Postal Franchise – Features, Eligibility, Commission, Application Process


oi-Ajeeta Bhatia


The Indian Postal Service is currently one of the most reliable public postal service systems, and competitors such as couriers and other mail services have had no effect on it. It provides a variety of services including mail delivery, deposit systems, postal life insurance (PLI), etc. Increase access to basic postal services across the country and increase demand India Post has introduced the post office franchise system, under which counter services will be franchised while the department will continue to handle delivery and forwarding some mail.

Characteristics of the postal franchise

Characteristics of the postal franchise

  • Only stamps and stationery may be sold.
  • Franchise holders can reserve registered items, quick post items and money orders.
  • It will act as an agent for Postal Life Insurance (PLI) and provide after-sales service such as premium collection.
  • Franchisees may provide retail services such as Department billing/taxes/fines/payment services.
  • Any other service set up by the Postal Department.
Eligibility Criteria-

Eligibility Criteria-

  • Candidates must be 18 years old.
  • Candidate must be at least 8th pass
  • Any private or limited company, natural person, self-employed, institution and other entities can apply for the franchise
  • Well located and well maintained premises
  • A suitable business plan with all required details
  • An agreement must be signed by the applicant if it is a natural person and by the head of the institution, organization or any other entity if it is a company, an institution or other body.
  • Family members of currently employed postal workers are not eligible to participate in this franchise program in the same division where the employees are employed.
  • The applicant must be genuinely prepared to make the financial commitments necessary for the operation of the business.
  • Around Rs. 1 to 1.5 lakhs will be the typical investment for building infrastructure and other facilities on the property.
  • A minimum security deposit of 5000 minimum in the form of a National Savings Certificate (NSC) must be provided by the franchise.
How do I apply for a postage allowance?

How do I apply for a postage allowance?

  • Submit an application form in a specified format with an appropriate business plan.
  • The application form can be obtained from the nearest post office or can be downloaded from the official website.
  • Once the form is submitted, the selected franchise must sign a memorandum of understanding with the department
  • After submission, the selection is made by the Head of Division within 14 days
Commission or remuneration paid to the franchisee-

Commission or remuneration paid to the franchisee-

  • Reservation of each item of Registered Mail – Rs.2
  • Reservation of each speed post item – Rs.2
  • Reservation of each term – Rs 2
  • Booking speed post, registered items or both above Rs 1000 – 20% extra commission
  • Sale of postage stamps, money orders and other stationery – 5% of the sale

India’s Postal Department has declared its intention to provide franchises to Indian citizens to help them broaden their horizons by reaching areas where it is difficult to open an office and operate delivery services. With a small initial investment, one can start an Indian Post Office franchise and earn a good living from the various commissions.

Article first published: Tuesday, November 8, 2022, 3:49 p.m. [IST]

Aurora J. William