Thursday, May 05, 2016

7th Pay Commission report observes that except for operational and Industrial Employees, OTA is to be abolished

The 7th Pay Commission has recommended that overtime allowance, except for operational staff and industrial employees governed by statutory provisions, should be abolished, after data showed that the expenditure under the head for the Railways and Defence ministries more than doubled in seven years ending 2012-13. 

A committee of secretaries headed by Cabinet Secretary P. K. Sinha is reviewing the Commission’s recommendations. Overall, the overtime paid by the Government increased from Rs.797 crore to Rs.1,629 crore in the period, prompting the Commission to observe that government offices need to increase productivity and efficiency; and recommend “stricter” control on the Centre’s expenditure under the head. 
Overtime Allowance paid to Employees in 2012-13 

791.65 crores

Civilian Defence

732.73 crores
Total Overtime Paid
1629 crores

It could be seen that out of total overtime allowance of Rs. 1629 Crores paid by the Central government during the year 2012-13, Employees attached to Railways and Defence (civilian employees) Ministries alone have been Rs. 1525 crores, which is more than 90% of total OTA paid by Govt. 

“Government employees, like every one else, should be paid for results, not to spend time in the office…but overtime is mandated by law in organisations like railways and in such cases payments must be realistic and not frozen in time and hence the recommendation to increase them by 50 per cent,” economist and Seventh Pay Commission Member Rathin Roy told The Hindu . 

While the Ministry of Defence has achieved some success in controlling payment of the allowance, the efforts of the Railways Ministry have not borne fruit as yet. As a percentage of pay, overtime allowance is declining in the Ministry of Defence but is on the rise in the Ministry of Railways. The allowance decreased to 6.54 per cent of pay in 2012-13 from nearly 8 per cent in 2006-07 in the Ministry of Defence. It increased to 2.58 per cent in the Ministry of Railways in 2012-13 from 2.09 per cent in 2006-07. 

Overtime paid to employees in the Railways is rising faster than even their pay. The compounded annual growth rate of 17.2 per cent for overtime in the ministry exceeds that of pay which is 13.2 per cent. If the government decides to continue with the allowance for those categories of staff for which it is not a statutory requirement, then it should be increased by 50 per cent, the panel recommended. 

In the Ministry of Railways, overtime paid to employees is rising faster than even their pay 

Source: The Hindu

7th Pay Commission – Rajnath Singh Assures Recommendations will be Implemented before June 30

A 6 member delegation under the leadership of Mr. V.P. Mishra, president Indian Public Service Employment Federation (IPSEF) met the Home Minister Mr. Rajnath Singh in his official residence and demanded for early implementation of the 7th pay commission recommendations.

Mr. Mishra said, they have demanded for the old pension system to be implemented.

Mr. Mishra further added, the Home Minister Mr. Rajnath Singh assured that every effort will be taken to insure that the 7th Pay Commission be implemented before June 30th 2016.

The member delegation also met the President of the 7th Pay Commission and the Central Cabinet Secretary Mr. P.K. Sinha. The delegation demanded for increased in basic salary from Rs.18,000 to Rs.26,000. They also demanded for increase in ACP after 8,16,24 years in service to be equal to promotion wages.

Source: Navbharat Times

7th CPC – NFIR Ultimatum to Jaitely – If grievance not met – Trains will be off the track from 11 July

Railways minister Suresh Prabhu has requested Union finance minister Arun Jaitley for a financial assistance of about Rs 32,000 crore to absorb impact of 7th Pay Commission recommendations.

“I would therefore earnestly request you to help the ministry of Railways and hand-hold it for implementation of 7th CPC recommendations,” Prabhu said in a letter addressed recently to Jaitley. “This may be done either through compensation of loss for coaching services (Rs 31,727 crore in 2013-14) or directly by virtue of a revenue grant matching the amount of the 7th CPC’s liability placed upon the Railways for the next three to four years.”

Western railways employees union General Secretary Mr. Mahurkar said in a press conference in Nagad, if the recommendations of the railway minister Mr. Prabhu are not met or not accepted, the rails will come to a crashing halt on July 11.

He added that about 1.5 lakhs of RPF jobs are vacant.

He further reiterated, the security forces of railways work 24 hours, they should be paid accordingly, based on their commitment, which is not happening, he said.

Railway Minister Mr. Prabhu has conveyed the grievances of railway staff to the finance minister Mr. Jitley, however it looks like he is in no mood to listen the plight of the railway staffs. so the employees are forced to take further devastative action, he added.

In the 6th CPC the increase in the wages was 54% but the 7th pay commission has recommended only 14.3% increase. Its a crime against employees, he added.

Mahurkar also objected to the implementation of new pension scheme for the employees from April 1 2014.
He added, on 9th June we will issue a notice for strike, if our demands are not met, from 11th July the railway employees will go on indefinite strike.

Source: Dainik Bhaskar

India Post pushes the envelope

Nearly 2,000 delivery staff members are involved in the voter awareness campaign. 
Postmen and women seem to have given up khaki during election time. Of late, they have taken to colourful T-shirts and caps, to carry messages on the importance of voting.
India Post has launched several initiatives here to promote voter awareness, with nearly 2,000 delivery staff members involved in the campaign. Many of them went on rallies and are distributing pamphlets while delivering mail. 

Different experience

“It was a different experience for many of us to ask people to vote, along with delivering post. I continue to encourage people to vote as I believe even this minor effort may add to more voter participation,” said a postman at the Anna Nagar post office.

The department has distributed umbrellas to staff members in rural areas and places such as Puducherry with the messages “Your vote is your right” and “Do not sell votes”. 

“Most mails delivered now carry messages in Tamil encouraging people to vote and not to accept cash for votes. Nearly 50 lakh mails have been franked with such messages and delivered in localities such as Vellore and Tiruvannamalai,” an official said.

The State Election Commission, Puducherry, used our services to print three lakh Meghdoot postcards with messages, said Mervin Alexander, Postmaster-General, Chennai city region.

Clarification on LTC fares of children between 5-12 years-DOPT orders

Clarification issued by DOPT on reimbursement of fares of children between 5-12 years vide OM dated 29.04.2016.

Clarification on levying Service Tax on Speed Post

Good News! Central Govt employees to get higher pay scales than proposed earlier

The central government employees' wait to get higher pay package under the 7th pay commission is nearing its end. As per reports, the empowered committee of secretaries reviewing the 7th pay commission's recommendations will not delay submitting it report beyond June.

Cabinet Secretary PK Sinha, who is also heading the empowered committee of secretaries, is reported to have told a delegation of Indian Public Employees Federation that the secretaries panel would submit its report latest by June 30. It would that the panel would have given its report to the Centre in May, but the ongoing budget session has delayed the submission of the report.

According to another report, the minimum salary of the employees is likely to rise to Rs 21, 000 with maximum salary touching Rs 2,70,000 mark. The 7th Pay Commission headed by Justice A K Mathur had proposed the lowest salary at Rs 18,000 and the highest salary at Rs 250,000. Then the overall raise was recommended to be around 23.55% which included increase in salary, allowances and pensions.

Source: Zee News

I-T department’s new LTA, HRA reporting form may detect fake claims

Experts say changes announced on Tuesday in reporting format for individuals claiming tax deduction on LTA, LTC, house rent allowance and interest paid on home loans is aimed at plugging leakages on account of fake bills.

You may no longer be able to provide fake bills to claim income tax deductions for leave travel allowance (LTA) and house rent allowance (HRA). Changes announced on Tuesday in reporting format for individuals claiming tax deduction on leave travel allowance (LTA), leave travel concessions (LTC), house rent allowance and interest paid on home loans is aimed at plugging leakages on account of fake bills, experts say.

“The tax authorities are making efforts to plug leakages under tax provisions by tightening the procedure to claim tax exemptions.They are making it difficult to back claims with fake rent receipts and leave travel expenses. Initially one had to purely mention the sum claimed under exempt allowances. Now additional details have been asked for to curb the practices of claiming of fake receipts,” says Manish Shah, CEO and Co-founder,, a financial services advisory platform.

The I-T department’s has announced a new standard Form 12BB for salaried taxpayers to claim tax deduction on LTA, LTC, HRA and interest paid on home loans. With this, traxpayers will have to furnish to their employers proof of travel for claiming LTA and LTC benefits. In case of HRA, the Central Board of Direct Taxes has asked employees to furnish details including name, address and PAN number of the landlord if the aggregate rent paid exceeds Rs 1 lakh a year.

For claiming deduction of interest on home loan, the name, address and PAN of the lender will have to be furnished. Evidence of investment or expenditure will have to be provided for claiming tax deduction under Chapter VI-A which relates to allowable deductions under various sections including Section 80C, Section 80CCC and Section 80CCD. Section 80C allows deductions upto Rs 1.5 lakhs on specified investments.
The rules will be applicable from June 1, 2016.
Shah said since the new forms would make it easier for both taxpayer and employer. “Since it is a standard form it will help employees and employers as well. It will have all the details pertaining to the relevant tax deductions made by an employee,” he said.

He pointed out that earlier, Form 16 contained the HRA exemption as claimed by the employee. HRA exemption would be calculated by the employer and shown in Form 16 provided rent receipt were submitted on time. For claiming tax exemptions for LTA, one must preserve the documentary proofs (journey tickets) required to make a claim for LTA. The employer has the right to demand such proofs from the employee. Deductions for interest paid on home loan was claimed under section 24(b).

Revised Rate for Road Mileage per Kilometer

Click below to download Order Copy in PDF Format

Problem in NSC account opening in DOP Finacle

NSC Account Opening issues in DOP Finacle and Solution 

Most of the SOL's today are facing the error while issuing the NSC certificates through agent.
The error message shown in the Finacle application is as mentioned " Error_1- The agent your input has not linked to the current scheme code, Please setup it proper"
The error screen shot is mentioned below 

From the above screen shot it is clear the scheme code for NSC certificates changed i.e., the new scheme codes are NSN81 / NSN82 / NSN83 / NSN84 / NSN85.


  • The main root cause of the problem is that scheme codes for NSC certificates was NSC81/NSC82/NSC83/NSC84/NSC85 but now the scheme codes are changed.
  • The new scheme codes are NSN81 / NSN82 / NSN83 / NSN84 / NSN85. These new scheme codes are not linked to the agents hence the system is throwing the error.


  • Please add the scheme codes NSN81 / NSN82 / NSN83 / NSN84 / NSN85 to the agent with subvention placeholder as 45089000 through HDSAMM.
  • Only for agents, the above change is to be done. For regular issue, there is no need to do any changes.

Finacle Training Lesson 10 [SB Withdrawal, RD Deposit ]


In the previous lesson we have learnt about using CNAC menu to find out new account number from old account number. We have also learnt how to make SB deposit and SSA deposit. If you did not read our previous lesson and please read it and come back.
In today’s lesson we will learn about the remaining deposits and withdrawals.

SB Withdrawals

The menu for SB withdrawal is also CTM only. So, invoke the CTM menu. After you invoke CTM menu you will see the following screen.

As we have done in SB deposit transaction we will choose Function as ADD. Because this is a withdrawal transaction we will choose Function Type as Withdrawal. Then Click on GO (or press F4).

The below screen will come after you press F4

In this screen also you just concentrate on Account Id and amount. If the withdrawal is by cheque then you have to choose Mode of transaction as Cheque as shown in the image above. Choose mode of transaction as cheque, enter cheque number and date. This is the only extra step in withdrawal.

After entering account id, amount and cheque details (if withdrawal by cheque), just click on post (or press F10). That’s all, your transaction is completed. Note down the transaction Id on the voucher.

See how easy these transactions are.

Don’t forget to verify the transactions. I’ll explain verification of one transaction. You can follow the same procedure for all other transactions.

Verification of transactions.

To verify SB deposit, SB withdrawal and SSA deposit we use only one menu. The menu for verification of SB deposit, SB withdrawal and SSA deposit is CTM.

You should remember that for most of the transactions, we use the same menu for both doing the transaction and verification of transaction. Except for some account opening and closing transactions where we use different menus for doing the transaction and verification of transaction.

So for now invoke the menu CTM again. See the image below.

As we have invoked CTM to verify the transactions, choose Function as VERIFY. How will Finacle know which transaction you are verifying? Finacle generates a transaction id for every transaction. It identifies and differentiates between transactions using transaction id only. So enter transaction id of the transaction which you want to verify in the Transaction ID field. That’s it. Click on GO (or press F4).

Finacle will show the following screen to you.

As a supervisor your role is to check whether counter pa has entered the correct account number, amount. See the account number, name of the customer and amount matches with those on the voucher. If everything is found correct then click on submit. That’s it verification is over.

See how simple it is to verify the transactions.

You may ask me what if counter pa has entered something wrong in the transaction. Is there a way to modify or rectify the transaction?

The answer is NO. You cannot modify a transaction once it is done. If the transaction is in entered state we can delete transaction but we cannot modify any transaction once we have done it. So it is absolutely important that counter pa is extremely careful and vigilant.

But we are all humans. It is common to make mistakes. But try to avoid mistakes. Don’t worry there is solution for every mistake we make in finacle.

We will not discuss about mistakes and solutions in this training. This is to ensure that you will be careful while doing counter. If you make mistakes you can refer to Pineapple for solutions.

So this is how we verify transactions.

RD Deposit by Cash

For RD deposit we have to invoke CRDP menu. After invoking CRDP menu you will get the following screen. See the image below.

As we have done while doing SB deposit transaction, in RD deposit also we have to choose Function as ADD. The only other field which we have to select is transaction type.

What is Transaction Type? By choosing the appropriate option in transaction type we tell finacle whether we are depositing rd amount by cash or by POSB cheque or by Bank cheque.

Let’s see each option in detail.
  1. C/NR – Cash Deposit: it means that we are making the rd deposit by cash. If customer is paying for making the deposit we choose transaction type as C/NR – Cash Deposit. (Here C/NR means Cash/Normal Receipt.)
  2. T/BI – Transfer Bank Induced: This option is chosen when post office is doing transaction in customer account without customer’s involvement. Here bank doesn’t mean any other bank. Bank means us. Bank means Post office. This option is used when we are depositing any missing credits in the accounts.
  3. T/CI – Transfer Customer Induced: This option is used when customer gives POSB/Other Bank cheques for making deposit in the RD account.
Since we are doing RD deposit by cash let’s choose Function as ADD and Transaction type as C/NR – Cash Deposit and click on GO (or press F4). After pressing F4 you will get the screen as shown in the image below.

In this screen just enter account number in RD Account Id field and amount in Total Amount field and click on Submit (or press F10). Your transaction will be completed. Finacle will generate a transaction ID. Note it down on the deposit voucher.

Most of the terms which we see on the screen are self explanatory. If customer is paying for 3 months and monthly installment is 1000 then enter total amount as 3000. Finacle will automatically adjust it for 3 installments.

Always collect the amount which is shown in Transaction amount field which is just below number of installments field.

If there is any default fee this default amount is added to Total amount and if there is any rebate, the rebate amount is deducted from total amount. After adding default or deducting rebate amount, the actual amount to be collected from the customer is shown in Transaction amount.

Always have an eye on Transaction amount field while doing RD deposit transactions. Because default and rebate entries are very light on the screen. They are not visible properly. Because of this we may sometimes forget to take default amount from the customers.

So, this is how we do RD deposit by cash transaction in finacle.

In the next lesson we will see how to accept RD deposits by POSB cheques and by other bank cheques.

Point to be remembered:

Please pay close attentions to the changes that are taking place on the screen while doing transactions. There is a lot happening on the screen without our knowledge. To become experts we have to keep an eye on everything.
If you are not working on counter, read this material and spend 5 to 10 minutes at the counter and observe how counter people are working. By observation you will not forget what you are reading now. If you are suddenly asked to work in counter, you will not feel the pressure.

Read more

Source :


Adding NSC New (NSN) Product to SAS Agent in Finacle

At the time of issuing NSC certificates, we are facing an error, "The agent you Input has not linked with current scheme code. Please setup it proper"

To solve this problem, we have to modify the existing agent and add NSN product to agent.

Step by Step Procedure in Detail:

1. Invoke HDSAMM menu
2. Function - Modify
3. Enter DSA ID - Nothing but Agent id
4. Click on GO(F4)
5. A screen will be appeared as follows
6. Click on Product Tab
7. Click on Add Button
8. Click on Searcher beside Scheme Code
9. Select NSN81
10. After selection, a screen will be appeared as follows

11. Select Pay Commission - Yes
12. Subvention Reversal Credit Placeholder - 45089000
13. Next Commission Date - 31-12-2099
14. Payment Freq - D - Daily / Week / Day / Date / N - Next Day
15. Again Click on Add
16. Select NSN82
17. Repeat the same process
18. After Adding all scheme codes (NSN81/NSN82/NSN83/NSN84/NSN85), Click on SUBMIT(F10) 
19. Verify the same using same menu in supervisor login.

Revised list of identified posts for Postmaster Cadre in TN Circle

Revised list of identified posts for Postmaster Cadre - TN Circle

Expanding CGHS Network

Press Information Bureau 
Government of India
Ministry of Health and Family Welfare
03-May-2016 15:43 IST
Expanding CGHS Network
The criteria fixed for setting up a Central Government Health Scheme (CGHS) dispensary in a particular area is as under:-

(i) In an existing CGHS city:- For opening of a new Allopathic CGHS dispensary in an existing CGHS city, there has to be a minimum of 2000 Card holders (serving employees of Central Government and Central Civil pensioners).

(ii) Extension of CGHS to a new City:- For extension of CGHS to a new city, there has to be a minimum of 6,000 Card holders.

As the resources under CGHS are fully committed, it is not possible at present to extend CGHS network to areas that are presently not covered even with the existing criteria.

The Health Minister, Shri J P Nadda stated this in a written reply in the Rajya Sabha here today.