Admn order invites CAT ire

Express News Service Posted online: Fri Oct 29 2010, 03:48 hrs

Chandigarh : The Central Administrative Tribunal (CAT), Chandigarh, has expressed anguish on the orders being passed by the Chandigarh Administration in terms of administration. Dismissing an application filed by one Narinder Kumar, resident of Sector 37-A, Chandigarh, who had sought promotion to the post of Head of Department in Institute of Polytechnic, a division bench comprising Justice (retd) S D Anand (judicial member) and Khushi Ram (administrative member of the Tribunal) held the application was devoid of merit. The Bench disapproved the conduct of the Administration in not passing orders on administrative side without reasons.
Speaking for the Bench, Justice S D Anand said, “Whenever an employee raises a claim before the competent administrative authorities the latter must notice each item from what the claimant draws sustenance and then to negative it by indicating the precise reasons thereof. If the claim is negated for want of any rule authorising it, the order must state so. If there is indeed is a rule in the context but the claimant does not make the benchmark the order must say so. If there is any other cause justifying the negation of the claim, even then the order must indicate it. The order must announce the result and also the basis thereof.” However, the Bench has made it clear that the observations are not aimed at any specific department. “We would like to express our anguish about the manner in which competent authorities have been found to have been granting orders on the administrative side. Before proceeding further it may be clarified that idea of penning our sentiments which stem from whatever we have been observing the course of adjudicatory functioning, is to inform all concerned to grant self contained orders. These observations are not meant to be directed at any particular department including the competent authority,”the order reads.
Narinder alleged he had not been considered for promotion, wrongly.

payment of Commutation on account of revision - clarification Dt 27/10/2010

RTI Logo & Portal Launched

The Minister of State for Personnel, Public Grievances and Pensions Shri Prithviraj Chavan launched the Logo on RTI and the RTI portal today in the presence of Shri. A N. Tiwari, Chief Information Commission and Shri. Shantanu Consul, Secretary, DoPT.

It is a simple and iconic logo depicting a sheet of paper with information on it, and the public authority – providing the information. This represents people’s empowerment through transfer and accountability in Governance. The logo’s shape and structure make it easy to remember, recall and replicate with minimal distortion.

In the last five years the RTI regime has heralded a regime of transparency and accountability and strengthened the democratic structure of the country. Success stories of citizens using the RTI Act abound. The Act has achieved great success in empowering the citizens of India. However it was felt that the core values of the RTI regime – Empowerment, Transparency and Accountability- need to be given a shape in the form of a logo.  The logo would be displayed at all public authorities and will be used in various communications related to RTI.

The Right to Information Portal – A Gateway on RTI – was also formally launched on this occasion. The portal is one stop knowledge bank for information seekers, information providers, trainers, Information Commissions, students and academicians.  It provides for a digital library, discussion fora, e- newsletter and a blog. Latest judgments of the High Courts and Information Commissions; reports, articles, guides, manuals, handbooks for various stakeholders; online certificate course are also available on this portal. There is facility for stakeholders to interact through dedicated and open discussion forum and register as resource persons. The web URL for the Portal is www.rtigateway.org.in.

Click here to see Logo

Opening of bank accounts - salaried employees

RBI/ 2010-11/245
DBOD. AML. BC. No. 50/14.01.001/2010-11

October 26, 2010

The Chairmen/CEOs of all Scheduled Commercial Banks (excluding RRBs) /
All India Financial Institutions

Dear Sir,

Opening of bank accounts - salaried employees

Please refer to our Master Circular on Know Your Customer (KYC) norms /Anti-Money Laundering (AML) standards/Combating of Financing of Terrorism (CFT)/Obligation of banks under PMLA, 2002 issued to banks vide DBOD.AML.BC.No.2/14.01.001/2010 – 11 dated July 01, 2010. In Annex I to the circular an indicative list of the nature and type of documents/ information that may be relied upon for customer identification and address verification for opening bank accounts has been given.

2. It has been brought to our notice that for opening bank accounts of salaried employees some banks rely on a certificate/letter issued by the employer as the only KYC document for the purposes of certification of identity as well as address proof. Such a practice is open to misuse and fraught with risk. It is, therefore, clarified that with a view to containing the risk of fraud banks need to rely on such certification only from corporates and other entities of repute and should be aware of the competent authority designated by the concerned employer to issue such certificate/letter. Further, in addition to the certificate from employer, banks should insist on at least one of the officially valid documents as provided in the Prevention of Money Laundering Rules (viz. passport, driving licence, PAN Card, Voter’s Identity card etc.) or utility bills for KYC purposes for opening bank account of salaried employees of corporates and other entities.

3. These guidelines are issued under Section 35A of the Banking Regulation Act, 1949 and Rule 7 of Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005. Any contravention thereof or non-compliance shall attract penalties under Banking Regulation Act.

Yours faithfully,

(Vinay Baijal)
Chief General Manager

Fresh empanelment and revision of rates of private hospitals under CGHS clarified

Fresh empanelment of private hospitals applicable under the Central Government Health Scheme (CGHS),

Delhi is being done. This will cover areas in Delhi, Faridabad, Gurgaon, Ghaziabad and NOIDA. Along with this, package rates to be paid to the hospitals that were fixed in 2006, are also being revised. CGHS has also explained some of the aspects of its package rates for the beneficiaries. Package rates envisage up to a maximum duration of indoor treatment as: (i) twelve days for Specialised (Super Specialised) treatment; (ii) seven days for other Major surgeries; (iii) three days for Laparoscopic surgeries / normal deliveries, and (iv) one day for day / Minor (OPD) surgeries.

However, if the beneficiary has to stay in the hospital for a period more than the period covered in the package, in exceptional cases, supported by relevant medical records and certified as such by the hospital, the additional reimbursement is to be limited to accommodation charges as per entitlement, investigation charges at approved rates and doctor visit charges and cost of medicines. No additional charge on account of extended period of stay is to be allowed if that extension is due to infection on the consequences of surgical procedure or due to any improper procedure and is not justified. CGHS beneficiaries desirous of getting treated in super-speciality hospitals, in non emergency conditions, prior approval of the concerned Additional Director, CGHS would have to be obtained.

The category `super speciality hospitals' has also been defined. The entitlement of hospitals to be super-speciality rates will not be because they perceive themselves to be such but subject to their fulfilling the eligibility conditions in the tender document for being classified as such.

Empanelled hospitals are to provide credit facility to – Members of Parliament, pensioners of Central Government drawing pension from central estimates, former Vice-Presidents, former Governors and former Prime Ministers, ex-Members of Parliament, freedom fighters, serving CGHS employees, serving employees of Ministry of Health and Family Welfare and such other categories of CGHS cardholders as notified by the Government. In case of treatment taken in emergency in any non empanelled private hospitals , reimbursement is to be considered by competent authority at CGHS prescribed packages / rates only.
This OM supercedes all earlier instructions relating to empanelment of hospitals for specialized and general
purpose treatment and investigations for Delhi, Faridabad, Ghaziabad, Gurgaon and NOIDA areas.
The revised rates were to be effective from September 1, 2010 but it has been deferred till all the short listed hospitals sign the Memorandum ofAgreement with the CGHS, Delhi. They are to sign the MoU on or before September 25, 2010 failing which they will be taken off the empanelment list.

Uniformity in penal interest payable by banks for delays in credit / return of NEFT / NECS / ECS transactions

RBI/2010-11/188
DPSS (CO) EPPD No.  477/ 04.03.01 / 2010-11

September 1, 2010

The Chairman and Managing Director / Chief Executive Officer
of member banks participating in / NEFT / NECS / ECS
Madam / Dear Sir,

Uniformity in penal interest payable by banks for delays in
credit / return of NEFT / NECS / ECS transactions

As you are aware, the recent past has been witness to significant growth in retail electronic payment products - both in terms of reach and volume. NEFT is offered by close to 70,000 bank branches in the country and ECS is available at 89 centres. More than 9 million transactions in NEFT and 25 million transactions in NECS / ECS were processed during the month of July 2010 alone. While this augurs well for the migration of payment transactions to the electronic mode, it is imperative that customer service and efficiency parameters are effectively dealt with as well by the member banks.

In terms of the NEFT / NECS / ECS Procedural Guidelines as also the relevant circulars / instructions issued by us from time to time, member banks need to afford credits to beneficiary accounts or return transactions (uncredited for whatever reason) to the originating / sponsor bank within the prescribed timeline. Any delays in doing so attract penal provisions specified therein.

The penal provisions are not uniform across these retail electronic payment systems. While banks have to pay penal interest @ prevailing Bank Rate + two per cent in NECS (Paragraph 15.4 of Procedural Guidelines) and ECS-Credit (Paragraph 29 of Procedural Guidelines), the relevant provision is Bank Rate in NEFT (Paragraph 6.7 of Procedural Guidelines). In order to ensure standardisation of the benchmark rate used and bring in uniformity in penal provisions across the retail payment products, the following modifications are being made:

NECS / ECS-Credit

“........Destination Bank would be held liable to pay penal interest at the current RBI LAF Repo Rate plus two per cent from the due date of credit till the date of actual credit for any delayed credit to the beneficiaries’ account. Penal interest shall be credited to the Beneficiary's Account even if no claim is lodged.”

NEFT

Paragraph 6.7 - “In the event of any delay or loss on account of error, negligence or fraud on the part of an employee of the destination bank in the completion of funds transfer pursuant to receipt of payment instruction by the destination bank leading to delayed payment to the beneficiary, the destination bank shall pay compensation at current RBI LAF Repo Rate plus two per cent for the period of delay. In the event of delay in return of the funds transfer instruction for any reason whatsoever, the destination bank shall refund the amount together with interest at the current RBI LAF Repo Rate plus two per cent till the date of refund."

Paragraph 6.8 is also being substituted as under –

"During the NEFT operating hours, originating banks should endeavour to put through the requests for NEFT transactions received by them, either online or across the counters, preferably in the next available batch but, in any case, not exceeding two hours from the time of receipt of the requests. In the likelihood of any delay / possible delay in adhering to this requirement, the originators / customers should be informed of the delay / possible delay and the reasons for the same."

Member banks may take note of the above changes in the Procedural Guidelines. These changes are applicable with immediate effect.

Yours faithfully

(G. Padmanabhan)
Chief General Manager

Electronic payment products - Processing inward transactions based solely on account number information

RBI/2010-11/235
DPSS (CO) EPPD No. / 863 / 04.03.01 / 2010-11

October 14, 2010

The Chairman and Managing Director / Chief Executive Officer
of member banks participating in RTGS / NEFT / NECS / ECS
Madam / Dear Sir,
Electronic payment products - Processing inward transactions
based solely on account number information
 
As you are aware, the Reserve Bank of India has introduced various electronic payment products (RTGS, NEFT, NECS and the ECS variants) to facilitate electronic transfer of funds in a secure and efficient manner. The volume of transactions routed through these products has witnessed substantial growth, indicating the acceptance and ease of use, by bank branches and customers alike.

2. The electronic payment products rely extensively on technology for origination, movement, processing and ultimate settlement of instructions. You would agree that any manual intervention not only delays completion of the instruction but also provides scope for error and fraudulent intent. Implementation of core banking solutions (CBS) in banks, software interfaces connecting the CBS platform to the payment system gateways and internet access to customers have been major enablers towards providing a straight-through-processing (STP) environment and, thus, popularising these products.

3.  In the CBS environment customers of a bank can be uniquely identified by their account number across branches. In terms of the extant Procedural Guidelines for RTGS / NEFT / NECS / ECS Credit, however, banks are generally expected to match the name and account number information of the beneficiary before affording credit to the account. In the Indian context, given the many different ways in which beneficiary names can be written, it becomes extremely challenging to perfectly match the name field contained in the electronic transfer instructions with the name on record in the books of the destination bank. This leads to manual intervention hindering STP and causing delay in credit or due return of uncredited instructions.
4.  Being essentially credit-push in nature, responsibility for accurate input and successful credit lies with the remitting customers and the originating banks. The role of destination banks is limited to affording credit to beneficiary's account based on details furnished by the remitter / originating bank. In order to handle surging volumes in a limited time window, some banks use name matching software, while a few others employ a risk-based approach based on the nature and value of transfer.

5.  Keeping in view the foregoing, in the RTGS / NEFT / NECS / ECS Credit products, it has since been decided as under :

1. Responsibility to provide correct inputs in the payment instructions, particularly the beneficiary account number information, rests with the remitter / originator. While the beneficiary’s name shall be compulsorily mentioned in the instruction request, and carried as part of the funds transfer message, reliance will be only on the account number for the purpose of affording credit. This is applicable both for transaction requests emanating at branches and those originated through the online / internet delivery channel. The name field in the message formats will, however, be a parameter to be used by the destination bank based on risk perception and / or use for post-credit checking or otherwise.
   
2. Originating banks may put in place an appropriate maker-checker system to ensure that the account number information furnished by their customers is correct and free from errors. This may entail advising customers enjoying online / internet banking facilities to input the account number information more than once (with the first time feed being masked as in case of change of password requirements) or such other prescriptions. Customers submitting funds transfer requests at branches may be required to write down the account number information twice in the application form.
   
3. For transactions requested at branches, the originating bank shall put in place a maker-checker process with one employee expected to input the transaction and the other checking the input.
   
4. Banks should put suitable disclaimers on the funds transfer screens in the online / internet banking platform and funds transfer request forms advising customers that credit will be effected based solely on the beneficiary account number information and the beneficiary name particulars will not be used therefor.
   
5. Destination banks may afford credit to the beneficiary’s account based on the account number as furnished by remitter / originating bank in the message / data file. The beneficiary’s name details may be used for verification based on risk perception, value of transfer, nature of transaction, post-credit checking, etc.
   
6. Member banks shall take necessary steps to create awareness amongst their customers about the need for providing correct account number information while making payments through RTGS / NEFT / NECS / ECS Credit.
   
7. The system of providing mobile / e-mail alerts to customers for debit / credit to their accounts will be another way of ensuring that the debits / credits are genuine and put through / expected by them, and preferably, should be extended to all customers for all funds transfer transactions irrespective of value.
   
8. The above notwithstanding, in cases where it is found that credit has been afforded to a wrong account, banks need to establish a robust, transparent and quick grievance redressal mechanism to reverse such credits and set right the mistake and / or return the transaction to the originating bank. This particularly needs to function very efficiently and pro-actively till such time customers are comfortable with the new arrangements.
   

6.  These modifications are equally applicable to ECS Debit transactions to be used by destination banks for debiting their customer accounts based on details furnished by the user institutions / sponsor banks.

7. Banks are hereby advised to put in place appropriate systems and procedures to ensure compliance with the above prescriptions. The guidelines are issued under the powers vested with Reserve Bank of India under Section 10(2) of the Payment & Settlement Systems Act, 2007 and would come into effect from January 1, 2011. The instructions would be reviewed and suitable changes will be effected, if necessary, based on operational experience and general feedback.

8.  Please confirm receipt of this circular.
Yours faithfully
(G. Padmanabhan)
Chief General Manager

Practice Stop. Think. Connect.(TM ) and encourage others to do it as well.

Tips and Advice

Tip: Keep a Clean Machine.
Advice:

• Keep security software current: Having the latest security software, web browser, and operating system are the best defenses against viruses, malware, and other online threats.
• Automate software updates: Many software programs will automatically connect and update to defend against known risks. Turn on automatic updates if that's an available option.
• Protect all devices that connect to the Internet: Along with computers, smart phones, gaming systems, and other web-enabled devices also need protection from viruses and malware.
• Plug & scan: "USBs" and other external devices can be infected by viruses and malware. Use your security software to scan them.

Tip: Protect Your Personal Information.
Advice:

• Secure your accounts: Ask for protection beyond passwords. Many account providers now offer additional ways for you verify who you are before you conduct business on that site.
• Make passwords long and strong: Combine capital and lowercase letters with numbers and symbols to create a more secure password.
• Unique account, unique password: Separate passwords for every account helps to thwart cybercriminals.
• Write it down and keep it safe: Everyone can forget a password. Keep a list that's stored in a safe, secure place away from your computer.
• Own your online presence: When available, set the privacy and security settings on websites to your comfort level for information sharing. It's ok to limit who you share information with.

Tip: Connect with Care.
Advice:

• When in doubt, throw it out: Links in email, tweets, posts, and online advertising are often the way cybercriminals compromise your computer. If it looks suspicious, even if you know the source, it's best to delete or if appropriate, mark as junk email.
• Get savvy about Wi-Fi hotspots: Limit the type of business you conduct and adjust the security settings on your device to limit who can access your machine.
• Protect your $$: When banking and shopping, check to be sure the sites is security enabled. Look for web addresses with "https://" or "shttp://", which means the site takes extra measures to help secure your information. "Http://" is not secure.

Tip: Be Web Wise.
Advice:

• Stay current. Keep pace with new ways to stay safe online. Check trusted websites for the latest information, and share with friends, family, and colleagues and encourage them to be web wise.
• Think before you act: Be wary of communications that implores you to act immediately, offers something that sounds too good to be true, or asks for personal information.
• Back it up: Protect your valuable work, music, photos, and other digital information by making an electronic copy and storing it safely.

Tip: Be a Good Online Citizen.
Advice:

• Safer for me more secure for all: What you do online has the potential to affect everyone – at home, at work and around the world. Practicing good online habits benefits the global digital community.
• Post only about others as you have them post about you.
• Help the authorities fight cyber crime: Report stolen finances or identities and other cybercrime

Courtesy: Stop. Think. Connect.^TM