The Department of Posts is working on a plan to provide electronic money order service at 70 percent of its about 1.55 lakh post offices by December.
"DoP is procuring digital handheld terminals to transform various services. It is expected that various services mainly electronic money order service will be available in at least 70 percent of post offices by end of this year," said an official.
Following the introduction of e-money order service, the department has seen growth in commission it receives from its money order service to about Rs. 600 crores in financial year 2014-15, up from Rs. 481.6 crores in 2011-12.
"Almost all of our about 25,000 department post offices now have e-money order service. With this service, India Post (brand name under which DoP operates) is able to remit money the next day to the doorstep that earlier took about a week, depending on the destination," the official said.
Responding to certain reports, he said: "Improving a service does not mean closing of service. There are some private companies which have come with mobile money transfer technology that we think are spreading rumours. With e-money order we have made money order more secure and fast and with involvement of government people feel safe."
He said that e-money order service is available throughout the country but a postman is required to collect pay order from the nearest computerised post office physically.
"Once digital handheld devices will be available at extra-departmental post offices, which are operated by gramin dak sevaks, the money remittance time will be further reduced," the official said.
A person can send a maximum of Rs. 5,000 through e-money order. India Post also offers instant money order service through which a person can send a maximum of Rs. 50,000.