RECOMMENDATIONS OF THE EXPERT COMMITTEE ON HARNESSING THE INDIA POST NETWORK FOR FINANCIAL INCLUSION

Recommendation 1: India Post should deliver lightweight, lowcost bank accounts to all Indian citizens and especially to the financially excluded population.


Recommendation 2: India Post should look for ways to leverage its low cost platform by providing India Post branded accounts to other strategic partners, such as MFIs, mutual fund and insurance companies, and telecom operators.


Recommendation 3: India Post should apply itself towards the challenge of achieving high volumes of moneyorders where payments of as little as Rs.10 are achieved at a charge of less than Rs.0.1 while requiring no subsidy from the exchequer.

Recommendation 4: India Post should evolve the moneyorder to become a mechanism for transferring money from one POSB account to another, instead of just being a mechanism for delivering cash from one person to another.


Recommendation 5: India Post must build a payments infrastructure, through an array of contracts with partners, connecting up all POSB accounts and accounts of its partners, to effectively become a persontoperson moneyorder capability (through mobile phones or web browsers) for a large swathe of India.


Recommendation 6: India Post must elicit a large number of partners in terms of financial inclusion players, mobile service providers and innovative new technological choices in order to increase the size of the network.


Recommendation 7: India Post must work closely with a diverse array of government agencies so that their G2P payments requirements are met through a combination of POSB accounts held by citizens and moneyorders delivered by government to those POSB accounts. The Ministry of Finance must work with India Post in rapidly rolling out this platform and network, given its important implications for direct, targeted delivery of government subsidies.


Recommendation 8: India Post should play a role in the emergency credit aspect of financial inclusion, through a platformbuilding approach where private lenders deliver credit to the poor through a competitive framework.


Recommendation 9: India Post should request the addition of its financial inclusionproject into the Terms of Reference of the recently announced Technology Advisory Group for Unique Projects, and the leadership team of the India Post financial inclusion project should closely engage in the work of this Group, so as to bring in the best practices forproject management.


Recommendation 10: The role of the Post Office Savings Bank as an agent of theMinistry of Finance should be revisited and expanded to enable India Post to play a larger, direct role in financial inclusion and build appropriate enabling architecture.