The Department of Posts in Financial Inclusion of the Unorganized Sector: A Case Study of SSP Disbursements in Visakhapatnam

Abstract

The purpose of this research is to assess the effectiveness of the role played by the Department of Posts (DoP) in financial inclusion of the unorganized sector. It examines, by studying the issues in disbursement of Social Security Pensions (SSPs) in a region, the strengths, weaknesses and opportunities that the DoP has and the threats it could face. The empirical study is confined to only one initiative of DoP, that is, SSP disbursements in Visakhapatnam district of Andhra Pradesh. The primary data was collected during the transition period when DoP was into SSP disbursements in urban as well as rural areas of Visakhapatnam on an experimental basis (February–April, 2015). Altogether eight hypotheses were tested for significance, based on the data collected through observation, interviews, survey and literature review. The sample for data collection consisted of DoP employees (from frontline to top management), representatives of local governing bodies in villages and SSP beneficiaries. The SWOT analysis of DoP helped in identifying issues in disbursements and perceptions (of both beneficiaries and DoP employees). The results show that DoP has been successful in achieving the first level of financial inclusion and has to work towards achieving the second level through collaborative partnerships.

Several suggestions and recommendations have been made for both DoP and policy-makers, which would help DoP in overcoming the challenges that it faces in financial inclusion. It is suggested that by looking at the bigger picture beyond disbursements, that is, financial inclusion of the bottom-of-the-pyramid customers, DoP will be able to emerge as a major player in the economic growth of the country.