TWELVE WAYS TO UNITE TO COMBAT CLIMATE CHANGE- UNEP

1. Make a commitment

Reducing your carbon footprint is no different from any other task. Telling people you will reduce carbon emissions may seem simplistic, but even simple actions like announcing your commitment to going carbon neutral can be effective, while the simple act of asking for ideas can lead to creative and innovative solutions. Several countries have indicated in recent months that they will go carbon neutral, led by Costa Rica, New Zealand and Norway. The United Nations system itself, led by Secretary-General Ban ki-Moon, and guided by the UNEP-led Environment Management Group, is moving towards carbon neutrality. UNEP is also facilitating carbon neutrality in all sectors and all regions through its climate neutral network.

2. Assess where you stand

It is likely that carbon will eventually be judged as an atmospheric pollutant and regulated accordingly, with consequent costs—and opportunities—for all sectors of society. Knowing where and how you generate greenhouse gases is the first step to reducing them. For individuals and small businesses, online calculators and internal assessments can help start the process. Larger organisations may need specialised advice and tools, such as the new ISO 14064 standard for greenhouse gas accounting and verification, or the Greenhouse Gas Protocol, provided by the World Resources Institute and World Business Council for Sustainable Development, which is an accounting tool for government and business managers to understand, quantify, manage and report greenhouse gas emissions.

3. Decide and plan where you want to go

Based on your assessment of climate-related risks and opportunities, a strategy and action plan can be developed. Targets help focus efforts and also provide a benchmark for measuring success. Most homes or businesses can reduce energy use by 10 per cent—which almost always results in a 10 per cent reduction in greenhouse gas emissions—with a one year payback or less. A plan to reduce carbon emissions will first focus on the type of energy and the way it is used; for example electricity for buildings and fuel for transport. Reducing this energy can create instant savings. An effective tool is an energy audit. Many electric utilities and government energy offices now offer an audit as part of their efforts to reduce carbon emissions.

4. De-carbon your life

There is a broader way to think about carbon and climate. Everything an individual, organization, business or government does or uses embodies some form of carbon, either in products themselves or in the energy and materials it takes to make them. Buildings, fittings and equipment are all proxies for carbon; ‘carbon copies’ can be chosen based on the least amount of impact they will have on the climate. Integrating climate friendly criteria into decision making can trigger a ripple effect.

If consumers, manufacturers and lawmakers all think ‘low carbon’ and ‘climate friendly’ savings in carbon emissions will multiply. Take packaging as an example. US retail giant Wal-Mart worked with one of their toy suppliers to reduce packaging on just 16 items. The toy suppliers saved on packaging costs while Wal-Mart used 230 fewer shipping containers to distribute their products, saving about 356 barrels of oil and 1,300 trees. By broadening this initiative to 255 items, the company believes it can save 1,000 barrels of oil, 3,800 trees, and millions of dollars in transportation costs.

Another example: you can buy paper or wood products that adhere to internationally certified standards. The Forestry Stewardship Council (www.fsc.org), for example, is an international non-profit organisation promoting responsible management of the world’s forests. The FSC trademark is increasingly recognised as an international standard for responsible forest management. More than 90 million hectares in more than 70 countries have been certified according to FSC standards while several thousand products are produced using FSC certified wood and carrying the FSC trademark. Switching to recycled or sustainably sourced paper can also lead to considerable savings, reducing both landfill use and carbon emissions. Using recycled paper can save 1.4 tonnes of CO2 for every tonne of paper and cardboard.

Other ways of reducing your carbon footprint include wasting less time and energy on travel. Cities can improve public transport options, companies can encourage low carbon habits (by ceasing to subsidize parking or investing in hybrid technology company vehicles), and individuals can car pool or use public transport. Sometimes simple actions can produce a shift. Secure bicycle storage and changing and shower facilities, for example, are often inexpensive compared to other parking structures but create a strong incentive for those who can commute by bicycle. In larger cities with adequate public transport, a monthly or yearly pass can be offered instead of parking facilities. Paris and Vienna, for example, offer a public bicycle system that reduces greenhouse gas emissions and traffic congestion.

5. Get energy efficient

Improving the efficiency of your buildings, computers, cars and products is the fastest and most lucrative way to save money, energy and carbon emissions. This does not mean going without. Energy efficiency is about increasing productivity but doing more with less. More efficient buildings, cars and products will a direct and lasting contribution to limiting carbon emissions. Conventional buildings can account for almost 40 per cent of CO2 emissions. High performance, environmentally accountable, energy efficient and productive facilities are now economically possible.

Very simple measures can lead to immediate savings. Just turning off unused lights, motors, computers and heating can substantially reduce wasted energy—and money. Generally, laptop computers use less energy than desktop computers and LCD monitors use less energy than CRT screens. Also consider what to do with equipment when its useful life is finished. Some manufacturers offer take-back or recycling. Also look for energy efficiency standards. For appliances, the Energy Star rating is a way to describe efficiency. For many brands now, the highest energy efficiency rating does not cost any more than less efficient products. Originally from the United States, Energy Star is now applicable in Europe.

Think about your travel. Advanced web and video conferencing technology mean the time is rapidly approaching when the need to travel will be substantially diminished. A two-day trip to attend a meeting 1,000 km (600 miles) away can cost about US$2,000 per person when accommodation, travel and meals are included, while a video conference may cost as little as US$200. The savings are US$1,800 and about half a tonne of carbon. Telecommuting is also increasingly an option for many. A study by the Telework Coalition (www.telcoa.org) found that if 32 million Americans who could telecommute did so one day a week, they would drive 2 billion kilometres less, save 300 million litres of fuel and gain the equivalent of 32 million extra hours every week for leisure, family or work.

Lighting can account for 15-20 per cent of total electricity use. Converting coal at the power plant into incandescent light is only three per cent efficient. Compact fluorescent lights (CFLs) have evolved rapidly in the past decade. They now last between six and 15 years and reduce electricity use by a minimum of 75 per cent compared to a standard incandescent bulb. The advantages of CFLs and other high efficiency lighting have prompted legislation to ban incandescent bulbs. In 2007, Australia was the first country to mandate that no incandescent bulbs will be sold by 2012, a move that will reduce emissions by four million tonnes and cut power bills for lighting by up to 66 per cent.

6. Switch to low carbon energy

If possible, switch to energy sources that emit less carbon and can reduce costs and emissions. Generally, coal produces twice the emissions of gas, six times the amount of solar, 40 times the amount of wind and 200 times the amount from hydro. In many parts of the world customers can choose to have a percentage of their electricity supplied from a renewable energy source, such as a wind farm or landfill gas project. These ‘green choice’ programmes are maturing and proving to be a powerful stimulus for growth in renewable energy supply. Today, more than 50 per cent of all US consumers, for example, have an option to purchase some type of green power product.

Larger users can even build their own lower emission energy systems, using solar power or lower carbon technologies such as generators powered by natural gas. A Global Environment Facility project in eastern and southern Africa is promoting small scale hydro schemes in the tea industry and cogeneration using agricultural waste from the sugar industry to generate electricity for industry use and to feed into national grids. In the United Kingdom, the body background="images/backgrd.gif" Shop bought a 25 per cent stake in a large modern wind generator to provide renewable energy for its UK operations. Other companies installing their own renewable energy plant include 3M, DuPont, General Motors, IBM, Johnson & Johnson and Staples.

At the small business or household level, tax breaks and incentives can make solar photovoltaic systems and other renewable energy technologies cost effective. Rooftop solar electric panels can provide energy over time, reduce electricity costs and provide a buffer against price fluctuations. UNEP is helping promote such schemes in southern India and North Africa.

The transport sector is responsible for 25 per cent of total energy consumption and greenhouse gas emissions, mainly from burning petrol and diesel. Various options exist for kicking the carbon habit. Hybrid engines that combine electricity and conventional petrol or diesel engines can offer substantial fuel savings while reducing emissions. Vehicles can also run on a range of alternative fuels that can offer both cost and environmental benefits, although they also often require an additional investment that take some time to pay back. These include compressed natural gas (CNG), liquefied petroleum gas (LPG), liquefied natural gas (LNG) and biofuels.

Biodiesel and bioethanol are biofuels made from crops, such as wheat, soy, corn and sugar cane. They are often blended with petrol or diesel, and almost all vehicles can run on blends up to 10 per cent without modification. Specially enabled biofuel cars can run on higher blends, such as a mix of 85 per cent bioethanol and 15 per cent petrol. In many parts of the world, biofuels are becoming more popular and easier to find commercially and in various blends. For companies with automotive fleets, biofuels can be a cost-effective low-carbon alternative.

7. Invest in offsets and cleaner alternatives

There is a limit to how much efficiency you can squeeze from your lifestyle or your organisation’s operations, or how much renewable energy you can employ. The choice for those who wish to compensate for their remaining emissions is to fund an activity by another party that reduces emissions. This is commonly called a ‘carbon offset’ or ‘carbon credit’. The term carbon neutral includes the idea of neutralising emissions through supporting carbon savings elsewhere.

The average price for carbon offsets is US$15 per tonne, but costs range from US$5-50 per tonne. To purchase offsets, individuals or businesses pay an offset company to implement and manage projects that avoid, reduce or absorb greenhouse gases. Climate change is a global problem, so carbon reductions will have the same impact no matter where they are implemented. Carbon credits can be generated by emission-free energy generation, reduced demand, including energy efficiency, or sequestration in the form of underground and forestry storage.

According to one report, the highest quality offsets are generated from the flaring of methane from landfills, since methane is an even more potent greenhouse gas than CO2. Green Gas International (www.greengas.net) is a company that generates carbon credits by converting waste gas to clean energy through partnerships with mines, landfills and biogas producers. The worldwide benefits of such projects include 125 megawatts (MW) of power, saving four million tonnes of CO2.

8. Get efficient

Looking at your life or business through a carbon neutral lens can help you in other ways by increasing the efficiency of resource use, avoiding and reducing waste and ultimately improving your overall performance and reputation. Economists are fond of saying that there are no banknotes lying around because someone will have already picked them up. In climate change, there are still plenty of banknotes just waiting to be picked up. After all, carbon is generally the waste product of producing energy, and reducing waste and becoming more efficient is always a good idea. Integrate the 3R approach—reduce, reuse and recycle—into your thinking.

9. Offer—or buy—low carbon products and services

The market for climate friendly products and services is growing rapidly, from energy efficient products to new renewable energy systems. To offer such products, however, it’s important to begin at the design stage. Actions as simple as adding energy efficient specifications into the design process, for example, can produce a design that minimises energy consumption during its use and saves customers the time and energy from making adjustments to a product after a purchase, (for example having to wrap water heaters with insulation blankets).

A more systematic approach comes from the field of ‘design for sustainability’, which includes life cycle design and environmentally conscious design and manufacturing. This new approach considers environmental aspects at all stages of development to create products with the lowest environmental impact throughout the product life cycle. Ecodesign is an important strategy for small and medium sized companies both in developed and developing countries to improve the environmental performance of their products, reduce waste and improve their competitive position on the market.

10. Buy green, sell green

The market for green products and services is growing rapidly. In many countries consumer surveys report that growing numbers of consumers are willing to buy green products if given the choice. For businesses, innovative product design and presentation combined with responsible marketing and communications can help ensure that this consumer interest translates into purchasing. However, the market for green products remains underdeveloped because people still find it difficult to locate products or trust their environmental claims. Businesses can help consumers to be more climate friendly, from the online click for carbon offsetting on a tourism booking website to the label on a product at the local store.

11. Team up

Many private sector companies are increasingly working with non-governmental organisations, cities or governments to identify and implement best practice solutions to reduce emissions. The Carbon Disclosure Project (www.cdproject.net), for example is an independent non-profit organisation providing information for institutional investors with a combined US$41 trillion of assets under management. On their behalf, CDP seeks information on the business risks and opportunities presented by climate change and greenhouse gas emissions data from more than 2,000 of the world’s largest companies.

Similarly, local and national governments are seeking opportunities to partner with business on delivering low carbon solutions. In countries such as Canada, government institutions and power utilities supported the setting up of Energy Service Companies (ESCos). In the United States, the federal Environmental Protection Agency started the Energy Star program (www.energystar.gov) in 1992 as a voluntary partnership to reduce greenhouse gas emissions through increased energy efficiency. In 2006, American businesses and consumers saved US$14 billion on energy bills with the help of Energy Star saved and reduced greenhouse gas emissions equal to 25 million vehicles annually.

12. Talk

The increasing importance of climate change means that companies and organisations will need to communicate. Transparency is critical. The internet and other new media mean that companies, organisations and governments cannot hide behind greenwash. This is where tools for verification and reporting guidelines with recognised indicators are critical. One example is the Global Reporting Initiative (GRI) (www.globalreporting.org). Internal communications via intranets and company publications can report progress and acknowledge contributions by individual staff or teams. It’s also important to let shareholders know. Reducing emissions, particularly by improving efficiency is a win-win situation that can also enhance a company’s reputation. Consumers and investors alike are requesting information on a company’s response to risks and opportunities related to climate change.

(This is an abridged and adapted version of an original piece produced by UNEP for the UNEP/Sustainable Development International publication ‘Climate Action’ www.climateactionprogramme.org)

India’s new pension system redefines scale

By Jame DiBiasio | 16 February 2009

India is poised to launch an innovative pension system on an unprecedented scale. After many years of languishing in bureaucratic limbo, the so-called New Pension System (NPS) is now set to go live on April 1, having just completed an eight-week flurry of activity to establish operational procedures and select fund managers.

The NPS is aimed at catering to the nearly 400 million people in India's 'unorganised' sector of small- to medium-sized enterprises and cottage industries.

It originated as a scheme for central government employees, with the intention of expanding to the private unorganised sector. Last year the Pension Fund and Retirement Development Authority (PFRDA), the system's regulator, handed out three mandates for this role, to three government-owned fund managers, LIC Mutual Fund, State Bank of India Asset Management and UTI, based on recommendations forwarded by Crisil, a local ratings agency. These mandates are mainly fixed income; they allow the managers to invest up to 15% in equities but so far none has come close to that cap.

Because the NPS is only mandatory for newly joining civil servants, the size outsourced to these three managers is modest, and they will be paid 3-5bps on managed assets.

September saw another opening of the pensions world, when the Employee Provident Funds Office, which manages around $25 billion on behalf of the organised sector (the larger corporations), for the first time outsourced assets to four fund houses: HSBC Asset Management, ICICI Prudential Asset Management, Reliance Capital and SBI. Collectively these houses will receive $2-3 billion annually to run domestic bond portfolios.

But the biggest, most anticipated move has been the extension of the NPS from just covering new civil servants to the entirety of the unorganised sector. This had been held up for years because the Marxist parties that had provided the ruling Congress Party with support in parliament had opposed this. But in September the Marxists broke the alliance over India's nuclear deal with the United States, and Congress was able to reassemble a new ruling coalition with other parties.

With a general election scheduled for this spring, the PFRDA's chairman D. Swarup realised he had a short window of opportunity to get the NPS expansion through parliament and into action. The PFRDA appointed Mercer to assist it with designing the plan for the unorganised sector in December and unveiled the results this month.

The designers appear to have come up with a truly innovative design that is intended to maximise benefits to members, rather than enrich product providers. The 'new' NPS is structured around three tiers. First is the Central Recordkeeping Agency (CRA), which manages the system and is responsible for collecting contributions and disbursing benefits.

Beneath this is a myriad of Points of Presence (PoPs), in other words, distributors. Although entities such as the post office were considered, the designers for now have opted to stick with commercial banks and life insurance companies. An additional level of independent financial advisors has likewise been scrapped over concerns about their ability to understand or sell the NPS. So for now, the PoPs -- mainly the state-owned banks -- will serve as the front line.

The CRA is now in the process of finalising its choice of external fund managers who will handle all assets for members from the unorganised sector. It has made offers to six providers for three-year contracts, and it is assumed these six will accept, although negotiations are not over. The six include three government-owned entities (ICICI Life Insurance, SBI and UTI) and three private players (IDFC Asset Management, Kotak Asset Management and Reliance Capital). By law managers to the system cannot have more than 26% foreign ownership, which has automatically excluded foreign players such as Franklin Templeton and HSBC Asset Management, and most joint ventures as well.

These will manage two portfolios of indexed equities, two of fixed income, and two of corporate bonds and other credit instruments -- all domestic, for now. These will serve as building blocks to which members can allocate any mix of assets. (Government employees in NPS will also be able to choose from among these six managers, in addition to the three balanced mandates already chosen for them; but not vice versa, i.e. private-sector workers will not have access to portfolios chosen explicitly for civil servants.)

One of the most progressive features of the NPS is its default option for anyone who doesn't want to pick among funds, which is a lifecycle option. The CRA will allocate on member's behalf among the six funds, with an equities component ranging from 80% to 10%, adjusting accounts each year by the member's age.

If the scale of the unorganised sector is vast, consider the flip side: the razor-thin fees on offer. UTI put in the lowest bid, at 0.09 basis points -- yes, that's nine-hundredths of a basis point, and it includes transaction and custody costs. The CRA is now locking down the same fee among the other five managers. (In the cash market, an equity index fund sells for 100bps, and an actively managed fund for 200bps.)

"This cost structure is as close to a true index as you can get," says Hansi Mehrotra, Mumbai-based principal and business leader for investment consulting at Mercer.

For these fund managers, the eventual promise of servicing the vast unorganised sector is worth writing off the next three years. They already charge tiny fees for regular saving plans to their mutual funds. They have the existing IT, management and other resources already in place. Because the equity funds are passive, there is little call on portfolio managers.

And the biggest expense in asset management, the marketing, has been taken out of fund managers' hands. The PFRDA insisted on the CRA being responsible for all marketing efforts, in order to defend against mis-selling.

The PFRDA is also concerned about mis-selling at the PoP level. There is nothing to prevent an adviser at, say, State Bank of India from suggesting a member put all of their contributions into the fund run by SBI Asset Management. But at least it must obtain a signature from each member.

The biggest challenge will be making people aware of the NPS, and convincing them to contribute. Although mandatory for new civil servants, it is voluntary for private-sector workers. The CRA will begin marketing on April 1, once the system goes live, but it lacks a mechanism to reach the hundreds of millions who are eligible. The banks that will serve as PoPs don't have incentives to push the system, when it comes at the expense of their own deposit bases -- and besides, some 20% of these workers don't even have a bank account.

One big weakness in the system is the lack of tax incentives. Although plenty of workers in the unorganised sector pay no taxes, there could be rebates on things like excise taxes or custom duties, as well as corporate and income-tax breaks for those who qualify.

A second flaw is the requirement that nearly half the accumulated assets are to be used to buy an annuity from life insurance companies upon retirement. Although the annuity concept is good, doing so in this manner will subject members to the high prices of the cash market, undermining the benefits of ultra-low cost that the NPS's scale is meant to deliver.

There is now a bill in parliament that would address the tax issues, separate to the launch of the system, but fund management executives in Mumbai are sceptical it will be passed before the elections -- which means it is unlikely to be passed. Getting the NPS off the ground at all is a success and a coup for D. Swarup, but the system will require plenty of further reform.

The PFRDA says the system will attract only $2 billion per annum as a result of these problems -- a disappointment to fund executives, who had previously expected five or six times that amount. It will take fund houses 10 years or more to break even, says one funds exec, although the cutthroat fee schedules may be renegotiated in three years.

© Haymarket Media Limited. All rights reserved.

Timely prepration and proper maintenance of ACRs Dopt OM dated 16th Feb 2009

Representation regarding payment of arrear on revision of pension- 60% thereof

Representation regarding revision of pension of Pre-2006 pensioners

RBI-Frequently Asked Questions (FAQ) on National Electronic Funds Transfer (NEFT) System

Q.1. What is NEFT System?

Ans National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch.

Q. 2. Are all bank branches in the system part of the funds transfer network?

Ans No. As on July 20, 2008, 46363 branches of 87 banks are participating. Steps are being taken to widen the coverage both in terms of banks and branches.

Q.3. Whether the system is centre specific or has any geographical restriction?

Ans No, there is no restriction of centres or of any geographical area inside the country. The system uses the concept of centralised accounting system and the bank's account, that are sending or receiving the funds transfer instructions, gets operated at one centre, viz, Mumbai only. The individual branches participating in NEFT could be located anywhere across the country, as detailed in the list provided on our website.

Q.4. What is the funds availability schedule for the beneficiary?

Ans The beneficiary gets the credit on the same Day or the next Day depending on the time of settlement.

Q.5. How does the NEFT system operate?

Step-1: The remitter fills in the NEFT Application form giving the particulars of the beneficiary (bank-branch, beneficiary's name, account type and account number) and authorises the branch to remit the specified amount to the beneficiary by raising a debit to the remitter's account. (This can also be done by using net banking services offered by some of the banks.)

Step-2: The remitting branch prepares a Structured Financial Messaging Solution (SFMS) message and sends it to its Service Centre for NEFT.

Step-3: The Service Centre forwards the same to the local RBI (National Clearing Cell, Mumbai) to be included for the next available settlement. Presently, NEFT is settled in six batches at 0900, 1100, 1200, 1300, 1500 and 1700 hours on weekdays and 0900, 1100 and 1200 hours on Saturdays

Step-4: The RBI at the clearing centre sorts the transactions bank-wise and prepares accounting entries of net debit or credit for passing on to the banks participating in the system. Thereafter, bank-wise remittance messages are transmitted to banks.

Step-5: The receiving banks process the remittance messages received from RBI and effect the credit to the beneficiaries' accounts.

Q.6. How is this NEFT System an improvement over the existing RBI-EFT System?

Ans The RBI-EFT system is confined to the 15 centres where RBI is providing the facility, where as there is no such restriction in NEFT as it is based on the centralised concept. The detailed list of branches of various banks participating in NEFT system is available on our website. The system also uses the state-of-the-art technology for the communication, security etc, and thereby offers better customer service.

Q.7. How is it different from RTGS and EFT?

Ans: NEFT is an electronic payment system to transfer funds from any part of country to any other part of the country and works on Net settlement, unlike RTGS that works on gross settlement and EFT which is restricted to the fifteen centers only where RBI offices are located.

Q.8. Any limit on the amount of individual transaction?

Ans There is no value limit for individual transactions.

Q.9. What about Processing Charges/Service Charges?

Ans While RBI has waived the processing charges till March 31, 2009, levy of service charges by banks is left to the discretion of the respective banks. The bank-wise details of charges levied are available on the RBI website.

Q.10. How will I know which are the branches participating in the NEFT?

Ans RBI publishes the list of bank branches participating in the NEFT on its website i.e. https://www.rbi.org.in/scripts/neft.aspx

Q.11. What is IFS Code (IFSC)? How it is different from MICR code?

Ans Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify the bank-branches in India. This is 11 digit code with first 4 characters representing the banks code, the next character reserved as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch. The MICR code has 9 digits to identify the bank-branch.

Q.12. How I will know, what is the IFS Code of my bank-branch?

Ans RBI had since advised all the banks to print IFSC on cheques leaves issued to their customers. You may also contact your bank-branch and get the IFS Code of that branch.

Q.13. Whom I can contact, in case of non-credit or delay in credit to the beneficiary account?

Ans Contact your bank / branch. If the issue is not resolved satisfactorily, the Customer Service Department of RBI may be contacted on nefthelpdeskncc@rbi.org.in or write to -

The General Manager,
Reserve Bank of India,
National Clearing Centre First Floor,
Free Press House
Nariman Point
Mumbai – 400 027

Q.14. Is it necessary to have a bank account to originate the NEFT transaction?

Ans Yes, NEFT is an account to account funds transfer system.

Q.15. Is it necessary that the beneficiary should have an account at the destination bank-branch?

Ans Yes, NEFT is an account to account funds transfer system.

Q.16. Can I receive foreign remittances through NEFT?

Ans This system can be used only for remitting Indian Rupee among the participating banks within the country.

Q.17. Can I send remittances abroad using the NEFT?

Ans No

Q.18. Can I originate a transaction to receive funds from another account?

Ans No

Q.19. Can I send/receive funds from/to NRI accounts?

Ans: Yes, subject to applicability of provisions of FEMA

Q.20. Would the customer receive an acknowledgement of money credited to the beneficiary?

Ans: No, however electronic acknowledgement is generated for the customer that his money is received by the beneficiary at the sender branch.

Q.21. Would the remitting customer get back the money if it is not credited to the beneficiary’s account?

Ans: Yes, the remitting customer gets back the money if it is not credited to the beneficiary account.

Q.22. Till what time NEFT service window is available?

Ans: There are six settlements at 0900, 1100, 1200, 1300, 1500 and 1700 hours on weekdays and 0900, 1100 and 1200 hours on Saturdays.

Q.23. What is the essential information that the remitting customer would have to furnish for the remittance to be effected?

Ans: The essential information that the remitting customer has to furnish is:

• Beneficiary details such as beneficiary name and account number


• Name and IFSC of the beneficiary bank branch.

Q.24. Is there any way a remitting customer can track the remittance transaction?

Ans: The remitting customer can track the remitting transaction through the remitting branch only, as the remitting branch is informed about the status of the remitted transactions.

USD Denominated Cheques–Improvements in collection process - UCBs

RBI/2008-09/350
UBD (PCB). Cir. No. 33/16.26.00/2008-09

January 14, 2009

The Chief Executive Officers of all
AD I and AD II UCBs

Dear Sir /Madam

USD Denominated Cheques–Improvements in collection process - UCBs

Given the number of instances of customer complaints on delay in collection of USD denominated cheques, Reserve Bank conducted a sample study of collection practices followed by banks to explore feasibility of reducing the time lag for collection of such cheques.

2. Based on the feedback, it has been decided that Authorised Dealer UCBs may initiate steps as detailed below to provide customer friendly collection arrangements: -

i) UCBs shall make the US Dollar currency cheque collection scheme transparent and a part of their regular cheque collection policy. Various modes of collection along with the time period and charges for each mode should be appropriately covered therin.

ii) The policy shall be widely disseminated and displayed on the notice board of branches / web site.

iii) Customer shall be suitably educated / informed of the collection mode based on need, convenience and cost, including the advantages of using electronic modes of payment.

iv) UCBs may review their collection policies on an on-going basis and explore using faster methods of realization such as leveraging on Check-21 facility in the US for saving in transit time, direct deposit mechanism with correspondent bank (CB), etc., for early collection of USD cheques.

v) There is scope for reducing the transit time for moving the cheques from branches to CBs. The transit period may be reduced by 2 to 3 days by sending cheques on the same day from branches to centralized pooling branch and from centralized pooling branch to CB. Use of efficient and reliable courier / postal service may help in reducing the transit time.

vi) UCBs may explore the possibility of forming / pooling the cheques to a service bureau to avail benefit of imaging, reduced infrastructure costs, etc., with the intent of saving in transit / collection time.

vii) Service charges for collection of USD cheques shall be decided by UCBs and be made a part of their USD cheque collection policy.

viii) UCBs shall pay interest on the amount of cheques from the date of sighting credit in their nostro account till such time the customer account is credited. Interest shall be paid at saving bank rate calculated on the amount of proceeds credited to the customer's account.

ix) Compensation by way of additional interest shall be paid to the customer for delay in collection beyond the declared collection period as per the bank's policy, without the customer requesting for the same and such interest shall be on "step-up basis" for the period of delay.

x) UCBs may formulate a policy on 'instant' credit for small value cheques as a part of their USD cheque collection policy.

xi) Complaints from customers alleging delay in collection / receipt of proceeds or otherwise shall be properly examined and redressed.

xii) UCBs shall continuously evaluate the industry best practices and adopt such practices wherever feasible.

3. Please acknowledge receipt to the concerned Regional Office of the Reserve Bank of India.

Yours faithfully

(A. K. Khound)
Chief General Manager

Reconciliation of transactions at ATMs failure-Time limit

RBI/2008-2009/ 380 DPSS No. 1424 / 02.10.02 / 2008-2009

February 11, 2009

The Chairman and Managing Director / Chief Executive Officers All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks / State Co-operative Banks /. District Central Co-operative Banks

Madam / Dear Sir

Reconciliation of transactions at ATMs failure-Time limit

The use of Automated Teller Machines (ATMs) for cash withdrawal has been increasing in the country. However, of late, we have been receiving a number of complaints from bank customers, regarding debit of accounts even though the ATMs have not disbursed cash for various reasons. More importantly, banks take considerable time in reimbursing the amounts involved in such failed transactions to card holders. In many cases, the time taken is as much as 50 days. 2. After examining the procedures involved in verification and resolution of such complaints, the Reserve Bank has concluded that delay of the magnitude indicated above is not justified, as it results in customers being out of funds for a long time for no fault of theirs. Moreover, this delay can discourage customers from using ATMs. Therefore, it was decided that, to start with banks shall reimburse to the customers the amount wrongfully debited within a maximum period of 12 days from the date of receipt of customer complaints. This decision was communicated to the banks vide our circular RBI/DPSS No. 711/02.10.002/2008-09 dated October 23, 2008. It is, however, observed that banks have not taken adequate care to percolate these instructions to their branches as evident from continuing complaints in this regard. 3. Banks are, therefore, once again advised to strictly adhere to the time discipline indicated in the above mentioned circular. Non-adherence to the time discipline shall attract penalties prescribed under the Payment and Settlement Systems Act 2007 (Act 51 of 2007). 4. This directive is issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007). 5. Kindly acknowledge the receipt.

Yours faithfully

(G. Padmanabhan) Chief General Manager

Sexual harassment at work: Govt to act

The sexual harassment at workplace bill 2008 is under the consideration of the government, the Lok Sabha was told on Friday.

Replying to a question, Minister for Women and Child Development Renuka Chowdhury said the draft 'The Protection of Women Against Sexual Harassment at Workplace Bill' has been submitted to the government for further action.

"The draft bill submitted by the National Women for Commission is under the consideration of the government," she said.

"As per the draft, a workplace has been defined as any department, organisation, undertaking and establishment or branch which is established, owned or controlled, financed by funds provided directly or indirectly by the appropriate government or the local authority or a corporation or a cooperative society," the minister said.

She said besides this, any private sector organisation, institution, unit or service provider carrying on commercial, professional or industrial activities has been defined as a workplace.

Integrity Pact

Frequently asked questions about corruption (Transparency International)

How do you define corruption?
Transparency International (TI) has chosen a clear and focused definition of the term: Corruption is operationally defined as the misuse of entrusted power for private gain. TI further differentiates between "according to rule" corruption and "against the rule" corruption. Facilitation payments, where a bribe is paid to receive preferential treatment for something that the bribe receiver is required to do by law, constitute the former. The latter, on the other hand, is a bribe paid to obtain services the bribe receiver is prohibited from providing.

What is "transparency"?
"Transparency" can be defined as a principle that allows those affected by administrative decisions, business transactions or charitable work to know not only the basic facts and figures but also the mechanisms and processes. It is the duty of civil servants, managers and trustees to act visibly, predictably and understandably.

What does TI do against corruption?
TI has been dedicated to the fight against corruption since its foundation in 1993. The basic principles of TI's anti-corruption struggle have been defined from the start: coalition building, proceeding incrementally, and remaining non-confrontational. What does this mean?TI believes that keeping corruption in check is only feasible if representatives from government, business and civil society work together and agree on a set of standards and procedures they all support. TI also believes that corruption cannot be rooted out in one big sweep. Rather, fighting it is a step-by-step, project-by-project process. Finally, TI's non-confrontational approach is necessary to get all relevant parties to the table.It is TI's goal to define and introduce strategies and mechanisms that make corrupt practices if not impossible, at least unlikely and punishable, both on the national as well as on the international level. Raising public awareness of the problem, stressing that corruption is a problem that can be tackled and that it is not a given fact of life, is the first step in this direction. That is why TI has begun by collecting, analysing and distributing information on the subject. The anti-corruption strategies and tools subsequently developed are described in detail in the Source Book, complemented by an extensive collection of practical examples for their application. The Source Book is available online as well as in print. A collection of civil society experiences and emerging strategies in countering corruption are also available in the Corruption Fighters' Tool Kit, available both on the web and in CD-ROM format. More than 90 national chapters (NCs) are working on strengthening integrity and transparency in their respective countries and regions. The Berlin-based secretariat (TI-S) supports the national chapters in their work and presses international bodies such as the OECD and OAS to draft international anti-corruption legislation. TI then monitors the implementation of the legislation on a country-by-country basis. TI activities around the world and in the Secretariat can be divided into awareness raising, information management, monitoring of the public and private sector, campaigning work for anti-corruption legislation, and project work.

What are the costs of corruption?
The cost of corruption is four-fold: political, economic, social, and environmental. On the political front, corruption constitutes a major obstacle to democracy and the rule of law. In a democratic system, offices and institutions lose their legitimacy when they are misused for private advantage. Though this is harmful in the established democracies, it is even more so in newly emerging ones. Accountable political leadership can not develop in a corrupt climate. Economically, corruption leads to the depletion of national wealth. It is often responsible for the funnelling of scarce public resources to uneconomic high-profile projects, such as dams, power plants, pipelines and refineries, at the expense of less spectacular but more necessary infrastructure projects such as schools, hospitals and roads, or the supply of power and water to rural areas. Furthermore, it hinders the development of fair market structures and distorts competition, thereby deterring investment. The effect of corruption on the social fabric of society is the most damaging of all. It undermines people's trust in the political system, in its institutions and its leadership. Frustration and general apathy among a disillusioned public result in a weak civil society. That in turn clears the way for despots as well as democratically elected yet unscrupulous leaders to turn national assets into personal wealth. Demanding and paying bribes become the norm. Those unwilling to comply often emigrate, leaving the country drained of its most able and most honest citizens.Environmental degradation is yet another consequence of corrupt systems. The lack of, or non-enforcement of, environmental regulations and legislation has historically allowed the North to export its polluting industry to the South. At the same time, careless exploitation of natural resources, from timber and minerals to elephants, by both domestic and international agents has led to ravaged natural environments. Environmentally devastating projects are given preference in funding, because they are easy targets for siphoning off public money into private pockets.

Can the costs of corruption be quantified?
The short answer is "no". Some experts use regression analyses and other empirical methods in order to try to put a dollar figure on the cost of corruption. It is virtually impossible, though, since payments of bribes are not publicly recorded. No one knows exactly how much money is being "invested" in corrupt officials annually. And bribes do not take only monetary form: favours, services, presents and so on are just as common. At most, one can research the correlation between the level of corruption and, say, democratisation, economic development or environmental degradation.The social costs of corruption are even less quantifiable. No one knows how much the loss of an energetic entrepreneur or an acclaimed scientist costs a country. Moreover, any estimated social costs in dollars would be inadequate to the task of measuring the human tragedy behind resignation, illiteracy, or inadequate medical care. A general scepticism vis-à-vis any attempt at quantifying the costs of corruption is thus warranted.The following example illustrates the dilemma of pressing the issue into facts and figures:
A power plant is being built somewhere in the world, at a cost of US$ 100 million. It could be argued that - were it not for corruption - the cost could have been as low as US$ 80 million. The financial damage to the public would then be US$ 20 million. In practice, quite often projects are planned simply so that those involved can make huge private profits. Assuming that the power plant was superfluous, the financial damage would have to be assessed at US$ 100 million. Yet no major construction project leaves the environment untouched. The results may be: increased pollution, a lowering of land prices, resettlement of local residents, an increased debt burden for the country, etc. This calculation - probably closest to reality - is immensely complex. On a global scale, it seems almost impossible. But even if one were able to calculate the environmental damage, the increase of the debt burden and other factors, how would one measure the erosion of public confidence and the deterioration of a government's legitimacy, which are the direct result of corruption?

Where is corruption most prevalent?
At a first, indiscriminate glance, the Corruption Perceptions Index (CPI), published annually by TI, seems to confirm the stereotypical notion that corruption is predominantly a problem of the South. While the Scandinavian countries come out on top, most of sub-Saharan Africa ranks at the bottom. It would not only be wrong to conclude, however, that - according to the CPI 2007 - Somalia and Myanmar are the most corrupt country in the world; it would also be counterproductive. The index is not intended to brand any one country, or to pit the North against the South. Rather, it is a tool to raise public awareness of the problem and promote better governance. Corruption is as much a problem of the North as it is of the South. Recent scandals in Germany, France, Japan, the US or the UK attest to that. It is well-established checks and controls that make the difference in proportion. People are as corrupt as the system allows them to be. It is where temptation meets permissiveness that corruption takes root on a wide scale. Such an environment is more likely in the emerging democracies of the South and East. There, administration and political institutions are still weak and pay scales are generally very low, tempting officials to "supplement" their income. In dictatorial systems, meanwhile, administrative and political institutions are nothing but an extension of the usurper's corrupt practices. The North also carries part of the responsibility for the situation in the South due to its role as the bribe-payer. After all, it is largely Northern corporate interests that supply the bribe payments. Until recently, governments of the North not only tolerated these corrupt practices, but they even rewarded them with tax deductibility. Fortunately, the 1999 OECD Anti-Bribery Convention has made the bribing of foreign officials a criminal offence. TI has addressed this aspect with its Bribe Payers Index (BPI), the logical complement to the CPI.In addition to the question of the regional pervasiveness of corruption, the issue of corruption by sector is also often raised. The BPI provides some statistical evidence as to which business sectors are most prone to corruption. According to these results, the problem of corruption is particularly prevalent in public works and construction, followed by the arms and defence industry. The sector with the least detected corruption was agriculture.

How does corruption affect people's lives?
Around the globe, corruption impacts people's lives in a multitude of ways. In the worst cases, corruption costs lives. In countless other cases, it costs their freedom, health, or money. Here are a few examples: In May 2000, 950 people were injured and 22 killed, when a fireworks factory in Enschede, the Netherlands, burst into flames. The explosion reached such catastrophic levels because government regulators turned a blind eye to grave security breaches with regard to storing explosives on the factory premises. In return for remaining silent, the officials are said to have received free fireworks for years. Even an illegal enlargement of the factory was legalised by the authorities a posteriori. The local government official in charge of monitoring fireworks factories in the area admitted to not knowing the specific regulations on the storage of explosives. Though considered an expert, he hadn't read the relevant literature, nor had he taken part in any training seminars. He only followed the instructions of his superiors, one of whom was arrested on corruption charges two years ago. A Swiss activist for the rights of the Penan, a nomadic people in the Malaysian rainforest, has been missing since May 2000, after he successfully drew international attention to the problem of the unscrupulous logging of Borneo's woods. Turning rainforest into palm plantations, the logging companies and government officials destroy the habitat of the indigenous rainforest nomads. In addition to threatening the lives of the Penan and those who fight for them, the excessive logging in Borneo contributes to the worldwide problem of deforestation, affecting the earth's climate. The corrupt co-operation between loggers and government also hurts the Malaysian people on the whole, as the money made by logging companies does not flow back into Malaysia's economy. A 1993 study showed that "log exports to Japan were under-declared by as much as 40 percent, thereby reducing the amount of export tax paid to the national treasury". (Sizer, Nigel: Practical Measures for Promoting Integrity and Curbing Corruption in the Forest Sector: A Contribution to the World Commission on Forests and Sustainable Development. Washington, D.C.: World Resources Intstitute, 1997.) Other examples of the impact of corruption abound: take the residents of shanty towns, who need to pay off city officials so that the little bit of living space they have built does not get torn down; or citizens harassed by police in their daily activities, having to pay left and right only to go about their business. Some bureaucracies only work if they are enticed by additional "rewards". In any case, grand and petty corruption is making life more difficult or outright threatens the lives of many people all over the world.

What kind of environment does corruption need to thrive in?
As indicated above, corruption thrives where temptation coexists with permissiveness. Where institutional checks on power are missing, where decision making remains obscure, where civil society is thin on the ground, where great inequalities in the distribution of wealth condemn people to live in poverty, that is where corrupt practices flourish. It cannot be stressed enough that corruption is alive and well even where political, economic, legal and social institutions are well entrenched.

Can corruption be seen as normal or traditional in some societies?
Critics argue that the fight against corruption is just another case of the West trying to impose its views and values on the South. Some go on to say that gift giving and taking in the public realm is a normal tradition in many non-Western cultures.The debate over cultural relativism and neo-colonialism is a contested one. Where concepts like public procurement procedures are unknown concepts, bribing public officials to secure public works contracts does not exist. Norms and values are context-bound and vary across cultures. Gift-giving is part of negotiating and relationship building in some parts of the world. But cultural relativism ends where the Swiss bank account enters the scene. It is a matter of degree: there are limits in all cultures beyond which an action becomes corrupt and unacceptable. When Olusegun Obasanjo, now President of Nigeria, criticised the corrupt practices of the dictatorial regime of Sani Abach, he was was imprisoned. He once commented that, in African tradition, "a gift is made in the open for all to see, never in secret. Where a gift is excessive, it becomes an embarrassment, and is returned." (Olusegun Obasanjo, "Positive Tradition Perverted by Corruption", Financial Times, 14 October 1994) It is precisely in order to account for cultural differences that TI has developed its national chapter system. People anchored in their societies have the best sense of what is customary, and what is a violation of the norm. Clearly the abuse of power for personal gain, the siphoning off of public or common resources into private pockets is unacceptable in all cultures and societies.

Are democracy and corruption (ir-)reconcilable?
In a modern democracy, the power of governing bodies is inherent in the political mandate given by the people. Power is entrusted and it is supposed to be used for the benefit of society at large, and not for the personal benefit of the individual that holds it. Thus corruption - misusing publicly entrusted power for private gain - is inherently contradictory and irreconcilable with democracy. That does not mean, unfortunately, that corruption cannot be found in democratic systems. Temptation remains a challenge anywhere. That is why it is all the more important to put in place control mechanisms and establish systemic hurdles to prevent people from abusing their power, as TI is seeking to do. Such mechanisms are more easily drawn up and introduced in established democratic systems, however, than in newly democratic or non-democratic ones.

Anomaly Committee of the National Council (JCM) to settle the anomalies arising out of the implementation of the Sixth Pay Commission's recommendation

Delays in Cheque Clearing

RBI / 2008-09 / 378

RPCD.CO.RF.BC.No. 88 / 07.06.00 / 2008-09

February 6, 2009

17 Magha, Saka 1930

All State Co-operative Banks (StCBs) and Central Co-operative Banks (DCCBs)

Dear Sir / Madam,

Delays in Cheque Clearing - Case No. 82 of 2006 before National Consumer Disputes Redressal Commission

As you may be aware, during August 2006, a case was filed before National Consumer Disputes Redressal Commission, New Delhi (the Commission) under the Consumer Protection Act, 1986 inviting attention to the delays in cheque clearing and, specifically, to the issue of float in local and inter-city clearing. Admitted in public interest as Case No. 82 of 2006, the complaint had named Reserve Bank of India (the Bank) and all Scheduled Commercial Banks (the banks) as respondents and sought adequate compensation by way of interest for delay in collection. 2. A number of affidavits were filed by the Bank and by the banks at various points of time and the case was finally disposed of by the Commission on August 27, 2008, with the Commission observing that the Bank with its wide range of powers under the Payment and Settlement Systems Act, 2007 would try to control the float, if any, arising due to delay in collection of outstation cheques. During the course of hearings, orders were passed by the Commission culminating in the final order on 'timeframe for collection of outstation cheques' which is available on the website @http:www.ncdrc.nic.in/CC820605.htm. 3. Notwithstanding the above, in the interest of better clarity as also to ensure compliance with the orders of the Commission, we reiterate the following:-

i) StCBs and DCCBs shall frame/ reframe their Cheque Collection Policies (CCPs) covering local and outstation cheque collection as per the timeframe prescribed by the Commission. ii) For local cheques, credit and debit shall be given on the same day or at the most the next day of their presentation in clearing. Ideally, in respect of local clearing, banks shall permit usage of the shadow credit afforded to the customer accounts immediately after closure of relative return clearing and in any case withdrawal shall be allowed on the same day or maximum within an hour of commencement of business on the next working day, subject to usual safeguards. iii) Timeframe for collection of cheques drawn on state capitals / major cities / other locations should be 7 / 10 / 14 days respectively. If there is any delay in collection beyond this period, interest at the rate specified in the CCPs of the bank, shall be paid. In case the rate is not specified in the CCP, the applicable rate shall be the interest rate on Fixed Deposits for the corresponding maturity. The timeframe for collection specified by the Commission shall be treated as outer limit and credit shall be afforded if the process gets completed earlier. iv) StCBs and DCCBs shall give wide publicity to the CCP by prominently displaying salient features thereof in bold and visible letters on the notice board at their branches. v) A copy of the complete CCPs shall be made available by the branch manager, if the customers require so.

3. Please treat the matter as urgent and advise our concerned Regional Office (RO) the action taken within a month's time from the date of this letter.

Yours faithfully

(B.P.Vijayendra) Chief General Manager

Revised Cost Estimates for the CSIR Project on “Spearheading Small Civilian Aircraft Design, Development and Manufacture”

The Cabinet Committee on Economic Affairs today gave its approval to the Council of Scientific and Industrial Research’s (CSIR) proposal relating to revised cost estimates of its project “Spearheading Small Civilian Aircraft Design, Development and Manufacture”. The revised proposal is at a total cost of Rs.172.80 crore up from earlier Rs.96 crore and revised time duration of 5 years up from earlier 4 years. The proposal is being implemented by the National Aerospace Laboratories (NAL), a constituent laboratory under CSIR. Considering the contributions already made by NAL in this area through 2 seater – HANSA and 14 seater light transport aircraft – SARAS, NAL / CSIR has been identified as the nodal agency for spearheading indigenous small aircraft programmes in the country.

The present proposal which was initiated during the 10th Five Year Plan of CSIR consists of four modules. The first module proposes design, development and certification of a 4 seater stretched HANSA aircraft. Such an aircraft was expected to play an important role in flying training, personal transportation, carriage of light packages and in low-end air taxi operations. The second module is on civil aircraft related R&D, Civil aviation policy research and Market analysis. The indigenous development of certain critical equipment both to increase the indigenous content of SARAS and also to guard against sudden embargoes is the part of the third module. The fourth module is addressing the weight optimisation, power optimisation and other improvements required on SARAS so that it can be made an operational aircraft with full payload and the required range.

With the implementation of this proposal, NAL/CSIR seeks to augment its premier position in civil aviation R&D.

Mr. Nikhilesh Jha, IAS (MT, 1984), JS joined CPWD as CVO

Mr. Nikhilesh Jha, IAS (MT, 1984), Joint Secretary in the Department of Scientific and Industrial Research, Ministry of Science and Technology has been appointed as Chief Vigilance Officer (CVO), Central Public Works Department (CPWD) under the Ministry of Urban Development. The post was held earlier by Mr. Ramnganing Muivah, IAS (MT, 1985).

Private Security Agencies Regulations Act, 2005

What ails Central health scheme

Healthcare is an ingredient of the most fundamental of all rights. The Indian Constitution has not conferred this right on its citizens, but the Central government employees, both in Delhi and outside, have an in-built structure in this regard. Over the years, the ministry of health has ensured an adequate healthcare network through the Central Government Health Scheme (CGHS) for its employees in major cities.
Started in July 1953 when Nehru was the Prime Minister, the contributory CGHS scheme with the twin objective of giving comprehensive medical care facilities and to avoid cumbersome medical reimbursement now covers over five million beneficiaries in Delhi and 25 important towns like Ahmedabad, Allahabad, Bangalore, Chennai, Guwahati, Hyderabad, Jabalpur, Jaipur, Kanpur, Kolkata, Lucknow, Meerut, Mumbai, Nagpur, Patna, Pune, Thiruvanathapuram, Bhubaneswar and Ranchi.
Initially conceived for government employees, the CGHS now covers Members of Parliament, former MPs, judges of the Supreme Court and High Courts (sitting and retired), freedom fighters, Central government pensioners and their families, former Presidents and former Vice-Presidents, former Governors and former Prime Ministers.
The CGHS has a wide network of nearly 400 dispensaries allopathic, Ayurvedic, homoeopathic, Unani, Sidha, yoga centres and polyclinics. Laboratories and dental units are also functioning under the CGHS.
In addition, the CGHS beneficiaries have been allowed to avail of treatment in leading private hospitals in Delhi and outside from September 1996. This list has further been enlarged to 60-65 private hospitals/diagnostic centres from 2001.
The credit goes to the Union ministry of health for having streamlined the procedure for obtaining treatment in some of the top private hospitals. In an emergency, the private hospitals provide credit facility to CGHS beneficiaries on production of a valid CGHS card not only in Delhi but a large number of private hospitals and diagnostic centres outside also.
In non-emergency cases, CGHS beneficiaries can obtain as advance even 90 per cent of the estimated cost given by a recognised hospital. Further, retired Central government servants residing in a non-CGHS area but registered as a CGHS beneficiary with the nearest CGHS covered city could obtain reimbursement of medical expenses incurred for heart operation and other treatment in a recognised private hospital after obtaining prior permission.
The Central government pensioners can directly go to an approved hospital and obtain treatment on production of CGHS card in an emergency.
While some of the allopathic dispensaries, more so in South Delhi, are working smoothly, corruption, misbehaviour and long lines of senior citizens, non-supply of medicines at one time, as also rude behaviour of doctors/ staff have been reported in a large number of CGHS dispensaries.
In a number of West Delhi dispensaries, the indented medicines are delivered after a lapse of few days. The poor government pensioners have to purchase their requirements from the open market for which there is no provision for payment. They have to visit the CGHS dispensary again and again. It is a breakdown of system in many cases.
All doctors manning CGHS dispensaries take an oath to serve the suffering humanity while receiving their medical degree; a number of doctors do follow it, but with the passage of time discontentment has crept in a section of the medical fraternity. They have forgotten the oath and it is the people who are made to suffer.
Recently, at a dispensary the prescriptions of a some patients were misplaced by doctors (names given to the CGHS director) and the aged beneficiaries were thrown out of the premises, pushed by a doctor himself. Every day, cases of ill-treatment, delay in supply of medicines are increasing, as stated by the minister in reply to questions in Parliament. The best treatment and medicines are available at the Parliament House Medical Centre meant for MPs and VIPs.
The health ministry is also playing a game of hide-and- seek with the accredited press correspondents. At the intervention of Sonia Gandhi, accredited pressmen were extended the CGHS benefit, but recently they have been excluded.
The main reason for the deterioration in CGHS services is the status of the CGHS director Dr Anita Nanda who has to serve under the Director General of Health, Dr RK Srivastava, and the ministry of health chain of joint secretaries and secretary (all IAS officers). She sits at Nirman Bhawan, while others of CGHS in two other buildings, making administration and coordination difficult.
As a major relief to Central government employees, Delhi High Court has ruled that they are entitled to full reimbursement of medical bills if they receive treatment at a private hospital that is on the government panel. Importantly, the court also said it is the duty of the government to ensure such hospitals do not charge more than what the government can pay. The judges virtually struck down the provision wherein some government departments allow only a limited reimbursement citing the CGHS as happened to a telecom staff, the petitioner in the case. He was reimbursed only Rs 1.3 lakh of the total bill of Rs 2.3 lakh being treated at the Escorts Heart Institute following a heart attack.
Further, it takes unduly long for reimbursement of claims from the health ministry because the funds allocated are used in the treatment of VIPs. The medical bills, for instance, of former Prime Minister VP Singh for his dialysis etc both in India and abroad are met from CGHS allocation.
According to reliable sources, none of the Indian hospitals provides facilities of running clean water for dialysis. All medical institutions, including five star hospitals, use stored tank water ~ not always suitable for dialysis. Despite RTI note sent over three months back, the health ministry has not given figures of CGHS expenditure incurred on VIPs ~ HN Bahuguna, VP Sathe, VP Singh, KR Narayanan and PV Narasimha Rao and others. Some people getting CGHS facilities say that the whole set-up is sinking deep and fast.

Courtesy : The Statesman

Govt agrees on Lt Cols pay hike demand

New Delhi, Feb 2 (PTI) After the armed forces rejected a proposal from Prime Minister's Office (PMO) to place only Lieutenant Colonels (Lt Col) in the Pay Band-4 (PB-4), who were in combat or ready-to-combat roles, the Government today "partially accepted" their demand by placing majority of them in the demanded pay bracket.
The letter sanctioning the demand was received by the Services headquarters today, Defence Ministry sources said here.

The grade-pay issue of Lt Cols with their IAS counterparts has still not been resolved.

As per the communication received by the services, Lt Cols have been upgraded to the pay bracket of Rs 37,400 -67,000 and will get a grade pay of Rs 8,000 from the earlier scale of Rs 15,600 - 39,100 with grade pay of Rs 7,600.

Services had demanded grade pay of Rs 8,700, which the IAS officers have been getting after the implementation of the 6th Pay Commission recommendations.

After this decision, majority of the Lt Cols will be upgraded to the PB-4. But officers on deputation to organisations such as National Highway Authority of India, IRCON and Pawan Hans will continue to be in PB-3.

The letter issued by Defence Ministry says that officers on postings with DRDO, DGQA, NCC, on deputation or on foreign assignments will be benefited by this move.

Officers posted with organisations such as Assam Rifles, National Security Guard and Border Roads Organisation will also be in the PB-4.

After the upgradation of pay scales, Lt Cols would now be senior to deputy secretaries in the Central Government, directors in state governments and senior superintendents of police. PTI

Clarification regarding pay fixation of existing Group 'D' employees in revised pay structure-24/12/2008

PSUs may have to exercise stronger vigilance

New Delhi: Public Sector Undertakings (PSUs) may be asked to follow stronger vigilance procedures after Satyam’s accounting fraud came to the fore. The central vigilance commission has suggested a technical audit of all purchases and procurements made by all PSUs and Government departments every year under the aegis of the CVC. In fact, the commission is on course to ask the department of public enterprises (DPE) to include integrity as an essential component for calculating the performance score of various PSUs at the end of every fiscal.

“We are working on these proposals and will soon write to the department of public enterprises. We have already held meeting with chairmen and managing directors of various government owned entities,” central vigilance commissioner Pratyush Sinha told The Indian Express.

Technical audit will assess whether an equitable, transparent and fair procurement policy was followed by PSUs while awarding contracts and tenders. “So far what we have is a vigilance audit dealing with how a complaint is handled and what punitive actions are taken. Technical audit will be aimed at making the processes more preventive than curative,” he said.

Courtesy : Indian express

Status of employees of Prasar Bharati and facilities to be extended to employees of Prasar Bharati

Provided that the Central Government may transfer by order with effect from such date or dates as may be specified in the order to the Corporation any of the officers or other employees serving in the Akashvani or Doordarshan and engaged in the performance of those functions. However, the services of the existing employees of AIR and Doordarshan could not be transferred so far to the Corporation due to opposition from the employees. As such they continue to be Government servants on “deemed deputation” to Prasar Bharati. However, since they were working in an autonomous organization into which they were eventually to be absorbed, there was uncertainty regarding their status. They were encountering difficulties in getting CGHS facilities, General Pool Accommodation and admission of their wards to the Kendriya Vidyalayas as they were not treated as Government servants but as employees of an autonomous organization. The employees had been agitating for an early decision regarding their status.

To end the uncertainty about the status of employees of Prasar Bharati, the Cabinet has decided as follows :

(i) All Central Government employees, recruited for the purposes of and working in Akashvani or Doordarshan, as on the appointed day are on deemed deputation to the Corporation w.e.f. 1.4.2000 and will continue on deemed deputation till the time of their retirement.

(ii) All employees, recruited for the purposes of an working in Akashvani or Doordarshan, as on the 5^th October, 2007 (i.e. the date on which the GOM on Prasar Bharati took a decision in this regard) on vacant government posts and recruited as per government rules, shall enjoy status equivalent to employees serving on “deemed deputation” as above from the date of their joining service under Akashvani and Doordarshan till the time of their retirement. They will be eligible for all facilities available to Central Government employees ( including general pool accommodation, CGHS and Kendriya Vidyalaya) and all retirement and pensionary benefits also irrespective of whether Prasar Bharati is considered to be on Autonomous organization. However, the employees recruited between 1.1.2004 and 5.10.2007 shall be covered by the new Pension scheme made effective by the Central Government w.e.f. 1.1.2004.

(iii) All the employees referred to in (i) & (ii) above shall be entitled to the pay scales and all other benefits as per their entitlement as Central Government employees. However they shall not be entitled to any deputation allowance.

(iv) With effect from 6^th October 2007, all existing vacant government posts stand transferred to Prasar Bharati and all persons recruited against those posts or who actually join service in Prasar Bharati after the said date (even though recruitment process or the appointment letter may have been issued prior to 5^th October 2007) shall be Prasar Bharati employees and subject to such rules and regulations governing their employment as may be approved by the Prasar Bharati Board.