Friday, December 29, 2017
POSB - Scheme and Interest Rates from 01.01.2018 to 31.03.2018
POSB - Scheme and Interest Rates from 01.01.2018 to 31.03.2018

PPF Accounts to be closed, interest lowered to 4 per cent if you become an NRI - Gazette Notification
Non Resident Indians are continually looking for investment
opportunities in India. A few weeks ago, we blogged about “NRIs for real
estate investment in India – Know the simple Rules” The
Government of Indian recently announced new rules under which select small
savings schemes like Public Provident
Fund (PPF) and National Saving
Certificates (NSC)will not earn you the same rate if you become
non-resident Indians (NRI).
A summary of changes to rules and what it means to NRIs:
NRIs will no longer be
permitted invest in small savings schemes like NSC and PPF. In the past they
were allowed to retain their PPF account if they had opened it before becoming
an NRI.
PPF and NSC currently
fetch an interest rate higher than bank savings rates. Some of it is subsidized
by the Government of India. (Current rate of PPF is 7.8 per cent while Post
Office savings account get 4 %)
PPF accounts would be
deemed to be closed prior to maturity in case the holder becomes a non-resident
Indian (NRI). The investor will be then paid interest at the rate applicable to
Post Office savings accounts till the date the PPF account is closed.
The Indian government notification on PPF dated October 3
states,
“Provided
that if a resident who opened an account under this scheme, subsequently
becomes a non-resident during the currency of the maturity period, the account
shall be deemed to be closed with effect from the day he becomes a non-resident
and interest with effect from that date shall be paid at the rate applicable to
the Post Office Saving Account up to the last day of the month preceding the
month in which the account is actually closed.”
The finance ministry notification adds:
“Provided
that if a resident Indian having purchased a certificate, subsequently becomes
Non-Resident during the currency of the maturity period, the certificate shall
be encashed or deemed to be encashed on the day he becomes a non-Resident, and
interest shall be paid at the rate applicable to the Post Office Savings
Account, from time to time, from such day and up to the last day of the month
preceding the month in which it is actually encashed.”



GDS Committee Recommendations will be implemented soon – Minister replied in Parliament on 27.12.2017
Minister of State (IC) for Communications & Railways, Shri Manoj
Sinha, in a written reply to a question on GDS Kamlesh Chandra Committee
Report, in Lok Sabha on 27.12.2017 informed that a One Man Committee
has been constituted to look into the salary structure, other service
matters and problems of Gramin Dak Sevaks under the Chairmanship of Shri
Kamlesh Chandra.
The Committee has submitted its report to the Government. The salient features are given in the Annexure.
The recommendations of the Committee have been considered by the
Department. After getting the necessary approvals from all concerned,
the recommendation of the Committee will be implemented.
Annexure : Salient features of the One Man Committee Report headed by Shri Kamlesh Chandra
The old system of payment of Time Related Continuity Allowance (TRCA) is
dispensed with and replaced with a new wage payment system. Under the
new wage payment system, 11 TRCA slabs are subsumed into 3 Wage Scales
with two Levels each for BPMs and for other than BPMs. One wage scale
would be common for both the categories of GDSs.
The minimum working hours of GDS Post Offices and GDSs are increased to 4 hours from 3 hours.
The new working hours for GDS Post Offices will be 4 hours and 5 hours only.
The Level 1 GDS Post Offices / GDSs will have 4 hours as working hours and Level – 2 will have 5 hours as working hours.
The Point System for assessment of workload of BPMs has been abolished.
The new wage payment system is linked to revenue generation of GDS Post
Offices. Under the new system, there will be no increase in wages of
BPMs from Level -1 to Level -2 on the basis of workload but the same
will be increased based on achievement of prescribed revenue norms which
is fixed at 100% for normal areas and 50% for special areas.
The GDS Post Offices not achieving the prescribed revenue norm within
the given working hours will have to open GDS Post Offices for minimum
of additional 30 minutes beyond the prescribed working hours.
The GDS BPMs will be paid Revenue Linked Allowance @10% beyond level-2
wage scale if they will be successful in achieving revenue beyond
prescribed norms
The GDS Post Offices has been categorized into A, B; C and D categories
based on the revenue generation norms. The GDS Post Office in A category
will achieve 100% revenue norm. The Committee has recommended a set of
actions for each category of GDS Post Offices.
The six approved categories of GDSs are subsumed into two categories
only. One category will be Branch Post Master and all other 5 categories
of GDSs are subsumed into one Multi Tasking Category.
The GDSs working in the GDS Post Offices will be known as Assistant
Branch Post Master (ABPMs) and those working in the Departmental Post
Offices will be known as Dak Sevak (DS).
The minimum wage has been increased to Rs. 10000/- per month and maximum pay to Rs. 35480/- per month.
The rate of annual increase is recommended as 3%.
A Composite Allowance comprising of support for hiring accommodation for
GDS Post Offices as well as mandatory residence, office maintenance,
mobile and electricity usage charges etc. has been introduced for the
first time.
Children Education Allowance @Rs. 6000/- per child per annum has been introduced for GDSs.
Risk & Hardship Allowance @Rs. 500/- per month for GDS working in the special areas has also been introduced.
A Financial up-gradation has been introduced at 12 years, 24 years and
36 years of services in form of two advance additional annual increases.
The Ceiling of ex-gratia gratuity has been increased from Rs. 60,000 to Rs. 5,00,000
The GDS Contribution for Service Discharge Benefit Scheme (SDBS) should
be enhanced maximum up to 10% and minimum up to 3% of the basic wage per
month, whereas the Department should contribute a fixed contribution of
3% of the basic wage of the GDSs.
The coverage of GDS Group Insurance Scheme has been enhanced from Rs. 50000/- to Rs. 5,00,000/
The contribution of Department in Circle Welfare Fund (CWF) has been increased from Rs. 100/ per annum to Rs. 300/ per annum.
The scope of CWF is extended to cover immediate family members such as
spouse; daughters, sons and dependent daughters in law in the scheme.
The Committee also recommended 10% hike in the prescribed limits of
financial grants and assistances in the Circle Welfare Funds.
The Committee has recommended addition of Rs. 10,000/ for purchase of
Tablet / Mobile from the Circle Welfare in the head “Financial
Assistance of Fund by way of loans with lower rate of interest (5%)”.
Provision of 26 weeks of Maternity Leave for women GDS has been recommended.
The wages for the entire period of Maternity Leave is recommended to be paid from salary head from where wages of GDSs are paid.
The Committee has also recommended one week of paternity leave.
Leave accumulation and encashment facility up to 180 days has been introduced.
Online system of engagement has been recommended.
Alternate livelihood condition for engagement of GDSs has been relaxed.
Voluntary Discharge scheme has been recommended.
The Discharge age has been retained at 65 years.
The Limited Transfer Facility has been relaxed from 1 time to 3 times
for male GDSs. There will be no restriction on number of chances for
transfer of women GDSs. The powers for transfer has been delegated to
the concerned Divisional head.
The ex-gratia payment during put off period should be revised to 35%
from 25% of the wage and DA drawn immediately before put off.
The Committee has recommended preferring transfer before put off duty.
Thursday, December 28, 2017
Govt cuts small savings interest rate by 0.2 percentage points
Small savings schemes public provident fund (PPF) and national savings certificate (NSC) will now have an interest rate of 7.6% while kisan vikas patra (KVP) will yield 7.3%

New Delhi: The government on Wednesday cut the interest rate on small
savings schemes, including public provident fund (PPF), national savings
certificate (NSC) and Kisan Vikas Patra, by 0.2 percentage points for
the January-March quarter, a move that will prompt banks to lower
deposit rates.
Interest rates in the five-year Senior Citizens Savings Scheme, however,
has been retained at 8.3%. The interest rate on the senior citizens’
scheme is paid quarterly.
A finance ministry notification said interest rates have been reduced
across several small savings schemes but that for savings deposits has
been retained at 4% annually.
Since April 2016, interest rates of all small saving schemes have been
recalibrated on a quarterly basis, but there was no change in small
savings interest rates in the October-December quarter.
As per the finance ministry notification, PPF and NSC will fetch a lower
annual rate of 7.6% while KVP will yield 7.3% and mature in 11 months.
The girl child savings scheme Sukanya Samriddhi Account will offer 8.1
from existing 8.3% annually. Term deposits of 1-5 years will fetch a
lower interest rate of 6.6-7.4%, to be paid quarterly, while the
five-year recurring deposit is pegged at 6.9%.
“On the basis of the decision of the government, interest rates for
small savings schemes are to be notified on a quarterly basis,” the
finance ministry said, adding that rates of small savings schemes would
be linked to government bond yields.
Clarification on family pension admissible to NPS employees on their death attributable to Govt. service – CPAO OM dated 11.12.2017
Md. Shahid Kamal
Ansri, ICAS
Assistant
Controller of Accounts
|
Government of India
Ministry of Finance,
Department of Expenditure
Central Pension
Accounting Office
Trikoot-II, Bhikaji
Cama Place, New Delhi-110066
Tel.:011-26103074,
Fax: 011-26167326
|
dated 11th
December 2017
OFFICE MEMORANDUM
Subject: Clarification on family pension admissible to NPS
employees on their death attributable to Govt. service – regarding.
Sir/Madam,
I am to enclose
herewith the OM No. 1/5/2017-P&PW (F) dt. 12/09/2017 regarding
clarification on family pension admissible to NPS employees on their death
attributable to Govt. service for information and further necessary action
please.
Encl: As above
(Md. Shahid Kamal Ansari)
(Asstt.
Controller of Accounts)
Ph. No.
011-26103074
To
All Pr CCAs/CCAs/Cas/AGs and Administrators of UTs (As per list)
********
No. 1/5/2017-P&PW (F)
Ministry of Personnel Public Grievances and Pensions
Department of Pension and Pensioners Welfare
******
3rd Floor, Lok Nayak Bhawan
Khan
Market, New Delhi-110 003
Dated the 12th September, 2017
OFFICE MEMORANDUM
Subject: Clarification on family pension admissible to NPS
employees on their death attributable to Govt. service – regarding.
The undersigned is
directed to refer to CPAO d.o. letter No. CPAO/NPS CRPF-BSF/2017-18/89 dated
the 24th July 2017 on
the above cited subject. As per this Department’s OM No. 38/41/2006-P&PW(A)
dated 5 th May
2009, Government servants covered under National Pension System (NPS) on their
death, attributable to Government service are provisionally entitled for
benefits under CCS(EOP) Rules 1939.
2. The benefit of
family pension under CCS (Pension) Rules and CCS(EOP) Rules has been extended
to the employees under NPS, vide OM dated 05.05.2009. On death of an NPS
employee, the family is, however not paid the benefit from NPS accumulations.
The entitlements of the family on death of an NPS employee, are at par with the
employee borne on a pensionable establishment, both under CCS(Pension) Rules
and CCS(EOP) Rules. Therefore, in case of death of an NPS employee, the family
should be entitled to family pension under EOP Rules at the rate of 60% of the
basic pay and not at the rate of 40% of basic pay applicable on death of holder
of a non-pensionable post.
(Sujasha Choudhury)
Director
Tel:
24635979
To
Central Pension Accounting Office,
(Shri Subhash Chandra, Controller of Accounts)
Trikoot-II, Bhikaji Cama Place,
New Delhi – 110065.
Source: http://confederationhq.blogspot.in/2017/12/blog-post_24.html
Central Pension Accounting Office,
(Shri Subhash Chandra, Controller of Accounts)
Trikoot-II, Bhikaji Cama Place,
New Delhi – 110065.
Source: http://confederationhq.blogspot.in/2017/12/blog-post_24.html
Important Supreme court Judgement – MACP should be given effect from 01.01.2006
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL DIARY NO.3744 OF 2016
Union of India and Ors.
—– Appellant(s)
Vs.
Balbir Singh Turn & Anr.
—– Respondent(s)
WITH
CIVIL APPEAL DIARY NO.5183 OF 2017
CIVIL APPEAL DIARY NO.5184 OF 2017
CIVIL APPEAL DIARY NO.6249 OF 2017
CIVIL APPEAL DIARY NO.7888 OF 2017
CIVIL APPEAL DIARY NO.18265 OF 2016
CIVIL APPEAL NO.244 OF 2017
CIVIL APPEAL DIARY NO.31768 OF 2016
CIVIL APPEAL DIARY NO.38019 OF 2016
CIVIL APPEAL DIARY NO.42810 OF 2016
CIVIL APPEAL DIARY NO.42879 OF 2016
DIARY NO.4546 OF 2017
DIARY NO.11491 OF 2017
DIARY NO.11871 OF 2017
DIARY NO.13664 OF 2017
DIARY NO.13665 OF 2017
DIARY NO.13666 OF 2017
DIARY NO.18186 OF 2017
DIARY NO.18048 OF 2017
DIARY NO.18045 OF 2017
DIARY NO.18185 OF 2017
DIARY NO.22593 OF 2017
DIARY NO.30116 OF 2017
DIARY NO.23164 OF 2017
DIARY NO.11493 OF 2017
DIARY NO.28798 OF 2017
JUDGMENT
Deepak Gupta, J.
1. Applications for condonation of delay in filing and refiling the appeals are allowed.
2. This bunch of appeals is being disposed of by a common judgment since similar questions of law are involved.
3. The 6th Central Pay Commission was set up by the Government of India
to make recommendations in matters relating to emoluments, allowances
and conditions of service amongst other things. The Pay Commission also
made recommendation with regard to armed forces personnel. On 30th
August,2008, the Central Government resolved by a resolution of that
date to accept the recommendation of the 6th Central Pay Commission (CPC
for short) with regard to the personnel Below officer Rank (PBOR)
subject to certain modifications clause (i) of the Resolution reads as
follows:-
“(i) Implementation of the revised pay structure of pay bands and grade
pay, as well as pension, with effect from 01.01.2006 and revised rates
of allowances (except Dearness Allowance/Relief) with effect from
01.09.2008”.
clause 9 of the Resolution reads as follows:-
“(ix) Grant of 3 ACP up-gradation after 8,16 and 24 years of service of PBORs;”
4. Under the recommendations made by the 5th CPC there was a provision
for Assured Career Progression (ACP). Vide this scheme, if an employee
was not promoted he was entitled to get the next higher scale of pay
after completion of 12/24 years of service. The 6th CPC recommended the
grant of benefit of ACP after 10 and 20 years of service. The Union of
India, however decided to grant 3 ACP upgradations, after 8, 16 and 24
years of service to PBORs, as per Clause (ix) extracted above. However,
it would be pertinent to mention that the 6th CPC did away with the
concept of pay scales and reduced the large number of pay scales into 4
pay bands and within the pay bands there was a separate grade pay
attached to a post.
5. For the purpose of this judgment we are dealing with the facts of
civil appeal diary No.3744 of 2016. It would be pertinent to mention
that all the petitioners before the Armed Forces Tribunal (AFT for
short) who are respondents before us are persons below officer rank. The
respondents in this case retired after 01.01.2006 but prior to
31.08.2008. They claim that the benefit of the Modified Assured Career
progression (MACP for short) was denied to them on the ground that the
MACP was made applicable only with effect from 01.09.2008. The
respondents approached the AFT praying that they are entitled to the
benefit of MACP w.e.f 01.01.2006, i.e., the date from which the
recommendation of the 6th CPC with regard to pay and benefits were made
applicable. The stand of the Union of India was that the MACP was
applicable only w.e.f. 01.09.2008 and, therefore, the respondents who
had retired prior to the said date were not entitled to the benefit of
the MACP. The AFT vide the impugned order dated 21.05.2014 held that the
benefit of ACP granted to an employee is part of the pay structure
which not only affects his pay but also his pension and, therefore, held
that the ACP is not an allowance but a part of pay and, therefore, in
terms of Clause (i) of the Government Resolution the MACP was payable
w.e.f. 01.01.2006.
6. The question that arises for decision is whether the benefit of MACP is applicable from 01.01.2006 or from 01.09.2008.
7. The answer to this question will lie in the interpretation given to
the Government Resolution, relevant portion of which has been quoted
hereinabove. A bare perusal of Clause(i) of the Resolution clearly
indicates that the Central Government decided to implement the revised
pay structure of pay bands and grade pay, as well as pension with effect
from 01.01.2006. The second part of the Clause lays down that all
allowances except the Dearness Allowance/relief will be effective from
01.09.2008. The AFT held, and in our opinion rightly so, that the
benefit of MACP is part of the pay structure and will affect the grade
pay of the employees and, therefore, it cannot be said that it is a part
of allowances. The benefit of MACP if given to the respondents would
affect their pension also.
8. We may also point out that along with this Resolution there is
Annexure-I. Part-A of Annexure-I deals with the pay structure, grade
pay, pay bands etc., and Item 10 reads as follows :-
10 | Assured Career Progression Scheme for PBORs.
The Commission recommends that the time bound promotion scheme in
case of PBORs shall allow two financial upgradations on completion of 10
and 20 years of service as at present. The financial upgradations under
the scheme shall allow benefit of pay fixation equal to one increment
along with the higher grade pay. As regards the other suggestions
relating to residency period for promotion of PBORs Ministry of Defence
may set up an Inter-Services Committee to consider the matter after the
revised scheme of running bands is implemented (Para 2.3.34)
|
Three ACP upgradation after 8, 16 and 24 years of service has been
approved. The upgradation will take place only in the hierarchy of Grade
Pays, which need not necessarily be the hierarchy in that particular
cadre.
|
Part-B of Annexure-I deals with allowances, concessions &
benefits and Conditions of Service of Defence Forces Personnel. It is
apparent that the Government itself by placing MACP in Part-A of
Annexure-I was considering it to be the part of the pay structure.
9.The MACP Scheme was initially notified vide Special Army Instructions
dated 11.10.2008. The Scheme was called the Modified Assured Career
Progression Scheme for Personnel Below Officer Rank in the Indian Army.
After the Resolution was passed by the Central Government on 30.08.2008
Special Army Instructions were issued on 11.10.2008 dealing with
revision of pay structure. As far as ACP is concerned Para 15 of the
said letter reads as follows:-
“15. Assured Career Progression. In pursuance with the Government
Resolution of Assured Career Progression (ACP), a directly recruited
PBOR as a Sepoy, Havildar or JCO will be entitled to minimum three
financial upgradations after 8, 16 and 24 years of service. At the time
of each financial upgradation under ACP, the PBOR would get an
additional increment and next higher grade pay in hierarchy.
xx xx xx”
Thereafter, another letter was issued by the Adjutant General Branch on 03.08.2009. Relevant portion of which reads as follows:-
“…….The new ACP (3 ACP at 8, 16 and 24 years of service) should be
applicable w.e.f. 1 Jan 2006, and the old provns (operative w.e.f. the
Vth Pay Commission) would be applicable till 31 Dec. 05. Regular service
for the purpose of ACP shall commence from the date of joining of a
post in direct entry grade.
xx xx xx”
Finally, on 30.05.2011 another letter was issued by the Ministry of Defence, relevant portion of which reads as follows:-
“5. The Scheme would be operational w.e.f. 1st Sep. 2008. In other
words, financial up-gradations as per the provisions of the, earlier ACP
scheme (of August 2003) would be granted till 31.08.2008.”
Therefore, even as per the understanding of the Army and other
authorities up till the issuance of the letter dated 30.05.2011 the
benefit of MACP was available from 01.01.2006.
10. As already held by us above, there can be no dispute that grant of
ACP is part of the pay structure. It affects the pay of the employee and
he gets a higher grade pay even though it may be in the same pay band.
It has been strenuously urged by Col. R. Balasubramanian, learned
counsel for the UOI that the Government took the decision to make the
Scheme applicable from 01.09.2008 because many employees would have lost
out in case the MACP was made applicable from 01.01.2006 and they would
have had to refund the excess amount, if any, paid to them. His
argument is that under the old Scheme if somebody got the benefit of the
ACP he was put in the higher scale of pay. After merger of pay scales
into pay bands an employee is only entitled to higher grade pay which
may be lower than the next pay band. Therefore, there may be many
employees who may suffer.
11. We are only concerned with the interpretation of the Resolution of
the Government which clearly states that the recommendations of 6th CPC
as modified and accepted by the Central Government in so far as they
relate to pay structure, pay scales, grade pay etc. will apply from
01.01.2006. There may be some gainers and some losers but the intention
of the Government was clear that this Scheme which is part of the pay
structure would apply from 01.01.2006. We may also point out that the
Resolution dated 30.08.2008 whereby the recommendation of the Pay
Commission has been accepted with modifications and recommendations with
regard to pay structure, pay scales, grade pay etc. have been made
applicable from 01.01.2006. This is a decision of the Cabinet.
This decision could not have been modified by issuing executive
instruction. The letter dated 30.05.2011 flies in the face of the
Cabinet decision reflected in the Resolution dated 30.08.2008. Thus,
administrative instruction dated 30.05.2011 is totally ultra vires the
Resolution of the Government.
12. Col. R. Balasubramanian, learned counsel for the UOI relied upon the
following three judgments viz. P.K. Gopinathan Nair & Ors. v. Union
of India and Ors. 1 , passed by the High Court of Kerala on 22.03.2017,
Delhi Urban Shelter Improvement Board v. Shashi Malik & Ors.2,
passed by the High Court of Delhi on 01.09.2016, K.K. Anandan & Ors.
v. The Principal Accountant General Kerala (Audit) & Ors3 passed by
the Central Administrative Tribunal, Ernakulam Bench, Kerala on
08.02.2013. In our view, none of these judgments is applicable because
the issue whether the MACP is part of the pay structure or allowances
were not considered in any of these cases.
13. In this view of the matter we find no merit in the appeals, which
are accordingly disposed of. All pending applications are also disposed
of.
…………………………..J.
(Madan B. Lokur)
……………………………J.
(Deepak Gupta)
Employment News : 23 December to 29 December 2017
JOB HIGHLIGHTS
| ||||||||||||||||||||||||||||||||||||||||||||||
Source : http://employmentnews.gov.in/ |
Subscribe to:
Posts (Atom)