Understanding the UID with Nandan Nilekani

For Nandan Nilekani , the chairman of Unique Identification Authority of India , the challenge now is not just to roll out one lakh or more Aadhaar numbers a day, but to create an ecosystem for players to build applications on top of this identity infrastructure. Now, Nilekani has been negotiating with the Reserve Bank of India to allow banks to treat Aadhaar number as the only document for opening an account. In a free-wheeling interview with Shantanu Nandan Sharma, Nilekani talks about life after Aadhaar when a villager would be able to use a micro-ATM in his locality, or a migrant from Bihar would be able to flash out his number in Mumbai as an identity proof. Excerpts:

You will issue only a number and not a card. That means even after I get my UID number, I will have to carry separate ID proofs?

Nilekani : Whether it’s a passport, a ration card or a PAN card—each one of these has a purpose. Whether they will continue to remain as it is, or merge in the future, it’s a matter of future direction. Fundamentally, what we are giving is an identity infrastructure.

What does the number mean for a citizen?

Nilekani : Broadly, Aadhaar, as it is called, addresses several things. It addresses the issue of inclusion. It’s most important because we have hundreds of millions of Indians who don’t have an acknowledged existence by states. And if you don’t have acknowledged existence, you can’t avail of many public and other services. You can’t rent a house, you can’t get a job. In a way, identity is the foundation for life in some sense. First, it gives a chance to a large part of people who are not in the banking system to be a part of the system.

Second, it addresses the problem of migration. India is already a migrant country. We have 120 million migrant population. And the migration is going to go up in the next 20 years. We can give them a portable identity which they can carry with them and authenticate wherever they are.

What does a migrant do now?

Nilekani : Either he has no identity or even if he has one, say a ration card, the moment he moves out of his area, it does not have any validity. The ration card is a state document, not a national document. What Aadhaar does is that you get a number in one part of the country, and it is valid in all parts of the country. It gives you national portability. Ours is a nationally verifiable identity infrastructure. So it makes identity portable like a mobile phone makes communication portable.

Also, it provides a platform for innovation. The way we have made this architecture, it allows new innovators to build new services on the top of it. Therefore, it can be a platform for delivery.

What’s the road map ahead?

Nilekani : We launched it on September 29, now we have already crossed 100,000 in seven states so far. We are sending the users a letter, and that itself sometime will be a proof of their identity. And we are providing online authentication all over India.

Recently Visa has announced that they will build a card around UID. What does it mean?

Nilekani : Aadhaar provides an identity infrastructure. If somebody is in the financial services—be it Visa, MasterCard , NPCI (National Payments Corporation of India) or even the banks—they can develop a variety of financial products which use Aadhaar authentication as one of the identity proofs. We are providing an open architecture which allows people to build applications on top of it.

Do you see more number of players to come and do business around Aadhaar?

Nilekani : We have agreements with Reserve Bank of India, Indian Banking Association, NPCI, all the banks—all of them are looking at using Aadhaar for financial inclusion.

Will the Aadhaar number be enough as a proof to open a bank account? Will the RBI agree?

Nilekani : One of the major problems for the poor to get a bank account is the lack of identity. And because of security reasons, the KYC (know your customer) requirement has become more and more demanding. The poor is out of this system. We are negotiating with regulators and the finance ministry to allow ‘Aadhaar equal to KYC’ for bank accounts. And if that happens, once you have an Aadhaar number, you don’t need any KYC to open a bank account. This will include many marginalised people into the banking system.

According to the new Bill being introduced in Parliament, you want to change the name UID.

Nilekani : No. Changing the name is just one thing. It’s now National Identification Authority of India . It gives this organisation more stature. The Bill is brought in because we need to have regulation on enrolment and authentication and penalty of misuse, etc. All that requires regulatory architecture.

There is an apprehension particularly in North-East that Aadhaar will give an illegal migrant an advantage to get Indian citizenship?

Nilekani : This is in no way, a citizenship or nationality number. The authorities who provide nationality document will continue to do the same checks.

You have crossed issuing 1 lakh numbers so far? What are the milestones next?

Nilekani : First, we have to stabilise our platform. Since we have rolled out, many small issues have come up which we need to sort. That’s what we are going to do in the next six months. Second, we have to increase the enrolment—from 10,000 a day to 100,000 a day, then we have to scale it up further. That’s a big challenge. Also, we have to launch applications on this infrastructure.

What kind of applications?

Nilekani : For the banking system, once ‘Aadhaar equal to KYC’ is agreed upon, then we will not only make opening a bank account for poor easier, but it will help creating a network of mini ATMs. So, instead of walking 40 kilometres to reach the nearest bank branch, a man in a village can walk into a micro-ATM.

How will a micro-ATM work?

Nilekani : It’s a device, say a mobile phone with fingerprint reader attached to it. You go to a micro-ATM, put your finger, authenticate yourself and withdraw money from your bank account. The micro-ATM will be inside the house of a business correpondent of a bank who will then give money say from a kirana store, and it will be linked to his account. Now, we are doing a pilot project on it.

Any other applications?

Nilekani: We are working how ‘Aadhaar equal to KYC’ may give you a mobile connection. We are discussing it with DoT (department of telecommunications). On the top of these, the government gives a lot of cash benefits like old-age pension, disability pension, widows pension, NREGA payment—all these can flow into the banking system.

What does UID mean for corporate India?

Nilekani : It has many possibilities. The employability can become simpler. Also, people’s benefits can be made more portable. Once the provident fund schemes begin to use it, the benefits become more portable.

Has life changed after joining the Govt?

Nilekani : The life is quite different. I moved from Bangalore to Delhi, moved from private sector to government, moved from running a hundred thousand person company to launch a startup. But overall, I am very happy with what I have done in the last 16 months. It has been a positive experience. It has a few challenges but every job has challenges.

You have recruited a number of bureaucrats as your main deputies?

Nilekani : We have a good mix of people. We have some excellent people from within the government and some from outside, volunteers, private sector people, interns etc. It gives us a diverse intellectual capital which is useful for the project.

But will you return to the corporate sector?

Nilekani : Governance requires a lot of technology-enabled reforms. I think I can help in that area.

Will more corporate people join the Govt?

Nilekani : I don’t want to speculate but if the government wants to bring in more people from outside, we will then have access to a wider talent pool.

What’s after UID?

Nilekani : It’s a big job. I have enough work for four years.

Courtesy : Economic times

24 Hours Payment System By NPCI

National Payment Corporation of India (NPCI) is providing Interbank Mobile Payment Service (IMPS) with seven banks viz, State Bank of India, ICICI Bank, Union Bank of India, Bank of India, Yes Bank, Axis Bank, HDFC Bank. The service allows a customer in one bank to remit funds to an account holder in another bank. Mobile phone is used as a service delivery channel of the member banks. For providing this offer, the bank needs to have authorization from Reserve Bank of India and has to be admitted as a member of IMPS. Till 31st March 2011, NPCI will be providing the service to the member banks free of charges. Thereafter switching fee of Rs. 0.25 per transaction will be levied by NPCI to member banks. Member banks may levy a fee on the customers as per the policy formulated by them. However for the present, they have also been providing this service free of charges.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question raised in Lok Sabha.

Levy of Cash Handling Charges by Banks

Normally banks do not charge from their customer for depositing money to their own account. However, some banks levy charges for cash payment against credit card bills. Charges are collected at the time of accepting cash. As per the Reserve Bank of India (RBI) guidelines banks need to inform about changes in rates or charges to their customer one month before implementation. RBI vide its circular dated September 7, 1999 had given freedom to banks to decide service charges for various services offered to customers. Banks were asked to fix service charges having regard to the cost of rendering the services. Banks were also advised to ensure that the charges are reasonable and not out of line with the average cost of providing these services. Banks should also take care to ensure that customers with low volume of activities are not penalized.
According to RBI, the currency chest holding banks have been allowed to levy service charge of Rs. 2 per packet of 100 pieces in cash deposited with their currency chest by non-currency chest branches. Banks have also been advised to put in place a transparent policy in this regard with the approval of their respective boards.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question raised in Rajya Sabha.

Mobile Number Portability Service to be Launched tomorrow Shri Kapil Sibal to Inaugurate the Service in Rohtak, Haryana

The much awaited Mobile Number Portability (MNP) service will be launched tomorrow in Rohtak, Haryana. The Union Minister of Communications & IT Shri Kapil Sibal with Shri Bhupinder Singh Hooda, Chief Minister of Haryana as the Chief Guest will inaugurate the service at a function in Rohtak at 3 p.m. on 25.11.2010.

A plan for phased migration of networks in all the remaining 22 (excluding Haryana) Licensed Service Areas in the country for working in MNP scenario is being chalked out in consultation with service providers. The detailed program for the entire country will be announced separately.

From tomorrow, mobile phone customers in Haryana Licensed Service Area (LSA) will have the choice of selecting their telecom service provider (operator) with out changing their number, provided a minimum period of 90 days has elapsed after subscription to the mobile service of the current service provider. For change of service provider i.e. porting, a subscriber has to send an SMS (PORTMobile Number) from the number he wishes to be ported, to number 1900 whereby a Unique Porting Code (UPC) will be received on SMS from his current service provider. The subscriber will need to apply in the prescribed application form to the chosen new service provider quoting the UPC which will act as a reference while filling up the application form with new service provider.

Age-Limit for Senior Citizens Facilities

The Maintenance and Welfare of Parents and Senior Citizens Act, 2007 defines ‘Senior Citizen’ as a person who has attained the age of 60 years or above. The Act provides for claim for maintenance allowance; geriatric and health care; shelter and protection of life and property.

The Act comes into force upon notification by individual State Governments. 22 States and all Union Territories have notified the Act so far. The Act is not applicable to the State of Jammu & Kashmir. The remaining 5 States have already been requested to notify the Act. 

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 today.

Streamlining of functioning of CGHS dispensaries

No. S-11030/51/2010-CGHS (P)
Government of India
Ministry of Health & Family Welfare
Department of Health & Family Welfare

Nirman Bhavan New Delhi
Dated : November 22 , 2010

OFFICE MEMORANDUM (Circular No. 1/2010)

Subject : Streamlining of functioning of CGHS dispensaries.

The question of streamlining the functioning of CGHS dispensaries has been engaging the attention of the Ministry of Health & Family Welfare for some time now. After considering the suggestions received from various quarters and after discussing the matter with officials of CGHS, it has been decided, as an initial measure, to streamline the functioning of CGHS dispensaries as below :-

(i) There is a need for officers and staff in CGHS dispensaries to further improve the delivery of service to CGHS beneficiaries. There should be a constant and conscious effort to redress most of the grievances and problems of these beneficiaries at the dispensary level so that there is no inconvenience caused to them forcing them to approach higher authorities for redressal of their grievances. The entire staff at the dispensary level have to ensure a polite, positive and responsible attitude to make the service delivery better. The CMO In-charge must make every effort to ensure this user friendly environment. Complaints of rude/impolite behavior need to be checked and stern action taken by CMOs (Incharge).

(ii) It is well established that CGHS beneficiaries need to be provided better service. Senior citizens/pensioners among the CGHS beneficiaries deserve special attention and response. It is re-iterated that senior citizens/pensioners need to be given out of queue treatment and service at each activity level. Despite repeated instructions in this regard, this system is generally not being enforced at the dispensary level. CMOs incharge must ensure compliance of these instructions.

(iii) CMOs In-charge of the dispensaries shall personally make rounds of the dispensary particularly during peak hours to ensure that there is proper environment and beneficiaries particularly pensioners/Senior Citizens are being treated promptly;

(iv) The Zonal Additional Directors/Joint Directors shall convene the meetings of Pensioners Associations once in two months alongwith CMOs (Incharge) without fail.

(v) A complaint/suggestion/feedback Box with details like number of complaints received and disposed etc. under a seal and lock will be kept at each dispensary and will be opened by the CMO In-charge in the presence of at least two members of the Advisory Committee when the Advisory Committee meeting is being held and necessary action taken by the Advisory Committee with regard to complaints/ suggestions/feedback thus received and, wherever required, the matter will be referred to higher authorities for necessary action.

(vi) All Zonal Additional Directors and Joint Directors shall conduct at least five surprise inspections of the dispensaries in Delhi and at least two in other cities in a month and report the outcome of the inspection indicating the areas such as punctuality, availability and behavior of officers/staff, special care for pensioners/Senior Citizens, deficit areas/complaints and also the good work done in each of the dispensaries inspected, by way of a confidential monthly d.o. letter to reach AS & DG (CGHS) without fail on or before 10th of the succeeding month;

(vii) It is seen that a large number of beneficiaries go to the dispensaries for taking repeat medicines. Authorization of repeat medicines will hereinafter be done by any of the CMOs, apart from the CMO In-charge, available in the dispensary;

(viii) The Zonal Additional Directors/Joint Directors will personally monitor and ensure that the empanelled hospitals etc. do adhere to the terms & conditions of MOAs. They will also supervise the services, if any, being provided by the private parties in their zones such as dialysis, dental services etc.

2. Director, CGHS and all Additional Directors/Joint Directors and CMOs In-charge are hereby directed to fully comply with the instructions contained in this Office Memorandum in both letter and spirit. Noncompliance shall be viewed seriously.

(L.C. Goyal)
AS & DG (CGHS)

Relief to the family of GS who die while in service

Preventive Health check-up of CGHSbeneficiaries announced

In order to play pro-active role in providing medical facilities to its beneficiaries, the Central Government

Health Scheme (CGHS) is to provide preventive health check-up to its beneficiaries. Effective from February 24, 2010, the preventive check-up scheme is implemented for all CGHS beneficiaries above the age of 40 years. In Delhi, the check-ups for the voluntary scheme have been introduced in two dispensaries in Ramakrishna Puram (in Sector XII and Sector IV). To avail this facility, beneficiaries can register themselves in their respective dispensaries. The tests to be carried out are:

Male
Hb; Blood Sugar (Fasting and PP); LFT; KFT; T3 T4TSH; Lipid Profile and ECG
Female
Hb; Blood Sugar (Fasting and PP); LFT;KFT; T3 T4 TSH; Lipid Profile; ECG and Pap Smear

After investigations, the beneficiaries are to undergo history taking, general examination, eye examination and

gynecological examination. They are then to be examined by a medical specialist who would advise on the follow-up. Beneficiaries intending to get the health check-up need not get prior permission from their respective Ministries / Departments. The cost of this check-up is Rs. 800/- for male and Rs. 900/- for female beneficiaries. The expenditure incurred by the serving employees and their eligible dependents is to be reimbursed by the Ministry / Department in which they are working.

(Department of Health and Family Welfare OM No. S 11015 / 2 / 2008 – CGHSDesk II dated July 29, 2010)

Study Leave for Fellowships offered by reputed Institutes

Revised emolument of SRF/RA working in ICAR

LIST OF GOVERNMENT OF INDIA HOLIDAYS DURING THE YEAR 2011- FOR DELHI / NEW DELHI OFFICES

LIST OF IMPORTANT MEDICINAL AND AROMATIC PLANT UNDER CULTIVATION IN DIFFERENT STATES

Botanical name of species, with common name in bracket

1.Aconitum heterophyllum (Atis)

2.Acorus calamus (Vach)

3.Aegle marmelos (Bael)

4.Aloe vera (Ghrit kumari)

5.Andrographis paniculata (Kalmegh)

6.Aquilaria agallocha (Agar)

7.Artemisia annua (Maleria buti)

8.Asparagus racemosus (Satawar)

9.Azadirachta indica (Neem)

10.Bacopa monnieri (Brahami)

11.Cassia angustifolia (Sena)

12.Catharanthus roseus (Pariwinkle, Sadabahar)

13.Centella asiatica (Mandookparni)

14.Chlorophytum borivillianum (Safed musli)

15.Cinnamomum verum (Dalchini)

16.Coleus barbatus syn. Coleus forskohlii(Patharchur)

17.Commiphora wightii (Guggal)

18.Crocus sativus (Kesar)

19.Cymbopogon flexuosus (Lemon grass)

20.Cymbopogan martinii (Palmarosa)

21.Cymbopogon winternianus (Citronela)

22.Eucalyptus citriodora (Citriodora)

23.Emblica officinalis syn. Phyllanthus emblica(Amla)

24.Gloriosa superba (Kalihari)

25.Glycyrrhiza glabra (Mulethi)

26.Gmelina arborea (Gambhari)

27.Gymnema sylvestre (Gudmar)

28.Hedychium spicatum (Kapur kachri)

29.Hibiscus rosa-sinensis (Gudhal)

30.Inula racemosa (Pushkarmool)

31.Litsea glutinosa (Litsea)

32.Mucuna prurita (Kawanch)

33.Matricaria chamomilla (Chamomile)

34.Mentha arvensis (Mint)

35.Mentha spicata (Spearmint)

36.Nardostachys jatamansi (Jatamansi)

37.Ocimum sanctam (Tulsi)

38.Oroxylum indicum (Shyonaka, sona)

39.Pelargonium graveolens (Geranium)

40.Phyllanthus amarus (Bhumi amlaki)

41.Picrorrhiza kurrooa (Kutki)

42.Piper betel (Betelvine)

43.Piper longum (Pippali)

44.Plantago ovata (Isabgol)

45.Plumbago zeylenica (Chitrak)

46.Podophyllum hexandrum (Bankakari)

47.Pogostemon cablin (Patchouli)

48.Pterocarpus marsupium (Beejasar)

49.Rauvolfia serpentina (Sarpagandha)

50.Rosa damascena (Dasmask rose)

51.Santalum album (Chandan)

52.Saraca asoca (Ashok)

53.Saussurea costus (Kuth)

54.Smilex china (Lokhandi)

55.Solanum nigrum (Makoy)

56.Stevia rebaudiana (Stevia)

57.Swertia chirayita (Chirata)

58.Taxus baccata (Taxus)

59.Terminalia arjuna (Arjun)

60.Terminalia ballerica (Baheda)

61.Terminalia chebula (Haritaki)

62.Tinospora cordifolia (Giloe)

63.Valeriana jatamansi (Tagar)

64.Vetiveria zizanioides (Vetiver)

65.Vitex nigundo (Nirgundi)

66.Withania somnifera (Ashwagandha)

CVC -Metrics to measure Vigilence awareness

CSIR Effective Financial Managment software update

  As per information available on this link the following items has already been deployed in the new software:
 
Reports

*Bank Day Book

*Purchase Day Book

*JV Book

*General Ledgers

*Sub Ledger

*Trial Balance

*Trial Balance (Consolidated)

*SL Trial Balance

*Balance Sheet

*Balance Sheet (Multiple Centre)

*Balance Sheet (Consolidated)

*Income & Expenditure A/C

*Income & Expenditure A/C (Consolidated)

*Schedule Wise Income & Expenditure A/C

*Income & Expenditure (Multiple Centre)

*Receipt & Payment Account

*5% LRF Transfer

*Broad Sheet

*OB Detail

*OB Summary

*Project Wise ledger

*Fund Code Wise Cash Balance

*Diary Report

*Head Wise Allocation Expense Chart

Payments

*Children Education Allowance

*LTC Advance

*LTC Adjustment

*Journal Voucher

*Telephone Bill

  Reimbursement

*Vendor Bill Automated

*GPF Withdrawal

*GPF Ledger

*GPF Broadsheet

*GPF Advance

*Paybill Posting in FA

*Payment to Project Asstt. in ICT Project

*Overtime Allowance

*F&AO Cheque (D.D.O. Cheque)

*Multi Voucher Single Cheque

*Single Voucher Multi Cheque

*Pay Slip

*Salary Sheet

*OB Advance

*OB Adjustment

*Configuration Module

*Bank Reconcilliation

*Dealing Assistance Intelligent Panel

*SO Dashboard

*Self Test

*Search & Print Posted Voucher

*List of Passed Bill

*All Payment Posting

DG Dashboard

*Allocation & Expenditure

*Financial Performance

*Key Reports

*Fund Balance

Others

*Configuration Module

*Bank Reconcilliation

*Dealing Assistance Intelligent Panel

*Dealing Assistance Intelligent Panel

JUNE 2011 CSIR-UGC NET NEW EXAM SCHEME

It has been decided to introduce Single Paper MCQ MCQ (Multiple Choice Question) based test from June 2011 exam. The pattern for the Single Paper MCQ test shall be as given below:-

v  The MCQ test paper of each subject shall carry a maximum of 200 marks.

v  The exam shall be for duration of three hours.

v  The question paper shall be divided in three parts

Ø    Part 'A' shall be common to all subjects. This part shall be a test containing a maximum of 20 questions of General Science and Research Aptitude test. The candidates shall be required to answer any 15 questions of two marks each. The total marks allocated to this section shall be 30 out of 200

Ø    Part 'B' shall   contain subject-related conventional MCQs. The total marks allocated to this section shall be 70 out of 200. The maximum number of questions to be attempted shall be in the range of 25-35.

Ø    Part 'C' shall contain higher value questions that may test the candidate's knowledge of scientific concepts and/or application of the scientific concepts. The questions shall be of analytical nature where a candidate is expected to apply the scientific knowledge to arrive at the solution to the given scientific problem.  The total marks allocated to this section shall be 100 out of 200.

Ø     A negative marking for wrong answers, wherever required, shall be @ 25% 

To enable the candidates to go through the questions, the question paper booklet shall be distributed 15 minutes before the scheduled time of the exam. The Answer sheet shall be distributed at the scheduled time of the exam.

·                       On completion of the exam i.e. at the scheduled closing time of the exam, the candidates shall be allowed to carry the Question Paper Booklet. No candidate is allowed to carry the Question Paper Booklet in case he/she chooses to leave the test before the scheduled closing time.

·                       Model Question Paper shall be released at the time of Notification for June 2011 exam

v The new pattern shall be implemented from June, 2011 exam

Speech of CAG at Inaugural Function of 150th Anniversary

The Institution of the Comptroller and Auditor General of India has completed 150 years of its existence. Hon’ble President of India Smt. Pratibha Devisingh Patil inaugurated the celebrations of completion of 150 years of this institution by releasing the Commemorative Postage Stamp, here today, at a function in Vigyan Bhavan. Hon’ble Prime Minister Dr. Manmohan Singh released the Vision and Mission Statement of the Indian Audit and Accounts Department (IA&AD) on this occasion. The Finance Minister Shri Pranab Mukherjee, Chairman, Public Accounts Committee, Shri Murli Manohar Joshi and Minister of State, Communications and Information Technology, Shri Gurudas Kamat were also resent on the occasion.

The Comptroller and Auditor General of India, Shri Vinod Rai delivered the welcome address at the inaugural function. Following is the text of his speech:

“It is a matter of great honour for each one of us in the Indian Audit and Accounts Department, to have the opportunity to welcome you to the inaugural function associated with the completion of 150 years of the Institution of the Comptroller and Auditor General of India. It was on 16th November, 1860 that Sir Edmund Drummond took charge as the first Auditor General of India. The importance of such an institution was realized by the then British Government immediately after they assumed power from the East India Company in 1858. This Department is one of the earliest institutions in the evolution of democratic processes in India and set up to bring about transparency, accountability and probity in public life. Our mission is to promote excellence in auditing and governance. Whilst distinctive roles were envisaged for the Legislature, Executive and the Judiciary; to ensure checks democracies worldwide have relied on Supreme Audit Institutions for providing assurance to the Legislature and public at large.

India is a vibrant democracy. With the reforms introduced in the economy and government, our institution also has kept pace in its approach to audit and the methodology of audit. We no longer submit to Parliament Reports which are dated and of limited relevance to the present day administration. We have shed our age old fixation of postmortem to merely extract petty faults in government functioning. Today, we bring to bear a holistic approach focusing on the macro picture. Our attempt is to present the Audit Report at the earliest so that mid course corrections can be undertaken. The mindset is positive so as to make recommendations for improvement. We undertake Performance Audits to provide government an objective and clinical analysis of the efficiency and outcomes of budgetary plan expenditures. We no longer focus merely on audit of government expenditure. Our audit focus is on the outcome of such expenditures.

I am proud that this institution, in about 60 years of its existence post independence, has withstood the test of its independence and objectivity. We have an excellent pool of professionals. We continuously upgrade their skills to keep abreast with international best practices. Our training institutions are highly acknowledged by other Supreme Audit Institutions. We train about 200 foreign Audit Officers every year on different aspects of audit. The institution of the Comptroller and Auditor General of India has, by its professional excellence and pool of knowledgeable experts attained a pride of place in the international audit community. It is in recognition of our skill sets that we have been chosen to audit large international agencies like the Food & Agriculture Organization, World Health Organization, World Food Programe and the United Nations among others.

Within the country, we have been aspiring to partner the Government to improve governance at the Centre and the States. The Government, through every Five Year Plan has improved on the delivery process of its flagship programmes. With the introduction of newer models of implementation such as Public Private Partnership, using Panchayati Raj Institutions for delivering social sector schemes and setting up specialized non-governmental institutions for better public participation, there is a need for us to revisit our legal mandate which did not envisage any such models earlier. It has to be recognized that more than 50% of central plan funds are now being routed through these channels. The Parliament and the Government, have to take a view on whether parliamentary oversight has to be maintained over such spending. It was in this context, and after full discussion with the Government, that we submitted in November last year a revised statute to ensure automatic legal mandate to the CAG on such spending. We await the introduction of the proposed statute in Parliament.

This department is of the firm view that policy formulation is the prerogative of Government. We merely seek to objectively analyse the implementation of those policies and assess the outcomes. We are engaged in this process to build capacity in the Centre and States for transition to Accrual accounting. We have associated ourselves with Government to help in devising efficient delivery programmes. We address systems and processes to ensure optimal utilization of resources. We seek out best practices and disseminate them across departments to partner in upgrading governance.

In conclusion, I am privileged to welcome all our distinguished guests on this occasion. On behalf of each of us in the department and on my own personal behalf, I would like to assure you that we stand committed to support excellence, probity, transparency and accountability.”

Use your bank account to avoid penalty

If you fail to carry out any transaction for 24 months through your bank account, it can be frozen. This is in line with the Reserve Bank of India's (RBI) mandate, that a bank account automatically gets classified as inoperative or dormant if there are no 'customer-induced transactions' for that period. 

These include any debit or credit transactions, as well as third-party deposits or remittances. However, according to the guidelines, the bank cannot freeze your account if you fail to meet the minimum balance requirement.  Also, if banks deposit the interest earned on fixed deposit in your account, the guidelines consider it as a customer-induced transaction, keeping the account operational.

You can avoid all this, by making small transactions routinely. For example, you can use the account for small ATM withdrawal or payments.  If you have shifted cities or countries, you can use netbanking to transfer small sums between two accounts. If the account is no longer useful, best is to close the account. Normally, the bank would intimate the customer two to three months prior to the account becoming inoperative. If you still don't take any action, the bank will send a letter declaring the account dormant. 

Charges: An inoperative account may not affect your credit history. But, it would attract a penalty, depending on the bank's policy.  The penalty is levied only for the period during which the account is classified as being non-operational. This charge of Rs 50-200 is mostly levied on an annual basis.

Additionally, if the account balance is below the average minimum requirement of the bank, the customer may have to pay non-maintenance fees for the period as well. The fees are payable on a quarterly basis. For instance, if you are holding an account with HDFC Bank , the average minimum balance if the account is held in an urban area or metro is Rs 10,000 and for an account held in a rural or semi-urban area is Rs 5,000.

A charge of Rs 750 would be levied on a quarterly basis if this minimum balance is not maintained. The charges may be hugely different for public sector and private sector banks. At Union Bank of India , failure to maintain a minimum average quarterly balance of Rs 1,000 in an urban area would attract a penalty of Rs 90 and for Rs 500, a penalty of Rs 60.

These charges are deducted directly from the account. And, "Once the entire balance is exhausted, the account is frozen and the customer is intimated accordingly. If he does not respond, the account is removed permanently from our system," says S Govindan, general manager, personal banking, Union Bank of India. 

While there is no fixed period before which the account is removed, it mostly takes one to two years.

Reactivation: According to RBI's guidelines, banks cannot levy any charges for activation of a dormant account. However, customers would have to first give a request letter to the branch at which the account is held. They will also have to comply with the know-your-customer (KYC) norms by submitting proof of residence and proof of identity.

Interest: Though the account is declared dormant, the bank would continue to pay interest on the balance. It would do so even if the account balance dips below the minimum balance requirement. The interest earned is liable for tax payment. It is considered as income from other sources and taxed, depending on the income slab. Since the banks do not send account statements for inoperative accounts, the onus lies with you to calculate your tax liability.

Homi Mistry, tax partner at Deloitte, Haskins & Sells, suggests, "If you know your account balance, you can estimate the interest payable to you and round it off to a slightly higher amount. You can then add it to your overall income to compute the total tax liability."

Courtesy : TaxGuru.in

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 .