What is e-payment?
E-payment is a service available to organizations and businesses that enables them to collect their bills or other payments on-line, using the post office network of India Post. India Post collects the payment on their behalf. India Post launched the e-payment service in year 2006.
This smart mode of collecting payment is very convenient for organizations or businesses as it simplifies the task of collection from millions of customers who are dispersed all over the country. The payments collected are consolidated and paid to the biller organization or business through a single window by the post office. It is for this reason that it is also referred to as a ‘many-to-one’ solution.
Typically, taxes, telephone bills, electricity bills, school fees, university fees and other such bills can be collected on behalf of the business or organization. This service was previously called eBillPost by India Post.
Out of more than 1,54,000 post offices dotting the country, more than 14000 offer e-payment services with the aim of leveraging the advantages of modern technology for the benefit of India Post customers.
How does the e-payment service work for you?
- Any business or organization, Government or Private that is interested in the service as a ‘biller’, needs to contact the Chief Post Master General of the relevant Post Office with an application/business proposal and a filled-in form that is required for enrolment and for the creation of biller id.
- The enrolment can be done on a National Biller basis or as a Circle Biller.
- On acceptance of the proposal, a User id, Password and Biller id gets generated and communicated to the biller. This happens automatically.
- Customers of the organization (biller) present their bills and payments to the counter of the post office. They are issued a receipt. The Post Offices accounts for and processes the cheque/demand draft deposited as payment.
- All collections made by the post office on behalf of the biller organization are consolidated using web based software. Post consolidation, the biller is paid centrally by cheque from a Post Office of his choice. The payment is made as per a predetermined schedule.
- The biller has the facility of receiving information on payments collected on-line. The data is available to the biller at any time. Billers can select five fields such as name, telephone, application number etc for the purpose of their MIS.
What are the advantages of the e-payment service?
The e-payment service offered by India Post is a great boon to the public that needs to make a payment as well as the organization or business that needs to collect money for the product or service provided to the public.
It is convenient for the public as no other entity has the large reach of India Post – a reach that allows them to pay their bills conveniently at a Post Office located conveniently close by. Also, very few organizations enjoy the trust that the public has for India Post.
The e-payment service allows businesses to collect payments from millions of their customers who are dispersed throughout the country. The bill payments are collected quickly and simply from one source. They can do so without having to set up their own expensive collection infrastructure. Moreover, the post office performs all the functions of collection, processing and accounting for the biller.
The MIS available on-line, at all times, enables billers to manage their funds and cash flows more efficiently as they have ready information of their collections status.
The vital role of consolidator performed by India Post saves the biller all the collection costs and hassles associated with manpower, equipment and the setting up and running of a collection infrastructure.
The costs for availing such e-payment services are very affordable. The table below gives the rates prevailing currently:
Present rates for e-Payment
|Up to Rs. 1000 /-||Rs. 5/-|
|Rs. 1001 to 2500/-||Rs. 10/-|
|Rs. 2501/- to Rs. 5000/-||Rs. 15/-|
|Above Rs. 5000/-||Rs. 20/-|
Organizations that can benefit from this service
Any organization from the Government or Private sector or business that needs to collect payments from a large number of customers can benefit from this trusted and safe service. The most obvious examples that come to mind include service providers in education, telecom, insurance; utility service providers such as suppliers of water and electricity; authorities responsible for collecting income tax, property tax, vehicle tax, octroi; and the manufacturing sectors.