Department of Posts Plans Integration of LSG (SBCO) with Postal Operative Side
Proposal for Merger of LSG (SBCO) Cadre with Postal Operative LSG Cadre Under Consideration
The Department of Posts, Ministry of Communications, has initiated consultations on a significant cadre restructuring proposal involving the merger of the LSG (SBCO) cadre with the LSG cadre of the Postal Operative side. The proposal, circulated through a Directorate letter dated 18 May 2026, seeks comments and suggestions from all Postal Circles and stakeholders.
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The move is expected to bring long-term structural changes in the supervisory hierarchy of the Savings Bank Control Organisation (SBCO) and the Postal Operative side.
Background of the Proposal
According to the Directorate communication, draft modalities for the proposed merger have already been prepared in consultation with the Personnel Division. Postal Circles have been directed to examine the draft and submit feedback within a fortnight.
The proposal primarily aims to gradually integrate the LSG (SBCO) cadre into the mainstream Postal Operative hierarchy while ensuring continuity of SBCO functioning.
Key Highlights of the Draft Modalities
One-Time Option for LSG (SBCO) Officials
Existing LSG (SBCO) officials may be given a one-time option to switch over to the Postal Operative side. However, officials opting for the merger would be placed as the junior-most officials in the LSG (PO) gradation list of the concerned Postal Division, similar to Rule 38 transfer provisions.
Once switched, officials will not be permitted to revert back to the SBCO hierarchy and their future promotions would be regulated under the Postal Operative line.
Officials Choosing to Remain in SBCO
Officials who do not opt for the merger will continue in the SBCO hierarchy until promotion or retirement. Their promotions will depend on the availability of higher posts within the SBCO supervisory cadre.
Gradual Reduction of Separate SBCO Cadre
The proposal envisages a gradual phasing out of the separate LSG (SBCO) cadre. Vacant posts and future vacancies arising due to retirement or promotion would be added to the strength of Postal Divisions where SBCO units are geographically located.
This means that, over time, the entire sanctioned strength of LSG posts in SBCO would effectively merge into the Postal Operative establishment while the sanctioned establishment of SBCO offices would continue for operational purposes.
Posting and Transfer Arrangements
The draft modalities propose that posting of LSG officials to SBCO offices would henceforth be managed by Postal Divisions on a tenure basis through Transfer and Placement Committees (TPCs).
At the same time, Circle Heads would ensure that officials posted to SBCO possess adequate knowledge of Savings Bank rules, software systems, and operational procedures. Necessary in-service training may also be imparted through Postal Training Centres (PTCs).
Seniority and Promotion Conditions
One of the most significant aspects of the proposal relates to seniority and promotional benefits.
The Directorate has clarified that:
Officials merging into the Postal Operative side will become junior-most in the LSG (PO) gradation list.
They cannot claim retrospective seniority, promotion, pay parity, or parity with already promoted HSG officials.
Past service in LSG (SBCO) will not count for eligibility for HSG-II (PO) promotion through DPC.
However, past SBCO service will be counted for appearing in LDCE examinations.
These conditions are likely to become a major point of discussion among service associations and employees.
Likely Impact on Postal Employees
The proposed merger could bring both opportunities and concerns for employees:
Possible Advantages
Integration into the mainstream Postal Operative hierarchy.
Wider promotional avenues in HSG-II/HSG-I and higher grades.
Simplification of cadre management.
Better manpower flexibility for Postal Divisions.
Possible Concerns
Loss of existing seniority position.
Placement as junior-most officials after merger.
Reduced weightage of past SBCO service for DPC promotions.
Uncertainty among officials preferring specialized SBCO work.
Consultation with Staff Federations
Copies of the proposal have also been forwarded to major staff federations and SBCO unions, including FNPO, BPEF, and All India SBCO Employees Associations, indicating that wider consultations with employee representatives are expected before any final decision is taken.
Conclusion
The proposed merger of the LSG (SBCO) cadre with the Postal Operative LSG cadre marks a potentially transformative step in restructuring supervisory cadres within the Department of Posts. While the proposal may help streamline administration and improve manpower utilization, issues relating to seniority, promotion eligibility, and cadre identity are likely to remain central to discussions in the coming weeks.
Postal employees and associations are expected to carefully examine the draft modalities before submitting their views to the Directorate.