Nominee of bank account does not get succession rights

The Supreme Court (SC) has clarified the nominee of a depositor in a bank does not get ownership of the money in the account after death of the depositor. The nominee gets exclusive right to receive the money lying in the account. It gives him all the right of the depositor as far as the depositor's account is concerned, according to Section 45ZA of the Banking Regulation Act. But the banking law is not concerned with the succession. The money in the account will form part of the estate of the deceased depositor and devolve according to the rules of succession. In this case, Ram Chander vs Devender Kumar, one son was the nominee of his mother. After her death, he claimed he was the owner of the money in the account, to exclusion of his brother. The same rule will apply to government savings and other investments.

Casual workers can't claim permanent appoitment as right: CAT

Press Trust Of India

New Delhi, November 16, 2010

A temporary employee or a casual wage earner cannot claim permanent appointment merely because he served beyond the period for which he was recruited, the Central Administrative Tribunal has held.

"Merely because a temporary employee or a casual wage worker is continued for a time beyond the term of his appointment, he would not be entitled to be absorbed in regular service or made permanent," a bench of members M Chibber and AK Mishra said.

The Tribunal passed the order on an application by Umrav Singh Rawat, a temporary employee of Directorate General of Central Excise Intelligence, seeking regularisation of his services.

Rawat had contended that despite working satisfactorily, his services were terminated suddenly by the Directorate without giving him any notice.

The Directorate opposed Rawat's plea on the ground that the temporary status granted to him was withdrawn as his services were no longer required by it and being a contractual employee, he could not claim regularisation as a matter of right.

Citing an apex court ruling, the tribunal said casual employees cannot claim employment as a matter of right.

"It is clear that a person who is engaged on casual basis has no right to continue. His engagement comes to an end when it is discontinued," it said.

 

Procedure Simplified for issue of Disability Certificate

The Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Rules 1996 have been amended in December last year. The amended rules enable a simplified and decentralized procedure for issue of disability certificate. Disability certificate can now be issued by a single doctor in respect of obvious disabilities at the level Primary Health Centre (PHCs)/Government Medical Practitioner, Community Health Centres and Hospitals at the Sub-Divisional level. In case of non obvious disabilities, certificate can be issued by a specialist. Only in case of multiple disability, a Medical Board is required. Further, Medical Certificate is to be issued as far as possible within 7 days from the date of application but in any case not later than one month.

State Governments have also been requested to make similar amendments in their PwD Rules and notify their medical authorities accordingly.

A Committee consisting of representatives of various stake holders, experts in disabilities etc. has been set up in April this year to study the suggestions received from State Governments, concerned Central Ministries and several other sources on the proposed amendments to the PwD Act, 1995 and to prepare a new draft Legislation aligning it with the provisions of the United Nations Convention on the Rights of Persons with Disabilities.

This information was given by Shri. D. Napoleon, the Minister of State for Social Justice & Empowerment, in a written reply to a question in the Lok Sabha .

OBC quota only for fresh recruits

Ruling that the OBC quota policy is applicable only for fresh appointments, the Central Administrative Tribunal (CAT) has said the benefit cannot be claimed for posts that are filled by promotion.

The ruling came from a CAT bench of chairman VK Bali and vice-chairman LK Joshi on a petition by Income Tax Appellate Tribunal (ITAT) member Sunil Kumar Yadav, who complained that the government was not following the OBC quota policy for filling the posts of ITAT vice-presidents.

In his petition, Yadav pointed out that, according to a seniority list of ITAT members released on February 2, 2009, for appointments of nine vice-presidents; his name was the 17th. If the OBC quota rule were applied, two of the nine posts would go to OBC candidates, he had contended.

However, rejecting his plea, the CAT said OBC reservation benefits would not apply in filling the key posts, as these were appointments by promotions and not direct recruitments.

According to relevant government rules, reservation will be applicable only for direct recruitment and not in case of promotion, CAT emphasised.

"It is conceded position that, if at all 27% reservation is to be made for candidates belonging to OBC category, it would be applicable only as regards direct recruitment and not promotion," the CAT said.

Explaining what constituted a promotional appointment, the bench said: "If the list of candidates called for selection was only of serving employees and no claim of any outsider was considered, the same is not a direct recruitment but selection and appointment on the basis of promotion."

In his petition, Yadav alleged that the central government prepared the list of candidates for ITAT vice-presidents without complying with the mandate of reservation for OBC citizens envisaged under articles 16(4) of the Constitution.

Yadav had said the post of vice-president is a civil post, and is not classified as, scientific or technical post, which is out of the purview of reservation law.

© Copyright 2010 Hindustan Times

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

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

October 14, 2010

The Chairman and Managing Director / Chief Executive Officer
of member banks participating in RTGS / NEFT / NECS / ECS
Madam / Dear Sir,
Electronic payment products - Processing inward transactions
based solely on account number information

As you are aware, the Reserve Bank of India has introduced various electronic payment products (RTGS, NEFT, NECS and the ECS variants) to facilitate electronic transfer of funds in a secure and efficient manner. The volume of transactions routed through these products has witnessed substantial growth, indicating the acceptance and ease of use, by bank branches and customers alike.

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

3.  In the CBS environment customers of a bank can be uniquely identified by their account number across branches. In terms of the extant Procedural Guidelines for RTGS / NEFT / NECS / ECS Credit, however, banks are generally expected to match the name and account number information of the beneficiary before affording credit to the account. In the Indian context, given the many different ways in which beneficiary names can be written, it becomes extremely challenging to perfectly match the name field contained in the electronic transfer instructions with the name on record in the books of the destination bank. This leads to manual intervention hindering STP and causing delay in credit or due return of uncredited instructions.

4.  Being essentially credit-push in nature, responsibility for accurate input and successful credit lies with the remitting customers and the originating banks. The role of destination banks is limited to affording credit to beneficiary's account based on details furnished by the remitter / originating bank. In order to handle surging volumes in a limited time window, some banks use name matching software, while a few others employ a risk-based approach based on the nature and value of transfer. 

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

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

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

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

8.  Please confirm receipt of this circular.

Yours faithfully

(G. Padmanabhan)
Chief General Manager

Innovation awards highlight spirit of corporate & academic enterprise

Innovation awards highlight spirit of corporate & academic enterprise
Nikhila Gill
Posted online: 2010-11-13 00:43:32+05:30

New DelhiBharat Heavy Electricals (Bhel), Ranbaxy Laboratories, Council of Scientific and Industrial Research (CSIR) and the National Institute of Immunology (NII) have won the Thomson Reuters India Innovation 2010 Awards, which recognise the spirit of innovation and enterprise in the country. The awards, instituted in partnership with the Confederation of Indian Industry (CII), were given away at a function at The Park in New Delhi on Friday.

While the Hi-tech Corporate award went to BHEL, CSIR won the the Hi-tech Academic award.

Accepting the award in the Pharma Academic category, Avadhesha Surolia, director, NII, said: “The results of this (focus on research to drive innovation) have been striking, with a number of patents, technology transfers, PPPs and consultancies for NII.”

Ramesh Adige, president, Ranbaxy Laboratories, winner of the Pharma Corporate award, said: “It is a recognition of the innovation capabilities of our over 1,200 scientists, who continue to apply themselves to research to bring affordable, high-quality medicines to mankind.” Ranbaxy has patents in active pharmaceutical ingredients, dosage forms, novel drug delivery systems and new drug development research, among others.

Pointing at the two-fold increase in the number of patents in the past five years, Wong Woei Fuh, MD, Thomson Reuters (south and south-east Asia), said: “India is one of Asia’s fastest emerging economies in the global research, life sciences and technology arena.”

Sam Pitroda, Prime Minister’s advisor on public information, infrastructure and innovation was guest of honour at the ceremony attended by several members from the pharmaceutical and technology industries.

Chandrajit Banerjee, director general, CII, announced a flagship initiative in partnership with Thomson Reuters. “We have initiated the ‘Industrial Innovation Index’ exercise to measure in-company innovation ecosystem. An innovation benchmark will enable the industry to understand where they stand and what they need to do,” he said.

A thorough methodology via a database of companies headquartered in India, ranked on the basis of the number of patents filed, was created. After this preliminary ranking, the companies were judged on the efficiency and effectiveness of research, the impact of innovation measured by patent citations and their international competitiveness.

The awards, in addition to showcasing the important contributions made by corporates and academia, brings to the forefront the fact that the focus of top Indian companies is becoming global. Companies are beginning to export their technologies, with several top companies filing patents in many different countries. “For example, Ranbaxy has filed in 27 different countries and CSIR has filed in 32 different countries,” said Bob Stembridge of Thomson Reuters.
Courtesy : The Financial Express

CSIR, a jewel in India's crown: FICCI

New Delhi, Nov 12 (IANS) Describing the Council of Scientific and Industrial Research (CSIR) as a 'jewel in India's crown', FICCI secretary general Amit Mitra Friday said its role is 'fundamental in shaping Indian technical research and innovation'.
'CSIR has done the greatest good for India by tapping its best resource, its massive human capital. Its approach has always been that of direct intervention by exposing the country's young to the best technological advances,' Mitra said at a conference to announce CSIR's participation in the India International Trade Fair (IITF) beginning here Sunday.

He said the need of the hour was to expose the country and its people to the breakthrough solutions that CSIR has produced in the past 60 years.

'This should be done to spread knowledge to the masses and to inspire India's youth to take up scientific research more seriously,' Mitra of the Federation of Indian Chambers of Commerce and Industry (FICCI) said.

The CSIR Friday announced its exhibition 'CSIR Technofest 2010' for the IITF, to be held at Pragati Maidan Nov 14-27.

'It will be an opportunity for us to showcase the work being done by about 4,000 scientists at CSIR laboratories,' CSIR director general Samir K. Brahmachari said.

The themes on which the CSIR will focus are aerospace and the strategic sector; minerals and materials; chemicals, petrochemicals and energy; ecology and environment; healthcare and food; agriculture and floriculture; engineering infrastructure and mining.
Courtesy: Sify

Applicability of General Financial Rules to autonomous bodies

CIC decision on administrative matter in CSIR

New Initiatives taken by the CVC

1.    National Anticorruption Strategy

The Central Vigilance Commission has taken the initiative of formulating a National Anticorruption Strategy which would serve as a concerted and coordinated approach to fighting corruption in India.  The strategy recognises that corruption cannot be reduced by mere governmental action unless the citizens and private business entities refrain from indulging in corrupt practices.  Corruption is a form of human behaviour which is reflective of the  decline in professional ethics and social values.  Anticorruption efforts over the last five decades were largely focussed on the demand side of corruption ignoring the equally culpable supply side.  The proposed strategy therefore prescribes a participative and holistic approach to address corruption from all sides.  The draft strategy has been forwarded to the government and all other stakeholders for their comments and suggestions.  After obtaining the response and endorsement of the stakeholders, the final strategy would be recommended for adoption.

2.    Leveraging Technology to Prevent Corruption

Corruption in the delivery of public services occurs due to the exercise of discretionary powers and the need for the citizens to approach public officials.  Therefore the use of technology and e-governance to minimise discretion and human intervention is the most effective means of preventing corruption in the delivery of public services which effects the ordinary citizens the most.  The Commission had therefore adopted the strategy of “Leveraging Technology to Prevent Corruption” since 2004, wherein organisations are persuaded to adopt e-governance measures and computerise on priority all those activities which are vulnerable to corruption.  The progress of various organisations in this regard has not been very assuring.  The commission proposes to recommend to the government to adopt a mission mode approach towards computerising all delivery of public services.

3.    Integrity in Public procurement

Public procurement being the government activity most vulnerable to corruption,  has been a priority concern of the commission.  The commission has adopted the following measures to mitigate corruption in public procurement:

a.         Issuing guidelines to promote integrity in public procurement.

         b.      Persuading organisations to adopt e-procurement.

c.         Since 2007, Commission has been promoting the concept of Integrity Pact developed by the Transparency International. It involves the signing of a pact between the procuring organisation and the bidders that they will not indulge in corrupt practices in the tendering, award and the execution of the contract. Only those bidders who sign the pact can participate in the bidding process. An independent external monitor is nominated by the commission to monitor the adherence to the pact by the two sides.  More than 50 organisations including the ministries conducting major procurements have adopted the Integrity Pact so far and the experience has been satisfactory.

4.    Awareness Campaign

The Commission has initiated a project to create awareness and educate the public on anti-corruption. The aim is to reduce people’s tolerance for corruption and reduce its social acceptability. Media agencies are being engaged to create the campaign in the electronic and print media besides various outreach activities. The campaign is slated to start from January, 2011.

5.    Provision for Whistle Blowers

The provision for whistle blowers and their protection is already in place since 2004 under the Public Interest Disclosure & Protection of Informers’ Resolution (PIDPIR) wherein CVC is the designated authority to handle the “whistle blower complaints” and provide protection to the “whistle blowers”. Commission has been paying especial attention to complaints received under this Resolution to investigate them in a time bound manner with due protection to the complainants. A bill has been initiated in the Parliament to convert the Resolution into an Act which would further empower the CVC in protecting the whistleblowers.

6.    Improving the Standard of Vigilance Work

To make the work of vigilance more objective and scientific the Commission is developing and adopting various standards to regulate vigilance investigations and reporting.  While the reporting standard was adopted in August, 2009, a standard procedure for conduct of vigilance investigation has been developed and would be adopted shortly. 

7.    Computerisation of Commission’s Work

A project for workflow automation and IT enabling of the functioning of the Commission has been completed on 31^st August, 2010 and is in the process of full roll out.  The project is targeted to be fully operational by November, 2010. This would enhance the efficiency of the Commission  in handling complaints and processing of investigation reports. 

8.    Modern Preventive Vigilance Framework

Anti-corruption efforts consist of a two pronged approach – punitive and preventive. While the vigilance efforts so far were largely punitive and reactive, Commission is now focussing on prevention which is a more efficient and effective means of checking corruption.  Much of the prevailing preventive vigilance practices were developed in the 1970s which need to be reviewed in the present day context. A new preventive vigilance framework is being developed by the Commission which aims at aligning the vigilance work with the modern day approach of risk management and corporate governance. Standing Conference Of Public Enterprise (SCOPE) has been assigned the task of developing a new framework on pilot basis.

9.    International Cooperation

The Commission gives due importance to international cooperation in anti-corruption which also helps in exchange of best global practices as well as capacity building of the personnel involved in anti-corruption work.  The important developments pertaining to international cooperation are listed below:

a.         Though India  had   signed   the   United Nations    Convention against Corruption in 2005, it has not been ratified till date. The CVC had  recommended the ratification of the Convention.

b.         As a result of the interaction between the Commission and the Anti-Corruption Division of the Organisation for Economic Cooperation and Development (OECD),  India has been granted the ‘Observer’ status in the Anti-Bribery Working Group of OECD. The Commission is in the process of studying the implications of the Convention for India.

c.         The Central Vigilance Commissioner of India has been a member of the Executive Board of International Association of Anti Corruption Agencies (IAACA) since 2007.

d.         The anti-corruption commissions of various countries and multilateral anti-corruption bodies have shown keen interest in the working of the Commission.

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Protection of Women against Sexual Harassment at Workplace Bill, 2010

The Union Cabinet  approved the introduction of the Protection of Women against Sexual Harassment at Workplace Bill, 2010 in the Parliament to ensure a safe environment for women at work places, both in public and private sectors whether organised or unorganized. The measure will help in achieving gender empowerment and equality.

The proposed Bill, if enacted, will ensure that women are protected against sexual harassment at all the work places, be it in public or private. This will contribute to realisation of their right to gender equality, life and liberty and equality in working conditions everywhere. The sense of security at the workplace will improve women's participation in work, resulting in their economic empowerment and inclusive growth.

Salient features of the Bill are as follows:

• The Bill proposes a definition of sexual harassment, which is as laid down by the Hon'ble Supreme Court in Vishaka v. State of Rajasthan (1997). Additionally it recognises the promise or threat to a woman's employment prospects or creation of hostile work environment as 'sexual harassment' at workplace and expressly seeks to prohibit such acts.

• The Bill provides protection not only to women who are employed but also to any woman who enters the workplace as a client, customer, apprentice, and daily wageworker or in ad-hoc capacity. Students, research scholars in colleges/university and patients in hospitals have also been covered. Further, the Bill seeks to cover workplaces in the unorganised sectors.

• The Bill provides for an effective complaints and redressal mechanism. Under the proposed Bill, every employer is required to constitute an Internal Complaints Committee. Since a large number of the establishments (41.2 million out of 41.83 million as per Economic Census, 2005) in our country have less than 10 workers for whom it may not be feasible to set up an Internal Complaints Committee (ICC), the Bill provides for setting up of Local Complaints Committee (LCC) to be constituted by the designated District Officer at the district or sub-district levels, depending upon the need. This twin mechanism would ensure that women in any workplace, irrespective of its size or nature, have access to a redressal mechanism. The LCCs will enquire into the complaints of sexual harassment and recommend action to the employer or District Officer.

• Employers who fail to comply with the provisions of the proposed Bill will be punishable with a fine which may extend to ` 50,000.

• Since there is a possibility that during the pendency of the enquiry the woman may be subject to threat and aggression, she has been given the option to seek interim relief in the form of transfer either of her own or the respondent or seek leave from work.

• The Complaint Committees are required to complete the enquiry within 90 days and a period of 60 days has been given to the employer/District Officer for implementation of the recommendations of the Committee.

• The Bill provides for safeguards in case of false or malicious complaint of sexual harassment. However, mere inability to substantiate the complaint or provide adequate proof would not make the complainant liable for punishment.

Implementation of the Bill will be the responsibility of the Central Government in case of its own undertakings/establishments and of the State Governments in respect of every workplace established, owned, controlled or wholly or substantially financed by it as well as of private sector establishments falling within their territory. Besides, the State and Central Governments will oversee implementation as the proposed Bill casts a duty on the Employers to include a Report on the number of cases filed and disposed of in their Annual Report. Organizations, which do not prepare Annual Reports, would forward this information to the District Officer.

Through this implementation mechanism, every employer has the primary duty to implement the provisions of law within his/her establishment while the State and Central Governments have been made responsible for overseeing and ensuring overall implementation of the law. The Governments will also be responsible for maintaining data on the implementation of the Law. In this manner, the proposed Bill will create an elaborate system of reporting and checks and balances, which will result in effective implementation of the Law. 

 

Courtesy : PIB

Free Mobile Connection for BSNL Landline Customers free Home Calling Facility from Mobile

BSNL launched a Unique plan “PYARI JODI” combining Landline and Mobile Services of Bharat Sanchar Nigam Limited (BSNL), on the auspicious occasion of Diwali.

The landline customers of BSNL can now take a free SIM card and can make unlimited free local calls to his/her landline/WLL number. In addition, the customers can also call two BSNL Local numbers at a reduced rate of 20p per minute and one BSNL number anywhere in India at a reduced rate of 30p per minute, without paying any additional monthly charges. On activation, customer will also get Rs.15 talk value, 1000 Local SMS, 1000 National SMS and 1000 MB data free.  

BSNL also launched special festive offers for BSNL 3G customers wherein all new 3G activation will get one week unlimited data download free in addition to normal freebies.

Electronic Funds Transfer Infrastructure in India – Usage of RTGS and NEFT

RBI/2010-11/259
DPSS (CO) RTGS No.1008/04.04.002/2010-2011

November 03, 2010

Chairman and Managing Director /
Chief Executive Officer of all banks participating in RTGS and NEFT
Madam / Dear Sir,
Electronic Funds Transfer Infrastructure in India – Usage of RTGS and NEFT
Please refer to our earlier circulars DPSS (CO) RTGS No. 729/04.04.002/2006 – 2007 dated December 1, 2006 (introducing the threshold value limit for customer transactions in RTGS to Rs 1 lakh) and DPSS (CO) No. 611 / 03.01.03 (P) / 2008 – 09 dated October 8, 2008 (levy of service charges for electronic payment products).
2. The Indian RTGS system has displayed tremendous growth in both transactions volume and the values that it has been processing since its inception in March, 2004. With the increasing number of electronic payment transactions, it has become expedient to position the Indian RTGS system primarily for processing and settling large value payment orders. Further, RBI has set up a robust retail electronic funds transfer system in the form of National Electronic Funds Transfer (NEFT) system, with near real-time settlement finality with 11 settlement cycles in a day.
3. It has, therefore, been decided in consultation with system participants to increase the threshold value limit for RTGS transactions from the present limit of ` 1 lakh to ` 2 lakhs. As an incentive to customers to move their transactions to NEFT, a new value band in the ` 1 lakh to ` 2 lakh segment has been created, with customers having to pay lower charges vis-à-vis RTGS transactions. The details of the existing service charges and the revised service charges are given below :

System	Value Band	Customer Charges
RTGS		Existing	Revised
	` 1 lakh to ` 2 lakhs	` 25	-
	above ` 2 lakhs to ` 5 lakhs	` 25	` 25
	above ` 5 lakhs	` 50	` 50
NEFT	up to ` 1 lakh	` 5	` 5
	above ` 1 lakh to ` 2 lakhs	` 25	`15
	above ` 2 lakhs	` 25	` 25

4. The service charges in the value band ` 1 lakh to ` 2 lakhs at ` 15/- per transaction in NEFT, effectively provides a saving of ` 10/- per transaction to the customer. Thus, the special niche value band created in NEFT, is a value proposition for customers providing funds transfer in a timely manner with wider geographical coverage at a lesser cost. This measure would also significantly contribute to further improving the efficiency of the RTGS system.
5. The revised threshold limits for customer transactions in RTGS system and revised NEFT service charges will be implemented with effect from November 15, 2010.
6. All member banks are advised to encourage customers to take advantage of this facility.
Please acknowledge receipt.
Yours faithfully,
(G. Padmanabhan)
Chief General Manager

Admn order invites CAT ire

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

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

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

RTI Logo & Portal Launched

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

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

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

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

Click here to see Logo

Opening of bank accounts - salaried employees

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

October 26, 2010

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

Dear Sir,

Opening of bank accounts - salaried employees

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

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

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

Yours faithfully,

(Vinay Baijal)
Chief General Manager

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

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

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

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

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

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

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

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

September 1, 2010

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

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

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

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

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

NECS / ECS-Credit

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

NEFT

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

Paragraph 6.8 is also being substituted as under –

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

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

Yours faithfully

(G. Padmanabhan)
Chief General Manager