Indian Postal Banking has lots of scope due to connectivity, says Communications Minister

Indian Postal Banking has lots of scope due to connectivity, says Communications Minister

Written By Admin on October 31, 2014 | Friday, October 31, 2014

Even with widespread retail banking in place, India’s postal banking service has a large scope due to its connectivity, stressed Communications and IT Minister, Ravi Shankar Prasad on Wednesday (October 29).

Prasad was inaugurating the Postal Savings Banks Forum in New Delhi, which was organised by World Savings and Retail Banking Institute (WSBI) jointly with the National Savings Organisation (Ministry of Finance) and the Department of Posts.

The theme of the forum was “The Rising Force of Postal Banking in the Retail Banking Market”.

According to a statement by the Press Information Bureau of India, post offices hold 1.6 billion savings and deposit accounts globally, which is second to commercial banks that hold about 2.5 billion accounts.

Prasad said that postal banking transcended the rich and poor barrier, the biggest asset being the network of post offices throughout the country.

“The asset, ladies and gentlemen, to my understanding is connectivity. In India, as the Secretary Posts rightly pointed out, we have huge institutions spread all across different parts of India,” he said.

India has more than 150, 000 post offices, more than the 100,000 commercial banks, the statement read. Savings accounts in post offices in the country numbered to 310 million more than that of any commercial bank.

Prasad stressed on postal financial inclusion, saying that government services like India Post had not only given employment to many Indians but were giving impetus to e-commerce which was further giving employment and financial inclusion to the poor. Big e-commerce giants like Amazon employ India Post to deliver their goods to various parts of the country.

With a population exceeding 1.1 billion, a burgeoning middle class and better Internet access, India’s e-commerce potential is huge. Online retail sales are expected to surge to $76 billion by 2021, according to consultants Forrester, and the segment is growing at a much slower pace than other emerging markets, including China.

Prasad further said that the Indian Prime Minister had constituted a task force to deliberate on ideas and innovations for the Indian Postal Services.

“Yes, postal banking is a very exciting idea. I have always been supportive of it. Therefore, the Prime Minister himself has started a big task force headed by eminent officers in which Secretary Posts is also there, to come up with a very structured report outlining the new challenges, the new opportunities and the new way ahead for the Postal Services in India,”said Prasad.

Earlier this year, Modi promised to end “financial untouchability” with the Jan Dhan Yojana or Scheme for the People’s Wealth. The scheme would ensure the majority of households in India, of nearly 1.3 billion people, have a bank account within months.

The government said nearly 15 million people opened accounts at centres around the country on the first day of the programme.

The goal is to open 75 million accounts by January next year.

Source : http://www.indtvusa.com/

CONFEDERATION CIRCULAR NO. 20 - JCM NATIONAL COUNCIL STAFF SIDE - ALL INDIA CONVENTION ON 11.12.2014

Friday, October 31, 2014

CONFEDERATION CIRCULAR NO. 20 - JCM NATIONAL COUNCIL STAFF SIDE - ALL INDIA CONVENTION ON 11.12.2014

Ref:  CIRCULAR NO. 20                                                                                                           DATED – 31.10.2014

Dear Comrades,

                We send herewith copy of the letter from the Secretary, Staff Side, JCM intimating of the decision taken by the Staff Side to hold a National Convention at New Delhi on 11^thDecember, 2014.  We have already placed the said letter in our website.  The decision is the outcome of the efforts the Confederation representatives in the Staff Side of the National council and must be considered a step in the right direction in pursuance of the Charter of demands, especially the important issues like wage revision, interim relief, merger of DA, scrapping of the new Pension scheme, privatization, outsourcing etc.  As indicated in the letter of the Staff side Secretary, the staff side is likely to meet in the second fortnight of November, 2014 to finalize the draft declaration and the programme of action.  We shall place the draft declaration on our website as and when the same is finalized.

                Confederation is entitled to deploy 220 delegates to participate in the convention.  We have decided to invite the Confederation of Central Government officers organizations also to participate in the convention.  The quota of delegation for the major affiliates and State Committees are indicated in the table given below.  All other affiliates and State Committee may deploy three delegates (each) to participate in the convention.  The Convention is being held atMPCU Shah Auditorium, Sree Gurjarathi Samaj, Raj Niwas Road, Civil Lines(Opposite Civil Lines Metro Station), Delhi, The Convention  will commence at 12 Noon and will be concluded by 4.00 PM on  11^th December, 2014.  

                The timings have been so arranged to enable the comrades to reach in the morning of 11^th and if necessary to return on the same day.  The delegates  are requested to make their own arrangements for stay etc,if they wish to be at Delhi earlier or later of the day of the convention.  The venue is well connected by Metro Line and from the Civil Lines Station, it is walkable distance only. Kindly ensure that the tickets for onward and return journey for the participating delegates are booked well in advance. 

                With greetings,

Yours fraternally,

M. KRISHNAN

Secretary General.

Encl: Copy of Staff Side letter (CLICK HERE)

Quota for affiliates for National convention of JCM (Staff Side)

Sl. No.	Name	Delegates No.
1	NFPE	70
2	ITEF	25
3	All India Audit & Accounts	15
4	National Fedn. of Atomic Energy	10
5	All India Civil Accts. Emp,. Assn.	8
6	All other affiliates: Each	3
7	Bengal State Committee	10
8	Kerala	10
9	Taminadu	10
10	Andhra Pradesh	10
11	Karnataka	10
12	Maharashtra - Mumbai	10
13	Delhi	10
14	All other State Committes Each	3
15	Confederation of Central Govt. officers organizations.	10

Task Force on India Post to submit report by year-end : Government

Task Force on India Post to submit report by year-end : Government

29 Oct 2014

New Delhi: The Task Force set up by Prime Minister Narendra Modi to leverage post office's network in the country in a bid to enhance the role of India Posts in the financial inclusion, among others, will submit its report by the end of this year, a top government official said on Wednesday.

The 'Task Force on leveraging the Post Office network' includes the Department of Posts Secretary Kavery Banerjee, Telecom Secretary Rakesh Garg, Department of Electronics and IT Secretary RS Sharma, Rural Development Secretary L C Goyal and former SEBI Chairman G N Bajpai.

Former Cabinet Secretary TSR Subramanian is the Chairman of the Task Force.

"The Task Force is working on the mandate provided to it by the government and it will submit its report by the end of the year," Banerjee told reporters on the sidelines of 2014 WSBI Postal Savings Banks Forum here.

The Terms of Reference (TOR) for the Task Force include providing an efficient postal network and points of presence (particularly in rural areas and small towns) both the government and private sector for delivering various citizen centric services, schemes, etc.

This is to further the role of Post Office in the financial inclusion, including Insurance products, to make Post Office financially viable among other objectives.

Earlier, inaugurating the annual event, Communications and IT Minister Ravi Shankar Prasad said postal banks is an "exciting" idea and Prime Minister has set up a task force to study the ways in which post office can be transformed into engines of financial inclusion.

"Post offices in India, through their network of 1.55 lakh branches, can play a big role in not only expanding the ambit of eCommerce, but can also play an important role in financial inclusion," he added.

Banerjee said that today about 63 per cent of the revenues of India Post comes from savings, insurance and remittance services, and the remaining from mail and allied services.

Besides, the number of savings accounts held in post offices in India is over 31 crore, which is more than that of any commercial bank in the country, she added.

The theme of this year's Postal Savings Banks Forum is the rising force of postal banking in retail banking market.

The meeting of the Forum, that is taking place in the national capital, will discuss the role played by various postal departments in their respective countries in retail banking.

This annual meeting brings postal financial institutions from Africa, Asia and Europe together to share experiences towards becoming efficient retail banks.

WSBI Deputy Director and Head of Institutional Relations Fiona Joyce said: "One of the high points on agenda at this forum is on how can post office help in increasing financial inclusion."

Post offices worldwide hold 1.6 billion savings and deposit accounts that is second only to commercial banks, which hold about 2.5 billion accounts, she added.

India News Desk //copy//

The Rising Force of Postal Banking in the Retail Banking Market

The Rising Force of Postal Banking in the Retail Banking Market

"The rising force of postal banking in the retail banking market". 

The Minister for Communications & IT and Law and Justice Shri Ravi Shankar Prasad has said that a group constituted by the Prime Minister consisting of the Secretary of the Postal department is looking into making of a financial institution for Postal savings. He was inaugurating the Postal Savings Banks Forum being organised by World Savings and Retail Banking Institute (WSBI), the National Savings Organisation of the Finance Ministry and the Department of Posts in New Delhi today.

 He said the present government wants to promote financial inclusion and the Jhan Dhan Yojana is a big effort in this direction. Another programme of the government of ‘Digital India’, which is steered by his ministry, also aims at digital inclusion and digital empowerment of rural poor. 

Shri Prasad informed delegates from various countries that Post Office Savings Bank is one of the oldest and largest savings institution in the country and it also has the largest outreach in rural India, and more so, in backward and remote areas. The minister expressed happiness that the major asset of the postal institution, that is its connectivity on the ground is sought to be used for promoting e commerce in the country.

Secretary, Department of Posts Srimati Kavary Banerjee, in her key note address informed that the Department’s network of thousand post offices significantly out-numbers the combined number of branches of all commercial banks taken together.

 The post office savings schemes hold a total of 312 million accounts, which is more than the number of accounts held by any commercial bank. More importantly, the social sector disbursements done through the post offices have succeeded in bringing a total of about 80 million previously unbanked individuals into the fold of formal financial institutions in the last five years. All these have led to a change in the perception about the Post Office among the public as also within the organization.

 Consequently India Post is now perceived as a potential key facilitator of financial inclusion in the country, having a role in promoting the country’s socio-economic development, she added.

The theme of this year’s Postal Savings Banks Forum will be "The rising force of postal banking in the retail banking market". 

PIB

Ban on creation of Plan and Non-Plan posts - Finance Ministry

Ban on creation of Plan and Non-Plan posts - Finance Ministry

Written By Admin on October 31, 2014 | Friday, October 31, 2014

Ban on creation of Plan and Non-Plan posts - Finance Ministry

Posts that have remained vacant for more than a year are not to be revived except under very rare and unavoidable circumstances and after seeking clearance of Department of Expenditure.

Domestic and International Travel

While officers are entitled to vanous classes of air travel depending on seniority, utmost economy would need to be observed while exercising the choice keeping the limitations of budget in mind. However, there would be no bookings in First Class."

Purchase of vehicles:

Purchase of new vehicles to meet the operational requirement of Defence Forces, Central Paramilitary Forces & security related organizations are permitted. Ban on purchase of other vehicles (including staff cars) will continue except against condemnation.

Expenditure Management - Economy Measures and Rationalisation of Expenditure Dated 29th October, 2014

No.7(1)/E.Coord.l2014 

Government of India

Ministry of Finance Department of Expenditure

North Block, New Delhi,  October, 2014

OFFICE MEMORANDUM

Subject: Expenditure Management - Economy Measures and Rationalisation of Expenditure.

Ministry of Finance, Department of Expenditure has been '" issuing austerity instructions from time to time with a view to containing non-developmental expenditure and releasing of additional resources for priority schemes. The last set of instructions was issued on is" September 2013 after passing of the Union Budget. Such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the Government. In the context of the current fiscal situation, there is a need to continue to rationalise expenditure and optimize available resources. With this objective, the following measures for fiscal prudence and economy will come into immediate effect:-

2.1 Cut in Non-Plan expenditure:

For the year 2014-15, every Ministry / Department shall effect a mandatory 10% cut in non-Plan expenditure excluding interest payment, repayment of debt, Defence capital, salaries, pension and Finance Commission grants to the States. No re-appropriation of funds to augment the Non-Plan heads of expenditure on which cuts have been imposed shall be allowed during the current fiscal year.

2.2 Seminars and Conferences:

(i) Utmost economy shall be observed in organizing conferences/ Seminars/workshops. Only such conferences, workshops, seminars, etc. which are absolutely essential, should be held wherein also a 10% cut on budgetary allocations (whether Plan or Non-Plan) shall be effected.

(ii) Holding of exhibitions/fairs/seminars/conferences abroad is strongly discouraged except in the case of exhibitions for trade promotion.

(iii) There will be a ban on holding of meetings and conferences at five star hotels except in case of bilateral/multilateral official engagements to be held at the level of Minister-in-Charge or Administrative Secretary, with foreign Governments or international bodies of which India is a Member. The Administrative Secretaries are advised to exercise utmost discretion in holding such meetings in 5-Star hotels keeping in mind the need to observe utmost economy in expenditure.

2.3 Purchase of vehicles:

Purchase of new vehicles to meet the operational requirement of Defence Forces, Central Paramilitary Forces & security related organizations are permitted. Ban on purchase of other vehicles (including staff cars) will continue except against condemnation.



2.4 Domestic and International Travel:

(i) Travel expenditure {both Domestic Travel Expenses (DTE) and Foreign Travel Expenses(FTE)} should be regulated so as to ensure that each Ministry remains within the allocated budget for the same after taking into account the mandatory 10% cut under DTE/FTE (Plan as well as Non-Plan). Re-appropriation! augmentation proposals on this account would not be approved.

(ii)While officers are entitled to vanous classes of air travel depending on seniority, utmost economy would need to be observed while exercising the choice keeping the limitations of budget in mind. However, there would be no bookings in First Class."

(iii) Facility of Video Conferencing may be used effectively. All extant instructions on foreign travel may be scrupulously followed.

(iv) In all cases of air travel the lowest air fare tickets available for entitled class are to be purchased! procured. No companion free ticket on domestic/ international travel is to be availed of.

Creation of Posts

(i) There will be a ban on creation of Plan and Non-Plan posts.

(ii) Posts that have remained vacant for more than a year are not to be revived except under very rare and unavoidable circumstances and after seeking clearance of Department of Expenditure.

3. Observance of discipline in fiscal transfers to States, Public Sector Undertakings and Autonomous Bodies at Central/ State/Local level:

3.1 Release of Grant-in-aid shall be strictly as per provisions contained in GFRs and in Department of Expenditure's OM No.7(1)/E.Coord/2012 dated 14.ll.2012.

3.2 Ministries/Departments shall not transfer funds under any Plan schemes in relaxation of conditions attached to such transfers (such as matching funding).

3.3 The State Governments are required to furnish monthly returns of Plan expenditure - Central, Centrally Sponsored or State Plan - to respective Ministries/Departments along with a report on amounts ouistanding in their Public Account in respect of Central and Centrally Sponsored Schemes. This requirement may be scrupulously enforced.

3.4 The Chief Controller of Accounts must ensure compliance with the above as part ofpre-payment scrutiny.

4. Balanced Pace of Expenditure:

4.1 As per extant instructions, not more than one-third (33%) of the Budget Estimates may be spent in the last quarter of the financial year. Besides, the stipulation that during the month of March the expenditure should be limited to 15% of the Budget Estimates is reiterated. It may be emphasized here that the restriction of 33% and 15% expenditure ceiling is to be enforced both scheme-wise as well as for the Demands for Grant as a whole, subject to RE ceilings. Ministries/ Departments which are covered by the Monthly Expenditure Plan (MEP) may ensure that the MEP is followed strictly.

The State Governments are required to furnish monthly returns of Plan expenditure - Central, Centrally Sponsored or State Plan - to respective Ministries/Departments along with a report on amounts ouistanding in their Public Account in respect of Central and Centrally Sponsored Schemes. This requirement may be scrupulously enforced.



4.2 It is also considered desirable that in the last month of the year payments may be made- only for the goods and services actually procured and for reimbursement of expenditure already incurred. Hence, no amount should be released in advance (in the last month) with the exception of the following:

(i) Advance payments to contractors under terms of duly executed contracts so that Government would not renege on its legal or contractual obligations.

(ii) Any loans or advances to Government servants etc. or private individuals as a measure of relief and rehabilitation as per service conditions or on compassionate grounds.

(iii) Any other exceptional case with the approval of the Financial Advisor. However, a list of such cases may be sent by the FA to the Department of Expenditure by so" April of the following year for information.

4.3 Rush of expenditure on procurement should be avoided during the last quarter of the fiscal year and in particular the last month of the year so as to ensure that all procedures are complied with and there is no infructuous or wasteful expenditure. FAs are advised to specially monitor this aspect during their reviews.

5. No fresh financial commitments should be made on items which are not provided for in the budget approved by the Parliament.

6. These instructions would also be applicable to autonomous bodies funded by Government of India.



7. Compliance

Secretaries of the Ministries / Departments, being the Chief Accounting Authorities as per Rule 64 of GFR, shall be fully charged with the responsibility of ensuring compliance of the measures outlined above. Financial Advisors shall assist the respective Departments in securing compliance with these measures and also submit an overall report to the Minister-in-Charge and to the Ministry of Finance on a quarterly basis regarding various actions taken on these measures / guidelines.

(Ratan P.Watal) 

Secretary(Expenditure)

All Secretaries to the Government of India

Copy to:

1. Cabinet Secretary

2. Principal Secretary to the Prime Minister 3. Secretary, Planning Commission

4. All the Financial Advisors

Source: www.finmin.nic.in

EDITORIAL POSTAL CRUSADER NOVEMBER-2014

JCM STAFF SIDE UNITY SHOULD BE FOR STRUGGLE

            History of Central Government Employees reveals that Government has taken undue advantage to deny the justified demands of the Central Government Employees, whenever there was disunity among the JCM staff side organizations. On the contrary, whenever staffside stood solidly united the Government was compelled to concede the legitimate rights of the employees to a great extent.

            After Fifth  Pay Commission recommendations, the JCM National council staffside submitted to Government a common charter of demands for modifications of the recommendations of the Pay Commission, which included upward revision of fitment formula and removal of certain glaring anomalies. When Government refused to concede it , notice for indefinite strike was given and finally the Government had to appoint a high-power Group of Ministers Committee under the chairmanship of then Home Minister Shri.Indrajith Gupta and negotiated with the staffside.  In the negotiations also the staffside took a united uncompromising stand which ultimately resulted in Government accepting the demand for 40% fitment formula and some other important demands.

            Unfortunately, when the Sixth Pay Commission recommendations were  submitted to Government, the JCM National Council Staffside miserably failed to take such a firm and united stand and no serious agitational programme was conducted demanding modification of the retrograde recommendations. Instead the dominant leadership of JCM staffside took a compromising stand and depended only on negotiated settlement , without mobilizing the entire rank and file membership behind the demands. Ultimately Government took advantage of this weakness of the leadership and unilaterally announced the implementation of the 6^th CPC recommendations, without conceding majority of the genuine demands raised by the staffside during negotiations. Faulty formula adopted for calculation of  Need Based Minimum Wage , glaring disparity in fitment and fixation formula between lower level officials  and Group- A officers, unscientific pay band and grade pay system and serious anomalies arising out of it , MACP anomalies   everything remained as such  which could not be settled even after seven years.

            Again , when the Government announced the New Contributory Pension Scheme with effect from 01.01.2004 for the new entrants in Central Government Services without any consultation with the JCM National Council Staffside, the dominant  leadership of the JCM staffside did not protest and kept silent. This has emboldened the Government to go ahead with the implementation of the neo-liberal pension reforms. Had the entire JCM Staffside including Railways, Defence and Confederation taken a united stand to oppose the New Pension Scheme and given call for serious agitational programmes including indefinite strike the Government would not have dared to implement the NPS. Of course , Confederation of Central Government Employees and workers opposed the New Pension Scheme and has gone to the extent of conducting one day strike. JCM leadership raised the demand for roll-back of NPS after a very long time and by that time Government succeeded in fully implementing the scheme.

Confederation of Central Government Employees and workers has always stood for unity among the Central Government Employees .When confederation submitted a 15 point charter  to the UPA Government in 2011 demanding appointment of 7 th CPC , 5 year wage revision , Merger of 50% DA, Inclusion of Gramin Dak Sevaks under 7^th CPC etc, the  other major organizations in the JCM were not ready to raise the demands in 2011. Finally confederation was forced to go it alone and conducted series of agitational programmes including Parliament March, one day strike and two days strike. Of course, the lonely struggle conducted by confederation represented the mood of the entirety of Central Government Employees and ultimately the Government was compelled to announce constitution of 7^th CPC in the month of September 2013.

           

                        Now NDA Government which came to power after General   Election has rejected all the main demands of the Central Government Employees which includes merger of DA , Interim Relief , Date of  effect  from 01.01.2014 , inclusion of GDS in the terms of reference of 7^th CPC ,scrapping of New Pension Scheme etc. Further Government declared 100% FDI  in Railways and Defence. Public Private Partnership in Railways was also announced in Railway budget. More than five lakhs posts are lying vacant in various Departments out of which about 2.5 lakhs vacancies are in Railways alone. The UPA Government has unilaterally announced the terms of reference of the 7^th CPC rejecting the draft proposal submitted by JCM staffside.  The memorandum submitted by JCM staffside to the NDA Government for grant of merger of DA and Interim Relief also was totally neglected. The JCM Staffside leadership could not do anything and the employees are suffering. In fact the JCM staffside has become a laughing stock among the employees and its credibility in the eyes of the employees has eroded like anything.

                        It is in this background , eventhough belatedly , the JCM National Council Staffside has decided to organize a National Convention at New Delhi on 11^th December 2014 , to discuss and finalise its strategy to combat the above humiliation meted out by the Government . Better late than never. The decision is well received by the entire Central Government Employees and they are eagerly waiting for the outcome of the convention.

                        NFPE  firmly believes that if the present unity among the JCM staffside organizations is not channelized for building up united struggle including indefinite strike of entire Central Government Employees the National Convention will become a futile exercise and an eye-wash to cool down the growing discontentment among the employees. This shall not happen. We firmly believe in the slogan raised by our late legendary leader Com K.G.Bose- i.e  “UNITY FOR STRUGGLE AND STRUGGLE FOR UNITY”. Such a stand alone can restore the lost glory of the fighting potential of the Central Government Employees and also shall regain the lost faith of employees in the JCM staffside leadership. We cannot be a party to any compromise on the genuine and justified demands of the workers. Let us hope that the JCM staffside leadership shall rise up to the occasion.

4th Day Dharana programme conducted by Circle JCA in front of Circle Office, Bhubaneswar

4th Day Dharana programme conducted by Circle JCA in front of Circle Office, Bhubaneswar

 

 

 

 

 

Govt to launch revamped Kisan Vikas Patra soon: Official

Govt to launch revamped Kisan Vikas Patra soon: Official

Press Trust of India |  New Delhi Oct 28, 2014

Last Updated at 01:50 PM IST

 

The government will soon launch the revamped Kisan Vikas Patra (KVP) besides some new saving instrument programmes for the girl child as well for the physically challenged person, a senior finance ministry official said today.

The government will soon launch the revamped Kisan Vikas Patra (KVP) besides some new saving instrument programmes for the girl child as well for the physically challenged person, a senior finance ministry official said today.

"We are going to launch the revamped Kisan Vikas Patra (KVP) soon again in the form of saving instrument," Rajat Bhargava, Joint Secretary (Budget) in the ministry finance said at an event here.

"Similarly, the government of India is also going to launch some new saving instrument programmes for girl child as well as for the physically challenged person who has not been covered so far (under the programme)," Bhargava added.

Finance Minister Arun Jaitley, in the Budget speech, had said he will re-introduce the KVP, which was a very popular instrument among small savers.

"I plan to reintroduce the instrument to encourage people, who may have banked and unbanked savings to invest in this instrument," Jaitley had said.

The KVP was discontinued by the UPA government in 2011 following the Shyamala Gopinath Committee report. It had suggested that KVPs may be discontinued as they are prone to misuse.

KVP was a popular saving scheme that doubled the money invested in eight years and seven months. The government sold these saving bonds through Post Offices in the country.

The new government has identified financial inclusion and access to formal financial channels as a priority area and the reintroduction of KVP is seen as furthering this objective.

Source : http://wap.business-standard.com/