Business idea: postal franchise system, eligibility, revenue


The unemployment crisis in India is not hidden from anyone. With millions of people vying for better jobs, becoming an entrepreneur is much riskier. Since government jobs are not easy to get, here is a business idea that can help you earn a living by cooperating with a government institution.

Being the largest post office network, India Post Office facilities are easily available everywhere. You can benefit from facilities such as opening a small savings account, sending money orders, stationery and stamps. However, the government is planning to expand the post office facilities by introducing the free postage scheme.

Currently, there are over 1.5 lakh post offices across India, but many areas are without post offices. Considering the thought, India Post has launched this scheme of giving a franchise scheme to the post office. This program can help you create a sustainable business model and also generate good income. Let us see some of the important concerns about this diet. Read also | Postal staff scam Rs 96 cr of public money in savings schemes: CAG

What is the free postage scheme?

According to this scheme, a post office offers the possibility of two types of franchises: a franchised point of sale and a franchisee of postal agents. You can opt for any of these franchises.

Under point of sale franchise, it can usually be opened in areas without post offices, while postal agent franchises have agents who deliver fixed door-to-door and postage stamps in rural and urban areas .

How to Apply for India Post Franchise Program?

You need to apply for a post office allowance through the India Post official website. Then you will need to download the form from the website. After uploading, you need to fill it out and submit it. Also, you should read the India Post notification carefully and understand the terms and conditions before applying. Later, once selected, you will need to sign a MoU (Memorandum of Understanding). Thereafter, you will be eligible to serve customers.

Are you eligible for the Free Postage Program?

Although the eligibility criteria for the Post Office Franchise Scheme are simple, below are the requirements that must be met.

  • The age of the applicant must be at least 18 years old.
  • None of his family members should work in the Indian Post Department.
  • He or she must have studied up to 8th grade in a recognized school.

How much would the franchise cost?

The point of sale franchisee is comparatively less expensive than the postal agent, as it mainly involves maintenance. On the other hand, postal agents are expensive because more money is spent on purchasing stationery. If you want to open a post office, you must have a minimum area of ​​200 square feet. In addition, five thousand rupees must be deposited as security.

How much revenue can be earned through the Postal Franchise Program?

Although there is no fixed income, franchise owners will receive a commission for their services. Prices vary by service and are as follows:

Offered services

Commission (rupees per transaction)
Booking – Saved Items Rs 3.00
Booking – Speed ​​Post Articles Rs 5.00
Reservation – Money order (Rs 100-200) Condition: Applicable if the franchised agents do not reserve any money order below Rs 100. Rs 3.50
Reservation – Money order (Rs 200 above) Condition: Applicable if the franchised agents do not reserve any money order below Rs 100. Rs 5.00
Booking – Registered Items and Velocity Particles greater than 1000 per month 20% extra commission for both items.
Sales – postage stamps, postal stationery and money order forms 5% of the sale amount
Retail services – tax stamp sales, central recruitment tax stamps 40% of the commission earned by the Department of Posts (rounded in rupees to 40% or less)

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