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================ Blog maintained by : P. Radhamohan Nair, Private Secretary to Post Master General, (Retired) Northern Region, Calicut, Kerala Circle=================

Saturday, November 26, 2016

Regarding payment of Severance Amount to the beneficiaries of SDBS and NPS Subscription deductions under SDBS.

Minimum Balance in Savings Accounts

Reserve Bank of India (RBI) vide its circular dated August 10, 2012 on Financial Inclusion – Access to Banking Services – Basic Saving Bank Deposit Account, advised all Scheduled Commercial Banks to offer a ‘Basic Savings Bank Deposit Account’ which shall not have the requirement of any minimum balance. In terms of aforesaid circular, banks have been advised to offer Facility of ATM card or ATM-cum-Debit Card to all BSBD account holders without any charges.

In other cases, as per extant instructions, with effect from April 1, 2015, banks have to follow additional guidelines on levy of penal charges for non-maintenance of minimum balance in savings bank account which include – notifying the customer clearly by SMS/email/letter etc. that in the event of the minimum balance not being restored in the account within a month from the date of notice, penal charges will be applicable; penal charges may be recovered under intimation to the account holder; the policy on penal charges to be so levied may be decided with the approval of Board of the Bank and the penal charges should be directly proportionate to the extent of shortfall observed. It should be ensured that such penal charges are reasonable and not out of line with the average cost of providing the services. It should be ensured that the balance in the savings account does not turn into negative balance solely on account of levy of charges for non-maintenance of minimum balance.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

7th Pay Commission: Enhanced allowances with arrears to be paid in January

New Delhi: The government is going to pay of enhanced allowances to its 4.8 million central government employees according to 7th Pay Commission recommendations in January along with five months arrears, when situation will return to normalcy after cash crunch period.

The payments will be made after cabinet nod following the the committee on allowances report, the finance ministry source said.

The government has to pay the arrears of enhanced allowances this time because the enhanced allowances under recommendations of 7th Pay Commission have not been paid in August when the pay hike and its arrears were paid, he added.

The committee on allowances, which was set up in July this year on the direction of the cabinet, is looking into the provision of allowances other than dearness allowance under the 7th Pay Commission recommendations as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

The committee met up with the deadline of four months given to it by the cabinet to submit the report, the official revealed.

We are ready to submit our report, when the Finance Minister Arun Jaitley calls up, the committee on allowances head Finance Secretary Ashok Lavasa said recently.

Prime Minister Narendra Modi scrapped Rs 500 and Rs 1,000 notes, which accounted for 86% of all cash in the economy, in a move to catch out Indians with black money, earned by corrupt means or evading taxes. But a bumpy rollout of the new currency has seen millions of people line up outside banks and ATMs.

The situation is worse in in all India. There is an acute shortage of cash supply. Dirty, soiled and non-issuable notes are also being re-circulated.

So, people continue to suffer after demonetisation from November 9 on account of cash crunch and it compels the Finance Minister Arun Jaitley to keep in abeyance the enhanced allowances till things normalize and it is likely to implement from January next with arrears, Finance Ministry official today told on condition of anonymity.

Withdrawal of cash per week - RBI Instructions on 25.11.2016

DCM (Plg) No.1424/10.27.00/2016-16

November 25, 2016

The Chairman / Managing Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks/ Regional Rural
Banks / Urban Cooperative Banks/ State Cooperative Banks/ District Central Cooperative Banks

Dear Sir,

Withdrawal of cash – Weekly limit

Please refer to our circulars DCM (Plg) Nos. 1272/10.27.00/2016-17 and 1273/10.27.00/2016-17 dated November 13 and November 14, 2016, respectively. 

The banks are, hereby, advised that they may continue to allow their existing customers to withdraw cash from their accounts upto ₹ 24,000/- per week, till further instructions. 

The said limit include withdrawals from ATMs as stipulated in our circular DCM (Plg) No.1304/10.27.00/2016-17 dated November 20, 2016.

2. Please acknowledge receipt.

Yours faithfully,
(Suman Ray)
General Manager

Authority: www.rbi.org.in