THE POST OFFICE ACT, 2023

TAG: GS 2: POLITY

THE CONTEXT: The government has passed the Post Office Act of 2023 which intends to streamline the delivery of citizen-centric services and extend government benefits to the country’s most distant areas, therefore improving the quality of life.

EXPLANATION:

The Indian Post Office Act, 1898, was superseded by the Post Office Act of 2023.

PROVISIONS OF THE POST OFFICE ACT 2023 AND POST OFFICE ACT 1898

Post Office Act 1898 Post Office Act 2023
The Act provides for the issuance of postage stamps as per the Rules prescribed by the central government. The Act also states that the Post Office will have the exclusive privilege of issuing postage stamps.
The Act provides that wherever the central government establishes posts, it will have the exclusive privilege of conveying letters by post, as well as incidental services such as receiving, collecting etc. The Act does not contain such privileges.
The Act specifies the services provided by the Post Office to include: (i) the delivery of postal articles including letters, postcards, and parcels, and (ii) money orders. The Act provides that the Post Office will provide services prescribed by the central government.

 

Under the Act, the Director General has powers to decide the time and manner of delivery of postal services. Under the Act, the central government can notify charges for postal services through notifications. As per the Act, the Director General may make regulations to specify charges.  The Director General may also make regulations on supply and sale of postage stamps and postal stationery.
The Act specifies various offences and penalties.  For instance, theft, misappropriation etc. The Act does not provide for any offences or consequences, except one.  Amounts not paid or neglected by a user will be recoverable as arrears of land revenue.
The Act exempts the government from any liability related to the loss, mis delivery, delay or damage to a postal article.  This does not apply where the liability is undertaken by the central government in express terms.  Officers are also exempt from such liability unless they have acted fraudulently or wilfully. The Act retains these provisions.  However, it provides that instead of the central government, the Post Office may prescribe the liability regarding its services.

WHY THERE IS A NEED TO REPEAL THE ACT?

  • The Indian Post Office Act, 1898 was enacted in 1898 with a view to govern the functioning of the Post Office in India which was primarily related to mail services provided through the Post Office.
  • With time the services available through the Post Office have diversified beyond mails and the Post Office network has become a vehicle for delivery of a variety of citizen centric services. Further with India Post Payments Bank the postal department has entered banking too.
  • All this necessitated the repeal of the said Act and enactment of new law in its place.

Criticism of the Post Office Act of 2023

  • The Act does not specify procedural safeguards for interception of articles transmitted through India Post. Lack of safeguards may violate freedom of speech and expression, and right to privacy of individuals.
  • The grounds for interception include ‘emergency’, which may be beyond reasonable restrictions under the Constitution.
  • The Act exempts India Post from liability for lapses in postal services. Liability may be prescribed through Rules by the central government, which also administers India Post.  This may lead to conflict of interest.
  • The Act does not specify any offences and penalties. For instance, there are no consequences for unauthorised opening of postal articles by a postal officer.  This may have adverse implications for the right to privacy of consumers.

India Post Payments Bank

  • It was founded on September 1, 2018.
  • The Government of India owns 100% of the company.
  • It launches pilot branches to begin its revolutionary journey.
  • In Jharkhand’s Ranchi and Chhattisgarh’s Raipur, pilot branches were established.
  • Leveraging India’s vast postal infrastructure with 1,55,000 Post Offices and 3,00,000 postal employees.
  • It aims establish a bank that accessible, affordable, and trusted bank for all citizens.
  • Empowering Financial Inclusion:
    • IPPB is committed to serving the unbanked and underbanked.
    • Contributed to the vision of a less cash economy and Digital India.
    • Ensured equal opportunities for financial security and empowerment.

SOURCE: https://economictimes.indiatimes.com/wealth/save/new-post-office-act-2023-comes-into-effect-from-june-18-check-details/articleshow/111103940.cms?from=mdr

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