Everything You Need to Know About Post Office Franchise

The Indian Postal Service has played a significant role in our county for decades. The Indian Postal Service is currently one of the most reliable public postal service systems and remains unaffected by its rivals, such as courier services and other mail and document delivery services. It offers various services like delivery of mails, acceptance of deposits under Small Savings Schemes, life insurance coverage under Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI), and retail services like bill collection and the sale of forms.

To address the increasing demand from citizens, the India Post announced the post office franchise scheme under which the counter services will be franchised while the department will continue to handle the delivery and transmission of posts. The franchisee shall be able to work around the clock and provide services in return for a commission.

Did you know? 

India has the largest postal network in the world, with over 1.55 lakh post offices, 89% of which are located in rural areas.

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Indian Post Office Franchise Models

The post office franchise scheme has two franchisee models:

• Franchise Outlets: 

In regions which have a need for postal services but where no post office can be established, counter services can be provided through franchise outlets. You can also refer to the types of franchises available in India to get an idea about the same.

• Postal Agents: 

In urban and rural regions, postal agents sell stationery and stamps.

Features of Post Office Franchise

The Indian Postal Department announced the Indian Post Office Franchise plan primarily to increase its reach in locations where opening an office is challenging. However, in addition to serving that purpose, franchise owners also have the chance to make money by offering the following services and goods:

1. The franchisee can make reservations for e-post, fast post, enlisted post, and money orders (based on the EDBO or Extra Departmental Branch Office model). There are no restrictions on the number of bulk orders or speed post articles undertaken, but bulk speed post articles orders do not qualify for a refund. Also, Franchisees aren't permitted to accept large orders from Book Now Pay Later clients.
2. The franchisee is permitted to sell stamps and stationery that contains philatelic items. Philatelic items refers to collection of stamps and related items, bought by collectors. However, the franchise owners are not allowed to book or sell any money orders worth less than ₹100. Franchise owners may also represent Postal Life Insurance and collect the premiums regularly from clients.
3. Franchise owners are also permitted to offer retail services, but only those associated with other organizations. Examples include the sale of revenue stamps, CRF (Central Recruitment Fees) Stamps, tagline collection, and bill or service payments for the department.

Eligibility for India Post Franchise

To become associated with the post office franchise, you must meet specific requirements set forth by the Post Office:

• Any person who wants to work as an agent must be at least 18 years old.
• They must be a citizen of India.
• They must have completed the eighth standard or above in a recognized school.
• Postal pensioners and anyone with knowledge of computers are preferred.
• Urban and rural individuals, institutions, organizations, and other entities are all eligible to apply under this program.
• Candidates with a family member employed by the postal service are ineligible to apply for a franchise.
• Small business owners, utility stores, and stationery stores in cities and towns can also participate as agents in addition to individuals.
• Additionally, eligible persons and their respective companies can set up postal services in SEZs, emerging industries, colleges, polytechnics, universities, and even private colleges.
• After receiving the application, the concerned Divisional Head shall decide based on a report from the ASP(Assistant Superintendent of Posts)/SDI(Sub-Divisional Inspector of Posts).

How to Apply for the Indian Post Office Franchise

You can either pick up an application for a post office franchise from your local Indian Post Office or access the same online by visiting the official website. The following steps explain how to go about it.

• Step 1: Franchise applicants would have to apply for the Indian Post Office Franchise in a specific format along with a fee of ₹5,000.
• Step 2: The department and the chosen franchisee will sign a Memorandum of Agreement. 
• Step 3: The ASP/SDI confirms that the applicant meets the selection criteria.  They take into account the requirement to select individuals with the ability to manage and advertise a variety of products. They also consider if the applicant has a sense of the community's needs and the public accountability of the profession, and a willingness to accept technology solutions.

Note: Before applying, confirm that there are no post offices within 10 kilometers of your location and that postal services are required there. This will increase your chances of selection for running a post office franchise.

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Components of Post Office Franchise Form

To become a part of the Indian Post Office Franchise Scheme, one can easily apply online and fill out the post office franchise application form. The particulars of the post office franchise application form are mentioned below:

• Name of the Applicant
• Country of Origin
• Age (Min. 18 years with attached proof)
• Whether Income Tax applies to DoP pensioners, Yes or No. 
• PAN number of the applicant
• Current Business/Profession
• The current address of the business
• Proposed Business hours and ownership of the business place (Owned, Rented & Leased)
• Prior retail experience Information with at least 2 references, including addresses
• Business Strategy for the Franchise

Commission from Post Office Franchise Scheme

Depending on the sales of the goods and services rendered at the outlet, the applicant may begin receiving commission from the department. Depending on the number of customers, the initial earnings can start around ₹20,000 and go upto ₹50,000.

The rates of commission are described below:

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Conclusion 

The Indian Postal Department has declared its intention to provide franchises to Indian citizens to help them expand their horizons by reaching places where it is challenging to open an office and operate delivery services. With a small initial investment, one can start an Indian Post Office franchise and earn a respectable income from the various commissions.

An individual or business owner must make an informed decision to launch the franchise. In addition, several requirements, eligibility standards, and fulfillments must be met before obtaining or launching the post office franchise. Some of the best courier franchises in India can be studied for an in-depth analysis. Thus, careful SWOT(Strengths, Weaknesses, Opportunities, and Threats) analysis and study are required before making a decision.
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