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Submitted by
ANJANA THILAK
Reg.no:SGAPBCM005
DECLARATION
I hereby declare that the project work titled “A STUDY ON
INVESTORS ATTITUDE TOWARDS POST OFFICE SAVING SCHEME
WITH SPECIAL REFERENCE TO KANDANASSERY PANCHAYATH” is
a record of original work done by me under the supervision and
guidance of Mrs.Jisha P.S and that this project work has not formed
the basis for the award of any Degree/Diploma/Fellowship or similar
title to any candidate of any University.
Place:
Date: ANJANA THILAK
ACKNOWLEDGEMENT
First, let me thank God, almighty for making me capable to do the work
successfully. I would like to add few heartfelt words for the people who guided
me to prepare this project in numerous ways.
I wish to thank my respected project guide Mrs. Jisha .P.S, assistant
professor in commerce department, SREE KRISHNA COLLEGE GURUVAYUR, for
giving me valuable suggestion, guidance, support and advise throughout the
execution of the project.
I take pleasure in expressing my deep sense of gratitude to the agent of
Mattam Post office Mrs. V. S. Pushpalatha for her valuable guidance,
encouragement and cooperation.
Finally I take this opportunity to express my deep appreciation to my
family, friends and well-wishers for their sustained help and prayers.
Place:
Date: ANJANA THILAK
CHAPTER CONTENTS PAGE NO
NO
1 INTRODUCTION
1.1 Introduction
1.2 Statement of the problem
1.3 Objectives of the study
1.4 Research methodology
1.5 Limitations
2 REVIEW OF LITERATURE
3 THEORATICAL FRAMEWORK
In India, Post Office savings scheme provides a secure, risk free and attractive investment
option for the small investors and offers the savings products across its 155000 Post offices.
The Post office saving bank in India was established by the British Colonizers. The Post office
savings bank is the oldest and by far the largest banking system in the country, serving the
investment need of both urban and rural clientele. These services are offered as an agency
service for the Ministry of Finance, Government of India. The Post office savings bank is
included in the union list side item NO.39 of the seventh scheduled of the constitution of
India. It provides various schemes framed by the central Government under the following
acts.
i) Government Savings Bank Act 1873
ii) Government Savings Certificate Act 1959
iii) Public Provident Fund 1968
Operating Agencies of Savings Schemes
The small savings schemes are operated through 1.54 lakh Post office
throughout the country.
Public provident fund scheme is also operated through 8000 branches of public
sector banks in addition to the Post office.
Deposits schemes for retiring employees are operated through selected
branches of public sector banks only.
Promotion of the small savings schemes
National Savings Organizations (NSO) is responsible for the national level promotion
scheme through publicity campaign and advertisement in audio, video as well as print media.
Through a large network of over five lakhs small savings working under different categories
namely
I did my project about investor’s attitude towards post office savings schemes. The area
covered for the study is Kandanassery panchayath.
The researcher has taken up with the main purpose of studying the
behavior of postal customers towards Post office savings scheme. Most of the institutions
influence common people to purchase their various schemes by way of strong marketing
activities. Hence the author decided to study the behavior and attitude of postal customers
in this regard.
To study the attitude of investors towards Post office savings scheme in the study
area.
The study is based on both primary and secondary sources. The primary data has been
collected from 60 investors through a well-structured questionnaire. The secondary data has
been collected from various standard text book, journals, magazines, newspapers and
websites.
1.5LIMITATIONS OF THE STUDY
Due to inadequate time and cost, it is not possible to analyze all aspects relevant to
study.
Awareness about the deposit scheme of post office scheme is less compare to bank.
Karthikeyan (2001) has conducted research on small investors’ perception on post office
savings schemes and found that there was significant difference among the four age groups,
in the level of awareness for National Savings Schemes (NSS, and deposit schemes for retired
employees (DSRE), and the overall score confirmed that the level of awareness among
investors in the old age group was higher than in those of the young age group. No difference
was observed between male and female investors except for the NSS and KVP. Out of the
factors analyzed, necessity of life and tax benefits was the two major ones that influence the
investors both in semi-urban and urban areas. Majority of investors of both semi-urban and
urban areas were very much willing to invest in small savings schemes in future provided they
have more for savings.
Gavini and Athma (1999) found that social considerations, tax benefits, and provisions for old
age were the reasons cited for saving in urban areas, where as to provide for old age was the
main reason in rural areas. Among the post office schemes, KVP (Kisan Vikas Pathra) and post
office recurring deposit account (PORD) were the most popular, in both rural and urban areas.
THEORETICAL FRAMEWORK
THE INDIAN POSTAL SYSTEM
The Indian postal services were established in the current format largely under the East
India Company. It was first established under the name “Company Dawk” in 1688, the first
post office of the company post was established at Bombay madras. The system was
reorganized and the service opened to the general public by Warren Hastings. The first
governor general Bengal with supervisory powers over Bombay and machos, in 1774. A post
master general was appointed and metal tickets or tokens were issued to pay for the postal
charges. The presidencies of Bombay and madras followed suit.
In 1835 a committee was set up for unification of customs and postal system
of all the presidencies. The result was the first Indian post office Act of 1837. It not only
provided for uniform rates and routes but for the uniform designs and other specifications of
the postmarks for each category of post office. A commission was set up in 1850 and
submitted its report in 1851 that resulted in the post office Act of 1854.under the provisions
of this Act, the monopoly of carrying mail in the entire area of British possessions in India
were granted to Indian post office and office of the Director General of post office of India
was established MR.HP AB Riddle, till then the post master General of north west presidency,
was appointed the first Director General in May 1854.
An adult individual can open as many accounts but cannot do so with a minor
as a joint holder.
Cheque facility is available and one can even give standing instructions to
credit the interest of post office monthly income scheme to the saving account.
2. POST OFFICE TIME DEPOSIT
Any individual or up to 2 adults can jointly open the account. One can open
such an account in the name of minor also whose age is above to years.
There are just four time periods to choose from while making time deposits in
a post office. They are 1 year, 2 year, 3 year, and 5 year.
It is a fixed income instruments and the maturity is always fixed in such way
that the amount gets doubled in 8 years and 7 months.
The rate of return is around 8.4 % annually compounding the certificates can
be purchased for any amount, as there is no upper limit on investment.
8. PUBLIC PROVIDENT FUND
40-50 21 35
50-60 20 33
60-70 4 7
Above 70 4 7
Total 60 100
15
11
10
5 4 4
0
30-40 40-50 50-60 60-70 Above 70
No: of respondents
INTERPRETATION
This table depicts the age wise distribution of respondents. It shows that out of 60
respondents 18% respondents belong to the age of 30-40, 35% belong to the 40-50, 33%
belong to the 50-60, 7% belong to the 60-70, 7% belong to the above 70 category.
Table 4.2
male female
INTERPRETATION
This table depicts the sex wise classification of respondents. Out of 60 respondents,
77% of respondents are came under the male category and 23% are came under the female
category.
TABLE 4.3
MARTIAL STATUS
INTERPRETATION
This table shows the martial-status wise distribution of respondents. It shows
that out of 60 respondents 93% respondents belong to the married category, 5% respondents
belong to the unmarried category, there is no respondent belong to the divorced category,
2% respondents belong to the widow category.
Table 4.4
Illiterate
School education
SSLC
Plus two
Graduates
Post graduates
Professionals
INTERPRETATION
The above table depicts the educational wise classification of respontents.it shows
that out of 60 respondents, 2% having illiterate, 25 % having school education, 40 % having
SSLC, 20% having plus two, 7% having graduation, 3% having post graduates, 3 % having
professionals.
Table 4.5
INTERPRETATION
This table shows the occupation wise classification of respondents out of 60
respondents 8% fall under the agriculture category, 18% under business, 5% under
government employee, 13% under private employee, 5 % under pensioner,13 % under
professionals, 3% under house wife, 35% under others.
Table 4.6
Monthly income
25
20 21
19
15
10
10 10
0
Below 10000 10000-20000 20000-30000 Above 30000
INTERPRETATION
This table shows the monthly wise classification of respondents. Out of 60
respondents 17% belong to below 10000. 34% belong to 10000-20000, 17% belong to 20000-
30000, 32% of respondents belong to the category of above 30000 monthly income.
Table 4.7
1 21 35
2 28 47
3 6 10
>3 5 8
Total 60 100
25
20
15
10
0
1 2 3 >3
INTERPRETATION
This table shows the classification of respondents on the no: of earnings
in their family 35% fall under 1, 47% under 2, 10% under 3, 8 % under the category of above
3 persons.
Table 4.8
Below 1000
1000-2000
2000-3000
Above 3000
INTERPRETATION
THIS DATA DEPICTS THE CLASSIFICATION ON THE BASIS OF AMOUNT OF SAVINGS
PER MONTH.OUT OF 60 RESPONDENTS 8% INCLUDES BELOW 1000, 40% INCLUDE 1000-2000
CATEGORY, 28% INCLUDE 2000-3000 CATEGORY, 24% INCLUDES THE CATEGORY OF ABOVE 3000.
Table 4.9
To meet specific 9 15
purposes
To earn income 11 18
To meet contingent 21 35
expenses
To be secured at old age 12 20
To lead a comfortable 7 12
life
Total 60 100
purpose of savings
25
20
15
10
0
To meet specific To earn income To meet To be secured at To lead a
purposes contingent old age comfortable life
expenses
INTERPRETATION
This table depicts the classification of respondents on the basis of the purpose of savings.
Out of 60 respondents 15% of respondents fall under the category to meet specific purposes,
18% under the category to earn income, 35% under the category to meet contingent
expenses, 20% under the category to be secured at old age, 12% under the category to lead
a comfortable life.
Table 4.10
Below 1 year 7 12
1-3 year 16 27
3-5 year 22 36
5-7 year 9 15
Above 7 year 6 10
Total 60 100
INTERPRETATION
This table depicts the classification of no: of years of savings in post office savings
scheme. Out of 60 respondents 12% includes below 1 year, 27% includes 1-3 years, 36%
includes 3-5 years, 15% includes 5-7 years, 10% includes in the category of above 7 years.
Table 4.11
sources of knowledge
7% 17%
8% Friends/relatives
7% Advertisement
25% Agent
Post office employees
36%
From parents
others
INTERPRETATION
This table depicts the classification on the basis of sources of knowledge about post
office savings schemes. Out of 60 respondents 17% respondents includes under the category
of friends/relatives, 7% includes under the category of advertisement, 36% includes in the
category of agent, 25% includes in the category of post office employees, 8% includes in the
category of others.
Table 4.12
Level of satisfaction
30
25
25
20
15
15
10
11
5
5
4
0
Strongly agree Agree No opinion Disagree Strongly disagree
INTERPRETATION
This table depicts the classification of respondents on the basis of level of
satisfaction in the easy procedure of post office saving scheme. Out of 60 respondents 42%
of respondents included in the category of strongly agree, 25% are included in agree, 18%
included in the category of no opinion, 8% included in the category of disagree, 7% included
in the category of strongly disagree.
Table 4.14
Level of satisfaction
25
20
15
10
0
Strongly agree Agree No opinion Disagree Strongly disagree
INTERPRETATION
This table depicts the classification of respondents on the basis of level of satisfaction
in the easy procedure of post office saving scheme. Out of 60 respondents 13% of
respondents included in the category of strongly agree, 33% are included in agree, 32%
included in the category of no opinion, 17% included in the category of disagree, 5% included
in the category of strongly disagree.
Table 4.15
3. Interest rate is high
Level of satisfaction
25
20
15
10
0
Strongly agree Agree No opinion Disagree Strongly disagree
INTERPRETATION
This table depicts the classification of respondents on the basis of level of satisfaction
in the easy procedure of post office saving scheme. Out of 60 respondents 18% of
respondents included in the category of strongly agree, 17% are included in agree, 25%
included in the category of no opinion, 33% included in the category of disagree, 7% included
in the category of strongly disagree.
Table 4.16
Level of satisfaction
30
25
20
15
10
0
Strongly agree Agree No opinion Disagree Strongly disagree
INTERPRETATION
This table depicts the classification of respondents on the basis of level of
satisfaction in the easy procedure of post office saving scheme. Out of 60 respondents 9% of
respondents included in the category of strongly agree, 27% are included in agree, 42%
included in the category of no opinion, 20% included in the category of disagree, 2% included
in the category of strongly disagree.
Table 4.17
Level of satisfaction
20
18
16
14
12
10
8
6
4
2
0
Strongly agree Agree No opinion Disagree Strongly disagree
INTERPRETATION
This table depicts the classification of respondents on the basis of level of
satisfaction in the easy procedure of post office saving scheme. Out of 60 respondents 20%
of respondents included in the category of strongly agree, 30% are included in agree, 23%
included in the category of no opinion, 23% included in the category of disagree, 4% included
in the category of strongly disagree.
Table 4.18
Delay in processing 10 17
Interest is low 10 17
Lack of customer 12 20
friendly attitude
High penal charges 9 15
Lack of information 13 21
Long lock-in-period 4 7
Others 0 0
Total 60 100
14
12 13
12
10
10 10
8 9
6
4
4
2
2 0
0
No: of respondents
Level of satisfaction
5%
20% Highly satisfied
20%
Satisfied
Not bad
Dissatisfied
18%
37% Highly dissatisfied
INTERPRETATION
This table depicts the classification on the basis of level of satisfaction. 20%
includes highly satisfied, 37% include satisfied, 18% include not bad, 20% include dissatisfied,
5% include highly dissatisfied.
Table 4.20
www.indianfoline.com
www.indiapost.org
www.smallsaving.com