DELHI PUBLIC SCHOOL AGRA

(Under the aegis of The Delhi Public School Society, East of Kailash, New Delhi)
BUSINESS STUDIES-XI
Ch4 BUSINESS SERVICES

INTRODUCTION -
Services: Separately identifiable, essentially intangible activities that provide satisfaction of wants, and are not
necessarily linked to the sale of a product or another service.

Types of services:

 Business services mean those services which help in the successful running of a business. Business cannot
be even imagined in the absence of these services. e.g. Banking, insurance, transport, warehousing and
communication.
 Social services: services that are generally provided voluntarily in pursuit of certain social goals eg to
improve the standard of living for weaker sections of society or to provide health care etc.
 Personal services: services which are experienced differently by different customers. For example,
tourism, recreational services, restaurants

Examples of Business services:  Banks for availability of funds; Insurance companies for getting their plant,
machinery, goods, etc., insured; Transport companies for transporting raw material and finished goods; Telecom
and postal services for being in touch with their vendors, suppliers and customers.

1. BANKING
Banking system of a country consists of various types of banks operating in the country. This system focuses
attention on mobilizing savings and surplus money of individual and institutions and providing funds to those on
loan basis who need these. Banking is defined as follows:

"Banking" means the accepting, for the purpose of lending or investment, of deposits of money from the
public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise.

“Banking Company" means any company which transacts the business of banking.
-BANKING REGULATION ACT, 1949

Types of Bank Accounts

Since banks fulfil the requirements of different sections of the society and these requirements differ widely, there
are different types of bank accounts which are as follows:
1. Savings account – aims at providing banking services to general public.People may open savings account
with small amount of deposit.Cash withdrawl is made through cheque or automatic teller machine ( ATM),
cash can be withdrawn any time.Banks pay interest to savings account holders though the rate of interest is
much lower than that of fixed and other deposit accounts.
2. Current account – aims at providing banking services to businessmen who make and receive payments
through banking system.Current account holders are free to make deposit and withdraw money without any
limitation on the number of withdrawls. Banks do not pay interest on the balance of money in current
accounts. Banks provide overdraft facility to current account holders.
3. Recurring deposit account – in a bank (in India also in post offices) is an account in which the depositor
deposits fixed amount of money every month for a specified period (usually 1 to 5 years). After this period
is over the account holder is entitled to withdraw his money along with interest.
 4. Fixed deposit account – is a term account. In a fixed deposit account money is deposited for a specified
period. This period may be a few months or a years. After this period is over, the account holder is entitled
to withdraw his money along with the interest credited by the bank. the rate of interest on fixed deposit is
more than the rate of interest on savings account.Further the rate of interest is linked to the maturity period
of the deposit.
5. Multiple option deposit account – also known as multi option deposit account is a type of fixed deposit
account with unique break-up facility which provides full liquidity along with benefit of higher rate of
interest than savings account.This account is linked with the depositor’s savings account.When the
depositor wants more money than the balance in his savings account, the extra money is transferred from
his multiple option deposit account to savings account on temporary basis keeping the multiple option
deposit account intact.In fixed deposit , the depositor is required to close his account in order to meet
requirement of extra money even on temporary basis.

Banking Services

1. Bank Draft
Bank draft is a payment instrument which is drawn by a bank’s branch instructing another branch to pay
the specified amount to the person(or organization) named in the bank draft.Another branch on which the
bank draft is drawn , is located at a different place .Bank draft is used for making payment to a party
located at a place different from the place of person making the payment.For getting a bank draft , the
person must deposit amount of bank draft and commission for issuing the the bank draft.
2. Banker’s Cheque
Banker’s cheque is also known as pay order, is issued by a bank to its customer after receiving the required
amount from him. The banker’s cheque is payable locally only. Banker’s cheque provides guarantee of
payment.In case of payment through a personal cheque , there is a possibility that the cheque may bounce
back either because of insufficient funds or technical reasons.
3. Real Time Gross Settlement
RTGS is a system of inter-bank settlement of transactions conducted amoung different banks on real time
basis and gross basis.Real time settlement means settling transactions at the time when they take place;
there is no time lag between transactions taking place and their settlement.Gross basis involves settling full
gross value of the transaction without deducting any amount from the transaction amount.
In RTGS system every bank alongwith the central bank is linked electronically.
4. National Electronic Fund Transfer
NEFT is a nation –wide system that facilitates individuals and organisations having bank accounts to
transfer funds from their accounts electronically to individuals or organisations having bank accounts.
However, the intending funds transferor must be authorized by the bank for this.
5. Bank Overdraft
Bank overdraft (simply called overdraft) is a facility provided by a bank to its current account holders who
are usually businessmen or organisations, to withdraw money over and above the money available in the
accounts.The excess money to be withdrawn is equivalent to the limit of overdraft amount as agreed
between the bank and the customers.It is a kind of short term loan facility to meet short-term funds
requirements. Some banks also levy nominal service charge for providing overdraft facility.Depending on
the size of the overdraft facility, the bank may require some kind of security like securing the overdraft
against tangible assets, personal guarantee of directors (in case of company), financial instruments ,
etc.The basic advantage of overdraft is that interest is payable only on the actual amount withdrawn and
not on the whole limit of the overdraft.
6. Cash Credit
Cash credit is a type of short – term cash loan provided by a bank to the borrower. It is meant for a specific
business project or boosting business growth with the lending period being up to 1 year.The bank offering
cash credit requires the borrower to provide some form of security for repayment of the loan.This security
may be in the form of hypothecation of movable or immovable assets. The borrower may withdraw the
 entire amount of cash credit in a single instalment or in a number of instalments according to its
requirements.
Difference between cash credit and bank overdraft?

1. Cash credit is based on the value of assets hypothecated for obtaining cash credit. Such assets should be
related to business operations like fixed assets (land, building, machinery) or working capital (raw
materials, finished goods, etc) . For obtaining overdraft, non-business assets may be provided as security
(like shares, debentures, national saving certificate, etc). Sometimes even personal guarantee of the
borrower is sufficient for availing overdraft facility.
2. In the case of cash credit, the customer’s account never shows debit balance but in the case of utilizing
overdraft facility, the account shows debit balance.
3. In the case of cash credit, the repayment period and mode of repayment are settled in advance with mutual
agreement between the bank and the customer. For example monthly or quarterly instalments.In the case of
overdraft, repayment takes place automatically when the customer deposits any amount of money.

E Banking (electronic banking)

E banking involves conducting banking transactions by customers electronically.

e banking is a service provided by many banks that allows a customer to conduct banking transactions such as
managing savings , checking accounts , applying for loans or paying bills over the internet using a personal
computer or laptop or mobile phone. The range of e-banking is electronic funds transfer (EFT) , automated teller
machine(ATM) credit card / debit card and digital cash.
The main forms of e – banking / range of services offered by e- banking are :

 Electronic Funds Transfer System ( EFTS) – it is a system by which a bank transfers wages and salaries
directly from the company’s account to the accounts of employees of the company.
 Automated Teller Machine (ATM) – It is a self service terminal open 24 hrs a day. The customer inserts
his plastic card into the terminal and then inserts the identification code. the machine responds by giving
cash
 Point of sales (POS) – a point of sale terminal is located in the shop /store
 Credit cards – It is a plastic card issued by a bank to its customers , containing name, photo , and signatures
of the customer and the name of the bank.The customer can buy goods and services at specified outlets by
showing his credit card upto the credit limit ( fixed by the bank) which depends on the credit – worthiness
of the customer.

Benefits of e – banking to customers

1. e – banking provides 24 hours a day X 365 days a year services to the customers.
2. Customers can make transaction from office or house or while traveling via mobile phones.
3.There is greater customer satisfaction through e- banking as it offers unlimited access and greater
security as they can avoid traveling with cash.
4. It inculcates a sense of financial discipline by recording each and every transaction.

Benefits of e – banking to Banks

1. e – banking provides competitive advantage to the bank , adds value to the banking relationship.
2. e- banking provides unlimited network to the bank and is not limited to the number of branches. Any PC
connected to a modem and a telephone having an internet connection can provide cash withdrawl needs of
the customer.
3. Load on branches can be reduced by establishing centralized database.
4.e – banking lowers the transaction cost.
WHAT ARE DIGITAL PAYMENTS?

A digital payment, sometimes called an electronic payment, is the transfer of value from one payment account to
another using a digital device such as a mobile phone, POS (Point of Sales) or computer, a digital channel
communications such as mobile wireless data
In simple words, a digital payment occurs when goods or services are purchased through the use of various
electronic mediums. There is no use of cash or cheques in this type of payment method.
The Government of India has been taking several measures to promote and encourage digital payments in the
country.
As part of the ‘Digital India’ campaign, the government aims to create a ‘digitally empowered’ economy that is
‘Faceless, Paperless, and Cashless’.

TYPES/ METHODS OF DIGITAL PAYMENTS

1. BANKING CARDS
Banking cards offer consumers more security, convenience, and control than any other payment method.
The wide variety of cards available – including credit, debit and prepaid – offers enormous flexibility, as
well. These cards provide 2 factor authentication for secure payments e.g secure PIN and OTP. RuPay,
Visa, MasterCard are some of the example of card payment systems.
2. ELECTRONIC FUND TRANSFER (EFT)
National Electronic Funds Transfer (NEFT)
It is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals
can electronically transfer funds from any bank branch to any individual having an account with any other
bank branch in the country participating in the Scheme.
Real Time Gross Settlement (RTGS)
RTGS is a funds transfer system where money is moved from one bank to another in ‘real-time’, and on
gross basis. ‘Real-time’ means that the payment transaction isn’t subject to any waiting period and gross
settlement means that the money transfer is completed on a one to one basis without clustering with
another transaction
3. MOBILE WALLETS
A mobile wallet is a way to carry cash in digital format. You can link your credit card or debit card
information in mobile device to mobile wallet application or you can transfer money online to mobile
wallet. Paytm, Freecharge, Mobikwik, Oxigen, Ruppee, Airtel Money, Jio Money, SBI Buddy, itz Cash,
Citrus Pay, Vodafone M-Pesa, Axis Bank Lime, ICICI Pockets, SpeedPay etc are some of the examples.
4. AADHAAR ENABLED PAYMENT SYSTEM (AEPS)
AEPS is a bank led model which allows online interoperable financial transaction at PoS (Point of Sale /
Micro ATM) through the Business Correspondent (BC)/Bank Mitra of any bank using the Aadhaar
authentication.
5. POINT OF SALE
A point of sale (PoS) is the place where sales are made. On a macro level, a PoS may be a mall, a market or
a city. On a micro level, retailers consider a PoS to be the area where a customer completes a transaction,
such as a checkout counter. Necessary conditions for service initiation includes -Handheld Device with
card and /or bio-metric reader, merchant bank a/c and internet connectivity GPRS/ Landline
6. UNSTRUCTURED SUPPLEMENTARY SERVICE DATA (USSD)
The innovative payment service *99# works on Unstructured Supplementary Service Data (USSD)
channel. This service allows mobile banking transactions using basic feature mobile phone, there is no
need to have mobile internet data facility for using USSD based mobile banking.
7. UNIFIED PAYMENTS INTERFACE (UPI)
 Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile
application merging several banking features, seamless fund routing & merchant payments into one hood.
Each Bank provides its own UPI App for Android, Windows and iOS mobile platform(s).

2. INSURANCE

Life is full of uncertainties and risks. Buildings may get wholly or partially destroyed due to fire , storms ,cyclones
, etc. Both life and property are exposed to risks of accidents , e.g death or serious injury caused by an accident.
Insurance is a means of providing against loss caused by natural or manmade factors.
It is a device by which the loss likely to be caused by an uncertain event ( fire, theft of goods) is spread over a
number of persons who are exposed to it and who are prepared to insure themselves against such an event.
Insurance is a form of contract under which insurer agrees in consideration of insurance premium to pay an agreed
sum of money to the insured to make good for loss , damage or injury caused by some uncertain event or on expiry
of contract period.
It is a contract or agreement under which one party agrees in return for a consideration ( called ‘premium’, which
may be monthly, quarterly , half yearly or annually ) to pay an agreed amount of money to another party to make
good a loss , damage or injury to something of value.
Under the contract of insurance , the person whose risk is insured is called insured and the firm which insures the
risk of loss is known as insurer.

Fundamental Principles of Insurance:

The fundamental principle of insurance is that an individual or a business concern chooses to spend a definite
amount of money in place of a possible huge amount involved in an indefinite future loss.
The amount of premium payable by each policyholder is so fixed that the amount collected by way of premium
from all the policyholders should be enough to pay for the losses actually suffered by the policyholder(s) and to
cover the expenses of the insurance company and leave a reasonable margin of profit.

Principles of Insurance are :

 Utmost good faith – utmost good faith implies that the applicant for an insurance policy should reveal all
material facts about the subject to be insured. A material fact is one which would affect the judgement of
the insurer to calculate the degree of risk involved in the insurance contract.Since the insurer may not have
relevant resources for verifying the facts provided by the applicant , the former relies on the facts provided
by the insured.Therefore , it the applicant has not provided any material fact or provided any fact that at the
time of applying for insurance policy turns out to be wrong , the insurer has option to declare the insurance
contract as void which relieves him from responsibility that arises out of the insurance contract.
 Insurable interest - insurable interest means true valid, determinable and direct economic interest of
policyholder in the continued existence or safety of property or person insured.In the business context , a
trader has insurable interest in his goods, a creditor has insurable interest in the life of his debtor till the
loan is due to be paid, etc.Insurable interest is essential in every insurance contract, in the absence of
insurable interest insurance contract becomes null and void and cannot be enforced in a court of law.In the
case of life insurance , insurable interest of the policyholder must exist at the time of taking policy for the
person insured.It is not necessary that he has insurable interest at the time of death of the insured person.A
creditor has insurable interest in the life of his debtor during the period of non-payment of loan.After
payment of loan , his insurable interest does not exist.In marine insurance , insurable interest must exist at
the time of loss.It may or may not exist at the time of entering insurance contract. In fire insurance ,
insurable interest must exist both at the time of contract as well as at the time of loss.
 Indemnity – means a promise to compensate in case of loss. The objective of any insurance contract is to
place the insured as nearly as possible in the same financial position as he was before the occurrence of
loss.Thus , an insured is entitled to recover the amount of loss only ; he is not allowed to take profit
.Suppose A has insured his house for Rs20 lakhs including value of the household goods.If the house is
 destroyed by fire and A is able to save household goods of value Rs.2 lakhs, he is entitled to get Rs18 lakh
as compensation from the insurer though the policy may be of Rs20 lakh. All insurance contracts except
life insurance contracts are contracts of indemnity.Principle of indemnity is not applicable to life insurance
as no amount of money can compensate the loss arising out of premature death of the insured
person.Therefore , the total insured amount is paid either on maturity of policy or death of the insured. That
is the reason that life insurance contract is known as a simple contract and not an indemnity contract.
 Proximate Cause – causa proxima is a Latin term which means the nearest cause.This principle implies
that the insurer in an insurance contract is liable only for insured perils and not for uninsured perils.The
insured can claim compensation when the loss has been caused by the insured perils and the cause has
been proximate(nearest) to the loss. Thus , the insurer is not liable for loss caused by non-proximate cause
or remote cause.
 Doctrine of Subrogation – involves the insurer getting all the rights to the property insured after he has
paid compensation for the loss of the property.
 Contribution – means right of an insurer who has paid claim on an insurance policy to call upon other
insurers to contribute to the payment.When an insured has taken more than one policy on the same
property, he will not be entitled to claim from each insurer more than proportion of the loss for which they
are liable.He cannot claim more than total loss from all insurers put together.

The principle of contribution is applicable when the following conditions are satisfied:
(a) Insured must be the same person
(b) All the policies must be in force at the time of loss
(c) All the policies cover the same risk.

The proportionate contribution of each insurer is calculated as follows:

Sum insured with an insurer * Amount of loss
Total sum insured by all insurers

 Mitigation of Loss –implies that the insured should take reasonable steps for saving the property insured
in the case of mishap which causes loss to the property.

Life Insurance
A life insurance policy is basically a protection against the uncertainty of life , that is death.
Life insurance may be defined as a contract in which the insurance company ( called insurer) indertakes to insure
the life of a person ( called assured ) in exchange of a sum of money called premium.( which may be paid in one
lump sum or monthly, quarterly , half yearly or yearly ) and promises to pay a certain sum of the assured or on
expiry of certain period.

Importance of Life Insurance

1. Life insurance provides protection to the family at premature death of an individual.
2. It gives adequate amount at an old age when earning capacities are reduced.
3. Life insurance is not only a protection but is a sort of investment because a certain sum is returnable to the
assured at the time of death or at the expiry of a certain period.
Main elements of a Life Insurance Contract
(i) The life insurance contract must have all the essentials of a valid contract- offer and acceptance, free consent ,
capacity to enter into a contract , lawful consideration and lawful object.
(ii) The contract of life insurance is a contract of utmost good faith . the assured should be honest and must
disclose all material facts about his health to the insurer.
(iii) in case of life insurance policy , a person has insurable interest in his / her own life , in the life of his/her
spouse , or in the lives of his/her children. The assured must have insurable interest at the time when the insurance
is affected, at the time of maturity it is not necessary. It is to be noted that an employer has insurable interest in the
lives of his employees and similarly a creditor has insurable interest in the life of the debtor upto the amount of
debt.
(iv) Life insurance contract is not a contract of indemnity. The life of a human being canot be compensated and
only a specified sum of money is paid..That is why the amount payable in life insurance on the death of the
assured is fixed in advance.

General Insurance

Fire Insurance
Fire Insurance is a contract whereby the insurer , in consideration of the premium paid , undertakes to make good
any loss or damage caused by a fire during a specified period upto the amount specified in the policy. A claim for
loss by fire must satisfy the following two conditions ;
(i) there must be actual loss
(ii) Fire must be accidental and non – intentional
Main elements of a fire insurance contract :
(i) In fire insurance , the insured must have insurable interest in the subject matter of the insurance . Insurable
interest must be present both at the time of insurance and at the time of loss.
(ii) The contract of fire insurance is a contract of utmost good faith.
(iii) The contract of fire insurance is a contract of strict indemnity.
(iv) The insurer is liable to compensate only when fire is the proximate cause of damage or loss.

Marine Insurance
Definition of Marine Insurance is Marine Insurance is a contract of indemnity whereby the insurer undertakes to
indemnify the insured for the loss or damage to the ship, cargo or freight caused by sea perils in consideration of a
specified premium.
A marine insurance contract is an agreement wherein the insurer ( called underwriter) undertakes to compensate
the insured ( generally the owner of a ship or cargo) for complete or partial loss at sea.Marine insurance provides
protection against loss by marine perils or perils of the sea , e.g. collision of ship , theft of goods , etc.

Marine insurance is slightly different from other types of insurance. There are three things involved – ship
or hull, cargo or goods, and freight.

1. Ship or Hull Insurance: This is an insurance policy for indemnifying the insured for losses caused by damage
to the ship.
2. Cargo Insurance: The cargo while being transported by ship is subject to many risks, e.g. risk of theft, loss of
goods. These may be at the port or on voyage. Thus, an insurance policy can be issued to cover against such risks
to cargo.
3. Freight Insurance: freight insurance is for reimbursing the loss of freight to the insured (shipping company), if
the cargo does not reach the destination due to damage or loss in transit because in such a case freight charges are
not paid to the insurance company.

Main elements of a marine insurance contract:

1. The contract of marine insurance is a contract of indemnity.
2. The contract of marine insurance is a contact of utmost good faith.
3. Insurable interest must exist at the time of loss but not necessary at the time when the policy was taken.
Following persons have insurable interest in marine adventure:
a. Owner of the goods
b. Buyer of the goods
c. Insurer
d. Lender of money on mortgage of ship/cargo in respect of the loan .
e. Master and crew of a ship in respect of their wages.
4. The principle of causa promima will also apply to a marine insurance contract.If a loss is caused by several
reasons, then the nearest cause of loss will be considered.
Difference between Life, Fire and Marine Insurance:
Basis Life Insurance Fire Insurance Marine Insurance
1. Subject matter The subject matter of The subject matter is any The subject matter is a ship ,
insurance is human life physical property or assets cargo or freight
2.Element Life insurance has the Fire insurance has only the Marine insurance has only the
elements of protection element of protection and element of protection
and investment or both not the element of
investment
3. Insurable interest Insurable interest must Insurable interest on the Insurable interest must be
be present at the time subject matter must be present at the time when
of effecting the policy , present both at the time of claim falls due or at the time
but need not be effecting the policy as well of loss only.
necessary at the time as when the claim falls due
when the claim falls due
4. Duration Life insurance policy Fire insurance policy Marine insurance policy is for
usually exceeds 1 year usually does not exceed one year or period of voyage
and is taken for longer one year or mixed.
periods ranging from 5
to 30 years or whole
life.
5. Loss measurement Loss is not measurable Loss is measurable in terms Loss is measurable in terms
in terms of money of money of money
6.Indemnity Life Insurance contract The contract of fire The contract of marine
is not a contract of insurance is a contract of insurance is a contract of
indemnity. The life of a strict indemnity . in the indemnity . in the event of
human being cannot be event of loss , the insured loss , the insured can recover
compensated and only a can recover the actual only the actual amount of loss
specified amount of amount of loss or fro the insurance company
money is paid. That is maximum amount of policy
why the amount payable , whichever is lower
in life insurance on the
death of the assured is
fixed in advance
7.Surrender value The assured can The insured cannot The insured cannot surrender
surrender the policy surrender the policy , the policy , hence , a marine
before its maturity. So , hence, a fire insurance does insurance does not have any
a life insurance policy not have surrender value or surrender value or paid-up
has a surrender value or paid –up value value
paid –up value
8.Policy amount One can insure for any In fire insurance the In marine insurance , the
amount in life insurance amount of the policy amount of the policy cannot
cannot be more than the exceed the market value of
value of the subject matter the ship or cargo
9.Contingency of risk There is an element of The event i.e. destruction The event i.e. loss at sea may
certainty . the event, i.e. by fire may not happen. not occur and there may be
death or maturity of There is an element of no claim. There is an element
policy is bound to uncertainty and there may of uncertainty
happen be no claim
Health Insurance
Health insurance is insurance against the risk of incurring medical expenses. By estimating the overall health care
expenses, health insurer may devise plan to ensure that the money is available to the insured at right time and in
right amount to meet the medical expenses. The escalating cost of medical services today has increased the
popularity of health insurance as this cost is sometimes too high to be borne by common man. Health insurance
may be undertaken on personal basis or on group basis. While personal health insurance is undertaken by the
person insured , group health insurance is sponsored by an employer for the benefit of his employees. Some of the
existing health insurance schemes available presently are for individual, family, group, senior citizen , long term
health care and insurance cover for specific diseases. Disability resulting from illness or accident may be peril to
family because it not only cuts off income but also creates large medical expenses. Health insurance provides the
following types of covers :
(i) Medical expenses – it covers the expenses of hospitalization / nursing home bills and doctors services.
(ii) Disability income – it replaces the income lost while the insured is unable to work.

3. COMMUNICATION SERVICES

Communication services are helpful to business for establishing links with the outside world viz., suppliers,
customers, competitors etc. The main services which help business can be classified into postal and telecom

1. Postal Services

Traditionally, postal services in India have been provided by Department of Posts, Government of India. However,
over the period of time, courier companies have emerged in the private sector which provide mail services. Postal
services include mail services and other services:
 Mail Services
Mail services are provided by Department of Posts and courier organisations.For catering the postal service need
of the country. Department of Posts has created 22 postal circles. These circles manage the day to day functioning
of various head post offices , branch psot offices, and sub – post offices.India has the largest postal network in the
world with over 1,55,000 post offices.Department of posts provide the following type of services:
1. Ordinary Post – includes collection of letters (envelope, post card, inland letter,etc) from letter boxes and
delivery of these letters at destinations. However, the post offices do not provide any proof to the service
userswhether they have posted the letters or not.
2. Under Postal Certificate – if a sender of any letter wants to receive a certificate that he has posted the letter, he
can use under postal certificate (UPC) service provided by the Department of Posts at a significantly lower cost
than a registered post. In UPC, the sender of the letter gets a certificate from the post office at which he has
delivered the letter to be dispatched. However, he does not get a confirmation from the post office that the letter
has been delivered to the recipient.
3. Registered Post - in registered post, the sender receives a receipt from the concerned post office that he has sent
the letter. At the time of delivery of the registered post, the delivery postman delivers the post only after getting
the signature of the recepient or his representative as a proof that the letter has been duly delivered.
4. Parcel – parcel, or parcel post, is a type of service provided by post offices to send articles which are too heavy
to be sent by regular post.The maximum weight of articles under registered parcel is 10 kg.
5. Speed Post – It works on the pattern of courier service. Speed post service is also available for sending posts to
foreign countries.
6. Courier Service Private Operators who provide mail services to the public. They collect letters and parcels and
deliver them at the place of the addressee.  No postage is required to be affixed on letters and parcels if sent
through couriers.
Other Services – besides providing mail services, Department of Post provides a number of other services which
are as follows:
(i) Remittance of money through money order and postal orders.
 (ii) Greeting post – a range of delightful greeting cards for every occasion and media post.
(iii) An innovative and effective media for corporates to advertise its products through post cards, inland
letters, envelopes, etc.
(iv) Passport Delivery services
(v) E- bill post to collect bill payment across counters for BSNL
(vi) International money transfer in collaboration with Western Union Financial Services , USA

 Financial Services- Recurring deposits, Kisan vikas patra, National saving certificate, Monthly income
scheme and Public provident fund

Telecom Services

Telecom services are of following types:

1. Fixed Line Telephone – fixed line telephone is a non-portable two way communication device both for short
distance and long distance including overseas locations.
2. Cellular Phone – cellular phone is a cordless mobile communication device which facilitates two way
communication in a wide geographical area.Cellular phone may be used for voiced message as well as for non-
voiced message, known as Short Message Service (SMS)
3. Fax – fax or facsimile machine is a device which is used for sending copy of documents from one location to
another. At the receiving end, copies of documents are received by the fax machine through telephone line.
4. Cable Services – cable services are linkages and switched services within a specified licensed area to operate
media services which are essentially one-way and entertainment related services.
5. DTH – direct to home is a satellite – based media service provided by some companies like Dish TV, Tata Sky,
Big TV, etc.
6. VSAT Service – very small aperture terminal is also a satellite based communication like DTH service but it
uses different technology and has two-way communication facility also.Examples are online share trading of
National Stock Exchange and BSE. It can be used to provide innovative applications such as tele-medicine,
newspapers on-line, market rates and tele-education even in the most remote areas of our country.