CHANGES IN POSTAL SAVINGS SCHEMES W.E.F 01/12/2011

SB ORDER dt 24.11.11	SCHEME	FEATURE	EXISTING	REVISED w.e.f. 01.12.2011	REMARKS AND ACTION TO BE TAKEN
22	KVP	CERTIFICATE ISSUE	Available	Discontinued	Existing stock to be returned from SO to HO and from HO to CSD after 30.11.2011
23	NSC	PERIOD	6 year	5 year	Rubber stamp to be affixed in NSCs about new period and maturity value.
		MATURITY VALUE	Rs.160.10 for Rs.100 Dn	Rs.150.90 for Rs.100 Dn
		10 YEAR NSC IX ISSUE	Not Available	Available	Features not mentioned now.
24	PPF	MAXIMUM SUBSCRIPTION LIMIT	Rs.70,000 per annum	Rs.1,00,000 per annum
		INTEREST RATE	8 % p.a	8.6 % p.a	New interest applicable for balance at credit in account from 01.12.2011
		LOAN INTEREST	1% p.a	2% p.a	1 % p.a Int will continue for Loan taken before 30.11.11
25	MIS	PERIOD	6 year	5 year	Rubber stamp to be affixed in PB about the new features
		INTEREST RATE	8 % p.a	8.2 % p.a
		BONUS	5 % on pri.	Discontinued
26	SB	INTEREST RATE	3.5 % p.a	4% p.a	New interest applicable for balance at credit from 01.12.2011
27	TD	PMC (from 6 months to 1 year)	No interest	SB Interest	For accounts closed on or after 01.12.2011
		PMC deduction	2 % Int less	1 % Int less	Refer Rule 8 and rate table in Rule 7 of POTD rules
	1 TD	INTEREST	6.25 % Q.C.I	7.7 %   Q.C.I	Interest applicable for accounts opened on or after 01.12.11 (Q.C.I-Quarterly Compounded Interest)
	2 TD	INTEREST	6.5 %   Q.C.I	7.8 %   Q.C.I
	3 TD	INTEREST	7.25 % Q.C.I	8.0 %   Q.C.I
	5 TD	INTEREST	7.5 %   Q.C.I	8.3 %   Q.C.I
28	RD	MATURITY VALUE	Rs.728.90 for Rs.10- Dn	Rs.738.62 for Rs.10- Dn	Proportionate value for other Denominations
29	AGENT COMM	PPF	1 %	Discontinued	Applicable for deposits made on or after 01.12.11
		SCSS	0.5 %	Discontinued
		MIS,TD,NSC	1 %	0.5 %
		RD (MPKBY)	4 %	4 %

Points to remember for Cheque Deposits: 

• Investment in KVP through Cheque should not be accepted w.e.f. 28.11.2011. If any cheque presented before 28.11.2011 is cleared after 30.11.2011,  the amount should be refunded to depositor. 
• After 25.11.2011 while accepting cheques for opening MIS, rubber stamp should be affixed on counterfoil “No Bonus shall be payable if cheque is credited to Govt. Account after 30.11.2011 
• Rate of interests applicable according to the Date of Clearance of cheque.
• Courtesy : http://sapost.blogspot.com

Minutes of the meetings of the Committee constituted to look into the promotional prospects of IPOs/ASPOs held on 18.10.2011 and 03.11.2011 in Dak Bhawan, New Delhi

Above minutes have been released by the Department vide No.01-01/2011-SR dated 14.11.2011 which are reproduced below for informaiton of all members.

Minutes of the meeting of the Committee constituted to look into the promotional prospects of IPOs/ASPOs.

In a meeting taken by Secretary (Posts) with All India Association of Inspectors and Assistant Superintendents of Posts on 11.08.2011, it was decided to constitute a Committee which will look into promotional prospects of IPOs/ASPOs.  Accordingly, a Committee was constituted under the Chairpersonship of Member (Personnel) vide Department’s Office Order No.1/1/2011-SR dated 09.09.2011.  The Committee had its first meeting on 18.10.2011, followed by another meeting on 03.11.2011.  The following were present.

S.No	Official Side	Staff Side
1	Member (Opertaions)	Shri R.N. Parashar, Asst. Secretary General, NFPE
2	CGM(Mail Business)	Shri Giri Raj Singh, General Secretary, AllIndiaRMS and MMS Union Group-C
3	Director (Mail Management)	Shri P. Suresh, Circle Secretary, All IndiaRMS and MMS Union and MTS Staff
4	Director(SR)	Shri Devender Kumar, Circle Secretary, National Union RMS and MMS Union, Group-C

The meeting started with the Chairperson welcoming the Staff side. Thereafter, the Staff side explained in detail the stagnation being faced by them in the cadre of IPOs/ASPOs and the long span of service running up to 26 years which they have to put in, before they get promotion to Group-B.  The Staff side also referred to the restructuring of IPOs/ASPOs cadre which the Department took long back but the proposal did not get through.  The Staff side also made a mention of the Grade Pay and promotional prospects of Inspectors in the Departments like Income Tax and Central Excise etc. and pleaded for parity with them.

VII Pay Commission for Central Govt.Employees should be constituted at the earliest-INDWF

Today the INDWF –Indian National Defence Workers Federation is Celebrating its Golden Jubilee Year in New Delhi. A rally to Talkatora stadium is organized by the Federation as a part of the Golden Jubilee celebration. In which around 10000 of its delegates across India are expected to participate. Sources Close to the INDWF revealed that the Supreme command of the Congress Party Smt. Sonia Gandhi is also expected to participate in the Meeting to be held at Talkatora Stadium in the evening. The Prime Minister Dr.Manmohan Singh,Defence Ministers and Shri.Ragul Gandhi.are also invited to attend the meeting.

A list of around 30 Demands also been published by the Federation to put before the Government in its Meeting.The Federation Demands the Government, Particularly the Ministry of Defence that,

• The Defence Procurement Policy to be reviewed, so that privatization and out sourcing may be avoided.
• MACP should be granted to Central Govt.Employees on Promotional Hierarchy.

Interest Rates on Post Office saving schemes revised..!!

No. 6-1/2011-NS.II (Pt.)

Ministry of Finance

Department of Economic Affairs

(Budget Division)

------------------------------------------------------------------------------------------------------------

New Delhi, the 11th November, 2011.

OFFICE MEMORANDUM

Sub:  Decisions on the recommendations of the Committee for

          Comprehensive Review of National Small Savings Fund (NSSF).

The Thirteenth Finance Commission in its Report had, inter alia, recommended that all aspects of the design and administration of the NSSF be examined with the aim of bringing transparency, market linked rates and other much needed reforms to the scheme. As a follow up of this recommendation, the Government had constituted a Committee on 8th July, 2010, headed by Smt. Shyamala Gopinath, the then Deputy Governor, Reserve Bank of India for comprehensive review of NSSF. The terms of reference of the Committee included review of the existing parameters for the small saving schemes in operation and recommend mechanisms to make them more flexible and market linked; review of the existing terms of the loans extended from the NSSF to the Centre and States and recommend on the changes required in the arrangement of lending the net collection of small savings to Centre and States; review of other possible investment opportunities for the net collections from small savings and the repayment proceeds of NSSF loans extended to States and Centre; review of the administrative arrangement including the cost of operation; and review of the incentives offered on the small savings investments by the States.

2.            The Committee submitted its report to the Government on 7th June, 2011. Comments/views of Department of Posts, Department of Revenue, Department of Financial Services, Department of Expenditure and all State/Union Territory Governments were sought on the recommendations made by the Committee.

3.            The recommendations of the Committee have been considered in detail, taking into account the views/comments received from other Departments, States/UTs and representations received from various agents’ associations and others. After detailed examination the following decisions have been taken:- 

Rationalisation of Schemes:

(i)            The maturity period for Monthly Income Scheme (MIS) and National Savings Certificate (NSC) will be reduced from 6 years to 5 years.

(ii)           A new NSC instrument, with maturity period of 10 years, would be introduced.

(iii)          Kisan Vikas Patras (KVPs) will be discontinued.

(iv)         The annual ceiling on investment under Public Provident Fund (PPF) Scheme will be increased  from Rs. 70,000 to Rs..1 lakh.

(v)          Interest on loans obtained from PPF will be increased to 2% p.a.from existing 1% p.a. 

 

(vi)         Liquidity of Post Office Time Deposit (POTD) – 1, 2, 3 & 5 years – will be improved by allowing pre-mature withdrawal at a rate of interest 1% less than the time deposits of comparable maturity. For pre-mature withdrawals between 6-12 months of investment, Post Office Savings Account (POSA) rate of interest will be paid. 

             Interest Rates on Small Savings Instruments :

(i)            The rate of interest paid under Post Office Savings Account will be increased from 3.5% to 4% p.a.

(ii)        The rate of interest on small savings schemes will be aligned with G-Sec rates of similar maturity, with a spread of 25 basis points (bps) with two exceptions. The spread on 10 year NSC (new instrument) will be 50 bps and on Senior Citizens Savings Scheme 100 bps. The interest rates for every financial year will be notified before 1st April of that year.

(iii)          Assuming the date of implementation of the recommendations of the Committee as 1st December, 2011  the rate of interest on various small savings schemes for current financial year on the basis of the interest compounding/payment built in the schemes, will be as given below:-

Instrument	Current Rate (%)	Proposed Rate (%)
Savings Deposit	3.50	4.0
1 year Time Deposit	6.25	7.7
2 year Time Deposit	6.50	7.8
3 year Time Deposit	7.25	8.0
5 year Time Deposit	7.50	8.3
5 year Recurring Deposit	7.50	8.0
5-year SCSS	9.00	9.0
5 year MIS	8.00 (6 year MIS)	8.2
5 year NSC	8.00 (6 year NSC)	8.4
10 year NSC	New Instrument	8.7
PPF	8.00	8.6

  

(iv)          Payment of 5% bonus on maturity of MIS will be discontinued.

Latest clarification regarding stepping up of pay of Senior Assistants of CSS

No. 7/7/2008-CS.I (A) 

Government of India 

Ministry of Personnel, Public Grievances and Pensions 

Department of Personnel & Training 

Lok Nayak Bhavan,
Khan Market New Delhi, 

dated 9th November, 2011.

OFFICE MEMORANDUM 

Subject: Clarification on application of the DOPT's OM No. 7/7/2008-CS.I (A) dated 22.12.2010 and 18.03.2011regarding stepping up of pay of Senior Assistantsof CSS on/after 1.1.2006 vis-a-vis notional fixation of pay. 

      Attention is invited to this Department's OM of even number dated 22.12.2010 and 18.03.2011 on the above subject. Subsequently,Ministries/Departments have sought clarifications on the same subject,the details of which have been listed as under:

SI. No.	Issues                     raised                      by Ministries/Departments	Clarification
(i)
	- Whether the grades ofAssistants and SOs of CSS are centralized for the purpose of stepping up of pay allowed as per this Department's OM No. 7/7/2008-CS.I      (A)   dated 22.12.2010 and 18.03.2011?
		Yes. For the two purposes as mentioned in the      OM    No.    7/7/2008-CS.I    (A)    dated 22.12.2010 and 18.03.2011, the cadres of the      grades    ofAssistants      and   SOs    are centralized.
(ii)	Whether the Notional fixation of pay allowed in the grades ofAssistants and SOs of CSS of certain Select List vide this Department's OM No. 6/3/2009- CS.I         (S)       dated      09.07.2010      is mandatory or optional?	The        Section       Officers/Assistants       are allowed an option to have their pay fixed from the date of their actual promotion or from 1s` July of the Select List year. The option would apply to all such officers covered by the OM No. 6/3/2009-CS.I (S) dated 09.07.2010, irrespective of the fact whether they are included in the Select List from Seniority or the Departmental Exam stream.
(iii)	Whether pay of the            SOs of CSS belonging to LDCE quota for the years 2004     and   2005   who   actually   took charge      as     Section     Officers     after 2.1.2006, but were working as regular Assistant      on    02.01.2006    is    to    be stepped up with that of Shri G.M. Kabui who was appointed as adhoc Assistant w.e.f 02.01.2006?	Claims of Section Officers who opt to have their pay fixed in the grade of Section Officers        from     the      date     of     actual appointment for stepping up of pay may be examined     in    the    light     of    instructions already               issued               by              this Department/Department      of     Expenditure vide OM No.          7/7/2008-CS.I (A) dated 22.12.2010 and 18.03.2011.