Tuesday, October 04, 2016

REGULAR PROMOTION ORDERED FROM LSG TO HSG II IN TAMILNADU CIRCLE

REGULAR PROMOTION ORDERED FROM LSG TO HSG II IN TAMILNADU CIRCLE

REGULAR PROMOTION ORDERED FROM POSTMASTER GRADE I TO POSTMASTER GRADE II IN T. N. CIRCLE

REGULAR PROMOTION ORDERED FROM POSTMASTER GRADE I TO POSTMASTER GRADE II IN T. N. CIRCLE

7th Pay Commission: Uri attack, surgical strikes may delay decision on allowances, says report

A hike in allowances would go against public sentiments prevailing in the country in view of the changed scenario in India after the attack on an Indian army unit in Uri, Kashmir and the consequent surgical strikes by the Indian Army on terror launch pads along the LoC, says a finance ministry official. An Indian army soldier keeps guard from a bunker near the border with Pakistan in Abdullian, southwest of Jammu, September 30, 2016.Reuters The Narendra Modi government may postpone the decision to raise allowances for Central government employees, including defence staff as recommended by the 7th Central Pay Commission (CPC). It might be done to "respect public sentiments" in the wake of the Indian Army's surgical strikes on terror launch pads across the Line of Control (LoC) in Pakistan-occupied Kashmir and fears of terror attacks in the country.

The deteriorating Indo-Pak relations that received a fresh jolt after the terror attack on an Indian Army unit in Uri on September 18 that killed 19 soldiers, has kept the government pre-occupied with defence-related matters and therefore could lead to a delay in taking a decision on allowances as recommended by the 7th CPC.

An online platform called The Sen Times claimed that a senior finance ministry official said the delay could be up to 30 days.

"Fearing any eventual terrorism incident in the country and in view of the current scenario and respecting public sentiments, the government has decided to delay the announce of higher allowances by a month," The Sen Times quoted the official as saying.

While accepting the hike for the salary component, the Central government had decided to refer the proposals on allowances to a committee head by finance secretary in June with a four-month deadline.

"The Committee will complete its work in a time bound manner and submit its reports within a period of four months. Till a final decision, all existing allowances will continue to be paid at the existing rates," an official statement issued by the finance ministry had said on June 29.

The 7th CPC had recommended scrapping 51 allowances and subsuming another 37 after examining the existing 196 allowances.

The recommendations of the 7th CPC are applicable to 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh retirees are from the defence forces.

Source : http://www.ibtimes.co.in

Precautions to be followed while refunding the SCSS TDS amount in DOP Finacle

  • Generally in SCSS interest will be paid to the customer on quarterly basis in DOP.
In DOP we generally HTM menu in order to withdraw the amount from the SCSS Sundry account(SOLID+0338).
  • To check how much amount of interest generated for SCSS account in DOP Finacle we use the menu HTDTRAN.
  • In the menu HTDTRAN enter the account number and click then the system will list of interests generated to that account and TDS amount if the tax form is not submitted by the customer.
  • For example find the below screen shot for illustration
  • Sometimes system will not TDS amount in HTDTRAN hence users can also check in TDS report which is available in the menu HFINRPT with report name Post Office TDS of SCSS/NSS87 Detail Report.
  • After noting the TDS amount by using the above procedure we should follow below precautions while refunding the TDS amount in DOP Finacle.

Precautions to be followed while refunding the SCSS TDS amount in DOP Finacle:-

  • When any customer present request for refund of tax first check whether the TDS amount deducted from that SCSS account or not using the above mentioned procedure.
  • If the TDS amount was deducted by the system and the customer already given the tax form (either 15H/15G) then we should first report to accounts section of concerned HO and wait for the result from HO. There will be 2 cases as mentioned below

Case 1:- 

  • If the concerned HO credited the tax amount to
traces website (income tax website)
then we should not refund the TDS amount we should given form 16 and refund should be claimed from income tax department only.
Case 2 :- 
  • If the concerned HO not credited the tax amount to
traces website
 then take the permission from HO and concerned DO and proceed for refund of tax amount
  • If the TDS amount deducted and the customer has not submitted the tax form then in such cases we should not refund the TDS amount.
  • In DOP Finacle for refund of TDS amount we generally use the menu HRFTDS for operating procedure users can
Click below link to know refe 

Refund of SCSS TDS amount in DOP Finacle

Refund of SCSS TDS amount in DOP Finacle

  • As per the DOP norms if the total interest amount on the SCSS principle exceeds Rs 10000/- then an amount of 10% TDS will be deducted.
  • If the TDS amount is deducted for a particular SCSS account then the same can be inquired using the menu HTDTRAN.
  • The total interest amount and TDS amount will be shown as in below figure by invoking the HTDTRAN menu as follows
  • If the customer submitted tax form(15G/15H) then we have to enter the same in account level and CIF level as mentioned below.

At CIF level

  • Invoke the menu CMRC then select the function as "Modify" and enter the CIF id of the customer as shown
  • Then click on Go in the next screen select the field tax deducted at source and fill the same with "NOTAX" from the searcher if the customer presents the tax form.

Then click on submit and verify the same CIF Id in the supervisor menu.
At Account Level:-

Invoke the menu CSCAM then select the function as "modify" and enter the account number as shown below
Then click on Go system will open a new application in the next screen enter the following


Enter the column Tax form as "15G/15H"
Select the field Tax category as "N-No Tax" as shown



Then click on Submit and verify the same in the supervisor login


Note:-If any account modification is pending for TDA accounts(SCSS/TD and MIS account) then the system will not generate interest on the due date which can be inquired by using the menu HAFI or Scheduled reports available for System Admin,So immediately verify the account modification done for TDA accounts for smooth functioning.


Procedure for Refund of SCSS Tax in DOP Finacle:-

If the customer presented the tax form(15G/15H) even though tax is deducted we have to refund the amount by using the menu HRFTDS.
Make sure that tax deducted is not uploaded in the income tax traces before refunding the amount to the customer by using the below procedure.
HRFTDS means Refund TDS

Invoke the menu HRFTDS and enter the following fields
Enter the field Report To as "postmaster"
Enter the refund CIF if as __________
Enter the From a/c id __________(SCSS account number)
Enter the To a/c id _________(SCSS account number)
Select Include closed a/c as "yes"
Select Accrued TDS as "Yes"
Select the Tran. Type as "transfer" avoid selecting cash if we select the cash then it will be blocked and there will problem at the time of EOD so select the transaction type as transfer as shown


Then click on "GO" then the system will show the tax deducted in the next enter the Refund a/c id as "postmaster id(SOLid+0340) or Customer SB account" as shown






Then finally click on submit and note that there is no verification for refund of TDS done for SCSS account by the above procedure.

Request for process for declaration of Gujarati New year day 31-10-16 as closed Holiday.

Request for process for declaration of Gujarati New year day 31-10-16 as closed Holiday.

ALL INDIA POSTAL EMPLOYEES UNION GR.C
Gujarat Circle
***********
No. CO/Holiday/Guj.New Year/16
Dated: 03-10-16
To,
CPMG
Gujarat circle, Ahmedabad

Subject:
Request for process for declaration of Gujarati New year day 31-10-16 as closed Holiday.

Respected Sir,
Namaskar. Kindly refer to our communication on same subject last year. Again it is requested to take up with concerned committee and suggest for Holiday on Gujarati New Year day on 31-10-16. There is strong representation from staff members on the subject. On new year day we are used to visit each others homes and convey new year wishes. So many people comes to our homes too. All other offices, markets, banks, schools remain closed on new year day. Families of our employees feels sad because of this day as Working day.

It is requested to take up matter in Central Government Employees Welfare Coordination Committee in the State Capital and make efforts for declaration of new year day as closed holiday.

Urging response,

Yours Sincerely

Rashmin Purohit
Circle Secretary
AIPE Union Gr.C Gujarat

Grant of Non-Productivity Linked Bonus (Ad-hoc Bonus) to the Central Government Employees for the year 2015-16

Meeting with the Chairman GDS Committee

The Chairman, GDS committee convened a meeting by inviting Federations for discussing issues of GDS in the wake of post approval of the recommendations of VII CPC. A Memorandum is submitted to the GDS Committee demanding regularization of GDS as departmental employees and given enough justification for regularization. 

Demanded multiplication factor of 3.25 for GDS while calculating new pay. The Chairman asked for justification for 3.25 factor from the staff side. Our Fedration replied the following.

1. Central trade Union demands Rs. 18000/- as minimum pay for unskilled labour working in the country. Therefore accepting Rs. 18000/- as minimum pay which was granted by VII CPC is not acceptable.

2. National JCA comprising all Central Govt. Employees Associations / Unions is not accepting minimum pay of Rs. 18000/- fixed by VII CPC to the Central Govt. employees. NJCA is opposing minimum pay of Rs. 18000/- and demanding Rs. 26000/- as minimum pay with enough justification. Therefore our Federation does not accept Rs. 18000/- as minimum pay and 2.57 factor recommended by VII CPC to the GDS.
3)The present day functioning of post office is totally different when compared to earlier. Rural ICT is the slogan of the Govt. now. But for the co-operation of the GDS, the rural ICT is impossible in India Post. Therefore taking into consideration of the changing scenario, such as e-commerce, e-governance, payment bank, the role of GDS is very important. In the world CEO meeting, our Secretary, Dept. of Posts said that future business is lying only with e-commerce. If the Dept. wants success in the e-commerce as in the case of Royal mail, role of GDS is indispensable.

4. The payment Bank will commence functioning from the year 2017. The role of GDS in this regard is inevitable towards success of the payment Bank. Considering the above facts, the GDS pay should be fixed based on the factor 3.25 instead of 2.57 as recommended by the VII CPC. 

Commemorative UN postage stamp of Indian music legend M.S. Subbulakshmi

UN Postal Administration unveils the commemorative stamp of M.S. Subbulakshmi, Indian music legend on the 50th anniversary of her performance at the UN in 1966, during an event on the International Day of Non-Violence at the UN Headquarters on 2 October 2016. The first copy is presented to musician Sudha Raghunathan (left). 

Progress map of speed post

Preparation of Seniority list of Stenographer Grade I as on 01.01.2011


Click below link to Download Order Copy from India Post Website

India Post Payments Bank Limited (IPPB) - JMGS-1 Recruitment for 650 Officer Posts 2016

India Post Payments Bank Limited (IPPB) has published Advertisement for below mentioned Posts 2016. Other details like age limit, educational qualification, selection process, application fee and how to apply are given below.
Posts : Assistant Manager (Territory) Grade - JMGS (Scale - I)
Total No. of Posts : 650 Posts
Educational Qualification : Graduate from University/ Institution/ Board recognized by the Government of India (or) approved by a Government Regulatory Body.
Note: Candidates who fulfil the minimum education qualification and with postal services or sales of financial products/ rural banking/ with experience as Business Correspondent for banks are also eligible.
Age Limit : Between 20 to 30 years
Note: The candidate should be born not before 02.09.1986 and not later than 01.09.1996 (both dates inclusive).
Pay Scale : 23,700 - 42,020
Approximate Total Monthly CTC# : Rs. 65,000/-
(#) – Approximate monthly CTC calculated at the start of the scale inclusive of Dearness Allowance, City Compensatory Allowance & other allowances at “A” Category cities
Application Fees :
Category of Applicant Application Fee
SC/ST/PWD (Only Intimation charges) INR 150.00 (Rupees One Hundred and Fifty
Only)
For all others INR 700.00 (Rupees Seven Hundred Only)
Selection Process : Selection will consist of the following steps: (i) Preliminary Examination (ii) Main Examination (iii) Interview. The final selection shall be made on the basis of interview. Merely satisfying the eligibility norms do not entitle a candidate to be called for Examination / Group Discussion / Interview. Results of the candidates who have qualified for various stages of the recruitment process and the list of candidates finally selected will be made available on the IPPB's website.The Final select list will be published on the IPPB’s website.

How to Apply : Interested Candidates may Apply Online Through official Website.

Advertisement : Click Here

Apply Online : Click Here

Important Dates :
Starting Date of Online Application : 04-10-2016
Last Date to Apply Online : 25-10-2016
Closure for editing application details : 25-10-2016
Last date for printing your application: 09-11-2016
Online Fee Payment : 04-10-2016 to 25-10-2016
Tentative Exam : Dec 2016 / Jan 2017

LATEST ON THE ISSUE OF ENHANCED BONUS TO GDS

LATEST ON THE ISSUE OF ENHANCED BONUS TO GDS

It is informed that the file related to grant of Bonus to GDS @ Rs.7000- has been sent to Ministry of Finance from Department of Posts. 

P.Pandurangarao
General Secretary

India Post Payments Bank Face Book Page


To Like Your India Post Payments Bank Face Book Page Click on the link 

https://www.facebook.com/ippbonline/

GPF interest rate reduced to 8% from Oct to Dec 2016 - Ministry of Finance

Seeking of Clarification regarding Option in 7th CPC – BPMS Part 2

Seeking of Clarification regarding Option in 7th CPC – BPMS

Part – 2

Further, your attention is invited to Rule 5 of CCS (RP) Rules, 2016 which reads as under:

5. Drawal of pay in the revised pay structure.– Save as otherwise provided in these rules, a Government servant shall draw pay in the Level in the revised pay structure applicable to the post to which he is appointed:

Provided that a Government servant may elect to continue to draw pay in the existing pay structure until the date on which he earns his next or any subsequent increment in the existing pay structure or until he vacates his post or ceases to draw pay in the existing pay structure:

Provided further that in cases where a Government servant has been placed in a higher grade pay or scale between 1st day of January, 2016 and the date of notification of these rules on account of promotion or upgradation, the Government servant may elect to switch over to the revised pay structure from the date of such promotion or upgradation, as the case may be.

Explanation 1.– The option to retain the existing pay structure under the provisos to this rule shall be admissible only in respect of one existing Pay Band and Grade Pay or scale.

Explanation 2.- The aforesaid option shall not be admissible to any person appointed to a post for the first time in Government service or by transfer from another post on or after the 1st day of January, 2016, and he shall be allowed pay only in the revised pay structure.

Explanation 3.– Where a Government servant exercises the option under the provisos to this rule to retain the existing pay structure of a post held by him in an officiating capacity on a regular basis for the purpose of regulation of pay in that pay structure under Fundamental Rule 22, or under any other rule or order applicable to that post, his substantive pay shall be substantive pay which he would have drawn had he retained the existing pay structure in respect of the permanent post on which he holds a lien or would have held a lien had his lien not been suspended or the pay of the officiating post which has acquired the character of substantive pay in accordance with any order for the time being in force, whichever is higher.

Contrary to above, vide letter No. AN/XIV/14142/Seventh CPC/Vol-I, Dated 08.09.2016 the CGDA issued clarification No. 3 on “Implementation of Seventh Central Pay Commission” which reads as under:

“As regards exercising option for Seventh CPC from 07/2016 i.e. on accrual of next increment in respect of cases who have been promoted / upgraded between 01.01.2016 and 30.06.2016 is concerned, Para 13 and Para 5 of CCS (RP) Rules, 2016 may be referred which clearly states that in respect of the above cases, a government servant may elect to switch over the revised pay structure from the date of such promotion or upgradation implying that the option to switch over to the revised pay structure from 07/2016 is not available. Provision of Para 15 of Min of Finance Gazette notification dated 25.07.2016 may also be referred.”

Point of Doubt No.2: If the pay of an employee “XYZ” was Rs.12200 in PB-1 plus 2800 GP as on 31.12.2015 and on completion of 10 yrs regular service, he was granted financial upgradation on 15.03.2016 in the Grade pay of 4200, kindly clarify:-

(i) Whether “XYZ” is compelled to opt 7th CPC w.e.f. 01.01.2016 and his pay will be fixed as illustration mentioned in the Rule 13 of CCS (RP) Rules, 2016;

(ii) Whether “XYZ” may opt 7th CPC w.e.f. 15.03.2016 (date of promotion) and his pay will be fixed under the provisions of FR 22 and thereafter his pay will be revised under CCS (RP) Rules, 2016;

(iii) Whether “XYZ” may opt 7th CPC w.e.f. 01.07.2016 (date of next increment) and his pay will be fixed under the provision of FR 22.(I)(a)(1) in the pre-revised scale on 15.03.2016 & 01.07.2016 and thereafter his pay will be revised under CCS (RP) Rules, 2016.

Point of Doubt No.3: If the pay of an employee “XYZ” was Rs.12200 in PB-1 plus 2800 GP as on 31.12.2015 and after completion of 10 yrs regular service, he would be eligible for grant of financial upgradation under MACP on15.03.2017 in the Grade pay of 4200, kindly clarify:-

(i) Whether “XYZ” may opt 7th CPC w.e.f. 15.03.2017 (date of financial upgradation) and till then (14.03.2017) he will draw his wages in the existing system of 6th CPC.

Considering the importance of the issues, you are requested to issue necessary clarification in consultation with the competent authorities so that Finance & Accounts department may also accept and comply with in correct perspective.

Thanking you. Sincerely yours

(MUKESH SINGH)
Secretary/BPMS &
Member, JCM-II Level Council (MOD)

Copy to: Sri R K Chaturvedi,
Joint Secretary, Govt of India,
Deptt of Expenditure, Implementation Cell,
Room No. 214, The Ashok,
New Delhi.
– With request to take appropriate action.

Source: BPMS

Seeking of Clarification regarding Option and Pay Fixation in 7th CPC : BPMS Part1


REF: BPMS/MOD/7th CPC/60(7/3/L)
Dated: 01.10.2016
To,
The Dy Secretary (CP),
Govt of India, Min of Defence,
'B' Wing, Sena Bhawan,
New Delhi - 110011

Subject: Seeking of Clarification regarding Option & Pay Fixation in 7th CPC.
Respected Sir,

Part -1

With due regards, your attention is invited to Para 4.(2) of the Gazette Notification on Resolution (No. 1-2/2016-IC, Dated 25.07.2016) issued by Ministry of Finance (Department of Expenditure) which reads as under:

4. (1) The Pay Matrix, in replacement of the Pay Bands and Grade Pays as in force immediately prior to the notification of this Resolution, shall be as specified in Annexure I in respect of civilian employees.

(2) With regard to fixation of pay of the employee in the new Pay Matrix as on 1st day of January, 2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on 31st day of December, 2015 shall be multiplied by a factor of 2.57. The figure so arrived at is to be located in the Level corresponding to employee’s Pay Band and Grade Pay or Pay Scale in the new Pay Matrix. If a Cell identical with the figure so arrived at is available in the appropriate Level, that Cell shall be the revised pay; otherwise the next higher cell in that Level shall be the revised pay of the employee.

(3) After fixation of pay in the appropriate Level as specified in sub-paragraph (2) above, the subsequent increments in the Level shall be at the immediate next Cell in the Level.

Whereas the Rule 7 of the CCS (RP) Rules, 2016 reads as under:

7. Fixation of pay in the revised pay structure:
(1) The pay of a Government servant who elects, or is deemed to have elected under rule 6 to be governed by the revised pay structure on and from the 1st day of January, 2016, shall, unless in any case the President by special order otherwise directs, be fixed separately in respect of his substantive pay in the permanent post on which he holds a lien or would have held a lien if such lien had not been suspended, and in respect of his pay in the officiating post held by him, in the following manner, namely:-

(A) in the case of all employees:

(i) the pay in the applicable Level in the Pay Matrix shall be the pay obtained by multiplying the existing basic pay by a factor of 2.57, rounded off to the nearest rupee and the figure so arrived at will be located in that Level in the Pay Matrix and if such an identical figure corresponds to any Cell in the applicable Level of the Pay Matrix, the same shall be the pay, and if no such Cell is available in the applicable Level, the pay shall be fixed at the immediate next higher Cell in that applicable Level of the Pay Matrix.

Further, Annexure of Implementation Cell, 7th CPC (O.M. No. 1-5/2016-IC, Dated 29.07.2016) clearly states that the Basic Pay (Pay in the applicable Pay Band plus applicable Grade Pay or basic pay in the applicable scale) in the pre-revised structure as on 01.01.2016 will be multiplied by 2.57.

Point of Doubt No.1: Some of the Local Account offices are saying that as per Para 4.(2) of Resolution, the Basic Pay ( pre-revised Pay in Pay Band plus Grade Pay as on 31.12.2015, not as on 01.01.2016) will be multiplied by 2.57.

Kindly clarify which basic pay will be multiplied by 2.57:

(a) pre-revised Pay in Pay Band plus Grade Pay as on 31.12.2015
Or
(b) pre-revised Pay in Pay Band plus Grade Pay as on 01.01.2016

Effect in both conditions may be illustrated below: The pay of an employee “XYZ‟ was Rs. 12200 in PB-1 plus 2800 GP as on 31.12.2015 and on completion of 10 yrs regular service, he was granted financial upgradation on 01.01.2016 in the Grade pay of 4200. Thus his pre-revised basic pay was become Rs. 12650 in PB-2 plus Rs. 4200 GP as on 01.01.2016.

In such condition, LAO is fixing his pay as under :

(a) Pre - Revised Basic Pay as on 31.12.2015 : 12200 + 2800 = 15000
(b) Amount (a) is multiplied by 2.57 : 15000 x 2.57 = 38550
(c) Revised Pay in Pay Matrix in Level 5 : 39200
(d) Pay after giving one increment in : 40400 Level 5 on 01.01.2016
(e)Pay in upgraded level 6 (GP 4200) : 41100 as on 01.01.2016
As per federation's interpretation, the fixation will be as under :

(a) Pre-Revised Basic Pay as on 31.12.2015 : 12200 + 2800 = 15000
(b) Pre-Revised Basic Pay as on 01.01.2016 : 12650 + 4200 = 16850 due to fixation benefit under FR 22.(I)(a)(1)
(c) Amount (b) is multiplied by 2.57 : 16850 x 2.57 = 43304
(d) Pay in upgraded level 6 (GP 4200) : 43600 as on 01.01.2016

CBI INVESTIGATION ON POSTAL FRAUD CASE ED ATTACHED 1.5 CRORE

PRODDATUR (KADAPA DIST) : A.P CIRCLE -  POSTAL FRAUD CASE :: ED ATTACHED 1.5 CRORE

HYDERABAD: The Enforcement Directorate has attached assets worth Rs. 1.5 crore of four Andhra Pradesh postal department employees in connection with a money laundering probe against them. The Enforcement Directorate money laundering probe against the four employees pertains to an alleged savings fraud case in Kadapa district few years back.

In a statement issued today, the agency said it attached 10 immovable and four movable assets under provisions of the Prevention of Money Laundering Act (PMLA). It said while the total value of these assets is Rs. 61.16 lakh their "market value" is about Rs.1.50 crore. The agency took over the case based on a CBI FIR of 2014. "Investigation conducted by the agency revealed that Kakarala Kullayappa in collusion with Kondrapalle Maddulety, Kesava Siva Prasad and Akkem Venkataiah, all employees of postal department, had misappropriated Rs. 3.28 crore of funds in College Road Sub-Post Office, Proddatur in Kadapa district of Andhra Pradesh," the agency said. It said part of the money was utilised by Mr Kullayappa and part transferred to the other three for "conniving and concealing" the fraud.

The ED said the money was used for personal expenses, purchase of immovable properties in the name of "their family members and construction of houses among others". It said the accused committed "fraud in the monthly income scheme accounts and time deposit accounts". An attachment order under PMLA is aimed at depriving the accused from availing benefits of the ill-gotten wealth. Such an order can be appealed before the Adjudicating Authority of the said Act within 180 days. Further, if the Adjudicating Authority also confirms the order, the accused can appeal against it before the Appellate Tribunal of the said Act within 45 days.

Digital India is banking on India Post payments banks


By AP Singh,  Ministry of Finance

The Post Bank (India Post Payments Bank) the Prime Minister spoke so affectionately about from the ramparts of the Red Fort shouldn't end up being another public sector entity in an already crowded financial services sector.

Digital India requires not just vanilla bank accounts but widespread ability to make and receive electronic payments. The Post bank, designed as a service platform for the financial services sector rather than a narrow competing entity, can play an important role in fast tracking cashless India. We look here at the first scaled up application of the India stack.

Governments do better facilitating and servicing their corporate than competing with them. The Post Bank funded out of public exchequer, leveraging the network of the post office, reach of the postman and brand value of the Government of India needs to transmit resultant value to the entire industry rather appropriate it by itself.

From the customer point of view, this will translate into walking into a post office (more than 155,000), tapping the postman (more than 300,000) or logging on to a single application on a smart device to transact with a service provider of choice.

For retail financial service providers like banks, payment service providers, mutual funds, insurance companies, pension fund managers, forex service providers and money transfer companies, it will mean extended reach to customers and cost saving on high street presence.

For the Post Bank, a platform approach will have several advantages. For one, it will work from a known position of strength of a common service provider rather than a competing agency, something the public sector is not adept.Second, it will be able to garner numbers in a high volume, low margin business. Third, it will attract foot falls from across the board providing cross-selling opportunities. Click below to know more
Fourth, it will serve a larger public purpose as a publicly funded entity . Fifth, it will be able to leverage consequential market intelligence to design and retail its own products much like a multi brand store attracting eye balls for its own products while retailing those of competitors.

As far as financial inclusion is concerned, resultant economies of scale and business efficiencies will make opening and servicing small accounts viable. Global experience suggests the first ladder of financial inclusion is remittance service, second saving accounts and third access to credit. Analytics flowing from the platform can be leveraged for credit scoring of individuals families. The Post Bank, while not licensed to operate credit services, can support related third-party services.

Two developments make the Post Bank an attractive service platform. The requirement of the entity to be registered as a body corporate and regulated by the RBI will imbibe confidence in other players to use its services without being overawed by dealing with the Government of India. Second, the proliferation of interoperable technology in financial services will obviate the development of supporting technology platforms from scratch.

The micro ATM pioneered by the UIDAI and the UPI of NPCI make for immediate roll-out of interoperable banking solutions. Visa and Mastercard have equally smart ready-to-use solutions.

The suggestion is not to down play the Post Bank. On the contrary , it will be nothing short of the proverbial game changer as the first mover in the financial services aggregator space. In fact, entry barriers will be high for considerable time before a competitor steps in. Systemically, this could be a major shot at deepening the financial services market, promoting cashless economy and supporting Direct Benefit Transfers.

(The writer is Joint Secretary, Ministry of Finance)