Tuesday 30 July 2013

Why You Can Bank on India Post

The government’s postal arm is unmatched in terms of reach and management of deposits
Why You Can Bank on India Post
Image: Getty Images
O
f the 26 aspirants who want to set up a bank, the government arm, India Post, appears to be best placed to fulfil the objective of financial inclusion. The Reserve Bank of India has said new banks will have to set up at least three branches in villages with a population of less than 10,000 for each branch they establish in other areas.

Unlike what many believe, a Post Bank of India (PBI) will be a completely new entity with no legacies of a government department and very little to do with its parent, except using some of its network. It will have an independent board and just two members from the government, one from the finance ministry and another from the department of post.

Geographically, the India Post network beats the entire banking system in the country. The ubiquitous mail carrier is present in more than 1,55,000 locations in India, 90 percent of them in villages. On an average, a post office serves an area of a little over 21 sq km and a population of 7,175, much lower than the RBI norm. In terms of experience with collecting deposits, the crucial left hand side of a bank balance sheet, again the department is unmatched. It manages over Rs 6 lakh crore in savings deposits and offers several financial services such as pensions schemes, insurance, recurring deposits and remittances.

That said, one of the crucial areas in which the department is short in experience is credit; the bread and butter for a bank.

To be sure, the idea of a PBI has been around for nearly 15 years as leaps in modern communications technology gradually made the snail mail unattractive and obsolete. On July 14, India Post shut down its 162-year-old telegraph service.

About five to six years ago, the Administrative Staff College of India prepared a report on turning the post office into a bank. It was more wishful thinking than a concrete business plan. It had proposed turning all post offices into bank branches. “That would have required about Rs 62,000 crore in capital and Rs 2 lakh crore in priority sector lending,” says Ashvin Parekh, Partner and National Industry Leader, Global Financial Services, Ernst & Young. RBI norms require all new banks to comply with reserve requirements from start.

The RBI and the finance ministry had also raised concerns about the department’s credit capability. It was clear that turning the entire network into a bank was a non-starter.

According to the plan prepared by Ernst & Young, India Post will become PBI’s banking correspondent. PBI, which will start with just 40 branches, will use the post office infrastructure but very frugally. In the beginning, it is only looking at a small, Rs 5,000 crore bank. That also means the government will not have to shell out huge amounts of capital. Anyway, the bank will need to bring in new shareholders and sell equity to the public for a stock market listing, as per RBI norms.

The bank can also leverage the technology backbone that is being put in place. The department has a Rs 4500 crore allocation in the 12th Plan for technology upgradation. Of that budget, Rs 1,200 crore will go only into financial services, including a core banking software, Infosys’ Finacle.

Carefully done, the PBI can be a game-changer in rural areas. It has a great brand recall and in many villages of India, the postman is a popular person. In fact, it can go one step ahead and even play a role in financial literacy in villages. 

Sunday 28 July 2013


THE MESSAGE IS LOUD AND CLEAR
AWAKE, ARISE, UNITE

The 9th Federal Council of NFPE held at Hyderabad from 9th to 13th June 2013, gave a clarion call to the five lakhs Postal and RMS employees including Gramin Dak Sevaks (GDS) to be ready for an indefinite strike, in case our demand for setting up of seventh Central Pay Commission (CPC) and merger of DA with pay is rejected by the Central Government. The conference in one voice also demanded the Government to withdraw the Contributory Pension Scheme and scrap the Pension Fund Regulatory and Development Authority (PFRDA) Bill. It further decided that even if Pay Commission is appointed, if the Government refuse to include the revision of wages and service conditions of GDS in the term of reference of the CPC and grant the DA merger benefit to GDS, entire employees shall go on indefinite strike.

The Confederation of Central Government Employees and Workers, the united fighting organisation of Central Government Employees, in its 24th National Conference held at Kolkata from 4th to 6th May 2013 has taken a historic decision to go on indefinite strike demanding constitution of seventh CPC, DA merger, scrapping of New Pension Scheme and the settlement of the 15 point charter of demands. The decision of the Confederation clearly reflected the aspiration and commitment of about 28 lakhs of Central Government Employees and about 40 lakh Central Government Pensioners. Unlike in the past, this time, the Confederation has rightly decided to project the GDS demands as one of the main demands and in the 12th December 2012 strike the GDS participated in the strike en-masse as per the call given by NFPE, even though the so-called recognized union of GDS has not even given strike notice.

Finally, as in the past, as a logical corollary, the Railway and Defence employees Federations have also decided to go for an indefinite strike raising the 7th CPC and DA merger demand. Due to conscious and persistent effort made by Confederation, especially its versatile and undisputed leader Com. S. K. Vyas Ji, a joint meeting of AIRF, AIDEF and Confederation was arranged on 29th July 2013 and Joint Council of Action (JCA) is formed, the JCA decided to organize various campaign programmes, culminating in indefinite strike. As a first step it is decided to submit a letter to the Government listing out the demands and also its time-bound settlement. The seven point charter of demands includes setting up of 7th CPC, DA merger, compassionate appointment, regularization of GDS and Casual Labourers, Scrapping of PFRDA Bill, removal of bonus emolument ceiling, functioning of JCM and implementation of arbitration awards. Even though in the past, the dominant leadership of the National Council JCM has taken a stand that as GDS do not come under JCM, their demand cannot be included, this time the Confederation and NFPE leadership could convince them and they agreed for inclusion of GDS demands also.


Thus a situation has emerged wherein the entire Central Government employees stands united and determined to realize just and genuine demands. The message is loud and clear. Now it is the duty and responsibility of each and every one of us to carry the message to the grass-root level workers and build up broadest unity among the rank and file. Once such a rock-like unity for struggle is achieved, no Government can reject our justified demands. Time is short. Let us awake, arise and unite.

Friday 26 July 2013

NFPE WESTERN ZONE STUDY CAMP
2013 August 25th & 26th Pushkar (Rajasthan)

As you are aware the South Zone Study Camp of NFPE was held at Chennai, Central Zone Study Camp was held at Vidisha (MP) and Eastern Zone Study Camp at Guwahati (Assam) was also held successfully. The next camp for Western Zone will be held at Pushkar (Rajastahan). Delegates from affiliates of NFPE from Rajasthan, Delhi, Himachal Pradesh, Haryana, Punjab and Jammu & Kashmir shall attend the two days Western Zone Study Camp.
 The number of delegates allotted to each circle union is furnished as below:

Circle
P3
P4
R3
R4
GDS
Admin
Postal Accounts
SBCO
Civil Wing
Casual Labour
Total
Rajasthan
50
50
10
5
10
1
1
1
--
1
129
Delhi
15
15
10
3
2
1
1
1
--
1
49
Himachal Pradesh
10
10
5
1
5
1
1
1
--
--
34
Haryana
10
15
10
2
5
1
1
1
--
1
46
Punjab
15
12
10
2
5
1
1
1
--
1
48
J & K
5
5
3
-
3
1
1
1
--
--
19
Total
105
107
48
13
30
6
6
6
--
4
325

In addition all General Secretaries of the above unions shall attend the camp.
Circle Secretaries are requested to select the delegates of their union immediately and instruct them to book the up and down tickets without any further delay. They should reach Pushkar (Rajasthan) before 08-30 AM on 25th August 2013. They can leave the camp only after 6 PM on 26th August 2013. Maximum lady comrades may be included as delegates. The names of the delegates attending the camp should be intimated to the respective General Secretaries before 15th August 2013. Delegates fee per head is fixed as Rs. 600/- (Rs. Six Hundred only). Exact venue and programme notice will be sent separately.
All General Secretaries are requested to instruct their circle Secretaries suitably for immediate follow up action.




              DEPARTMENT CIRCULATED THE LIST OF OFFICE BEARERS OF NFPE


Wednesday 24 July 2013


CONFEDERATION OF CENTRAL GOVERNMENT EMPLOYEES & WORKERS
(CENTRAL HEAD QUARTERS)
1st Floor, North Avenue Post office Building, New Delhi – 110001
 



Circular No. 2/2013                                                         Dated – 23.07.2013

NATIONAL SECRETARIAT MEETING
22.07.2013 – NEW DELHI

CONFEDERATION DECIDES TO TAKE STRIKE BALLOT FOR INDEFINITE STRIKE


Dear Comrades,

The first meeting of the National Secretariat of the Confederation was held at New Delhi on 22.07.2013. Com. K. K. N. Kutty, National President, presided. The following office bearers were present:

Com. S. K. Vyas (Advisor), Com. K. K. N. Kutty (President), Com. M. S. Raja (Working President), Com. Giriraj Singh (Vice President), Com. M. Durai Pandian (Vice President), Com. N. Somaiah (Vice President), Com. M. Krishnan (Secretary General), Com. K. V. Jayaraj (Asst Secretary), Com. Pijush Roy (Asst. Secretary) Com. Ishwar Singh Dabas (Asst. Secretary), Com. Vrigu Bhattacharjee (Financial Secretary), Com. G. Mani Achari (Org. Secretary) Com. R. P. Singh (Org. Secretary) Com. Arup Chatterjee (Org. Secretary).

The following office bearers applied for leave/expressed their inability to attend:

Com. R. N. Parashar (Asst. Secretary) Com. C. P. Sobhana (Org. Secretary) Com. Venkata Subramanian (Org. Secretary), Com. K. P. Rajagopal (Secretary)

The following office bearers could not reach due to train late/cancellation:

Com. T. Narasimhan (Vice President), Com. B. Krishna Gaud (Asst. Secretary), Com. Nilesh D. Nasare (Org. Secretary) Com. P. Suresh (Org. Secretary) Com. V. Nageswara Rao (Org. Secretary), Com. T. Satyanarayana (Org. Secretary), Com. T. K. R. Pillai (Auditor).

The following comrades were absent:

Com. Ashok B. Salunke (Vice President), Com. Ashok Kumar Kanojia (Org Secretary) Com. R. Seethalakshmi (Org. Secretary), Com. Y. Purohit (Org. Secretary).

Before Commencement the meeting paid homage to Late Com. Samar Mukherjee, Ex-MP and Veteran Parliamentarian by observing two minutes silence.

Com. S. K. Vyas, Advisor, in his opening remarks, explained the background of events which led to the formation of a Joint Council of Action of Railway (AIRF) Defence (AIDEF) and Confederation and also pointed out its weaknesses and limitations. He stressed the need to further strengthen the unity. He opined that on the 15 point charter of demands, Confederation must conduct its own independent campaign and agitational programmes. If the Railway and defence Federations come forward for serious agitational programmes including indefinite strike we must join such campaign and strike action.

Com. K. Raghavendran, Ex-Working President, Confederation also addressed the meeting. Thereafter discussion on all agenda items took place.

The following are the main highlights and decision of the National Secretariat meeting

1.      Review of 24th National Conference held at Kolkata from 4th to 6th May 2013

Com. M. Krishnan, Secretary General made a brief presentation of the Conference proceedings, which was approved by the house after discussion.

2.      15 Pointes charter of demands and future course of action.

The meeting decided to organize independent campaign and agitational programmes culminating in indefinite strike. The specific decisions were:
(i) To organize state level joint strike conventions of C-o-C with the participation of all affiliated unions/Associations/Federations during the month of August 2013. Whereever the C-O-C functioning is not satisfactory or has no participation of district units, efforts must be taken to revamp the committee.
(ii)  To organize mass Relay dharna at different places in all important stations during the first week of September 2013 (from 02.09.2013 to 07.09.2013).
(iii)To conduct nationwide strike ballot during the last week of September 2013 (On 25, 26 and 27th September) Model of the ballot will be sent later.
(iv)To convene the Central Working Committee/Central Executive committee meetings of all affiliated unions/Associations/Federations before the 1st week of October 2013. All India Office Bearers of the Confederation may be invited to attend the meeting.

3.      Joint programme of AIRF, AIDEF and Confederation:
It was decided to make all out effort to further strengthen the Joint council of action (JCA) and also to launch serious agitational programmes culminating in indefinite strike before December 2013.

4.      Formation of State Committees and District Committees
It was decided to reorganize the COCs which are defunct or not functioning satisfactorily. This is to be done when the state level strike campaign conventions are organized. Participation of representatives of all affiliates should be ensured in the conventions.

5.      Conducting of All India Mahila Convention of the Confederation.
It was decided to conduct two day’s All India Mahila Convention at New Delhi in the 3rd week of October 2013. C-O-C Delhi has agreed to host the Mahila Convention. Delegate fee shall be Rs.600/- per delegate. Participation of maximum number of Lady comrades from all states/affiliates should be ensured.

6.      Organising Trade Union Education Camp:
It was decided to hold the Trade Union Education Camp at Mumbai in November/December 2013. Number of participants shall be 150 (maximum). Delegate fee Rs. 600/- per delegate Postal, ITEF, Audit & Accounts and Atomic Energy delegates accommodation shall be arranged by their respective Federations. C-O-C Mumbai shall function as the Reception committee. Date and Venue will be intimated later.

7.      Publication of journal
Decided to publish a monthly journal. Name of the journal shall be “CONFEDERATION NEWS” (subject to availability at RNI) Editorial Board shall consist of Com. S. K. Vyas (Advisor) Com. K. K. N. Kutty (President) Com. M. S. Raja (Working President) Com. M .Krishnan (Secretary General) com. K. P. Rajagopal (Secretary) and Com. Vrigu Bhattacharjee (Financial Secretary).

8.      Financial Review:
Financial Secretary shall present the actual picture in the next meeting. Meanwhile letters should be sent to all affiliated unions to remit the arrears of quota immediately.

9.      Letter from ITEF and reply
A letter received from Secretary General, ITEF and the reply given, regarding the election of new office bearers of the Confederation was presented in the meeting by the Secretary General, Confederation. It was decided to send an appeal letter to the ITEF requesting them to resolve the issue amicably.

10.  Affiliation to new organizations:
The application for affiliation received from the following two organisations was considered and it is decided to grant affiliation subject to their accepting the terms & conditions for affiliation.
(i)     Indian School of Mines Karmachari Sangh, Dhanbad.
(ii)   Song and Drama Division Employees Associations, New Delhi

11.  National Convention of Central Trade Unions on 6th August 2013.
The available National Secretariat members/leaders at Delhi will attend the convention on 6th.

President, Com. K. K. N. Kutty in his concluding remarks, briefed decisions taken in the meeting. The meeting ended at 5 PM.

IMPLEMENT THE DECISIONS

All office Bearers, State Committees, other C-O-Cs and Affiliated Unions/ Associations/ Federations are requested to implement the above mentioned decisions of the National Secretariat meeting, WITHOUT FAIL.

This may be treated as most urgent/important,

Fraternally yours,

                                                                                               
(K. K. N. Kutty)                                                                                     (M. Krishnan)
President                                                                                             Secretary General

Mob: 09811048303                                                                             Mob: 09447068125

Tuesday 23 July 2013

CBEC – VALIDITY OF RECRUITMENT RULES – NO BAR FOR MAKING RECRUITMENT ON THE BASIS OF EXISTING RECRUITMENT RULES

F.No.A- 12018/5/2013-Ad.ll-B
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
New Delhi, the 18th July, 2013
To
The Chief Commissioners
(Customs tuid Central Excise)
Sub: Validity of Recruitment Rules.
Sir,
I am directed to say that during the Annual Conference of chief Commissioners. (Customs and Central Excise) held on 17th July, 2013, some of the Chief Commissioners have raised a doubt whether they can
make recruitment pending amendment in Recruitment Rules.
2. Department of Personnel and Training vide O.M. No.AB. 14017/79/2006-Estt. (RR) dated 06th September, 2007 has clarified that Recruitment Rules are statutory and they will not cease to operate unless
they are repealed or replaced. Hence, there is no bar for making recruitment on the basis of existing Recruitment Rules.
Yours faithfully,
sd/-
(A.K. Qasim)
Deputy Secretary to the Govt of India