The Department of Posts (India Post) offers the India Post Franchise Scheme to increase access to postal services in urban and rural areas, notified vide official memo No. F. No. 40-6/2021-Plg dated 17 November 2021. Under the scheme, only counter services are franchised, while delivery and transmission continue through the Department. This scheme is for individuals and small shopkeepers who want a low-investment postal business they can run alongside an existing shop.
The scheme has two types, a Franchise Outlet for full counter services and a Postal Agent for the sale of stamps and stationery. A Franchise Outlet needs a minimum ₹5,000 security deposit in NSC, while a Postal Agent needs no deposit. Selection is made by the Divisional Head. Applicants should check all details from the below article.
Read this article carefully and go through the official scheme document before applying. Information verified from the official Department of Posts Franchise Scheme, memo No. F. No. 40-6/2021-Plg dated 17.11.2021.
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Quick Summary of the India Post Franchise Scheme
| Category | Details |
|---|---|
| Scheme Name | India Post Franchise Scheme |
| Authority | Department of Posts, Ministry of Communications |
| Franchise Types | Franchise Outlet, Postal Agent |
| Who Can Apply | Individuals, shops, institutions (age 18+) |
| Educational Qualification | 8th class pass (Franchise Outlet); none (Postal Agent) |
| Security Deposit | Minimum ₹5,000 NSC (Franchise Outlet); none (Postal Agent) |
| Earning Basis | Commission per transaction |
| Application Mode | Offline (Annex-I / Annex-III at Divisional Office) |
| Selection Authority | Divisional Head |
| Agreement Term | 1 year initial, then 3 years per renewal |
| Application Window | Open year-round (evergreen scheme) |
About India Post
The Department of Posts works under the Ministry of Communications and runs the largest postal network in the world, with about 1.56 lakh post offices across the country. It handles mail, parcels, money remittance, savings, and insurance through its outlets. Even with this network, demand for more post offices continues, especially in new urban townships. The Franchise Scheme lets private parties meet this demand at the counter level. The official website is indiapost.gov.in. For other current openings, see the latest government recruitments on indiajobalerts.com.
How This Compares
The India Post Franchise Scheme sits between a regular post office and a private retail agency. A departmental post office is staffed by Department employees, while a franchisee is an independent party paid on commission. This is different from a Gramin Dak Sevak (GDS) Branch Post Office, which is salaried employment with the Department, not a franchise. Compared with a Common Service Centre (CSC) or a banking Business Correspondent, the entry cost here is low, since a Postal Agent needs no deposit and a Franchise Outlet starts at ₹5,000 in NSC. Based on a general reading of these models, the trade-off is that income depends on transaction volume rather than a fixed fee, which is editorial context, not part of the official scheme.
Selection Timeline & Agreement Terms
The scheme does not run on application open and close dates. It defines timelines for selection, authorisation, and review instead. The franchise is not transferable, and the business must commence within two weeks of the agreement.
| Stage | Timeline |
|---|---|
| Selection after application | Within 14 days (on ASP/SDI report) |
| Authorisation after NSC submission | Within 7 days |
| First review of the outlet | 6 months after opening |
| Final continuation decision | 1 year after opening |
| Initial agreement term | 1 year |
| Renewal term | 3 years, each subsequent time |
The scheme also states that the first review is held six months after the outlet opens, and the final decision on whether the outlet continues is taken one year after opening.
Franchise Types & Services Offered
The scheme allows two distinct types. Here is the breakdown of what each one can offer for your reference.
Franchise Outlet (full counter services): sale of stamps and stationery including philatelic items, booking of registered articles and parcels, speed post articles and parcels, money orders on the EDBO model (no money order below ₹100), e-post, direct agency for Postal Life Insurance (PLI) including collection of premia, retail and bill, tax, or fine collection, sale of revenue and CRF stamps, and e-governance and citizen-centric services. A Franchise Outlet signs a Memorandum of Agreement (Annex-II) and gives a security deposit. EDBO refers to the electronic Departmental Booking Office model for money orders.
Postal Agent (stamps and stationery only): sale of postal stamps and stationery including philatelic items. A Postal Agent signs no agreement and gives no security deposit. The agent buys stock from the Link Post Office by cash, with a minimum purchase of ₹300 each time, and earns 5% commission on the total purchase.
Eligibility Criteria
The eligibility criteria for the India Post Franchise Scheme cover age, education, and premises. Applicants should make sure they meet all conditions before applying.
Educational Qualification
- Franchise Outlet: 8th class pass from a recognised school.
- Postal Agent: No educational qualification is prescribed.
Age
- Above 18 years, with no upper age limit.
Other Conditions
- Individuals, institutions, and shops such as kirana stores, stationery shops, paanwalas, and small shopkeepers in urban and rural areas can apply.
- Proper, accessible premises with approved signage are required.
- The family of serving postal employees cannot apply in the same Division where the employee works.
- A franchise is not granted in Gram Panchayats where Panchayat Sanchar Sewa Kendras (PSSKs) already operate.
- Preference is given to postal pensioners and to those who can provide computer facilities.
Commission / Remuneration Structure
A franchisee earns commission on each transaction as set out in the Schedule of Commission.
| Service | Commission per Transaction |
|---|---|
| Booking of registered articles | ₹3.00 |
| Booking of speed post articles | ₹5.00 |
| Money order ₹100 to ₹200 | ₹3.50 |
| Money order above ₹200 | ₹5.00 |
| Registered and speed post articles beyond 1000 a month (both categories combined) | 20% additional commission on respective articles |
| Sale of postage stamps and postal stationery (incl. philatelic) | 5% of sale amount |
| Retail services incl. revenue and CRF stamps | 40% of commission earned by DoP (rounded to 40% or less) |
Monthly parcel business is paid on a slab basis, calculated separately for Registered Parcels and Speed Post Parcels.
| Monthly Parcel Business | Speed Post Parcel | Registered Parcel |
|---|---|---|
| Up to ₹5,00,000 | 10% | 7% |
| ₹5,00,001 to ₹25,00,000 | 15% | 10% |
| ₹25,00,001 to ₹1,00,00,000 | 20% | 13% |
| ₹1,00,00,001 to ₹5,00,00,000 | 25% | 16% |
| Above ₹5,00,00,000 | 30% | 20% |
Editorial illustration, not part of the official scheme: an outlet booking around 20 registered and 20 speed post articles a day across 25 working days would earn roughly ₹4,000 a month from those bookings alone, before stamp sales and parcel commission, so total income depends heavily on daily footfall.
Security Deposit / Investment
A Franchise Outlet must give a security deposit in the form of an NSC (National Savings Certificate), with a minimum of ₹5,000. The amount is fixed on the maximum daily financial transactions and can be increased based on average daily revenue. A Postal Agent needs no security deposit. There is no application fee for the scheme.
How to Apply for the India Post Franchise Scheme
Applications are accepted at the Divisional level throughout the year. Follow these steps from the scheme.
- Obtain the application proforma, Annex-I for a Franchise Outlet or Annex-III for a Postal Agent.
- Fill the form and attach the required proofs, including age proof and PAN or Form 60.
- Submit the form to the Sr./Superintendent of Post Offices of the concerned Postal Divisional Office.
- If selected, a Franchise Outlet applicant signs the Memorandum of Agreement (Annex-II) and submits the NSC.
- A Postal Agent is issued a Photo Identity Card (Annex-IV) within a week of selection.
Documents Checklist Before You Apply
- Age proof (18 years or above)
- PAN or declaration in Form 60
- Present and permanent address details
- Details of premises and proposed business timings
- Reference from a respectable person of the locality
- Business plan
- NSC for the security deposit (Franchise Outlet only)
Important Links
Applicants for the India Post Franchise Scheme are advised to visit the important links below for the official scheme PDF and application details.
| Resource | Link |
|---|---|
| Official Scheme PDF | India Post Franchise Scheme PDF |
| Official Website | indiapost.gov.in |
| Latest Articles | Latest Articles |
Should You Apply for the Franchise?
The scheme suits small shopkeepers, kirana and stationery owners, and postal pensioners who already have footfall and a fixed premises. Those who can provide computer facilities have an added advantage, since Franchise Outlets transact on computers and get preference. It does not suit applicants who expect a salaried government job or delivery work, because only counter services are franchised and earnings come from commission, not a fixed salary. The right choice of type matters. A Postal Agent is the lighter option with no deposit and no agreement, while a Franchise Outlet earns from a wider range of services but carries more obligations. As a Tier 2 note, a Franchise Outlet may grow into a steady side income where parcel and speed post volume is high, though this is editorial context. One honest trade-off is that Franchise Outlets must pay a minimum monthly guaranteed revenue to the Department, regardless of how much they earn.
FAQs — India Post Franchise Scheme
What is the India Post Franchise Scheme?
It is a scheme by the Department of Posts where private parties run postal counter services on commission. Delivery and transmission stay with the Department.
What are the two types of franchise?
There are two types, a Franchise Outlet that offers full counter services and a Postal Agent that only sells postal stamps and stationery.
Who can apply for the franchise?
Individuals, institutions, and shops such as kirana, stationery, and paan shops aged above 18 can apply. There is no upper age limit.
What is the minimum education needed?
A Franchise Outlet needs an 8th class pass from a recognised school. A Postal Agent needs no prescribed educational qualification at all.
How much security deposit is required?
A Franchise Outlet gives a minimum ₹5,000 in NSC, which can rise with daily revenue. A Postal Agent gives no security deposit.
How do I submit my application?
Fill Annex-I for an Outlet or Annex-III for an Agent, then submit it to the Sr./Superintendent of Post Offices of your Postal Divisional Office.
How long does selection take?
The Divisional Head selects the applicant within 14 days of the application, based on a report from the ASP or SDI of the area.
How much commission can a franchisee earn?
A franchisee earns ₹3 per registered article, ₹5 per speed post article, and 5% on stamp and stationery sales, plus slab-based commission on parcel business.
Which type is better for a small shop owner?
Editorial guidance: a Postal Agent suits a low-effort start with no deposit, while a Franchise Outlet suits owners wanting wider services and higher commission potential.
Can a franchisee deliver mail?
No. Only counter services are franchised. Delivery and transmission of mail always remain with the Department of Posts.
ABOUT THE AUTHOR
Sandeep Khati is the founder of India Job Alerts and a B.Tech in Computer Science from JGEC (2010). He started his career as a Systems Engineer at TCS and has been active in digital publishing since 2011, beginning with SearchDarjeeling.com(2011) and working as a web developer and designer at Darjeeling Informatics. Launched in April 2025, India Job Alerts is his most focused project — dedicated to publishing verified government and PSU job notifications for West Bengal, Sikkim, and All-India candidates. Every post is cross-checked against official notifications before publishing.. Know more