Monday, November 8, 2010

HAPPY NEW YEAR

MAY THIS DIWALI LIGHT UP NEW DREAMS, FRESH HOPES, UNDISCOVERED AVENUES, DIFFERENT PERSPECTIVES, EVERYTHING BRIGHT AND BEAUTIFUL FULFILLING  YOUR  DAYS WITH PLEASANT SURPRISES AND MOMENTS. WE WISH YOU AND YOUR FAMILY A VERY HAPPY DIWALI AND PROSPEROUS NEW YEAR.

ALL INDIA CONFERENCE INVITATION

ALL INDIA CONFERENCE - ADVERTISEMENT OF SOUVENIR

Wednesday, October 20, 2010

DELAY AND IRREGULARITIES IN IMPLEMENTATION OF MACP SCHEME – CLARIFICATION REGARDING

The CHQ has taken up the matter with Secretary (Posts) regarding undue delay and irregularities observed in implement action of Modified Assured Career Progression Scheme (MACP). It is being denied to eligible officials in some circles and sought the intervention of the Directorate DOP caused necessary classifications to sort out the problems prevailing in the Circles. The orders of DOP is also exhibited in Website.


Government of India
Ministry of Communication & IT
Department of Posts
(Pay Commission Cell)

Dak Bhawan, Sansad Marg,
New Delhi - 110116

No. 4-7/(MACPS)/2009-PCC                                                                                   Dated: 18th Oct, 2010

All Chief Postmasters General,
All Postmasters General
General Managers (Finance)
All Directors of Accounts Postal

Sub:     DELAY AND IRREGULARITIES IN IMPLEMENTATION OF MODIFIED ASSURED CAREER PROGRESSION SCHEME – CLARIFICATIONS regarding.

Sir/Madam,

I am directed to refer to this Directorate's OM dated 18 Sep, 2009 communicating the detailed guidelines for implementation of Modified Assured Career Progression Scheme (MACPS) and several other clarification issued on this subject.

2. The General Secretary, All India Postal Employees Union Group 'C' has represented to the Secretary (Posts) alleging that the Modified Assured Career Progression Scheme (MACPS) is being denied to eligible official in some Circles and sought the intervention of the Directorate in clarifying the position. The contentions of the General Secretary have been examined and the following clarifications are provided for guidance and strict observance.

Sl. No.
Point on which clarification sought
Status Position
1
Eligibility of MACPS to a direct recruited Postal Assistant conferred with TBOP –

It has been represented that in some Circles the directly recruited Postal Assistants who were accorded financial upgradation under one time bound promotion scheme on completion of 16 years of satisfactory service are not being given the 2nd MACPS on the ground that the officials have not completed 10 years of service TBOP Scale/Grade with grade pay of Rs.2800.
Attention is drawn to Para No. 28 of Annexure-I to this office OM dated 18-09-2009. It is stated that a directly recruited Postal Assistant who got one financial upgradation under TBOP Scheme after rendering 16 years of service before 01.09.2008, will become eligible to 2nd MACP on completion of 20 years of continuous service from date of entry in Government service or 10 years service in TBOP grade pay or scale or combination of both, whichever is earlier, However, financial upgradation under MACPS cannot be conferred from a date prior to 01.09.2008 and such 2nd financial upgradation for the above referred category of officials has to be given from 01.09.2008. They will also become eligible for 3rd MACP on completion of 30 years of service or after rendering 10 years in 2nd MACP, whichever is earlier.
2
Eligibility of MACP to a directly recruited Postal Assistant having qualified in PO & RMS Accounts Examination and opted initially for defunct scale &  later opted out of it & who have got financial upgradations under TBOP and BCR subsequently –

The staff side has alleged that Postal Assistants who have qualified in PO & RMS examination who initially opted for defunct scale and later switched over to normal line and accorded financial upgradations under TBOP/BCR schemes are denied 3rd MACP construing that PO & RMS Accountants is 1st MACP and TBOP/BCR are off set against 2nd and 3rd MACP.
PO & RMS Accountants examination is a qualifying one and the Postal Assistants who have passed the examination are posted as Accountants with some special allowance. They will be continued in the cadre of Postal Assistants in the common gradation list.

The PO & RMS Accountants who initially opted for defunct pay scale of Rs.380-620 and later switched over to normal line of promotion in PA cadre and given financial upgradations under TBOP/BCR Schemes will become eligible for 3rd MACP under MACPS provided that they have not earned any other regular promotion and subject to rendering of 30 years of continuous service from the date of entry in the PA grade or 10 years continuous service in the BCR grade, whichever is earlier. Denial of 3rd MACP on the said ground is not in order.
3
Eligibility of MACP to a promoted official to PA Cadre and having completed 10 years of service in PA cadre –

It was stated by staff representatives that in some Circles, the officials who were promoted from the lower cadres to Postal Assistants and on completion of 10 years in the said Postal Assistant cadre are not considered for 2nd MACP on the plea that they have not completed 20 years of service from the date of entry in clerical cadre.
The attention of the Circle is drawn to Para No. 28 (A) (1) in the Annexure-I. In case of a lower grade official promoted to PA cadre, having got one promotion to PA cadre before completion of 10 years of continuous service, it will be off set against 1st MACP and on rendering 10 years continuing service in the clerical grade/scale or on completion of 20 years service from the date of entry would become eligible for 2nd MACP, whichever date is earlier. However, financial upgradation under MACPS cannot be conferred from a date prior to 01.09.2008 as the scheme became operational from this date only.
4
No. 4-Eligibility of MACP on completion of 30 years of service from date of entry as on 01.09.2008, declining regular promotion to LSG during 2009 and 2010 –

The General Secretary intimated that certain officials who become eligible for 3rd MACP on 01.09.2008 are denied the same on the ground that they have declined the regular promotion to norm based LSG in 2009 and 2010.
The attention is drawn to para 25 of Annexure I to order on MACPS issued on 18.09.2009 providing that "if a regular promotion has been offered but was refused by the employee before becoming entitled to a financial upgradation, no financial upgradation shall be allowed as such an employee has not stagnated due to lack of opportunities. If, however, financial upgradation has been allowed due to stagnation and the employees subsequently refuse the promotion, it shall not be a ground for withdrawal of the financial upgadation. He shall, however, not be eligible to be considered for further financial upgradation till he agrees to be considered for promotion and the second and the next financial upgradation shall also be deferred to the extent of period of debarment due to the refusal." Therefore, the issue raised is already covered under Para 25 and in such cases where due date of financial upgradation precedes the refusal for regular promotion, financial upgradation under MACPS shall be allowed.
5
Eligibility of MACP due on 01.09.2008 for officials due to currency of the penalty of recovery in consequence of disciplinary proceedings or disciplinary proceeding contemplated.
The staff side represented that some Circle have not considered the cases of officials for MACP on the date of introduction on the pretext that the punishment of recovery from their pay is current or disciplinary proceedings contemplated at the time of screening of the officials by the Committees which were constituted for considering financial upgradation under MACPS
Para 18 of Annexure-I to OM dated 18.09.2009 provides that – "In the matter of disciplinary/penalty proceedings, grant of benefit under the MACPS shall be subject to rules governing normal promotion. Such cases shall, therefore, be regulated under the provisions of the CCS (CCA) Rules, 1965 and instructions issued there under." Attention of the Circle is drawn to Department of Personnel and Training Om No. 22011/2/78-Estt. (A) dated 16.02.1979 communicated in DGP&T letter no.35-1/79-SPB-II dated 07.05.79. According to these orders, the penalty of censure or recovery of pecuniary loss are not a bar for penalty for promotion if the findings of the DPC are in favour of the employee.

Similarly, the officials who were facing disciplinary action as one the date of actual due date of their upgradation can only be not considered.

3. The Circles are requested for bringing the above position to the notice of all Divisional Heads and concerned authorities for scrupulous observance and to avoid any grievance to the officials.

4. The limits for holding of Screening Committee as provided in Para 11 of this Directorate OM of even number dated 18.09.2009 may be strictly adhered to on concluding action of Scrutiny Committee ordered under letter of even number dated 01.09.2010.

5. This issues with the approval of competent Authority.


Sd/-
(Surender Kumar)
Assistant Director General (GDS/PCC)

The Reserve Bank of India has given permission to the Department of Posts (DoP) to launch its prepaid debit card, in partnership with Master Card

Wednesday, October 20, 2010

Reserve Bank of India has given permission to the Department of Posts (DoP) to launch its prepaid debit card, in partnership with Master Card, which will allow customers to purchase products from all major retail outlets across the country.
.The prepaid debit card by India Post would have a minimum value of Rs 1,000 and a maximum of Rs 50,000, a senior official from the department told Business Standard. Subsequently, the cards will be topped up with the required value.
.The customers would also be able to withdraw money from ATMs using the new card from DoP. It could also be used for making online transactions, for mobile commerce and to facilitate electronic money transfer.
"The department has already received all the requisite approvals from RBI for the launch of the card and we expect to commercially announce it within a few months," the official said. DoP might also rope in a bank as partner in the venture, the official added, refusing to divulge further details.
The nature of the card would be in line with debit card offered by different banks. The software for the solution would be offered by one or more banks, while the required infrastructure and staff would be provided by the postal department.
.According to the request for proposal issued by the department earlier this year, "the card (magnetic stripe-based) could be operated at merchant establishments or ATMs, where Master Card is acceptable, and in various post offices. Up to four add-on cards are proposed to be issued to one customer, along with the primary card."
The debit card would be issued to customers by major post offices, after a payment of activation fees and the amount to be loaded on to the card.
The official said such cards could also be used by organisations for giving allowances and other benefits to their employees.
Business Standard
New Delhi September 17, 2010

Monday, October 18, 2010

IndiaPost gets IRDA nod to sell insurance policies

India’s largest distribution network with 1.55 lakh offices has been thrown open to the insurance industry with the industry regulator allowing IndiaPost to sell policies of multiple insurance companies.This opens a new distribution channel for insurers who have been desperately trying to poach bank distributors from rivals to increase their reach.

Insurers now expect a battle for prime circles, given that the Insurance Regulatory and Development Authority (IRDA) has limited the number of companies that each postal circle can tie up with.
The revised guidelines allow each of the 22 circles of Indiapost to act as a corporate agent of two non-life insurers, two life insurance companies, one agricultural insurance company and one stand alone health insurance company. The regulator has however barred IndiaPost from selling customer data to insurance companies under some referral arrangement.

In its revised guidelines released last week, IRDA said, “Each circle of India post should be treated as a separate unit in order to grant independent corporate agent licence with various insurers.

However the Head of ‘Circle’ may approach IRDA for prior approval of further division in the ‘Circle’ as separate units, in the case of metropolitan areas, to obtain licence to act as corporate agent, in view of the large population under the circle,” said IRDA in its circular.

IRDA has said that the head of the circle would be deemed to be the corporate insurance executive (CIE) — the key executive responsible for all insurance agency dealings.

“Also, all the permanent employees of the India Post having an educational qualification of 10+2 or equivalent shall be deemed to be complying with the relevant provisions regarding requirements of minimum educational qualification, training and examinations prescribed for ‘Specified Persons’.

In this regard, India Post shall take necessary steps to impart required training to its permanent employees to be designated as ‘Specified Persons’ within a period of one year from commencement of corporate agency, IRDA said.
Corporate agency guidelines prevent banks from selling products of two competing firms.

Given the limited number of banks, insurance companies have been struggling to find low-cost institutional distributors with a pan-India reach.

The dispensation will also give the department of posts a new revenue stream. The postal department which had ambitions of becoming major distributors of financial products stopped selling mutual funds of most companies after a ban on front-loads resulted in commissions disappearing. (Economic Times dated 18-10-2010)

Circular No. 3

NATIONAL FEDERATION OF POSTAL EMPLOYEES
1st Floor, North Avenue Post Office Building, New Delhi - 110001

Circular No. 3                                                                                                                        Dated – 16.10.2010

To,

All General Secretaries, CHQ Office Bearers.
Circle/Divisional/Branch Secretaries of
All affiliated union.

Dear Comrades,

The Federal Secretariat of NFPE met at New Delhi on 14.10.2010. Com. Ishwar Singh Dabas, Deputy Secretary General & GS P-4 presided. Com. M. Krishnan (SG) Com. R. N. Parashar (Asst. Secretary General) Com. K. V. Sridharan (General Secretary P-3) Com. Giriraj Singh (General Secretary R-3) Com. P. Suresh (General Secretary R-4), Com. V. P. Chauhan (AIPAEA Vice President) were present. Com. S. S. Mahadevaiaha, (General Secretary, AIPEDEU,) also attended the meeting.

The following agenda items were discussed and decision taken.

1.      Review of the 7th September 2010 strike:
Federal Secretariat came to the conclusion that in the coming days, serious effort shall be made to further improve the participation of Postal & RMS employees in the common struggle of the working class against anti-people, anti-labour policies of the Central Government. An indepth review of the 7th September strike will be made in the next Federal Executive meeting.

2.      Verification of Membership and Recognition of Unions:
The Federal Secretariat expressed satisfaction over the result of the membership verification. All NFPE affiliates have got recognition with an impressive percentage of membership. The Secretariat congratulated all the employees for endorsing their faith in NFPE. The fact that the All India Postal SBCO Employees Association and All India Postal Civil Wing Employees Association which have been formed under the guidance and leadership of NFPE, have also got recognition this time and made our victory more proud. The meeting viewed with grave concern over the delay in grant of recognition to Administrative Employees Union and the GDS Union. The Federal Secretariat urged the authorities to declare the result without and further delay.

3.      1st All India Conference of AIPSBCOEA & AIPCWEA:
The Federal Secretariat decided to extend all help for conducting the 1st All India Conference of the newly recognized AIPSBCOEA and AIPCWEA at Hyderabad (Andhra Pradesh). The AIC of SBCO Employees Association will be held on 11.12.2010 (KG Bose Day) and the AIC of Civil Wing Employees Association will be held on 12.12.2010. Delegate Fee will be decided later. Detailed circular will be issued later.

4.      Federal Executive Meeting of NFPE:
The Federal Secretariat decided to convene the Federal Executive Meeting of NFPE at Hyderabad on 10.12.2010.

5.      2010 July 13th deferred strike
The Federal Secretariat reviewed the progress in settlement of the demands. While appreciating the prompt action taken by the Department in settling certain major items such as filling up of posts, constitution of cadre restructuring committee, convening of the JCM Departmental Council etc, the meeting expressed concern over the delay in implementing the assurances given in some of the items. The meeting decided to vigorously pursue the cases with the Directorate for result-oriented action.

6.      JCM Departmental Council
The Federal Secretariat decided that the JCM staffside shall request the Secretary, Department of Posts to convene the next meeting of the JCM Departmental council at an early date, not later than December 2010 to discuss the remaining items of the Agenda of the last meeting and also new items to be given by the staff side.

7.      Cadre Restructuring
Federal Secretariat decided to explore the possibility of submitting a joint proposal by the staff side to the cadre restructuring committee. A joint meeting of the General Secretaries and Secretary Generals of NFPE and FNPO will be held on 25.10.2010 to discuss the issues relating to cadre restructuring and to arrive at a consensus.

8.      Committee on Postman Related issues
The Federal Secretariat is of the considered opinion that in addition to the General Secretaries of P4 unions (NFPE & FNPO) the Secretary Generals of both the Federations shall also to be included as staff side representatives of the committee on postman related issues. The General Secretaries of P4 NFPE & FNPO may write to the Department in this regard.

9.      GDS Issues:
It is decided that NFPE and GDS union shall move together for settling the remaining issues of GDS.

10.  Presentation on Technological Developments in the Department of Posts.
All available General Secretaries/Secretary General and the Circle Secretaries P-3 unions will be attending the presentation on Technological Developments in Department of Posts at Postal Staff College, Ghaziabad on 23.10.2010 in the presence of Secretary, Department of Posts. Our view points will be communicated to the Department after knowing the full details. Directorate has now postponed the meeting. Next date will be intimated later.

11.  Revision of wages of Casual Labourers and Part-time contingent staff:
The Federal Secretariat viewed with grave concern about the abnormal delay in revising the wages of the casual labourers and part-time contingent employees of the Postal department. Whatever may be the reason, there is no justification for this much delay. The Staff Selection commission, which is under the Department of Personnel & Training has issued orders for payment of pro-rate wages to the casual labourers (other than temporary status casual labourers) as per the minimum of the Group D scale of 6th CPC orders with effect from 1.1.2006. The Federal Secretariat is decided to discuss the issue with Secretary, Department of posts. If the issue still remains unsettled it is decided to organize agitational programmes.

12.  Functioning of Regional JCM:
Cases of Tamilnadu and Delhi Circles were discussed.
(a)   Tamilnadu Circle: It is decided that the General Secretary, P-4 Union, may give a written directive to the Tamilnadu P-4 circle union to cooperate with other Circle unions on the issue of election of Leader and Secretary staff side RJCM and also to form the NFPE Circle coordinating committee in Tamilnadu Circle.
(b)   Delhi Circle: It is decided to convene a joint meeting of all the Circle Secretaries (NFPE) of Delhi circle and also General Secretaries (NFPE) on 26.10.2010 at NFPE office for arriving at an agreed formula for electing the Leader and Secretary Staff side.
13.  All India Study Camp:
It is decided that the All India Study Camp of NFPE will be held in the month of February 2011 in Kerala at Thekkady (near Munnar High Range, Idukki Division) which is also one of the famous tourist destination. The camp will be held on 13.02.2011 & 14.02.2011. The Camp is mainly intended to impart training to the leaders for better and efficient functioning at organizational level. All Circle Secretaries of the unions affiliated to NFPE and General Secretaries/Presidents (CHQ) and All India office bearers shall attend the All India Study camp without fail. General Secretary, AIPEDEU, has been requested to join the camp with Circle Secretaries of GDS Union.

14.  Foreign Delegation to Royal Mail, Landon
The delegation will be leaving India on 17.10.2010 and returning on 24.10.2010. Com. M. Krishnan (Secretary General) Com. K. V. Sridharan (General Secretary P3) Com. Ishwar Singh Dabas (General Secretary P4) Com. Giriraj Singh (General Secretary R3) and Com. P. Suresh (General Secretary R4) are the staff side members of NFPE in the ten member delegation. The delegation is visiting London to attend the training programme of Royal Mails, the National Postal Service of United Kingdom.

15.  Remittance of Quota and other dues to NFPE
All Circle/Divisional/Branch Secretaries are requested to remit the Quota and other dues of NFPE to the following address.

Financial Secretary
NFPE
1st Floor, North Avenue Post office
New Delhi – 110001

With greetings,

Fraternally yours,


(M. Krishnan)
Secretary General

Technology Meeting on 23.10.2010 Deferred


Government of India
Ministry of Communication & IT
Department of Posts
(SR Section)

Dak Bhawan, Sansad Marg,
New Delhi, Dated the 15th October, 2010

No. 1/5/2010-SR

To,

All Heads of Postal Circles

Subject: Technological developments in Department of Posts – Presentation to the Staff Side on 23.10.2010 in Postal Staff College of India, Ghaziabad – Cancellation regarding.

Sir,

            I am directed to refer to the Department's letter of even number dated 22.09.2010 on the above mentioned subject and to inform that the Presentation scheduled for 23.10.2010 has now been cancelled for the present. The revised date of Presentation will be communicated in due course.

Yours faithfully,
 Sd/-
(Subhash Chander)
Director (SR & Legal)

INTRODUCTION OF A NEW SERVICE DISCHARGE BENEFIT SCHEME(SDBS)FOR THE GRAMIN DAK SEVAKS WORKING IN THE DEPARTMENT OF POSTS



D.G. Posts No. 6-11/2009-PE-II dated 30.09.2010.

            I am directed to refer to this office letter of even no. dated 01.09.2010, on the above mentioned subject.

2.         A specific time frame on course of action to be taken was indicated in the above said letter for action by the Divisional Heads and Director of Accounts Postal. The time frame set was:

Sl.No.
Course of action
Time-frame by which action to be completed.
1
Collection of Option from Gramin Dak Sevaks & Obtaining applications from willing Gramin Dak Sevaks to join Service Discharge Benefit Scheme (SDBs)
30.09.2010
2
Dispatch of applications obtained from Gramin Dak sevaks to the concerned facilitation centres of Central Record Keeping Agency (CRA) by Divisional Offices.
10.10.2010
3
Dispatch of applications in from NL-CC by Divisional heads to concerned DA(P)
15.09.2010
4
Dispatch of completed and authorized NL-CC applications and NL-AO applications to Directorate by Director of Accounts Postal.
25.09.2010

3.         The Directorate has not received response from any Circle so far. The acknowledgement for the communication dated 01.09.2010 was received from Gujarat, MP, Orissa, and UP Circle only.

4.         The applications of Divisional  Heads for registration as Collection Centres are supposed to be sent to concerned DAPs for counter signature and onwards submission to Directorate by 25.09.2010.No DAP in the country has so far sent the applications for registration as Collection Centres and Accounts Offices. This is a time bound issue on which the Department has given an assurance to Parliamentary Standing Committee on Ministry of Information and Technology.

5.         The Circles Heads are requested to expedite submission of the applications of concerned Divisional Heads for registration as Collection Centres and also that concerned DAPs for registration as Accounts Offices to reach Directorate immediately for submission and Development Authority (PFRDA).

6.         Action is required to be for obtaining the options and applications of Gramin Dak Sevaks and their submission to concerned Central Record Keeping Agency (CRA) facilitation centre for issue of digitized smart cards. The applications have to be forwarded to concerned Central Record Keeping Agency (CRA) by 10.10.2010 along with the details of GDS opting for the scheme in the prescribed proforma.

7.         The Circle Heads are requested to send compliance on para 5 and 6 immediately for submitting the position to Secretary (Posts).

Sdxxx
(A.K. Sharma)
Deputy Director General(Estt.)

Thursday, October 14, 2010

Recent orders on GDS appointment

Modified instructions on Recruitment of GDS through Employment Exchange - Clarification of term "Effective No. of Candidates
 
Attention of all concerned is invited to Para 3 of this Dte Order No. 19-4 / 97-ED & Trg Dt 19.08.98 which provided that "in case the notification and public advertisement so issued fail to elicit any response within the stipulated date or if the effective number of candidates applied for the post is less than 3, the vacancies will be re-notified to the Employment Exchange & fresh advertisement issued calling for nominations etc within 15 days"2. The term "effective No. of candidates / applications" has undergone judicial scrutiny by CAT, Hyderabad in OA No. 516 / 2009 in the matter of Shri.Chennuri Raju vs Union of India & relying on judgment of High Court of Madras in WP No. 22500 & 20422 / 1999 in similar case CAT, Hyderabad has held in its judgment on 15.06.10 that "three effective applications mean three applications should be received and even if one of the candidates amongst the three applicants is eligible, the selection should be finalized"3. The issue has been considered in this Dte in the light of the aforesaid judgment and I am directed to convey that term "effective No. of Candidates" finding a mention in the order of this Dte ibid may be interpreted to mean that three applications from the different candidates should be received and even if one of the candidates amongst the three applicants is found eligible, the selection should be finalized in conformity with the interpretation as referred to in
Para 2 above.DG (P) Letter No: 19-27 / 2010-GDS Dt. 07.10.10.

Tuesday, October 12, 2010

INTEREST BEARING ADVANCE / SIXTH CENTRAL PAY COMMISSION RECOMMENDATION ON HOUSE BUILDING ADVANCE-ENHANCEMENT IN PAST – REGARDING

D.G. Posts F. No. 12-03/2010-PAP dated 30th September, 2010.
The undersigned is directed to forward herewith a copy of the Ministry of Urban Development (Housing-III Section), New Delhi, OM No. I-17011/2/\(1)/2009-H.III dated 14th July,2010 on the subject cited above, for kind information and further necessary action.
Sdxxx
(K. Ramesawara Rao)
Asstt. Director General (Estt.)

Copy  of OM No. I-17011/2/\(1)/2009-H.III dated 14th July,2010 from Ministry of Urban Development (Housing-III Section) , New Delhi.

Sub:   Interest bearing advance /Sixth Central Pay Commission recommendation on          House Building Advance-enhancement in past – regarding

The undersigned is directed to invite attention to this Ministry's O.M. No. 1-17011/11(3\4)/2008-H.III dated 27th November, 2008 on the above subject and to say that it has been decided in consultations with Ministry of Finance to make the afore-said orders applicable with effect from 1st January, 2006. Accordingly, an enhancement of House Building Advance, if applied for, may be granted for an amount equivalent to the difference between the previously sanctioned amount and the new amount determined on the basis of pay in the pay band, in past case, where HBA was sanctioned on or after 1-1-2006 but before 27-11-2008 subject to complying following conditions:

(a)       The Government servant should not have drawn the entire amount of HBA sanctioned under earlier orders and /or where construction is not completed /full cost towards acquisition of house /flat is yet to be paid.

(b)       There will be no deviation from the approved plan of construction on the basis of which the original sanction of House Building Advance was accorded. The revised cost of the original plan can, however, be considered for determining the additional amount, subject to the prescribed maximum limits.

(c)        Supplementary Mortgage Deed, Personal Bond and Sureties will be drawn and executed at the expense of the loanee.

(d)       The actual entitlement will be restricted to the repaying capacity computed on the basis of the formula laid down  in this Ministry's O.M. No. 1-17015/16/92-H.III. dated 17.10.2000. It should be ensured that the entire amount of advance with interest is recovered before retirement on the Government servant.
(e)       Rate of Interest: The rate of interest chargeable in such cases would be as per the slab applicable to the total sanctioned amount i.e. amount already sanctioned on or after 1-1-2006 but before 27-11-2008 plus the enhanced sanction. However, the new rate of interest would be chargeable only on collective amount that would remain outstanding on grant of enhancement of HBA i.e., the unpaid portion of previously sanction HBA plus the enhancement so granted. Thus, the amount of HBA that has already been re-paid on old rates will not attract the fresh interest charges.

2.         However, the existing limit of maximum admissible amount of Rs. 7.50 lakh for the purpose of construction /purchase of new house /flat and Rs. 1.80 lakh would remain unchanged. In other words, the sum total of previously sanctioned HBA and the enhancement granted under these orders cannot exceed the aforesaid limits. In nay case, not more than one enhancement is admissible to Govt. employees.

3.         The applications for enhancement HBA should be submitted within six months from the date of issue of this order.

4.         Ministries/Departments whose branch offices are situated in the far flung areas like in case of Ministry of Defence, etc., are advised to give wider publicity to these orders through modern communication means like facsimile, e-mail, web-site, etc. so that there is no occasion for any representationfor extending the time limit of six months on the grounds of receiving these orders late.

Sdxxx
(V.K. Gupta)
Deputy Financial Adviser

Sunday, October 10, 2010

DEPT OF POSTS WANTS IRDA TO REGULATE ITS INSURANCE PLANS

In a first significant step towards consolidating similar financial products under one regulator, the department of posts (DoP) is exploring the option of handing over the regulation of its insurance products to the sector regulator, Insurance Regulatory and Development Authority (IRDA), a move prompted by the ugly spat between the insurance regulator and the stock market watchdog, Securities and Exchange Board Of India (SEBI), over the regulation of unit-linked insurance products (ULIPs).

The DoP has sought the law ministry's opinion on whether the insurance schemes run by it could be brought under the regulatory ambit of the IRDA. It has also proposed to create a corporate entity to handle the schemes.

The decision to refer the matter to the law ministry was taken after the IRDA expressed its inability to regulate financial activities of the government (the DoP), which controls the insurance business of India Post, a government official told ET.

The finance ministry has favoured setting up of a corporate-like identity to handle India Post's insurance business that can be regulated under IRDA norms, said the official, requesting anonymity. While the IRDA is not opposed to the idea, it wants greater clarity on the matter as it will require changes to the legal framework that govern the insurance policies of the postal department.

The opinion of the law ministry could pave the way for bringing the insurance business of the postal department under the IRDA's jurisdiction. The department, which sells policies under the postal life insurance and rural postal life insurance schemes, acts within the framework of the Insurance Act. The IRDA has also pointed out that with the premium calculations of the postal department not on an actuarial basis, the postal life insurance schemes could be notching up serious deficits.

The postal department feels that an IRDA-regulated framework will allow it to make the scheme more flexible. The DoP, which acts as an agent of the finance ministry for its insurance schemes, lacks autonomy required to introduce new schemes or even providing attractive discounts to lure customers.

"The department is required to seek direction from the finance ministry for all policy matters like extension of scope to cover other clients and introduction of new products," said an official with the ministry of telecommunications and IT.

Even as the debate on regulatory control of postal life insurance goes on, the department has also requested for greater autonomy to its insurance schemes as it looks to expand its financial services business. "Corporatisation of the life insurance business will enable the postal department to compete with private insurance players on a level playing field," said the postal department official.

Private players have welcomed the move. "The move will help bring consistency in norms and activity pertaining to life insurance business," said Kapil Mehta, MD & CEO of DLF Pramerica Life Insurance Company of India. He added that the proposal, when implemented, will provide the postal department a level playing field as regards right products and schemes into the rural segment, which has been the primary focus for private players as well.

Courtesy: - Economics Times, Dated – 07.10.2010