HRA for civilian employees of the Central Government serving in the State & UT of North Eastern region

Delegation of financial Power rules- Clarification

Re-classifiation of cities/town for grant of HRA- Clarification

CIC said that if certain bench mark is decided for promotion, then there is no reason why that bench mark should not be known

New Delhi: In a move that may improve career prospects of millions of government sector employees, Central Information Commission (CIC) has ordered that the promotion process be made more transparent by sharing the benchmark for promotions with the officers considered for the same.
Information Commissioner Satyananda Mishra, while hearing the petition of a Department of Atomic Energy (DAE) employee, said: “If certain bench mark is decided for promotion, then there is no reason why that bench mark should not be known, at least to those who are being considered for such promotion.”
The employee had sought the information on the criteria, norms and bench marks for departmental promotion from the post of Assistant Security Officer to Security Officer.
In its response, the DAE said that marks obtained by a candidate in written test, interview and his performance appraisal report are added for promotion, but refused to divulge the bench mark score calling it as being held in ‘fiduciary relationship’.
Refusing to accept that the DPC recommendations were held in fiduciary relationship, the Commission directed the department to provide the score adopted by the committee for promotion by 15 January.
“We cannot agree with this argument. The DPC has to follow the rules and regulations governing promotion from one rank to other in government and its proceedings have to be on transparent and objective criteria,” the CIC said.
In his order, Mishra clarified that the recommendations made by DPC were made while discharging their duties and thus part of official record.
“Such recommendations cannot be described as information held in fiduciary relationship,” he said adding that these information cannot be exempted from disclosure under RTI Act.
Original order Here

CSIR’s institute to get autonomous university status

Express News Service

Posted: Jan 10, 2009 at 0441 hrs IST
Pune The Council for Scientific and Industrial Research (CSIR)’s upcoming Advanced Institute of Science and Technology (AIST) got clearance by the Central Government on Thursday to be an autonomous university offering interdisciplinary undergraduate and postgraduate courses ‘that were never offered in India’, as Samir Brahmachari, Director General of CSIR said on Friday.

The university will offer global participative innovative courses — like abrasion engineering, fabrionics — that have never been offered in India, he said during the diamond jubilee celebrations of National Chemical Laboratory.

“The power of the board of members of this university will be all inclusive and they will not have to approach the government for every clearance. We will also ensure that more younger people will get to be the decision makers at the university,” Brahmachari said. The university will be spread across CSIR’s 30 laboratories in the country.

In another announcement, Brahmachari said that a CSIR innovations complex is underway at the NCL campus which will bring all the science innovations together to create knowledgable wealth and affordable health care — the two major challenges faced by CSIR. Similar centres are planned at Chennai and Delhi, he said.

Some of the other challenges faced by CSIR are catalysing industrial growth, nurturing human resource in science and technology, creating technology for the masses and pioneering India’s intellectual property movement.

Brahmachari gave away various awards to NCL scientists on this occasion. The function was attended by Dr Raghunath Mashelkar, NCL director S Sivaram among others.

Salient features of New Pension Scheme

Seagate packs a terabyte on two disks 500GB per disk

NEW DELHI, INDIA: Seagate has announced volume shipments of a mainstream desktop hard drive with the what company claims, is industry's highest areal density. Packing 1TB of capacity on two disks, Seagate's Barracuda 7200.12 HD, a 3.5-inch 7200-RPM drive features an areal density of 329 Gigabits per square inch to deliver the combination of capacity, performance and reliability for PCs, desktop RAID and personal external storage. "Demand for more desktop PC storage capacity is far from letting up as computer users worldwide generate massive amounts of digital content every day," said Rajesh Khurana, Country Manager India and SAARC, Seagate Technology. "Seagate is leading the industry with new storage solutions designed to store, share and manage all of that business- and user-generated content."

The Barracuda 7200.12 hard drive provides combination of storage capacity and speed required for today's most demanding desktop PC applications. The drive's Serial ATA 3Gb/second interface delivers an sustained data rate of up to 160MB/second for fast boot, application startup and file access and a burst speed of 3Gb/second. The 3.5-inch drive is also offered in capacities of 750GB and 500GB with cache options of 32MB and 16MB.

India Ranks 41st in the Global Innovation Index

India falls 18 places in global innovation index. In last year's Index India was ranked 23^rd out of 107 countries. In the current edition, which is the second edition of the Global Innovation Index (GII) India has been ranked 41 among 130 countries. The United States has been ranked first, Germany second and Sweden third in this year's index.

This report puts China at 37, eight places down from last year but four places ahead of India. Also last year, global research and advisory firm Economist Intelligence Unit ranked India 58 on its list of innovative countries, one rank above China. Indian policymakers and scientists frequently compare their research and innovation output with China's, which in the past two decades has overtaken India on several indices that measure scientific prowess of countries.

Tips on Energy Savings

Tips for Energy Conservation for Industries (pdf format)

Lighting System

01.One of the best energy-saving devices is the light switch. Turn off lights when not required.

02.Many automatic devices can help in saving energy used in lighting. Consider employing infrared sensors, motion sensors, automatic timers, dimmers and solar cells wherever applicable, to switch on/off lighting circuits.

03.As for as possible use task lighting, which focuses light where it's needed. A reading lamp, for example, lights only reading material rather than the whole room.

04.Dirty tube lights and bulbs reflect less light and can absorb 50 percent of the light; dust your tube lights and lamps regularly.

05.Fluorescent tube lights and CFLs convert electricity to visible light up to 5 times more efficiently than ordinary bulbs and thus save about 70% of electricity for the same lighting levels.

06.Ninety percent of the energy consumed by an ordinary bulb (incandescent lamp) is given off as heat rather than visible light.

08.Replace your electricity-guzzling ordinary bulbs (incandescent lamps) with more efficient types. Compact fluorescent lamps (CFLs) use up to 75 percent less electricity than incandescent lamps.

09.A 15-watt compact fluorescent bulb produces the same amount of light as a 60-watt incandescent bulb.

Room Air Conditioners

01.Use ceiling or table fan as first line of defence against summer heat. Ceiling fans, for instance, cost about 30 paise an hour to operate - much less than air conditioners (Rs.10.00 per hour).

02.You can reduce air-conditioning energy use by as much as 40 percent by shading your home's windows and walls. Plant trees and shrubs to keep the day's hottest sun off your house.

03.One will use 3 to 5 percent less energy for each degree air conditioner is set above22°C (71.5°F), so set the thermostat of room air conditioner at 25°C (77°F) to provide the most comfort at the least cost.

04.Using ceiling or room fans allows you to set the thermostat higher because the air movement will cool the room.

05.A good air conditioner will cool and dehumidify a room in about 30 minutes, so use a timer and leave the unit off for some time.

06.Keep doors to air-conditioned rooms closed as often as possible.

07.Clean the air-conditioner filter every month. A dirty air filter reduces airflow and may damage the unit. Clean filters enable the unit to cool down quickly and use less energy.

08.If room air conditioner is older and needs repair, it's likely to be very inefficient. It may work out cheaper on life cycle costing to buy a new energy-efficient air conditioner.

Refrigerators

01.Make sure that refrigerator is kept away from all sources of heat, including direct sunlight, radiators and appliances such as the oven, and cooking range.
When it's dark, place a lit flashlight inside the refrigerator and close the door. If light around the door is seen, the seals need to be replaced.

02.Refrigerator motors and compressors generate heat, so allow enough space for continuous airflow around refrigerator. If the heat can't escape, the refrigerator's cooling system will work harder and use more energy.

03.A full refrigerator is a fine thing, but be sure to allow adequate air circulation inside.

04.Think about what you need before opening refrigerator door. You'll reduce the amount of time the door remains open.

05.Allow hot and warm foods to cool and cover them well before putting them in refrigerator. Refrigerator will use less energy and condensation will reduced.

06.Make sure that refrigerator's rubber door seals are clean and tight. They should hold a slip of paper snugly. If paper slips out easily, replace the door seals.

07.When dust builds up on refrigerator's condenser coils, the motor works harder and uses more electricity. Clean the coils regularly to make sure that air can circulate freely.

08.For manual defrost refrigerator, accumulation of ice reduces the cooling power by acting as unwanted insulation. Defrost freezer compartment regularly for a manual defrost refrigerator.

Water Heater

01.To help reduce heat loss, always insulate hot water pipes, especially where they run through unheated areas. Never insulate plastic pipes.

02.By reducing the temperature setting of water heater from 60 degrees to 50 degrees C, one could save over 18 percent of the energy used at the higher setting.

Microwave Ovens &Electric Kettles

01.Microwaves save energy by reducing cooking times. In fact, one can save up to 50 percent on your cooking energy costs by using a microwave oven instead of a regular oven, especially for small quantities of food.

02.Remember, microwaves cook food from the outside edge toward the centre of the dish, so if you're cooking more than one item, place larger and thicker items on the outside.

03.Use an electric kettle to heat water. It's more energy efficient than using an electric cook top element.

04.When buying a new electric kettle, choose one that has an automatic shut-off button and a heat-resistant handle.

05.It takes more energy to heat a dirty kettle. Regularly clean your electric kettle by combining boiling water and vinegar to remove mineral deposits.

06.Don't overfill the kettle for just one drink. Heat only the amount of water you need.

Computers

01.Turn off your home office equipment when not in use. A computer that runs 24 hours a day, for instance, uses - more power than an energy-efficient refrigerator.

02.If your computer must be left on, turn off the monitor; this device alone uses more than half the system's energy.

03.Setting computers, monitors, and copiers to use sleep-mode when not in use helps cut energy costs by approximately 40%.

04.Battery chargers, such as those for laptops, cell phones and digital cameras, draw power whenever they are plugged in and are very inefficient. Pull the plug and save.

05Screen savers save computer screens, not energy. Start-ups and shutdowns do not use any extra energy, nor are they hard on your computer components. In fact, shutting computers down when you are finished using them actually reduces system wear - and saves energy

© 2004 BEE-India, New Delhi. All rights reserved

Ministry clarifies to RTI applicant on MPs’ pay hike

The Ministry of Parliamentary Affairs (MoPA) classifies the country’s lawmakers as “urban non-manual employees” whose pay is linked to the Consumer Price Index. The germ of the idea, the ministry says, came from an “expert from IIM Ahmedabad” invited to help with a study conducted by a joint committee set up to decide on salaries and allowances of Members of Parliament (MPs) in 2000.

The ministry was replying to a Right to Information (RTI) query from C P Rai, a senior citizen and a resident of Laxmi Nagar here, quoting the Lok Sabha Secretariat on why parliamentarians get their salaries and allowances revised in a “day’s time without any homework” done while Government servants have to wait for the recommendations of the Pay Commission.

The ministry’s written response to Rai, on record before the Central Information Commission in a hearing on January 2, attempts to methodically explain that parliamentarians do not get pay hikes and perks in the wink of an eye as he believed it to be.

“Increase in the salary, allowances etc of the Members of Parliament are made after due consideration and consultation with the ministries of Finance, Law and other departments concerned and not without proper consideration as stated by you,” clarifies the ministry.

It goes on to mention the role of the “expert from IIM, Ahmedabad” who suggested that the salary of an MP should be linked to the Consumer Price Index (a measure of the average price of consumer goods and services purchased by households) meant for Urban Non-Manual employees with the base year 1984-85.”

“As to why pay and allowances of Government servants are not increased similarly, it is stated that the roles, responsibilities, functions of the MPs and the appointment and service conditions of government servants are not comparable,” says the ministry.

Chief Information Commissioner Wajahat Habibullah described Rai’s questions under the RTI as reflective of his “indignation” on what “he (Rai) believes to be discrimination” in favour of MPs.

Full Decision here

FREQUENTLY ASKED QUESTIONS ON SIXTH PAY COMMISSION PENSION PAYMENTS FOR CIVIL PENSIONERS (AS PER CPAO)

Pre-2006 Pensioners and Family Pensioners

1. What are the benefits due to me based on the Government of India’s decision on the recommendations of Sixth pay Commission on pension?

You should have received the enhanced pension w.e.f. 1 Jan 2006 and 40 % of the arrears accruing to you, as per the resolution of the Government of India notified in the Gazette of India on 29 August 2008 and OMs No. F. 38/37/08-P&PW dated 1 Sep 2008 (http://cpao.nic.in/pre-pensioners.pdf), 3 Oct 2008 (http://cpao.nic.in/F_no38_37_08partii.pdf) and 14 Oct 2008 (http://cpao.nic.in/NO.38-37-08-PPW141008.pdf).

2. I am drawing my pension from a bank. What am I required to do for the bank to credit the revised basic pension and 40% of the arrears mentioned in the answer above into my pension account?

You are not required to initiate action at all. The Pension Disbursing Authorities (the Bank or PAO or Treasury from whom you receive pension) have been ordered by the Department of Pensions & Pensioners Welfare to initially compute your revised basic pension and to directly make the payment of the revised basic pension and 40% of arrears accruing from January 2006 by crediting your account by 30th Sep 2008.

3. Can I get the detail of the revised basic pension due to me and the arrears paid to me?

The Bank branch from where you draw your pension should provide you with a pension slip and make entries in your half of the PPO on your request. They are also required to provide you with a Due and Drawn Statement to show the detailed calculations of the pension drawn by you since Jan 2006 and the amount due to you as per the orders of GOI http://pensionersportal.gov.in/. The amount of difference between the amount due to you and amount drawn should be indicated in this statement and will be the arrears paid to you.

4. What is the revised basic pension due to me w.e.f. 1 Jan 2006?

To arrive at your revised basic pension please follow these steps:

1. Pension based on normal fixation

As per para 4.1 of the DP&PW OM dated 1 Sep 2008, your revised basic pension w.e.f. 1 Jan 2006 will be arrived at by adding the following:
i. Basic Pension
ii. Dearness Pension (50% of basic pension)
iii. 24% of the sum of Basic Pension and Dearness Pension
iv. 40% fitment on Basic Pension.

2. Revised Basic Pension based on Minimum of VI PC Pay band plus Grade pay

As per para 4.2 of the DP&PW OM dated 1 Sep 2008 read with the DP&PW OM dated 3 and 14 October 2008, if your qualifying service was 33 years, your pension should not be less than 50% (30% in case of family pension) of the minimum of the pay band plus grade pay under the VI Pay Commission corresponding to the scale you retired from (concordance with IV and V Pay Commission scales given in the Annexure I of DP&PW OM dated 14 October 2008). In case your qualifying service was less than 33 years, your pension will be reduced pro-rata.

3. Maximum of a. or b.

Take the maximum of the two enhanced basic pensions calculated in sub-paras a. and b. above as your enhanced basic pension w.e.f. 1 Jan 2006.
Illustration:
Suppose at the time of your retirement on 31 Jan 2000 after a qualifying service of 30 years, your basic pension was Rs. 13000 as you had retired from the scale of Rs. 24050-650-26000.
By applying a. (normal fixation method) the revised basic pension w.e.f. 1 Jan 2006 is Rs. 29380 by adding the following:
i. Rs. 13000 (Basic Pension)
ii. Rs. 6500 (Dearness Pension - 50% of basic pension)
iii. Rs. 4680 (24% of Basic Pension + Dearness Pension i.e. 24% of Rs. 19500)
iv. Rs. 5200 (40% fitment on Basic Pension).
By applying b. (based on Minimum of VI PC Pay band plus Grade pay method) the revised basic pension is Rs. 37750 for full qualifying service (33 years) as the V Pay Commission scale Rs. 24050-650-26000 has been revised to Rs. 75500-80000 in the VI Pay Commission. However, the qualifying service being 30 years, your revised basic pension will be Rs.34318
Therefore, your revised basic pension is Rs. 34318 being the maximum of Rs. 29380 and Rs. 34318.

4. Additional Quantum of Pension based on Age for those aged 80 and above

As per para 4.5, an additional quantum of pension is admissible to Pensioners/family pensioners above the age of 80 as per the table provided in the DP&PW OM dated 1 Sep 2008.


Age of Pensioner/FamilyPensioner	Additional Quantum of Pension
From 80 years to less than 85 years	20% of revised basic pension/family pension
From 85 years to less than 90 years	30% of revised basic pension/family pension
From 90 years to less than 95 years	40% of revised basic pension/family pension
From 95 years to less than 100 years	50% of revised basic pension/family pension
100 years or more	100% of revised basic pension/family pension

Illustration:
Suppose you are 81 years old in Feb 2006 and your revised basic pension /family pension has been fixed at Rs.13152 on 1 Jan 2006. The additional quantum payable to you will be 20% of the basic pension /family pension i.e. Rs. 2630 till you are 85years old. Dearness relief will be payable on this quantum also.

5. When will I get my arrears?

As per Para 12 of OM date 01-09-2008 your enhanced basic pension and 40% of your arrears should have been paid to you by 30 Sep 2008 or before by Pension Disbursing authority.

Based on grievances received, the Department of Pensions & Pensioners Welfare have issued clarifications vide OM No. 38/37/08-P&PW(A).pt.II on 03-10-2008 and vide OM No. 38/37/08-P&PW(A).pt.l 14-10-2008 and required that the enhanced pensions/family pensions and arrears thereof should be disbursed within a week of the date of issue of the clarification of 14-10-2008 in accordance with the ready reckoner and the additional quantum of pension to pensioners aged 80 years and above.

The last date for all cases being covered including the provisions of para 4.2 of the DP&PW OM dated 1 Sep 2008 based on the clarifications and directives in this DP&PW OM was 14 Nov 2008.

6. Is it possible that the Bank may delay my enhanced pension/arrear payment if the money from the Government for my pension/ arrears has not reached the Bank branch?

Never. The Banks are required to obtain re-imbursement from the Government after they credit the pensioner each month.

7. My Date of Birth /my scale of pay at the time of retirement/qualifying service is not available with the Pension Disbursing Authority (PDA), What do I do?

The bank was required to obtain the same from the Accounts Office which issued your PPO/CPAO and conclude the payments within the dates mentioned above.

You may also apply to the Head of Office who sanctioned your pension /family pension and expedite the revised authority indicating the Date of Birth, of pensioner and family pensioner (spouse), scale of pay at the time of retirement/qualifying service and get it sent to CPAO for onward transmission to the bank (PDA).

8. I am the legal heir of my family. Both my parents are dead will I get the arrears of pension?

The payment of arrears to legal heirs will be governed by Para 23.1, 23.2 & 23.3 of the Scheme for payment of pensions to Central Government Civil pensioners by Authorised Banks http://cpao.nic.in/scheme.pdf

9. My pre-1996 pension has not been revised. Will the ready reckoner provided in the DP&PW OM dated 1 Sep 2008 help me in getting the revised pension 2006?

No, first you have to get your pension revised as on 1 Jan 1996 and then this revised pension should be used as a base to calculate the revised basic pension as per VI Pay Commission w.e.f. 1 Jan 2006.

10. Will the Accounts Office who issued my PPO revise my Pension also?

Yes. In all Pre-2006 cases, the concerned Head of the Department will revise the authority indicating the revised basic pension and other details including the Date of Birth of the Pensioner/Family Pensioner, Scale of Pay at retirement, Qualifying Service. This will be endorsed to the Banks through CPAO.

11. Will I get Dearness Relief on my revised pension/family pension?

Yes, you will get Dearness Relief as applicable from time to time applied on the sum of basic revised pension/family pension and additional quantum of pension/family pension based on age. The rates of Dearness Relief before and after VI Pay Commission are given below:

Period	Pre-Revised (old Rates)	Post Revised (New Rates)
1-1-2006	24%	Nil
1-7-2006	29%	2%
1-1-2007	35%	6%
1-7-2007	41%	9%
1-1-2008	47%	12%
1-7-2008	54%	16%

12. If I find that the calculations are not correct or I have been paid less to whom should I approach?

First you may contact your paying branch and their Corporate Office. If not satisfied then kindly approach your department through written representation as well as the Grievance Cell of DP&PW. Your department will send a revised authority if justified to the Bank through the CPAO to revise your pension.

13. Is the Constant Attendant Allowance admissible to all disabled pensioners irrespective of the date of retirement (i.e. before or after 1.1.2006)?

Yes, it will be admissible from 01-01-2006 to all disabled pensioners, who retired with 100% disability under CCS(EOP) Rules and fulfilled the conditions mentioned in D/o P&PW's OM dated 2.9.2008.

Post 2006 Pensioners

1. I am a Post 2006 Pensioner. Who will revise my pension?
   
   You have to exercise your option for revision of pay and pension and submit the required revised options to your department last served which sanctioned your pension. On receiving the case, the concerned PAO will revise your pension and send the revised authority to CPAO for onward transmission to the bank for the payment of revised basic pension and the arrears. But you will get only 40% of arrears payable during 2008-2009.
   
   
2. My spouse is a Pre-2006 Pensioner but expired after Jan 2006. Will I get arrears?
   
   Yes, the life time arrears will be paid to you being the spouse. The family pension also should be started by your bank automatically & revised family pension will be paid as per 6th Pay Commission.
   
   
3. Can I get details of my arrears?
   
   Yes you should get a Due and Drawn statement, pension slip and endorsement in your half of the PPO of the revised basic pension from your paying branch. Even if your paying bank has a CPPC for centrally computing/ calculating the revision, these details should be made available to you at the paying branch for your convenience.
   
   
4. If my postal address has been changed to whom should I report for changing the same in all official records?
   
   Please inform your department who will get a revised authority issued by PAO, CPAO on receipt of the same ensure that the revision authority indicating the changes is sent to the bank. Please ensure the changes are made so that PAO/CPAO can send your authority at your correct address.
   
   
5. If I have changed my paying branch between 2006 to 2008 to whom should I inform?
   
   In case your bank has been changed, kindly ensure that originating bank has sent the information of the changed address to the CPAO in annexure 21.You may also inform the changed address to your department who will be issue the revised authority incorporating the changes and send to your bank through CPAO.

Vacancy of Deputy Commissioner (Finance) at Kendriya Vidyalaya Sanganthan

Pension to SICK & DISABLED/INCAPACIATED Pensioners

Banks responsible for card, PIN delivery

In case of misuse of debit cards, banks cannot escape responsibility by saying that they have delivered the card and the personal identification number (PIN) at the address mentioned in the application.

A bank customer has approached the Ombudsman with a complaint about withdrawal of funds through unauthorised use of his card. The complainant said that he had asked for a debit card and the bank responded by issuing a card with zero liability.

Though he did not receive the card, he found that Rs 25,000 was debited from his account. On enquiry from the bank, he gathered that the card was delivered to a security staff in his office building, without checking the identification particulars.

The PIN was also delivered to another staff in his office. This prompted the ‘card holder’ to seek a refund from the bank, a plea that was turned down.

On its part, the bank submitted papers mentioning that the card and PIN had been delivered at the mailing address mentioned by the customer. While the card was delivered to one person, the PIN was handed over to another person on the same address.

The bank also reiterated that the debit card was used at the ATM, indicating that money was withdrawn by an ‘authorised person’. While maintaining that the transactions were valid, the bank said that it was not liable or responsible for any consequences.

The Ombudsman, however, ruled that the bank could not escape responsibility by stating that the card and PIN were delivered at the mailing address of the complainant to ‘unauthorized’ persons, increasing the risk of misuse by them. It said that the card and PIN should have been delivered to the complainant in person or to his authorised representative only under his proper acknowledgement.

The Ombudsman asked the bank to not only reimburse the Rs 25,000 withdrawn from the complainants account but also pay interest at savings bank rate and an additional amount to meet the expenses relating to follow-up of the complaint.

Courtesy :- Business Standard

Dept. of Personnel and Training violating RTI Act: CIC

New Delhi (PTI): The Department of Personnel and Training, which is the nodal agency for the implementation of RTI Act, is itself violating the Act by publishing misleading information on its website, the CIC has held.

The department on its website has excluded file notings from the definition of 'information' which implies that there is no obligation on it to reveal these under the RTI Act.

"Because it is already clear that the entry of file noting with regard to exempted information on the website of DoPT is misleading, we find the DoPT is in violation of the RTI Act," said Chief Information Commissioner Wajahat Habibullah.

The Commission ordered the department to delete the definition of information which says that file notings were not included in RTI Act and replace it with the new definition as given in the Act.

In an earlier hearing of the plea filed by one RTI applicant S C Agrawal, the CIC had directed "It is clear that CPIO (of DoPT) has simply acted in accordance with a circular issued by the DoPT."

"If we are to construe malafide in the denial of information in such cases, it is necessary that the source of such malafide denial be identified and further action considered accordingly. From the above it is clear that the impugned order was issued with the approval of then secretary

Pension reforms off the blocks, proposals called for six funds

The pension regulator today set the stage for opening the business for non-government employees from April by seeking proposals for setting up six pension funds.
Among the host of conditions specified in the Primary Information Memorandum and Expression of Interest (EOI) package, the Pension Fund Regulatory & Development Authority (PFRDA) intends to allow up to 26 per cent foreign investment but with the rider that the direct or indirect holding should not exceed 26 per cent.

The stipulation is akin to the foreign investment regime in the insurance sector, in which the regulator had also initially decided to factor in the indirect holding in the firm. Over the years, however, the norms were relaxed and the indirect holding is not counted in the 26 per cent ceiling for the sector.

The move from PFRDA is the latest in a series of financial sector reforms that the United Progressive Alliance government has managed to push through after the Left parties withdrew the support they extended in Parliament in June following disagreements over the Indo-US civil nuclear agreement.

Earlier this week, the government introduced a Bill to amend the insurance laws, which among other things, proposes to raise the foreign investment ceiling to 49 per cent.

If Parliament approves the insurance Bill, the foreign investment ceiling for the pension sector will also go up. A Bill to provide statutory backing to PFRDA is pending in Parliament but could not be approved owing to opposition from the Left parties. For the time being, however, PFRDA has proposed that the pension fund managers will sign an investment management agreement (IMA) with the board of the New Pension Scheme (NPS Trust).

The fund managers will be required to invest in line with the norms prescribed with a default option that is to be decided. The default option will come into play if an investor is unable to decide whether to invest in a balanced, growth or debt scheme. The investor will have the option of changing schemes periodically.

ELIGIBILITY CRITERIA FOR FUND MANAGERS
* A new company has to be floated, which will get a ‘certificate of commencement of business’ from PFRDA
* At least 5 years experience of fund management
* Monthly average assets under management not less than Rs 8,000 crore for the last 12 months
* Direct and indirect foreign investment not more than 26%
* Net worth of Rs 10 crore
* Sponsor will not hold more than 10% of equity in any other pension fund
* Sponsor will not hold more than 10% of equity in central record keeping agency under NPS
* Sponsor will not hold more than 5% of equity stake in NPS Custodian
* 50% independent directors

Central or state public sector companies or entities regulated by the Reserve Bank of India, Securities & Exchange Board of India or Insurance Regulatory and Development Authority are eligible to bid to be sponsors of a pension fund.

While 14 mutual fund houses had average assets under management of over Rs 8,000 at the end of November 2008, most insurance companies meet the eligibility norms by virtue of having a foreign joint venture partner. Most banks are also eligible to bid.

In addition, the three fund managers – State Bank of India, UTI and Life Insurance Corporation – that already manage the pension contribution of central and state government employees who joined from January 2004, will also be eligible to manage non-government business but will have to segregate the operations.

The last date for submitting the expression of interest is January 9, sources said, and PFRDA intends to appoint the fund managers by the first week of February. In addition, it is expected to start the process of appointment of point of presence, where subscribers can deposit their funds, over the next week to 10 days. To ensure that cross-holding does not lead to conflict of interest, PFRDA has decided to restrict a sponsor’s holding in another fund and National Securities Depository Ltd (NSDL) the central record-keeping agency. In addition, the pension fund cannot hold over 5 per cent stake in the NPS custodian, Stock Holding Corporation.

BS Reporter / Mumbai December 27, 2008, 0:18 IST

RBI FAQ ON Payment & Settlement systems

The central bank of any country is usually the driving force in the development of the national payment system. The Reserve Bank of India (RBI) as the central bank of the country has been playing this developmental role and has taken several initiatives for a safe, secure, sound and efficient payment system. Some of the questions frequently asked in this regard are presented below in the form of an FAQ.

1. What is a Payment System?

A Payment System is a mechanism that facilitates transfer of value between a payer and a beneficiary by which the payer discharges the payment obligations to the beneficiary. Payment system enables two-way flow of payments in exchange of goods and services in the economy.

2. What are the components of any payment system?

Payment systems include instruments through which payments can be made, rules, regulations and procedures that guide these payments, institutions which facilitate payment mechanisms and legal systems etc. that are established to facilitate transfer of funds between different participants.

3. Who can use payment systems to make payments?

Payment systems are used by individuals, banks, companies, governments, etc. to make payments to one another. In other words, any body who has to make a payment to any one else can use one or the other form of payment system to make such a payment.

4. What are the ways in which a customer can make payments through banks?

Payments can be made in India in the form of cash, cheque, demand drafts, credit cards, debit cards and also by means of giving electronic instructions to the banker who will make such a payment on behalf of his customers. Electronic payments can be made in the form of Electronic Funds Transfer (EFT), Electronic Clearing Service (ECS) for small value repetitive payments and through Real Time Gross Settlement (RTGS) System for large value payments. A few banks in India have begun to offer certain banking services through Internet that facilitate transfer of funds electronically.

5. How is the payment made when a payer issues a cheque to the payee?

The process of cheque payment starts when a payer gives his personal cheque to the beneficiary. In order to get the actual payment of funds, the receiver of the cheque has to deposit the cheque in his bank account. If the beneficiary has an account in the same bank in the same city then the funds are credited into his account through internal arrangement of the bank. If the beneficiary has an account with any other bank in the same or in any other city, then his banker would ensure that funds are collected from the payer’s banker through the means of a clearing house.

6. What is a Clearing House?

A clearing house is an association of banks that facilitates payments through cheques between different bank branches within a city / place. It acts as a central meeting place for bankers to exchange the cheques drawn on one another and claim funds for the same. Such operations are called as clearing operations. Generally one bank is appointed as in-charge of the clearing operations. In the four metros and a few other major cities, the Reserve Bank of India is looking after the operations of the clearing house. Each clearing house has uniform regulations and rules for the conduct of its operations as prescribed by RBI. There are more than 1000 clearing houses operating all over the country facilitating cheque payments. These are managed by the RBI, State Bank of India and other public sector banks.

7. What is the time taken for this clearing process?

Generally, if a cheque is to be paid within the same city (local cheque), it would take 2-3 days. In some large cities, there is a system called High Value Clearing which facilitates completion of cheque clearing cycle on the same day and the customer depositing the cheque is permitted to utilise the proceeds next day morning. However, coverage of this High Value Clearing is very limited and usually available at the branches in the main business area; say Fort and Nariman Point area in Mumbai and Connaught Place in New Delhi.

In the case of outstation cheques, the time taken would vary from three to ten days. RBI has advised all the banks to publicise their cheque collection policy so that customers have an idea as to when the proceeds would be available for utilisation by the customer. For delay beyond the normal period, the banks are required to compensate the customer (even without customer asking for the same)

8. Would a bank customer incur any charges by using cheques for payments?

The person receiving payment by means of cheques would incur some charges to realise the funds through this bank. In case of local cheques, no charges are levied. In case of outstation cheques, the bank would take some processing / collection charges depending upon the amount of the cheque and the place from where it has to be realised. The charges levied by the banks are generally decided by the Indian Banks’ Association or the banks themselves. Banks are also required to publicise the schedule of service charges.

9. How can payments be made without use of cheques and cash?

Payments can be made between two or more parties by means of electronic instructions without the use of cheques. Retail payment mechanisms available to facilitate such payments are the Electronic Funds Transfer, Electronic Clearing Service, credit / debit cards etc.

10. Can a customer of a bank use the ATM of some other bank?

Yes, if the customer’s bank has an arrangement with the bank owning the ATM. Presently, stand alone ATMs are very few and usually such stand alone ATMs are installed at the branch premises. In case ATM of another bank is used, normally a service charge called "inter-change fee" is levied on the customer.

11. Are ATMs used only for cash withdrawal?

In addition to cash withdrawal, ATMs can be used for payment of utility bills, funds transfer between accounts, deposit of cheques and cash into accounts, balance enquiry and several other banking transactions which the bank/s owning the ATM's might want to offer.

12. What is the role of credit / debit cards in payment systems?

Credit / Debit cards are being widely used in the country as they provide a convenient form of making payments for goods and services without the use of cheques and cash. Banks issue credit cards to their customers. The merchant establishment who accepts credit / debit card payments will claim the amount from the customer’s bank through his own bank.

13. How is a Debit Card different from Credit Card?

Debit Card is a direct account access card. (Amount transacted gets debited immediately). The amount permitted to be transacted in debit card will be to the extent of the amount standing to the credit of the card user’s account. On the other hand, a credit card involves provision of credit to the card user which is paid by the card user on receipt of the bill either in full or partially in instalments.

14. What is EFT?

Electronic Funds Transfer (EFT) is a system whereby anyone who wants to make payment to another person / company etc. can approach his bank and make cash payment or give instructions / authorisation to transfer funds directly from his own account to the bank account of the receiver / beneficiary. Complete details such as the receiver’s name, bank account number, account type (savings or current account), bank name, city, branch name etc should be furnished to the bank at the time of requesting for such transfers so that the amount reaches the beneficiaries’ account correctly and faster. RBI is the service provider for EFT.

15. Can I use EFT to transfer funds anywhere in India?

As of now, EFT facility is available for transfer of funds between bank branches in about 15 major cities and towns across the country. Under another special scheme called as Special EFT, many more select branches (which are on the computer network of the banks) in over 200 cities have been brought into the fold of funds transfer electronically. The details of the cities and branches can be had from the respective banks as also from the RBI website.

16. How long does it take to transfer funds through EFT?

Funds transfer normally takes place on the same day or at the most the next working day depending upon the time of requesting / effecting such funds transfers. The customer should confirm this aspect from his bank at the time of requesting the funds transfer.

17. Are there any charges for transferring funds through EFT?

The banks generally charge some processing charges for EFT just as in the case of other services like demand drafts, pay orders, etc. The actual charges depend upon the amount and the banker-customer relationship. However, for the present, the RBI has waived all its charges on EFT that were being recovered from the banks for processing such funds transfer transactions at the clearing houses run by RBI. This has certainly reduced the processing cost for the banks also.

18. How can I make use of Electronic Clearing Service for receiving funds / making payments?

Electronic Clearing Service (ECS) is a retail payment system that can be used to make bulk payments / receipts of a similar nature especially where each individual payment is of a repetitive nature and of relatively smaller amount. This facility is meant for companies and government departments to make/receive large volumes of payments rather than for funds transfers by individuals. The ECS facility is available in 47 centres across India operated by RBI at places where it manages the clearing houses and by SBI and its associates in other centres. The ECS is further divided into two types – ECS (Credit) to make bulk payments to individuals/vendors and ECS (Debit) to receive bulk utility payments from individuals.

19. What is ECS (Credit)?

Under ECS (Credit) one entity / company would make payments from its bank account to a number of recipients by direct credit to their bank accounts. For instance, companies make use of ECS (Credit) to make periodic dividend / interest payments to their investors. Similarly, employers like banks, government departments, etc make monthly salary payments to their employees through ECS (Credit).Payments of repetitive nature to be made to vendors can also be made through this mode. For this purpose, the company or entity making the payment has to have the bank account details of the individual beneficiaries. The payments are affected through a sponsor bank of the Company making the payment and such bank has to ensure that there are enough funds in its accounts on the settlement day to offset the total amount for which the payment is being made for that particular settlement. Sponsor bank is generally the bank with whom the company maintains its account.

20. What is ECS (Debit)?

ECS (Debit) is mostly used by utility companies like telephone companies, electricity companies etc. to receive the bill payments directly from the bank account of their customers. Instead of making electricity bill payment through cash or by means of cheque, a consumer (individuals as well as companies) can opt to make bill payments directly into the account of the electricity provider / company / board from his own bank account. For this purpose, the consumer has to give an application to the utility company (provided the company has opted for the ECS (Debit) scheme), providing details of bank account from which the monthly / bi-monthly bill amount can be directly deducted. Such details have to be authenticated by the bank of the customer who opts for making payments through this mode. Once this option is given, the utility company would advise the consumer’s bank to debit the bill amount to his account on the due date of the bill and transfer the amount to the company’s own account. This is done by crediting the account of the sponsor bank which again is generally the bank with whom the company receiving the payments maintains the account with. The actual bill would be sent to the consumer as usual at his address as before.

21. Are there any charges for using the ECS?

As in the case of EFT, RBI has waived all its processing charges to the banks for the present. The banks, however, are free to charge a fee from their corporate customers for use of this facility.

22. How can an NRI remit money into India?

As an NRI, an individual can remit funds into India through normal banking channels using the facilities provided by the overseas bank. Alternately, an NRI can also remit funds through authorised, Money Transfer Agents (MTA). Of late, a good number of banks have launched their inward remittance products which facilitate funds transfer in matter of hours.

23. How do banks make payments for their own transactions?

Ordinarily, the transactions among banks (not pertaining to customer transactions) would be for large values .Hence such transactions are called as large-value funds transfers. The actual transfer of funds will take place through the accounts which the banks maintain with the RBI. For this purpose, banks can give cheques drawn on their account maintained with RBI to one another, which will then be processed through the clearing house. Alternatively, they can also make use of large value payment system called as Real Time Gross Settlement System where funds transfer takes place instantaneously, based on electronic instructions just like EFT in the case of individuals and companies.

24. What is Real Time Gross Settlement System?

Real Time Gross Settlement (RTGS) system, introduced in India since March 2004, is a system through which electronic instructions can be given by banks to transfer funds from their account to the account of another bank. The RTGS system is maintained and operated by the RBI and provides a means of efficient and faster funds transfer among banks facilitating their financial operations. As the name suggests, funds transfer between banks takes place on a ‘real time’ basis. Therefore, money can reach the beneficiary instantaneously and the beneficiary’s bank has the responsibility to credit the beneficiary’s account within two hours.

25. Can individuals make payments through RTGS system?

Yes, individuals can transfer funds through RTGS system through their banks. Though the system is primarily designed for large value payments, bank customers have the choice of availing of the RTGS facility for their time critical low value payments as well. There is no definition of "low value" or "large value" for the purpose of RTGS transaction. As on 31 July 2005, RTGS facility was available at more than 7500 bank branches at 401 cities and towns in India. RBI plans to make the facility available at a minimum of 10,000 branches by March 2006. At present, not all bank branches are enabled to process RTGS system funds transfer. A customer who desires to use this facility should approach his bank to find out whether his own bank branch as well as the beneficiary’s bank branch is enabled to transfer funds through RTGS system. Banks may levy charges for such funds transfers at their discretion and based on the customer-bank relationship. The customer, in turn, is entitled to claim interest for delay in credit of funds into the beneficiary’s account.

26. Whom should I approach in case of any complaints relating to customer services under payment systems?

The customer may approach the bank concerned to redress the complaint. In case of lack of response / satisfactory redressal by the bank, the customer may approach the Grievance Redressal Cell in the local RBI office, if any. The customer may also approach the office of the Banking Ombudsman for redressal of his complaint.

27. What is Cheque Truncation?

Cheque Truncation is a system of cheque clearing and settlement between banks based on electronic data/images or both without physical exchange of instrument.

28. How would Cheque Truncation benefit the bank customers?

The bank customers would get their cheques realised faster as T+0 local clearing and T+1 inter-city clearing is possible in Cheque Truncation System (CTS). As straight through processing and automated payment processing are enabled by CTS faster realisation is accompanied by a reduction in costs for the customers and the banks. It is also possible for banks to offer innovative products and services based on CTS. The banks have additional advantage of reduced reconciliation and clearing frauds.

29. What is the role of RBI in payment systems?

The RBI, apart from the role of regulator and supervisor of payment systems, plays the role of a Settlement Bank apart from being a catalyst, an operator and a user. The RBI has been taking initiatives in introducing new modes of more efficient and safe means of effecting payments in the country on a continuous basis. The RBI introduced the system of Magnetic Ink Character Recognition (MICR) based cheque clearing during late 80's for four metropolitan cities (Mumbai, New Delhi, Chennai and Kolkata). During mid 90s, electronic payment systems like ECS and EFT were introduced. During 2004-05, RTGS was introduced. Besides introducing these newer mechanisms or systems, the RBI has also been constantly ensuring that the existing systems are upgraded / refined to increase their efficiency and to meet the requirements of customers. Taking advantage of advancements in technology, the RBI has brought in additional safety measures in these systems to make them secure and also to maintain the integrity of such transactions.

Besides operating the various components of payments systems, RBI also participates in these systems as a user. RBI acts as a service provider and after the system stabilises, the responsibility is handed over to other banks / institutions for further development. RBI also has the role of regulating and supervising the various payment systems.

30. How does RBI regulate payment systems?

The Board for regulation and supervision of Payment and Settlement Systems (BPSS) is a sub-committee of the Central Board of the RBI and is the highest policy making body on payment system. The Board is assisted by a technical committee called National Payments Council (NPC) with eminent experts in the field as members. The Board as well as the council are assisted by a newly created department the Department of Payment and settlement Systems (DPSS). The Board has been entrusted with the responsibility to authorise, prescribe policies and set standards for all existing and future payment systems in the country. The Board also has the powers to determine membership criteria to these systems and related policies.

31. What were the major developments in payment and settlement systems in India during the last decade?

During the last decade, payment system services offered by banks to the common persons as well as the corporate bodies have improved substantially. It is partly due to increased use of technology in service delivery and partly due to procedural changes necessitated in the wake of competition amongst the banks.

Changes visible are the following :

Firstly, cheque clearing system has vastly improved. Time taken for collecting a local cheque has now reduced to two or three days. It used to take 4 or 5 days earlier. At 42 large cities automated cheque processing centres have been set up where cheques received by all bank branches in the city are processed at night. Time taken for collection of outstation cheques has also been reduced. Now it takes 4 to 10 days depending on location of the paying centres. It used to take 10 days to one month earlier.

Secondly, during the 90s, a few variants of electronic payment products were introduced. Electronic Clearing Service(ECS) helped large corporate bodies to pay their dividend, interest and refunds electronically on the due date. Not only the investing public could get the payment on the due date, but also the corporates could save substantially by not having to print paper instruments. One can imagine the extent of savings from the fact that 36 million of such transactions were routed through ECS during the year 2005-06. Similarly, the utility bodies are now in a position to collect their bills through ECS right on the due date. Cash flow management is getting easier. There were 16 million such transactions during 2004-05.

Thirdly, extension of electronic funds transfer (EFT) facility by the banks has altered the money transfer scenario. Using the EFT infrastructure laid by the Reserve Bank, commercial banks have started offering same-day funds transfer facility to their customers. Bank customers at 15 major centres can transfer funds to one another using this facility. A variant of EFT called Special-EFT has been designed specially for the networked branches which facilitates funds transfer on the same day within the closed group of computerized and networked branches located any where in the country. Banks with internet banking infrastructure are receiving requests from their customers for EFT and executing the requests in a straight-through manner.

Fourthly, launching of Real-Time Gross settlement (RTGS) system by RBI has added a new dimension to EFT scenario. Corporate bodies and other bank customers have now the option to transfer funds to designated branches ( around 9600 at present) instantaneously. As per the RTGS operating rules, if the credit can not be applied, it should be returned within 2 hours- meaning thereby that the maximum delay can be 2 hours.

Fifthly, there has been a rapid growth in installation of ATMs in the country. Bank customers can now access their accounts for withdrawal of cash, deposit of cash, balance enquiry, requisition of cheque books, issue of stop-instruction etc. on 24X 7 basis. ATM population is around 16,000 in the country at present and in increasing by a few hundreds each month.

Sixthly, In the last three or four years there has been a phenomenal growth in use of payment cards (debit and credit cards) as a payment medium in the country. As at the end of December 2004 there were 4.33 crore payment cards in the country. The increasing use of cards is not only due to the safety and convenience aspect but on account of retail consumer boom which has taken place in the country.

CSIR & 11th plan outlay

Schemes / Programmes	11th Plan	2007-08	2007-08	2008-09
	Outlay	BE	RE	BE
CSIR
National Laboratories	6400.00	864.00	858.00	960.00
National S&T Human Resource Development	800.00	60.00	60.00	75.00
Intellectual Property & technology Development	240.00	30.00	36.20	34.00
R&D Management Support	160.00	25.00	20.00	25.00
NIMTLI	700.00	55.00	55.00	60.00
Setting up of Institute of Translational Research	100.00	1.00	1.00	1.00
Total CSIR	8400.00	1035.00	1030.20	1155.00