The Department of Posts has launched a sweeping modernization initiative under the Information Technology Modernization Project 2.0, backed by an outlay of Rs 5.785 trillion over eight years starting from 2022–23. This second phase builds on the earlier DOP IT 1.0 mission, which transformed postal operations into a digitally enabled ecosystem and delivered an internal rate of return of 6.33 percent, according to evaluations by IIM Lucknow and the Indian Institute of Public Administration.
The centerpiece of the new phase is the deployment of Advanced Postal Technology, a fully in-house developed Postal and Logistics Solution now operational across all 1.64 million Post Offices nationwide. The system enables faster, secure, and user-friendly services, including QR code-based digital payments. Rural Branch Post Offices have been equipped with Android mobile phones loaded with the Internal Mobile App, which captures digital signatures, provides real-time delivery updates, and integrates dynamic QR code payment features.
The Department has also expanded its Core Banking Solution offerings, including ATM access, internet and mobile banking, NEFT and RTGS fund transfers, electronic clearing services, e-passbook access, and IVRS support. India Post Payments Bank services are now available through 1.64 million access points, offering savings and current accounts, virtual debit cards, Aadhaar-enabled payments, and seamless linkage with Post Office Savings Accounts.
In the mail and parcel sector, the Mail and Parcel Optimization Project is streamlining operations through automation, standardized workflows, and advanced technologies such as parcel sorters and real-time tracking. All parcels are now classified as accountable articles under the Post Office Regulation of 2024, enhancing traceability. Branch Post Offices can now handle all parcel types and weights, expanding service reach in rural areas. Technology upgrades include real-time delivery status, API integration, en-route cancellation, system-assisted sorting, and SMS notifications for booking and delivery.
Infrastructure upgrades have been carried out across sorting and mail processing offices to support the expanded digital framework. These developments were shared by Minister of State for Communications and Rural Development Dr Pemmasani Chandra Sekhar in a written reply to the Lok Sabha.

