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Thursday, August 28, 2014

Gramin Dak Sewaks in rural areas are proposed as Business Correspondent of Banks in Pradhan Mantri Jan Dhan Yojana

Press Information Bureau
Government of India
Ministry of Finance
27-August-2014 17:58 IST

Prime Minister to Launch Pradhan Mantri Jan Dhan Yojana Tomorrow:

To Dedicate Mobile Banking Facility on Basic Mobile Phones to the Nation  

            The Prime Minister, Shri Narendra Modi will launch the Pradhan Mantri Jan Dhan Yojana (PMJDY) tomorrow at a function in the national capital. On this occasion, an exhibition on Technology and Financial Literacy will be organized. The Prime Minister will visit this exhibition. A film on ‘Financial Inclusion’ will also be screened. The Prime Minister will unveil a Logo and a Mission Document on Financial Inclusion.  He will also distribute awards to the winners of the Logo contest and the ‘account opening kit’ to five beneficiaries on this occasion. He will dedicate the mobile banking facility on the basic mobile phone (USSD) to the nation. 

The Union Finance Minister Shri Arun Jaitley, Minister of State for Finance, Ms. Nirmala Sitharaman, Principal Secretary to the Prime Minister, Cabinet Secretary and Governor, Reserve Bank of India (RBI) will be present on this occasion among other dignitaries. 

Under PMJDY, Comprehensive Financial Inclusion based is proposed be achieved under the six pillars as under: 

Phase I (15th August ,2014-14th August,2015)- 

     Universal access to banking facilities

     Providing Basic Banking Accounts with overdraft facility of Rs.5000 after six months and RuPay Debit card with inbuilt accident insurance cover of Rs. 1 lakh and RuPay Kisan Card

      Financial Literacy Programme 

Phase II (15th August 2015-15th August,2018)- 

     Creation of Credit  Guarantee Fund   for coverage of defaults in overdraft  A/Cs

     Micro Insurance

     Unorganized sector Pension schemes like  Swavlamban  

In addition, in this phase, coverage of households in hilly, tribal and difficult areas would be carried out. Moreover, this phase would focus on coverage of remaining adults in the households and students. 

        All the rural & semi urban areas of the country is proposed to be mapped into Sub Service Area (SSA) comprising 1000-1500 households with an average 3-4 villages with relaxation in NE/ Hilly states.

        It is also proposed that looking to the viability of each centre around 74000 villages with population more than 2000 which were covered by Business Correspondents under Swabhiman Campaign will be considered for conversion into full fledged Brick & Mortar branches with staff strength of 1+1/1+2 in the next three years.

        All the 6 lakh villages across the entire country are to be mapped according to the Service Area of each Bank to have at least one fixed point Banking outlet catering to 1000 to 1500 households, called as Sub Service Area (SSA). It is proposed that SSAs shall be covered through a combination of banking outlets i.e branch banking and branch less banking. Branch banking means traditional Brick & Mortar branches. Branchless banking comprises of fixed point Business Correspondents agents, who act as representative of Bank to provide basic banking services.

        The implementation strategy of the plan is to utilize the existing banking infrastructure as well as expand the same to cover all households. While the existing banking network would be fully geared up to open bank accounts of the uncovered households in both rural and urban areas, the banking sector would also be expanding itself to set up an additional 50,000 Business correspondents (BCs), more than 7000 branches and more than 20000 new ATMs in the first phase .

        The comprehensive plan is necessary considering the learnings from the past where a large number of accounts opened remained dormant, resulting in costs incurred for banks and no benefits to the beneficiaries.  

     The plan, therefore, proposes to channel all Government benefits (from Centre/State/Local body) to the beneficiaries to such accounts and pushing the Direct Benefits Transfer (DBT) scheme of the Union Government including restarting the DBT in LPG scheme. MGNREGS sponsored by Ministry of Rural Development (MoRD, GoI) is also likely to be included in Direct Benefit Transfer scheme.

        Keeping the stiff targets in mind, in the first phase, the plan would focus on first three pillars in the first year starting from 15th August, 2014.

        The target for setting up additional 50,000 BCs is quite challenging given the constraints of telecom connectivity.

         In order to achieve this plan, phase wise and State wise targets for Banks have been set up for Banks for the period 15th August, 2014 to 14th August, 2015. 

        In order to achieve a “demand” side pull effect, it would be essential that there is Branding  and awareness of Business Correspondent model for providing basic banking services, Banking Products available at BC outlets and RuPay Cards. A media plan for the same is being worked out in consultation with banks.

        A Project Management Consultant/Group would be engaged to help the Department implement the plan.

        It is proposed to launch the programme simultaneously at National level in Delhi, at every State capital and all district headquarters.

        A web-portal would be created for reporting/monitoring of progress.

        Roles of various stakeholders like other Departments of the Central Government, State Governments, RBI, NABARD, NPCI and others have been indicated.

     Gram Dak Sewaks in rural areas are proposed as Business Correspondent of Banks.

        Department of Telecom has been requested to ensure that problems of poor and no connectivity are resolved. They have informed that of the 5.93 lakh inhabited villages in the country (2011 census) only about 50,000 villages are not covered with Telecom connectivity.

India Post's banking application: RBI lobs ball in government's court

MUMBAI: Reserve Bank Deputy Governor R Gandhi today said the Union government has to take a final call on application for banking licence by the India Post, which has a network of over 1.5 lakh post offices countrywide.

"India Post is in the hands of the government. It is the government which has to approve them to come to us for licence," Gandhi told reporters here.

RBI, which approved only two names out of the 25 applicants in February this year, had left it to the government to decide on the way ahead with India Post's application.

According to reports, the Ministry of Finance, which controls 27 state-run commercial banks, is averse to the idea of the postal department getting into banking.

The RBI says that deepening the financial inclusion is a key objective of granting more licenses and according to some experts the existing network of India Post makes it an ideal candidate.

Meanwhile, on payment and differentiated banks, Gandhi said RBI has received a slew of suggestions on the draft guidelines and is analysing them. He reiterated that this is a priority area for the central bank and it will come out with final guidelines by the end of the year.

India Post to roll-out 1,000 ATMs

MUMBAI, AUG 26:  
The Department of Posts will roll-out 1,000 ATMs in the next couple of years as part of its plans to hive off its financial services business into a bank.
Currently, the Department, which is also known as India Post, has two ATMs – one each at Chennai and Delhi.
Kalpana Tewari, Member (Planning & Technology), Department of Posts, said the ATM roll-out is linked to putting the post offices on the core banking platform.
Since 2012, the Department has put 676 Post Offices on the core banking platform. By end of March 2016, it expects to put 25,000 such offices on the platform, which entails networking of branches to enable customers to access their account from and perform transactions at any of these networked offices.
The Department has a budget of Rs. 5,000 crore for modernising its operations, said Tewari.
On the Department’s plans to foray into banking, she observed that while the intention of her Department is to enter the banking space, when and how it will be done remains to be seen.
Given that India Post has been handling financial services such as Post Office savings schemes, postal life insurance and money remittance services for several decades, it is likely that it will opt to become a payments bank.
Tewari said the Department, which has 30 crore accounts with deposits aggregating Rs. 6 lakh crore, as a standalone entity as well as a partner to banks is an ideal vehicle for achieving the goal of financial inclusion.
Among the challenges facing the Department include technology and setting up accounting systems, she added.
(This article was published on August 26, 2014)

SPEED POST - PASSPORT SERVICE WITH EXCLUSIVE BAR CODES w.e.f 15-09-2014

NFPE WRITES TO DIRECTORATE



OBITUARY
Father of Com. Giriraj Singh, President NFPE and General Secretary AIRM&MMS EU Group-C expired on 27th August, 2014 at 10 P.M. He was above 90 years. CHQ conveys its heartfelt condolences to Com. Giriraj Singh and his bereaved family.

National Council JCM Staff Side has made a demand to 7th PAY Commission for Interim Relief and Merger of DA with Basic Pay

NC JCM had raised the issue regarding payment of interim relief and merger of dearness allowance with pay , as an Agenda Item of the Standing Committee of National Council (JCM ) in its meeting held on 7th May, 2014
National Council (Staff Side)

Shiva Gopal /Mishra
Secretary
National Council (Staff Side)
Joint consultative Machinery for Central government employees
13-C, Ferozshah Road, New Delhi –110001

21-08-2014
The Hon’ ble Chairman,
7th Central Pay Commission
Chatrapati Shivaji Bhawan,
1st Floor, B-14/A, Qutab Institutional Area,
New Delhi -110016

Respected Sir,

Reg : Payment of Interim Relief and Merger of Dearness Allowance with Pay.

The Staff Side of National Council (JCM) , had raised the issue regarding payment of interim relief and merger of dearness allowance with pay , as an Agenda Item of the Standing Committee of National Council (JCM ) in its meeting held on 7th May, 2014.

After detailed deliberations , it was stated by the Secretary (Expenditure), Ministry of Finance on this item that since the terms of reference enables the 7th CPC to send Interim Report , as such, the Staff Side might approach the Pay Commission for a report on Interim Relief and Merger of Dearness Allowance, as recorded in the Record Note of meeting, forwarded to Staff Side vide Director(JCA), Government of India, Ministry of Personnel, Public Grievances and Pensioners , Department of Pension and Pensioner’s Welfare ‘s letter No. 3/9/2014/JCA dt.24/7/2014.

We, therefore, humbly request you to kindly favourably consider our demand of payment of Interim Relief and Merger of Dearness Allowance with pay as Dearness Allowance, has since crossed the value of 100% on 1st January, 2014 and a number of Government Employees are superannuating every month,who would be deprived of the benefit of the same.

Yours sincerely,
sd/-
(Siva Gopal Mishra )
Secretary (Staff Side)

COC Karnataka meets Chirman 7th CPC at Bangalore

Confederation of Central Government 
Employees and Workers
Karnataka State


The meeting with CHAIRMAN AND MEMBERS of 7th Central Pay Commission was held at Bangalore 0n 24th August 2014 for about 50 minutes.
The following members of COC Karnataka participated in the meeting.
Com S. Radhakrishna President of COC Karnataka
( Representing department AG’s)
Com Juliana Vincent Vice President of COC Karnataka
(Representing department Survey of India).
Com P.S.Prasad General Secretary of COC Karnataka
(Representing department Central Ground Water Board.)
Com Vinod Joint Secretary of COC Karnataka
(Representing department Income Tax office).
Com M,Ramakrishna Joint Secretary of COC Karnataka
(Representing department RMS).
Com Dominic Vijaya Anand Finance Secretary COC Karnataka 
(Representing department Postal Accounts).
Com D.K.Bharathi Assistant Secretary of COC Karnataka
(Representing department Postal Admin.)
Com Muthukumar Advisor of  COC Karnataka
(Representing department Postal.)
Com C.A.Kamesharwary Asst Finance Secretary of COC Karnataka
 (Representing department IMD.)
The President Com Radhakrishna welcomed the Chairman and Members of the 7thCPC for the meeting.
The General Secretary Com P.S.Prasad presented the power point presentation.
The interactions were held for about 50 minutes with the Pay Commission officials,
Com   Radhakrishna, Com P.S.Prasad, Com Muthukumar , Com Vinod, & Com Ramakrishna spoke effectively on various subjects.
The following items and points were presented:
Bangalore Prices:
It was brought to the notice of the commission that the cost of living is high in Bangalore compared to other metro cities in the country and the prices of all essential commodities are comparatively high in the State of Karnataka. House rent is in the range of  Rs 7000/- per month to Rs 35,000/- per month. The private school fees is from Rs 25,000/- to Rs 50,000/- per year.  Donation is also too high, the cost of local transportation is from Rs 2000/- to Rs 10,000/- per month.
(This was only informative portion on prices)

Minimum Wage:
It was brought to the notice of the commission that:
a)      Since Government is a model employer, they should provide minimum wages as per the 15 ILO conference and other wages as per the educational qualification & skill requirement of the job .
b)      Higher skill requirement due to computer usage and modernisation of equipment's. The skill requirement is higher compared to earlier days due to technology advancement.   
c)      The  higher inflation which is existing from the last eight years which is effecting the Government Employees, the money value has gone down to a large extent & there is erosion in wages.
d)      The salaries of the Government Employees are fully accounted for tax calculation, whereas in private sector allowances are not taxed.
(The commission Agreed to consider this on the lines of JCM memorandum)
It was brought to the notice of the commission that to attract higher talent to Central Government higher pay scales should be given.
(The commission was of the view that people choose their career on various aspects including wages.  Wages of Government employees cannot be compared with private sector.   It was pointed out by us that though the wages cannot be compared with private sector there is a need to keep the wages in central government that people will continue in government after joining.  Chairman assured to examine this aspect)

EQUAL PAY FOR EQUAL WORK

It was brought to the notice of the commission that in respect EQUAL PAY FOR EQUAL WORK
a)      For the same post which include similar duties and responsibility, there are different pay scales/ Grade Pay existing for same nature of duties and similar recruit qualifications.
b)      Grant of Grade Pay Rs.4800 to all Supervisors cadre.
c)      The gazetted Group “B” post be  started  from Rs 5400/- GP. 
d)      LDC pay scales should be provided with Grade Pay of Rs.2400 as their minimum qualifications is 12th std.
e)      There should not be any discrimination in the Pay scales of CSSS Cadre and Subordinate Departments since the nature of work being carried out by them is similar. Hence, disparity is to be removed.
f)        The Drivers of Subordinate offices  be placed with starting pay of Rs 2400/ GP as in Lok Sabha Secretariat.
g)      Graded structure for MTS should also be recommended as the 5th CPC vide para no 53.13 had recommended graded structure for these MTS.
h)      Pay scales of Stores wing persons be upgraded considering their work load and level of responsibility.
i)        Provide additional increment w.e.f. 01.01.2006 to staff working in old pay scale Rs.7450-11500 as in case of Inspectors of Central Excise and Income tax departments.
 (The commission positively agreed to consider this suggestion except Drivers case.)

Increment rate of 5% and Promotion policy.
It was brought to the notice of the commission that on Increment rate of 5% and Promotion policy.
a)      As the Government employee put more and more service, he will be more trained to perform his duties in a better befitting manner. Thus the Government is more beneficial as good quality of work can be expected from an experienced official.
b)      His family responsibility will increase with age.
c)      They has to educate the children in professional courses, marriage of his children has to be performed, his medical expenses will also increase.
d)      There should be adequate financial protection for him, the better rate of increment should motivate him to work more.
e)      The person joining a Central Government Service is not just for the employment is for a whole career.
f)       On promotion one shall get two additional increments subject to an minimum salary increase of Rs 3000/- per month as he will perform higher duties and responsibility's.
g)      He shall get not less than five financial up gradations in promotional hierarchy during his service to motivate him to work more.
h)      Similarly the scientist are provided to FCS and get promotions every 4 years.
(The commission positively agreed to consider this suggestion.)

Consumer Price Index & Dearness Allowance Formula.
It was brought to the notice of the commission that on Consumer Price Index & Dearness Allowance  Formula.
a)      CPI as on 1/1/2006  was 115.76 points.
b)      CPI as on 1/1/2014  was 237 points.
c)      The CPI has increased by 121 points .
d)      But the DA increased by just 100% as on 1/1/2014 from 1/1/2006.
e)      The actual DA should have been 121 % not just 100% as on Jan 2014.
f)       Actual increase in price rise is more than 200 % and DA should have been more than 200%.
g)      6 months average DA computation of Consumer Price Index should be provided to Central Government employees rather than 12 months average.
h)      Rounding off DA be done whenever it crosses fraction more than 0.50
(The commission positively agreed to consider this  suggestion.)

Allowances:
It was brought to the notice of the commission that on Allowances
a)      All allowances such as HRA, Tour DA, CEA (tuition fees) , Cashier Allowances, etc. should be increased by four times.
b)      OTA & Night Duty to be paid on par with Railways .
c)      When ever there is an increase in Dearness Allowance, the above  allowances be also increase as in the case of Transport allowance.
(The commission positively agreed to consider this suggestion.)

Transport allowance:
It was brought to the notice of the commission that on Transport allowance
a)      The  field oriented organizations like CGWB, Survey Of India, GSI, IBM, IMD, etc. most of the categories remain in fields, even Postal Employees and AG's Employees  are effected.  
b)      Now the field going staff are deprived of earlier CCA and present Transport Allowance as they cannot fulfill the condition of at least one day stay in a month in head quarters.  
c)      This condition of being present at Hqrs. Office at least a day in a calendar month becoming eligible for transport Allowances should be removed.
(The commission positively agreed to consider this suggestion.)

Taxes:
It was brought to the notice of the commission that on taxes:
a)      The  Fifth Central Pay commission in its report vide para no105.12 has said that  Dearness allowance  be paid free of net taxes as the DA is paid for compensation against price rise. All other allowances should also be paid net of taxes which has been examined by 5th CPC in para no 167.
(The commission agreed to examine this suggestion.)

Health Care system:
It was brought to the notice of the commission that on Health Care system
a)      More CGHS hospitals should be made available or alternatively the person should have the option to choose any of the hospitals of his choice and the bill to be passed with AIMS rates.  
b)      Existing CGHS system needs improvement.
c)      Proper ward entitlement should be made as per grades.
d)      Cash less facility for hospitalization.
e)      Autonomous bodies shall also be included in CGHS
(The commission to examine this suggestion, but not satisfied with demand of Cash less facility for hospitalization.)
It was brought to the notice of the commission that on following issues.

Other points:
a)      Central Government Strength.
b)      Non-filling up of vacant posts has resulted in increased work load on the existing employees.
c)      Lower Spending by Central Government on its Employees.
d)      Leave / Holidays.
e)      12 days Casual Leave.
f)       Restrictions EL of  300 days to be removed.
g)      The PSU are providing reward medals after 15 years, 25 years and end of service, similarly such reward should be provided to Central Government Employees.
h)      In case of death of Government Servant during while on duties, his family members should get compassionate  appointment not considering restrictions of 5%.
i)        Education Loan should be provided.
(The commission to examine this suggestion)