Customer Attitude Towards Postal Savings Schemes

CUSTOMER ATTITUDE TOWARDS POSTAL SAVINGS SCHEMES

1.1 INTRODUCTION

Mobilization of domestic financial resources has remained a major concern in many developing countries. In India, domestic savings originate from three principal sectors namely the house hold sector (individual, non-corporate business, private), the private corporate sector (Joint stock companies, cooperative institutions

the

Public

sector

(central

and

state

government,

local

authorities).Household sector saving provides the bulk of national saving. Despite the variety of vehicles that are intended to mobilize and allocate financial resources, only very few offer strategies for meeting the needs of poor and lower income people. Rural people are facing an extremely risky environment when they save in the informal sector. Postal savings funds play a significant role in rural India. It provides numerous benefits to the investors. Post office saving bank is the largest savings institutions in the country and offering high returns than those given by scheduled banks.

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There are a number of attractive schemes, well designed to meet the individual requirements of different small savers. The major instruments of post office saving schemes enjoy tax benefits such as exemption of investment contribution or interest income from tax or both up to certain limits. The survey of NCAER on households finds that the investment in post offices and other guaranteed return schemes and plans gets minor part of total savings. The present study was carried out to analyze whether the Postal savings schemes have gained importance among the rural people or not. Many nations' post offices operated or continue to operate postal savings systems to provide depositors who do not have access to banks a safe, convenient method to save money and to promote saving among the poor.

1.2 REVIEW OF LITERATURE Rate cheer for postal savings NEW DELHI: Good news awaits investors in post office small savings schemes. The Centre is considering a hike in interest rates offered by these schemes to bring them on par with fixed deposit rates of commercial banks. Minister of state for communications Jyotira ditya Scindia and finance minister P Chidambaram are discussing the issue.


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Interest rates of post office small savings schemes range from 3.5% to 7%, depending upon the term, while banks offer about 8.5% interest on similar schemes.

Postal savings shrink on inflation, lower interest rates KOLKATA/SILIGURI: The government faces the challenge of holding investment rate from slipping further as small savings continued to erode amid lower rates and persistent high inflation , which prompted households to invest in gold . The latest data published by the Reserve Bank of India showed that outstanding small savings maintained with post offices have shrunk to 601,961 crore in December 2012, 1.5% lower than the year-ago position.... POST OFFICE SMALL SAVINGS INTEREST RATES CUT BY 0.1% NEW DELHI: Millions of small savers and PPF account holders will earn less on their post office savings schemes, with the government deciding to reduce interest rates on them marginally by 0.10%. The interest rate of Public Provident Fund (PPF) has been lowered from 8.8% to 8.7% with effect from April 1, 2013, said a finance ministry statement. However, the rates on savings deposit schemes and on fixed deposit of up to one year run by post offices has been kept unchanged at 4% and 8.2%, respectively.


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INTEREST RATES ON POST OFFICE SAVINGS SCHEME TO REMAIN FIXED TILL MATURITY New Delhi, Jan 4: The Government today said that the interest rates on post office savings scheme, except the PPF, will remain fixed throughout the term of the scheme. It clarified that the interest rate for such small savings will be declared on April 1 every year and will remain valid till the maturity of the scheme. However, in the case of Public Provident Fund (PPF), which is a 15-year scheme, interest rates would not remain fixed for the entire period. The annual interest accruals in the PPF account will depend upon the rate for that particular year, the Finance Ministry said. “The rate of interest on small savings schemes will be aligned every year with the rates of Government securities of similar maturity ... the rates are fixed and not floating so far as individual investments except PPF are concerned,” it said, while responding to media reports that the interest rates on all small savings schemes are floating.

1.3 NEED OF THE STUDY:


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In order to promote household savings, Govt. of India has established National Savings through Post Offices. The Post Office savings Bank is now the biggest bank serving the smallest man in the country and truly called the peoples Bank. It has a network of about 1, 52,000 branches doing savings bank throughout India out of which 1,30,000 branches are in rural sector serving the simple needs of rural population. I have selected this topics to know the different savings schemes offered by Davanagere Head Post Office to know the opinion of customers for there savings scheme offered by Davanagere Head Post Office.

1.4 OBJECTIVES OF THE STUDY: For the progress of any research, objectives are must. It shows us the direction with which the task can be accomplished. 1.

To make a brief study of history of postal system of India.

2.

To analysis the profile of the Davangere City Head Post Office.

3.

To make a brief study of various schemes and service provided by Post Office to Customers.

4.

To provide suggestion for the improvement of service if any.

5.

To study the problems connected with, the service provided by the Postal Savings Schemes.

1.5

SCOPE OF THE STUDY:


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The study is limited to Davangere city only and this report gives information in general, regarding the products and services provided by Postal Savings Schemes to the customers. The other services that are being rendering by the Post Office have not been covered in this study. 1.6

METHODOLOGY: The study is beside on both secondary and primary data. a) Primary data: A survey method is used to collected primary data for this purpose. A

questionnaire was prepared and administrated to be respondents in person. The simple random sampling method has been employed for selecting the samples i.e., the customers. The sample size of the survey consists of 50 customers. The statistical tool are employed here they are tables, charts, and graphs etc. The reason for selecting this method is to know the existing situation in the organization. And general survey will be conducted to know the awareness of Postal Savings Schemes in public b) Secondary data:


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Secondary data has been collected from the following sources. The secondary data is collected from various encyclopedias, books of postal, websites etc.

The main source of secondary data is the records maintained by the

organization of Postal Savings Schemes. 1.7

LIMITATIONS: Though the study was planned and executed with almost care, this project

contains certain limitations are which inherent in nature. There may be some errors due to the reason that the survey could not cover all the work life of people of Davangere city. However attempt has been made to make customer survey as realistic as possible. 1) The study is restricted to Davangere city only. 2) Time constraints is the important and major obstacle in collecting the required

information 3) Information obtained from the respondents is assumed to be accurate. 4) Most of the respondents are hesitated to give their opinion.

1.8 CHAPTER SCHEMES :


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CHAPTER-2 POST OFFICE PROFILE

3.1 2.1 INTRODUCTION: With the advent of the e-mail, SMS, and mobile telephone, letter writing has become passé. But as the mandate for the hard copy continues from the government, legal accounting and educational fraternity the ubiquitous post card refuses to die before the relentless a sought of wireless world. The art of letter writing still survives albeit barely, even as geography become history with the advent of the modern communication technology. SBC FIRST GRADE COLLEGE FOR WOMENS AND ATHINI P G CENTRE

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However, driven by recurrent deficits year after year, the pioneer in the world of letters, Indian post, could soon become a relic of its post. The department has shown a deficit of the Rs. 1,381 crore in 2004-05 on the total turn over of Rs. 10,395 crore the budgetary deficit grew by 0.48% if this trend continues, the lonely postmen trading the inaccessible forest s of north east, the Thar desert of Rajasthan and the desolate landscape of Ladakh Might become a thing of the post.

• Biggest Postal Network: The India post continues to have biggest postal network in the world. From around 23,344 post offices mainly in cities at the time of independence, the numbers has growth seven fold to 1,55,516 today, and spread has been rural centric with 1,25,148 branch Post Offices extending reach to the vast hinter land. Today the country has one post office for every 21,33 SQKM of area, rendering service to 6,615 people.

2.2 ESTABLISHMENT: In 1774 it was started as postal system in India. The head quarter is situated in New Delhi, India. Smt. Padmini Gopinath is the director general. 4, 66,903 employees are working in the Indian post office. As of 31 March 2011, the Indian Postal Service had 1, 54,866 post offices, of which 1,39,040 (89.78 percent) were in rural areas and 15,826 (10.22 percent) in urban areas. It had 25,464 departmental POs and 1, 29,402 ED BPOs. The postal service is under the Department of Posts, which is part of the Ministry of Communications and Information Technology of the Government of India. The apex body of the department is the Postal Service Board, consisting of a chair and six members. The six board members govern personnel, operations, technology, postal life insurance, human-resource development (HRD) and planning. The joint secretary and financial adviser is also a permanent invitee.


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2.3 HISTORY AND BACKGROUND OF POST OFFICE: Type Industry Founded Headquarters Key people Services Employees Website

Government of India Courier 1 April 1774 New Delhi, Delhi, India Manjula Prashar, Director General Postal system 4,66,903 (As of 31 March 2011) www.indiapost.gov.in

No other institution ever has come closer to human lives as the Post Office. Post office reaches every nook and corner of the country. This is one of the reasons why many of the Government, non-government organizations, when faced with difficulties of reaching the largest possible number of people, have thought of utilizing the agency of the Post Office for the purpose.

The Indian Post Office was recognized as a separate organization of national SBC FIRST GRADE COLLEGE FOR WOMENS AND ATHINI P G CENTRE

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importance and was placed, for the first time, under the unitary control of a Director General of the Post Office in India on October 01, 1854. The Indian Postal System is not carved out of a single rock. The postal systems of more than 650 princely States, the district postal systems and Zamindari Dak were merged with the main British postal system. The bonding of the fragments has been so fine that one could be tempted to think that the institution is monolithic.

Lord Clive first established the postal system in the country in 1766. Later on Warren Hastings developed the system by establishing Calcutta Grand Post Office (GPO) under a Postmaster General in 1774. In other Presidencies of Madras and Bombay, it came into existence in 1786 and 1793. The Act of 1837 first regulated the Post Office on a uniform basis to unite the organization throughout the three Presidencies into one all India Service. The Post Office Act of 1854, however, reformed the entire fabric of the postal system with placing the Post Office of India on the present administrative footings on October 01, 1854.

In 1854, both the Posts and Telegraph departments were born. From the beginning, the set up was run on welfare lines. Profit was not the motto. In the second half of the 19th century the Government declared that so long as the Department played its own expenses, nothing more was desired. The same trend continued even in the 20th century. The operations of post office and telegraph developed side by side. On the eve of the World War I, in 1914, both the departments were amalgamated.

 Integration Of Services The financial and political integration of the Indian States made it necessary and inevitable that the Government of India should pursue the policy of integration of the postal system of the Indian States with the larger postal system. There were States, which SBC FIRST GRADE COLLEGE FOR WOMENS AND ATHINI P G CENTRE

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maintained district and independent postal organization with local postage stamps of their own. The letterboxes of these states were painted in green colour to distinguish them from the Indian Post Office letterboxes, which were painted red. In 1908, it was found that out of the 652 native states in India, 635 States had cast their lot with the Indian Post Office. Only 15 States remained out; the outstanding ones being Hyderabad, Gwalior, Jaipur and Travnacore. A major reorganization of the Posts and Telegraph (P&T) Department took place in 1925. The accounts of the P & T were reconstituted to examine the fiscal profile of the Department. The attempt was to find out the extent to which it was imposing a burden on the tax payers or bringing in revenue to the Exchequer, how far each of the four constituent branches of the department, the Postal, Telegraph, Telephone and Wireless were contributing towards the result.

 Multifarious Activities Indian Postal service has not only confined to its main task of delivering letters and being an effective mode of communication. It might appear surprising but the Post office was maintaining the dak (post) bunglows and sarais in those early days. For well over three decades from 1830s, the Post Office also facilitated road journey of the passengers. A traveller could book his seat in any palki, boat, horse, coach and cart carrying mails and parcels on payment to the post office a fixed amount in advance and take rest on wayside dak chowkee, later on known as dak bungalow. During the plague epidemic in the late 19th century, the Post Office was assigned the task of selling quinine packets. It is a country of joint families and small incomes where millions of rupees have to be sent in the shape of small sums. The money transactions were carried out through the agency of the 321 Government treasuries, SBC FIRST GRADE COLLEGE FOR WOMENS AND ATHINI P G CENTRE

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located in district headquarters. In 1880, the extensive agency at the command of the 5090 Post Offices was handed over the transfer of small sums by way of Money Order, thereby obviating the difficulties of travelling to the district headquarters and identification of the payee. In 1884, Postal Life Insurance was born, to insure the lives of ‘native’ postal employees other than those in high positions since the insurance companies operating in India were unwilling to insure common natives.

 Freedom Struggle When the nation went through turbulent times, the post office also suffered. It witnessed arson and loot after 1857. A Deputy Postmaster and an overseer were killed, a runner wounded and a number of Post Offices in Bihar, UP, North West Frontier Provinces (NWFP) were looted. In the NWFP and Oudh practically all communication lines were closed and quite a number of post offices could not be reopened for a whole year even after the violence had subsided. Postal strikes of 1920, which lasted for about five months, caused complete dislocation of the postal services. In the 1942 Quit India movement, a number of Post Offices and letterboxes were set on fire and mails could only be exchanged with great difficulty. It led to dislocation of postal lines in many sectors. 

Milestones Over the years evolution of mail delivery has grown from foot to Speed-post and

e-post. Post Card was introduced in 1879 while Value Payable Parcel (VPP), Parcel and Insurance were brought into being in 1877. Indian Postal Order had its origin in 1930. For faster delivery, Postal Index Number (PIN) Code was introduced in 1972. In view of fast emerging changes and scenario Postal and Telecom Departments were segregated in 1985. Speed-Post was launched in 1986 while keeping pace with the changing needs of SBC FIRST GRADE COLLEGE FOR WOMENS AND ATHINI P G CENTRE

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the times, Metro/Rajdhani/Business Channels, EPS and Money Order via VSAT were introduced in 1994.

 Postal Runner The postal runner finds a prominent place in the folklore in every traditional society. In India one comes across stories and poems on it in almost every regional languages. Earlier there was provision of providing a drummer to each runner while passing through forest tracts. In dangerous tracts an escort of two torchbearers and two archers were also supplied after nightfall. There were numerous instances of runners being carried away by tigers, drowned in flooded rivers, bitten by venomous snakes, buried in avalanches or murdered by robbers. The Director of Public Information, Government of India, informed the Parliament in 1923 that during the year 1921-22, there were 57 cases in which the mails were plundered by highway robbers as compared with 36 in the preceding year. Seven out of 457 cases were attended with loss of life and in 13 instances the mail carriers were wounded.

 Integrating Factor The post office has helped bind the nation together, support the growth of commerce and ensure a free flow of ideas and information. The evolution of mail delivery grew from foot to horseback, stagecoach, railroad, automobile and airplane. The character, volume and transportation of mail have changed over the years. Today, emphasis is on postal mechanization and automation, which have been undertaken to improve productivity and quality and provide access to quality postal services.


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Postal services have social and economic functions that clearly go beyond a simple business rationale. This is especially true in the developing world. A reliable postal system is a critical component of the modern information and distribution infrastructure and an important catalyst for social and economic development and poverty reduction.

2.4 MISSION AND VISION: To provide high quality mail, parcel and related in India and throughout the world; to be recognized as efficient and excellent organization exceeding the expectations of the customers, employees and the society, to perform the task by: • Total dedication to understanding and fulfilling customer’s needs. • Total devotion to providing efficient and reliable services which customers consider to be value for money. • Total commitment to providing challenging and rewarding career for every employee. • Total recognition of the responsibilities as a part of the social, industrial and commercial life of the country. • Total enthusiasm to be forward looking and innovation in all areas.

2.5 AIMS AND OBJECTIVES OF THE ORGANISATION: The business development Directorate was set up with effect from

1-2-1996 to

ensure focused management of value added services. The directorate is responsible to;


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• Administrate the expansion and promotion of the existing value added service. • Plan and introduce value added products and services. • Evaluate and produce regulations and guidelines for their retailing and networking. • Study market, undertake market testing and product improvements. • Evaluate marketing strategies, alliance and co-operation. • Organize and sponsor the business training for personnel. • Monitor and review the growth of value added product and services, and • Explore the scope of commercial utilization of idle resources of the department.


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CHAPTER 3 DAVANAGERE HEAD POST OFFICE PROFILE


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3.1

YEAR OF ESTABLISHMENT:

In 1951 it was started as Sub-office of Tumkur division. Laterly in 1973 it has established as Head Post Office under the Chitradurga Division. Savings Schemes are adopted from initial. Total employees of Davangere Head Post Office are 77 under different authority and job.

3.2

AIMS AND OBJECTIVES OF THE ORGANISATION: Prior to independence National Savings, which is one of the most common

means of savings by the people of the country was also serving as a resources SBC FIRST GRADE COLLEGE FOR WOMENS AND ATHINI P G CENTRE

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mobilization for collecting money for War purpose by the British Govt. has undergone a radical change and became the biggest Bank serving common people. To cater the simple need of savings by the villagers and urban areas the initial deposit has been kept as low as Rs. 50 and subsequent deposit is as low as Rs. 5.00 so that any me and women both literate and illiterate can avail the banking facility at the village level.  Objectives:  To make aware of the people regarding the benefit of thrift.  Assess common peoples need for savings  Mop up savings for Nation building. Instead of browning from foreign fund, it is collected from the Citizen. It is not a profit earning organization it is a welfare organization serving common people having a social objective. i.e. to strengthen the economic condition of the people.

3.3

MISSION & VISION: The small savings organization makes attempt to make the savings

movement as a mass movement through various means, to increase domestic


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savings, which ultimately strengthen the country’s economy and teach the people the importance of savings. The instrument floated by the National Savings which cater the need of people of different economic status. The details of the schemes are furnished below. • Total dedication to understanding and fulfilling customer needs. • Total devotion to provide efficient and reliable service which customer considers being value for money. • Total enthusiasm to be forward looking and innovative in all areas.

3.4

TYPES OF POSTAL FACILITIES: Postal operations at the Post Office encompass the entire gamut of basic

postal services which interalia include: • Sale of stamps and stationery • Booking of registered articles • Booking of insured articles • Booking of value payable articles. • Remittance of money through money order and postal orders • Booking of parcels


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3.5

NON-POSTAL SERVICES: The Post office has also traditionally served as a financial institution for

millions of people in rural India. Currently these are some of the activities being supported. • Public Provident Fund • National Savings Certificate • Savings Bank Account • Monthly Income Scheme • Recurring Deposit Account • Post boxes for mail receipt

3.6 ORGANIZATION STRUCTURE OF DAVANGERE HEAD POST OFFICE:


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3.7

SAVINGS

SCHEMES

OFFERED

TO

CUSTOMER

DAVANAGERE HEAD POST OFFICE


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BY


INTRODUCTION Post Office Savings Bank-included in the Union List vide item No. 39 of Seventh Schedule of the Constitution of India. Various Schemes framed by the Central Government under: Government Savings Bank Act, 1873, Government Savings Certificates Act, 1959, Public Provident Fund Act, 1968. Two non-statutory schemes- introduced through executive orders. OBJECTIVE: Small savings schemes are designed to provide safe & attractive investment options to the public and at the same time to mobilize resources for development. OPERATING AGENCIES: These schemes are operated through about 1.54 Lakh post offices throughout the country. Public Provident Fund Scheme is also operated through about 8000 branches of public sector banks in addition to the post offices. Deposit Schemes for Retiring Employees are operated through selected branches of public sector banks only. SBC FIRST GRADE COLLEGE FOR WOMENS AND ATHINI P G CENTRE

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PROMOTION: National Savings Organisation (NSO) is responsible for national level promotion of these schemes through publicity campaigns and advertisements in audio, video as well as print media. Through a large network of over 5 lakh small savings agents working under different Categories. Standardised Agency System (SAS), Mahila Pradhan Kshetriya Bachat Yojana (MPKBY), Public Provident Fund Agency Scheme, Payroll Savings Groups, School Savings Banks (Sanchayikas) in addition, the Extra Departmental Branch Postmasters (EDBPMs) also help in mobilizing savings, especially in rural and remote / far flung areas. INSTITUTIONAL INVESTMENT IN SMALL SAVINGS SCHEMES: These schemes being primarily meant for small urban and rural investors; institutions are not eligible to invest in major small savings schemes. N.R.Is’ INVESTMENT IN SMALL SAVINGS SCHEMES :


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The Non-Resident Indians (NRIs.) are not eligible to invest in small savings schemes including Public Provident Fund (PPF) and Deposit Schemes For Retiring Employees.



SMALL SAVINGS SCHEMES :

(a) Savings Account: Savings Bank is one of major agency functions of the department of Posts. The schemes and the rules relating to them are formulated by the Ministry of Finance (Department of Economic Affairs), Govt. of India. The collections under Post Office Savings Bank Account given us long term loan to the respective State Government for development activities. The investors of Post Office Savings Bank, thus become partners in the Nation building as well.

 Features: 1)

Savings Bank account may be opened by an Adult in his/her individual capacity or 2 or 3 Adults jointly, a Minor above 10 years of age, a guardian on behalf of a minor, by pensioners.

2)

The Minimum balance must be Rs. 50/- for ordinary account and Rs. 500/for cheque Account.


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3)

The maximum balance cannot exceed Rs. 1,00,000/- in case of Single Account and Rs. 2,0,000/- in case of Joint Account.

4)

Rate of interest of 3.5% per annum.

5)

A Public Account may be opened by an Association or Institution. The account carries an interest of 3%

6)

Security Deposit Account may be opened by an agent who is required to deposit security in his capacity etc., The account carries an interest of 2%.

7)

Cheque facility is available.

8)

Cheques are accepted by all banks.

9)

Nomination facility is available.

10)

Any number of accounts can be opened limited to one per post office.

Rate of Interest


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Type of Account

Rate of Interest per annum

Single Account

6.5%

5.5%

Pension Account

7.5%

8.5%

Joint Account

5.5%

6.5%

Sanchayika

6.5%

6.5%

Account (b)

Time Depoist Accout (TD) : In Time Deposit Account, the depositor makes one lump sum deposit of

Rs. 200/- or in multiples of Rs. 200/- for a fixed term of 1 year, 2 years, 3 years or 5 years. The interest is paid once in a year at the rate prescribed on completion of the period. The deposit amount is repaid premature closure is permitted after 6 moths and within year and no interest will be paid procedural rules are as for Savings Account.


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 Features :  Any individual (a single adult or two adults jointly) can open an account.  The term of deposit shall be 1 year, 2 years, 3 years or 5 years.  There is no limit for deposit.  Interest is payable annually but calculated quarterly.  Any number of accounts can be opened.  An account on maturity may be extended for a future period 1 to 5 years.  The account can be pledged as security.  Post maturity interest shall be allowed for a maximum period 2 years at savings account rate.


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Rate of Interest

Period during which opened From To

Rate of interest per annum 1 Year

2 Years

3 Years

5 Years

01-01-2009

14-01-2009

9%

10%

11%

11.5%

15-01-2010

28-02-2010

8%

9%

10%

10.5%

01-03-2011

28-02-2011

7.5%

8%

9%

9%

01-03-2012

28-02-2012

7.25%

7.5%

8.25%

8.25%

01-03-2013

towards

6.25%

6.5%

7.25%

7.5%


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c)

Recurring Deposit (RD): Recurring Deposit accounts provide for monthly deposit maturing at 5 years.

The depositor opens RD account with a definite denomination, goes on depositing every month for a period of 5 years and gets a sizeable amount at the end of the team. Since the deposit is ‘recurring’ is mature every month, the scheme is named as Recurring Deposit. Premature closure is permitted after one year on SB rate of interest. This scheme is very popular among salaried people.

 Features: 1)

May be opened by single adult, guardian on behalf of a minor or minor of age 10 years or more.

2)

Account may be opened i the denomination of multiples of Rs. 5/- with minimum of Rs. 10/-.

3)

Any number of accounts may be opened.

4)

There is no maximum limit of deposit.

5)

Deposit may be made on any working date in the month.


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6)

The accounts will be treated as discontinued when the number of defaults exceed four.

7)

Defaults can be paid within two months.

8)

The account on maturity can be extended for a future term of 5 year with us without deposit.

9)

Post maturity interest is paid prescribed rate.

10) Part withdrawal facility available.

Maturity value from time to time Period during which opened From 15-01-2009

To 28-02-2010

Amount repayable for an account of Rs. 10 denomination Rs. 789.60

01-03-2010

28-02-2011

758.53

01.03.2011

28-02-2012

748.49

01-03-2013

onwards

728.90


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d)

Monthly Income Scheme (MIS) : In the Monthly Income Scheme accounts depositor make one lump sum

deposit for a period of 6 years of Rs. 1,000/- as multiples of Rs. 1,000. The depositor gets monthly interest from the very next month of the deposit. After maturity, he will get back the deposit amount with an additional 10% as bonus. Premature closure is permitted after one year. The procedural rules are as for savings accounts. There is no concession for Income Tax.

 Features: 1)

An account may be opened by an individual adult 2 or 3 adults jointly or a guardian on behalf of a minor.

2)

Minimum deposit on account must be Rs. 1,000/-.

3)

Maximum deposit on single acccount is Rs. 3 lakhs and in a joint account it is Rs. 6 lakhs.

4)

Rate of interest 8%.


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5)

10% bonus on maturity. (withdrawn w.e.f. 13th Feb 2006)

6)

Auto credit facility to SB account.

7)

Maturity period – Six years.

8)

Income by means of interest upto Rs. 12,000/- is exempted for payment of Income Tax under section 80L of IT Act.

9)

e)

Safe and sure way to get a regular monthly income.

Public Provident Fund Scheme (PPF): Public Provident Fund Scheme is a statutory scheme. Under this scheme

self-employed person, like doctors, agriculturists, lawyers, merchants can avail the facility of Provident fund with effect from 1.7.1968. P.P.F. account can be opened in the State Bank of India and its subsidiaries. Head Post Office and certain authorized branches of National Banks and such Post Office which are authorized to open PPF account by head of circles regional PMG.


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 Features: 1)

The account may be opened by individual guardian on behalf of minor.

2)

The account carries an interest at the rate of 8% per annum.

3)

Investment up to Rs. 70,000/- per annum qualified for IT rebate under section 80 C of IT Act.

4)

A minimum deposit of Rs. 500/- is compulsory in a financial year.

5)

12 deposits can be made in a year.

6)

Deposit by cheque /cash including outstation cheques may be opened.

7)

Account will be treated as discontinued if the minimum deposit of Rs. 500/- is not made in financial year.

8)

Surcharge at the rate of Rs. 50/- will be levied on discontinued accounts.

9)

Deposits made on behalf of wife or minor children will be treated as deposit made by the investor himself.

10)

Only one account, either in Post Office or in Bank only may be opened.

f) Senior Citizens Savings Scheme (SCSS) :


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Any person who is of 60 years & above person who has attained the age of 55 years or more but less than 60 years who has retired under VRS on the date of opening the account. He can open the account within three months from the date of retirement.

Person should attach the certificate along with application for

opening the accounts from the employee indicating the fact of retirement under such VRS retirement benefits, employment held long the with period of such employment.

 Features: 1)

NRI and HUF cannot open the account

2)

Joint account can be opened only with Spouse.

3)

Depositor should produce certificate for age proof, PAN and two photographs while opening the accounts.

4)

Deposit can be made by cash or cheque if the amount of deposit is more than one lakh deposit should be made only by cheque.

5)

Depositor may operate more than one account in multiples of Rs. 1,000/subject to the condition that the balance in all the accounts taken together shall not exceed the maximum limit Rs. 15 lakhs. Not more than one account opened in the same Post Office in the same calender month.


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6) The account carries interest of 9% per annum. Interest shall be payable quarterly on March 31, June 30, September 30 and December 31, unclaimed interest will not earn any interest Rs. 2,250/- will be paid at the end of each quarter on a deposit of Rs. 1,00,000/-. 7) Interest can be automatically credited to SB account if the SB account is also opened in the same Post office.

Senior Citizens Saving Scheme Interest Table showing the amount of interest to be paid for complete quarter at the rate of 9 percent.


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Amount of Deposit Interest per Quarter (Rs.)

 a)

Interest per quarter amount of deposit (Rs.)

Amout of deposit Interest per quarter (Rs.)

1,000

22.50

30,000

675.00

5,00,000

11,250.00

2,000

45.00

40,000

900.00

6,00,000

13,500.00

3,000

67.50

50,000

1,125.00

7,00,000

15,750.00

4,000

90.00

60,000

1,350.00

8,00,000

18,000.00

5,000

112.50

70,000

1,575.00

9,00,000

20,250.00

6,000

135.00

80,000

1,800.00

10,00,000

22,500.00

7,000

157.50

90,000

2,025.00

11,00,000

24,750.00

8,000

180.00

1,00,000

2,250.00

12,00,000

27,000.00

9,000

202.50

2,00,000

4,500.00

13,00,000

29,250.00

10,000

225.00

3,00,000

6,750.00

14,00,000

31,500.00

20,000

450.00

4,00,000

9,000.00

15,00,000

33,750.00

CASH CERTIFICATES : National Savings Certificate (NSC): NSCs are encashable only on maturity. As the name it indicates. The

period of maturity is 6 years. The amount payable to the investor is printed on the backside of NSC. One of the cardinal features of NSC is that the investment made under these qualities for rebate of Income Tax under Section 88. Even the interest earned every year is deemed have been reinvested and thus qualifies for Tax rebate.


Page | 37


 Features: 1. Scheme specially designed for Government employees, businessmen and

other salaried classes who are IT assesses. 2. No maximum limit for investment. 3. No tax deduction at source. 4. Certificates can be kept as collateral security to get loan from banks.

Investment up to Rs. 1,00,000/- per annum qualifies for IT rebate under section 80C of IT Act. 5. Trust and HUF cannot invest. Interest is compounded 6 month. 6. The following interest accures on a certificate of Rs. 1,000/0 denomination

after the period mentioned. 7. The interest occuring annually deemed to be reinvested will also qualify for

Tax rebate under section 88 of IT Act. 8. Such interest is deductable under Section 80-L of IT Act. 9. Loan can be taken from Banks on security of the certificates.

b)

Kissan Viakas Patra (KVP) :


Page | 38


Kissan Vikas Patra are like the NSC, but there is no Income Tax Concession for the investment made and also there is provision for premature encashment after the specified period. The amount invested doubles on expiry of maturity period. Procedures for issue, encashment, pledging etc., are as for NSC except to the extent stated herein.

 Features: 1.

The certificate may be purchased by an adult for himself or on behalf of a minor or to a minor.

2.

The certificates can also be purchased jointly by two adults or a trust.

3.

The certificates are available in the denominations of Rs. 100/-, 500/-, 1,000/-, 5,000/- and 10,000/- in all Post offices and Rs. 50,000/- in all head Post Office and selected sub Post Office.

4.

There is no limit on investments.

5.

Investment doubles in 8 years 7 months.

6.

NRIs & HUF not eligible.


Page | 39


7.

Nomination facility is available.

8.

Post maturity interest is also admissible at the rate applicable from time to time (at present 3.5%).

9.

Interest earned will be entitled to exemption under section 80 of IT Act.


Page | 40


CHAPTER 4 ANALYSIS OF SURVEY FINDINGS

 CUSTOMER SURVEY ANALYSIS : Customer opinion is very valuable in each and every market, he is just like an umpire, customer satisfaction or non-satisfaction should be taken into consideration through customer survey. 50 respondents were selected random basis for conducting the survey. The selection of customers for posing the questionnaire was covering a wide range with different standards on the basis of service availed by the customers. They represent Government Employee, Student, Business, Professional, Agriculturist and others.

The information was collected by the issue of

questionnaires, while surveying I came to know many suggestions that the customers wanted to give and their opinion regarding different customer services by Postal Savings Schemes.

All their suggestions and opinions towards

customer service have been considered. This type of survey analysis is helpful to understand the customer’s income group, occupation, preference and expenditure per month on postal services and other opinion about the Savings Schemes. However, the customer survey analysis is limited to Davangere City only. SBC FIRST GRADE COLLEGE FOR WOMENS AND ATHINI P G CENTRE

Page | 41


Following are the analysis of Survey findings: 1.

Types of Customers:

Table – 4.1 : Table showing Classification of customer on the basis of Gender Gender

Percentage (%)

Male

No. of Respondents 28

Female

22

44

Total

50

100

56

Source: Survey Data. Graph showing Classification of customer on the basis of Gender

44%

56%

Male

Female


Page | 42


Source: Table 4.1 This survey revealed that out of 50 respondents, 56% respondents are Male and remaining 44% are Female. 2.

Age of Customers: Table –4.2: Table showing Age of the Respondents Age Group

No. of Respondents

Percentage (%)

Below 20

4

8

20-30

6

12

30-40

12

24

40-50

18

36

Above 50

10

20

Total

50

100

Source: Survey Data. Graph showing Age of the Respondents


Page | 43


36%

40 35 30

24% 20%

25 20 15

Below 20 20-30 30-40

12%

40-50

8%

Above 50

10 5 0

Below 20

20-30

30-40

40-50

Above 50

Source: Table 4.2 The above table shows that out of 50 respondents, 8% respondents are below 20 years age, 12% are in age group of 20-30, 24% between are in the age group of 30-40, 36% are in age group of 40-50 and remaining 20% are aged above 50. The most of the respondents falls under the age group 40-50.

3.

Marital Status of Respondents:


Page | 44


Table – 4.3 :

Table showing Classification of marital status

Marital Status

No. of Respondents

Percentage (%)

Married

42

84

Un married

08

16

Total

25

100

Source: Survey Data. Graph showing Classification of marital status

16%

84%

Married Un married

Source: Table 4.3


Page | 45


Table 3 shows that out of 50 respondents, 84% of respondents are married and the remaining 16% of respondents are unmarried. Most of the respondents are married. 4.

Occupation of Respondents : Table – 4.4 :

Table showing Occupation of Respondents

Type of Occupation

No. of Respondents

Percentage (%)

Govt. Employee

6

12

Student

8

16

Business

8

16

Professional

12

24

Agriculturist Other

2 14

4 28

Total

50

100

Source: Survey Data. Graph showing Occupation of Respondents


Page | 46


16% 12%

28%

24 % 16%

Percentage to Total

th er O

St ud en t

Bu si ne ss Pr of es si on al Ag ric ul tu ris t

G

ov t. Em

pl oy ee

4%

Source: Table 4.4 The above table shows the out of 50 respondents 12% Govt. Employees, 16% are Student, 16% are business men, 24% are professional, 4% are Agriculturist and remaining 28% are engaged in other activities.


Page | 47


5.

Educational Qualification of Respondents:

Table – 4.5 :

Table showing Educational qualification of the Respondents

Educational Qualification

No. of Respondents

Percentage (%)

S.S.L.C.

6

12

Graduate

24

48

P.U.C.

17

34

Under graduate

3

6

Total

50

100

Source: Survey Data. Graph showing Educational qualification of the Respondents

12%

Under grduate

34%

P.U.C.

48%

Graduate 6%

S.S.L.C.

0 S.S.L.C.

10 Graduate

20 P.U.C.

30

40

50

Under grduate


Page | 48


Source: Table 4.5 About table shows the out of 50 respondents 12% Respondents have done S.S.L.C., 48% are Graduate, 34% have passed P.U.C. & the remaining 6% are Degree holders. 6.

Monthly Income :

Table – 4.6 :

Table showing Monthly income of the Respondents

Monthly Income

No. of Respondents

Percentage (%)

Below 5000

12

24

Rs. 5000-10000

18

36

Rs. 10000-15000

12

24

15000-20000

8

16

Total

50

100

Source: Survey Data. Graph showing Monthly income of the Respondents


Page | 49


16%

24% Below 5000 Rs. 5000-10000

24%

Rs. 10000-15000 15000-20000 36%

Source: Table 4.6 About table shows the out of 50 respondents 24% respondents monthly income is less than Rs. 5000, 36 % do earn a monthly income of Rs. 5000-10000, 24% respondents income is between Rs. 10,000 to 15,000 and the remaining 16% respondent monthly income is Rs. 15,000 to 20,000.


Page | 50


7.

Have you heard Postal Saving Schemes? Table – 4.7 :

Table showing Response from the Respondents regarding Postal Saving Schemes

Response

No. of Respondents

Percentage (%)

Yes

50

100

No

0

0

Total

50

100

Source: Survey Data. Graph showing Response from the Respondents regarding Postal Saving Schemes

100 80 60

Yes

40

No

20 0

Yes

No


Page | 51


Source: Table 4.7 The survey reveal that all the 50 respondent are aware of Postal Savings Scheme in Davangere City. 8.

How much you save monthly Table – 4.8:

Table showing monthly save income

Awareness

No. of Respondents

Percentage (%)

Below 5000

28

56

10000-15000 15000-20000

2

4

18

36

Above 20000

02

4

Total

50

100

Source: Survey Data. Graph showing monthly save income


Page | 52


4

Above 20000

36

15000-20000

4

10000-15000

56

Below 5000

0

10

20

30

40

50

60

70

Source: Table 4.8 The above table shows that 56% respondents are save the income of Below 5000, 4% respondents are 10000-15000, 36% respondents are save between 15000-20000 and the remaining 4% respondents monthly save is Rs. Above 20000.


Page | 53


9.

Awareness of Postal Savings Schemes through different media:

Table – 4.9 :

Table showing Postal Savings Schemes through

different media Media Awareness

No. of Respondents

Percentage (%)

News Paper

26

52

Magazine Television

14

28

6

12

Others

4

8

Total

50

100

Source: Survey Data. Graph showing Postal Savings Schemes through different media

52

28 12

News Paper

8

Percentage to Total

Magazine Television Others

News Paper Magazine Television Others


Page | 54


Source: Table 4.9 Most of the respondents were come to know about Postal Savings Schemes by News Paper 52%, Magazine 28%, Television 12% and remaining 8% are from Others. 10.

The Postal Savings Schemes preferred by the respondents:

Table – 4.10 : Table showing Postal Savings Schemes preferred by the respondents Types of Schemes


Percentage (%)

Recurring Deposit Account

10

20

National Saving Certificates

10

20

Public Provident Fund

2

4

Senior Citizen Scheme

6

12

Time Deposit Account

2

4

Total

50

100

Savings Bank Account

40

Source: Survey Data.


Page | 55


Graph showing Postal Savings Schemes preferred by the respondents

40

40 35 30 25 20 15 10 5 0

S

gs in v a

20

20 12 4

n Ba R

e

k

Ac

r cu

c

n ou

g rin

D

t

ep

N

a

i os

tA

l na o ti

c

...

vi Sa

ng

C

b Pu

er

lic

t

.. if .

Pr

ov

i

n de

tF

o ni e S

4 Percentage to Total

d un

it i rC

ze

n

h Sc

m Ti

e

D

em

e

i os p e

t

co Ac

u

nt

Source: Table 4.10 The Survey revealed that out of 50 respondents,40% of the respondents liked SB Accounts.

20% preferred recurring Deposit

Account, 20% liked National Saving Certificates 4 % preferred public provident fund, 12% liked senior citizen scheme and the remaining 4% preferred Time Deposit Accounts.


Page | 56


Table – 5.11 : Table showing

Factor influencing public towards

Postal Savings Scheme Factor Influenced


Percentage (%)

Advertisement

4

8

Post Office

26

52

Other

0

0

Total

50

100

Agent

40

Source: Survey Data. Graph showing Factor influencing public towards Postal Savings Scheme

60 50

52% Agent

40%

40 Advertisemet

30 20

8%

10 0

0% Agent

Advertisemet

Post Office

Other


Post Office

Other

Page | 57


Source: Table 4.11 The Survey revealed that out of 50 respondents 40% respondents are influenced by Agent, 52% influenced by Post Office and remaining 8% motivated by Advertisement. Table – 4.12 : Table showing Period of Postal Saving Schemes Need


Percentage (%)

Occasional

22

44

Total

50

100

Regular

56

Source: Survey Data. Graph showing Period of Postal Saving Schemes


Page | 58


PIE CHART SHOWING PERIOD OF POSTAL SAVINGS SCHEMES

44%

56%

Regular

Occassional

Source: Table 4.12 About table shows the out of 50 respondents, 56% prefer regular schemes and the remaining 44% demands occasional schemes.

Table – 4.13 : Table showing Reasons for preferring Postal Savings Schemes Reasons

No. of Respondents

Percentage (%)

Fund to meet future expenditure

28

56

To availing Income Tax benefits

20

40


Page | 59


Pressure of Agents

2

4

Others

0

0

Total

50

100

Source: Survey Data. Graph showing Reasons for preferring Postal Savings Schemes

60

56%

50

Percentage to Total

40%

40 30 20 4%

10 0

Fund to To availing Pressure of meet future Income Tax Agents expenditure benefits

0% Others

Source: Table 4.13


Page | 60


About table shows the out of 50 respondents, 56% preferred the scheme to meet future expenditure, 40% to get Income Tax benefits and the remaining 4% prefer due to pressure of the Agent.


Page | 61


Table – 4.14 : Table showing Problem in availing the service of Postal Savings Schemes. Response

Percentage (%)

Yes


No

46

92

Total

50

100

8

Source: Survey Data. Graph showing Problem in availing the service of Postal Savings Schemes

92 %

100 8% 50 0

Yes

No Percentage to Total


Page | 62


Source: Table 4.14 About table shows the out of 50 respondents, 92% of Respondents have said that there is no problem in using service of Post Office with regard to the Schemes and only 8% have said that there are some problems. Table – 4.15 : Table showing Quality of Services Service


Percentage (%)

Good

38

76

Poor

2

4

Total

50

100

Excellent

20

Source: Survey Data. Graph showing Table showing Quality of Services


Page | 63


4% 20%

76%

Service

Excellent

Good

Poor

Source: Table 5.15 About table shows the out of 50 respondents, 76% respondents of have said that the service offered by the Post Office with regard to Postal Savings Schemes is Good. 20% of respondents said that excellent and other 4% of respondents have said poor.


Page | 64


Chapter-5 FINDINGS, SUGGESTIONS AND CONCLUSION Following are the suggestions of the respondents and my own:

5.1: FINDINGS: • Most of the respondents are Male. i.e., 56% • Majority of the respondents are at the age group of 40-50 years i.e., 36% • Majority of the respondents are professional i.e., 24% •

Majority of the respondents are graduates i.e., 48%

• The majority of the respondents are having a monthly income of Rs. 5000 – 10000 i.e., 36% • All the respondents are opinioned yes i.e., 100% • Most of the respondents are satisfied on the postal services.

5.2: SUGGESTIONS: Suggestions of Respondents:  The rate of intere st is to be increased.  It is Central Govt. Service. Hence, numbers of Post Offices are to be increased to cover more population.


Page | 65


 It has to provide ATM facilities, so that saver can draw money when & where they required.  Improve the communication with customers.  To provide better service, Post Office has to be computerizing and are Post Office have to increase working hours.  Existence of Internet facilities to all the Post office in the Country.  Introduce more profitable Schemes to satisfy different customers.  Service is very slow. It must be speed up.

5.3: Own Suggestions: • Separate branch office is to be maintained to Postal Savings Schemes. • Modernization of Office and increase in the staff. • It should clearly indicate the terms and conditions of the service to the customers. • There should be kind and humble response from the Staff of Postal Savings Schemes Dept.


Page | 66


• They should advertise their products and services widely to reach the mass through multi media. • Provide more verities of savings scheme to satisfy the needs of different customers. • Separate sections should mention in the Post Office.

5.4: CONCLUSION: The public savings play an important role in the development of a Country. Therefore, in India people have got savings there have been collected by offering various attractive schemes by the Post Offices. So for the Post Offices particularly, Davangere Head Post Office had done a commanded job in mobilizing the Public Savings. There is certain short coming in the service offered by the Post Office as revealed by the sample of respondents. They have to be addressed so the Post Offices particularly Davangere Head Post Office can mobilizing a lot of savings and this in terms can be invested in Government economic and commercial activities for all development of the Country.


Page | 67


QUESTIONNAIRE I am a bonafide student of M.Com 4 th semester studying at Department of studies in commerce, ATHANI P G CENTER, COLLEGE, Davangere. As a part of academic curriculum I have undertaken a dissertation entitled “CUSTOMER ATTITUDE TOWARDS POSTAL SAVINGS SCHEMS”. Under the guidance of Miss. SWAPNA.B Faculty of s Department of Studies in Commerce, Athani P G Centre, Davangere. I kindly request you to spare your precious time in answering the questions. I Promise this Information provided will be used to academic purposes only. Thanking you Yours Faithfully. (Manjunath. R) SBC FIRST GRADE COLLEGE FOR WOMENS AND ATHINI P G CENTRE

Page | 68


PERSONAL DETAILS 1. Name of the Employee: ______________________ 2. Address

:______________________ ______________________ ______________________

3. Age Group: a) Between 20 to 30

b) Between 31 to 40

c) Between 41 to 50

d) Between 50 and above

4. Marital Status: a) Married

b) Unmarried


Page | 69


5. Occupation: a) Government Employee b) Student c) Business d) Professional e) Other specify

6. Educational Qualification: a) S S L C

b) PUC

c) Graduation

d) under graduation

7. Monthly Income: a) Below 5000

b) 5000 to 10000

c) 10000 to 15000

d) 15000 to 20000

8. How much save monthly?


Page | 70


a) Below 10000

b) 10000 to 15000

c) 15000 to 20000

d) Above 20000

9. How did you know about Postal Services? a) Visiting to post office b) b) Advertisement c) Friend & Relatives d) Others

10. Awareness of Postal Savings Schemes through different media: a) News Papers c) Television

b) Magazines d) Other


Page | 71


11. The Postal Savings Schemes preferred by the respondents? a) Savings bank a/c

b) Recurring Deposit a/c

c) National savings

d) Senior citizen savings

12. Factor influencing customer towards Postal Savings Scheme? a) Agents c) Post office

b) Advertisement d) other specify

13. Period of Postal Saving Schemes? a) Regular b) b) Occasional

14. Reasons for preferring Postal Savings Schemes? a) Fund to meet future expenditure b) To availing Income Tax


Page | 72


c) Pressure of Agents d) other specify 15. Problem in availing the service of Postal Savings Schemes? a) Yes b) b) No 16. Quality of Services? a) Excellent b) Good c) Poor 17. Did u satisfied about postal services? a) Yes b) b) No

18. On the whole, do you think that the Technology will improve the postal service? a) Good

b) Above average


Page | 73


c) Below average

d) Poor

19. If, any suggestion? _____________________________________________________ __________________________________________________________ __________________________________________________________ Date: __________

Signature

Place: __________

Thank you

BIBLIOGRAPHY


Page | 74


♦

BROCHURES -

BROCHURES

COLLECTED

FROM

POSTAL SAVINGS SCHEME.

♦

WEBSITES

www.indiapost.org www. Indiapost.gov.in www. Skpost.kar.nic.in

♦

NEWS PAPERS

The Hindu Economic Times Times of India


Page | 75

THE

Customer Attitude Towards Postal Savings Schemes

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