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Welcome to The AIAIASP...........write to us on circlesecretary@gmail.com
Retirement

Shri B M Meshram, SSPO's, Nagpur City Dn., Nagpur is retiring from Government Service on Superannuation on 30.04.2015.


This Association Wishes him a very Happy and Healthy Retired Life 

CAT Case : Upgradation of GP of Inspector Posts....updates!!!

OA No. 289/13 filed by Association is posted on 18/6/2015 for final hearing before the Hon'ble CAT Ernakulam Bench.  

The representatives of Kerala Circle branch met our Counsel and discussed the matter for filing of MA for early hearing after summer vacation of court.
OA No. 1328/HR/2011 filed by Punjab and Haryana Circle was argued in detail on 23/4/2015 and matter ordered to be kept reserved for pronouncement on 28/4/2015. The case was filed for following relief;

1. Quash the letter dated 3.10.2011 by which Limited Departmental Examination for Promotion to the cadre of Sr. Postmaster (Gazetted) has been ordered to be held on 31.12.2011 which is against the Department of Posts, Postal Supdts/Postmaster Group B Recruitment Rules, 1987 as amended from time to time as there is no vacant post in the quota prescribed under the rules as detailed in the preceding paras.
2. Quash the letter dated 29.11.2011 by which the applicants have been informed that ASPs are not eligible for appearing in the examination.

3. Quash the Department of Posts, Senior Postmaster (Group B Gazetted), Postmaster (Grade ‘III and II-Group B non-Gazetted) and Postmaster (Grade I-Group C Non-Gazetted) Recruitment Rules, 2010, i.e Postmasters Cadre Rules, 2010 run contrary to the Postal Services Postmaster Group B Rules, 1987 as amended from time to time, as the quota of the Inspector Line, has also been reduced from 19% and 75% by carving out the posts.

4. Issue direction to the respondents to consider the case of the members of the applicant No. 1 Union and other applicants for promotion under these rules of 1987 in their quota and promote them from due date with all the consequential benefits and it be declared that the bifurcation of quota now carried out by the respondents is illegal, arbitrary and bereft of any discernible principle.

5. Any other order or direction deemed fit and proper in the facts and circumstances of the case may also kindly be issued in favour of the applicants.

During the course of argument Department intimated that IP cadre will be given 97% posts in PS Gr. B cadre + 75% posts in Sr. PM cadre. This will not disturb IP Line posts quota in Gr. B cadre as per the previous calculations. General Line will be given 3% posts in PS Gr. B examination + 25% posts in Sr. PM cadre as per seniority. Therefore, IP line share would be 75% by inter-se-seniority and 22% by LDCE for promotion to the PS Gr. B cadre. Revised Recruitment Rules of PS Gr.B cadre is still not cleared by Nodal Ministry.

In view of the arguments made by department, above said OA is dismissed. 

Tuesday, April 28, 2015

Dearness Relief Orders for Central Govt Pensioners from Jan 2015


Dearness Relief Orders for Central Govt Pensioners from Jan 2015

Grant of Dearness Relief to Central Government pensioners/family pensioners – Revised rate effective from 1.1.2015.

G.I., Min. of PPGP, DPPW, F.No.42/10/2014-P&PW(G), dated 27.4.2015

Subject : Grant of Dearness Relief to Central Government pensioners/family pensioners — Revised rate effective from 1.1.2015.

The undersigned is directed to refer to this Department’s OM No. 42/10/2014- P&PW(G) dated 29th September, 2014 on the subject mentioned above and to state that the President is pleased to decide that the Dearness Relief (DR) payable to Central Government pensioners/family pensioners shall be enhanced from the existing rate of 107% to 113% w.e.f. lst January, 2015.


2. These orders apply to (i) All Civilian Central Government Pensioners/Family Pensioners (ii) The Armed Forces Pensioners, Civilian Pensioners paid out of the Defence Service Estimates, (iii) All India Service Pensioners (iv) Railway Pensioners and (v) The Burma Civilian pensioners/family pensioners and pensioners/families of displaced Government pensioners from Pakistan, who are Indian Nationals but receiving pension on behalf of Government of Pakistan and are in receipt of ad-hoc ex-gratia allowance of Rs. 3500/- p.m. in terms of this Department’s OM No. 2311/97-P&PW(B) dated 23.2.1998 read with this Department’s OM No. 23/3/2008- P&PW(B) dated 15.9.2008.

3. Central Government Employees who had drawn lump sum amount on absorption in a PSU/Autonomous body and have become eligible to restoration of 1/3rd commuted portion of pension as well as revision of the restored amount in terms of this Department’s OM No. 4/59/97-P&PW (0) dated 14.07.1998 will also be entitled to the payment of DR @ 113% w.e.f. 1.1.2015 on full pension i.e. the revised pension which the absorbed employee would have received on the date of restoration had he not drawn lump sum payment on absorption and Dearness Pension subject to fulfillment of the conditions laid down in para 5 of the 0.M. dated 14.07.98. In this connection, instructions contained in this Department’s OM No.4/29/99-P&PW (D) dated. 12.7.2000 refer.

4. Payment of DR involving a fraction of a rupee shall be rounded off to the next higher rupee.

5. Other provisions governing grant of DR in respect of employed family pensioners and re-employed Central Government Pensioners will be regulated in accordance with the provisions contained in this Department’s OM No. 45/73/97-P&PW (G) dated 2.7.1999 as amended vide this Department’s OM No. F. No. 38/88/2008-P&PW(G) dated 9th July, 2009. The provisions relating to regulation of DR where a pensioner is in receipt of more than one pension will remain unchanged.

6. In the case of retired Judges of the Supreme Court and High Courts, necessary orders will be issued by the Department of Justice separately.

7. It will be the responsibility of the pension disbursing authorities, including the nationalized banks, etc. to calculate the quantum of DR payable in each individual case.

8. The offices of Accountant General and authorised Pension Disbursing Banks are requested to arrange payment of relief to pensioners etc. on the basis of these instructions without waiting for any further instructions from the Comptroller and Auditor General of India and the Reserve Bank of India in view of letter No. 528-TA, 11/34-80-11dated 23/04/1981 of the Comptroller and Auditor General of India addressed to all Accountant Generals and Reserve Bank of India Circular No. GANB No. 2958/GA-64 (ii) (CGL)/81 dated the 21st May, 1981 addressed to State Bank of India and its subsidiaries and all Nationalised Banks.

9. In their application to the pensioners/family pensioners belonging to Indian Audit and Accounts Department, these orders issue after consultation with the C&AG.

10. This issues with the concurrence of Ministry of Finance, Department of Expenditure conveyed vide their ID No. 1(4)/E.V/2004 dated 24thApril, 2015.

Authority: http://pensionersportal.gov.in/

RAJYA SABHA Q&A regarding Post Bank of India & Task force Recommendations on PBI

GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY
DEPARTMENT OF POSTS     

RAJYA SABHA
UNSTARRED QUESTION NO.163
                                        TO BE ANSWERED ON 24TH APRIL, 2015

POSTAL BANKS

163. DR. PRADEEP KUMAR BALMUCHU:

Will the Minister of COMMUNICATIONS AND INFORMATION TECHNOLOGY be pleased to state:

(a)       whether it is a fact that Government is urging the Department of Posts to come up with opening of Postal Banks in the country, if so, the details thereof;

(b)       whether the Subramanian Committee, to which the matter had been referred, has submitted its report and has made recommendations in this regard; and

(c)        if so, the details thereof?
ANSWER

THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY
(SHRI RAVI SHANKAR PRASAD)

(a)       Sir, the Department of Posts has submitted an application to Reserve Bank of India on 30.1.2015 seeking license for setting up Post Bank of India under the rubric of “Payments Bank”. The Government is committed to increasing access of the people to the formal financial system and in this context, Government proposes to utilize the vast Postal network with nearly 1, 54,000 points of presence spread across the villages of the country.  The Government hopes that the Postal Department will make its proposed Payments Bank venture successful so that it contributes further to the Pradhan Mantri Jan Dhan Yojana. The details of the proposed Post Bank would be finalized once the Reserve Bank of India takes a favourable decision on application submitted by Department of Posts. In the recent budget speech also the Finance Minister has appreciatingly talked about Post Bank.

(b) & (c )         The Task Force on Leveraging the Post Office Network under the Chairmanship of retired Cabinet Secretary Shri. T.S.R.Subramanian,  has submitted its report during November-2014. The said task force has recommended for setting up Post Bank of India. The details of the recommendations are reproduced in the Annexure- ‘A’ enclosed herewith.




Annexure-A

Recommendations of Task Force on Leveraging Post Office Network with respect to Setting up of Post Bank of India:-

(i)   The proposal is not to convert the PO Network into a Bank, but to set up a fully professional new Bank to further financial inclusion and meet the objectives of the Pradhan Mantri Jan Dhan Yojna, which specifically provides for the extension of credit to all Indians resident in every part of India, particularly in rural areas.

(ii)  This opportunity for achieving universal financial inclusion via technology and the institutional reach of the PO Network must not be lost. There is admittedly a risk involved, as there is in any new venture into uncharted waters. The risk involved can and must be managed in the interests of the overall larger national objectives.

(iii) The PBI must be professionally managed and operated, with credit and other risks being handled by experienced experts hired from the market. In its own interest, its operations must be fully in line and compliant with RBI Guidelines.

(iv)  A new institution, to be called the Post Bank of India or by some other suitable name, should be set up as a commercial bank offering the full spectrum of financial and banking services.

(v)  As the owner of the proposed PBI, the Government of India may take decisions as appropriate on structural and organizational issues and other details, including the funding requirements.

(vi)  The Task Force is of the view that the PBI should be set up under an Act of Parliament and that establishing the PBI as a statutory institution and a Government Bank would enhance its credibility, insulate it from local pulls and greatly facilitate its operations.

(vii) It is essential to structure the proposed PBI in such a manner as to pre-empt the possibility of outside interests influencing its day-to-day operations.

(viii) The Task Force also recommends that the PBI should initially be set up as a Public Sector Bank wholly owned by the Government of India.

(ix) The initial capital requirement, estimated at Rs. 500 crores as per RBI requirements would be fully funded by the Government.

(x) After the Bank establishes itself in 3 to 5 years, the Board of Directors could take a view on floating an IPO to raise fresh capital.

(xi)  The PBI will focus on fulfilling the Government’s mandate of financial inclusion and on bringing the un-banked and under-banked segments of the population, particularly in rural, semi-rural and remote areas within the ambit of the formal monetized economy.

(xii)  A view needs to be taken on how best to seamlessly integrate the earlier banking operations into the proposed new structure, The best and seamless method would be to fully absorb the POSB in the new proposed Bank (PBI).

(xiii) The PBI will offer services including credit, which are beyond the remit of the POSB.

(xiv) The PBI will develop financial products and services which are specially tailored to the needs of the rural and urban unbanked population, if necessary in collaboration with other banks.

(xv)  The PBI will function as a commercially viable and self-sustaining entity without the need for continuing Government subsidies.

(xvi) After the Initial gestation period, it should generate its own resources and sustain itself in the competitive market environment.

(xvii) The PBI should price its services on a cost plus basis and revise these rates from time to time, so that its operations do not become a continuing and increasing burden on the Government exchequer.

(xviii) The PBI will start with a Head Office Main Branch and will thereafter expand its operations by opening Branch offices in the Metro towns and State capitals, to be manned by banking professionals.

(xix) The longer term objectives would be to establish a Branch Office of the PBI in each District Headquarter over a 3 to 5 year period, to be operated mostly by banking professionals.

(xx) The 150,000-plus Departmental and Branch POs will act as Banking Correspondents for the PBI.

(xxi) Careful consideration should be given to the various types, elements and levels of risk involved in the PBI’s operations.

(xxii) Robust System Protocols and Standard Operating Procedures should be put in place to manage these risks effectively.

(xxiii) The PBI should recruit/commission the services of banking experts to manage its credit, portfolio and market risks.

(xxiv) Appropriate management capabilities should be mobilized from the market and robust systems and processes should be put in place to ensure that Non-Performing Assets are kept within acceptable limits.

(xxv) It is neither necessary nor desirable to mandate a waiting period before the PBI enters into credit and lending operations.

(xxvi) The PBI should be constituted and begin working as a credit and lending Bank immediately, without any trial/waiting/learning period.

(xxvii) The PBI should be set up as an independent Statutory and corporate entity offering the full bouquet services, including credit, to its customers.

(xxviii) The PBI will primarily target currently unbanked and under-banked customers in rural, semi-rural and remote areas, with a focus on providing small and affordable loans and simple deposit products.

(xxix) Customers will be provided with full-fledged Savings Accounts, which can be retained even with zero balances, as provided for in the PMJDY.

(xxx) Credit risks will be managed by hiring professionals from the banking sector and by developing and implementing robust protocols for building checks and balances in the system. Market and robust systems and processes should be put in place to ensure that Non-Performing Assets are kept within acceptable limits.   

Thursday, April 24, 2015

Bio-Metric Attendance – AADHAR Enabled Bio-metric Attendance System


Bio-Metric Attendance – AADHAR Enabled Bio-metric Attendance System

Bio-Metric Attendance

The Government has decided to use an AADHAR Enabled Bio-metric Attendance System (AEBAS) in all offices of the Central Government, including attached / sub-ordinate Offices, in India as an enabling platform for marking of attendance.

As per the information collected, the status of implementation of the AEBAS in Central Government Offices in Delhi is as follows:


No of organizations where employees are marking their attendance – 312
No of organizations where employees are registered but not started marking their attendance – 93
No of organizations on boarded but yet to complete formalities for employees registration – 100
Total – 505

National Informatics Centre has incurred an expenditure of Rs. 4.8 crores in procuring and installing the front end devices like Wall mounted Biometric Terminals, desktop based finger print and Iris scanners, etc. for the above offices. Installation is part of the cost of procurement.

This was stated by the Minister of State for Personnel, Public Grievances and Pensions and Minister of State in the Prime Minister’s Office Dr. Jitendra Singh in a written reply to a question by Shri Jose K.Mani in the Lok Sabha today.

Source: PIB News

Thursday, April 23, 2015


Skill Development for Government Servants - National Training Policy (NTP)


Skill Development for Government Servants - National Training Policy (NTP)

Minister of State (Independent Charge) for Skill Development & Entrepreneurship Shri Rajiv Pratap Rudy has said that the Government has a National Training Policy (NTP) to develop a professional, impartial and efficient civil service. NTP provides for Competency Framework to ensure that civil servants have the requisite knowledge, skills and attitude to effectively perform the functions entrusted to them. Competencies encompass knowledge, skills and behaviour, which are required in an individual for effectively performing the functions of a post.


In a written reply in the Lok Sabha today Shri Rudy said, each Ministry/Department is required to identify the competencies needed for various posts under their control and conduct training for their cadres/employees through various training programmes as per their need under this Policy. Department of Personnel and Training (DoPT), the nodal department for National Training Policy (NTP), has developed competency dictionary and tool kit for the civil services. Moreover, generic competency mapping has been completed for every unique position in Department of Personnel & Training, Ministry of Corporate Affairs and Central Secretariat Services cadres.

Source: PIB News
In a move to strengthen postal services in the country, Indian postal department will set up six additional Postal Training Centres (PTCs) in the country. 

To ensure committed and efficient employees, the department is mulling over setting up additional training centres under the 12th Five Year Plan, said S K Sinha, member of human resources development, Postal Services Board. 

Delivering the keynote address of golden jubilee celebrations of PTC (Mysuru) here on Monday, he said that the proposed centres will impart training in recent technologies and enable employees meet present-day challenges. 

Commitment from employees is much required to meet the challenges, he said, adding that training would play an important role in changing the attitude of employees. 

The department is also planning to impart training among group A and B employees to make them efficient, he added. Since 1980s, the nature of business has changed, he pointed. 

He also lauded PTC (Mysuru) for its training programmes and other activities. Ever since its inception on April 20, 1965, the centre has trained 1,16,590 employees in various courses. It follows Universal Postal Union Train Post Methodology to train the employees. PTC (Mysuru) has been catering to the needs of the postal circles of Karnataka, Kerala and Andhra Pradesh. 

Chief postmaster general (Karnataka circle) M S Ramanujan said that the department is gearing up (to meet the challenges), but it takes some time to absorb recent technologies and services. He said that e-commerce business needs the help of post department, and "it is certain they will come to us". e-commerce is the new baby of the department, and it will nourish the baby, he said, asking employees to be sensitive in handling e-commerce services. 

On the occasion, former directors of PTC were felicitated and a special cover on PTC (Mysuru), picture post cards on the wood works of PTC and a sovereign were unveiled. PTC (Mysuru) director D Veena Kumari presented a report on the journey of PTC.
Source:-The Times of India


General Provident Fund Interest Rate 8.7% for 2015-16


General Provident Fund Interest Rate  8.7% for 2015-16

Government Decides to Fix Interest Rates at 8.7% for General Provident Fund(GPF) and other Similar Funds Including Special Deposit Scheme, 1975(SDS,1975) for Non-Government Provident, Superannuation and Gratuity Funds for the Financial Year 2015-16.


It was decided by the Government to link the interest rates of State PFs (General Provident Fund and other similar funds) including Special Deposit Scheme, 1975 (SDS, 1975) for Non-Government Provident, Superannuation and Gratuity Funds for the FY 2015-16 to Public Provident Fund (PPF) rates. In pursuance of that decision, the Government has decided to fix the rates 8.7% per annum applicable to the following:-

· The General Provident Fund (Central Services).
· The Contributory Provident Fund (India).
· The All India Service Provident Fund.
· The State Railway Provident Fund.
· The General Provident Fund (Defence Services).
· The Indian Ordnance Provident Fund.
· The Indian Ordnance Factories Workmen’s Provident Fund.
· The Indian Naval Dockyard Workmen’s Provident Fund.
· The Defence Services Officers Provident Fund.
· The Armed Forces Personnel Provident Fund.

The rate of interest is applicable to the above funds w.e.f. 1st April, 2015 and until further orders.

Recently, the Government had kept the interest rates for PPF and other Small Savings Schemes intact. However, interest rates for 5 year Senior citizen Saving Scheme and Sukanya Samriddhi Account Scheme have been increased from 9.2 to 9.3% and 9.1 to 9.2% respectively, keeping in view the commitment of the Government towards the welfare of the girl child and the senior citizens.

PROPOSED NEW PAY SCALES MINIMUM (AFTER MERGER) SUBMITTED TO 7TH PAY COMMISSION – INDWF


PROPOSED NEW PAY SCALES MINIMUM (AFTER MERGER) SUBMITTED TO 7TH PAY COMMISSION – INDWF

Oral evidence submitted by National Council(JCM) Standing committee and the VII CPC on 23.03.2015, 24.03.2015 and on 31.03.2015 respectively.

The JCM(NC), JCM Constitutents including INDWF jointly prepared the memorandum on pay Structure, Pay determination, Allowances, leave, women issues, LTC, TA/DA and Retirement benefits etc., on 30.06.2014. Similarly, on behalf of INDWF, submitted matters relating to Defence Civilian Employees on service matters on 28.07.2014.


Defence Federations were invited from 30th to 31st march, 2015. INDWF met the VII CPC on 31.03.2015 in the VII CPC office, New Delhi from 1030 HRs to 1200 HRs. [Click here to view the issues discussed by the Staff side National Council Staff side Standing Committee (JCM) and by INDWF]

Proposed new pay scales after removal of existing Grade Pay Rs.1900, Rs.2400, Rs.4600 and Rs.8700 in order to reduction of pay scales from 19 to 14.

Proposed Pay Scale INDWF

PROPOSED NEW PAY SCALES MINIMUM (AFTER MERGER)

Proposed Pay Scale Minimum after Merger INDWF

Source: INDWF

DOPT Clarification regarding application of FR 49

F. No. 4/212014-Estt.(Pay-II)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
North Block, New Delhi
dated 16th April, 2015
OFFICE MEMORANDUM
Subject: Clarification regarding application of FR 49 — regarding
This Department undertook a review of FR 49 with a view to ensure that the provisions of the FR are applied in public interest and the spirit of the FR is maintained. It has been decided that the following points may be kept in view by Ministries / Departments while processing cases for giving additional charge —
(i) The provisions of FR 49 apply only to Government servants. Appointments of an employee of an autonomous body/PSU etc to another such body would be governed by the Rules of the individual’s employer;
(ii) The provisions of FR 49 are applicable to cases where the post held by the Government servant and the post to which he is appointed are under the Government.
(iii) Additional pay for holding additional charge of the posts in PSUs, autonomous bodies etc. is not permissible under FR-49.
(iv) Appointments made under FR 49 should follow the spirit of the FR to meet short term requirements only and it may be ensured that the provisions are not used to indirectly confer promotional benefits in lieu of promotion.
(v) Instructions of Ministry of Finance issued vide OM No. 7(7)/E.Coord/93 dated 3rd May 1993 read with OM No. 7(4)/E.Coord(I)/2001 dated 27th March 2001 regarding ‘economy in administrative expenditures – guidelines for abolition of posts’ may be kept in view in this regard so that approval Of Ministry of Finance for revival of post(s) is obtained wherever necessary before assigning the additional charge of posts.
(vi) While, the language of the FR 49 provides for appointment to a higher post, no occasion for appointing a Government servant to a post next above or even higher than the post next in hierarchy should arise. Such appointments may not be made without the approval of Department of Personnel and Training.
(vii) Though appointments covered under FR 49(i) are not promotion, the Government Servant so appointed gets the pay of the higher post. While it may not be necessary to go strictly by seniority in making such stop gap arrangements, as far as possible the senior most officer holding the lower post in the Department may be so appointed. The suitability of the officer for discharging the functions of the post should also be assessed. If the post requires any specialised skill/experience/training, the person most suited for the task may be appointed.
(viii) No person who is facing a disciplinary proceeding or is otherwise not suitable (for example who has an adverse entry in a recent APAR) should be given the additional charge.
(ix) The orders for appointments may be issued only after obtaining the approval of the authority competent to make appointments to the post.
2. It is requested that the above information may be brought to the notice of all concerned.
(AK. Jain)
Deputy Secretary to the Govt. of India
The Department of Posts, which has applied for a payments bank licence, has a hybrid model in mind to operate Post Bank of India. Reserve Bank Governor Raghuram Rajan yesterday had said while the banking sector is set to undergo changes in the next few years, "we are going to possibly have postal bank".

According to a source, Communications and IT Minister Ravi Shankar Prasad has approved hybrid model suggested by Ernst & Young which prepared detailed project report on Post Bank of India (PBI).

"E&Y has come out with three models but suggested preference to a hybrid model. Under which about 600 branches will be directly operated by PBI staff in post office premises and transactions in other parts of the country will be supported by India post staff," the official said.

Post Bank of India is proposed to have its own employees and IT infrastructure. The transaction handled by India Post employees will be entered in to computer server of PBI.

The Department expects revenue of over Rs 550 crore from PBI in first 5 years.

"India Post will earn from every transaction it will carry out for PBI and rents that it will get from its branches. India Post financial services like saving account, postal life insurance will continue as it is," the official said.

The Department of Posts (DoP) will soon seek Cabinet approval for Rs 240 crore for setting up Post Bank of India.

The DoP has plans to set up Post Bank of India under payments bank licence. The Reserve Bank of India has already issued licensing norms for niche banks -- payments banks and small banks.
As per RBI guidelines, payments banks would offer a limited range of products such as demand deposits and remittances. They will not be allowed to undertake lending activities and will be initially be restricted to holding a maximum balance of Rs 1 lakh per individual customer.

They will be allowed to issue ATM or debit cards as also other prepaid payment instruments, but not credit cards.

The DoP will evaluate its five year performance as payments bank and then it will take call of setting up full-fledged banking service

Rotational transfer of IP/ ASP cadre in GOA REGION


6th Central Pay Commission (2006 – 2015) – Why was it special?


6th Central Pay Commission (2006 – 2015) – Why was it special?

Six Pay Commissions were formulated by the Central Government until now. The 6th Pay Commission had some salient features that were never seen before. Let’s find out why this particular Pay Commission was so monumental.

The recommendations made by the previous five Pay Commissions were interrelated to each other. People who had studied these would know that despite the similarities, the recommendations were not exactly generous.


“Weightage” was the most-frequently used terminology in all previous pay commissions. New employees wouldn’t be aware of this. Weightage was all about calculating a certain percentage of the basic pay and adding it to the new basic pay (Basic Pay Weightage, Fitment Weightage or Fitment Benefit). This was the method prescribed by the five Pay Commissions before.

Even more pathetic was “Increment Weightage”. Particularly the 5th Pay Commission didn’t consider all the increments that the employee had received. According to the recommendations of 5th Pay Commission, it was given on the basis of one out of three increments.

As well, those were the days when promotions were rare. For years, employees were getting meager amount as annual increment. Only disappointment remained because the employees felt as if their ten years’ progress was unfairly evaluated.

Since no significant changes were made in the calculation of DA in the 5th Pay Commission, for the entire ten years, percentage of Dearness Allowance had increased by only 74%.

Until the 5th Pay Commission, House Rent Allowance was given in four categories – 5%, 7.5%, 15%, and 30% or as consolidated amount.

Lack of generosity was also obvious in areas like Tuition Fees, Transport Allowance, and Leave Travel Concession.

The 6th Central Pay Commission was special because it was radically different from its predecessors.
“Grade Pay was introduced, and, although there were MACP confusions due to the new Hierarchy system, since its pluses outnumbered its minuses, we feel that there is nothing wrong in recollecting the good points that the Commission had recommended. This article will help the next generation employees understand why the 6th Pay Commission was so unique.”
Multiplication Factor : This is considered by many as a transparent approach. [Click to read more about this]

Children’s Education Allowance : From a meager Rs.40 per month, it was raised to Rs.1000. This reflected genuine interest and concern about the future generation. [Click to read more about this]


3% Increment : The decision to calculate the annual increment at 3% of the current basic pay continues to be applauded even now. [Click to read more about this]

Transport Allowance : Although Convenience Allowance was clubbed with this, it was a good decision to have made the revision of transport allowance dependent on the dearness allowance.

Leave Travel Concession : Which was until then, given only for Class II travel, was elevated to AC- Tier III, and Tier II.

Child Care Leave : It was a blessing for female employees.

Military Service Pay : First time recommendation for the Armed Forces Personnel by 6th Pay Commission.


DoP to seek Cabinet nod for 240 cr to set up Post Bank

The Department of Posts (DoP) will soon seek Cabinet approval for Rs 240 crore for setting up Post Bank of India.

The DoP has plans to set up Post Bank of India under payments bank licence. The Reserve Bank of India has already issued licensing norms for niche banks -- payments banks and small banks.

The DoP, which has applied for a payments bank licence, has a hybrid model in mind to operate Post Bank of India. Reserve Bank Governor Raghuram Rajan yesterday had said while the banking sector is set to undergo changes in the next few years, "we are going to possibly have postal bank".

"The Department is in the process of seeking approval for about Rs 240 crore from Expenditure Finance Committee which will then need nod from Cabinet," an official source told PTI.

As per RBI guidelines, payments banks would offer a limited range of products such as demand deposits and remittances. They will not be allowed to undertake lending activities and will be initially be restricted to holding a maximum balance of Rs 1 lakh per individual customer.

They will be allowed to issue ATM or debit cards as also other prepaid payment instruments, but not credit cards.

According to a source, Communications and IT Minister Ravi Shankar Prasad has approved hybrid model suggested by Ernst & Young which prepared detailed project report on Post Bank of India (PBI).

"E&Y has come out with three models but suggested preference to a hybrid model. Under which about 600 branches will directly operated by PBI staff in post office premises and transactions in other parts of the country will be supported by India post staff," the official said.

Post Bank of India is proposed to have its own employees and IT infrastructure. The transaction handled by India Post , employees will be entered in to computer server of PBI.

The Department expects revenue of over Rs 550 crore from PBI in first 5 years.

"India Post will earn from every transaction it will carry out for PBI and rents that it will get from its branches. India Post financial services like saving account, postal life insurance will continue as it is," the official said.

The DoP will evaluate its five year performance as payments bank and then it will take call of setting up full fledged banking service.