Housing Loans by Commercial Banks – LTV Ratio, Risk Weight and Provisioning

RBI No.2010-11/324
DBOD.No.BP.BC. 69 /08.12.001/2010-11

December 23, 2010

The Chairmen and Managing Directors/
Chief Executive Officers of
All Commercial Banks
(excluding Regional Rural Banks)
Dear Sir/Madam,

Housing Loans by Commercial Banks –
LTV Ratio, Risk Weight and Provisioning

Please refer to paragraphs 104 to 106 of the Second Quarter Review of Monetary Policy 2010-11 (extracts enclosed), proposing certain measures in regard to housing loans by commercial banks. Accordingly, banks are advised as under:

1. Loan to Value (LTV) Ratio

At present, there is no regulatory ceiling on the LTV ratio in respect of banks’ housing loan exposures. In order to prevent excessive leveraging, the LTV ratio in respect of housing loans hereafter should not exceed 80 per cent. However, for small value housing loans, i.e. housing loans up to Rs. 20 lakh (which get categorised as priority sector advances), it has been decided that the LTV ratio should not exceed 90 per cent.

2. Risk Weight

In terms of circular DBOD.No.BP.BC.83/21.06.001/2007-08 dated May 14, 2008 the risk weights on residential housing loans with LTV ratio up to 75 per cent are 50 per cent for loans up to Rs. 30 lakh and 75 per cent for loans above that amount. In case the LTV ratio is more than 75 per cent, the risk weight of all housing loans, irrespective of the amount of loan, is 100 per cent. Henceforth, the risk weight for residential housing loans of Rs. 75 lakh and above, irrespective of the LTV ratio, will be 125 per cent to prevent excessive speculation in the high value housing segment.

3. Provisioning

It has been observed that some banks are following the practice of sanctioning housing loans at teaser rates i.e. at comparatively lower rates of interest in the first few years, after which rates are reset at higher rates. This practice raises concern as some borrowers may find it difficult to service the loans once the normal interest rate, which is higher than the rate applicable in the initial years, becomes effective.  It has been also observed that many banks at the time of initial loan appraisal, do not take into account the repaying capacity of the borrower at normal lending rates. Therefore, in view of the higher risk associated with such loans, the standard asset provisioning on the outstanding amount has been increased from 0.40 per cent to 2.00 per cent with immediate effect. The provisioning on these assets would revert to 0.40 per cent after 1 year from the date on which the rates are reset at higher rates if the accounts remain ‘standard’.

Yours faithfully,

(B. Mahapatra)
Chief General Manager –in-Charge

Encls: As above

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Housing Loans by Commercial Banks

Loan to Value Ratio in Housing Loans

104.   At present, there is no regulatory ceiling on the loan to value (LTV) ratio in respect of banks’ housing loan exposures. In order to prevent excessive leveraging, it is proposed:

• that the LTV ratio in respect of housing loans hereafter should not exceed 80 per cent.

Risk Weights on Residential Housing Loans

105. At present, the risk weights on residential housing loans with LTV ratio up to 75 per cent are 50 per cent for loans up to Rs. 30 lakh and 75 per cent for loans above that amount. In case the LTV ratio is more than 75 per cent, the risk weight of all housing loans, irrespective of the amount of loan, is 100 per cent. Accordingly, it is proposed:

• to increase the risk weight for residential housing loans of Rs. 75 lakh and above, irrespective of the LTV ratio, to 125 per cent.

Teaser Rates for Housing Loans

106. It has been observed that some banks are following the practice of sanctioning housing loans at ‘teaser rates’, wherein the loans are offered at a comparatively lower rate of interest in the first few years, after which rates are reset at higher rates. This practice raises concern as some borrowers may find it difficult to service the loans once the normal interest rate, which is higher than the rate applicable in the initial years, becomes effective. It has been observed that many banks at the time of initial loan appraisal do not take into account the repaying capacity of the borrower at normal lending rates. In view of the higher risk associated with such loans, it is proposed:

• to increase the standard asset provisioning by commercial banks for all such loans to 2 per cent.

Remarks by Smt Shyamala Gopinath, DG, RBI at the inauguration of Inter-Bank Mobile Payment Service of the National Payment Corporation of India at Mumbai on November 22, 2010

1. Mr Hota, Mr Balachandran, my colleague Mr Padmanabhan, other executives of NPCI, fellow bankers, other dignitaries and my media friends present here. I am honoured to be here and I thank the NPCI for inviting me to inaugurate the Interbank Mobile Payment Services (IMPS), which has the potential to change the retail payment landscape in India provided all the stakeholders get it right.
2. The success of mobile penetration in India is now widely recognized. This huge success has encouraged it being increasingly leveraged to address other frontier issues of inclusive growth process. Exchange of money, one of the most fundamental economic functions in any economy, is one of such frontline issues. I can do no better than refer to the observations  from a recent book¹ coauthored by  Mr. Sam Pitroda, one of the key architects of telecom revolution in India:  M-commerce is poised for a revolution, commencing in China and India.   It may initially focus on mobile banking and later, with integration of applications for consumer convenience, extend to other services.
3. Intuitively, the mobile phone, being more ubiquitous in nature offers a greater opportunity for effective delivery of financial services and furthering the cause of financial inclusion in a significant way.  With the evolution through Information & Communication Infrastructure, knowledge based initiatives, right to information and education, delivery of public services and employment and entrepreneurship mobile money has the potential to facilitate inclusive growth. .
4. Reserve Bank has acknowledged the importance of mobile banking channel as a critical element to achieving inclusive growth in India and has been taking several important steps, the recent being enabling the mobile companies to partner with banks as business correspondents. The twin challenge in our country would be to succeed in reducing the use of cash while encouraging the spread and use of mobile wallet to reap the full benefits of this ubiquitous product.
5. The three stakeholders viz. the telecom operators, banks and merchants have realized the value proposition and the only sustainable business model is where these stakeholders work together to deliver true value to customers and effectively share the costs saved and new revenues generated. Hence it is imperative that all the three while being cognizant of their strengths, do not lose sight of their weakness and find ways to integrate their offerings without losing their individuality.
6. As far as banks are concerned, the real challenge would be to reorient their business models to exploit the synergies provided by this model while addressing the key concerns.

• Leveraging on  new technology
  
• Extend the existing risk management practices to various delivery channels
  
• Acquire all these transactions over the existing settlement networks
  
• Aggregate various services as part of their existing cross-selling and co-branding initiatives
  
• Fraud prevention and security standards; safeguards against money laundering, KYC issues
  
• Ability to leverage their existing reporting, auditing, and campaign management at back end
  

Mobile Phones for financial services - across the globe
7. World over there has been increased use of mobile phones for extending financial services to the excluded populations.  Two models are mainly evident (i) bank led model and (ii) Non-bank led model.
8. The bank led model involves extending all banking facilities including money transfer facility to bank customers through the mobile channel. This pure bank led model essentially incorporates the whole gamut of financial services like acceptance of deposits, extending loans and also providing money transfer facility. The agents are employed by the banks and are therefore directly responsible for their activities.
9. The non-bank led model which are mainly provided by MSPs. A virtual electronic prepaid wallet on the mobile phone is provided to the customers. Customers can use the amount in the virtual account for remittance/payments for goods and services (M-Pesa, Kenya). The number of such models across the globe is very few. In this model the focus is on providing remittance facility. These models provide a virtual prepaid account held with  the MSP, which can be used by the customer for person-to-person remittance and payments.
10.  In India, it has been decided to adopt the bank-led model.
Mobile Payments in India :
11. The significance of this channel for the development of payment instruments and as payment channel has been recognized by the Reserve Bank. Accordingly the Reserve Bank of India issued the guidelines for Mobile Banking Transactions in October 2008.
12. The guidelines permit banks to provide mobile banking transactions and mandates that all transactions have to originate from one bank account and terminate in another bank account. The guidelines also permit banks to extend this facility through their business correspondents. The mobile banking guidelines were relaxed in December, 2009 to –

1. enhance the daily cap  on both funds transfers and transactions involving purchase of goods and services to Rs.50,000
   
2. Requirement of end-to-end encryption relaxed for transactions up to Rs.1000/- for small value transactions.
   
3. Facilitate funds transfer from a bank account using a mobile phone with cash payout at ATMs/BCs up to Rs 5000.
   

13. Non-bank entities have been permitted, in August  2009, to issue semi closed prepaid m-wallets up to the value of Rs 5000/- with full KYC compliance based on the representation received from Cellular Operators Association of India (COAI) The objective of keeping the limits low was to study the trend and progressively liberalize based on the experience. As on date a total of 6 non-bank entities have been authorized to issue prepaid mobile wallets. This includes one Mobile service provider. Another application is under process.
14. Given that India is still far from being a cash less society, the cash-in/cash-out arrangements in these models play an important part for scaling up. This can happen only if banks and mobile operators/card issuers work together as partners. It is gratifying to note that the high level of Inter-Ministerial Group anchored by the Department of Information Technology, Government of India that went into the issue, after extensive discussions, have reached more or less the same conclusion.GOI has consequently appointed various committees to address issues pertaining to provision of prioritized services for mobile banking transactions and pricing of such services.
15.  The recent relaxations contemplated in enabling mobile operators as BCs of banks should give a further fillip to these efforts.
16.  It has to be appreciated that in India, unlike in Kenya and Philippines, there are a number of    MSPs and a huge base of mobile subscribers. To have an efficient mobile based payment and remittance system would require inter-MSP payment services. This inter-operability is an important criterion for any payment product to be successful and acceptable. Facilitating this would require the setting up of a clearing and settlement arrangement for such non-bank operators. Such clearing and settlement arrangements could have systemic implications. This is where the facility being inaugurated today by the NPCI is filling an important pre requisite for the product to scale up.
17.  RBI has permitted 40 banks to do mobile banking and the customer base availing of mobile banking facilities as on September 30, 2010 stands at 8.87 lakh as compared to 6.16 lakh as at the end of August 2010. During September, 2010, 4.9 lakh transactions of value Rs. 44 crores were carried out  using this mode of payment both for transfer of funds and purchase of goods and services.
Concluding thoughts :
18. While the growth of mobile payments has been rapid, it is far from becoming an important source of financial inclusion. This in my view calls for two important facilitations. One, partnership rather than competition among the stake holders, importantly mobile companies and banks and two, a ubiquitous switch for enabling interbank p to p and p to b payments. While we are working towards achieving the first facility, NPCI has taken the important step of enabling the second important facility.
19. The Interbank Mobile Payment Services (IMPS) provides an inter-operable infrastructure to the banks for enabling interbank real time funds transfer transactions. What may be one of its strongest points, IMPS rides on the existing NFS Interbank ATM transaction switching infrastructure and message format – and hence easy for banks to adopt. It has the potential for the wide reach across the country when all NFS member banks adopt this service and promote this service aggressively.
20. Alongside this, with the recent relaxations in the BC guidelines, I believe that all the building blocks are in place. Now it is entirely up to the various stake holders to take the product forward.  More importantly, what has been facilitated by NPCI today can be construed as yet another step towards achieving its stated vision of becoming a true umbrella organisation for retail payments in this country. I hope NPCI will continue to show equal enthusiasm in commissioning and completing other important projects like the cheque truncation and the much awaited India Card.
21. I too join Mr Balachandran in congratulating the IBA, entire NPCI team and all others who have contributed to the roll out of this product. I wish the NPCI success in all their endeavors.

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Ministry of Finance Notification recognises Aadhaar number for Opening of Bank Accounts

A Ministry of Finance, Government of India, notification dated the 16 of December 2010 has recognized Aadhaar number issued by the Unique Identification Authority of India (UIDAI) as an “officially valid document” to satisfy the Know Your Customer (KYC) norms for opening bank accounts.

This notification is expected to promote the financial inclusion of the poor and the hitherto excluded by making it possible for them to easily establish their identity and open bank accounts.

The UIDAI is facilitating opening of bank accounts for the residents at the time of enrolment for Aadhaar through partner banks and acceptance of Aadhaar as a valid KYC will make the process seamless.

Employees may not be able to challenge CAT judgement in SC

Bad news is in store for government employees contesting matters relating to their service conditions in the Central Administrative Tribunal (CAT) as they may not be able to challenge the judgement in the Supreme Court.

Government employees not satisfied with CAT orders on their service matters will continue to appeal in High Courts as government's plan to enable them approach the apex court directly has received a thumbs down from the top law officer.

Recently, the Department of Personnel had asked the Law Ministry whether the present system of CAT orders being challenged in High Courts be changed to fast track disposal of cases of government employees relating to their service conditions and employment rules.

The Law Ministry referred the matter to Attorney General Ghoolam Vahanvati who opined against the move saying a 1997 Supreme Court judgement on the issue should continued to be followed.

"As of now, the buck stops here (on the issue)," Law Minister M Veerappa Moily told PTI when asked to comment on Vahanvati's opinion.

He said his ministry was trying to find a solution. "But I would not like to add anything more to it," he added.

When the CAT was established in 1985 by an Act of Parliament, its rules clearly stated that its judgements on service related matters of state and central government employees can only be challenged in the apex court.

While the same rules is in operation even today, a 1997 Supreme Court ruling held that judicial review is the basic feature of the Constitution and a High Court's power on judicial review cannot be taken away.

After the judgement, appeals against CAT rulings were entertained in High Courts.

"The Armed Forces Tribunal Act has been borrowed from CAT. Appeals against Tribunal's orders can only be challenged in the Supreme Court. But in CAT's case, it has become a three tier system...the entire purpose of CAT has been defeated," said a CAT functionary.

He said while CAT usually disposes off a case in six months, appeal in High Court often takes years.

"They pay Rs 50 as fee to move CAT, but they have to pay thousands of rupees in High Court...if the matter reaches Supreme Court, the time and cost involved is massive," he said

PARLIAMENTARY STANDINGCOMMITTEE REPORTONTHE ACADEMY OF SCIENTIFIC AND INNOVATIVE RESEARCH BILL, 2010

Open publication - Free publishing - More csir

THE ACADEMY OF SCIENTIFIC AND INNOVATIVE RESEARCH BILL, 2010

Open publication - Free publishing - More csir

Revision of Fellowships/Associatship-CSIR

Tribunal clears air on OBC job

New Delhi, Dec. 1 (PTI): The Central Administrative Tribunal has said the Centre will not reserve jobs for castes considered OBC by states but not by the Union government.

The tribunal passed the order on a petition by four members of the Jat community, recognised as an Other Backward Caste by the Delhi government, who sought appointment to posts reserved for OBCs in the Employees State Insurance Corporation, a central agency.

The petitioners pleaded before the tribunal that since the selection was to be made for the Delhi region, they, as Delhi residents, should be considered for appointment.

But the tribunal dismissed their petitions. The bench headed by V.K. Bali said: “In our opinion.... What is material is that the recruitment is being made for an agency of the central government.”

Departmental inquiry must before any stigmatic order: CAT

Express News Service Posted online: Wed Dec 01 2010, 04:47 hrs

Chandigarh : In a judgment with a far-reaching impact on employees serving on contract basis, the Chandigarh Bench of the Central Administrative Tribunal (CAT), headed by Justice S D Anand, has held that no contractual employee can be terminated by an order which is stigmatic in nature without holding a regular departmental inquiry. The order came on a petition filed by one Karamjit Singh, who worked as Director of Physical Education (DPE) in the Chandigarh Education Department on a contractual basis since August 2001. He was ordered to be terminated by the Education Secretary, UT Chandigarh, on July 23, 2009, on the allegation of resorting to corporal punishment to students while serving in Government Model Senior Secondary School, Sector 47, Chandigarh. Ranjivan Singh, counsel for the petitioner Karamjit Singh, argued that not only was the allegation against the petitioner - that he had resorted to corporal punishment to students on July 22, 2009 - false and baseless but no fair inquiry was held before holding the petitioner guilty. Thus, the termination of the petitioner was against the principles of natural justice, Singh contended. It was pointed out to the Bench that the termination of the petitioner was ordered despite the fact that the alleged victim students and their parents had approached the higher departmental authorities pleading the petitioner’s innocence. Setting aside the termination of the petitioner, the Bench allowed the petition filed by him whereby he claimed his reinstatement with effect from July 23, 2009, continuity of service and arrears of pay.

Safe ePayments: Number of Digits in a Bank Account

Safe ePayments: Number of Digits in a Bank Account: "Number of Digits in a Bank Account The key to a successful ePayment i.e RTGS/NEFT/ECS/Direct Credit is the beneficiary’s correct account n..."

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