Clarifications sought by Chairman & Members of 7 th CPC during & after presentation by IRTSA
Inter-action by the Chairman, Secretary & the Members of 7th CPC with IRTSA and clarification placed by IRTSA delegates during the Presentation.
1. Ques. (by Chairman 7th CPC) You said that Senior Technicians are taking instructions from JEs; while the Chief OS (Office Superintendent) took instructions from SSE and you also told that it is Office of Senior Section Engineer which controls all activities and all of them working within that – It appears that there is clear command line available, How it interferes in your Grade Pay?
Ans. i. Principle recommended by 6th CPC, which was also accepted by Govt, that, the senior post should be given Higher Grade Pay need to be followed duly considering duties, responsibilities, accountabilities, etc. but the same is being violated by placing the JEs in the same Grade Pay of Rs.4200 as that of Senior Technician whom they supervise and by placing SSE (Senior Section Engineers) in same Grade Pay of Rs.4600 as that of Chief OS whom the SSE supervise. This is against the settled law that an equal cannot be over an equal.
ii. 5th CPC recommendations & Supreme Court Judgement supports this argument.
iii. Take an example: A senior technician welder working in Bogie Frame manufacturing section is responsible to the extent of welding done by him, where as a Technical Supervisor is responsible for the quality & quantity of output of not only of that welder but for entire section which may contain 20 to 30 Technicians besides others.
iv. More than that man, material, machine, other infrastructure etc, are controlled by Technical Supervisors, which possess higher responsibility & accountability than other posts.
v. Similar is the case of certification of train, P.Way, Bridge, Power Distribution, Locos, etc.
vi. Categories like Ch.OS don’t have direct responsibility on performance & safety of Railways, whereas JE/SSE and their counterparts (CMT, Store) in all Technical Depts. bear direct responsibility in core activities of Railways.
2. Ques. Is all 4 tier of Technicians work under your category in all areas?
Ans. Yes. In all areas 4 tier of Technicians, along with one Group ‘D’ category besides clerk, material / stores clerk, OS, Ch.OS work under our category.
3. Ques. Who writes ACRs for Ch.OS who are working in office of SSE?
Ans. Respective AMWs/AEs/AEEs etc.
4. Ques. Why can’t SSE write ACRs for Ch.OS who are working in their office?
Ans. SSEs who are in the same GP of Rs.4600 cannot write the ACRs for Ch.OS.
5. Ques. Who writes ACRs of Senior Technicians who work under JEs?
Ans. Senior Technicians’ ACR are written by SSEs
6. Ques. What would be the reason for non application of common multiplication factor of 3.25 to SSE (S-13) scale by 5th CPC?
Ans. i. 5th CPC had applied common multiplication factor of 3.25 to all scales except to SSE (S-13) scale.
ii. This had been done merely to accommodate a new scale in Gazd scale (Rs.7500-12000) above S-13.
iii. SSE scale had been kept Rs.50 below than Rs.7500, ie.Rs.7450.
7. Ques. How the disadvantage of non-application 3.25 multiplication factor carried through to 6th CPC?
Ans. i. Initially 5th CPC recommended Rs.7000-11500 to SSE compressing it to accommodate the newly introduced Gazetted scale.
ii. If 3.25 multiplication factor had been followed by 5th CPC, the scale would have been placed in 8000-12000 by the 5th CPC and correspondingly Rs.5400 GP in 6th CPC.
iii. After the implementation of 5th CPC recommendations, based on demand from staff side when Govt. decided to modify the scale of SSE (S-13) instead of placing it in scale 8000-12000, it had been decided to modify minimum of the scale from Rs.7000 to Rs.7450 to keep it below newly created scale of Rs.7500-12000.
iv. Since corresponding increase of Rs.450 had not been done for maximum of scale, Span of the scale has been reduced to 18 years which was 20 years for all other scales.
v. The principle of 6th CPC to calculate the Grade Pay as 40% of maximum of the fifth pay commission scales put SSE scale in further disadvantageous position since maximum of scale was low because of 18 years span & non application of 3.25 multiplication factor.
8. Ques. You said that there were proposals sent to Finance Ministry from Railway Ministry to upgrade the Grade Pay of SSE from Rs.4600 to Rs.4800 and that have been returned back without throwing proper light into it, can you produce copy of the proposals?
The proposals and communications between both the Ministries were very well available with Railway Board. (Later Secretary Pay Commission confirmed availability of Railway Board proposals sent to Fin. Ministry) (Copy of it is also attached herewith as Annexure – 14/2)
9. Ques. Is there any link available between the cadre of Group ‘C’ and ‘B’?
Ans. No. Promotional avenue from Technical Supervisors in Group ‘C’ to Group ‘B’ is restricted to the vacancies arising from 4200 Group ‘B’ posts, which may be around 0.5% only.
10. Ques. As you said, Previous Pay Commissions recommended Group ‘B’ status to your scale DoPT also given their orders, it is only Railway Ministry not followed the classification, is it not Railways to take decision?
Ans. i. It is true that Railways have not implemented the classification of posts recommended by Pay Commissions & DoPT orders.
ii. We bring to your notice, submission made by DoPT before 5th CPC that even though there were some exemptions in following the classification rules, but the effort was to ensure that posts carrying similar functions were given the same classification.
iii. Similarly placed posts in departments like CPWD, Ordinance Factory, MES, Department of Telecom etc, are all classified as Group ‘B’ Gazetted.
v. State Governments which are following central pay commission pattern have also followed DoPT orders in classification of posts.
v. Railway Board also agreed on the need to increase the managerial posts (from the senior supervisor) on functional justification, but didn’t implement.
vi. Hon’ble 7th CPC is requested to give specific instruction for Railways not to deviate from classification rules recommended for all Government Departments.
11. Ques. What are all the reasons for lack of promotion to your category?
Ans. i. Recruitment happens in the apex scale of Group ‘C’ in the Grade Pay of Rs.4600 with Graduate in Engineering qualification and Railways is the only dept which recruit Engineering Graduates in Group ‘C’.
ii. Available Group ‘B’ posts are very meagre to the extent of 4200.
iii. For example in Mechanical department of Integral Coach Factory sanctioned cadre strength of Group ‘B’ is only 16. Cadre strength of Technical Supervisors in Mechanical Department (JE & SSE) is 1200. There are roughly 60 Engineering Graduate entrants available many of them completed 20 years of service. There is not enough opportunity available because of meagre Group ‘B’.
iv. Confining Cadre Restructure within each Group C, B & A was the main cause of stagnation in Group C.
v. Combined cadre structure for Group ‘A’, ‘B’ & ‘C’ is not available in Railways.
vi. Apex scale of SSE never received the benefit of Cadre Restructuring.
vii. Upgradation from Group ‘D’ to Group ‘C’ and from Group ‘B’ to Group ‘A’ is being done in Railways, but no upgradation done from Group ‘C’ to Group ‘B’.
viii. Ratio of Group A& B Gazetted officers vis-à-vis Group C are the lowest on the Railways as compared to all other Departments.
ix. During previous 8 years number of Group-B employees in Central Govt Departments have increased by 36% even though employee strength reduced by 25%, But Railways never increased Group ‘B’ posts.
x. Gazetted posts were not increased in tune with increase of Railways performance including financial performance. Railways outlay was increased from Rs.60,600 crores during 10th plan to Rs.5.5 lakh crore during 12th plan Railways. Many of increased activities / work load are being managed by outsourcing, since there is negative growth in staff strength.
Source: http://www.irtsa.net/  | |
Tuesday, July 7, 2015
Latest News 7th CPC - Clarifications
ORAP Latest News - Will Prime Minister Modi keep his word on One Rank One Pension?
Will Prime Minister Modi keep his word on One Rank One Pension?
And far more importantly, should he?
On September 15, 2013, the then Chief Minister of Gujarat Narendra Modi spoke passionately at a rally in Rewari to honour retired members of the armed forces:
“Today, I publicly demand from the government of India on behalf of the army men and ex-service men of this country, to publish a white paper on the status of the ‘one rank, one pension’ scheme.”
A year into being Prime Minister, he has pleaded that the government be given more time to implement the One Rank One Pension, or OROP, scheme given the complexities of the issues involved. If he fails to implement the scheme, he will not only invite the ire of army veterans and renege on a campaign promise, but will be in contempt of the highest court in the land.
Equality of treatment
In the landmark case of DS Nakara, the Supreme Court declared that any legal dispute relating to pensions would have to be considered in the milieu of a welfare State. The petitioners in the case had retired from the civil service and the armed forces respectively in the year 1972.
In 1979, the government liberalised the formula for computing pensions. Under the new formula, only those who retired on or after March 31, 1979, in the case of civil servants, and September 23, 1979, in the case of armed forces personnel, would receive the benefit of the liberalised pension scheme.
What this essentially meant was that those who retired before the aforementioned dates could conceivably receive a lower pension than those who retired after this date, despite having retired with the exact same designation or rank. The petitioners contended before the Supreme Court that the differential treatment accorded to those who had retired prior to the specified date clearly violated Article 14 of the Constitution.
Article 14 mandates that the State shall not deny to any person equality before the law or the equal protection of the laws. In the case of Maneka Gandhi v Union of India, the Supreme Court held that Article 14 strikes at arbitrariness in State action, thereby ensuring equality of treatment.
The Supreme Court has however clarified that this “equal protection” does not mean that all laws must be general in character and have universal application. The State retains the power to distinguish and classify persons or things for the purposes of legislation.
Tests for valid classification
In order, however, to pass the test of permissible classification, the Supreme Court has held that two conditions must be fulfilled:
(i) the classification must be founded on an intelligible differentia which distinguishes persons or things that are grouped together from those that are left out of the group; and
(ii) the differentia must have a rational relation to the objects sought to be achieved by the legislation.
The constitutional scholar MP Singh uses Section 11 of the Indian Contract Act, 1872, to illustrate the point. According to Section 11, minors cannot enter into a contract. Can minors claim that this is a violation of their Article 14 right to equality? Section 11 differentiates between two classes: adults and minors. The basis of the classification is age. The object of the classification is the “capacity” to contract. This classification is valid as an individual’s age has a direct bearing on his or her capacity to contract.
In the backdrop of this two-fold test, the Supreme Court in DS Nakara set out to answer the following questions: Is the date of retirement a relevant consideration for eligibility when a revised formula for computation of pension is ushered in and made effective from a specified date? Would differential treatment to pensioners related to the date of retirement via the revised formula for computation of pension violate Article 14?
A distinction without a difference
According to the Attorney General, the Government of India’s position was not that the date of retirement was the basis of the classification. As the Supreme Court put it:
“What is suggested (by the Government) is that when a pension scheme undergoes a revision and is enforced effective form a certain date…those who retire prior to that date form one class and those who retire on a subsequent date form a distinct and separate class…”
The Attorney General contended that this differentiation was grounded on a rational principle and it had a direct correlation to the object sought to be achieved by liberalised pension formula. The Supreme Court strongly disagreed.
The Government conceded that the pre-liberalised pension scheme did not provide adequate protection in old age and that further liberalisation was necessary as a measure of economic security. The Government also took into account rising inflation and the diminishing purchasing power of rupee in devising the upward revision of pension.
According to the Court, if those who were to retire subsequent to the specified date would feel the pangs in their old age, of lack of adequate security, by what stretch of the imagination could the same be denied to those who retired earlier with lower emoluments and yet were exposed to the vagaries of rising prices and the falling purchasing power of the rupee.
The Court ruled that all pensioners were entitled to pension as computed under the liberalised pension scheme’s new formula, irrespective of the date of retirement.
Contempt of Court
In the case of SPS Vains, the Supreme Court had to consider whether there could be a disparity in payment of pension to officers of the same rank in the armed forces, who had retired prior to the introduction of the revised pay scales effective from January 1, 1996, with those who retired thereafter.
This anomaly had arisen as a result of the acceptance by the Government of the recommendations of the Fifth Pay Commission. Those Major Generals who had retired prior to January 1, 1996, would now get a lower pension as compared to the other set of Major Generals who retired after that date, since they would not be entitled to the benefit of the revision of pay scales.
Relying on DS Nakara, the Court held that the object sought to be achieved was not to create a class within a class, but to ensure that the benefits of pension were made available to all persons of the same class, namely all Major Generals, equally. They held in favour of Major General Vains and stated emphatically that individuals who retired with the same rank should get the same pension.
In February, some six years after obtaining a judgement in his favour, Major General Vains filed a contempt petition in the Supreme Court, requesting it to order the Government to implement the OROP scheme. The Court obliged and stated in no uncertain terms that the Government would face contempt proceedings:
“This was part of your manifesto for the Lok Sabha elections. You must keep your word.”
So, will the Prime Minister keep his word? And far more importantly, should he?
Roll of honour
A leading financial daily has called the OROP scheme unconscionable, stating that it will add Rs 8400 Crore annually to the budget, with this amount set to rise drastically in January 2016 once the Sixth Pay Commission’s recommendations are implemented. Proponents of the scheme claim that the three-decade long wait for the OROP, since the judgement in DS Nakara, is hurting army morale. For supporters of the scheme, this is the least that we as a nation can do for the brave soldiers who “gave their today for our tomorrow”.
One would think that former US President Grover Cleveland would agree with such sentiments, as he considered the pension list of the republic “a roll of honour”. But Cleveland himself vetoed hundreds of pension Bills, as he fully understood the need to draw the line between sentiment and fiscal responsibility.
Unfortunately, the Prime Minister does not have the luxury of “drawing the line” that Cleveland did. He finds himself in the unenviable position of being hemmed in by a Supreme Court order and a disillusioned group of army veterans who expect him to fulfil his election promise. A far cry from those heady days on the campaign trail in Rewari.
Source:http://scroll.in/ | |
Surrender of general pool residential accommodation.Holiday Home
Surrender of general pool residential accommodation.Holiday Home
No.12035/16/2005-Pol.II
Government of India
Ministry of Urban Development
Directorate of Estates
Nirman Bhavan,
New Delhi – 110 108.
Dated the 19th June, 2015
OFFICE MEMORANDUM
Sub: Surrender of general pool residential accommodation.
Reference is invited to the Directorate of Estates OM of even number dated 5.9.5005 which provides guidelines for surrender of general pool residential accommodation. The instructions on the subject mentioned above have been reviewed.
2. As per the provisions of SR 317-B-14, an officer may at any time surrender the general pool residential accommodation in his occupation by giving intimation to the Directorate of Estates at least two days before the date of vacation of the residence. The allotment of the residence shall be deemed to have been cancelled with effect from the eleventh day after the day on which the letter is received by the Directorate of Estates or the date specified in the letter whichever is later. If he fails to give due notice he shall be responsible for payment of licence fee for ten days or the number of days by which the notice given by him falls short of ten days, provided that the Director of Estates may accept a notice for a short period.
3. However, there are certain following events for which surrender notice to surrender general pool residential accommodation is not required to be submitted to the Directorate of Estates:
(a) When an officer is in occupation of a lower type residence than his entitlement is allotted a residence of type to which he/she is entitled.
(b) When an officer on his re-employment is found to be entitled to a lower type of residence and as per provisions of SR 317-B-11(4) is allotted a residence in that type.
(c) When an officer is given a change of residence to another residence in the same type either under (i) SR 317-B-15, or (ii) SR 317-B-16, or (iii) SR 317-B-17, or (iv) SR 317-B-21.
(d) When the residence in occupation of an officer is required to be vacated for a public purpose, repairs or demolition and the officer is allotted alternative accommodation.
(e) When the officer does not accept the residence allotted in (b), (c)(iv) and (d) above and he chooses to surrender his existing residence.
(f) When the allotment of the residence in occupation of an officer is cancelled/deemed to be cancelled under the provisions of the Allotment Rules.
(g) When the son/daughter, etc of the retiring/deceased allottee officer gets alternative accommodation on ad hoc basis.
(h) The allottee, who is permitted concessional retention of the accommodation under SR 317-B-11 ad SR 317-B-22 after the cancellation of allotment.
4. This issues in supersession of O.M.No.12035/16/2005-Pol.II dated 5.9.5005 and with the approval of the competent authority.
(Swarnali Banerjee)
Deputy Director of Estates(Policy)
Source: http://estates.nic.in/  | |
Govt issues guidelines to check information leak
Govt issues guidelines to check information leak
New Delhi, July 5 The central government has issued guidelines to its departments to making screening of outsourced employees mandatory and avoiding classified work on computers with net connection to plug information leak.
The move appears to have been fallout of the corporate espionage case, which saw classified information being leaked from ministries, including the Ministry of Petroleum and Natural Gas, to corporate executives who later passed it on to firms for a sum.
In its guidelines issued last week, the Ministry of Home Affairs has asked departments to earmark computers to store and use for working on classified information and has forbidden the use of external memory devices and USBs to computers containing such classified information and misusing the photocopiers in departments.
The MHA came out with the guidelines against the backdrop of the leak of classified information from some ministries including the Ministry of Petroleum and Natural Gas.
"The ministries and departments will ensure that confidential work is not done on computers connected to the Internet and it must to ensured that external memory device cannot be connected to the USB drives on these computers," the guidelines said. Guidelines were sent to Ministries on June 30.
The HRD Ministry and several others that have a sizeable staff employed through outsourcing have circulated the guidelines to bureau heads and asked them to screen their staff.
The guidelines mandate that officials of sections having photocopiers must get their machines locked with codes.
"Counting devices in photocopying machines and other office equipment should be made good use of so that unauthorised copying is not done. CCTV cameras can also be deployed judiciously," the document said. — PTI
Input from:http://www.tribuneindia.  | |
7th CPC Latest News - CHILDREN EDUCATION ALLOWANCE (CEA) UP TO COLLEGE LEVEL
IN 7 TH CPC RECOMMENDATIONS CHILDREN EDUCATION ALLOWANCE (CEA) UP TO COLLEGE LEVEL?
Children Education Allowance (CEA) – Some Suggestions
All the Central government employees will agree that the Children Education Allowance is an important recommendation of the 6th Pay Commission. For the employees who were getting Rs. 30 or 40 per month, CEA was undoubtedly a great gift. Employees of other states and those working in the private sector yearn for CEA.
The Central Government in many ways is correcting the minor shortcomings in CEA through clarifications. Even then, one cannot deny the fact that there are still some flaws in it.
The CEA of Rs.18000 per year allocated by the government has to be given without asking any bills. In the beginning of the academic year, when an employee produces an evidence letter to his office, he has to get his CEA.
Most of the time even when the bills are produced the full CEA amount is never issued. The officers of the specific area decide the amount to be given to the employees.
The present norm that CEA is only for the first two children should be changed as: for any two children of the employee.
The trend of having only one child has increased in many families. When it is a female child, the central government has to double the CEA and give it to the employee.
College education, whether it is engineering or arts has become very common these days. So the 7th pay commission, which is going to be implemented from 1/1/2016, in its recommendation has to include CEA up to college education. Almost all the central government employees expect that the 7th pay commission in its recommendation will certainly include the recommendation of giving CEA for the girl child up to college level.
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Instructions regarding timely issue of Charge-sheet -DOPT
Instructions regarding timely issue of Charge-sheet -DOPT
F. No. 11012/17/2013-Fstt.(A)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training
Establishment A-III Desk
North Block, New Delhi — 110001
Dated July 3rd 2015
OFFICE MEMORANDUM
Subject: Central Civil Services (Classification, Control and Appeal) Rules, 1965 — Instructions regarding timely issue of Charge-sheet regarding.
The undersigned is directed to refer to DoP&T O.M. of even no. dated 2nd January, 2014 regarding consolidated instructions on suspension and to say that in a recent case, Ajay Kumar Choudhary vs Union of India Civil Appeal No. 1912 of 2015 dated 16/02/2015 the Apex Court has directed as follows:
We, therefore, direct that the currency of Suspension Order should not extend beyond three months if within this period the Memorandum of Charges/ Chargesheet is not served on the delinquent officer/ employee;
2. It is noted that in many cases charge sheets are not issued despite clear prima facie evidence of misconduct on the ground that the matter is under investigation by an investigating agency like Central Bureau of Investigation etc. In the aforesaid judgement the Hon’ble Supreme Court has superseded the direction of the Central Vigilance Commission that pending a criminal investigation departmental proceedings are to be held in abeyance.
3. In this connection, attention is invited to this Department G.M. No. 35014/1/81- Estt.A dated 9.11.1982 which contained the guidelines for timely issue of charge-sheet to Charged officer and to say that these instructions lay down, inter-alia, that where a Government servant is placed under suspension on the ground of “Contemplated” disciplinary proceedings, the existing instructions provide that every effort would be made to finalise the charges, against the Government servant within three months of the date of suspension. If these instructions are strictly adhered to, a Government servant who is placed under suspension on the ground of contemplated disciplinary proceedings will become aware of the reasons for his suspension without much loss of time. The reasons for suspension should be communicated to the Government servant concerned at the earliest, so that he may be in a position to effectively exercise the right of appeal available to him under Rule 23 (i) of the CCS (CCA) Rules, 1965, if he so desires. The time-limit of forty five days for submission of appeal should be counted from the date on which the reasons for suspension arc communicated.
4. All Ministries/ Departments are requested to bring the above guidelines to the notice of all concerned officials for compliance.
(Mukesh Chaturvedi)
Director (E)
Source: http://ccis.nic.in/  | |
Wednesday, July 1, 2015
What is Digital India? Must know
Press Information Bureau
Government of India
Ministry of Communications & Information Technology
01-July-2015 10:46 IST
Digital India Week
Several initiatives have been taken for introduction of Information Technology to empower people. Some of the initiatives have resulted in development of products to extend various services in areas relating to health, education, labour and EMPLOYMENT, commerce etc. The Prime Minister Shri Narendra Modi would launch the Digital India Week this evening urging people to gain knowledge and to empower themselves through the Digital India Programme of his Government. Digital India has been envisioned as an ambitious umbrella programme to transform India into a digitally empowered society and knowledge economy. It comprises of various initiatives under the single programme each targeted to prepare India for becoming a knowledge economy and for bringing good governance to citizens through synchronized and co-ordinated engagement of the entire Government. This programme has been envisaged and coordinated by the Department of Electronics and Information Technology (DeitY) in collaboration with various Central Ministries/Departments and State Governments. The Prime Minister as the Chairman of Monitoring Committee on Digital India, activities under the Digital India initiative is being carefully monitored. All the existing and ongoing e-Governance initiatives have been revamped to align them with the principles of Digital India. The vision of Digital India programme also aims at inclusive growth in areas of electronic services, products, manufacturing and JOB OPPORTUNITIES etc. The vision of Digital India is centred on three key areas - (i) Digital Infrastructure as a Utility to Every Citizen (ii) Governance & Services on Demand and (iii) Digital Empowerment of Citizens With the above vision, the Digital India programme aims to provide Broadband Highways, Universal Access to Mobile Connectivity, Public Internet Access Programme, E-Governance: Reforming Government through Technology, eKranti - Electronic Delivery of Services, Information for All, Electronics Manufacturing: Target Net Zero Imports, IT for Jobs and Early Harvest Programmes. Several projects/products have already launched or ready to be launched as INDICATED below: · Digital Locker System aims to minimize the usage of physical documents and enable sharing of e-documents across agencies. The sharing of the e-documents will be done through REGISTERED repositories thereby ensuring the authenticity of the documents online. · MyGov.in has been implemented as a PLATFORM for citizen engagement in governance, through a “Discuss”, “Do” and “Disseminate” approach. The mobile App for MyGov would bring these features to users on a mobile phone. · Swachh Bharat Mission (SBM) Mobile app would be used by people and Government organizations for achieving the goals of Swachh Bharat Mission. · eSign framework would allow citizens to digitally sign a document online using Aadhaar authentication. · The Online REGISTRATION System (ORS) under the eHospital application has been introduced. This application provides important services such as online registration, payment of fees and appointment, online diagnostic reports, enquiring availability of blood online etc. · National Scholarships Portal is a one stop solution for end to end scholarship process right from submission of student application, verification, sanction and disbursal to end beneficiary for all the scholarships provided by the Government of India. · DeitY has undertaken an initiative namely Digitize India PLATFORM (DIP) for large scale digitization of records in the country that would facilitate efficient delivery of services to the citizens. · The Government of India has undertaken an initiative namely Bharat Net, a high speed digital highway to connect all 2.5 lakh Gram Panchayats of country. This would be the world’s largest rural broadband connectivity project using optical fibre. · BSNL has introduced Next Generation Network NGN), to replace 30 year old exchanges, which is an IP based TECHNOLOGY to manage all types of services like voice, data, multimedia/ video and other types of packet switched communication services. · BSNL has undertaken large scale deployment of Wi-Fi hotspots throughout the country. The user can latch on the BSNL Wi-Fi network through their mobile devices. · To deliver citizen services electronically and improve the way citizens and authorities transact with each other, it is imperative to have ubiquitous connectivity. The government also realises this need as reflected by including ‘broadband highways’ as one of the pillars of Digital India. While connectivity is one criterion, enabling and providing technologies to facilitate delivery of services to citizens FORMS the other. Policy initiatives have also been undertaken by DeitY in the e- Governance domain like e-Kranti Framework, Policy on Adoption of Open Source Software for Government of India, Framework for Adoption of Open Source Software in e-Governance Systems, Policy on Open Application Programming Interfaces (APIs) for Government of India, E-mail Policy of Government of India, Policy on Use of IT Resources of Government of India, Policy on Collaborative Application Development by Opening the Source Code of Government Applications, Application Development & Re-Engineering Guidelines for Cloud Ready Applications · BPO Policy has been approved to create BPO centres in different North Eastern states and also in smaller / mofussil towns of other states. · Electronics Development Fund (EDF) Policy aims to promote Innovation, R&D, and Product Development and to create a resource pool of IP within the country to create a self-sustaining eco-system of Venture FUNDS. · National Centre for Flexible Electronics (NCFlexE) is an initiative of Government of India to promote research and innovation in the emerging area of Flexible Electronics. · Centre of Excellence on Internet on Things (IoT) is a joint initiative of Department of Electronics & Information Technology (DeitY), ERNET and NASSCOM. The estimated impact of Digital India by 2019 would be cross cutting, ranging from broadband connectivity in all Panchayats, Wi-fi in schools and universities and Public Wi-Fihotspots. The programme will generate huge number of IT, Telecom and Electronics jobs, both directly and indirectly. Success of this programme will make India Digitally empowered and the leader in usage of IT in delivery of services related to various domains such as health, education, agriculture, BANKING, etc. | |
PAYMENT BANK LICENSE TO DOP
PAYMENT BANK LICENSE TO DOP
MANY NEWS ARE COMING ABOUT PAYMENT BANK LICENSE TO DOP
SO WE MUST KNOW WHAT WILL HAPPEN WHEN DOP WILL GET IT .HERE IS THIS INFO
The Payments Bank will be set up as a differentiated bank and shall confine its activities to further the objectives for which it is set up. Therefore, the Payments Bank would be permitted to undertake only certain restricted activities permitted to banks under the Banking Regulation Act, 1949, as given below:
Acceptance of demand deposits, i.e., current deposits, and savings bank deposits. The eligible deposits mobilised by the Payments Bank would be covered under the deposit insurance scheme of the Deposit Insurance and Credit Guarantee Corporation of India (DICGC). Given that their primary role is to provide payments and remittance services and demand deposit products to small businesses and low-income households, Payments Banks will initially be restricted to holding a maximum balance of Rs. 100,000 per customer. After the performance of the Payments Bank is gauged by the RBI, the maximum balance can be raised. If the transactions in the accounts conform to the “small accounts”1 transactions, simplified KYC/AML/CFT norms will be applicable to such accounts as defined under the Rules framed under the Prevention of Money-laundering Act, 2002.
Payments and remittance services through various channels including branches, BCs and mobile banking. The payments / remittance services would include acceptance of funds at one end through various channels including branches and BCs and payments of cash at the other end, through branches, BCs, and Automated Teller Machines (ATMs). Cash-out can also be permitted at Point-of-Sale terminal locations as per extant instructions issued under the PSS Act. In the case of walk-in customers, the bank should follow the extant KYC guidelines issued by the RBI.
Issuance of PPIs as per instructions issued from time to time under the PSS Act.
Internet banking - The RBI is also open to applicants transacting primarily using the Internet. The Payments Bank is expected to leverage technology to offer low cost banking solutions. Such a bank should ensure that it has all enabling systems in place including business partners, third party service providers and risk managements systems and controls to enable offering transactional services on the internet. While offering such services, the Payments Bank will be required to comply with RBI instructions on information security, electronic banking, technology risk management and cyber frauds.
Functioning as Business Correspondent (BC) of other banks – A Payments Bank may choose to become a BC of another bank for credit and other services which it cannot offer.
The Payments Bank cannot set up subsidiaries to undertake non-banking financial services activities. The other financial and non-financial services activities of the promoters, if any, should be kept distinctly ring-fenced and not comingled with the banking and financial services business of the Payments Bank.
The Payments Bank will be required to use the word “Payments” in its name in order to differentiate it from other banks.
Deployment of funds
The Payments Bank cannot undertake lending activities. Apart from amounts maintained as Cash Reserve Ratio (CRR) with RBI, minimum cash in hand and balances with a scheduled commercial bank/RBI required for operational activities and liquidity management, it will be required to invest all its monies in Government securities/Treasury Bills with maturity up to one year that are recognized by RBI as eligible securities for maintenance of Statutory Liquidity Ratio (SLR). The Payments Bank will participate in the payment and settlement system and will have access to the inter-bank uncollateralised call money market and the collateralised CBLO market for purposes of temporary liquidity management.
6. Capital requirement
Since the Payments Bank will not be allowed to assume any credit risk, and if its investments are held to maturity, such investments need not be marked to market and there may not be any need for capital for market risk. However, the Payments Bank will be exposed to operational risk. The Payments Bank will also be required to invest heavily in technological infrastructure for its operations. The capital will be utilised for creation of such fixed assets. Therefore, the minimum paid up voting equity capital of the Payments Bank shall be Rs. 100 crore. Any additional voting equity capital to be brought in will depend on the business plan of the promoters. Further, the Payments Bank should have a net worth of Rs 100 crore at all times. The Payments Bank shall be required to maintain a minimum capital adequacy ratio of 15 per cent of its risk weighted assets (RWA) on a continuous basis, subject to any higher percentage as may be prescribed by RBI from time to time. However, as Payments Banks are not expected to deal with sophisticated products, the capital adequacy ratio will be computed under simplified Basel I standards.
As the Payments Bank will have almost zero or negligible risk weighted assets, its compliance with a minimum capital adequacy ratio of 15 per cent would not reflect the true risk. Therefore, as a backstop measure, the Payments Bank should have a leverage ratio of not less than 5 per cent, i.e., its outside liabilities should not exceed 20 times its net-worth / paid-up capital and reserves.
7. Promoter’s contribution
The promoter’s minimum initial contribution to the paid up voting equity capital of Payments Bank shall be at least 40 per cent which shall be locked in for a period of five years from the date of commencement of business of the bank. Shareholding by promoters in the bank in excess of 40 per cent shall be brought down to 40 per cent within three years from the date of commencement of business of the bank. Further, the promoter’s stake should be brought down to 30 per cent of the paid-up voting equity capital of the bank within a period of 10 years, and to 26 per cent within 12 years from the date of commencement of business of the bank. Proposals having diversified shareholding and a time frame for listing will be preferred.
8. Foreign shareholding
The foreign shareholding in the bank would be as per the extant FDI policy.
9. Voting rights and transfer/acquisition of shares
As per Section 12 (2) of the Banking Regulation Act, 1949, the voting rights in private sector banks are capped at 10 per cent, which can be raised to 26 per cent in a phased manner by the RBI. Further, as per Section 12B of the Act ibid, any acquisition of 5 per cent or more of voting equity shares in a private sector bank will require prior approval of RBI. This will also apply to the Payments Banks.
10. Prudential norms
As the Payments Bank will not have loans and advances in its portfolio, it will not be exposed to credit risk and, the prudential norms and regulations of RBI as applicable to loans and advances, will therefore, not apply to it. However, the Payments Bank will be exposed to operational risk and should establish a robust operational risk management system. Further, it may face liquidity risk, and therefore is required to follow RBI’s guidelines on liquidity risk management, to the extent applicable.
11. Business plan
The applicants for Payments Bank licences will be required to furnish their business plans and project reports with their applications. The business plan will have to address how the bank proposes to achieve the objectives of setting up of Payments Banks. The business plan submitted by the applicant should be realistic and viable. Preference will be given to those applicants who propose to set up Payments Banks with access points primarily in the under-banked States / districts in the North-East, East and Central regions of the country. However, to be effective, the Payments Bank should ensure widespread network of access points particularly to remote areas, either through their own branch network or BCs or through networks provided by others. The bank is expected to adapt technological solutions to lower costs and extend its network. In case of deviation from the stated business plan after issue of licence, RBI may consider restricting the bank’s expansion, effecting change in management and imposing other penal measures as may be necessary.
12. Corporate governance
The Board of the Payments Bank should have a majority of independent Directors.
The bank should comply with the corporate governance guidelines including ‘fit and proper’ criteria for Directors as issued by RBI from time to time.
SOURCE :RBI
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