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Value Payable Post (VPP):

• VPP is a service from postal department where in the buyer of a product wishes to pay for that product after he receives it through post. (Note: It is somewhat similar to Cash On Delivery (COD) offered by online stores these days.)
• In this system when a producer or a seller receives an order from a buyer he packs the demanded good, goes to post office and asks it to deliver through VPP to the buyer.
• When the buyer receives the product he pays the postman the predetermined price plus postal department’s service charges.
• The producer/seller then receives his money from postal department.
• VPP is quite popular parcel service.

The postal department provides few services under premium service category. Two of them are:
1. Speed post/parcel:

• Under this service the postal department guarantees to deliver the post or parcel speedily with a specific period of time at almost all the locations of India.
• The charges of speed post/parcel are higher than the general post/parcel. One can also take insurance for the items sent.

2. Express parcel:

• Under express parcel service an individual or a business firm can send parcels to their concerned receivers very speedily that too within specified time limit. The postal department sends these parcels either by air or any other very fast means of transport.
• The charges of express parcel service are even higher than the speed post.

Saving services of post office:
1. Banking services

Just like we open and maintain a savings bank account we can open a savings account in post office as well. The post office also issues cheque books and ATM cards to the account holders.

2. Recurring deposit scheme:

• In this scheme a person can open recurring deposit account with the post office and deposit a specific amount every month for 5 years.
• At the end of 5 years the account matures. The account holder gets back his principle amount plus interest earned in 5 years.
• If the account holder wishes the account can be extended for another 5 years.

3. Term deposit:

• Term deposit service is just like the fixed deposit service. A person can choose to keep his money deposited for 1, 2, 3 or 5 years in the post office
• A person can open time deposit account with a minimum of ₹ 200/- and then in its multiple.
  Post-office calculates the interest every quarter i.e. every 3 months but pays the interest to the account holder every year.
• This account can be transferred from one post office to another and can also be closed before it matures.

4. National Savings Certificate (NSC):

• NSC is an Indian government savings bond primarily used for small savings.
• These bonds or certificates are managed by the postal department.
• One can buy an NSC from a post office. Its maturity period is either 5 or 10 years.
• The postal department informs the buyer in advance about the interest he will earn on maturity.
• On maturity the NSC owner can go to the post office, complete the formalities and obtain the matured amount.

5. Kisan Vikas Patra (KVP):

• Under this scheme the depositor buys a KVP from the post office and gets double the invested money after 100 months i.e. 8 years and 4 months. This certificate is available only for specific denominations of ₹ 1000, 5000, 10,000 and 50,000.
• On maturity the depositor can complete the formalities at the post office and withdraw his money along with interest.

6. Public Provident fund:

• A PPF account once opened cannot be closed before 15 years.
• After 15 years the account can be extended for another 5 years depending, upon the government rules at that time.
• This account can be opened with a minimum amount of ₹ 500.To keep this account active one needs to deposit a minimum of ₹ 500 every year.
• The interest earned out of PPF is exempted from income tax i.e. one does not need to pay income tax on the money he earns through PPF scheme. In case the account holder dies the PPF money will be given to the nominee.

7. Monthly income scheme (MIS):

• This scheme is targeted for investors who wish to obtain the earned interest every month and hence the name monthly income scheme.
• A person can open an individual or joint account.
• The account is to be maintained for 5 years. However one can withdraw the deposited money after 1 year subject to terms and conditions of the postal department.
• The account can be transferred from one post office to another.

Saving services:

The postal department provides several saving services similar to those offered by the banks.

Just like we open and maintain a savings bank account we can open a savings account in post office as well. The post office also issues cheque books and ATM cards to the account holders.

List of services offered:

• Opening a saving account
• Recurring deposit scheme
• Time deposit
• National Saving Certificate (NSC)
• Kisan Vikas Patra (KVP) for 5 or 10 years
• Public Provident Fund (PPF) for 15 years
• Monthly Income Service (MIS)
• Senior Citizen Savings Scheme (SCSS)
• Sukanya Samridhi Account

The postal department of India known as India Post provides a variety of services. Few of them are classified and listed below.
(A) Mail services:

• General postal letters
• Registered posts
• Parcel service
• Value Payable Post (VPP)

(B) Premium services:

• Speed post (For both, post and parcel)
• Express parcel

(C) Financial services: These services can be further classified as:
(I) Saving services:

• Recurring Deposit Scheme (RDS)
• Time deposit
• National Savings Certificate (NSC)
• Kisan Vikas Patra (KVP)
• Public Provident Fund (PPF)
• Monthly Income Scheme (MIS)

(II) Postal Life Insurance (PLI)

(III) Money Remittance Services:

• Money order (MO)
• Electronic Money Order (eMO)
• Instant Money Order (iMO)

(D) The foreign Exchange (Forex) services of postal department provides following services:

• Purchase and sale of foreign exchange
• Traveller’s cheque on foreign currency
• Debit card
• Demand draft

(E) Other services:

• Mutual Fund (MF)
• Banking services
• Service to maintain pension account for pension depositors.
• Railway ticket booking, etc.

Indian post and telegraph department provides various postal services across India. For providing these services the whole country has been divided into 22 postal circles. These circles manage the functioning of the various head post offices, sub-post offices and branch post offices. There are 154149 post offices and 564701 letter boxes ’processing 1575 crore mails every year.

The various facilities provided by postal department are broadly categorized into:

(i) Financial Facilities Post Office Savings Bank is the largest retail bank having 150000 plus branches. Financial facilities are provided through the post office’s savings schemes like Public Provident Fund (PPF), Kisan Vikas Patra, and National Saving Certificates apart from retail banking functions of monthly income schemes, recurring deposits, savings account, time deposits and money order facility.

(ii) Mail Facilities Mail services consist of parcel facilities that is transmission of articles from one place to another; registration facility to provide security of the transmitted articles and insurance facility to provide insurance cover for all risks in the course of transmission by post.

(iii) Allied Facilities

1. Greeting Post Indian post offers a beautiful and varied range of greeting cards for every occasion. 

2. Media Post Indian corporate can use media post which is an innovative and effective vehicle to advertise their brand through postcards, envelopes, aerogram, telegrams, and also through letter boxes.

3. Direct Post It is for direct advertising which can be both addressed as well as unaddressed. 

4. International Money Transfer Indian post has a collaboration with Western Union financial services, USA, which enables remittance of money from 185 countries to India. 

5. Passport Facilities Indian post has a unique partnership with the ministry of external affairs for facilitating the process of passport application. 

6. Speed Post Indian post has over 1000 destinations covered under the speed post facility in India and links with 97 major countries across the globe.

7. e-bill Post It is the latest offering of the Indian post and telegraph department to collect bill payment across the counter for BSNL and Bharti Airtel

Indian Post and Telegraph Department provides various postal services all over India. India has been divided into 22 postal circles for this. There are 1,54,149 post offices in India. It has 5,64,701 letter boxes, which transmits 1575 crore mails every year. 5,01,716 villages have a public telephone and 26000 post offices are connected through the network. It links major 97 countries across the world. It provides speed post facility for over 1000 destinations in India. Facilities of postal department are broadly divided into:

• Financial Facilities: Post and Telegraph Department provides financial services using post office’s saving schemes like Public Provident Fund, Kisan Vikas Patra, National Saving Certificate, normal retail banking functions of monthly income schemes, recurring deposit account, savings account, time deposits and money order facility etc.
• Mail Facilities: It consists of parcel facilities which consists of transmission of articles from one place to another which can be registered and insured. It also provides facilities for greeting post, (a range of delightful greeting card on all occasions) and Media Post (a way for Indian corporate to advertise their brands through aerograms, telegrams and letterboxes).
• International Money Transfers: It enables money transfer from 185 countries in collaboration with Western Union Money Transfer.
• Passport Facilities: It has joint hands with Ministry of External Affairs and accepts application for passport. 
• Speed Post: It has more than 1000 destinatiory in India. It covers 97 major countries of the world. 
• E-Bill Post: It is the latest addition in facilities by Indian Post whereby it collects bill payment across the counter for BSNL and Bharti Airtel.

There are many types of telecom services. They are:

1. Fixed line services: Fixed line services include use of fixed services to establish linkage for long distance traffic., Under this type, voice and non-voice messages and data are exchanged. Network equipment connected through fiber optical cables are used for this purpose.

2. Radio paging services: Radio paging service is one-way information services to transmit information to persons who are mobile.

3. Cable services: Cable service’s are linkages and switched services available within a licensed area of operation. Cable series are essentially entertainment services.

4. Cellular Mobile services: Cellular mobile services include all types of mobile telecom series for voice and non voice massages, data and PCO.

5. Direct to Home (DTH) Service: Cellular companies offer their satellite-based media service. A small dish -antenna and a set top box are needed to receive the service through multiple channels. The service can be viewed on television. It avoids dependence on the services offered by the cable network service provider.

6. VSAT Services: Very small aperture terminal service is satellites based communication service used to provide innovation applications, such as telemedicine, newspapers on line, market rates and tele-eduction. This is an uninterrupted service and is better than land based services.

There are various type of telecom services which facilitate business. These include

(i) Cellular Mobile Services These include all types of mobile telecom services including voice and non-voice messages, data services and PCO services utilizing any type of network equipment within their service area.

(ii) Radio Paging Services Radio Paging Service is a means of transmitting information to persons even when they have mobile. It is an affordable one way information broadcasting solution which includes tone only, numeric only and alpha/numeric paging.

(iii) Fixed Line Services These include all types of fixed services including voice and nonvoice messages and data services used to establish linkages for long distance traffic utilizing any type of network equipment connected through fiber optic cables.

(iv) Cable Services These include linkages and switched services within a licensed area of operation to operate media services which are essentially one way entertainment related services.

(v) VSAT Services VSAT (Very Small Aperture Terminal) is a satellite-based communications service which is highly flexible, uninterrupted and reliable communication solution for applications such as newspapers-on-line and tele-education in both urban and rural areas.

(vi) DTH Services DTH (Direct to Home) is a satellite based media service provided by cellular companies. One can receive media services directly through a satellite with the help of a small dish antenna and a set top box.

Cellular Mobile Services: These companies provide all types of telecom services like voice and non-voice messages, data services, PCO connectivity etc. 

• Radio Paging Services: It is one way information broadcasting solution and has spread its reach to a large area. It includes services including tone only, numeric only and alpha/numeric only. 
• Fixed Line Services: These services utilise any type of network equipment connected through fibre optic cable laid across the length and breadth of the country. 
• Cable Services: These are linkages and switched services within a license area of operation to operate media services. 
• VSAT Services: VSAT stands for Very Small Aperture Terminal. It is a satellite based communication service which is highly flexible and reliable communication solution in urban as well as rural areas. It is being used for tele-medicine, newspaper online, teleeducation, online trading, e-banking etc. 
• DTH Services: DTH stands for Direct to Home. It is also a satellite based service provide by cellular companies which allows one to receive media services through a satellite with the help of a small dish antenna and a set up box.

Correct option is (C) 15,000

The creation of the GATS was one of the landmark achievements of the Uruguay be came Round, whose results entered into force in January 1995. While services currently account for over 60 per cent of global production and employment, they represent no more than 20 per cent of total trade (BOP basis). This—seemingly modest—share should not be underestimated, however. Many services, which have long been considered genuine domestic activities, have increasingly become internationally mobile. This trend is likely to continue, owing to the introduction of new transmission technologies (e.g., electronic banking, telehealth or tele-education services), the opening up in many countries of long entrenched monopolies (e.g. voice telephony and postal services), and regulatory reforms in hitherto tightly regulated sectors such as transport. Combined with changing consumer preferences, such technical and regulatory innovations have enhanced the “tradability” of services and, thus, created a need for multilateral disciplines. 

All WTO members, some 140 economies at present, are at the same time members of the GATS and, to varying degrees, have assumed commitments in individual service sectors. The GATS schedule largely follows a classification. It classifies services into 12 sectors which are as follows: 

1. Business services; 

2. Communication services; 

3. Construction and related engineering services; 

4. Distribution services; 

5. Educational services; 

6. Environmental services; 

7. Financial services; 

8. Health related and social services

9. Tourism and travel related services; 

10. Recreational, cultural and sporting services; 

11. Transport services; 

12. And other services.

The health of the insurance sector reflects a country’s economy. This sector not only generates long term funds for infrastructure development, but also increases a country’s risk taking capacity. India’s economic growth since the turn of the century is viewed as a significant development in the global economy. This view is helped in no small part by a booming insurance industry. 

The future of the Indian insurance sector looks bright. The sector which stood at a strong US$ 72 billion in 2012 has the potential to grow to US$ 280 billion by 2020. This growth is driven by India’s favourable regulatory environment which guarantees stability and fair play. This environment has given rise to an insurance market which encourages foreign investors to tap into the sector’s massive potential. 

Ever since the Indian government liberalised the insurance sector in 2000 and opened the doors for private participation, the sector has become stronger. The resultant competition has provided the’ consumer with a never-before-seen range of products and providers, and also enhanced service levels markedly. Consistent growth in the insurance sector depends on a few factors. Some of these are:

1. Effective distribution channels: The efficiency and cost of the various distribution strategies used by companies are significant to their success in the insurance business. This particularly holds true for the retail business. 

2. Focus on overall financial inclusion: As time evolves, so must the approach of the insurance sector in India. The objective of the insurance sector should ideally be to offer a broader range of activities to a wider populace. 

3. Consumer needs and preferences: The growth of India’s insurance industry can be attributed to product innovation, dynamic distribution channels, and vibrant publicity and promotional campaigns run by insurance companies. Benefits attached to the products and the manner in which they are delivered (through various marketing tie-ups) have helped bring customers and insurance companies closer to each other and made the latter more relevant. 

4. Health Insurance is an up-and-coming segment in this sector: Currently, it caters for 10 per cent of the overall US$ 30 billion healthcare expenditure in India. Consequently, there is plenty of scope for players in this area. 

5. The life insurance segment contributes: about 4 per cent to India’s gross domestic product (GDP) in terms of total premiums underwritten annually. There are 23 private companies in the segment. The state owned Life Insurance Corporation (LIC) dominates the field, with about 71 per cent of the market share, according to Insurance Regulatory and Development Authority (IRDA).

IRDA stands for Insurance Regulatory and Development Authority. It is a supreme, autonomous and legal institution which looks after me regulatory and development activities in the field of insurance.

To analyze and develop the insurance industry in India.

An insurance in which the insurance company agrees to pay compensation against the damage or destruction caused due to fire is known as fire insurance.

Fire insurance:

• An insurance in which the insurance company agrees to pay compensation against the damage or destruction caused due to fire is known as fire insurance.
• Fire insurance works on the principle of insurable interest which means that the insuree should get a compensation equivalent to the loss of value of property or belongings caused due to fire.

The one difference between insurance and assurance.

• Insurance: Insurance is a contract between insurer and insured. 
• Assurance: Assurance is a contract between assurer and insured.

Correct Answer is: B. product

Courier agencies and aangadiyas.

Correct Answer is: B. private non-profit sector

A registered post is a post which is handled with extra care by the postal department. The postal department keeps record of that post at all stages and also provides acknowledgement of post received to the sender if he wishes to.

The fastest mode of transportation is Airways.

Yes, she can claim because in life insurance insurable interest has to be present at the time of affecting the policy but need not be present at the time when the claim falls due.

A life insurance policy in which the insuree pays a premium periodically for the policy whole life is called whole life insurance. After the insuree dies his heir gets the pre-decided sum mentioned in the insurance agreement as compensation from the insurance company.

In Geneva, Switzerland in 1407 CE.

With increasing population and excessive vemcies the problems of air pollution, noise pollution, traffic congestion and parking have increased tremendously.

• To fight this and promote public transport government has started Bus Rapid Transit System (BRTS) in many cities of India.
• Special lanes have been built for these buses which help them to travel very fast. Moreover, the duration between buses is kept quite less due to which one does not need to wait much for another bus and can reach his destination on time.
• Hence, BRTS proves wonder to solve traffic and pollution issues.

i. Current

ii. Intangible

iii. Minimise

iv. Centrals

v. real

An account where fixed amount is kept for a specific period- Fixed account 

Explanation: 

In a fixed deposit account, an amount is deposited for a specific period. The amount deposited cannot be withdrawn before maturity. In case a person withdraws the amount before the expiry of the fixed period, the rate of interest that is to be paid becomes less than what was applicable

A godown built for storing goods owned by public is known as a public godown. Although these are also owned by individuals, institutions or businessmen but they are open for public storage.

As the name suggests these godowns store only those goods which are imported from other countries and on which custom i.e. import duty is already paid.

A commercial bank is a financial institution that accepts deposits from the general public and extends loans to the general public for various purposes such as consumption and investment. Commercial banks offer a rate of interest on the deposits (borrowing rate) and charge a rate of interest on the amount they lend (lending rate). 

The following are the primary functions of commercial banks: 

i. Accepting deposits - Banks accept various types of deposits from the public such as savings account deposits, current account deposits and fixed account deposits and pay interest on them. They are indebted to repay the depositor the amount deposited by him or her. The following are the various types of deposits accepted by these banks: 

a. Savings account deposits - Frequent withdrawals are restricted from the savings account. This type of account promotes the habit of saving in people having a fixed income. These deposits are chequeable deposits—that is, cheques can be issued against such deposits. Interest is credited to the depositor's account once in every six months. 

b. Fixed account deposits - Fixed account deposits (also known as time deposits) refer to the deposits that are held for a fixed (specific) period of time (called maturity). These deposits cannot be withdrawn before maturity; hence, they are not payable on demand. Interest paid on these deposits is comparatively higher than that paid on savings account deposits. 

c. Current account deposits - Current account deposits (also known as demand deposits) refer to the deposits that provide the depositor the liberty to withdraw money at any point in time. This type of bank account is usually held by businesspersons. The depositor can withdraw the required amount from the account through a cheque. No interest is paid on these deposits. 

d. Recurring deposit account - This account carries higher interest rate than that carried by the savings account. A fixed amount is deposited in this account at regular intervals. That amount can be withdrawn only after maturity. 

e. Multiple option deposit account - This account is a combination of the savings, current and fixed accounts. The interest is the same as that earned on a fixed account and the account is as liquid as a savings or current account. In this type of account, the amount is automatically transferred to the fixed deposit account once it crosses a specified amount. In case insufficient amount is available when a cheque is presented, the amount is deducted from the fixed deposit account and added to the savings account. 

ii. Granting loans and advances - Banks grant loans and advances on the basis of the total deposits available with them. These loans and advances can be in the form of overdrafts, discounted trade bills, cash or consumer credits, etc. The interests charged on these loans are a major source of profits for banks. The following are the different types of advances offered by commercial banks: 

a. Cash credit - Under this system, the bank first estimates the value of the assets held by the borrower. Based on this estimation, the bank decides the credit limit of the borrower. The borrower is liable to pay interest on the amount he/she actually withdraws. 

b. Overdraft - This facility is provided to current account holders wherein they can withdraw amount in excess of the credit balance in the account. The bank charges interest on the amount overdrawn. 

c. Discounted bills - A bill of discount is a negotiable instrument where the payment is made by the bank on behalf of the customer to the vendor before the due date. The bank collects the money from the customer on the arrival of the due date. The bank deducts some fee before making the payment to the vendor.

State Bank of India.

Postal services are administered by Government of India.

Explanation: 

Postal services come under the Ministry of Communication and Information Technology; they are administered by the Government of India. They provide services at rates easily affordable by everyone.

In India railways are owned and managed by government.

Explanation: 

The Indian railways is supervised by the Ministry of Railways and is governed by the Government of India. Thus, it is fully owned by the Government and no private player is allowed to provide this service.

In case of urgency and to avoid delays, speed post is sent. 

Explanation: 

Speed post is the postal service provided by the Indian Post and Telegraph Department that delivers letters, parcels and as the name suggests, documents are sent very fast (within 24 to 72 hours). But since it offers various benefits, the charges for this service are relatively higher than the ordinary mail.

An electronic letter through which the message can be exchanged on the computer- E-mail 

Explanation: 

An e-mail enables the exchange of messages electronically using internet on the computer. The messages are delivered to the recipient instantly.

A device through which calls and messages can be sent and received - Mobile phone 

Explanation: 

A mobile phone enables a person to connect with anyone, anywhere. The device can be used to make and receive calls and send and receive messages. Companies like Nokia, Sony and Samsung produce mobile phones.

Correct Answer is: D. business sector

Government and other important documents, legal notices, etc. are quite important documents. These documents should safely reach the receiver properly and on time.

• Moreover, in case of misplacement or loss, the sender generally requires proof that the documents were sent by him.
• A mail or article sent under registered post is handled with extra care by the postal department. The postal department keeps record of such post at all stages for which a sender can obtain proof in case of misplaced or lost posts.
• The sender can also obtain an acknowledged copy i.e. copy carrying signature of the person to whom the post is sent from the postal department by paying some extra charges.
• Hence, government and other important documents, legal notices, etc. are sent through registered post.

The type of warehouse where perishable goods are stored - Cold storage warehouse. 

Explanation: 

In cold storage warehouses, perishable goods like fish, dairy products, fruits and flowers are stored under very low temperatures. The basic purpose of these warehouses is to store and preserve perishable goods so that they can be used later on.

No, he cannot claim the compensation because the principle of utmost good faith is not followed. According to this principle, it is the duty of the insurer and insured to voluntarily make full accurate disclosure of all facts, material to the insurance contract.

Using roadways as a transport one can transport goods at own speed and time, change direction of vehicle as per need, take halts whereever one wishes, provide door step delivery, etc. So it is the most convenient form of transport.

ATM stands for Automated Teller Machine. These machines are installed by banks at various iocations. A person can withdraw cash from these machines, know his account balance, etc. using ATM card.
OR
Automated Teller Machine (ATM):

• ATM is a machine installed by banks at several locations. A person can use this machine to perform few types of banking transactions.
• Bank provides an ATM card to its customer which he needs to carry whenever he goes to ATM. The bank also provides him a Personal Identification Number (PIN) to use this ATM card at ATM centers.
• Using ATM card a person can withdraw money from ATM as per minimum withdrawal limit set by the bank and lesser than the amount present in his account. The bank also sets the maximum amount that a person can withdraw per transaction.
• A person having ATM card of another bank can use it in an ATM centre of any bank. However, he will be charged for using this service as decided by RBI.

Call money:

• In day to day transactions it is quite likely that each bank faces a shortage of money even for as short as 24 hours or even lesser.
• In such cases the bank may borrow money from another bank at an interest rate which is determined by the shortage of money or say demand or supply pattern in the market.
• The borrowing and lending banks do not come is direct contact with each other for this transaction. It is done by an agency appointed by the Central Bank
• This money is known as ‘Call money’ and its rate of interest is called ‘Call money rate’.

The interest charged on the money that a bank borrows from another bank or branch is called call money. Its rate of interest is decided on the basis of demand and supply and shortage of money in market.

The money that a bank borrows from another branch or bank when it faces its shortage is called call money.

To invest:

• A bank cannot make profit if it is unable to lend the deposits and invest its capital in a substantial manner. One of the important tasks of the bank is to thoroughly calculate and invest its money at some secure options.
• As per RBI’s rule a bank need to invest some percentage of its total deposit in government guarantees (securities) on which the bank earns a low interest. The reason for investing in such government guarantees is that bank can easily withdraw its investment in case of emergencies or some unforeseen events. As a result a bank majorly invests in government securities or other capital units.

So that it can easily withdraw it in case of emergencies or an unforeseen event.