How to get a Postal Franchise? KNow all about to Indian Postal Franchise

What is Post office Franchise (India Post)?

The Department of Posts is entrusted with providing access to basic postal facilities throughout the country. Even though India has the largest postal network in the world, with about 1.55 lakh Post Offices, there continues to be a demand for Post Offices. 

In order to effectively meet such demand, the Department of Posts provides postal services through Franchise Scheme. It is called Indian Postal Franchise or Postal Franchise Scheme.

Types of Post office Franchise

There will be two types of Postal franchises-

(i) Counter services through Franchise Outlets in areas where there is demand for postal services, but a post office cannot be opened.

(ii) Sale of postal stamps and stationery through Postal Agents in urban and rural areas.

Basic features of the Post office Franchise Scheme:

Only counter services are to be franchised, while delivery and transmission will continue to be through the Department. Linking arrangements for the franchised outlets will be provided by the franchises.

The franchise will provide service across the counter for a minimum defined time schedule with flexibility to work round the clock.

Products and services offered in India Post Franchise

Here I am Sharing the list of various services offered in the Indian Postal Franchise. You may check the list below.

01. Sale of stamps and stationery (including phitatelic items) 

02. Booking registered articles, speed post articles, money orders (on EDBO model), e-post, etc. Bulk booking of registered/speed post articles are allowed without any limit. No rebate for bulk booking of speed post articles will be admissible over and above the commission payable to the
franchisees as applicable from time to time. However, the franchisees will not do bulk booking from BNPL customers. Further, Link Post Offices should report any cases of heavy bulk bookings to the HO. The HO would send a report to the Divisional Office. The Divisional Office will then alert the Marketing Executives in the Speed Post Centres etc. to make efforts to bring such customers into the fold of the BNPL Scheme of the Department. The restric'tions imposed by the Department regarding bulk booking on the outsourcing agents would also be applicable to the
franchisees for bulk booking.

03. Franchise outlets will not book any money order for a value less than Rs.100./-

04. Functioning as a direct agent for PLI and provide related aftersales service, including collection of premia. (subject to fulfillment of criteria for PLI agents)

05. Marketing products for which the Department has a corporate agency or tie-up and provide related follow up services (subject to agreement with the other organizations involved)

06. Providing retail including sale of revenue stamps and CRF stamps and bill/talfine collection/ payment services of the Department (subject to agreement with the other organizations involved)

07. Facilitating the provision of e-governance and citizen centric services (subject to agreement with the other organizations involved)

08. Any other service introduced by the Departnrer-rt in futura through its outlets which is considered amenable to the franchlse model (subject to agreement with the other organizations involved).

The model has adequate flexibility built in to allow a range of services to be extended through the outlets according to the need / demand, and to increase the range when found necessary. Thus, the range of counter services that can be offered through different outlets can vary, keeping in view the location and its capacity to generate revenues.

Criteria for Selection of Postal Franchise ouilets:

Applicant for franchise would need to submit an application in a prescribed proforma (Annex-l). The selected franchise will sign a Memorandum of Agreement with the Department (Annex-ll). Criterla for selection have been fixed considering the need to select persons with the capacity to manage and market a range of products, along with a sense of the community needs and public aspects of the job, and willingness to accept technological options. 

The criteria are as below:
01. Individual as well as institutions/organizations/ other entities like cornershops, paanwalas, kiranawalas, stationery shops, small shopkeepers, etc. in urban and rural areas and new upcoming urban townships, special economlc zones, major highway projects, upcoming new industrial
centres, colleges, polytechnics, universities, professional colleges etc. are eligible for taking up the franchise work. In the case of individual, individual will enter into agreement and in the case of institution/organization/ other entity, Head of the institution/organization/entity will enter into agreement.

02. The members of family of serving postal employees are not eligible for taking up franchise scheme in the same Division in which postal employees are working. Members of family for this purpose would include the following:

02. (a) The spouse, but not including a separated spouse or one living separately while judicial separation proceedings are on.

02. (b) Children and stepchildren but not including children and of whose custody the serving postal employee has been stepchildren deprived by law.

02. (c) Other persons such as wards who are dependent on live with the serving postal employee.
and normally live with the serving postal employee.

03. Age: Above 18 years. No upper age limit.

04. Educational qualifications: 8th class pass from a recognized school.

05. Preference to open Postal Franchise (a) Postal pensioners (b) Those able to provide computer facilities.

06. Premises: Proper appropriately located and accessible premises, properly maintained with suitable display of approved signages.

07. Applicant should be willing to make the necessary investments for the conduct of the business and provide details hoyv the premises will be run, what the opening hours would be, investments proposed, market conditions, proposals for marketing products, awareness of customer base, role in local community, etc. One reference from respectable person of the locality where the franchise is proposed to be located would also be required to establish the character and antecedents of the

08. A business plan would be prepared taking into account the anticipated minimum level of business / revenue worked out by the Divisional Head for the specific franchlse.

09. Security Deposit: The security deposit in the form of NSC, to be provided by the franchise, would be based on the maximum possible level of financial transactions likely be undertaken by the franchise in a day. The minimum security deposit would be Rs.5,000/-. Further, it would be
increased on the basis of average daily revenue.

10. Selection would be made by the concerned Divisional Head based on a report from the ASP /SDI within 14 days from date of receipt of application. lt will be ensured that permission for opening Franchise Outlets will not be granted in such Gram Panchayats where Panchayat Sanchar Sewa Kendras (PSSKs) are functioning under the Panchayat Sanchar SewaYojana Scheme.

11. Monitoring: The monitoring mechanism for the scheme will be strengthened vis-l-vis regular outlets, with monthly monitoring by inspectors. An element of electronic monitoring will be introduced in due course.

12. Training: Introduction to the objectives, products/ services, basic procedures, upkeep of the premises and customer care would be part of induction training of the franchisees. The briefing will be done by the Sub-Divisional Inspector of the area.

13. Franchise shall be able to transact postal business on computers. 

14. Pre-printed Barcode Sticker: Pre-printed Barcode Stickers shall be provided to Franchise Outlets using Point of Sale Software.

How to get Indian Post Office Franchise

Applicants for franchises would need to submit an application in a prescribed format Annexure-I. The  selected franchisee will sign a Memorandum of Agreement with the Department .Criteria for selection have been fixed considering the need to select persons with the capacity to manage and market a range of products, along with a sense of the community needs and public aspects of the job, and willingness to accept technological options.

Postal Franchise Application Form

You can download the PDF file of the Postal Franchise Application form from the the below link.
It is called the application cum franchise outlet agreement form in Annexure I.

Click here to download