One per cent Interest Subvention on Housing Loans upto Rs.15 lakh with cost of the house not exceeding Rs.25 lakhs

One per cent Interest Subvention on Housing Loans upto Rs.15 lakh with cost of the house not exceeding Rs.25 lakhs

The Union Cabinet today approved the proposal under 1% interest subvention on housing loan scheme liberalising the limit of housing loan up to Rs.15 lakh where cost of the house does not exceeding Rs.25 lakh from the present limit of Rs.10 lakh and Rs.20 lakh respectively, and designating National Housing Bank (NHB) as the Nodal Agency (NA) for implementing the scheme both for Scheduled Commercial Banks and Housing Finance Companies.

A budgetary provision of Rs.500 crore has been made for the financial year 2011-12 for implementing the scheme.
Background:
                The existing scheme of 1% interest subvention of housing loans upto Rs.10 lakh, provided the cost of the housing unit does not exceed Rs.20 lakh was approved by the Cabinet in September, 2009. The scheme provides interest subsidy on housing loans as a measure to generate additional demand for credit and to improve affordability of housing to borrowers in the lower and middle income groups. Reserve Bank of India and National Housing Bank were designated as the nodal agencies for implementing the scheme for Scheduled Commercial Banks and Housing Finance Companies respectively.

Consequent upon raising the eligibility limit of the housing loan, limit of subsidy for an individual borrower would increase to Rs.14,865 for a loan of Rs.15 lakh on reducing balance basis from the present limit of Rs.9910 for a loan of Rs.10 lakh.

Source: PIB Release, October 25, 2011

Decision to align small savings returns with mkt rates by March

Decision to align small savings returns with mkt rates by March

NEW DELHI: With declining small savings collection, the Finance Ministry is likely to decide by the end of this fiscal on aligning returns on such schemes with market interest rates, as recommended by a government panel.

"We are looking into the recommendations of the Shyamala Gopinath Committee and a decision will be taken by March end," said a senior Finance Ministry official.

Small savings schemes run by post-office, which are a major source of government's borrowings, are loosing sheen as interest rates offered on bank deposits are more attractive. Rates offered by banks are on rise ever since the RBI has been increasing its key policy rates.

The Gopinath Committee has suggested various measures to make the schemes popular, including aligning the interest rates to market and bringing interest rate on post-office deposits up to par with a saving bank account.

"Benchmarking of interest rates on small saving schemes deposits to rates of Government securities (G-secs) is being actively looked into," the official added.

He said the thinking in the government was to have a floating rate of interest on such savings. "We are looking at combining some of the schemes into one and the rates will be revised every year," he said.

The returns on small savings, like post office time deposit schemes and Monthly Income Scheme, vary between 6.25- 8 per cent. While savings banks accounts fetch a interest rate of 4 per cent calculated on daily basis, a Post office savings account gives an interest rate of 3.5 per cent annually.

Aligning these rates to market rates or Government securities will take the returns to over 8 per cent.

The government had to increase its market borrowing programme to make up for the shortfall in collections from the National Small Saving Fund (NSSF).

The Centre had initially estimated that NSSF would yield around Rs 24,000 crore, but there was net outflow of Rs 35,000 crore from the corpus during April-September.

Reforms in the small savings schemes is long due as the government has not acted on similar recommendations of Y V Reddy Committee report submitted in 2001.

Besides other recommendations, the Gopinath Committee had suggested that interest rate for one-year small deposit scheme should go up to 6.8 per cent from 6.25 per cent and introduction of 10-year National Saving Certificate scheme.

The official also said the issue regarding taxing returns on the small savings schemes, would be considered by the government while firming up the Direct Taxes Code (DTC), which seeks to replace the Income Tax Act, 1961.

Source : The Economic Times, October 23, 2011

Reservation in promotion Treatment of SC/ST candidates promoted on their own merit

Reservation in promotion Treatment of SC/ST candidates promoted on their own merit

No.36012/45/2005-Estt. (Res.)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training

North Block
New Delhi- 110001.
Dated the 10th August,2010.

OFFICE MEMORANDUM

Subject: Reservation in promotion Treatment of SC/ST candidates promoted on their own merit.

The undersigned is directed to refer to this Departments O.M.No.36028/17/2001-Estt. (Res.) dated 11th July, 2002 which clarified that SC/ST candidates appointed by promotion on their own merit and not owing to reservation or relaxation of qualifications will be adjusted against un-reserved points of the reservation roster and not against reserved points. It was subsequently clarified by this Department’s O.M. No.36028/17/2001-Estt. (Res.) dated 31.1 .2005 that the above referred O.M. took effect from 11.07.2002 and that concept of own merit did not apply to the promotions made by non-selection method.

2. Central Administration Tribunal, Madras Bench in O.A. No.900/2005 [S. KaÌugasalamoorthy v/s. Union of India & Others] has set aside the O.M. No.36028/17/2001-Estt. (Res.) dated 31.1.2005 and held that when a person is selected on the basis of his own seniority, the scope of considering and counting him against quota reserved for SCs does not arise. The High Court of judicature at Madras in the matter of UO1 v/s.S. Kalugasalamoorthy [WP No.15926/2007) has upheld the decision of the Central Administrative Tribunal.

3. The matter has been examined in the light of the above referred judgments and it has been decided to with draw O.M. No. 36028/17/2001-Estt. (Res.) dated 31.1.2005 referred to above. It s clarified that SC/ST candidates appointed by promotion on their own merit and seniority and not owing to reservation or relaxation of qualifications will be adjusted against unreserved points of reservation roster, irrespective of the fact whether the promotion is made by selection method or non-selection method. These orders will take effect from 2.7.1997. the date on which post based reservation was introduced.

4. These instructions may he brought to the notice of all concerned.

sd/-
(K.G. Verma)
Director

Amendments to Indian Post Office Act soon

Amendments to Indian Post Office Act soon

Paving way for over 1.5 lakh post offices to offer banking and insurance services, especially in the hinterland, the government will soon make amendments to 'The Indian Post Office Act, 1898'

"The draft amendment bill to make necessary changes in 'The Indian Post Office Act, 1898' has been circulated by the Department of Post for enabling post offices to enter banking and insurance sector," a source privy to the development said.

He further said, "The Planning Commission is vetting the proposal to convert post offices across the nation into full fledged banks and provide insurance service."

Besides mail service, post offices in the country have broadly confined their business to offer financial services like savings bank, postal life insurance, pension payments and money transfer services.

The Department of Posts (DoP), which has the largest reach in the country, has diversified in recent times with providing facilities like rail reservation and telephone recharge coupons, but this move will substantially improve its basket of services.

The government, according to the source, wants to completely give a new dimension to the way post offices do business in the country and this Bill is a step towards that goal.

With this initiative, the Department of Post (DoP) wants to tap the vast rural market with modern banking facilities through post offices.

"We want to commercialise the department. We will seek a licence from the RBI to convert all our post offices into banks," Telecom Minister Kapil Sibal had recently said.

The lack of modern banking facilities in rural areas and dependence of villagers on informal sector for their credit requirements have prompted the government to work on financial inclusion by way of setting up 'postal banks'.

"The State Bank of India can't build branches all over India, but there are post offices across India. The branches are already there, so infrastructure expenditure is not required. So you can actually give banking facilities at relatively lower costs, which would be extremely beneficial to people," he had said.

This will also pave the way for the DoP to offer ATM services and debit cards to its customers.

Courtesy: http://www.indianexpress.com

Detailed Project Report For Postal Bank to be Finalized in Next Six Months

Detailed Project Report For Postal Bank to be Finalized in Next Six Months

Shri Kapil Sibal Addresses Economic Editors’ Conference 2011
ICTE Enabled Inclusive Growth to Script India’s Future
Mobile Phone to be Repositioned as A Tool of Empowerment
Research and Innovation to be Encouraged for A Range of Products and Services
India to Transform into Global Hub for Electronics Manufacturing
Detailed Project Report For Postal Bank to be Finalized in Next Six Months

Shri Kapil Sibal, the Minister of Communications and Information Technology informed the Economic Editor’s Conference here today that mobile phones would be repositioned as an instrument of empowerment. This would combine communication with proof of identity, fully secure financial and other transaction capability and multi-lingual services. The Minister also said that demands for ICTE products and services would be leveraged to foster innovation and encourage R&D through academic institutions and industry. He also emphasized that it is envisioned to transform India into a global hub for electronics system design and manufacturing (ESDM).

Following is the text of opening remarks of the Minister:

“Information Technology (IT) and Telecom best epitomises what 21^st century India is capable of achieving. In these sectors our history is spectacular and the future holds path breaking possibilities. Information and Communications Technology and Electronics (ICTE) has the potential to script India’s future across the economy, society and government.

“ICTE has been contributing to the economic growth of the country by increasing efficiency, competitiveness and technological edge across sectors. ICTE is also the enabling force for inclusive growth and development by increasing economic opportunities across nations, regions and groups.

“The developments in the ICTE sector and allied sectors pose both challenges and opportunities.

“Mobile phone has become more than a communication device. Today more than 850 million mobile subscribers are capable of using their phone for online banking, utility bill payments, pension payments, ticket booking etc. The possibilities here are enormous. It can be developed as a powerful tool of empowerment in near future.

“Services are becoming increasingly linked through mobile, internet and other digital modes of delivery. With Aadhar and NeGP applications, mobile will be used for e-authentication and availing a large number of government services without visiting government offices. This will not only improve the efficiency and effectiveness of public service delivery but will also help to reduce corruption in public life.

“In the IT industry, the advent of cloud technology has thrown up another wider range of possibilities for India. The Indian IT industry can come up with new products and services with cloud technologies, incorporating their own IPs and patents. The stage is set for a quantum jump now.

“Key social ministries like education, health and rural development have ambitious digitization, content creation and e-service delivery programs.

“India is ready for a leapfrog. It is the time to connect the dots and to give a proper direction to the ICTE sector. It is also time to look at some missing pieces. One missing link is Electronics Manufacturing. By 2020, the demand, supply gap in this sector will be $300 billion. Underdeveloped Electronics Manufacturing sector may upset our plans of technology led India in the 21^st century.

“Only a holistic view can help is overcome enormous challenges and help emulate the successes of IT and Telecom in electronics. It is in this context that a combination of three interdependent and synergistic policies for Telecom, IT and Electronics Manufacturing have been formulated and released.

The three policies together drives the National agenda for ICTE. The principal policy objectives are

· Optimally leverage our existing and developing ICT infrastructure and capabilities to meet our growing need for high quality social sector services like health, education, rural development, skill development, welfare programs, e-gov services, economic services like banking and insurance.

· To use the ICTE capabilities to enhance competitiveness and efficiency in manufacturing across the board and in key infrastructure sectors like power

· Leveraging the mushrooming demand for ICTE products and services to foster innovation, encourage R&D through academic institutions and industry and to create a range of products and services that not only meet domestic demand but also addresses global demand.

· To reposition the mobile phone from a mere communication devise to an instrument of empowerment that combines communication with proof of identity, fully secure financial and other transaction capability, multi-lingual services etc.

“The primary objective of NTP 2011 is maximizing public good by making available affordable, reliable and secure telecommunication and broadband services across the entire country. The main thrust of the policy is on the multiplier effect and transformational impact of such services in furthering the national development agenda while enhancing the equity and inclusiveness.

“The key objectives of NTP 2011 is to achieve Full Mobile Number Portability, One Nation-Free Roaming, 100% rural tele-density by 2020, 600 million broadband connections by 2020, on demand broadband of at-least 100 MBPS, One license across services and service areas, Right to Broadband and to reposition mobile phone as an instrument of Empowerment

“ The National Policy on IT 2011 aims to strengthen and enhance India’s position as the global IT hub and to use IT as an engine for rapid, inclusive and sustainable growth in the national economy. This policy aims to make India a knowledge and service society with a secured cyber space.

“The key objectives of National Policy on Information Technology is to achieve by the year 2020, revenue from IT industry of $300 million, to create a pool of 10 million additional skilled manpower, mandatory and affordable e-government services to common man, regulatory framework for secured cyber space.

“The National Policy on Electronics Manufacturing aims to transform India into a global hub for electronics system design and manufacturing(ESDM) so as to meet the country’s needs and serve the international market by promote indigenous manufacturing in the entire value chain of ESDM and promoting a vibrant and sustainable eco-system for R&D, design and engineering and innovation in Electronics

“The key objectives of National Policy on Electronics Manufacturing is to achieve by 2020, turnover of $400 billion, employment of 28 million, turnover of $ 55 billion in chip design and embedded software industry, setting up of 200 electronics manufacturing hub and 2500 PhDs per annum.

“The three policies together aims to ensure that ICTE permeates to all aspects of society, business, governance finance and other aspects of modern life. These policies are oriented towards use of ICTs in ways that consciously promote decentralization and empower the common man.

“One organization and sector which is rarely talked in public but which is equally important for empowering the common man is Postal Department. With its network of 1.55 lakh post offices and wide range of financial, mailing and insurance, post offices in India have the enormous potential to join and ride on the ICTE agenda. To enable post offices to serve the 21^st century Indians, reform agenda is underway

“One, Indian Post Office Bill 2011. To reform and open the Indian Postal Market, which will ultimately result in a vibrant industry and satisfied customers. The bills aims to open the Indian postal market with 50 gm privilege to India Post for a maximum of 15 years, registration of couriers by an independent registration authority and USO of postal sector to be borne wholly by the government. Discussions with stakeholders ( couriers, industry bodies and government agencies) is underway and bill will shortly introduced in the Parliament for approval.

“Two, IT Modernization Project. It has been approved by the Cabinet and essentially involves

· Computerization and networking of 1.55 lakh post offices.

· Core banking solution for Anytime Anywhere Banking through Post Offices with ATM facility

· Delivery of banking, insurance and mailing services in rural areas through hand held device.

· Postal Network to deliver a host of retail ( banking, financial and e-com services) with technology enabled solutions

· Post Offices to become hub of social security payment through digital network

“Three, setting up of Postal Bank of India – Detailed Project Report will be finalized in next six months. This will enable India Post to extend micro credit and other loans through vast network of 1.55 lakh post offices. Coupled with other financial services like micro remittance, micro insurance and micro pensions, postal bank of India will help to achieve the goal of financial inclusion in India

“Four, Commercialization of Postal Network in India, to ensure that a large number of financial, insurance and physical goods and services are delivered to the common man though India Post.

“National Telecom Policy 2011

“Vision – To provide to the people of India, secure, reliable, affordable and high quality converged telecommunication services, anytime, anywhere.

“Mission

· To develop a robust, secure state of the art telecommunication network providing seamless coverage with special focus on rural and remote areas and bridging digital divide.

· To create knowledge based society through proliferation of broadband services in every part of the country

· Make India a global hub for Telecom equipment manufacturing and provisioning of converged communication services.

· To promote R&D and Product Innovation in cutting edge ICTE technologies

· To promote development of new standards and generation of IPRs.

“Objectives

· Increase rural tele-density from the current level of around 35 to 60 by the year 2017 and 100 by 2010

· Provide affordable and reliable broadband on demand by the year 2015 and to achieve 175 million broadband connections by 2017 and 600 million by the year 2020 at minimum download speed of 2 MBPS and making available higher speed of at-least 100 MBPS on demand.

· Provide high speed and high quality broadband access to all village panchayats through optical fiber by 2014

· To meet 80% Indian telecom sector demand through domestic manufacturing with a value addition of 65% by 2020

· Strive to create one nation –one license across services and service areas.

· Achieve One nation – Full Mobile Number Portability and to work towards One Nation – Free Roaming

· To reposition the Mobile Phone from a mere communication device to an instrument of empowerment.

· To recognize telecom and broadband connectivity as a basic necessity like education and health and work towards ‘Right to Broadband’

· Delink the licensing of networks from the delivery of services to the end users to facilitate faster roll out of services.

· To delink spectrum in respect of all future licenses.

· To frame appropriate Exit Policy for the licensees.

“National Policy on Information Technology 2011

“Vision

To strengthen and enhance India’s position as the global IT hub and to use IT as an engine for rapid, inclusive and sustainable growth in the national economy

“Mission

1. To consolidate India’s position as the global IT and ITeS hub and leverage IT to contribute significantly to GDP and employment.

2. To create and promote a sustainable ecosystem for R&D and Innovation

3. To leverage ICT to increase the competitiveness and Productivity of key strategic sectors.

4. To enhance the use of ICT in public services to enhance efficiency, transparency, accountability and reliability.

5. To ensure secure Cyber Space for sustainable growth of ICT.

6. To transform India into a Knowledge and Service society

“Objectives

1. To increase revenues of IT and ITeS industry from USD 88 billion at present to $ 300 billion by 2020

2. To increase exports from the IT industry from $ 55 billion at present to $ 200 billion by 2020

3. To create a pool of 10 million additional skilled manpower in ICT

4. To ensure mandatory and affordable access to delivery of public services to the common man

5. To leverage the usage of ICT in key social sectors like education, health, rural development and financial services to ensure inclusive growth

6. To establish a regulatory and security framework for Secure Cyberspace.

“National Policy on Electronics Manufacturing 2011

“Vision

To transform India into a global hub for electronics system design and manufacturing (ESDM) so as to meet the country’s needs and serve theinternational market.

“Mission

a. To promote indigenous manufacturing in the entire value chain of ESDM for economic development

b. To promote a vibrant and sustainable eco-system for R&D, design and engineering and innovation in Electronics

c. To develop capacities for manufacture of strategic electronics within the country

d. To develop high quality electronics products

e. To promote environment friendly global best practises.

“Objectives

a. To achieve a turnover of USD 400 billion by 2020 involving investment of about USD 100 billion and employment to around 28 million by 2020.

b. To achieve a turnover of USD 55 billion of chip design and embedded software industry, USD 80 billion of exports in the sector.

c. Setting up of over 200 Electronics manufacturing clusters.

d. To significantly upscale high end human resource creation to 2500 PhDs annually by 2020 in the sector.

e. Other Objectives –

(i) Institutional, mechanism developing and mandating standards and certification,

(ii) Develop security profile of ESDM for strategic use,

(iii) To become a global leader in creating IPRs in ESDM.”

SP/AT/ska

SC dismisses plea against post office

SC dismisses plea against post office

Subject:

                Post office official takes god and state government for a ride

Backdrop:

                 No matter how knowledgeable a person may be, he cannot know all the laws and rules. Ignorance of law is no excuse. However, there are occasions when one is guided by others who are supposed to have special or better knowledge of the law governing a particular transaction.

Case Study:

                 Arulmigu Dhandayudhapaniswamy Thirukkoil at Palani in Tamil Nadu is an ancient temple. The temple trust is managed by the Hindu Religious and Charitable Endowments Department of the Government of Tamil Nadu. The temple trust had deposited Rs 1.4 crore with the Palani Post Office under the 'Post Office Time Deposit Scheme' for a period of five years from May 5, 1995.

In December 1995, the post master sent a letter to the trust saying that the scheme had been discontinued since April 1, 1995. Hence, the amount deposited would be refunded without interest. The amount was actually refunded on January 3, 1996.

The trust sent a notice demanding Rs 9,13,951 as interest at 12% per annum. When the postal authorities did not respond, the trust filed a complaint before the Tamil Nadu State Commission, but the complaint was dismissed. The trust appealed to the National Commission, which too dismissed it. The temple trust then approached the Supreme Court.

To ascertain whether there was any deficiency in service, the Supreme Court considered the provisions of the Post Office Savings Bank General Rules, 1981, which are applicable to savings accounts, time deposit accounts and recurring deposit accounts. These are framed under the Government Savings Banks Act, 1873. Rule 17 states that an account that is opened in contravention of rule can be closed at any time and the deposit refunded without interest.

The Supreme Court observed that the notification stipulating that no time deposits shall be made or accepted on behalf of any institution with effect from April 4, 1995, was issued under the rules. The investment by the temple trust was made subsequently. So the apex court held that refusal to pay interest was justified and in accordance with the provisions of Rule 17. Hence, this could not be termed deficiency in service, the court observed.

The apex court also relied on earlier precedents. Where contracts or investments were made in contravention of any notification, it had been held that these were unlawful and void, and hence not binding. In such circumstances, the government would not be liable to pay interest.

The trust wanted the post master to be held liable and compensate for the loss. The court agreed that the trust had lost substantial interest because of the ignorance of the post master about the notification. Yet it refused to hold the post master liable for payment of any compensation as it would be against the rules.

While dismissing the trust's appeal, the Supreme Court suggested guidelines to avoid such incidents.

Officials dealing with public money or those in charge of accepting deposits must be conversant with all the details relating to types of deposits, period, rate of interest, eligibility criteria, etc applicable to the schemes. Details governing various schemes may also be exhibited in vernacular language at a conspicuous location.

When the government issues any notification or instruction, such decision must be immediately communicated to all the authorities concerned by using the latest technology-by fax, email, etc, to keep the officials updated of the latest developments. This information must also be communicated to the subordinate staff so that correct procedures are followed.

Impact:

Ignorance of the law is no excuse. But what is unfortunate is that when both, the government servant dealing with the scheme as well as the citizen are ignorant, it is the citizen who is made to suffer.

Courtesy : http://timesofindia.indiatimes.com

CONFEDERATION CIRCULAR : STEERING COMMITTEE CALLS FOR GREATER MOBILIZATION

CONFEDERATION CIRCULAR : STEERING COMMITTEE CALLS FOR GREATER MOBILIZATION

STEERING COMMITTEE OF GOVERNMENT EMPLOYEES ORGANISATIONSONS ON PFRDA BILL

 Minutes of the Meeting of Steering Committee held on 15^th October 2011

 The meeting, as scheduled, commenced at 11.30 am.

 The following were present.

 Com  Shiv Gopal Mishra, General Secretary, AIRF

   "     Sukomal Sen, Sr Vice President, AISGEF

   "     R Muthusundaram, Secretary General, AISGEF

   "     C Sreekumar, General Secretary, AIDEF

   "     SN Pathak, President, AIDEF

   "     SK Vyas, President, Confederation

   "     MS Raja, Secretary, Confederation

   "     VAN Namboodiri, President, BSNLEU

 After detailed discussion the following decisions were taken.

 1. The signature campaign would continue upto 20^th November 2011 but at the same time the units shall be directed by each participating organisation to intimate the number of signatures obtained upto 15^th November to CHQs of the respective Federations.

  The signatures obtained shall be submitted on 25^th November 2011.

 Memorandum addressed to the Prime Minister shall be signed by the leaders of all participating organisations in the Steering Committee and Members of Parliament and dignitaries and the same shall be submitted to Speaker, Lok Sabha with a forwarding letter with a request to transmit it to the PM for consideration of the Parliament.

 2. Each station has to communicate the number of participants in the March to Parliament by 15^th November 2011.

 The organisations present in the meeting stated their mobilisation for the March as below:

                                                1. AIDEF                                - ---   5000

                                                2. CONFEDERATION          ---- 10000

                                                3. BSNLEU                           ----    3000     

                                                4. AIRF                                   ----- 10000

                                                5. AISGEF                             ----- 50000

 Also, 3000 pensioners are expected to join the March to Parliament.

 5. The Rally shall be from 11 am to 2 pm.

 6. Central Trade Union leaders & MPs shall be invited to address the rally.

 8. On the day the PFRDA bill is taken up for discussion, 2 hour demonstration shall be held in the work places/offices through out the country by the members of all the participating organisations.

 9. Delhi based leaders of the participating organisations will meet on 19^th November 2011 at 12 noon at AIRF office. Local leaders of all participating organisations shall be invited to the meeting.

 10. The Steering Committee shall meet at 5 pm on 24^th November 2011 at AIRF office.

 Sd/-

(SK VYAS)

 CONVENER

POSTAL BANKS

Amendments to Indian Post Office Act soon :

Paving way for over 1.5 lakh post offices to offer banking and insurance services, especially in the hinterland, the government will soon make amendments to 'The Indian Post Office Act, 1898'.

"The draft amendment bill to make necessary changes in 'The Indian Post Office Act, 1898' has been circulated by the Department of Post for enabling post offices to enter banking and insurance sector," a source privy to the development said.

He further said, "The Planning Commission is vetting the proposal to convert post offices across the nation into full fledged banks and provide insurance service."

Besides mail service, post offices in the country have broadly confined their business to offer financial services like savings bank, postal life insurance, pension payments and money transfer services.

The Department of Posts (DoP), which has the largest reach in the country, has diversified in recent times with providing facilities like rail reservation and telephone recharge coupons, but this move will substantially improve its basket of services.

The government, according to the source, wants to completely give a new dimension to the way post offices do business in the country and this Bill is a step towards that goal.

With this initiative, the Department of Post (DoP) wants to tap the vast rural market with modern banking facilities through post offices.

"We want to commercialise the department. We will seek a licence from the RBI to convert all our post offices into banks," Telecom Minister Kapil Sibal had recently said.

The lack of modern banking facilities in rural areas and dependence of villagers on informal sector for their credit requirements have prompted the government to work on financial inclusion by way of setting up 'postal banks'.

"The State Bank of India can't build branches all over India, but there are post offices across India. The branches are already there, so infrastructure expenditure is not required. So you can actually give banking facilities at relatively lower costs, which would be extremely beneficial to people," he had said.

This will also pave the way for the DoP to offer ATM services and debit cards to its customers.

Courtesy: http://www.indianexpress.com

SB/SC deceased claim cases - clarification on attestation of Annexure II & III

SB/SC deceased claim cases - clarification on attestation of Annexure II & III

  SB ORDER NO. 21/2011

No. F.No.113-07/2008-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001, Dated: 12.10.2011

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Attestation of Annexure-II (Affidavit) and Annexure-III (Disclaimer on Affidavit) in case of deceased claim case preferred where there is no nomination- a clarification regarding.

Sir / Madam,

The undersigned is directed to say that after issue of new procedure for payment of amount of Savings Bank/Certificates in the name of deceased depositor/holders circulated vide SB Order No.25/2010 dated 24.12.2010, this office was receiving many references from the field units regarding attestation of Annexure-II and III by the Notary Public. The matter was referred to Min..of Finance, Department of Economic Affairs for clarification.

2.             Min. of Finance (DEA) has now clarified that the matter was referred to Min. of Law and Justice who opined that Annexure-II and III may be attested either by Oath Commissioner or by Notary Public. Therefore, it is requested that necessary amendment may be made in these forms accordingly. Amendment to the forms notified by Min. of Finance in respect of PPF and Sr. Citizen Savings Scheme will be made by the ministry shortly.

3.             It is requested that this clarification may be circulated to all all field units and all deceased claim cases kept pending for this reason should be settled urgently.

4.             This issues with the approval of DDG(FS).

Yours faithfully,

(Kawal Jit Singh)

Assistant Director (SB)

Source: CHQ Blog