Sunday, January 10, 2016

India Post expects to collect Rs 1,500 cr through COD in FY16

The Department of Posts, which has tied-up with top e-commerce companies, expects to meet the target of Rs 1,500 crore collection through cash-on-delivery this fiscal.

The Department of Posts has already collected Rs 1,000 crore through cash-on-delivery (CoD) till December.
"The Postal Department has collected Rs 1,000 crore so far through CoD and this figure is likely to cross Rs 1,500 crore by the end of the current fiscal," Communications and IT Minister Ravi Shankar Prasad told PTI.
The Department has partnered with e-tailers, including Flipkart, Snapdeal, Amazon, YepMe, Shopclues, for delivering pre-paid as well as CoD orders. Amazon is its largest business partner in e-Commerce.

The Minister said complete revival of the postal department is his top-most priority.

"I want to see India as a big hub of ecommerce, delivery and digital services," Prasad said.

Average business provided per month by major players including Amazon is 3 lakh articles, Snapdeal 80,000 articles, Myntra 50,000 articles, Flipkart 30,000 articles and Yepme 60,000 articles.

India Post registers massive growth through parcel deliveries

Mumbai, Jan 9 (IANS) India Post registered a 37 percent growth in 2014-2015, up from a minus two percent the previous year, and has grown by a whopping 117 percent in the first half of the current fiscal, Communications Minister Ravi Shankar Prasad said here on Saturday.

Armed with a tie-up with more than 400 e-Commerce agencies like Amazon, Flipkart, Snapdeal, etc, it has potential to become the world’s leading e-Commerce delivery platform, he said.

Amazon has become the largest business partner of India Post’s e-Commerce Division, Prasad added, while inaugurating India Post’s 12,000 square feet state-of-the-art e-Commerce Parcel Processing Centre in Parel here.
India Post notched a revenue of Rs.11,636 crore last year, with the post and parcel related services accounting for 42 percent while the rest was generated by savings bank activities, he said, adding the India Post Payment Bank would be launched by March 2017 to extend access to formal banking in rural areas.
All rural post offices would get hand-held devices to facilitate banking insurance businesses and contribution in propagating government schemes, he said.

The new processing centre is fully mechanized and computerized with conveyer belts, scanners, electronic weighing scales, etc, and has a dedicated transport facility to dispatch parcel bags to the Mumbai Airport.

Presently, around 7,000 e-Commerce parcels are being processed daily at the centre which has a capacity to handle 30,000 parcels round-the-clock.

Speedy delivery of parcels is enabled through four dedicated mechanized nodal delivery centres encompassing 21 post offices in the city, with more slated to added, with deliveries on Sundays and holidays.

Chief Postmaster General of Maharashtra-Goa Ashok K. Das, Postmaster General (PGM), Mail V.K. Gupta, PMG Business Department Rakesh Kumar, and PMG Mumbai Region Ranjit Kumar were present on the occasion.

India Post to Issue Digital Life Certificate for Pensioners

India Post is getting ready to issue Digital Life Certificate to pensioners. This facility can be availed from selected Post Offices across the country. These Post Offices are already supplied with fingerprint scanner for Aadhaar authentication. 

Digital life Certificate for Pensioners, the scheme of the Government of India known as Jeevan Pramaan is a biometric enabled digital service for pensioners. Pensioners of Central Government, State Government or any other Government organization can take benefit of this facility.

Immovable property return to be submitted by all Central Govt. employees within 31.01.2016

DOPT reminded that all Central Govt. employees (Group 'A', 'B', 'C' and erstwhile Group 'D) employees have to submit annual property return for immovable properties for the year 2015 within 31.01.2016.

As per the prevailing practice and norms, the return had to by filed by Gr A and B officers only. With the introduction of Lokpal and Lokayukt Act 2013, every Govt employee has to file the assets and liabilities return in prescribed form. 

"The undersigned is directed to refer to the OfficeMemorandum of even number dated the 26th October, 2015 on the above subject and to say that the Annual Property Returns required to be filed under the Central Civil Services (Conduct) Rules, 1964 for the year 2015 which is required to be filed by the 31st January, 2016, may be filed in the formsprescribed under the CCS (Conduct) Rules, 1964. It is reiterated that the returns are required to be filed by all the Government servants belonging to Group 'A', 'B', 'C' and erstwhile Group 'D', in terms of Rule 18(4) of the CCS (Conduct) Rules, 1964 which empowers the Government to require a Government servant to submit a statement of movable or immovable property as may be specified in the order."
Click below link to view OM dated 26.10.2015 & 05.01.2016

Click here for the O.M. dated 05.01.2016
Click here for the earlier O.M. dated 26.10.2015 (under reference)

NPS to Give Extra Tax Deduction of Rs 50,000 : 10 Things to Know

Finance Minister Arun Jaitley in Budget 2015-16 introduced an additional income tax deduction of Rs 50,000 for contribution to the New Pension Scheme (NPS) under Section 80CCD. NPS is a voluntary pension scheme, which is regulated by the Pension Fund Regulatory and Development Authority. 

Under this scheme, subscribers invest in a fund chosen by them and at the time of retirement they get a lump sum amount depending on the performance of that fund. The returns from NPS are not guaranteed; they are market-linked. NPS was introduced in 2004 for the new government employees but from 2009, it was extended to all on a voluntary basis. 
Here is your 10-point cheat-sheet 
  1. Tax savings: The extra deduction of Rs 50,000 on NPS can help those in the highest tax bracket of 30 per cent save an additional Rs 16,000 in taxes. Those in 20 per cent tax bracket can save over Rs 10,000 while those in 10 per cent can save over Rs 5,000. 
  2. More tax-saving options: This extra deduction of Rs 50,000 on NPS will increase the total deduction allowed under Section 80C and 80CCD of Income Tax Act to Rs 2 lakh, says Mayur Shah, executive tax director at EY. The combined limit earlier was Rs 1.5 lakh. Section 80C relates to deduction allowed under investments in instruments like PPF and insurance policies. Section 80CCD represents deduction with respect to a pension plan notified by the government, including NPS. The limit on deduction on 80CCD, including contribution to the New Pension Scheme, was also increased in the Budget to Rs 1.5 lakh from Rs 1 lakh. This will help investors have more tax-saving options. 
  3. Other Budget proposal: The Finance Minister also said that the government is planning to give an option to employees to opt out of Employees Provident Fund (EPF) and instead invest in NPS for retirement savings. 
  4. Tax on withdrawal: Mr Jaitley however did not extend tax breaks on withdrawal from NPS. So contribution to NPS up to Rs 1.5 lakh and the interest earned are not taxed but the withdrawal becomes taxable. Other savings schemes such as public provident fund (PPF) and employee provident fund (EPF), however, enjoy tax benefits in all the three stages: contribution, interest earned and withdrawal. 
  5. NPS structure: The scheme is structured into two tiers: Tier-I and Tier II accounts. The Tier-I account is the non-withdrawable account meant for savings for retirement. The contribution to Tier-I account is only eligible for tax benefits. 
  6. Tier-II account is a voluntary withdrawable account which can be opened only when there is an active Tier I account in the name of the subscriber. The withdrawals are permitted from this account as per the needs of the subscriber. The Tier-II account is more like a bank savings account. 
  7. Withdrawal options: Subscribers can exit from NPS upon attaining the age of 60 (for all subscribers other than government employees). At least 40 per cent of the accumulated pension wealth of the subscriber needs to be mandatorily used for purchase of an annuity for the monthly pension of the subscriber and the balance is paid as a lump sum payment to the subscriber. Annuity service providers are responsible for delivering a regular monthly pension to the subscriber after exit from the NPS. 
Subscribers can exit from NPS even before attaining the age of 60 by using at least 80 per cent of the accumulated pension wealth for purchase of an annuity for providing for the monthly pension. The balance is paid as a lump sum payment to the subscriber. 

7) Fund options: NPS offers a range of investment options and choice of pension fund manager who will manage subscribers' funds. Individuals also have an option to switch over from one investment option to another or from one fund manager to another. The returns are, however, totally market-linked. Investors have the option for choosing stocks, government bonds and other securities as their asset choice. But the equity part of the allocation cannot exceed 50 per cent. 

8) Minimum deposit: For Tier-I account, Rs. 6,000 has to be deposited by the subscriber in a year and the minimum contribution is Rs 500 at one time. 

9) Portability: After opening an NPS account, a subscriber gets a Permanent Retirement Account Number (PRAN), which is a unique number and remains with the subscriber throughout his/her lifetime. NPS provides portability across jobs and across locations. 

10) Opening and tracking of account: Many banks are registered with Pension Fund Regulatory and Development Authority (PFRDA) to provide NPA-related services to individuals. NPS account can be opened to anyone from 18 years to 60 years of age. All transactions as well as the current fund value can be tracked online. 

Source : http://profit.ndtv.com

Citi, Barclays, 38 others willing to partner India Post: Ravi Shankar Prasad

MUMBAI: As many as 40 domestic and multinational financial giants, including Citigroup, Barclays and ICICI Bank, have sought to partner India Post for its upcoming payments bank, Union Minister Ravi Shankar Prasad said today. 

"You have only got the in-principle approval, and other aspects like appointing a consultant are on, but already 40 big financial services groups from the country and abroad have evinced interest in a tie-up with the Postal Department," the Communications and IT Minister said while addressing postal employees here. 

He named American banking giant Citigroup, British lender Barclays and the country's largest private sector lender ICICI Bank among those who have sent tie-up proposals. 
Prasad said the department is aiming to get the bank operational by March 2017. 
He said some of the requests are for selling insurance, while some seek to provide government-to-citizen and company-to-citizen services. 

The Postal Department features in a list of 11 entities who were given the go-ahead by the Reserve Bank last August to set up payments banks, aimed at promoting financial inclusion through deepening the formal financial system by focusing on transactional banking. 

India Post is the only state-run entity to feature in the list, which is populated by industrial houses like the Birlas, Ambanis, and Mahindras, apart from telecom biggies like Airtel and Vodafone. 

The Department's reach, spanning 1.54 lakh touch points across the country, is its strength and the employees should leverage it for maximising revenue, he said. 

Prasad said as against a dip of 2 per cent in 2013-14, the revenue of the department grew 37 per cent in FY15 and has jumped 120 per cent till December 2015. He, however, did not give the absolute figures. 

Prasad, who was speaking after inaugurating an e-commerce parcel processing centre at Parel in central Mumbai, said the department has done cash-on-delivery based deliveries of Rs 1,000 crore in 2015. 

Noting that the e-commerce market is around Rs 98,000 crore and is estimated to grow exponentially going forward, Prasad asked the employees to make India Post the largest e-commerce logistics company in the world. 

Over 65 per cent of the e-commerce orders are from smaller towns, which can serve as an advantage to the Department due to its wide network, he said. 

To develop the network, the department is getting all the post offices on the core banking platform and is also giving hand-held devices to postmen that can be used during deliveries and selling insurance by March 2017, he said.

Haryana Circle hire the e Riskshaw (Scooter) for delivery of Parcel from Parcel hub to customers

Haryana Circle hire the e Riskshaw (Scooter) for delivery of Parcel from Parcel hub to customers, which is cheap and pollution free.

Gurgaon: Moving away from the classic image of a cycle-riding postman, the district postal department has introduced e-bikes for postal delivery, in a pilot project launched in DLF Phase I on Friday. It has also provided solar energy panels to two post offices in the city.

The project has been initiated on experimental basis, and other post offices will be absorbed over time. Senior officials said six rented e-bikes have been introduced as of now, and the average running cost of each comes up to Rs 1.50/km, inclusive of electricity and maintenance.

"This initiative has been taken in support of a pollution-free environment. Besides, it will also help in speedy and prompt delivery of mail," said Umesh Verma, post master general.

Postmen have welcomed the introduction, though they accept the new mode of transport will take some time getting used to. Officials from the department said the e-bikes have made a postman's job much easier and comfortable, saving close to two hours each day.

As a part of the project, the Gurgaon postal division has also installed solar energy panels of 2kVA at the post offices in DLF Qutub Enclave and DLF phase-II. These solar panels have been connected with commercial inverters to provide uninterrupted electricity to the two post offices.

"These measures will not only help us contribute in keeping the environment clean, it will also help us bringing down costs after the initial investment," said Verma.
source : timesofindia

Latest updates on CBS roll outs, ATM roll outs and achievements on various schemes of India Post

CBS Roll Out - Status and Action Points



















India Post can emerge as global e-Commerce delivery hub: Prasad


India Post has a potential to emerge as world’s leading e-Commerce delivery platform, Union Minister for Communications and Information Technology Ravi Shankar Prasad said on Saturday after inaugurating an e-Commerce Parcel Processing Centre at Parel in Central Mumbai.
Union Minister for Communations and IT Ravi Shankar Prasad at the inauguration—Photo: Special arrangement
Mr Prasad said India Post had updated itself with latest technological developments in the country and has tied up with more than 400 eCommerce agencies including Flipkart, Amazon and Snapdeal for delivering eCommerce pre-paid as well as Cash-on-Delivery orders. Amazon is the largest business partner of India Post’s eCommerce division.

He said the parcel revenue, which registered a 2 per cent decline in 2013-14, had clocked 37 per cent growth in 2014-15 and further grew by 117 per cent during the first half of 2015-16.

He said India Post posted a total revenue of Rs 11,636 crores during 2014-15, with post and parcel related services accounting for 42 per cent of the revenue and the rest coming from the Savings Bank activities.

Mr Prasad also announced that India Post Payment Bank would be set up by March 2017 to extend access to formal banking in rural areas.

He said all rural post offices would be provided hand held devices to facilitate banking insurance business and contribute in propagating the government schemes.

Spread over 12,000 sq feet, the e-Commerce Parcel Processing Centre at Parel is fully mechanized and computerised using conveyer belts, scanners, computers and electronic weighing scales. It has also been provided with a dedicated transport facility to dispatch parcel bags to Mumbai Airport. Currently, the centre processes around 7,000 e-Commerce parcels per day and has an installed capacity to handle 30,000 e-Commerce parcels in a day in three shifts.


The quick delivery of E-Commerce parcels is done through four dedicated mechanised nodal delivery centres which cover 21 delivery post offices in Mumbai.

Soon remaining post offices in Mumbai would also be equipped with mechanised nodal delivery system which will ensure that parcels could be delivered on Sundays as well as holidays and customers can track their parcels in real time on Indian Post website.

Despite Pay Commission Award, Indian Economy To Keep Up Momentum

Despite Pay Commission Award, Indian Economy To Keep Up Momentum

New Delhi: Indian economy will keep up its momentum fiscal year 2016-17 despite pressure on the budget from a salary hike for central government employees and additional expenditure for One Rank One Pension (OROP), the World Bank said.
The Seventh Pay Commission award bill is about Rs 1,02,000 crore, according to the Finance Minister Arun Jaitley that can be afforded.

The World Bank report forecasts India will continue to be the bright spot of the global economy and is projected to grow at a robust 7.8% in fiscal 2016-17, more than a percentage point higher than China.

India, the dominant economy in Asia, is projected to grow by a robust 7.8% this year and 7.9% in the next two years.

On the other hand, the employees will spend their increased salary on consumption, which will also have a positive impact on GDP growth.

The Seventh Pay Commission Award will be introduced in April next financial year, while it will be made effective from January 1.

48 lakh central government employees will draw their salaries as per Seventh Pay Commission Award with arrears from April.
In addition, expenditure burden is expected to be around Rs 8,000 crore due to One Rank One Pension (OROP).The 52 lakh pensioners will also get a hike 24% in in their pension from next this fiscal year.
The government will make effective only the hike in basic salaries from January; the allowances will be raised from the date of implementation.

The Seventh Pay Commission award that takes effect in January will increase the country’s total pay bill about Rs 1,02,000 crore, according to the Finance Minister Arun Jaitley that can be afforded.

The breakup total estimated increase of about Rs 1,02,000 crore would look like: the increase in salary would account for Rs 39,100 crore, allowances Rs 29,300 crore and pension at Rs 33,700 crore.

The Sixth Pay Commission’s recommendations were implemented in August 2008, with a retrospective effective date of January 1, 2006, which gave almost Rs 18,000 crore in the form of arrears to the central government employees.

The Seventh Pay Commission recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous Sixth Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

The Seventh pay commission recommended fixing the highest basic salary at Rs 250,000 and the lowest at Rs 18,000and its increased the pay gap between the minimum and maximum from existing 1:12 to 1: 13.8.\

TST

India Post Payments Bank receives 40 partnership proposals for new venture

India Post Payment Bank Partnership Latest Update

The Payments Bank from India Post, expected to start operations by March 2017, has received proposals from 40 domestic and global companies for a partnership in the new venture.

"The process of setting up the Payments Bank is in progress," said Ravi Shankar Prasad, minister for communications and IT at an event here.

"We have so far received proposals from 40 global and local companies who want to sell insurance products, financial products, government-to-public services and private-to-public services with the Payments bank which is backed by the strong network of India Post," he added.
Earlier, the Department of Posts had stated that around 25 companies such as Deutsche Bank, State Bank of India, ICICI bank have shown their desire to partner India Post Payments Bank.
Global companies such as Barclays have also shown interest in joining the network of the payments bank.

In August this year, the Reserve Bank of India (RBI) approved payments bank plans of 11 firms, including Paytm, Reliance Industries, Bharti Airtel, postal department and Vodafone.

According to RBI guidelines, the first branch of the Payments Bank has to be set up within 18 months. The bank will be able to bring out products such as demand deposits and remittances.

They will not be allowed to undertake lending activities and initially be restricted to hold a maximum balance of Rs 1 lakh per customer.

However, they will be allowed to issue ATM and debit cards as other prepaid payment instruments, but not credit cards.

The new unit of India Post will use the existing infrastructure of the postal department and will pay user charges to the department.
Under the Payments Bank, the initial plan is to have 650 main branches where the department has head or bigger post offices. Subsequently, 25,000 "spoke" branches will be set up while the other 130,000 post offices will act as business correspondents.
The minister today inspected the e-commerce parcel delivery centre in Mumbai, which is handled by India Post and is dedicated it to the nation.

The e-commerce parcel delivery arm of the postal department has made a business of around Rs 1,000 crore from the cash-on-delivery model, out of the more than Rs 95,000 crore cash-on-delivery business done annually, he added.

Central Government unlikely to announce Dearness Allowance in January

New Delhi: All those central government employees unhappy with the recommendations of the 7th Central Pay Commission on salary hike, may be waiting for the Labour Ministry to announce the All India Consumer Price Index or AICPIN (for Industrial workers) for the month of December in January.

On the basis of AICPIN, government announces the Dearness Allowance( DA) for Central Government employees. The DA is paid to Central Government employees to adjust the cost of living and to protect their Basic Pay on account of inflation.

After all its a matter of one's monthly salary hikes! It is not unfair to hope that AICPIN for December is high, resulting in the DA higher than 125%, which the 7th CPC pegged for calculating the minimum pay determination and the fitment factor for the new pay structure. 
The government reviews the DA every six months. The Cabinet, in September, had approved a proposal to hike dearness allowance by 6 percent to 119 percent of the basic pay, effective from July 1, 2015.
if the DA announced in January is higher than 125%, government will be compelled to revise the new salaries.

Since the 7th PC has already merged the DA with the new pay, government is unlikely to announce DA in January 2016 at all. 

When the 6th Pay Commission’s recommendations were implemented from January 2006 onwards, the DA for the months of January 2006 to June 2006 was not paid. DA was issued only from the month of June 2006.