Recent Post Headlines

Sunday, November 15, 2009

Thursday, October 29, 2009

Brief on CSIR Transformation and proposed Restructuring of the Common Cadre

Govt can frame guidelines for DPCs: CAT

New Delhi, Oct 28 (PTI) The Central Administrative Tribunal (CAT) has held that government can frame guidelines for departmental promotion committees (DPCs) and judiciary will not question its validity so long as it provides level playing field for all candidates.

"The government has a right to frame the guidelines for the DPCs and there cannot be any judicial interference in such case, unless the same are perverse or are drafted to favour a class of candidates," CAT Vice Chairman L K Joshi and Member Meera Chhibber said.

The tribunal passed the order on a plea of a Delhi police sub-inspector, challenging the promotions made on the basis of 2008 circular which issued guidelines for the DPC to promote eligible police personnel.

The sub-inspector, Ram Niwas, contended that DPC should have followed 2005 guidelines for promotions and not the 2008 guidelines which was issued after creation of vacancies.

Saturday, September 26, 2009

CSIR Celebrates its Foundation Day

The challenge before science today is to make significant improvement in the life of “Aam Aadmi”. Shri Prithviraj Chavan, Union Science and Technology minister, speaking on the occasion of CSIR Foundation Day said today here at Vigyan Bhawan. He congratulated CSIR for the important achievements made in the field of Science and Technology and Research and Development. The minister also greeted various awards winners in different discipline in the field of Science and Technology. He stressed the need to convert our Research and Development units into innovation creating institutes. Recalling Pandit Nehru’s commitment to scientific development, he said that Pandit Nehru believed that “It is science alone that can solve the problems of hunger and poverty....”. The same approach was continued during Mrs. Indira Gandhi and Rajiv Gandhi’s regime. Shri Chavan lauded the support extended by present Prime Minister Dr. Manmohan Singh to scientific development in the country. Shri Chavan added that because of our robust and appropriate economic policy being followed since 1991, we could withstand the pressure of global melt down and sustain our growth rate. Shri Chavan applauded the efforts of CSIR in the field of scientific research and development in general and encouraging innovative programme of giving scholarship to students of 10th and 12th standard and further funding their research work till the age of 32 years in particular. He called upon CSIR to help developing Scientific Temper among our citizens.

            Shri Nandan Nilekani, Chairman of Unique Identification Authority of India (UIDAI) delivered CSIR Foundation Day lecture. He enlightened the audience about the importance of Unique Identification Number to be given to each Indian, the mammoth task he is presently handling. Under this UID Number, there will be basis demographic and biometric information about an individual. There will be no duplication as it will be a centralised database on biometric basis. The most unique feature of this number will be online authentication of Identity of an individual on cell phone network. Though this UID will not confer any right on a citizen still it would enhance power of Identity, access to services, direct benefit to poor. With the introduction of UID the implementation of flagship scheme would be fool proof and chances of fraud would be reduced to minimum. Shri Nilekani further inform that new UID would combine data basis of multiple agencies of food and supply departments, panchayat, gas agencies, education institutions, LIC, passport office etc. Enrolment under UID would be valid for lifetime identification. He also threw light on various challenges to be faced by UID project which included technological challenges, architecture challenges, network infrastructure related and demographic challenges. He expressed hope that CSIR would help UIDAI building a basic framework for this project by giving the benefits of various technological advancement and innovations in research and development work.

            On this occasion names of eleven scientists selected for 2009 Shanti Swarup Bhatnagar Award for Science and Technology were also announced. Shri Prithviraj Chavan gave away CSIR Young Scientist Award 2009, CSIR Technology Awards 2009 and CSIR Diamond Jubilee Invention Award for School Children 2008. Under the category of CSIR Young Scientist Award for the year 2009 six young scientists were awarded in five disciplines namely Dr Fayaz Ahmad Malik, Department of Pharmacology, Indian Institute of Integrative Medicine, Jammu in Biological Sciences, Dr. Srihari Pabbaraja, Organic Division I, Indian Institute of Chemical Technology, Hyderabad in Chemical Sciences, Dr. Balaraman Madhan, Centre for Human & Organizational Resources Development, Central Leather Research Institute, Chennai in Engineering Sciences, Dr K V Ramesh, CSIR Centre for Mathematical Modelling and Computer Simulation (C-MMACS) Bangalore and Dr. Nimisha Vedanti, Fractals in Geophysics Group, National Geophysical Research Institute, Hyderabad in Earth, Atmosphere, Ocean & Planetary Sciences, Dr. Debi Prasad Das, Process Engineering and Instrumentation Cell, Institute of Minerals and Materials Technology, Bhubaneswar, in Physical Sciences.

 CSIR Technology Award 2009 in the category of Physical Sciences including Engineering was given to Team IIP at Indian Institute of Petroleum, Dehradun and CSIR Technology Award 2009 for Innovation to Team CDRI at Central Drug Research Institute, Lucknow. Each Award carries a cash prize of Rs.2 lakh, a plaque and a citation.

Under the category of CSIR Diamond Jubilee Invention Award for School Children 2008, Second prize (Rs.25000/-) to Miss Neha Lalit Sharma, Class 11th (Mumbai), Third prize (Rs.15000/-) to Master Harjas Singh Sodhi, Class 8th (New Delhi) and Fifth prize (Rs.5000/- each) to Master Shikhar Bhandari, Class 12th (New Delhi), Master Vishakh Hegde, Class 11th (Bangalore), Master V Pranav, Class 9th (Mysore) were given. No first prize was given this year.

Thursday, September 10, 2009

Release of additional instalment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.7.2009

The Cabinet has decided to release an additional installment of Dearness Allowance (DA) to Central government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2009 representing an increase of 5% over the existing rate of 22% of the Basic Pay/Pension, to compensate for price rise. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.

Tuesday, September 8, 2009

India Innovation Pioneers Challenge 2009-Dr. Sudipta Saha, Indian Institute of Chemical Biology

Department of Science and Technology (DST), Indo-US Science and Technology Forum (IUSSTF) and Intel have partnered on building technology entrepreneurship programs in India. The objectives of the program are to create an entrepreneurial ecosystem in India, boost entrepreneurial spirit in Indian academia and scientific enterprises through business plan competitions, and to build a curriculum on technology entrepreneurship for Indian academia.

India Innovation Pioneers Challenge 2009 is an innovative technology business plan competition that provides an unparalleled avenue of opportunities for emerging entrepreneurs to explore and share ideas and gain insight for commercializing their venture through the mentoring and networking support that are integral to the competition.

India Innovation Pioneers Challenge 2009 has taken the definition of a "Business Plan Competition" to a level higher than ever before as it offers an unlimited opportunity for aspiring entrepreneurs to plan for commercialization of their venture.

It provides young innovators with:

  • A platform to showcase technology
  • Smart commercialization strategies
  • Guidance from experts and mentors
  • Excellent funding opportunities
  • Global business opportunities
  • International experience of a lifetime

  • Winners of Scholar Sparks 2009

    The winners of India Innovation Pioneers Challenge 2009 were announced by Mr. Prithviraj Chavan, Hon’ble Minister of State (Independent Charge), Ministry of Science and Technology & Earth Sciences, Govt. of India, at a ceremony held at Taj Palace Hotel, New Delhi on the 28th of August 2009 in the presence of Dr. T. Ramasami, Secretary Department of Science and Technology, Government of India and Dr. Praveen Vishakantaiah, President, Intel Technology, India.

    The top three teams under Scholar Sparks category received cash award of Rs Three lakhs (First prize), Rs. One lakh (Second prize) and Rs. Fifty thousand (Third prize) respectively. Besides this, two teams recognized as “Honorable Mentions” from the jury received a cash award of Rs. Twenty five thousand each
    Also the top two teams from the Scholar Sparks category will be representing India at the Intel-University of California, Berkeley Technology Entrepreneurship Challenge 2009.

    Awardees Details:

    First Prize:Rs 3 lakhs cash award
    Also an opportunity to participate at the Intel-University of California, Berkeley
    Technology Entrepreneurship Challenge 2009
    Team Name: Intraosseous Device
    Team Members & Institute:Jayant Sitaram Karve & Srinivas Kiran Jaggu; Stanford
    India Biodesign Centre, (AIIMS) New Delhi

    Business Plan Description:
    IntraOz is a novel medical device start up which aims to provide an alternative to difficult intravenous (IV) access in medical emergencies. This technology comprises of applying progressive vacuum at needle tip as it progresses inside the marrow and gives visual indication. Fluids and medications infused via IO lines reach the central circulation in equivalent speed of intravenous infusion. The market potential for IntraOz will be an estimated 1.3 million patients (including pediatrics & adults) annually.

    Second Prize:Rs. 1 lakh cash award
    Also an opportunity to participate at the Intel-University of California Berkeley
    Technology Entrepreneurship Challenge 2009

    Team Name: µSpore
    Team Members & Institute:Prabhakar Kulkarni, Agharkar Research Institute, Pune

    Business Plan Description:
    µSpore is a novel patented technology for long term storage and transportation of DNA samples using microcapsules isolated from spores and pollen grains, which are in the form of micronic or sub-micronic capsules. The application areas for the technology cover forensic science, health care, pharmaceuticals, medicine, military and basic research. The technology is cheaper, eco-friendly & easy-to-handle and will be accessible and affordable to users even from economically underprivileged nations.

    Third Prize: Rs. Fifty Thousand cash award
    Team Name: Indigenous Dental Implants
    Team Members & Institute: Dr. Manjeet Mapara & S.M. Abdul Khader; Manipal College of Dental Sciences, Manipal Institute of Technology

    Business Plan Description:
    Indigenous Dental Implants is a project that attempts to make a new biotechnology accessible to the general Indian population and also to enhance the surgical skills of Indian dentists in the field of Implantology. The technology involves a special laser treated bioactive surface for the dental implant which is superior & cheaper compared to all the contemporary implants in the market. The product aims at attracting a huge market comprising of upper middle class & middle class population in India with the cost advantage.


    Honorable Mentions:
    Team Name: Innovation Challenger Kolkata
    Team Members & Institute:Dr. Sudipta Saha, Indian Institute of Chemical Biology,
    Prize:Rs. 25000 cash award

    Business Plan Description:
    This project deals with a unique computer-based spectrophotometric system to determine "vertical velocity" of the spermatozoa. It has been developed using the turbidimetric method of sperm motility analysis. This technology will be extremely helpful for treatment of human infertility and planning of animal breeding programmes. The potential market will comprise of various human infertility clinics, sperm banks, animal breeding centers, research laboratories and centers for conservation of endangered species, etc

    Team Name: The Mavericks
    Team Members & Institute:Nakul Khanna & Abhinav Bansal, G.D. Goenka Public School, Delhi
    Prize:Rs. 25000 cash award

    Business Plan Description:
    This team has developed a Massaging Shoe. The idea is to provide solutions for people suffering from daily stress by incorporating massaging devices in their shoes. These devices are small enough to fit into an ordinary shoe and are powered by rechargeable batteries so that they can be used on the go and doesn’t require one to carry around bulky massaging devices. Along with its massaging effect it also has a therapeutic effect; hence it will be a boon to those suffering from lifestyle disease such as diabetic feet, etc.

    E-governance drive gets a babu beating

    An ambitious government plan to revolutionise the trundling pen-pushing procedures of the Indian bureaucracy, by aligning it with an e-enabled computerfriendly regime, is facing opposition from within.

    The "Central Secretariat Manual of e-Office Procedure", the first draft of which was circulated recently by the department of administrative reforms and public grievances (DARPG), is aimed at bringing higher efficiency, transparency and accountability among government officials.

    However, computer- unfriendly Indian officials wary of e-enabled changes in the working environment are opposing the move citing concerns over privacy, legality and lack of computer training.

    The existing manual on office procedure lays down in great detail how a central government office should function, right from the point at which a file is created till a decision is taken at the highest echelons of the government.

    Now, in line with the government"s thrust on e-governance, the DARPG"s new "electronic" version of the draft manual incorporates changes in the system so that a "modern office environment" can be created.

    Steps have been taken to improve the core spirit of the previous manual by "incorporating procedures to support electronic environment and introducing transformational opportunities after due deliberation," reads the objective of the draft, prepared by National Institute of Smart Government (NISG), Hyderabad, and PricewaterhouseCoopers.

    The draft makes far- reaching proposals. It suggests that chatting on the Net between on an issue can be a time-saving way of arriving at a decision and should be recognised as a means of "official communication". It also says that an exchange of SMSes between officers after sending a file from one office to another over the electronic system should be recognised as a way of acknowledging that the communication has been duly dispatched and received.

    But the seemingly radical move"though similar steps are already a commonplace in Indian businesses"involves computer literacy. The bureaucracy"s well-known resistance to change and "fear" of the digital world are key factors that are acting as roadblocks in the way of introducing the e-enabled system.

    Privately, senior government officials are candid about their reasons for resisting the new move. "I am not ready to look at a computer screen from 9 am to 5 pm every day. There are the issues of eyesight and legality. How do you sign a file? How do you incorporate changes? At present, several drafts are made and discarded. I do not understand how you can do that on a computer," said a senior bureaucrat speaking on the condition of anonymity.

    A joint secretary in the government said, "I have gone through it (the "Central Secretariat Manual of e-Office Procedure"). It reads like a dream manual. Even if partially adopted, it will not only save time but bring about accountability, efficiency and transparency. But, to suddenly change the way we have been working is a huge challenge."

    Another official said "the most difficult part" for the bureaucracy, which is comfortable with the paper filing system, is to learn computer and Internet usage. Aware that officials would oppose the draft manual of e-office procedure, the government has said it will do what it takes to support the changeover to e-governance.

    It is ready, for instance, to provide
    as many computers as an office needs. Under the rules, government departments are expected to spend 5 per cent of their budget on information technology, including the purchase of computers and allied systems.

    The e-manual draft document takes pains to address other concerns raised by the bureaucrats from the "old school". It says how a file should be created and moved. The originating department should send the file in a digital format to another department.

    The receiving office should then create a "shadow e-file" at its end and this document would then be moved to different sections and officers for their opinions. Before the document is sent back to the originating department, only the final result of this process would be recorded on the e-file by the officer concerned.

    Assigning an e-number to the file so that it becomes an instantly retrievable record is the task of the "Dak" section.

    "The department will open subject-wise e-files each year in which such routine notes will be kept. The inter-departmental note recorded on the e-file of the originating department will bear the subject e-file number to facilitate storage and retrieval for future reference," says the document.

    Since government departments already have a huge volume of existing physical records, the manual proposes that when a department switches over to the e-office system, the existing physical files will have to be scanned and digitised.

    It proposes that while all current/live files may be scanned and digitised, semi-current/nonlive files can be preserved only on a need basis. "All closed physical files which contain decisions of longer lasting value from the angle of running the department may also be scanned/ digitised. All important treaties/agreements etc may also be scanned digitised," it says.

    Some of this language may be obscure for government officials and could make the move to the new modern system more difficult than it appears. To begin with, government officials are under no obligation to dump the existing filing system.

    Some government departments, however, had adopted egovernance earlier. These are departments that have a direct interface with the public--like issuing various types of licences, collecting taxes, issuing passports, public grievance registries, those responsible for land record management and ticketing systems.

    Yet, age-old habits of officials in most departments have acted to discourage the shift to an e-enabled environment.

    "I know some secretary-level officers whose personal assistants place printouts of emails on their tables every morning. To make the manual successful, it has to be made mandatory in a time-bound manner. Computers must not be used as stylish typewriters," said a senior officer posted at Planning Commission.

    Courtesy: Mail Today

    Monday, September 7, 2009

    Huge response to DoPT On-line Course on RTI (PIB)

    The Department of Personnel and Training (DoPT), Online Certificate Course on RTI began today on a pilot project basis. The 15-day course started on a Pilot Project basis is being taken by various stakeholders on, both, the demand and supply sides of the RTI implementation regime. This Course on RTI is in association with the Centre for Good Governance, Hyderabad. The first batch has 60 candidates. The response to the course was overwhelming with 1452 applications. Those other than in the Pilot batch will be covered in subsequent batches.

    The Online Certificate Course is aimed at:

    >> Public Information Officers (PIOs)
    >> Assistant Public Information Officers (APIOs)
    >> Appellate Authorities
    >> Officials assisting the above designated officers or other public officials
    >> Citizens
    >> Representative of Civil Society Organisations (including Media Organisations)
    >> Any other person(s) who could be a direct/indirect stakeholder

    The objectives of the Course are:

    >> Reaching out to those who have not had an opportunity to participate in any training/sensitization initiatives on RTI Act, 2005
    >> Bringing greater clarity on RTI among designated implementing officials like APIOs/ PIOs/ FAOs
    >> Ensuring appreciation for RTI Act, 2005 and its mandate among the officials designated under it and also among the citizens
    >> Facilitating timely delivery of information by PIOs
    >> Having better informed citizens, civil society and other stakeholders

    The outcomes expected from this initiative are:

    >> A sound knowledge of the provisions of the RTI Act, 2005 among the people taking this course
    >> Good understanding of the roles and responsibilities of organizations/ persons concerned with implementing the law and with enforcing the rights under this law
    >> Proper appreciation of rights/obligations as applicable for effective use of RTI
    >> Reliable guidance on following the right process/procedure to implement the provisions of this Act and to benefit from this Act.
    >> Good understanding of remedies available when an implementing organization fails to comply with this Act.

    Expenditure Management - Economy Measures and Rationalization of Expenditure 2009






    Wednesday, September 2, 2009

    Fixation of pay on deputation after introduction S-30 scale-clarigication dated 28/08/2009






    Extension of NPLB to Autonomous bodies



    Clarification regarding deduction of tax at source from payments of second installment of arrears to Government employees

    Circular No-6/2009
    F.No.275/192/2008-IT(B)
    Government of India
    Ministry of Finance
    Department of Revenue
    Central Board of Direct Taxes
    *****
    New Delhi, dated the 31st August, 2009.
    Subject :- Clarification regarding deduction of tax at source from payments of second installment of arrears to Government employees on account of implementation of Sixth Central Pay Commission’s recommendations matter regarding.
    Under the provisions of Section 192 of the Income-tax Act, an employer is required to deduct tax at source from any payments in the nature of salary, which interalia also includes any arrear payments. The Implementation Cell of the Department of Expenditure, Govt of India, vide its Office Order dated 30th Aug’08 had stated that 40% of the aggregate arrear (first installment of arrears) would be payable during FY 2008-09. In Circular No. 09/2008 dated 29th Sept.2008 issued from this office it was stated that during 2008-09 the tax has to be deducted at source on this 40% of aggregate arrear during FY 2008-09.The OM,F.No-1//1/2008-IC, of the Implementation Cell of the Department of Expenditure, Govt of India, vide its order dated 25th August,2009 has stated that the remaining 60% of the aggregate arrear (second installment of arrears) would be paid to the concerned Government servants during FY 2009-10. Such arrangements could be followed by State Governments also.
    In this regard, all the DDOs and PAOs as the case may be, in the Central/State Government and various organizations under them are advised to compute the correct tax liability of every employee on second installment of arrears drawn by him and immediately recover the full tax liability along with education cess thereon at the rates in force. The deduction of tax at source on such arrear payment should not be deferred in any circumstance. They should further ensure that the tax so recovered is paid to
    the account of Central Government account immediately as per the Income Tax Rules, 1962. The DDOs/PAOs are further advised that they should ensure that the PAN details of the deductees (recipient of arrears) are correctly quoted in the relevant quarterly e-TDS returns filed by them so that the Government Servants get proper credit of their tax deducted in their respective income tax returns.
    DDOs/PAOs who fail to comply with the provisions of Section 192 of the Income-tax Act, 1961 would be liable to pay interest under section 201(1)/(1A) of Income Tax Act along with other penal consequences.

    ( Ansuman Pattnaik )
    Director ( Budget )

    Sunday, August 30, 2009

    CIC request to the Department of Expenditure to set-up a system whereby employees and their associations can bring up their concerns




    CIC decision on RTI of Shri Jai Prakash, FAO, IMTECH Chandigarh.




    Faq's on Digital Signature Certificate

    Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. Examples of physical certificates are drivers' licenses, passports or membership cards. Certificates serve as proof of identity of an individual for a certain purpose; for example, a driver's license identifies someone who can legally drive in a particular country. Likewise, a digital certificate can be presented electronically to prove your identity, to access information or services on the Internet or to sign certain documents digitally.
    Like physical documents are signed manually, electronic documents, for example e-forms are required to be signed digitally using a Digital Signature Certificate.
    A licensed Certifying Authority (CA) issues the digital signature. Certifying Authority (CA) means a person who has been granted a license to issue a digital signature certificate under Section 24 of the Indian IT-Act 2000.
    The different types of Digital Signature Certificates are: Class 2: Here, the identity of a person is verified against a trusted, pre-verified database.

    Class 3: This is the highest level where the person needs to present himself or herself in front of a Registration Authority (RA) and prove his/ her identity.
    The cost of obtaining a digital signature certificate may vary as there are many entities issuing DSCs and their charges may differ.
    The time taken by CAs to issue a DSC may vary from three to seven days.
    The Certifying Authorities are authorized to issue a Digital Signature Certificate with a validity of one or two years.
    Digital Signatures are legally admissible in a Court of Law, as provided under the provisions of IT

    Grant of Non-productivity linked bonus for the year 2008-09




    Wednesday, August 26, 2009

    Reduction in tatkal charges from 1st October 2009

    As announced by the Minister for Railways, Kumari Mamata Banerjee while presenting Railway Budget 2009-10 in the Parliament, the Ministry of Railways has decided to reduce the Tatkal Charges w.e.f. October 1, 2009.

    The new Tatkal charges will be at the rate of 10 per cent of basic fare for second class and 30 per cent of basic fare for all other classes subject to minimum and maximum as given in the table below:

    Class of Travel

    Minimum Tatkal Charges (in Rs.)

    Maximum Tatkal Charges(in Rs.)

    Second (sitting)

    10.00

    15.00

    Sleeper

    75.00

    150.00

    AC Chair Car

    75.00

    150.00

    AC 3 Tier

    200.00

    300.00

    AC 2 Tier

    200.00

    300.00

    Executive

    200.00

    300.00

    The above charges will be levied uniformly both in peak period and non-peak periods. Tatkal tickets will be issued for actual distance of travel, instead of end-to-end, subject to the distance restriction applicable to the train. The same Tatkal berth/seat may be booked in multiple legs till preparation of charts. At the time of preparation of charts, unutilized portion may be released to the General RAC/Waiting list passengers.

    Tatkal facility will be introduced in Executive Class of Shatabdi Express trains also, by earmarking 10 per cent of the accommodation available i.e. 5 seats per coach

    The existing refund rules of tatkal tickets will remain unchanged.

    Earlier, the Ministry of Railways has decided to reduce the Advance Reservation Period (ARP) under Tatkal Scheme from five days to two days (excluding the date of journey) for journey commencing w.e.f. 01.08.2009.

    Online Certificate Course on RTI by DoPT

    The Department of Personnel and Training (DoPT), Ministry of Personnel, Public Grievances and Pensions, Government of India (GoI) has launched an 'Online Certificate Course on RTI' for various stakeholders on, both, the demand and supply sides of the RTI implementation regime.

    This Online Certificate Course on RTI is launched in association with the Centre for Good Governance, Hyderabad.

    This Online Certificate Course is aimed at:

    • Public Information Officers (PIOs)
    • Assistant Public Information Officers (APIOs)
    • Appellate Authorities
    • Officials assisting the above designated officers or other public officials
    • Citizens
    • Representative of Civil Society Organisations (including Media Organisations)
    • Any other person(s) who could be a direct / indirect stakeholder
    Registration for the 1st batch starts from 24.08.2009, 9.00 AM and ends on 03.09.2009, 9.00 PM.

    Click here to register

    60 % of Pension arrears- Latest by 30/9/2009



    Saturday, August 15, 2009

    Amendment to Rule 33-B of GPF (CS) Rules, 1960 - Issue of Notification dated 27th May, 2009, published in the Gazette of India on 6th June, 2009 -




    CCS (Conduct) Rules, 1964 - Guidelines regarding prevention of sexual harassment of working women in the workplace, GoI OM dated 3/8/2009




    Regulation of additional pension- proof of age, GoI OM dated 11/08/2009




    Payment of interest on accounts frozen by banks

    RBI/2009-10/119
    DBOD.No.Leg.BC.30 /09.07.005/2009-10

    August 12, 2009

    All Scheduled Commercial Banks
    (Excluding RRBs)

    Dear Sir,

    Payment of interest on accounts frozen by banks

    Please refer to paragraph 5.8.9 of our Master Circular DBOD.No.Leg.BC.9/ 09.07.006/ 2009-10 dated July 1, 2009 on Customer Service, wherein banks have been advised to follow the procedure laid down thereunder in respect of Term Deposit Accounts frozen by the enforcement authorities.

    2. In terms of paragraph 5.8.9 (i), banks were advised to obtain a request letter from the customer for renewal for a term equal to the original term, on maturity. On a review, it is felt that instead of renewing it for a term equal to the original term, it would be appropriate if the depositor is given the option to choose the term for renewal of the deposit.

    3. Banks may, therefore, while obtaining the request letter from the depositor for renewal, also advise him to indicate the term for which the deposit is to be renewed. In case the depositor does not exercise his option of choosing the term for renewal, banks may renew the same for a term equal to the original term.

    Yours faithfully

    (B.Mahapatra)
    Chief General Manager

    Thursday, August 13, 2009

    Government mulls raising retirement age to 62 yrs

    Aditi Phadnis / New Delhi August 13, 2009, 0:56 IST

    Move aimed at easing strain on finances in a drought year.

    The government is actively considering raising the retirement age of all central government employees, including those in the armed forces, from the present 60 to 62 years.

    Finance Minister Pranab Mukherjee has submitted a report to the prime minister outlining all the pros and cons of the move, including the “cascading effects” on government employment and the huge savings, at least for two years, on account of retirement payouts.

    If the Department of Personnel and Training (DoPT) and the prime minister find the arguments forwarded by the finance ministry credible and convincing, the announcement may come as early as August 15, as part of Manmohan Singh’s Independence Day speech.

    The Cabinet may discuss the matter tomorrow.

    Although the finance ministry is making a strong case for the move, the DoPT is taking time to make up its mind, possibly out of consideration for the 1979 batch of the Indian Administrative Service (IAS) and other central services. Officers of the 1979 batch have been empanelled for promotion to the ranks of additional secretary and secretary but can take up their posts only after the present incumbents retire. If an announcement extending the retirement age comes before November, a batch of empanelled joint secretaries stand to lose their future ranks. In turn, this will also affect those who joined the central administrative services in 1980. The DoPT also says that the age profile of Indian bureaucrats, instead of becoming younger, will become older, out of tune with the rest of the world.

    For the finance ministry, the gains from the move are clear. The pension payout of all armed forces personnel of the rank of Lieutenant General and equivalent who were to retire this year will be postponed by 24 months; the government will also defer by two years the liability of paying pension to more than 100,000 employees. While salaries will have to continue to be paid, this will be cheaper than paying upfront benefits like gratuity.

    This is all the more important given the government’s other financial liabilities on account of stimulus spending and one drought, though the effects of the latter will kick in only in the next fiscal year. The fiscal deficit is 6.8 per cent of gross domestic product this year and a two-year lag in paying pensions will help in bridging this.

    In 1998, the National Democratic Alliance government had raised the retirement age from 58 to 60, a move that benefitted 90,000 government servants and 50,000 defence personnel. At the time, the logic was: the retirement of 140,000 employees would have cost Rs 5,200 crore whereas paying salaries cost only Rs 1,493 crore.

    That move came in the wake of the 5th Pay Commission report which had just been implemented by the then United Front government. In 2003, the government also right-sized the central government employee workforce by 30 per cent.

    Every time the Centre announces an increase or concession on pay packages, both public-sector units and state governments follow suit. If the prime minister does decide to raise the retirement age, state governments and Public Sector Units (PSUs) will mirror this action. This has its own implications for many cash-strapped states like Punjab.

    If the decision is finally taken, it will only be the third time the government will have raised the retirement age. Jawaharlal Nehru was the first prime minister to have increased the age of superannuation from 55 to 58 following the 1962 war with China. The Atal Bihari Vajpayee government did it a second time in 1998.

    Courtesy: Business Standard

    New Delhi, Aug 9 (PTI) The Central Administrative Tribunal has held that only a medical expert, not a departmental authority, is "competent" to certify if treatment administered on a government employee is an emergency case deserving medical reimbursement.

    "Medical reimbursement cannot be claimed as a right in the context of financial burden on the government but when a laid down policy is there... then the authority, which is competent to certify an emergency, cannot be a departmental authority," the tribunal comprising members Shanker Raju and Veena Chhotray said.

    "It is only an expert in the field, which is competent and has jurisdiction to certify whether the treatment incurred was in a state of emergency or not," the CAT said.