Self satisfaction

41. Wel-come to Quiz

42. How many Registered number should be printed on periodical ? • One (RNI-New Delhi)

43. How many Registered numbers should be printed on RNP? • Two- (RNI-New Delhi and Postal Registration Number)

44. How many Registered number should be printed on RNP with WPP facility ? • Three (RNI-New Delhi, Postal Regn. And WPP number issued by RO/CO)

45. For RNP how many years the postal registration number is valid for ? • Three years

46. Who will renew the Postal Registration number of RNP ? • Divisional supdt.

47. Which are two best examples for Printed books for posting under concession rate ? • Text book & Story book

48. What Registration would RNI New Delhi give for periodicals? • Title registration

49. What are all coming under RNP category among Periodicals? • Daily, Weekly, Fortnightly & Monthly

50. What is the tariff for annual report weighing 70 gms? • Rs.7.00