Indian Post Office Franchise Scheme: Apply & Earn Commission

Indian Post Office Franchise Scheme is an initiative by the Department of Posts, Ministry of Communications, Government of India that allows individuals, shops, and institutions to provide postal counter services on behalf of India Post through two models, which are Franchise Outlet and Postal Agent. Minimum age is 18 years and the minimum qualification for a Franchise Outlet is a Class 8 pass. Apply at your nearest Postal Divisional Office or visit indiapost.gov.in/vacancies/franchise.

Introduction of Indian Post Office Franchise Scheme: A Brief Insight

India has the largest postal network in the world, with over 1.56 lakh post offices – yet demand for postal services continues to grow, especially in newly developing urban areas, industrial zones, highways, and places where opening a full-fledged post office is not feasible. To bridge this gap and extend postal services to every corner of the country, the Department of Posts, Ministry of Communications, Government of India, introduced the Indian Post Office Franchise Scheme.

The scheme operates through two models. The first is a Franchise Outlet which is a counter service point where the franchisee provides a full range of postal services, including booking of registered articles, speed post, money orders, PLI premium collection, bill payments, e-governance services, and sale of stamps.

The second is a Postal Agent, a simpler model where the agent only sells postal stamps and stationery. Delivery and transmission of mail in both models continue through the Department of Posts.

Anyone above 18 years with a minimum Class 8 qualification and suitable premises can apply for a Franchise Outlet. For a Postal Agent, there is no educational qualification required, just proper premises and an age of 18 years. Postal pensioners and those with computer facilities receive priority in Franchise Outlet selection. A minimum security deposit of Rs. 5,000 in the form of NSC is required for Franchise Outlets; no deposit is needed for Postal Agents.

A Franchise Outlet earns Rs. 3 per Registered Article, Rs. 5 per Speed Post Article, 5% on stamps and stationery sales, and commission ranging from 10% to 30% on Speed Post Parcel monthly business. A Postal Agent earns 5% commission on every purchase of stamps and stationery. Commission is paid monthly by the Department of Posts. The selection decision is taken within 14 days and authorisation is given within 7 days after the security deposit submission.

Entrepreneurs who want to explore other self-employment opportunities backed by the Government of India can also check the Pradhan Mantri Mudra Yojana, which provides collateral-free loans up to Rs. 10 lakh through empanelled banks for setting up or expanding small businesses across India. Those interested in rural postal services can explore the Gramin Dak Sevak Scheme, under which India Post recruits delivery and counter staff for rural post offices across the country.

Entrepreneurs and anyone looking for more self-employment and business opportunity schemes available under the Central Government can explore all available programmes on our Central Government Welfare Schemes page.

Benefits Provided to Eligible Beneficiaries

The Department of Posts provides the following commission and benefits to selected franchisees and postal agents under the Indian Post Office Franchise Scheme:

Commission for Franchise Outlet

Monthly Business Commission – Speed Post Parcel and Registered Parcel

Commission for Postal Agent

• 5% commission on the total purchase value of stamps and postal stationery, including philatelic items
• Minimum purchase value per transaction: Rs. 300
• Purchase made by cash only on production of a Photo Identity Card

Other Benefits

• Standard India Post signage is provided free of cost for uniform branding
• Pre-printed Barcode Stickers provided using Point of Sale Software – for Franchise Outlets
• Induction training provided by the Sub-Divisional Inspector of the area
• Operating manual and accounting procedures provided at Head Post Offices and Sub-Post Offices
• Annual awards by the Circle Head for Franchise Outlets doing good work
• Commission is paid monthly by the Department of Posts
• Flexibility to work around the clock beyond the minimum defined hours

Eligibility Conditions Required to be Fulfilled

The Department of Posts has defined separate eligibility conditions for the two types of franchises under the Indian Post Office Franchise Scheme. Applicants must fulfil all conditions before submitting their application to the concerned Postal Divisional Office:

Eligibility for Franchise Outlet

• Individuals, institutions, organizations, and other entities such as corner shops, paanwalas, kiranawalas, stationery shops, and small shopkeepers in urban and rural areas are eligible
• Colleges, polytechnics, universities, professional colleges, new upcoming urban townships, Special Economic Zones, major highway projects, and upcoming industrial centres are also eligible
• Age must be above 18 years – no upper age limit
• Minimum educational qualification: Class 8 pass from a recognised school
• Must have proper, appropriately located, and accessible premises with suitable display of approved signages
• Must be willing to make necessary investments to conduct the business
• Must be willing to provide computer facilities for transacting postal business
• Must submit a business plan and one reference from a respectable person in the locality
• Must provide a security deposit in the form of NSC, a minimum of Rs. 5,000

Preference Given To

• Department of Posts pensioners
• Applicants who can provide computer facilities

Eligibility for Postal Agent

• Individuals, institutions, organizations, corner shops, paanwalas, kiranawalas, and stationery shops in urban and rural areas are eligible
• Age must be above 18 years – no upper age limit
• No prescribed educational qualification
• Must have proper premises with adequate postal stamps and stationery available
• No Memorandum of Agreement required
• No security deposit required

Who Is Not Eligible

• Family members of serving postal employees are not eligible to apply for a franchise in the same Division where the postal employee is working – this includes spouse, children, stepchildren, and dependent wards
• Franchise Outlets cannot be opened in Gram Panchayats where Panchayat Sanchar Sewa Kendras (PSSKs) are already functioning under the Panchayat Sanchar Sewa Yojana Scheme

Documents Required to be Attached

Applicants must submit the following documents along with the prescribed application form to the Senior Superintendent or Superintendent of Post Offices of the concerned Postal Divisional Office:

For Franchise Outlet Applicants

• Completed Application cum Franchise Outlet Agreement Form (Annex-I) – typed on plain paper as per the prescribed format
• Age proof confirming the applicant is 18 years or above
• Income Tax PAN Card or GIR Number – if not available, declaration in Form 60
• Proof of premises – whether owned, rented, or leased – and period of validity of the rent or lease agreement if not owned
• Copy of PPO (Pension Payment Order) – for Department of Posts pensioners only
• Business plan covering proposed opening hours, investments, market conditions, marketing proposals, and customer base
• One reference from a respectable person of the locality
• Security Deposit in the form of NSC (National Savings Certificate) – minimum Rs. 5,000
• Details of computer availability if applicable

For Postal Agent Applicants

• Completed Application cum Postal Agent Agreement Form (Annex-III) – available at the concerned Postal Divisional Office in the regional language or Hindi
• Date of birth proof confirming the applicant is 18 years or above
• Identification mark details
• Copy of PPO – for Department of Posts pensioners only
• Details of the premises or shop from where the business will be conducted

How to Apply for the Indian Post Office Franchise Scheme

The Indian Post Office Franchise Scheme accepts applications offline through the concerned Postal Divisional Office. There are two separate application processes – one for Franchise Outlets and one for Postal Agents. The application form is available at all Head Post Offices and Sub-Post Offices of the concerned area.

Method 1: Apply for Franchise Outlet

Step 1: Collect the Application cum Franchise Outlet Agreement Form (Annex-I) from the nearest Head Post Office, Sub-Post Office, or concerned Postal Divisional Office. The form is also available for download at indiapost.gov.in.

Step 2: Fill in all details carefully – your full name, nationality, age, PAN or GIR number, present and permanent address, location from where business will be conducted, proposed business timings, premises details, including whether owned or rented, distance from nearest post office, current occupation, computer knowledge, and reference details.

Step 3: Prepare a business plan covering proposed opening hours, investment details, market conditions, proposals for marketing postal products, awareness of customer base, and your role in the local community.

Step 4: Arrange a Security Deposit in the form of NSC (National Savings Certificate) – minimum Rs. 5,000. The amount may be higher based on the maximum possible daily financial transactions at your outlet.

Step 5: Attach all required documents – age proof, PAN card or Form 60 declaration, premises proof, business plan, one reference letter from a respectable person of the locality, PPO copy if you are a postal pensioner, and NSC for security deposit.

Step 6: Submit the completed application form with all attached documents to the Senior Superintendent or Superintendent of Post Offices of the concerned Postal Divisional Office – the competent authority for the grant of license under the scheme.

Step 7: The concerned Divisional Head will review your application based on a report from the ASP or SDI and take a selection decision within 14 days from the date of receipt of the application.

Step 8: After selection, you will sign a Memorandum of Agreement (MoA) with the Department of Posts. Authorisation of the franchise will be done within 7 days from the date of receipt of the NSC security deposit.

Step 9: After authorisation, attend induction training conducted by the Sub-Divisional Inspector of the area covering objectives, products, services, basic procedures, premises upkeep, and customer care. The first review of your franchise will be conducted 6 months after opening, and the final continuation decision will be taken at 1 year from opening.

Method 2: Apply for a Postal Agent

Step 1: Collect the Application cum Postal Agent Agreement Form (Annex-III) from the nearest Head Post Office, Sub-Post Office, or Postal Divisional Office. The form is available in the regional language or Hindi as required.

Step 2: Fill in all details – your full name, nationality, date of birth, identification mark, present and permanent address, location and premises from where business will be conducted, proposed business timings, distance from nearest post office, and any previous retailing experience.

Step 3: Attach age proof confirming you are above 18 years and a PPO copy if you are a postal pensioner. No security deposit, no MoA, and no educational certificate are required for a Postal Agent application.

Step 4: Submit the completed application form to the Senior Superintendent or Superintendent of Post Offices of the concerned Postal Divisional Office.

Step 5: The concerned Divisional Head will process your application and issue a Photo Identity Card within one week from the date of receipt of the application. The license is granted initially for 1 year and subsequently renewed for 3 years at a time, subject to satisfactory work and conduct.

Step 6: After receiving the Photo Identity Card, purchase stamps and stationery from your Link Post Office by cash – minimum purchase value Rs. 300 per transaction – and earn 5% commission on every purchase. Display the India Post signage provided by the Postal Divisional Office or Link Sub-Post Office at your premises and begin selling stamps and stationery to customers.

Difference Between Franchise Outlet and Postal Agent

What Services Can a Franchise Outlet Provide to Customers

A Franchise Outlet acts as a counter service point of India Post. The following services can be offered to customers, and each service generates commission for the franchisee:

• Sale of stamps and stationery, including philatelic items – earn 5% commission on every sale
• Booking of Registered Articles and Registered Parcels – earn Rs. 3 per booking
• Booking of Speed Post Articles and Speed Post Parcels – earn Rs. 5 per booking with higher monthly commission on parcel business
• Booking of Money Orders – minimum value Rs. 100 – earn Rs. 3.50 to Rs. 5 per money order, depending on value
• e-Post services
• Postal Life Insurance (PLI) premium collection – act as a direct PLI agent and provide after-sales service
• Sale of revenue stamps and Central Recruitment Fee (CRF) stamps – earn 40% of the commission earned by DoP
• Bill, tax, and fine collection and payment services of the Department
• e-Governance and citizen-centric services
• Any future services introduced by DoP through its outlets

Important: Franchise Outlets cannot book money orders below Rs. 100 and cannot do bulk booking from BNPL (Book Now Pay Later) customers. The range of services offered can vary based on location and revenue potential, as decided by the concerned Divisional Head. For the complete list of services and commission rates, visit indiapost.gov.in/vacancies/franchise.

Important Links Available

• Indian Post Office Franchise Scheme – India Post Official Page
• Download Indian Post Office Franchise Scheme Official PDF with Application Forms
• India Post Official Portal
• India Post Directory – Find Postal Divisional Office in Your Area

Contact Details in Case of Help Needed

• For Application Submission and Scheme Details: Senior Superintendent or Superintendent of Post Offices of the concerned Postal Divisional Office in your area
• Operating Manual and Forms: Available at all Head Post Offices and Sub-Post Offices of the concerned area
• Department of Posts Headquarters: Dak Bhawan, Sansad Marg, New Delhi – 110001

Frequently Asked Questions (FAQs)

Q. What is the Indian Post Office Franchise Scheme?

Ans. The Indian Post Office Franchise Scheme is an initiative by the Department of Posts, Ministry of Communications, Government of India, that allows individuals, shops, institutions, and other entities to provide postal counter services on behalf of India Post. The scheme has two types, Franchise Outlet, which provides a range of postal counter services, and Postal Agent, which sells stamps and stationery. It was introduced to increase access to postal services in areas where opening a full post office is not feasible.

Q. What is the difference between a Franchise Outlet and a Postal Agent?

Ans. A Franchise Outlet provides a full range of counter services, including booking of registered articles, speed post, money orders, PLI premium collection, e-governance services, and sale of stamps. A Postal Agent only sells postal stamps and stationery, including philatelic items. A Franchise Outlet requires signing a Memorandum of Agreement and providing a minimum security deposit of Rs. 5,000 in the form of NSC. A Postal Agent requires neither an MoA nor a security deposit.

Q. Who can apply for a Post Office Franchise Outlet?

Ans. Individuals above 18 years of age with a minimum Class 8 qualification from a recognised school can apply. Institutions, organisations, corner shops, paanwalas, kiranawalas, stationery shops, small shopkeepers, colleges, polytechnics, universities, and entities in upcoming urban townships, SEZs, and industrial centres can also apply. Postal pensioners and those with computer facilities receive preference in selection.

Q. Who can apply for a Postal Agent license?

Ans. Any individual above 18 years of age can apply – there is no prescribed educational qualification for Postal Agents. Institutions, shops, and other entities are also eligible. No security deposit or MoA is required. The license is granted initially for 1 year and renewed for 3 years at a time thereafter.

Q. How much commission does a Franchise Outlet earn?

Ans. A Franchise Outlet earns Rs. 3 per Registered Article booked, Rs. 5 per Speed Post Article booked, Rs. 3.50 to Rs. 5 per Money Order depending on value, 5% on sale of stamps and stationery, and 40% of commission earned by DoP on retail services, including revenue stamps. For the monthly Speed Post Parcel business, commission ranges from 10% to 30% and for Registered Parcel, from 7% to 20%, depending on the monthly business volume. An additional 20% commission applies when combined bookings of Registered and Speed Post articles exceed 1,000 per month.

Q. How much commission does a Postal Agent earn?

Ans. A Postal Agent earns 5% commission on the total purchase value of stamps and postal stationery, including philatelic items. The minimum purchase per transaction is Rs. 300 in cash on production of a Photo Identity Card from the Link Post Office.

Q. What is the security deposit required for a Franchise Outlet?

Ans. The minimum security deposit is Rs. 5,000 in the form of NSC (National Savings Certificate). The amount may be higher based on the maximum possible level of daily financial transactions at the outlet. The deposit increases based on average daily revenue. No security deposit is required for Postal Agents.

Q. How long does the selection process take?

Ans. The concerned Divisional Head takes a selection decision within 14 days from the date of receipt of the application based on a report from the ASP or SDI. After selection, authorisation of the franchise is done within 7 days from the date of receipt of the NSC security deposit. For Postal Agents, the Photo Identity Card is issued within 1 week from receipt of the application.

Q. What services can a Franchise Outlet provide?

Ans. A Franchise Outlet can provide the sale of stamps and stationery, including philatelic items, booking of registered articles, speed post articles, money orders of minimum Rs. 100, e-post, PLI premium collection, sale of revenue stamps and CRF stamps, bill and tax collection services, e-governance services, and any other services introduced by DoP in the future through its outlets.

Q. Is there any educational qualification required?

Ans. For a Franchise Outlet, a minimum Class 8 pass from a recognised school is required. For a Postal Agent, there is no prescribed educational qualification. Anyone above 18 years of age can apply for a Postal Agent license.

Q. When does a Franchise Outlet have to start business?

Ans. The franchisee must commence business within 2 weeks from the date of signing the Memorandum of Agreement with the Department of Posts. Failure to do so can lead to termination of the franchise agreement.

Q. How long is the Franchise Agreement valid?

Ans. The initial agreement period is 1 year. Based on successful completion, the second term is 3 years. Further continuation is allowed for 3 years at each subsequent time, subject to satisfactory work and conduct. The first review of the franchise is conducted at 6 months and the final continuation decision is taken at 1 year from opening.

Q. Can a franchise outlet be opened anywhere?

Ans. No. Franchise Outlets cannot be opened in Gram Panchayats where Panchayat Sanchar Sewa Kendras (PSSKs) are already functioning under the Panchayat Sanchar Sewa Yojana Scheme. The location must be accessible, properly maintained, and display approved signage.

Q. Where can I get the application form?

Ans. The Application cum Franchise Outlet Agreement Form (Annex-I) and Application cum Postal Agent Agreement Form (Annex-III) are available at all Head Post Offices and Sub-Post Offices of the concerned area, at the concerned Postal Divisional Office, and for download at indiapost.gov.in. Submit the completed form to the Senior Superintendent or Superintendent of Post Offices of the concerned Postal Divisional Office.

Tabassum

Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare scheme programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.