The host of services that postal savings agents provide to investors may now come with a price tag. The Tamil Nadu Postal Agents' Welfare Association has taken a resolution to levy a service charge on their clients, says its president, C.E. Prabhakar.
This follows the Centre's decision to scrap postal agent's commission for the Public Provident Fund (PPF) and the Senior Citizen Saving Scheme. And for other schemes, it was decided that the commission be brought down to 0.5 per cent.
For the 3,000 agents in the city, these proposals mean bad news. “The report claims that the amount mobilised by the agents remains unused. Why can't the respective State governments use it for infrastructure purposes?” asks P. Shankar, a postal agent for 27 years.
Agents wonder how cutting back on the commissions will translate to higher interest rates since bank rates are more competitive. “Despite the post office offering lower interest to customers for the Fixed Deposit Scheme, when compared to banks, it continues to be popular because of the service rendered by agents. If the customers are forced to come to the post office, they would rather shift to banks,” says S. Rajpandian, vice-president, Tamil Nadu Postal Agents Welfare Association.
For many agents in the city, this is the only source of income. The sudden cut in commission and the increasing daily expenses have only added to their woes. .
For Usha Natarajan, who has been a postal agent for 20 years, this commission helps pay off her loans. Many are reluctant to ask for a service charge from clients who they have known for decades. “How can I ask my clients? They are all senior citizens and our relationship may suffer,” says R. Sandhya, an agent for 11 years.
From December, a limit on the amount agents can deposit in the National Savings Scheme, for exemption of tax, has been reduced to Rs.10,000. “This has come in the peak season we have lost out on such customers too,” says Geetha Damotharan, postal agent in Ayanavaram.
Investors such as A.R. Mohanram believe agents play a vital role in encouraging people to opt for investment schemes at the post office. For the amount of running around that agents do they should be acknowledged with some remuneration, says T.V. Venkataraman, former chief secretary to the Government of Tamil Nadu.
Keywords: postal savings agents, Tamil Nadu Postal Agents' Welfare Association, Public Provident Fund, PPF, Senior Citizen Saving Scheme, National Savings Scheme
many of the customer is not coming to the post office directly.Because lot of the private sector are working for the same purpose with agents. The agent must need to the post office.
The Government of India has recently issued orders for reduction/withdrawal of Commission availed by the Small Savings Agents for more than five decades by now which affected about 10 lakhs Agents and their families in the country. The Small Savings Agents are mainly dependent on the commission in proportion to the deposits mobilised by them for their livelihood from 1-12-2011. About more than 90% of total small savings collection are mobilised through the efforts of Small Savings Agents. The Agents have taken lot of pain all these years to create awareness of Small Savings Schemes among the common public and to raise the resources for financing development and defence of our country. Previously, the GOI has paid 2% commission to SAS Agents which was reduced to 1% till 30-11-2011 and now shockingly, further reduced to 0.5% from 01-12-2011. The cost of living is increased day by day and the fuel cost for servicing of investors have also increased alarmingly, but the commission payable to the Agents drastically reduced year by year. The logic behind this decision is not known. As most of the Small Savings Agents crossed 50 (plus) years of age cannot undertake any other job at this stage are worst affected by this Order. Also most of the rural women Agents including destitute, widows, cancer patients etc. with poor family background in the unorganised sectors mainly depending on the Agency commission for their very livelihood. It is therefore requested that the Govt. of India to reconsider its decision & restore the orders from 1-12-2011 on the following 3 important issues & take appropriate steps to save several lakh families doing Agency Work all over the country in the unorganised sector as a Social Security Obligation and if necessary their services may be better utilised in the changed scenario for various other developmental Programmes of Govt. to reach the masses at gross route level. 1. Payment of Commission of 1% to SAS Agents 2. Payment of commission of 1% to PPF and 0.5% to SCSS 3. The Govt. of India should not reduce the commission amount even If the State Govt. pays incentive out of their own fund.
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