30th June retirees case - Supreme Court passed comments- noncompliance costs as well as interest may be imposed.

 Suggestions on Organisational Restructuring

 When I was holding the post of Circle Secretary, Tamilnadu Circle, the Department sought suggestions on organizational restructuring during 2004 end and as the Circle Secretary, I submitted the following proposals for consideration. After becoming the GS, in the Study Camp held at Trivandrun during 2007, Smt Shoba Koshy Chief Postmaster General Kerala Circle who was former DDG Establishment then at Directorate recollected the memorandum and praised the contents and told many of them had been taken for consideration. It was submitted 17 years before. 

1-1 The existing single entity of Directorate may be fragmented into four or five independent Directorate with full functional autonomy to be headed by officers of Indian Postal Services 

1-2 The Secretary communication or Chairman may be nominated form ex cadre services to monitor the role of the different Directorates. The Gazetted establishment and Management of services may be retained with the Chairman. Other powers likes policy decision, liaison with other Ministry & Union Govt. be retained by him.

1-3   The different types of Directorate may be defined as indicated below.

(i)               Saving Bank Directorate

(ii)             Insurance (PLI/RPLI) Directorate

(iii)            Directorate of Mail operations with premium products.

(iv)            Directorate of Financial Services 

1-4         The Department of Post should have a separate budget as in the case of Railways. As the world moves fastly towards communications and knowledge, it is better to have a separate budget to develop the communication activities of the Department of Posts. In the vast country like India, the electronic communication alone will not satisfy all the needs of the communications. Not only the traditional Post/paper communications but also the other financial activities, being carried out in every post office already established a link with the people at large and none in the country is unaware of the existence of the post offices.

2)         Suggestions for Savings Bank Operations Directorate:

2-1       The existing post offices of below LSG level may be allowed to carry SB and RD functions only with functional procedure as available to prior to decentralization.

2-2       In respect of LSG and above offices may be allowed to carry out all banking activities and render accounts to Heads Offices. In this case, all savings activities (even T.D. also) may be decentralized. So also, in the case of cash certificates, they may be allowed to entertain pledging with extended facilities of lending loan on mortgaging.

2-3       The issue of DDs for SB accounts holders may also be considered for all such offices.

2-4       In respect of Head Offices, besides the existing function of being primary accounting unit can function as a full-fledged bank with new facilities of extending load on securities like cash certificates, issue of DDs for SB account holders, Debit card facilities etc.

2-5       The Head savings Bank of the Head Offices should be detached from the main administrative control of the Postmaster and should be head by the officials not below the rank of HSG-I with full knowledge of Banking activities.

2-6       The existing level of SBCO at each HOs may be taken away and a full-fledged control organization with ICO may function at regional/circle level, which should render accounts directly to Savings Bank Directorate. The existing staff of SBCO may be appropriately utilized at Head Savings Bank or Regional/Circle control organizational depending upon the requirement.

2-7       The existing Decentralization of RD/MIS is not working properly and the level of knowledge and working is beyond the capability of single handed SPMs/PAs in smaller offices. The working of interest for PMC closures of RD is so complex which requires every individual posting right from the opening of accounts till the date of PMC with IBB etc, consumes a lot of time at SO level. The anticipated quick disposal of these cases at field level is not yielding desired result in practice. Secondly the withdrawal of options of second control/check/supervision is leading to multi various frauds which at one time will go beyond normal comprehension of any body. The agreement of these categories also is not easily possible and the limited visiting of SBCO staff to set right is not possible in the existing policy of abolition/reduction of staff without equal matching of recruitment.

2-8       When Savings Bank Act is amended for entering into these privileged arena by other commercial banks will normally invite a competition and the existing level of knowledge of staff at field level cannot these new scenario.

2-9       The existing Organization of Savings Bank should be upgraded into that of a fulfledged commercial banking with dependent profit & loss and balance sheet. Regarding the Accounting system with the proposed set up of Postal Bank, the accounting system up to the level of SO or till its incorporation in the primary accounting unit (ie) HO may continue to be on single entry system as at present and at the primary accounting unit. The entire transactions may be accounted for under double entry system on the lines of commercial accounting and the primary accounting unit should also prepare P&L account & Balance sheet.

3)         Suggestions for Postal Life Insurance/RPLI Directorate

3-1       In the new contexts of entering into the insurance sector by all service, our organization should also be developed to the level of competition with improved expertise and knowledge of insurance business. Already the RPLI and PLI has been partially decentralized with no efficient back office work and after sales service and no specified post has been created. As suggested for Savings Bank Directorate, these Insurance Directorate should also function as a full-fledged independent authority with qualified staff.

3-2       The agency function for other insurance organization may be dispensed with and all the non life insurance policies like Motor vehicle insurance. House insurance, Fire insurance etc, may be done at our level with due permission & licence from IRDA.

4)         Mails Operation with Premium Products

4-1       With decline of traditional mails, the Department is now introducing logistic post and other premium services which should have been separately operated without intermingling the other financial services like traditional savings bank etc.

4-2       Of late, the most feared courier organizations except a few are handling parcels and also concentrative mainly on urban areas. The mail Directorate while retaining the traditional services in the rural pocket may expand its services in the logistic post and other parcel services for which, reorientation of training for the existing mails & delivery staff may be well improved.

4-3       The existing Business Directorate may be carried out the function by the Mail Directorate only with independent Budget and in the case of deficit it may go for subsidy in accordance with the policy of the Govt. to have unbroken rural communications and maintain the national security with full statehood. At present, the party played by the existing staff and the cost establishment for carrying out the new business activities are not taken into account while computing the revenue and the entire cost burden is still retained with over all other activities of the Department eating away the profit sector of Savings Bank & Insurance.

5)         Suggestions for Directorate of Financial Services

5-1       At present all postal organizations throughout the world are resorting to functions as Financial HUB carrying out financial and fund activities on its own or on behalf of other agencies. So as also, the Department of Posts in tune with universal phenomena can function as a Fund & Post Polio Manager with its deep routedness throughout India. With effect from 01-04-04, the state & Central Govts. are adopting a contributory pension scheme replacing the age old pension scheme and the fund management of this may well be taken over by the Department of Posts as the Department of Post has already a vast and set experience of carrying out such pension activities like payment of Railway Pension, Payment of Telecom Pension, EPF Pension, coal mines pension etc and it may not be difficult to carry out any new services entrusted to the Department of Posts.

5-2       Already the BSNL has desired to entrust the GPF, & CGEIGS scheme Management of its employees drafted from erstwhile Department of Telecom to the Department of Posts. it does not pose and peculiar problems for us as these functions stand already computerized and for us it is to be continued with our own staff and in the present scenario of maintaining all records in Electronic form the much argued expenditure over stationary and other establishment may not be a threat. Other activities like micro credit facilities on or behalf of NABARD and selling of stock & insurance certificates on behalf of ICICI, IDBI etc may well be brought under the control of Financial Directorate.

5-3       With recent controversy over the settlement of commission for selling revenue stamps, the same may be got entrusted to the Department of Posts and after paying agreed commission to the Department of Posts, the Central Govt. may itself appropriate the sales process to the states concerned. The work may be well handled at the circle/Regional existing stamp Depots without any additional/extra man power.

5-4       The recent stamp scam throughout India should open the eyes of everybody and now every state is after formulation of New System of imposting stamp duty. As the existence and usage of stamp papers for conveyance of property etc, it is a time tested and well established usage among all people of India, it is very difficult to switch over to any new unified or uniform procedure throughout India. Hence it may be suggested to make over the receipt, stocking & sale of stamp papers by the Department of posts and people will also feel very convenient to avail the facility.

5-5       For other than Savings Bank activities, the non permanent financial services like E-Billing,(i.e) collection of Telephone Bills, Air Tel Bills, PCO, Collection of Electricity Bills, House Tax (Andhra), Sale of Publications etc which fall under newly coined Financial Mart may be carried out by this Directorate.

5-6       As these services are not permanent, time existing, occasional and are carried out with MOU entered into with local organizations like state/private, the income derived from these services may not be helpful for permanent survival of the Department.

5-7       Whenever any service becomes a non profitable or atleast non cost effective, we may well close such business terminating any local agreement.

6)         Circle Organisation:

6-1       The powers of the establishment of Circle Head may be on the same lines of Secretary communication. The Circle level management control of Gazetted establishment, liaison with State Authorities/other organizations. Over all control over the regional heads by vested with regard to level of administrative powers to the Heads of the circle, it may be on par with Head of the Zonal Railways.

6-2       The Regions are of independent authorities and the circle head may not have may concurrent jurisdiction over the regions and the multi level dealing of the issues should be dispensed with. For Example: the establishment & management of post offices, staff transfer, promotion etc. need not be subjected to more than one level dealing. The Regional should be headed only by a single officer. The existing parallel and subordinate function of DPS may be eliminated. If necessary the existing DPS may be posted to head identified functions like PLI, RPLI, Savings Bank, Mails etc.

6-3       The existing internal finance system for regions continues as a temporary measure for more than two decades and the files are subjected to two or three levels, regional, circle & circle IFA. The existing system of circle IFA may coterminous with regions. The GM Finance may be with the head of the circle for over all supervision of financial activities of the Circle & not for individual advise to regions. The Regional IFA may be in the rank of Directorate and also the classification of accounts to the level of final booking and dispatch of Accounts Statements etc to the Directorate. The GM attached to the Head of the circle may look after the function of inter-circle, transfer & adjustment of accounts, inter-region banking adjustments, (Accounts current) regarding settlement of Banking transactions (Focul Point Activities).

6-4       All back office functions like issue of policies, maintenance of detailed ledgers settlement of claims etc in case of PLI/RPLI should be with the heads of regions.

6-5       The proposed Regional IFA in the rank or Director of Accounts may functions as a control organization for all financial activities including the PLI, RPLI, etc.

6-6       Almost all the Foreign posts are at the Head Quarters of the Circle, it may well be brought under the direct control of the Postmaster General with an officer at the level of STS or JTS at Foreign Post. The existing post of Directors may be well utilized in other functional area.

7)         Training:

7-1       All induction level of training up to the level of non Gazetted staff may be decentralized to the regional level, The existing training centers may be upgraded to the advanced level of training or may be scrapped altogther.

7-2       For such induction training, the trained instructors with due training allowance may be posted. The refresher training may also be confined with the regions.

7-3       In the case of retention of existing training centers, they may impart training trainers for regional training centers, training for insurance and other activities like logistic post even by drafting guest categories outside the department as insisted by the fifth pay commission.

8)         Disciplinary Powers:

8-1       The statutory penalties should be awarded not below the rank of Gazetted officer.

8-2       Appeals and petitions should not be handled in one & the same office. The petitions should be at the next level or should decided by the Circle head.

8-3       The appellate jurisdiction of the region should be confined up to the level of Group ‘D’

9)         Establishment – Restructuring/Training

9-1       With the change of policy in recruitment and availability of knowledge oriented educated employees, we are in a strong position to face and carry out any existing or future expansion of challenges and services without affecting the aged old staffing system, which has well experienced in handling traditional mails and other preliminary work at field level, the activities of which will go parallel alongwith new & innovative services, the newly recruited knowledgeable group may be well placed in all new activities like

(i)               Proposed independent banking service

(ii)             Financial mart

(iii)            Accounting control & internal check

(iv)            Insurance Activities.

(v)             Newly introduced logistic post.

(vi)            Electronic services like IMT, E.Bill, E. Post etc.

(vii)          System Manager

(viii)         Marketing Executives

9-2       Even now we are partially carrying out all these activities exploiting the newly recruited persons with no extra remuneration or incentive and the result being a creamy layer at some times seek better employment in other organizations. And it is the right time to have our own personnel to develop new software, update the existing software or create commercial viable software like meghdoot. For these and accepted level of salary and other perks as available in other public sector or private organizations to keep our activities updated is felt very much essential. Atleast, a level of cadre above the initial recruitment stage may be created and to have all these talented resources with our department. A similar examination like IPO for Systems Manager, System Administrator and Marketing Executive may be held for the Postal Assistants of three years experience or more. The official working in the software group should also qualify in the exam on departmental volumes/Rules in addition to the IT and they should have placed in better scale.

9-3       Instead of allowing exodus of qualified JAOs with much experienced in Departmental work is not good. Their services may be well utilized in the regional and circle offices for ICO & other financial functional including PLI/RPLI. By this process, we can create a way for promotional avenues for younger in our Department.

9-4       At divisional level, the existing level of knowledge for the officials handing PLI/RPLI by the process, we can create away for promotional avenues for younger aspirants in our Department.

            At divisional level, the existing level of knowledge for the officials handling PLI/RPLI is not sufficient and no separate establishment/man power is created for these newly and fast expanding activity. The staff who qualify in the IRDS exam may be deployed for these posts with hither scale of pay. In case of non justification for full time work, Special pay may be considered.

9-5       With vast business of PLI/RPLI and heavy expenditure for Publicity and publicizing materials, it is regretted that well defined procedure or manual are not made available. A single copy of cyclostyled unupdated and Dog eared leaves available at Circle Office is not much useful and in many ROs even this is not available. Most of the officials working in the RPLI are very juniors and unaware of the detailed procedure for insurance.

        An updated printed manual is urgently required for efficient and effective functioning.

9-6       The CSDS & PSDS may be merged into one and to be headed by an officer of no below the rank of JAG because part from the existing function of the CSD, the new proposal to going for sale of stamp papers, revenue stamps and many tender procedure formalities for purchase of electronic stationeries, spares etc require a definite and efficient administrative & financial control over these.

10)       Suggestion for New Schemes/Services:

10-1     The memorandum of understanding already had with ICICI, IDBI for renting of POs for establishment of their ATM is yet to take off. This may be explode very quickly and at initial stage, the extra space immediately available for all departmental buildings may be let for the ATMs.

10-2     with more liberalization in granting HBA and availability of open sources from Private/Public sector, Housing Finances, keeping the sites acquired for construction of staff quarters with no performance becomes a dead asset. In coveted cities/Towns, we may go for BOLT system (Build – operate – lease – Transfer) through HUDCO so that the Department cannot go for investing or dumping capital for building in this scheme.

10-3     After bifurcation of Department of Telecom, lately the BSNL, we are keeping phones by paying same rent and phone charge as applicable to individual customers. And also in the case of acceptance of telegrams or public calls through phone suffered a lot inviting criticism by the public in the floor of parliament. The suggestion of BSNL to retain such facilities by paying due rent and floor minimum charge by the Department of Posts is not a viable one as in many places the revenue may not justify to continue the system by the Department of Posts. since this type of activity is a social commitment by the Govt. the Department of Posts should not be allowed to suffer a loss. For this, either the BSNL itself should establish their own outlet to cover to the needs of the public or else the entire cost burden as was available prior to separation may be borne by the BSNL by paying due commission or remuneration to the Department of Posts,

10-4     Alternatively, the Department of Posts may be licensed to have its own system of phone communication as in the case of Railways, not to speak of reliance, Airtel etc. Taking away the phone facilities, previously called service phones from many sub offices is not justified on the following grounds.

(i)     With modernization/Computerization, phone is essential instrument not only for oral transmission but also for Date Transmission like IMT, Cell One agency services and proposed E correspondence (i.e) for any electronic transmission of information from retailed establishment like SOs and HOs & other administrative offices, the phone is very much essential. Hence it is a right time for us to get license for running our own services from DOT/DTS or Telecom commission.

10-5     The PLI & RPLI may be merged with a unified name may be Postal Life Insurance with extension of services to all public on the lines of Life Insurance & General & General Insurance. So also, the proposed scheme may go in for non life insurance activities (i.e) vehicle insurance, cattle insurance, House insurance, fire insurance etc. instead of tieing with General Insurance etc. Now the present tieing up with oriental insurance is no commercially viable or profitable.

10-6     When we go for full-fledged banking activities by POSB, we may expand the activity to cover;

(i)               Financing the House constructions

(ii)             Handing loans on securities like National Certificates.

(iii)            Micro credit loan to the organizational like self Help group.

(iv)            Lending personal loans to the official for restricted purposes.

(v)             Credited of salaries of Employees in to PSB account.

10-7     The postal organization with its route down to all villages and hamlets is a better organization to carry out all censes activities like statutory for every ten years for electrol rolls & its updation, verification of Ration cards, vehicle licences, phone connections etc. By this way the State & Central can save a lot of waste of man power and establishment by relieving the teachers and revenue officials from the above activities and potentiality of the Department of Posts may well be exploited with no extra man power and the decadence of postman system can also be saved, rather will be improved a lot.

Conclusion:

With the proposed full-fledged banking activities and with separate budgeting & control by the Department of Posts, the establishment and administrative control of the Department may be delinked with impact of Ban on creation of post by the Ministry of Finance. As in the long run the Department is expected to run in its own legs with own resources, there may not be any necessity to impose any such ban on creation, abolition etc. by the instructions of Ministry of Ministry of Finance.

The Dept of posts should be left with its own requirement of man power and the establishment to commensurate with its activities. At present despite introduction of many new services, the ban on creation and abolition of the posts by 2:1 is really a counter alone. The over burden work of a Postal Asstt. is a real cause for not keeping of the commercial quality of service. The day to day finalization or closure of accounts are kept in arrears to be heaped up with never ending process of clearance.

The RPLI and decentralized RD/MIS work are the eyes example for this. In RPLI, everybody knows there is no quality in back office work and after sales service and RD/MIS are kept at SOs ‘as it were’ conditions of the receipt from Head Office. Hence, all the new items so far not subjected to any other norms to be formulated within six months of its introduction and not later than one year.

We know that for speed post, MIS, IVP etc. norms were fixed much later than a decade of their introduction. Even now, the premature closure of RD are carried out under incentive service with prescription of no norms. For checking of MIS vouchers at SBCO is carried out still with honorarium. Hence, for all the existing activities for which no norms are prescribed should be subjected to new norms to be formulated before implementing any reforms or reorganization in this case. Till the post is sanctioned based in norms, the due incentives or honorarium may be prescribed for new work with no maximum limit, prescribed some decades back, when no such number of new activities were there.

The above suggestions are illustrative with in the reach of availability of materials with this circle union and personal experience and not exhaustive for which, we have a natural limitation for any classified documents.

(K. V. Sridharan)

Circle Secretary