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WISH YOU ALL A VERY VERY HAPPY NEW YEAR 2017




RBI increases cash withdrawal limit from ATMs to Rs 4,500 from Jan 1

RBI issued a statement on Friday citing that from January 1 2017, the daily withdrawal limit of ATMs would be increased from the current Rs 2, 500 rupees to Rs 4, 500. The bank also said that there would be no change in weekly withdrawal limits.

The statement read: On a review of the position, the daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 01, 2017, from the existing ₹ 2500/- to ₹ 4500/- per day per card. There is no change in weekly withdrawal limits.Such disbursals should predominantly be in the denomination of ₹ 500.

Click below to enlarge RBI Order enclosed below for information

Meeting with the Committee on Allowances

Shiva Gopal Mishra
Secretary
Ph.: 23382286
National Council (Staff Side)
13-C, Ferozshah Road, New Delhi — 110001
E Mail : nc.jcm.np@gmail.com
No.NC-JCM-2016(Allowances)

The Secretary(Expenditure),
Ministry of Finance,
(Government of India),
North Block,
New Delhi
Dated: December 29, 2016
Dear Sir,

Sub: Meeting with the Committee on Allowances


The Staff Side, National Council(JCM) had a meeting with the Committee on Allowances on 1st September, 2016, wherein it was advised us to send the committee a detailed note. Subsequently, on 16th September, 2016 we sent a detailed note on the allowances to your goodself with the hope that the Committee on Allowances would consider the same, and in case of reservations, they would at least hold a meeting on the detailed memorandum submitted by the Staff Side(JCM).

Almost four months have passed without any outcome. All the Central Government Employees’ are quite agitated as well as are having mental agony because allowances of the VII CPC, have not been implemented.

You are, therefore, requested to fix-up a meeting of the Committee on Allowances, at an earliest to resolve the issues placed in the memorandum of the Staff Side(JCM) on various allowances.

Here it is worth-mentioning that, the issues related to DoP&T were discussed by the Secretary(DoP&T) with the Staff Side on 25th October, 2016. The Staff Side is of firm opinion that, there should be resolution to the demands, and these Allowances should be implemented with effect from 01.01.2016, i.e. the date from which VII CPC has been implemented.

Sincerely yours

(Shiva Gopal Mishra)
Secretary(Staff Side)

Good News! Bank customers can use Post Office ATMs and Post Office ATM can also use in other bank ATM Machine

Interoperable transactions started between Banks and Post Office through ATM Machine. Now we Postal ATM card can be accessed on other banks ATM machine and also Bank ATM card can be also accessed in our Post Office ATM machine. This is a very good news to all the postal and bank customers.


Note: Withdrawal also Possible in many banks ATM, In some location could not be possible it will be rectified. 

Grant of Dearness Relief to Pensioners

Grant of Dearness Relief to Pensioners who are in receipt of provisional pension-Revised rate effective from 1.7.2016 on implementation of decision taken on recommendation of 7th Central Pay Commission.





AIPEU POSTMAN & MTS CENTRAL WORKING COMMITTEE MEETING - 26th & 27th December 2016 - THINDIVANAM (TAMILNADU CIRCLE)









  



  

CONFEDERATION SERVED STRIKE NOTICE TO GOVERNMENT OF INDIA ON 28th DECEMBER 2016


CONFEDERATION SERVED STRIKE NOTICE TO GOVERNMENT OF INDIA ON 28th DECEMBER 2016 



No. Confdn/Strike/2016-19                                                                     Dated - 28th December 2016

To,

The Cabinet Secretary
Cabinet Secretariat
Government of India
Rashtrapati Bhawan
New Delhi – 110001

Sir,

This is to give notice that employees who are members of the affiliated organisations of the Confederation of Central Government Employees and Workers will go on one-day strike on 15th February 2017. The Charter of demands in pursuance of which the employees will embark upon the one-day strike action in enclosed.

Thanking you,

Yours faithfully,


(M. Krishnan)
Secretary General
Mob: 09447068125
Email: mkrishnan6854@gmail.com

Encl: -  Charter of Demands
   

CHARTER OF DEMANDS

1. Settle the demands raised by NJCA regarding modifications of 7th CPC recommendations as submitted in the memorandum to Cabinet Secretary on 10th December 2015. (See Annexure-I). Honour the assurance given by the Group of Ministers to NJCA on 30th June 2016 and 6thJuly 2016, especially increase in minimum wage and fitment factor. Grant revised HRA at the existing percentage itself i.e. 30%, 20% and 10%. Accept the proposal of the staff side regarding Transport Allowance. Settle all anomalies arising out of implementation of 7th CPC recommendations, in a time bound manner.
2. Implement option-I recommended by 7th CPC and accepted by the Government regarding parity in pension of pre-2016 pensioners, without any further delay. Settle the pension related issues raised by NJCA against item 13 of its memorandum submitted to Cabinet Secretary on 10th December 2015. (See Annexure-I).
3. Scrap PFRDA Act and New Pension System (NPS) and grant pension and Family Pension to all Central Government employees recruited after 01.01.2004, under CCS (Pension) Rules 1972.
4.   Treat Gramin Dak Sewaks of Postal department as Civil Servants, and extend all benefits like pay, pension, allowances etc. of departmental employees to GDS. Publish GDS Committee report immediately.
5. Regularise all casual, contract, part-time, contingent and Daily rated mazdoors and grant equal pay and other benefits. Revise the wages as per 7th CPC minimum pay.
6. No Downsizing, Privatisation, outsourcing and contractorisation of Government functions.
7.  Withdraw the arbitrary decision of the Government to enhance the bench mark for performance appraisal for promotion and financial upgradations under MACP from “GOOD” to VERY GOOD” and also decision to withhold annual increments in the case of those employees who are not able to meet the bench march either for MACP or for regular promotion within the first 20 years of service. Grant MACP pay fixation benefits on promotional hierarchy and not on pay-matrix hierarchy. Personnel promoted on the basis of examination should be treated as fresh entrants to the cadre for grant of MACP.
8.  Withdraw the draconian FR 56 (J) and Rule 48 of CCs (Pension) Rules 1972 which is being misused as a short cut as purity measure to punish and victimize the employees.
9.   Fill up all vacant posts including promotional posts in a time bound manner. Lift ban on creation of posts. Undertake cadre Review to access the requirement of employees and their cadre prospects. Modify recruitment rules of Group-‘C’ cadre and make recruitment on Reginal basis.
10.  Remove 5% ceiling on compassionate appointments and grant appointment in all deserving cases.
11.  Grant five promotions in the service carreer to all Central Govt. employees.
12.  Abolish and upgrade all Lower Division Clerks to Upper Division Clerks.
13.  Ensure parity in pay for all stenographers, Assistants, Ministerial Staff in subordinate offices and in all organized Accounts cadres with Central Secretariat staff by upgrading their pay scales. Grant pay scale of Drivers in Loksabha Secretariat to Drivers working in all other Central Government Departments.
14.  Reject the stipulation of 7th CPC to reduce the salary to 80% for the second year of Child Care leave and retain the existing provision.
15.  Introduce Productivity Linked bonus in all department and continue the existing bi-lateral agreement on PLB wherever it exists.
16.  Ensure cashless medical treatment to all Central Government employees & Pensioners in all recognized Government and Private hospitals.
17.  Revision of Overtime Allowance (OTA) and Night Duty Allowance (NDA) w.e.f 01.01.2016 based on 7th CPC pay scale.
18.  Revision of wages of Central Government employees in every five years.
19. Revive JCM functioning at all levels. Grant recognition to the unions/Associations under CCS (RSA) Rules 1993 within a time frame to facilitate effective JCM functioning.
20. Implementation of the Revised Pay structure in respect of employees and pensioners of autonomous bodies consequent on implementation of CCS (Revised Pay) Rules 2016 in respect of Central Government employees and pensioners w.e.f. 01.01.2016.

21. Implementation of the “equal pay for equal work” judgement of the Supreme Court in all departments of the Central Government.

Fresh guidelines on Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 issued by DoPT

Press Information Bureau 
Government of India
Ministry of Women and Child Development

28-December-2016 14:43 IST


Fresh guidelines on Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 issued by DoPT 
WCD Ministry will hold consultations on a regular basis on issues pertaining to the Act: Smt Maneka Sanjay Gandhi

The Minister for Women and Child Development, Smt. Maneka Sanjay Gandhi, had held a review meeting on implementation of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 on 26.10.2016. During the meeting, some cases of sexual harassment pending with certain ministries/ departments were also examined. On the basis of the discussions, it was decided that DoPT will issue fresh instructions so that some of the issues can be suitably addressed.
On the basis of the decisions taken, DoPT has issued fresh guidelines regarding Sexual Harassment of Women at Workplace vide their Office Memorandum dated 22.12.2016. According to the O.M., following have to be observed by the ministries/departments and Internal Complaints Committees:
(i)         Brief details of the implementation of the Sexual Harassment of Women at Workplace Act including the number of cases received and disposed shall form a part of the Annual Report of all ministries/ departments and authorities there under.
(ii)        The enquiry of cases must be completed within 30 days and under any circumstances within 90 days from the date of the complaint.
(iii)       The ministries/ departments etc. have to keep a watch on the complainant so as to ensure that she is not victimized in any manner because of her having filed the complaint. The aggrieved woman has been given further option to send representation to the Secretary or head of the organization in case she feels that she is being victimized because of her complaint. The concerned authority will be required to dispose of this complaint within 15 days.
(iv)       All ministries/ departments etc. are now required to submit a monthly progress report to the Ministry of Women and Child Development so that the progress can be monitored.
Smt. Maneka Sanjay Gandhi, while appreciating DoPT for having quickly issued the guidelines, stated that the WCD Ministry shall continue to work on issues related to sexual harassment of women at workplace and she will be holding further consultations to see if there are any other areas which need to be looked into. The WCD Ministry will be coming out with a comprehensive plan to train the heads of Internal Complaint Committee under the Central Government Ministries/ Departments, the Minister added.

*****

Law Ministry rejects Finance move to link small savings to Aadhaar

Ahead of launching the demonetisation drive, the Finance Ministry had sought Law Ministry’s opinion whether Aadhaar submission could be made compulsory for small savings scheme.

The Law Ministry has turned down Finance Ministry’s proposal that a person investing in small savings schemes — these attract gross deposits of over Rs 2 lakh crore each year — be made to link the accounts to his or her Aadhaar number.

Ahead of launching the demonetisation drive, the Finance Ministry had sought Law Ministry’s opinion whether Aadhaar submission could be made compulsory for small savings schemes like Kisan Vikas Patra, Public Provident Fund, National Savings Certificate, Senior Citizen Saving Scheme and Sukanya Samriddhi Yojana.

The rationale put forth by Finance Ministry’s Department of Economic Affairs (DEA) was that individuals evade scrutiny by parking cash below Rs 50,000 into multiple small savings accounts because such deposits (below Rs 50,000) do not seek permanent account number (PAN) details.

The Law Ministry turned down DEA’s proposal on October 4 saying such schemes cannot be notified as “service within the meaning of Section 7 of the Aadhaar Act” since small savings are serviced under the Public Account Fund of India and not the Consolidated Fund to which the Aadhaar Act applies.


Section 7 of the Act states that the government can ask an individual to furnish his Aadhaar number to establish his identity “as a condition for receipt of a subsidy, benefit or service for which the expenditure is incurred from, or the receipt therefrom forms part of, the Consolidated Fund of India”.
Not satisfied with the legal opinion, the DEA once again approached Law Ministry to reconsider the October 4 advice, saying that the fresh reasoning for bringing small savings under the Aadhaar ambit was that the “expenditure incurred to campaign for small savings scheme was derived from the Consolidated Fund”.

On December 14, Law Ministry reiterated its earlier opinion and directed that all transactions relating to these schemes should be accounted from the Public Account Fund as per the National Small Savings Fund (Custody & Investment) Rules.

Quoting a 2001 order of a Constitution Bench of the Supreme Court, the Law Ministry said “when a statute vests certain power in an authority to be exercised in a particular manner, the said authority has to exercise it only in the manner provided in the statute itself”.

In fiscal 2014-15, deposits in small savings schemes were Rs 289,080 crore while withdrawals were Rs 248,667 crore.

Source: Indian express.

Regarding TA claims- Dept. orders

No.79016/1/2015-E.IV
Governmen-t of India
Ministra of Finance Departmenl of Expenditure
***
 North Bloch New Delhi
Dated the 21st   December, 2016
Oflice Memorandum

sub:- Applicabilify of provision below sR-147 to the family of deceased Gol't. servant, in special circumstances- clarification regarding.

Various references are being received in this Department seeking clarification from this Department as to whether Rule below sR-148 for admitting Travelling Allowance (TA) ctaim by family of deceased employees beyond one year period of the death of the employee is also covered under GoI decision 2(iii) below Rule SR-147 which provides that 'TA to Central Govemment servant on retirement may be availed of by a Govemment servant u,ho is eligible for it, al any time during his leave preparatory to retirement, or within one year of the date of his retifement and povvers to €x1end the timelimit of one year will be exercised by the Administrative Ministries/ Departments with the approval of the FA concerned, in individual cases attendant with special circumstances.'

2. The matter has been considered in this Department and it has been decided that the above provision beiow SR-147 for extension of time limit of one year with the approval of FA of the concemed Ministry, will also be applicable in case of family of the deceased Gort. servant.

3. This is issued wittr tle approval of Joint Secretary (Personnel).
 Deputy Secretary  

Postal Dept gives wings to priority mail


In a historic development, the Punjab circle of the Postal Department connected the priority mail and parcel service, including Speed Post and Express Parcel, with flights taking off from Guru Ramdassjee International Airport in the holy city.
Parcels in local post offices and meant for delivery in metros and other cities across the country, including Mumbai, Bangalore and Chennai, will now be sent through flights to their destinations. 

PM Swain, Chief Postmaster General, Punjab and Chandigarh, launched the air linkage of priority mail to all destinations at the head post office today. 

The facility will provide faster and reliable delivery of Speed Post and Express Parcel, booked from Amritsar and other important cities in Punjab circle.

Speaking on the occasion, Swain said priority articles booked till previous evening in Amritsar, Tarn Taran, Gurdaspur, Kapurthala, Jalandhar, Phagwara, Batala, SBS Nagar and Hoshiarpur, which were shipped during night through Departmental Mail Motor Service to Amritsar hub, were handed over to airlines in the morning for delivery at far off destinations. 

He said it would give impetus to business, trade, commerce and industrial activities in cities, including Amritsar, Jalandhar, Kapurthala and Hoshiarpur, besides helping in economic growth of the region. Garments, sports and other goods, which are manufactured in Punjab, will reach more customers with the launch of priority Speed Post and Express Parcel to cities like Chennai, Bangalore and Mumbai. 

Swain flagged off the first air consignment from Amritsar Head Post Office today. 

He said parcels would be sent through different airlines depending on their efficient connectivity. 

He further added that first historic air linkage of Speed Post letters and parcels, booked in Ludhiana, Chandigarh, Jalandhar, Patiala and Amritsar for Kolkata and other major destinations in North East India, including Guwahati, Agartala and Silchar, was established from Chandigarh International Airport, Mohali, last week.

PROGRESS ON CADRE RESTRUCTURING

PROGRESS

ON CADRE RESTRUCTURING

Products and Services of IPPB

IPPB is a public limited company under the Department of Posts with an independent Board of Directors. It will be headed by a Managing Director and CEO, and will set up a corporate head quarter and up to 650 branches to manage its functions on a day to day basis. 

IPPB will leverage the physical and IT infrastructure of the Post office and be set up on a lean operating model. It will focus on low-cost, low-risk, technology based solutions to extend access to formal banking.

Products and Services of IPPB

1. IPPB Payment Services

IPPB will provide the benefits of payments and remittances to the customers, by adopting newer, efficient processes and technologies such as mobile based payments, digital wallets and innovative payment and remittance products that are continuously emerging in the market today.
Combined with doorstep cash payment options like traditional money orders, IPPB will differentiate itself from the other players while comparing well with all other benefits offered by competitors.
IPPB will drive the benefits of financial inclusion by bringing a host of financial products to suit the needs of different strata of society with special focus on the marginalized sections and citizens in rural areas. In so doing it will also provide the following proposed services: 

  • Direct Benefits transfer (DBT) of social security payments of various Ministries. 
  • Utility bill payments for electricity, water, telephone, gas etc.
  • Facilitate payments of various Central and State Govt& Municipal dues, taxes and fees/taxes of various Universities/ educational institution.
  • Person to person remittances both domestic and cross-border. Special focus will be on providing, economical, safe and convenient money transfer facilities to migrant labourers, NRIs remitting money to relatives, institutions etc.
  • Demand Deposits (Current account and Savings Account)- with special focus on MSMEs, small entrepreneurs, village panchayats & SHGs.
  • Distribution of third party financial products such as Insurance (health & general), mutual funds and pension products.
  • Access to formal credit products by acting as BCs of banks & MFIs.
Product innovation will be a continuous exercise to expand the bouquet of services adapting to the evolving needs of its customers and the rapid advancements in communication and payments technologies.

2. IPPB Banking Services

Apart from savings account with up to INR 1,00,000 in deposit, the products offered by IPPB are different from POSB products. POSB savings accounts do not have any limit unlike payments bank savings account. On the other hand, payments banks, can offer current accounts for use by businesses and institutions whereas POSB does not offer these accounts. Other kinds of deposits under POSB are unique to it and will not be on offer by the payments bank. The purpose of the savings accounts and current accounts of IPPB is to facilitate flow of money and payments of different kinds from Government to Citizen, Citizen to Government, Citizen to Citizen, Citizen to Businesses and Businesses to Citizens whereas the POSB accounts are mainly savings instruments.

Apart from the existing customers of the DoP, IPPB will focus on the underbanked and unbanked population in different parts of the country. It will also try to target services for MSMEs, senior citizens, students, migrant population, low income households, unorganized sector and other groups with special service requirements. In addition to its own products, the payments bank will partner with third parties to offer a wide range of financial and banking services to cater to the needs of its target segments.

The customers will have the choice of the amount they want to leave in their IPPB account at any point of time and they will earn interest on their money in these accounts also. They would be able to channel money from their IPPB accounts to any of the POSB schemes. For example, an IPPB customer will be able to use money in his account to open and service a RD/ TD/ SSY or any other POSB account. Thus, both IPPB and POSB can synergistically serve the customers.

FREQUENTLY ASKED QUESTION ON IPPB

FREQUENTLY ASKED QUESTION ON IPPB

Concept of Payments Bank

1. What is a Payments Bank?

A Payments Bank is a “differentiated bank” set-up under the guidelines issued on Nov 27, 2014 by the Reserve Bank of India (RBI) to further financial inclusion for the underserved population by providing (i) current and savings accounts and (ii) payments or remittance services to migrant labour workforce, low income households, small businesses, unorganised sector entities and other users. This is to be done by enabling high volume-low value transactions in deposits and payments or remittance services in a secure technology-driven environment.

Please click on this link for further details: 
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=32615 (RBI Guidelines)

2. Why is a Payments Bank required?
A vast majority of the rural population (over 60%, as per RBI), is still unbanked or underbanked. An easily accessible payments network and universal access to savings is fundamental to financial inclusion. At the same time, several non-banking entities such as the Department of Posts (DoP), prepaid payment instrument companies, business correspondent companies, etc., have had reasonable success in facilitating payments and other select financial services in urban areas. Their customers, however, face several limitations and difficulties arising out of their nonbanking status. Of particular note amongst these is the DoP which has a wide network and experience of handling financial transactions, but does not have a banking license. Given their potential to further the cause of financial inclusion, the RBI granted such entities a differentiated banking license, i.e. a payments bank license, which enables these entities to provide banking services other than credit. Credit and insurance are as integral to financial inclusion as are other banking services, and payments bank can offer these products as well but only in partnership with other banks/ insurers and on a non-risk sharing basis.
3. What is the scope and activities of the Payments Bank?
As per the RBI Guidelines, the payments bank will be set up as a differentiated bank and shall be permitted to set up its own outlets such as branches, Automated Teller Machines (ATMs), Business Correspondents (BCs), etc. to undertake only certain restricted activities permitted to banks under the Banking Regulation Act, 1949, as given below: 
  • Acceptance of demand deposits, i.e., current deposits, and savings bank deposits from individuals, small businesses and other entities, as permitted. The payments bank will be restricted to holding a maximum balance of Rs. 1,00,000 per individual customer. 
  • Issuance of ATM / Debit Cards. Payments banks, however, cannot issue credit cards. 
  • Payments and remittance services through various channels including branches, Automated Teller Machines (ATMs), Business Correspondents (BCs) and mobile banking. 
  • Issuance of PPIs as per instructions issued from time to time under the PSS Act. 
  • Internet and mobile banking - The payments bank is expected to leverage technology to offer low cost banking solutions. 
  • Functioning as Business Correspondent (BC) of another bank – a payments bank may choose to become a BC of another bank, subject to the RBI guidelines on BCs. 
  • As a channel, the payments bank can accept remittances to be sent to or receive remittances from multiple banks under a payment mechanism approved by RBI, such as RTGS / NEFT / IMPS. 
  • Payments banks will be permitted to handle cross border remittance transactions in the nature of personal payments or remittances on the current account. 
  • Payments banks can undertake other non-risk sharing simple financial services activities, not requiring any commitment of their own funds, such as distribution of mutual fund units, insurance products, pension
  • products, etc. with the prior approval of the RBI and after complying with the requirements of the sectoral regulator for such products. 
The payments bank may undertake utility bill payments etc. on behalf of its customers and general public. 

Please click on this link for further details: https://rbi.org.in/scripts/bs_viewcontent.aspx?Id=2900 (RBI Guidelines)

4. Are there any restrictions on payments banks as compared to other commercial banks?
Given that their primary role is to provide payments and remittance services and demand deposit products to small businesses and low-income households, payments bank will initially be restricted to holding a maximum balance of Rs. 1,00,000 per individual customer.

Payments banks cannot issue credit cards and cannot grant loan/ credit out of their own books of accounts.

Apart from amounts maintained as Cash reserve ratio (CRR) with RBI, Payments Bank will be required to invest minimum 75 percent of its demand deposit balances in Government securities/treasury bills with maturity up to one year and hold maximum 25 percent in current and fixed deposits with other scheduled commercial banks for operational purposes and liquidity management.

The payments bank cannot set up subsidiaries to undertake non-banking financial services activities. The other financial and non-financial services activities of the promoters, if any, should be kept distinctly ring-fenced and not comingled with the banking and financial services business of the payments bank.

The payments bank will be required to use the words “Payments Bank” in its name in order to differentiate it from other banks.

5. Has this model of Post office setting up a bank worked anywhere else in the world?
Postal operators are the leading financial services providers in over 75% of the countries around the world. Some of the Post Banks in the world have been highly successful, i.e. Japan, New Zealand, Switzerland, France, China, South Korea, South Africa, Morocco to name a few.

Department of Post

6. Why is DoP setting-up a payments bank?
DoP has been successfully running the Post Office Savings Bank for the Ministry of Finance. Setting up its independently owned bank is the next logical progression. Based on feasibility studies and a subsequent Detailed Project Report, the Department, in 2013, made an application to the RBI and a proposal to the Public Investment Board (PIB) to set up a universal bank. However, the Department was advised by the PIB to set up a “differentiated bank” under the relevant guidelines. Accordingly when the RBI came up with the guidelines for licensing of Payments Banks in November 2014, the Department of Posts made an application for the same and got the in-principle approval in September 2015 for setting up its payments bank.

The setting up of the payments bank is therefore necessary in view of current market realities and to ensure continued relevance of DoP’s products and services. Among other things, the decision to set up the payments banks comes in the wake of changes in the banking and payments landscape in the country. The payments bank will ensure that the banking and payments services offered through the postal network are well integrated and completely interoperable with the rest of the banking and payments ecosystem and will leverage new age technology in line with key technological advances in the banking sector such as unified payments interface (UPI).

7. What is the GOI’s outlook on DoP’s foray into banking?
In the Union Budget of 2015-16, the Honourable Finance Minister made the following announcement:

“The Government is committed to increasing access of the people to the formal financial system. In this context, Government proposes to utilize the vast Postal network with nearly 1, 54,000 points of presence spread across the villages of the country. I hope that the Postal Department will make its proposed Payments Bank venture successful so that it contributes further to the Pradhan Mantri Jan Dhan Yojana.”

In his Independence Day speech at the Red Fort, on 15th August 2016, the Hon’ble Prime Minister Shri Narendra Modi spoke about IPPB:

“The Post Office is an example of our identity. We have revived and rejuvenated our post offices. IT is now linked with the poor and small persons. If any government representative gets the affection of a common man in India, it is the postman. Everyone loves the postman and the postman also loves everybody, but we never paid attention towards them. We have taken a step to convert our post offices into payments banks. Starting with this, the payments bank will spread the chain of banks in the villages across the country in one go”

8. How will setting up the payments bank benefit DoP?
The payments bank will not only drive revenues for DoP but also help in maintaining DoP’s brand image and relevance in the current financial landscape that is evolving rapidly. For e.g. Utility bill payments services of the IPPB as a Bharat Bill Payment Operating Unit (BBPOU) will help DoP in increasing its market share in the utility bill payments space and provide technology driven services to customers. New age technology will enhance customer experience, provide more options and help in serving the larger cause and vision of the GOI i.e. to bring about financial inclusion for the vast unbanked and underserved population.

9. What will be the role and relationship of DoP with the proposed payments bank?
The payments bank will be 100% owned by the Government of India via DoP, and will have an independent board of directors with representation from DoP and other stakeholders from within the Government of India to ensure strategic alignment with the overall objectives of the DoP and the Government of India.



The post offices at different levels will be the main customer touch points for the bank’s services. A close liaison between the bank and DoP staff at the access points will be maintained on a regular basis at the branch level for success of the delivery model .

India Post Payment Bank (IPPB)

11. How many branches are likely to be opened?
IPPB is slated to have 650 branches at district headquarters. All post offices across the country will function as customer access points for IPPB.

12. What will be the USP for IPPB?
The latest payments and banking technology, easy to use interface, the trusted network of the post office and its dedicated staff with a local connect will be the USP of the IPPB. IPPB will bring in innovative services and interface for its target customer segments in all areas. The accessibility and ease of use of services through a combination of modern technology and the widespread DoP physical network, capable of providing door step services will make it a unique payments bank. Through a combination of physical and digital channels, payments bank will build the most accessible bank in the country especially in rural and underserved areas of the country.

13. How will IPPB employees be recruited? What are the various mechanisms through which they get selected?
Various options regarding the recruitment and selection of IPPB employees have been considered. These include deputation from DoP or other public sector banks, direct recruitment through IBPS, contractual arrangements for certain skilled staff positions etc.

DoP’s role in IPPB

14. How will IPPB function?
IPPB has been set up as a Public Limited Company under the Department of Posts with an independent Board of Directors. It will be headed by a Managing Director and CEO, and will set up a corporate head quarter and approx. 650 branches to manage its functions on a day to day basis. IPPB will leverage the physical and IT infrastructure of the Post office and be set up on a lean operating model. It will focus on low-cost, low-risk, technology led solutions to extend access to formal banking.

Products and Services

15. How will the products and services of IPPB be different from DoP’s payment and remittance products?
DoP payments and remittances products are based on the basic money order services adapted for the digital age. While IPPB will provide the same benefits of payments and remittances to the customers, by adopting newer, efficient processes and technologies such as mobile based payments, digital wallets and innovative payment and remittance products that are continuously emerging in the market today. Combined with doorstep banking transactions and easy to use mobile and internet banking options IPPB will significantly improve accessibility of its services. Additionally, IPPB products will be well integrated and inter-operable with the rest of the banking industry.

IPPB will drive the benefits of financial inclusion by bringing a host of financial products to suit the needs of different strata of society with special focus on the marginalized sections and citizens in rural areas.

Product innovation will be a continuous exercise to expand the bouquet of services adapting to the evolving needs of its customers technologies and the rapid advancements in communication and payments

16. Will there be an impact on POSB?
Apart from savings account with up to INR 1,00,000 in deposit, the products offered by IPPB are different from POSB products. POSB savings accounts do not have any ceiling limit unlike payments bank savings account. On the other hand payments banks can offer current accounts for use by businesses and institutions whereas POSB does not offer these accounts. Other kinds of deposits under POSB are unique to it and will not be on offered by the payments bank. POSB accounts are mainly savings instruments.

Simply put while POSB is more focussed on returns from small savings, IPPB will be focussed on transactions. Thus there will be an inherent synergy between the two and each will complement the other.

17. How will IPPB improve disbursement of subsidies?
IPPB is being set up by the GoI with a primary focus of improving the Direct Benefit Transfer of various subsidies. IPPB will be providing a robust technology platform for DBT disbursements and build a strong reporting mechanism. By channelling a majority of subsidy disbursements through its combined network, DoP-IPPB combine will significantly increase its current market share.

Customers

18. Who will be the target customer of IPPB?
Apart from the existing customers of the DoP, IPPB will focus on the underbanked and unbanked population in different parts of the country. It will also try to target services for MSMEs, senior citizens, students, migrant population, low income households, unorganized sector and other groups with special service requirements.

19. How will the customer choose between the savings account of POSB and IPPB?
Both POSB and IPPB will have different branding and the product features will be quite different. At time of signing up, customers will be clearly told what the product features are and customers will be able to choose the product of their choice.

Given the difference in purpose of the two accounts, the POSB customers can be encouraged to open an IPPB account for managing their fund flow including bill payments, remittances to other family members, businesses etc. depending on their needs. Customers focusing on savings may prefer to have their deposits with POSB and transact through their IPPB account as per requirements.

Customers will be given the option to channel money from their IPPB accounts to any of the POSB schemes. For example, an IPPB customer will be able to use money in his account to open and service a RD/ TD/ SSY or any other POSB account. Thus both IPPB and POSB can synergistically serve the customers.

Overall

20. I would like to know more and contribute to the IPPB journey. How can I do that?
You can send your questions and suggestions to pbi-project(at)gov.in or call us at +91 11 23096008 and check for regular updates on https://www.facebook.com/ippbonline/ and http://utilities.cept.gov.in/dop.

Courtesy: IPPB

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