Tuesday, November 29, 2016
Search for higher rates ends at post offices, govt bonds
MUMBAI: Investors are rushing to lock money into post office deposits and a government bond, which are yet to cut interest rates even as banks lower deposit rates.A bank deposit now pays a maximum of 7%, while post office deposits pay 7.8% and the government bond pays 8%.
"There is a rush amongst investors to lock into longer-tenure products and where there is no announcement of rate cuts so far," said Vikram Dalal, managing director, Synergee Capital.
For retirees and other investors living on interest income from deposits, financial advisors said, the government savings bonds, which have a tenure of six years for small investors, make sense.
"There is no reinvestment risk as you can lock in at a rate as high as 8% for 6 years. It works well for those whose income is not subject to tax or who are in the marginal tax bracket," said Dalal. The minimum investments amount is Rs 1,000 and there is no ceiling on the upper limit. The bonds are issued in physical form.
"The only drawback of this product is that it is illiquid since they are not traded and cannot be encashed in an emergency.However, investors can opt to take a loan on this product, says Anup Bhaiya, MD, Money Honey Financial Services.
Interest rates on bank fixed deposits fell post demonetisation. Banks like SBI, ICICI Bank,HDFC Bank, Kotak Bank have all cut fixed deposit rates by 15-25 basis points (100 basis points is equivalent to 1%).
Post the rate cuts, a five year fixed de posit fixed de posit from State bank of Indiafetches 6.5%, while HDFC Bank gives 6.75%. Taking a cue from banks, finance companies too have lowered deposit rates. HDFC now offers 7.65% for a five-year deposit, whileGruh Finance is offering 7.5%.
"The banking system is flush with liquidityand there are not enough avenues to deploy money .Given this and expected rate cuts, fixed deposit rates could head even lower in the coming months," says Shankar S, financial planner at Credo Capital.
"There is a rush amongst investors to lock into longer-tenure products and where there is no announcement of rate cuts so far," said Vikram Dalal, managing director, Synergee Capital.
For retirees and other investors living on interest income from deposits, financial advisors said, the government savings bonds, which have a tenure of six years for small investors, make sense.
"There is no reinvestment risk as you can lock in at a rate as high as 8% for 6 years. It works well for those whose income is not subject to tax or who are in the marginal tax bracket," said Dalal. The minimum investments amount is Rs 1,000 and there is no ceiling on the upper limit. The bonds are issued in physical form.
"The only drawback of this product is that it is illiquid since they are not traded and cannot be encashed in an emergency.However, investors can opt to take a loan on this product, says Anup Bhaiya, MD, Money Honey Financial Services.
Interest rates on bank fixed deposits fell post demonetisation. Banks like SBI, ICICI Bank,HDFC Bank, Kotak Bank have all cut fixed deposit rates by 15-25 basis points (100 basis points is equivalent to 1%).
Post the rate cuts, a five year fixed de posit fixed de posit from State bank of Indiafetches 6.5%, while HDFC Bank gives 6.75%. Taking a cue from banks, finance companies too have lowered deposit rates. HDFC now offers 7.65% for a five-year deposit, whileGruh Finance is offering 7.5%.
"The banking system is flush with liquidityand there are not enough avenues to deploy money .Given this and expected rate cuts, fixed deposit rates could head even lower in the coming months," says Shankar S, financial planner at Credo Capital.
Source : The Economic Times
Friday, November 25, 2016
7th Pay Commission: Higher allowances from January
7th Pay Commission: Higher allowances from January
New Delhi: The central government employees to get their higher allowances under the 7th Pay Commission recommendations from January next, the top Finance Ministry sources told today.
When asked whether the arrears would be paid too, they said, “Higher allowances will be paid with retrospective effect from August 2016 but the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016.”
“The central government employees unions wanted that House Rent Allowance (HRA) be fixed at range 10, 20 and 30 per cent of the basic linked to the classification of the town of posting when the Pay commission recommended 24%, 16% and 8% respectively of new pay matrix, the union also asked to enhance children education allowance of Rs 3,000 and hostel subsidy of Rs 10,000 with tax exempt.” the sources said.
The union also demanded inclusion of post-graduate and professional courses in children education allowance and to hike the ‘Fixed Medical Allowance’ to Rs 2,000 with Dearness Allowance Indexation,” they added.
The unions put their demands before the Committee on Allowances headed by Finance Secretary Ashok Lavasa, which met last Thursday.
The Union Cabinet cleared the recommendations of 7th Pay Commission in respect of the hike in basic pay and pension on June 29 but decision on its suggestions relating to allowances has been referred to the Committee on allowances as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. So, there was resentment among employees over suggestions to scrap some allowances.
Fearing a jump in footfalls to deposit or withdraw cash following the demonetisation of Rs 500 and 1,000 banknotes, the Finance Ministry is likely to scale down the the higher allowances proposal.
“As people continue to suffer after demonetisation from November 9 on account of cash crunch, the Finance Minister Arun Jaitley compels to keep in abeyance the higher allowances till things normalize and it is likely to implement from January next,” Finance Ministry sources revealed.
Until acceptance of higher allowances, the allowances are now paid according to the 6th Pay Commission recommendations.
TST
New Delhi: The central government employees to get their higher allowances under the 7th Pay Commission recommendations from January next, the top Finance Ministry sources told today.
When asked whether the arrears would be paid too, they said, “Higher allowances will be paid with retrospective effect from August 2016 but the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016.”
“The central government employees unions wanted that House Rent Allowance (HRA) be fixed at range 10, 20 and 30 per cent of the basic linked to the classification of the town of posting when the Pay commission recommended 24%, 16% and 8% respectively of new pay matrix, the union also asked to enhance children education allowance of Rs 3,000 and hostel subsidy of Rs 10,000 with tax exempt.” the sources said.
The union also demanded inclusion of post-graduate and professional courses in children education allowance and to hike the ‘Fixed Medical Allowance’ to Rs 2,000 with Dearness Allowance Indexation,” they added.
The unions put their demands before the Committee on Allowances headed by Finance Secretary Ashok Lavasa, which met last Thursday.
The Union Cabinet cleared the recommendations of 7th Pay Commission in respect of the hike in basic pay and pension on June 29 but decision on its suggestions relating to allowances has been referred to the Committee on allowances as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. So, there was resentment among employees over suggestions to scrap some allowances.
Fearing a jump in footfalls to deposit or withdraw cash following the demonetisation of Rs 500 and 1,000 banknotes, the Finance Ministry is likely to scale down the the higher allowances proposal.
“As people continue to suffer after demonetisation from November 9 on account of cash crunch, the Finance Minister Arun Jaitley compels to keep in abeyance the higher allowances till things normalize and it is likely to implement from January next,” Finance Ministry sources revealed.
Until acceptance of higher allowances, the allowances are now paid according to the 6th Pay Commission recommendations.
TST
Wednesday, November 23, 2016
SB Order No : 13/2016 dated 23.11.2016 regarding acceptance of WOS currency notes in Post Office Saving Bank Accounts
SB Order No : 13/2016 dated 23.11.2016 regarding acceptance of WOS currency notes in Post Office Saving Bank Account only and not in other accounts like RD, TD, MIS, SSA, SCSS, PPF, KVP, NSC etc.
Tuesday, November 22, 2016
Monday, November 21, 2016
Abolition of Overtime Allowance in 7th Pay Commission: Fin Min's statement in Lok Sabha
UNSTARRED QUESTION NO: 492
ANSWERED ON: 18.11.2016
Abolition of Overtime Allowance
G. HARI
Will the Minister of
FINANCE be pleased to state:-
(a) whether the expenditure on overtime allowance provided to Government employees had increased from Rs.797 crore to Rs.1629 crore during 2012-13 and if so, the details thereof; and
(b) whether the Government is considering to abolish overtime allowance in Government offices and if so, the details thereof?
ANSWER
MINISTER OF STATE FOR FINANCE (EXPENDITURE)
(SHRI ARJUN RAM MEGHWAL)
(a) Yes Sir. The expenditure of Rs.796.90 crore in 2006-07 was excluding the expenditure on overtime allowance in respect of employees of Union Territories whereas the expenditure of Rs. 1629.02 crore during year 2012-13 is including the expenditure in respect of employees of Union Territories.
(b) The Seventh Central Pay Commission has recommended to abolish OTA (except for operational staff and industrial employees who are governed by statutory provisions) and in case the Government decides to continue with OTA for those categories of staff for which it is not a statutory requirement, then the rates of OTA for such staff should be increased by 50 percent from their current levels. Recommendation of the 7th CPC on allowances are yet to be finalised.
Source: http://164.100.47.190/loksabhaquestions/annex/10/AU492.pdf
Complaints against Seventh Central Pay Commission: Lok Sabha Q&A
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO: 586
ANSWERED ON: 18.11.2016
Complaints against Seventh Central Pay Commission
ANTO ANTONY
Will the Minister of FINANCE be pleased to state:-
(a) whether the Government has received complaints against the implementation of Seventh Central Pay Commission''s recommendations especially from the Armed Forces and Nurses;
(b) if so, the details thereof and the response of the Government thereon; and
(c) whether the Government has any plan to review the said recommendations pertain to Armed Forces and Nurses and if so, the details thereof?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI ARJUN RAM MEGHWAL)
(a) to (c): Representations have been received from various quarters some of which pertain to Armed Forces and Nurses. While approving the recommendations of the 7th Central Pay Commission on pay, pension and other related issues, the Government has set up various Committees to examine and address some of the issues arising out of implementation of Commission’s recommendations. Based on the recommendations of these Committees on these issues, appropriate decisions will be taken by the Government.
Source: http://164.100.47.190/loksabhaquestions/annex/10/AU586.pdf
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO: 586
ANSWERED ON: 18.11.2016
Complaints against Seventh Central Pay Commission
ANTO ANTONY
Will the Minister of FINANCE be pleased to state:-
(a) whether the Government has received complaints against the implementation of Seventh Central Pay Commission''s recommendations especially from the Armed Forces and Nurses;
(b) if so, the details thereof and the response of the Government thereon; and
(c) whether the Government has any plan to review the said recommendations pertain to Armed Forces and Nurses and if so, the details thereof?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI ARJUN RAM MEGHWAL)
(a) to (c): Representations have been received from various quarters some of which pertain to Armed Forces and Nurses. While approving the recommendations of the 7th Central Pay Commission on pay, pension and other related issues, the Government has set up various Committees to examine and address some of the issues arising out of implementation of Commission’s recommendations. Based on the recommendations of these Committees on these issues, appropriate decisions will be taken by the Government.
Source: http://164.100.47.190/loksabhaquestions/annex/10/AU586.pdf
Official eMail IDs allotted to all Post Offices in Phulbani Division in INDIA POST domain
Office | Office Email Ids |
B N Pur | biranarasinghpurso@indiapost.gov.in |
Baghiabahal | baghiabahalso@indiapost.gov.in |
Balliguda | balligudaso@indiapost.gov.in |
Bamunigaon | bamunigaonkandhamalso@indiapost.gov.in |
Barakhama | barakhamaso@indiapost.gov.in |
Boudhbazar | boudhbazarso@indiapost.gov.in |
BoudhCourt | boudhcourtso@indiapost.gov.in |
Boudhraj | boudhrajso@indiapost.gov.in |
Bounsoni | bounsoniso@indiapost.gov.in |
C/S Udayagiri | courtstreegduaygisiso@indiapost.gov.in |
Chakapada | chakapadaso@indiapost.gov.in |
Contractorpada | contractorpadaso@indiapost.gov.in |
Daringbadiso | daringbadiso@indiapost.gov.in |
Ghantapada | ghantapadaso@indiapost.gov.in |
Gudayagiri | gudayagiriso@indiapost.gov.in |
Gumagarh | gumagarhso@indiapost.gov.in |
Harabhanga | harabhangaso@indiapost.gov.in |
Jhadrajing | jhadrajingso@indiapost.gov.in |
Kalinga | kalingaso@indiapost.gov.in |
Kantamal | kantamalso@indiapost.gov.in |
Khajuripada | khajuripadaso@indiapost.gov.in |
Kothagarh | kothagarhso@indiapost.gov.in |
Kurtamgarh | kurtamgarhso@indiapost.gov.in |
Linepada | linepadaso@indiapost.gov.in |
Madikunda | madikundaso@indiapost.gov.in |
Mallisahi | mallisahiso@indiapost.gov.in |
Manamunda | manamundaso@indiapost.gov.in |
Masterpada | masterpadaso@indiapost.gov.in |
Nuagaon | nuagaonkandhamalso@indiapost.gov.in |
Nuasahi | nuasahiso@indiapost.gov.in |
O B Nagar | ollenbatchnagarso@indiapost.gov.in |
Paburia | paburiaso@indiapost.gov.in |
Penjisahi | penjisahitpo1135so@indiapost.gov.in |
Phiringia | phiringiaso@indiapost.gov.in |
Phulbani | phulbaniho@indiapost.gov.in |
PhulbaniBazar | phulbanibazarso@indiapost.gov.in |
Purunakatak | purunakatakso@indiapost.gov.in |
Raikia | raikiaso@indiapost.gov.in |
Sankarakhole | sankarakholeso@indiapost.gov.in |
Sarangada | sarangadaso@indiapost.gov.in |
Sarsara | sarsaraso@indiapost.gov.in |
Tikabali | tikabaliso@indiapost.gov.in |
Tumudibandha | tumudibandhaso@indiapost.gov.in |
Saturday, November 19, 2016
No exchange of notes for other-bank customers today (20/11/2016) ; senior citizens exempted
NEW DELHI: Indian Banks' Association on Friday said that all banks will serve only their respective customers tomorrow and will not exchange the old Rs 500 and Rs 1,000 notes from customers of other banks.
"All these days our own customers have suffered because we have not been able to do their work. So, we have seen lot of pending work at branches especially for our existing customers. We, from IBA, have taken a view that tomorrow, that is, on Saturday, we shall be exclusively doing work for our own customers. And tomorrow we will not be doing exchange of notes (for outside customers)," IBA chairman Rajeev Rishi said.
He, however, said senior citizens are exempted and they can go to any bank branch to exchange notes tomorrow.
The IBA decision is only for Saturday and from Monday onwards all customers will be allowed to exchange notes at a branch of any bank.
Commenting on the recent introduction of indelible ink marks on index fingers of those exchanging notes, Rajiv said, "Using indelible ink reduced queues substantially, it has come down to 40% of what it was initially".
Since Wednesday, banks have started applying indelible ink mark on the right hand index finger of customers in the select metro cities to stop repeat money exchangers thronging banks with invalid currency notes.
Earlier today, the government had warned that those who have allowed others to deposit money in their bank accounts, will be prosecuted for abetment under the Income Tax Act.
The finance ministry's directive comes against the backdrop of reports that some are using other persons' bank accounts to convert their black money into new denomination notes. If it is established that the money deposited in bank account does not belong to the account holder, it would be subject to tax, interest and 200 per cent penalty.
Since Prime Minister Narendra Modi's surprise announcement on November 8 to demonetise higher denomination notes of Rs 500 and Rs 1,000, banks and ATMs across the country have been witnessing serpentine queues to exchange now-invalid currency notes. Last week, banks across the country were open on both Saturday and Sunday to help the sudden currency crisis in the economy.
On Thursday, the government halved the limit of exchange of defunct notes to Rs 2,000. With effect from today, individuals can exchange invalid 500 and 1,000 rupee notes totalling Rs 2,000, as against Rs 4,500 earlier, till December 30
Source : http://timesofindia.indiatimes.com
"All these days our own customers have suffered because we have not been able to do their work. So, we have seen lot of pending work at branches especially for our existing customers. We, from IBA, have taken a view that tomorrow, that is, on Saturday, we shall be exclusively doing work for our own customers. And tomorrow we will not be doing exchange of notes (for outside customers)," IBA chairman Rajeev Rishi said.
He, however, said senior citizens are exempted and they can go to any bank branch to exchange notes tomorrow.
The IBA decision is only for Saturday and from Monday onwards all customers will be allowed to exchange notes at a branch of any bank.
Commenting on the recent introduction of indelible ink marks on index fingers of those exchanging notes, Rajiv said, "Using indelible ink reduced queues substantially, it has come down to 40% of what it was initially".
Since Wednesday, banks have started applying indelible ink mark on the right hand index finger of customers in the select metro cities to stop repeat money exchangers thronging banks with invalid currency notes.
Earlier today, the government had warned that those who have allowed others to deposit money in their bank accounts, will be prosecuted for abetment under the Income Tax Act.
The finance ministry's directive comes against the backdrop of reports that some are using other persons' bank accounts to convert their black money into new denomination notes. If it is established that the money deposited in bank account does not belong to the account holder, it would be subject to tax, interest and 200 per cent penalty.
Since Prime Minister Narendra Modi's surprise announcement on November 8 to demonetise higher denomination notes of Rs 500 and Rs 1,000, banks and ATMs across the country have been witnessing serpentine queues to exchange now-invalid currency notes. Last week, banks across the country were open on both Saturday and Sunday to help the sudden currency crisis in the economy.
On Thursday, the government halved the limit of exchange of defunct notes to Rs 2,000. With effect from today, individuals can exchange invalid 500 and 1,000 rupee notes totalling Rs 2,000, as against Rs 4,500 earlier, till December 30
Source : http://timesofindia.indiatimes.com
Post Offices will be closed on Sunday (20.11.2016) in c/w exchange of WOS Notes
Post Offices will be closed on Sunday (20.11.2016) in c/w exchange of WOS Notes
Regarding Opening of Post Offices on Sunday (20.11.2016) for exchange of WOS Notes
I am directed to inform that the coming Sunday i.e. 20.11.2016 will not be a working day for the post offices. Instructions may be issued to all concerned.
With regards,
Sachin Kishore
Director (CBS)
Sansad Marg,
Dak Bhavan
SALARY ADVANCE IN CASH. NO OPTION REQUIRED FOR CASH PAYMENT
SALARY ADVANCE IN CASH. NO OPTION REQUIRED FOR CASH PAYMENT
Please Read para 2 of Fin. Min. OM – “In case no option is received by the said date, it will be presumed that the employees has opted for cash pay-out and payment thereof will be disbursed in cash accordingly”.
Please Read para 2 of Fin. Min. OM – “In case no option is received by the said date, it will be presumed that the employees has opted for cash pay-out and payment thereof will be disbursed in cash accordingly”.
Meeting of the Committee on Allowances - NC JCM Staff Side
Meeting of the Committee on Allowances - NC JCM Staff Side
Today there had been a crucial meeting of the Committee on Allowances. They may finalize all the allowances in today’s meeting itself or some of them. This is just for your information. Further details shall be sent to you, once the same is available with us..
Source: http://ncjcmstaffside.com
Today there had been a crucial meeting of the Committee on Allowances. They may finalize all the allowances in today’s meeting itself or some of them. This is just for your information. Further details shall be sent to you, once the same is available with us..
Source: http://ncjcmstaffside.com
Post Offices rising up to the challenge
Hyderabad, November 17:
The once ubiquitous Post Office, which has been fast receding in public mindspace in recent years, was pitchforked onto the centre on November 8, when the Prime Minister announced measures to demonetise.
Along with the expanding banking sector with its lakhs of branches and ATMs, the Post Offices, which number around 1.2 lakh in the country, with another 30,000 branch offices, were also asked to meet the gigantic challenge of exchange of ₹500 and ₹1,000 notes.
A week later, a visit to a few Post Offices bore typical scenes of long queues and cash exhaustion within a few hours of opening, in addition to shortage of staff. However, in Telangana, with a network of 4,961 post offices, an average transaction of ₹80 crore in currency exchange has been taking place, according to official sources.
According to Ravinder, an agent vending postal services and products, there has been tremendous pressure on the branches to exchange currency. The bigger offices are exchanging around ₹60-80 lakh per day.
“In the face of limited amount of cash, we are using our vehicles to get the money and doing the exchange for a few hours and deploying additional staff by drawing on retired employees as well,” said the Director (Postal Services) V Upender of the Office of the Post Master General, Hyderabad.
The Postal Department is using its MIS system to track the all India transactions through control rooms set up across the country on a daily basis. In Hyderabad alone, seven Head POs and 200 branch POs are involved in the operations since November 9.
However, the role of the POs is limited for such a large scale operation as most of them do not have ‘safe room’ to secure the currency and are also not well-equipped. They have also not been given the wherewithal to handle currency exchange. This problem is stark in rural areas where the Postal Department has a good network, says B Yerram Raju a veteran banker.
Source : http://www.thehindubusinessline.com
Thursday, November 17, 2016
Govt. allowed central staff to draw upto Rs 10 thousand in cash as advance salary
The government has allowed its Group C employees, including from PSUs, defence and railways, to get salaries up to Rs 10,000 in cash in advance which will be adjusted against their November salary. "It is expected that this will relief pressure on banks, - Economic Affairs Secretary Shaktikanta Das A number of measures also announced such as, Farmers may withdraw cash upto Rs 50 thousand.
New Delhi, Nov 17 (PTI) With cash crunch following demonetisation impacting agri sector, the government today eased guidelines for farmers by allowing them to withdraw up to Rs 50,000 cash per week from bank.
Besides, it has also extended the deadline for payment of crop insurance premium by 15 days and permitted APMC-registered traders to withdraw up to Rs 50,000 per week.
This steps will ensure that sowing takes place adequately in the Rabi season and enough cash is available to the farmers to buy fertiliser, seeds and other inputs, Economic Affairs Secretary Shaktikanta Das told reporters here.
"The government has decided to permit the farmers to draw up to Rs 25,000 per week against the crop loan sanctioned and credited to their accounts, subject to the limits...and this will also apply to Kisan Credit Cards," he said.
These accounts have to be in the name of the concerned farmers, the accounts will have to be KYC compliant, Das said.
Besides, if the farmers receive payments either by way of cheques or RTGS into the bank accounts, they can withdraw up to Rs 25,000 per week, Das said.
Similarly, the registered traders with the Agricultural Produce Marketing Committee (APMC) markets also will be permitted to draw Rs 50,000 per week to meet various cash requirements like payment of wages to workers and other sundry expenses.
"So, this will facilitate smooth procurement process and help farmers to sell their produce without any difficulty," Das said.
The government has also allowed its Group C employees, including from PSUs, defence and railways, to get salaries up to Rs 10,000 in cash in advance which will be adjusted against their November salary. "It is expected that this will relief pressure on banks," Das said.
Following the demonetisation of 500 and 1,000 rupee notes on November 8 by Prime Minister Narendra Modi, the government allowed withdrawal of up to Rs 24,000 per week per person through cheque and Rs 2,500 from ATMs
New Delhi, Nov 17 (PTI) With cash crunch following demonetisation impacting agri sector, the government today eased guidelines for farmers by allowing them to withdraw up to Rs 50,000 cash per week from bank.
Besides, it has also extended the deadline for payment of crop insurance premium by 15 days and permitted APMC-registered traders to withdraw up to Rs 50,000 per week.
This steps will ensure that sowing takes place adequately in the Rabi season and enough cash is available to the farmers to buy fertiliser, seeds and other inputs, Economic Affairs Secretary Shaktikanta Das told reporters here.
"The government has decided to permit the farmers to draw up to Rs 25,000 per week against the crop loan sanctioned and credited to their accounts, subject to the limits...and this will also apply to Kisan Credit Cards," he said.
These accounts have to be in the name of the concerned farmers, the accounts will have to be KYC compliant, Das said.
Besides, if the farmers receive payments either by way of cheques or RTGS into the bank accounts, they can withdraw up to Rs 25,000 per week, Das said.
Similarly, the registered traders with the Agricultural Produce Marketing Committee (APMC) markets also will be permitted to draw Rs 50,000 per week to meet various cash requirements like payment of wages to workers and other sundry expenses.
"So, this will facilitate smooth procurement process and help farmers to sell their produce without any difficulty," Das said.
The government has also allowed its Group C employees, including from PSUs, defence and railways, to get salaries up to Rs 10,000 in cash in advance which will be adjusted against their November salary. "It is expected that this will relief pressure on banks," Das said.
Following the demonetisation of 500 and 1,000 rupee notes on November 8 by Prime Minister Narendra Modi, the government allowed withdrawal of up to Rs 24,000 per week per person through cheque and Rs 2,500 from ATMs
Exchange of Cash limit reduced to Rs 2,000 from tomorrow (17.11.2016)
NEW DELHI: The government today revised certain guidelines for the withdrawal of cash, limiting counter exchange of old Rs 500, Rs 1,000 notes from Rs 4,500 to Rs 2000 starting from tomorrow.
Government also allowed farmers to draw money from banks against loans sanctioned to them to buy seeds and fertilisers in the ongoing sowing season, as it responds to criticism against the move to cancel high-value rupee bills.
Farmers will be able to withdraw up to 25,000 rupees per week against their crop loans, Economic Affairs Secretary Shaktikanta Das told reporters, adding the time limit to pay crop insurance premiums has also been extended by 15 days.
Millions of Indian farmers, however, have no bank accounts and depend on local moneylenders to fund sowing.
"One member of the family, be it father or mother can withdraw upto Rs 2.5 lakhs for a wedding," said Das.
Key takeaways from the conference:
- Government has decided that time limit in crop insurance premium cases will be extended by 15 days.
- Government decides that farmers can withdraw Rs 25000 per week from a/c where farmers receive either by cheque or which is credited by RTGS.
- For wedding ceremonies, upto Rs 2.5 lakh can be withdrawn from the bank account which is KYC compliant.
- For over the counter exchange of old Rs 500/1000 notes, with effect from Nov 18, Rs 4,500 limit will be reduced to Rs 2000 from tomorrow.
- One member of the family, be it father or mother can withdraw upto Rs 2.5 lakhs for a wedding.
- Task Force held a meeting and a road map has been formed to re-calibrate all ATMs; sure that it will be done soon.
- Central government employees up to Group 'C' can draw salary advance up to Rs 10,000 in cash that'll be adjusted against their November salaries.
- Kisan Credit Cards will be subject to same new limit.
- There is enough cash available with Govt, no cash crunch.
- Currency printing presses operating at over 100 per cent capacity.
- Mandi traders can withdraw upto Rs 50,000 per week.
Don't need ID copies to exchange old currency notes, says Reserve Bank of India
Don't need ID copies to exchange old currency notes, says Reserve Bank of India
NEW DELHI: The Reserve Bank of India and head offices of most commercial banks have not asked banks to collect photocopies of customers' identities for exchange of old currency notes.
NEW DELHI: The Reserve Bank of India and head offices of most commercial banks have not asked banks to collect photocopies of customers' identities for exchange of old currency notes.
In an email to TOI , RBI said that its guidelines only require customers to present and show valid proof, the photocopies are not required. A senior official of the State Bank of India confirmed the same: "The bank only needs details and numbers on the requisition slip which the teller will match with entries in a document," he said.
Yet most bank branches, including several of SBI , have been insisting on photocopies, which has added to lengthening of queues at the branches. Some branches have offered to copy the document in the branch when customers turn up with only the original copy of their identity.
A few banks are having a dual approach. "While other banks might ask customers, coming to exchange money to submit photocopies, we are not doing so. For our bank customers we already have their KYC details, so there is no point in asking them for identification or proof again," said A Vidyasagar, COO, Lakshmi Vilas Bank. "For non-bank customers we do get photocopies, but we ask them to sign their names with date, purpose and bank branch," he added.
The gazette notification withdrawing the old high denomination notes from circulation issued on November 8 had said that people can exchange notes at any bank by submitting a requisition slip and proof of identity.
Source : TOI
Banks, Post offices to report cash deposits of over Rs 2.5 lakh to ITD
The government has asked banks and post offices to report to the I-T Department all deposits above Rs 2.50 lakh in savings accounts, and more than Rs 12.50 lakh in current accounts, made during the 50-day window provided to tender the scrapped 500 and 1000 rupee notes.
As per a notification issued today, banks, co-operative banks and post offices will have to report to the tax department cash deposits exceeding Rs 50,000 in a single day or aggregating to more than Rs 2.5 lakh during the period November 9, to December 30, 2016.
These entities will also have to report cash deposits during the period aggregating to Rs 12.50 lakh or more, in one or more current account of a person.
The Finance Ministry has notified the amended Rule for filing of Annual Information Return (AIR) report by banking company, cooperative bank and post offices on account of aggregate cash deposits in one or more current account of a person.
Banks and post offices now have to file a statement of financial transaction in respect of these transactions on or before January 31, 2017, the notification said.
Earlier, they were required to report to the I-T Department only when cash deposits in an account exceeded Rs 10 lakh in one full year.
In view of apprehensions that large number of illegal or black money may sought to be converted into white during the window provided till December 30, the Revenue Department has issued fresh set of instructions.
In a major assault on black money, counterfeit notes and terror financing, Prime Minister Narendra Modi had on November 8 announced demonetisation of high value currency notes of Rs 1000/500 and asked the public to deposit them in banks by December 30.
Since then, seemingly unending queues of people trying to deposit and exchange their scrapped currency notes are being witnesses at banks and post offices.
Tax department officers are of the view that the 50-day window provided to people to deposit or exchange notes should not be misused and hence the need to keep a tab on such high value deposits.
Those depositing large amounts of unaccounted money will have to face the consequences under tax laws, which provide for a 30 per cent tax, 12 per cent interest and a 200 per cent penalty.
"CBDT has brought two-fold amendment casting a reporting responsibility on the taxpayer as well as the bank, thereby ensuring that bank doesn't let go off the non-compliant taxpayers," Nangia & Co Managing Partner Rakesh Nangia said.
Source : The Economic Times
Demonetisation: Now, PAN required if combined cash deposits exceed Rs 2.5 lakh till December 30
The government has announced a new rule to prevent people from making multiple cash deposits in their bank accounts without quoting the PAN. Till now, the limit for cash deposit without PAN was Rs 50,000 per transaction. A lot of people were depositing less than Rs 50,000 per day to escape the PAN provision. But a circular issued on Tuesday says deposits made between 9 Nov and 30 Dec 2016 will require a PAN if the combined sum exceeds Rs 2.5 lakh. This clarifies the misconception that one can deposit cash in multiple batches of less than Rs 50,000 each and escape mentioning the PAN.
The CBDT has also made changes in the (AIR) Annual Information Return rules. Till now, banks and post office branches were supposed to report to the tax department if an individual made cash deposits of Rs 10 lakh in a year. During the period 9 November to 30 December, this limit has been lowered to Rs 2.5 lakh.If the cash deposits exceed this limit, the bank or post office will automatically report it to the tax department. For current accounts, the threshold limit for cash deposits between 9 November and 30 December will be Rs 12.5 lakh.
The rule applies to all bank accounts of the individual, though it is not clear how banks will be able to capture information of cash deposited in other bank accounts.
Source : The Economic Times
Commemorative Postage Stamp released on Children's Day
Department has released two two beautiful commemorative postage stamps, miniature sheet and first day cover on the occasion of Children's Day on 14th November 2016. Stamps are selected from the best drawings prepared by children during the competition held in this year. The theme of the drawing was given 'PICNIC'.
Normalcy restored in Dhenkanal Division after the Superintendent was relieved
First of all, we would like to sincerely congratulate the unity shown by the staff members of Dhenkanal Division irrespective of wing and cadre against their arrogant officiating superintendent who had been continuously harassing and misbehaving the staff members including the women employees since the vary day of his posting.
The determination registered by each militant member of the Division continuously for more than 24 hours against the inhumane activities of the Superintendent is highly praise worthy. All the 54 post offices including 2 H Os remained non-functional on 16.12.2016.
In the first hour on 16.11.2016, Com. R C Mishra, Circle Secretary and Com. B Samal, Vice-President, AIPEU, Group-C, Odisha Circle discussed the matter with Sri Ashok Rath, Asst. Director (SB) and Dr. S K Kamila, Chief PMG in Circle Office and intimated the whole position with demand to immediately transfer Sri B M Das Mohapatra, Supdt., Dhenkanal Division so that the agitation may cease. In addition we also demanded that since Sri Das Mohapatra lacks managerial capability to work for the public which resulted in paralysation of the Division at a time when the Department of Posts is fully involved in the demonetization process and members of public are put into untold sufferings for exchange and deposit of WOS banknotes, he should not be posted anymore as Divisional head.
The Chief PMG told that he had entrusted the work to the Regional PMG, Samablpur for taking necessary action and assured that all feasible measures will be taken after conducting an impartial inquiry. We requested the Chief PMG to ask the PMG to move to the spot for immediate solution. We also tried to contact the PMG, Sambalpur, whose mobile was found switched off. Later we came to know that he was busy in the District Level Philatelic Exhibition organized by Keonjhar Division. As informed by the Chief PMG, Sri Das Mohapatra begged apology to the agitated mass without any result.
We failed to realize the stand of the administration that when the Divisional as a whole has been paralyzed with closure of all the post offices and all staff members of the Division are on agitation since yesterday, how it was not felt necessary by the administration to move to the spot and speak to the agitated employees.
However, Com. R C Mishra, Circle Secretary and Com. B Samal, Vice-President, AIPEU, Group-C, Odisha Circle proceeded to the spot accompanied with Com. Pramod Kumar Pattnaik and Lingaraj Sahoo, President and Vice-President of Bhubaneswar Division and Com. Bishnu Prasad Das, Circle Financial Secretary.
The situation was quite tensed with agitated employees of all the entire Division, police and members of public. We interacted many employees. As experienced, not a single member is satisfied with the nature, body-language, work-culture and above all with mind-set of Sri Das Mohapatra. A Britishraj is almost going on. As opined, Sri Das Mohapatra even never speaks politely to his fellow workers. “Do you know me?’, “I will see you.”, “I will charge-sheet you.” are some of the common dialogues he uses time and again. Full dictatorship ! we were surprised how these employees are tolerating such misbehaviour till date. The present situation was nothing but the outcome of supressed anger of the staff members. The whole situation was intimated to Sri Ashok Rath, Asst. Director (SB) and Dr. S K Kamila, Chief PMG in Circle Office over telephone along with the determination of the employees to continue with the dharana until Sri Das Mohapatra is relieved from Dhenkanal Division. A joint memorandum in this regard was also forwarded to the Chief PMG, Odisha Circle by the Divisional leadership of NFPE and FNPO.
Realizing the public inconvenience for exchange of WOS banknotes, the leadership of Dhenkanal Division agreed to open one exchange counter in Dhenkanal HO on the appeal of District administration.
At last, with the kind intervention of the Chief PMG, Odisha Circle, Sri Das Mohapatra was relieved handing over charge to one ASPOs. The Chief PMG assured our Circle Secretary over phone that said Sri Das Mohapatra will not be posted back again to Dhenkanal Division and the placement committee will decide his subsequent posting.
Thus, after getting the above assurance from the Chief PMG, Odisha Circle through our Circle Secretary and considering the gravity of current situation due to demonetization, it was decided by the Divisional leadership of Dhenkanal Division to bring a stop to the agitation after Sri Das Mohapatra was relieved with heavy police escort.
As known, a press statement was released later in late night and the offices in Dhenakanl Division are functioning as usual today (17.11.2016)
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