7th Pay commission may drop the Pay Band-Grade Pay System

7th Pay commission may drop the Pay Band-Grade Pay System

The All India Audit & Accounts Association has met the 7th pay commission on 27-3-2015  to tender its Oral evidence. The Association observed that the 7th pay commission was of the view to discard the Pay Band – grade pay system. The feed back of the Meeting is posted in its Blog. The text of feedback report is given below

All India Audit & Accounts Association
CSV Warrier Bhawan
Ghaziabad

Reference : AIA /Circular-10/2015,

dated 28.03.2015

To
Unit Secretaries
Members & Spl Invitees NE & Members of Women’s Committee

Dear Comrades,

Tendering of Oral Evidence before 7 CPC

The 7th CPC had invited the All India Audit & Accounts Association for tendering oral evidence on 27th March 2015 at this office at Qutab Institutional Area, New Delhi. In addition to the Secretary General, Coms M.Duraipandian, V.Nageswara Rao, KL Gautam and Anilkumar appeared before the Commission for the oral evidence. The Commission was present in full strength

The following demands were placed before the Commission:

1. Upgradation of LDC of GP 2400

2. Correcting the distortions in the implementation of 6 CPC recommendations with respect to IA & AD and organised Accounts Viz.

i) grant of GP 4200 to Auditor / Accountant

ii) grant of GP 4600 to SA, granting parity with Assistants of CSS

iii) grant of GP 5400 to AAO on completion of 4 years

3. Grant Promotion to SA to GP 4800 and higher starting pay of PB 2, 5400 to AAO and space for further career advancements for these orders

There was detailed discussion on each of our demands. It was pointed out by us that CAG of India has also recommended each of above demand and also grant of GP 6600 and 7600 to AOs and SAOs. The Chairman appreciated it. The Commission assured to take a positive look on our demands which are also supported by CAG.

The demands were explained in its historical background and also on functional basis. The recommendations of the past pay commissions were also brought to the notice of the CPC. The award by the Central Board of Arbitration in favour of the employees in respect of parity between SA and Assistants in CSS was particularly pointed out. Chairman expressed his unhappiness on the non implementation of the award by the employees and workers.

On our demand for career progression for SA and AAO, the Commission stated that though it is sympathetic it is not sure what could be done, given the hierarchical structure available in IA and AD.

We also raised the issue of re-introduction of Touring Special Pay and pointed out to the Award that was won by the All India Audit & Accounts Association from the Board of Arbitration and its rejection by the Parliament in 2002.

We further requested for introduction of 4 advance increments on passing of Departmental confirmatory examination, explaining the system prevailed before 3rd CPC, recommendation of 3rd CPC following which it was discontinued and its re introduction in 1981 an amount equivalent to 3 increments. We pointed out that the conversion of this qualification pay into deemed allowance after 5 CPC and requested for its re-introduction.

During the discussion the Chairman observed that the commission is of the view to discard the PB-GP System.

ORAL EVIDENCE BY STAFF SIDE NC, JCM

On 23-24 March 2015, the Standing Conïnittee of Staff Side, NC, JCM, tendered the oral evidence before the 7 CPC. The delegation was led by Shri Raghavaiah, Leader, Staff Side and Corn Shiva Gopal Mishra, Secretary, Staff Side.

Com KKN Kutty presented the memorandum on behalf of the NC, JCM. The gist of discussion is given in the enclosed Circular issued by Corn Shiva Gopal Mishra, Secretary, Staff Side.

The Pay Commission stated that the principle that vuld guide to determine the minimum wage shall be Dr Aykroid formula on it (ie 15 ILC norms). It has further stated its intention to do away with pay band/grade pay system. On some other issues, the Pay Commission has sought the views of the Staff Side (which shall be conveyed to the Commission shortly).

With greetings,

Your Fraternally
sd/-
(M.S. Raja)
Secretary General

Source: All India Audit & Accounts Association

All central government employees are waiting for the announcement of DA.

All central government employees are waiting for the announcement of DA.

Dearness Allowance is not only important for Central Government employees but also for all the State Government employees.

As we all know, generally, Dearness Allowance is given twice a year based on the inflation rates.
Mostly, this DA has been released at end of February or March. Occasionally, it has been released in the month of April.

Only after the DA for the Central Government employees is announced, most of the State Governments will make DA announcements. After the approval of the Cabinet, the Finance Minister will announce the DA order.

The pensioners have placed a plea to the government to release the DR Relief order also when it announces the Dearness Allowance in order to avoid possible delays in getting DR Relief.

In this scenario, it is natural for the employees to expect the announcement of DA every day. Let us hope that the announcement will come soon.

Past years announcement of Dearness Allowance date vised table below.

Dearness Allowance Effect Date	Percentage of Dearness Allowance	Announcement Date
01/07/2011	58%	15/09/2011
01/01/2012	65%	23/03/2012
01/07/2012	72%	24/09/2012
01/01/2013	80%	18/04/2013
01/07/2013	90%	20/09/2013
01/01/2014	100%	28/02/2014
01/07/2014	107%	04/09/2014
01/01/2015	May be 113% (6%)	?

Source: http://www.geod.in/

Promotion of LDCs to the post of UDC through Limited Departmental Examination for the year 2012-13 & 2013-14) – Revised Panel

Promotion of LDCs to the post of UDC through Limited Departmental Examination for the year 2012-13 & 2013-14) – Revised Panel.

Kendriya Vidyalaya Sangathan

18, Institution Area,
Shaheed Jeet Singh Marg
New Delhi -110016
Tele.:011-26858570/26514179(Fax)
Website: www.kvsangathan.nic.in

Speed Post

F.NO. 11056/LDE/UDC/2014-KVS(HQ)(E-111)

Date : 20.03.2015

MEMORANDUM

SUBJECT: Promotion of LDCs to the post of UDC through Limited Departmental Examination for the year 2012-13 & 2013-14) – Revised Panel.

The Competent Authority has approved promotion of the following Lower Division Clerks to the post of Upper Division Clerk consequent upon their selection through Limited Departmental Examination for the year 2012-13 & 2013-14, in the pay band of Rs.5200-20200 with Grade Pay of Rs. 2400/- and posted to Kendriya Vidyalayas/ROs/HQ as shown in column 6 against their names.

They must communicate their unconditional acceptance positively by 23.03.2015 and get relieved by 30.03.2015 for joining the place of posting as UDC after availing joining time as per rules. If they fail to get relieved by 30.03.2015 this offer of promotion will automatically be treated as withdrawn and no further communication will be entertained in this regard. The candidate who is figuring in the select panel for both the years i.e. 2012-13 and 2013-14 with posting to one place, wilt have the option to accept his /her offer for any one year of his/her choice by 23.03.2015. If the candidate accepts the offer but does not mention the year of panel, it will be assumed that he /she has accepted the offer for the year 2012-13.

Source: http://kvsangathan.nic.in/GeneralDocuments/ann-20-03-15.pdf

What central government employees can expect from the 7th Pay Commission

What central government employees can expect from the 7th Pay Commission

Sounds odd, but the highest paid Indian bureaucrat till 1959 was the railway board chairman and not the cabinet secretary. The top rail bureaucrat, who was earlier called chief commissioner of railways, drew a basic salary of Rs 3,250 per month, a smart 8.3% more than that of the cabinet secretary, the senior-most bureaucrat in India. But as the fortunes of Indian Railways dwindled over the years — its market share in freight movement has shrunk from 90% in 1950 to 30% now — the clout of the rail bosses and their corresponding rank and pay have also slipped.

Today, the railway board chairman and eight other top rail babus receive a salary equivalent to a government of India secretary, a scale which as many as 230 Indian Administrative Service (IAS) and 40 Indian Police Service (IPS) officers also draw. For good measure, the cabinet secretary now not only draws a higher salary than the railway board chairman, his superior rank comes with better perks including a bungalow at Prithviraj Road located in the heart of Lutyens' Delhi.

Meanwhile, the Indian Revenue Service (IRS), a 5,541 officers-strong cadre responsible for collecting direct taxes in India, now claims that IRS should get better pay and perks than IAS. The entry-level salary for all Group A Central services is the same now, but thanks to two more increments and faster promotions, IAS maintains an edge over others. The basis for this claim? "Today, IRS — not IAS — is the revenue collector for the government. So, it's logical that that the edge given to IAS  should be given to us," says Jayant Misra, Income-Tax commissioner and general secretary of IRS Association. In a 58-page-long memorandum to the 7th Central Pay Commission (CPC), which is now examining a pay hike for Central government employees, the IRS Association argued that the primary reason for higher pay to the Indian Civil Service (ICS) of the British era and its successor service, IAS, was that they were revenue collectors. But now, the dynamics have changed, they claim.



IRS has argued that the net direct tax collection has grown 9.35 times between 2000-01 and 2013-14, an impressive piece of statistics in the backdrop of only 5.4 times expansion of GDP during the corresponding period. Also, the cost of revenue collection in India is one of the lowest in the world, which according to IRS officers is yet another reason for demanding a good deal from the CPC. For every Rs 100 they collect, the tax department spends merely 57 paisa. In percentage terms, the cost of  revenue collection in India is one of the lowest in the world, which according to IRS officers is yet another reason for demanding a good deal from the CPC. For every Rs 100 they collect, the tax department spends merely 57 paisa. In percentage terms, the cost of revenue collection in India is 0.57% as against 1.58% in Japan, 1.35% in France, 1.17% in Canada and 1.05% in Australia.

Welcome to the behind-the-scenes manoeuvring before the Big Sarkari Pay Hike. With a new pay scale for 36 lakh Central government employees, and also pensioners, likely to come into effect from January 1, 2016, the officers and non-gazetted staff of various services have been lobbying hard to get a good deal from the 7th CPC. Unlike in the private sector, the pay hike in government is a once-in-10-years-affair, making every CPC, right from the first that submitted its report in 1947, a hugely powerful agency. No doubt, government employees have to undergo an annual appraisal process called Annual Performance Appraisal Report (APAR), but that exercise is important only for promotion, and not for any pay hike. Government employees do get a regular hike in dearness allowance, a measure meant for offsetting inflationary pressure on their earnings, but at the end of the day it is the CPC that fixes the bureaucrats' pay for 10 long years.

That's precisely why officers and staff of every service can't afford to ignore the CPC. Constituted in February 2014 under the chairmanship of retired Supreme Court judge Ashok Kumar Mathur, the 7th CPC has an economist and two bureaucrats as its members. Most of the employees' associations have already had at least one round of talks with the Commission. And some are waiting for Round II.



The Ripple Effects

A cursory glance at the memorandum submitted by IPS Central Association on behalf of Indian Police Service (IPS) will throw light on the importance attached to a pay commission. The 137-page memorandum, a copy of which was reviewed by ET Magazine, is well designed and comparable to any standard report prepared by a global consultancy firm. PV Rama Sastry, an Inspector General of Police at National Investigation Agency (NIA) and secretary of IPS Central Association says the memorandum  is the result of intense in-house research, factoring in the macro environment of growth, development, equity and justice vis-a-vis the role of a police officer. Though Sastry is the spokesperson of 4,720 IPS officers, the memorandum prepared by his team encompasses the role and needs of 30 lakh police personnel across India out of which 10 lakh come under the gamut of the pay commission. As the CPC recommendations are often accepted by the state governments as well, the remaining 20 lakh  police personnel too may eventually benefit.


The IPS memorandum has quoted a number of reports to suggest that the tough life of a cop justifies the demand for a fatter hike. For example, it has quoted articles published in two journals — Global Journal of Medicine and Public Health and International Journal of Pharma and Bio-Sciences — to conclude that one of two cops in India suffers from sleep disturbances and anxiety whereas chances of cardiovascular problems increase by 38% after a person joins as a police officer. Among other demands (see What it Expects), IPS wants better life and health insurance cover, an overtime allowance and also a new perk called allowance for "un-social" hours (for duty between 8 pm and 6 am).

Railway officers too cite round-the-clock work demands as a reason for better salary. "A railway officer may be called to join duty any time during the night. The pressure always remains as it's a 24x7 work," says RR Prasad, an Indian Railway Personnel Service officer and secretary general of Federation of Railways Officers' Association. The Indian Railways is a gigantic organisation with over 13 lakh employees, 16,000 of whom are officers. Both the officers and staff associations have made their representations to the 7th CPC. The officers want non-gazetted staff to get their dues but they demand the proportion of the pay of the lowest and the highestpaid employee should increase from current 1:12 to 1:18



To be sure, a formula towards pay parity has been the hallmark of the last few pay commissions. A government entry-level peon now gets a monthly pay of Rs 14,000, if dearness allowance is factored in. Similarly, a mid-level government driver's monthly salary, including allowances, is Rs 30,000, at least two times that of his counterpart in a private sector company. And that's why the salary gap between the lowest and highest paid government servant has drastically decreased over the last three decades.


The pay commissions have also reduced the disparity among the officers of various services. Till the late 1980s, an IAS officer used to receive a salary that's 25% higher than that of a Group A service officer. Today, the pay for all officers, at least at the entry level, is same. But IAS and Indian Foreign Service (IFS) officers still maintain an edge over others as their empanelment process (a step to get higher posts) is much faster.


Balancing Act

An IPS officer can become a joint secretary to government of India only two years after an IAS of the same batch can reach that level. Similarly, there has been a nine-yearlong gap in joint secretary empanelment between IAS and IRS, something many services claim is a continuation of the British legacy. Today, IAS officers at the level of deputy secretary and director at the Centre constitute about only 13% of the total officers. But as the hierarchy goes up, the percentage of IAS vis-a-vis others also rises. For example, 75% joint secretaries to government of India belong to IAS and IFS, and the percentage of IAS and IFS goes further up to 95 in case of government of India secretaries.

"The edge that the IAS has must continue. Why will a person join the IAS after quitting a job in HSBC Bank if that edge is missing? IAS officers have work experiences at Tehsil, sub-divisions, district, state and Central government levels. We interact with the political executives at all levels. IAS should remain a premium service," says Sanjay R Bhoosreddy, a joint-secretary-ranked officer and secretary to IAS (Central) Association.

On its part, the Indian Economic Service (IES) which has a cadre strength of 511 officers, represented in 55 Central government departments, has demanded parity in pay, perks and promotions of all services, including IAS, so that the "officers deliver what they have been employed for rather than fret over their pay and promotion prospects".

The question is how far the 7th CPC will go in changing the pay and associated service conditions like empanelment and promotions. IAS officers have pulled out a 1991 Supreme Court judgement (Mohan Kumar Singhania and Others vs Union of India and Others) where it was said that other services should not approach the pay commissions and attempt to change the rules of career progressions and push for a case for parity with the premier service. But other services are continuing their demand for pay parity and also for the creation of more departments where the IAS can't dictate. At present, only three major ministries — railways, external affairs and post — are not headed by IAS but run by their own cadres. Now, IPS wants a new department of internal security headed by a cop and IRS wants a separate direct tax department headed by a taxman.

Will the 7th CPC venture into such nuances? Or will it, like the past few pay commissions have, adopt a simple formula of Multiplier 3 under which the basic salary is hiked by three times or more depending on the economic health of the nation. If that is the case, it won't be too hazardous to make a prediction: A secretary to government of India will get a basic monthly salary (excluding DA) of Rs 2.4 lakh (current basic salary multiplied by three) and the cabinet secretary Rs 2.7 lakh from  January 1, 2016. And, yes, perks, DA and other allowances will be extra.

Source: http://economictimes.indiatimes.com/

Sukanya Samriddhi Account / Yojana - Highest fetching interest scheme across all schemes.

Sukanya Samriddhi Account / Yojana - Highest fetching interest scheme across all schemes.

Disclaimer :- The information is compiled by Akula.Praveen Kumar, Marketing Executive, Medak HO, AP Circle. Author of blog does not accepts any responsibility in relation to the accuracy, completeness, usefullness or otherwise of the contents.

Sukanya Samriddhi Account/Yojana is a Small Savings Special deposit Scheme for girl child. This scheme is specially designed for girl’s higher education or marriage needs.

Highest fetching interest scheme across all schemes.

The Scheme launched for the welfare of the girl child, to save and educate the girl child.

Features of Sukanya Samriddhi Account (SSA):

• Who can open the account? – Sukanya Samriddhi a/c (or Khata) can be opened on a girl child’s name by her natural (biological) parents or legal guardian.
• What is the Age limit? – SSA can be opened in the name of a girl child from the birth of the girl child till she attains the age of  10 years.  ( As per SB Order No. 2/2015 : The Girl child who is born on or after  02.12.2003 can open account )
• How many accounts can be opened? – A depositor may open and operate only one account in the name of same girl child under this scheme. The depositor (or) guardian can open only two SSA accounts. There is one exception to this rule. The natural or legal guardian can open two or three accounts if twin girls are born as second birth or triplets are born in the first birth itself.
• How to open a SSA account? Accounts in name of the girl child can be opened in post offices or in any branch of a commercial bank that is authorized by the Central Government to open an account under this scheme rules.
• What is the minimum deposit to open the account? – The account may be opened with an initial deposit of one thousand rupees. The minimum contribution in any financial year is Rs 1000. Thereafter the contributions can in multiples of one hundred rupees.
• What is the maximum deposit amount? – a minimum of one thousand rupees shall be deposited in a financial year but the total money deposited in an account on a single occasion or on multiple occasions shall not exceed Rs 1.5 Lakh in a financial year.
• Deposits in an account may be made till the child completes fourteen years, from the date of opening of the account.
• Is there any penalty? – If minimum (Rs 1000 pa) amount is not deposited, the account will be treated as an irregular account. This can be regularized/renewed on payment of Rs 50 per year as penalty. Along with this, the minimum specified subscription for the year (s) of default should be paid.
• What is the mode of deposit? – The deposits in Sukanya Samruddhi scheme can be made in the form of Cash or Demand Draft or Cheque. Where deposit is made by cheque or demand draft, the date of encashment of the cheque or demand draft shall be the date of credit to the account. The cheque or DD should be drawn in favour of the postmaster of the concerned post office or the Manager of the concerned bank.The depositor (parents or guardian) has to write the account holder’s name (child’s name) and the account number on the backside of the instrument.
• What is the Rate of Interest on Sukanya Samriddhi Account? – The applicable rate of interest on SSA for the financial year 2014-2015 is 9.1%. This is one of the highest rates of interest offered by Government on small savings scheme
• Is interest rate fixed or variable? – The rate of interest is not fixed and will be notified by the central government on a yearly basis.
• The account can be transferred anywhere in India if the girl shifts to a place other than the city or locality where the account stands.
• Is Premature withdrawal allowed? – 50 % (half of the fund) of the accumulated amount in SSA can be withdrawn for girl’s higher education and marriage after she attains 18 years of age. The account’s balance at the end of preceding financial year is used for the calculation.
• Can the girl child operate the account? On attaining age of ten years, the account holder that is the girl child may herself operate the account, however, deposit in the account may be made by the guardian or parents.
• Is premature closure allowed? In the event of death of the account holder, the account shall be closed immediately on production of death certificate. the balance at the credit of the account shall be paid along with interest till the month preceding the month of premature closure of the account , to the guardian of the account holder.
• The scheme would mature on completion of 21 years of the girl child, from the date of opening of the account, with an option of keeping the account till marriage.
• Can the girl child continue the account after her marriage? – The operation of the account shall not be permitted beyond the date of the girl’s marriage.
• What are the required documents to open Sukanya Samriddhi Account? – Birth certificate of the girl child has to be produced. The depositor (parents or guardian) has to submit his/her identity and address proofs.
• On opening an account, the depositor shall be given a pass book. It will have date of birth of the girl child, date of opening of account, account number, name and address of the account holder and the initial amount deposited. The depositor has to present the passbook to the post office or bank at the time of depositing/receiving the interest/on maturity.

Tax Benefits on Sukanya Samriddhi Account Scheme

The amount that is deposited under Sukanya Samriddhi Account will be eligible for income tax exemption under Section 80C of Income Tax Act, 1961.

At present, only the contribution of up to Rs 1.5 lakh toward Sukanya Samridhi Yojana is eligible for tax deduction under Section 80C. But discussions are on to also exempt the interest income and withdrawal amount. We can expect a formal announcement on this in the coming Union Budget 2015-16.
(Issue of making interest income and withdrawal exempt from taxation can be done by Department of Revenue (DoR) through legislative amendments. The matter is under examination of DoR)

Sukanya Samriddhi Account vs Public Provident Fund (PPF)

Both Sukanya Samriddhi Account (SSA) and Public Provident Fund (PPF) aims to seed the savings habit but both schemes have their own pros and cons.

Stressing on the girls role in making the India competitive and prosperous nation, Prime Minister Shri Narendra Modi has today launched a new small savings account for the girl child “Sukanya Samriddhi Account” as an integral part of the “Beti Bachao-Beti Padhao” campaign.

Sukanya Samriddhi Account was initially introduced by Shri Arun Jaitely in his maiden budget speech but has been officially launched today by Prime Minister Shri Narendra Modi. He has handed over bank account details to five girls under the “Sukanya Samridhi Yojna” (girl child prosperity scheme).

Sukanya Samridhi Yojna is a special deposit scheme for girl child only but one another popular scheme to benefit child (irrespective of girl or boy) is Public Provident Fund (PPF).

Let’s see the difference between Sukanya Samriddhi Account and Public Provident Fund (PPF)

Sukanya Samriddhi Account vs Public Provident Fund (PPF)

Points of Difference	Sukanya Samriddhi Account (SSA)	Public Provident Fund (PPF)
For whom	Only for Girl Child.	For every Indian Citizen.
Age Limit	From the birth till she attains age of 10 years.	No age limit.
By whom	By the girl child who has attained the age of 10 years or by the natural or legal guardian.	By the Individual but by the natural or legal guardian for the minor child.
Where to open	Post office and nationalized banks but not private banks.	Post office and nationalized banks, including private banks.
Number of Account	One account for each girl child, maximum up to 2 or 3 accounts if twin girls are born in the second birth or triplets are born in the first birth.	Each Individual can hold only one account in his name.
Minimum Contribution	Rs.1,000	Rs.500
Maximum Contribution	Rs.1.5 lakhs in all accounts.	Rs.1.5 lakhs in all accounts.
Interest Rate	9.1% per annum for fiscal year 2014-15.	8.70% per annum for fiscal year 2014-15.
Tax Benefit on the Contribution	Contributed Amount will be deductible u/s 80C.	Contributed Amount will be deductible u/s 80C.
Tax Benefit on the interest earned	At present no tax benefit is announced for the interest earned. A mere sum of Rs.1,5o0 will be deductible u/s 10(32) .	Interest Earned is tax free under PPF.
Time Period of contribution	Minimum tenure of contribution is 14 years from the date of opening of account.	Minimum 15 years and then in blocks of 5 years.
Maturity	21 years from the date of opening of account.	15 years from the fiscal year of opening of account.
Penalty	Rs.50 per year if minimum contribution is not made.	Rs.50 per year if minimum contribution is not made.
Mode of Deposit	Cash or Demand Draft or Cheque	Cash or Demand Draft or Cheque
Premature Withdrawal	Allowed up to 50% for the girl’s higher education and marriage after she attains 18 years of age	No premature withdrawal is allowed except in case of death of the account holder.
Loan	No loan can be taken on the SSA balance.	Loan can be taken from the third year of opening of account to the sixth year.
Taxation on Maturity	No tax will be levied on the maturity amount.	No tax will be levied on the maturity amount.

Note:
1. Interest rate under both the schemes will be notified each year by the Government.
2. Interest will be compounded yearly under both schemes.
3. Loan on the PPF balance is restricted to 25% of the balance at the end of 2nd year.
4. At present interest earned on SSA account is taxable in the hands of guardian but it may get tax rebate in the upcoming budget.
5. Contributed amount get deduction u/s 80c up to Rs.1.5 lakhs including all other eligible investments.

Source : http://akulapraveen.blogspot.in/ &  http://sapost.blogspot.in/

Payment of Salary and other Personal Payments, Salary by Cash on optional basis or through Cheque / Electronically through Bank – instructions

Payment of Salary and other Personal Payments, Salary by Cash on optional basis or through Cheque / Electronically through Bank – instructions

No. 2-1/2007-08/PA (Tech-I) D-813-897

GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATION & IT
DEPARTMENT OF POSTS
PA WING: TECH-I BRANCH
DAK BHAVAN: SANSAD MARG

NEW DELHI-110001
Dated:11-12-2014

OFFICE MEMORANDUM

Sub : Payment of Salary and other Personal Payments, Salary by Cash on optional basis or through Cheque / Electronically through Bank – instructions regarding.

In continuation of this Directorate O.M. of even No. D-482-558 dated 11.07.2007 wherein clarificatory Orders for disbursement of salary to the staff through POSB Accounts were issued and further O.M. of even No.D-255-326 dated 14.05.2009 wherein decision of Director General (Posts) for disbursement of Pay and Allowances to all employees of Department of Posts through cheque and/or through direct credit to the Salary/Savings Accounts of the employees concerned was conveyed for implementation in letter and spirit.

2. Further, another O.M. of even No. D-473-524 dated 03.10.2012 was issued, wherein decision of DG (Posts) was conveyed that payments of Salary and other personal payments including Retirement/Terminal benefits to all employees of Department of Posts mandatorily be made through Bank including POSB electronically by issuing payment advices with immediate effect. However, in special and exceptional cases, payment of Pay and Allowances including other personal payments to the employees can be made through cheque only with the prior approval of Head of Office/Divisional Head/Head of Postal Accounts office.

3. The case has been carefully re-examined in the light of provisions contained in Ministry of Finance, Gazette Notification dated 30.03.2012 and Department of Expenditure, Controller General of Accounts OM. F. No. 1(1 )/20ll/TA/292 &303 dated 31.03.2012 & 11.04.2012 and it has been decided by DG (Posts), that hence forth, all Government Servants of Department of Posts are permitted to receive their Salary by direct credit to their Bank Accounts or in Cash or by Cheque, at their ‘option’ and payments other than Salary like HBA above Rs. 25000/- and all payments towards settlement of Retirement/Terminal benefits such as Gratuity, Commuted value of Pension, Encashment of Leave Salary, CGEGIS, withdrawal from General Provident fund, etc. by issue of payment advices, including electronically signed payment advices, Cheque / POSB Account or Bank Account.

4. All concerned are requested to issue suitable instructions to all Drawing and Disbursing Authorities working under their administrative jurisdiction for strict compliance.

5. The receipt of this OM may kindly be acknowledged to Sh. Naresh Kumar, Asstt. Chief Accounts Officer (PEA), Room No. 412, Dak Bhavan, New Delhi – 110001

/Sd/-
(Rajnish Kumar)
DDG(PAF)

Download Department of Posts Office Memorandum No. 2-1/2007-08/PA (Tech-I) D-813-897 dated 11.12.2014