India Post is targetting a business revenue of Rs 3,000 crore (Rs 30 billion) this year from its various premium products, including a cost effective electronic International Money order facility between India and United Arab Emirates, likely to be be launched this month.
The e-Money order envisages delivering money at the customer's doorsteps. The facility would be launched in Kerala and the four metros-- Delhi, Mumbai, Kolkatta and Chennai, Union Postal Secretary, I M G Khan, told a press meet in Kochi.
With this, a long felt need of Indian expatriates for an economic and reliable electronic Money Order facility, would become a reality, he said. About $27 billon comes as inward remittances annually from the Gulf.
Joining hands with Emirates Post, India Post will make international payments at the customers doorsteps. The alliance uses the Universal Postal Union's secure International Financial System for the purpose.
There are also plans to extend the facility in Saudi Arabia, US and Korea. Talks have already begun with US officials, he said.
The salient features of the eIMO are that it was cost effective money order facility, was reliable, safe and fast.
Initially service through 97 head post offices, covering over 2400 Sub Post Offices in Kerala, Delhi, Mumbai, Chennai and Kolkata would commence. All the 51 head post offices and Mahe sub-post office would provide this facility in Kerala, he said.
Payment upto Rs 20,000 would be made at customer's doorstep and above that at post office counters.
A single MO transaction from UAE to India should not exceed $2500 or its equivalent.The maximum remittance allowed to a single payee is 12 MOs in a calendar year, while the maximum amount that can be sent is $5000 or its equivalent. The MOs would be delivered to the customer within two days.
Khan said the Emirates Post would be charging 11 dirhams for window delivery per transaction and 14 dirhams for door delivery in India. Both the charges have to be paid by the remitter.
Declining to give any business target for the new service, Khan said they would be adopting new strategies to popularise it. The rates were more competitive than the western Union and other similar money transfer operators in the Gulf, he said.
The post offices had disbursed about Rs 5,000 crore (Rs 50 billion) nationally last year of which Rs 700 crore (Rs 7 billion) was in Kerala.
The postal department's earnings frorm its premium products, including speed post, express parcel post, was Rs 2034.8 crore (Rs 20.34 billion) during 2007-08 which was 34.97 per cent higher than 2006-07, K Noorjehan, Member (O&M) said.
Khan also reviewed the two day annual business meeting of the postal circles and its achievements. 'The business target for this year was Rs 3000 crore (Rs 30 billion) and we are looking for this additional revenue as the Sixth pay commission will put an extra demand on expenditure side,' he said.
The launching of the new service also signifies the coming of age of the postal department. With remittances the department wants to recover lost grounds, he said.
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