25 November 2016

Central Government Employees likely to get new allowances from January 2017

It is reported from sources in the Ministry of Finance that centre likely to start disbursing allowances at higher rate in the next calendar year.

It is learnt that due to demonetization and cash crunch, the process is delayed. It is likely to be paid from January 2017. 

Regarding date of effect, though the decision is yet to be taken but it is widely anticipated that fatter allowances will be effected from August 2016 and arrears to be paid in one go in January 2017.

As far as rate of allowances, the source added that the committee will stick to the pay commission recommendation. So the possibility to get something higher looks remote.

It is also reported that Govt. may consider only against abolishing of a few allowances as a populist measure.

Source : IPASP (CHQ) Blog

Rs.500, Rs.1000 Banknotes can be used for paying School, College Fess and Mobile Recharge

Press Information Bureau
Government of India
Ministry of Finance
24-November-2016 19:43 IST

After due consideration of all relevant aspects, the Central Government takes various decisions relating to certain operational aspects of the Scheme relating to cancellation of legal tender character of old Rs. 500 and Rs. 1000 notes; No over the counter exchange of old Rs. 500 and Rs. 1000 notes after midnight of 24.11.2016;.Certain other exemptions continued till 15th December, 2016 with certain additions and modifications.

The Central Government has been reviewing the issues related to the cancellation of legal tender character of old Rs. 500 and Rs. 1000 notes. The Government has also been receiving various suggestions in this regard. After due consideration of all relevant aspects, the following decisions relating to certain operational aspects of the Scheme have now been taken:

(i) It has been observed that over the counter exchange of the old currency notes of Rs. 500 and Rs. 1000 denomination has shown a declining trend. It has further been felt that people may be encouraged and facilitated to deposit their old Rs. 500 and Rs. 1000 notes in their bank accounts. This will encourage people who are still unbanked, to open new bank accounts. Consequently, there will be no over the counter exchange of old Rs. 500 and Rs. 1000 notes after midnight of 24.11.2016.

(ii) Government had also permitted various exemptions for certain transactions and activities wherein payment could be made through old Rs. 500 and Rs. 1000 notes. It has been decided that all these exemptions, with the additions and modifications as detailed below, may be continued for a further period from the midnight of 24.11.2016 up to and inclusive of 15.12.2016 :-

(a) Payments for the transactions under all the exempted categories will now be accepted only through old Rs. 500 notes;

(b) Payment of School fees up to Rs. 2000 per student in Central Government, State Government, Municipality and local body schools;

(c) Payment of fees in Central or State Government colleges;

(d) Payments towards pre paid mobile top-up to a limit of Rs. 500 per top-up;

(e) Purchase from Consumer Cooperative Stores will be limited to Rs. 5000 at a time;

(f) Payment of current and arrear dues to utilities will be limited to only water and electricity. This facility will continue to be available only for individuals and households;

(g) Considering that the Ministry of Road Transport and Highways have continued the toll free arrangement at the toll plazas up to 2.12.2016, it has been decided that toll payment at these toll plazas may be made through old Rs. 500 notes from 3.12.2016 to 15.12.2016.

(h) Foreign citizens will be permitted to exchange foreign currency up to Rs. 5000 per week. Necessary entry to this effect will be made in their passports. (Necessary instructions in this regard will be issued by the RBI).

CHQ News - Directorate called for information regarding transfers under Rule 38

As everyone aware that Directorate vide memo No. 22-244/2016-SPB-II dated 9-11-2016 has called for the information regarding transfer of Rule 38 cases of Inspector Posts cadre from all circles on or before 11/11/2016. 

It is learnt that many circles have yet not submitted requisite information to Directorate. It is requested to IPs/ASPs working in circle offices to confirm the submission of information by their circle to GS through whatsapp. 

WOS currency notes will not be exchanged in Post Offices after midnight on 24.11.2016 It is learnt that Chairman, GDS committee has submitted its report to Secretary (Posts) and DG (Posts) in the morning.


It is learnt that Chairman, GDS committee has submitted its report to Secretary (Posts) and DG (Posts) in the morning.

Source :  IPASP (CHQ) Blog

S B order No. 13 / 2016 : WOS notes will be accepted only in PO Savings Bank Accounts and not in other accounts like RD, TD, MIS, SSA, SCSS, PPF, KVP, NSC etc.

Hon'ble CAT Ernakulam Bench directed Department to hold examination separately for each vacancy year

Directorate directed circles not to issue admit cards for PS Gr. B examination but preparatory work continue

Subject: PS Group B Exam to be held on 04.12.2016

Respected Sir/Madam,

This is regarding conduct of the P.S. Group B Examination scheduled to be held on 04.12.2016

2. It is informed that CAT Ernakulam Bench has issued following directions dated 24.11.2016 in OA No. 180/953/2016 filed by Sh. Ajith Kurian, ASP, CO Kerala and others:-
“The respondent is directed to hold the examination separately for each vacancy year with a gap of minimum 40 days advance notice as per Appendix 37 of Postal manual Volume IV so that the applicants can avail the year-wise chance of appearing in the Examination. The respondents can notify the dates of five Examinations, if necessary, in advance, so that the applicants appearing in each year would get prior information of the dates”

3. In this connection, 12 Circles were provided with the details of the eligible candidates for issue of admit cards so far. It is requested that admit cards may not be issued to the candidates till further instructions from this office as the order of the CAT is being examined by this office. Meanwhile the preparatory work may be continued.

4. This issues with the orders of competent authority.



Directorate issued DA order @7% to GDS staff

Discontinuation of Indian Postal Orders (IPOs)

05 November 2016

Regarding Supply/Circulation of Gradation List of IPs/ASPs

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CHQ News - Status of Contempt Petition regarding up-gradation of Grade Pay of Inspector Posts w.e.f 01.01.2006

It is learnt that as per cause list, our Contempt Petition bearing No. C.P/180/137/2016 filed before Hon’ble CAT Ernakulam Bench in OA No. 289/2013 regarding up-gradation of GP of Inspector Posts w.e.f. 1/1/2006 is listed for hearing on 07/11/2016 (Monday) in Court No.1. 

Setting up of Departmental Anomaly Committee of Department of Posts


A meeting on Department of Posts specific allowances was held with the Committee on allowances under chairmanship of Secretary Finance and secretary Expenditure. From Department of Post, Secretary (Post), Member (Personal), DDG (Personal), DDG (Estates) , DDG(Estt. & SR), Director Estt. attended the meeting. From Staff Side Com. R.N. Parashar, Secretary General NFPE,Shri Theagarajan, Secretary General FNPO & Shri S.K. Mishra , Secretary General, BPEF, participated in the  meeting. Many other officers of DOP&T, Finance, Health Ministries also participated.                                                             

Three meetings were held with Department and Administration and Unions after discussing threadbare came to conclusion and accordingly presentation was prepared which was presented before the Committee. Secretary (Finance) shown much interest and he asked so many questions and raised queries on each allowance and asked the Department to submit a report on financial implications.

The meeting was concluded in a very co-ordial manner and hope for positive outcome. On the following allowances we submitted our proposal which is mentioned below:

Fixed Monetary Compensation to Postman:

Proposal: Not to abolish the allowance. It is proposed to grant Rs.300/- per day for additional full beat and Rs.150/-  per day for sharing of beat(half beat) and further proposed to increase by 25% every time when DA  reaches at    50%.(Department earlier proposed that allowance as Rs.200/- and Rs.100/-  but on the demand of Federations, now it is proposed  same as Rs.300/- and   Rs.150/-.

Special Allowance to PO & RMS Accountants:

Proposal: The allowance is required to be continued as this special allowance has been sanctioned in lieu of higher pay scale. If abolished, one  increment is to be allowed on promotion which costs more to the Department.Therefore, it is proposed to grant special allowance equivalent to one     increment which will be kept separately and not to be added in the basic pay.Other conditions applicable to present allowance will remain in force. (i.e. if this allowance  is drawn for three  years it will be  added to basic pay while pay fixation on promotion.)

Cycle Allowance to Postman:

Proposal: Must be retained while doubling the amount to Rs.180 p.m. and further increase by 25% every time the DA increases by 50%.

Cash Handling and Treasury Allowance:

Proposal: The Cash Handling Allowance should be retained and need to be doubled and further increase by 25% every time the DA increases by 50%.

Fixed Medical Allowance:

Proposal: 33 Postal Dispensaries may be merged with CGHS.All Postal Pensioners irrespective of their participation in CGHS while in service should be covered under CGHS after making requisite subscription.Till such time, the FMA may be allowed @ Rs.2000/- per month enhancing from Rs.500/- p.m.  being paid at present.

Headquarter Allowance:

Proposal: Proposes to retain the Headquarters Allowance at the uniform rate of 10% of the basic pay subject to ceiling of Rs.9000/- per month.

Overtime Allowance:

 Proposal: Department recommends to grant additional duty allowance in lieu of OTA in operative offices only  for performing additional duty of absentee official.

It is proposed  Rs. 100/- per hour maximum of three  hours in a day and further  increase by 25% every time the DA increases by 50%.

Besides these DOP demanded S.B.Allowance and Supervisory allowance to be continued and enhanced proportionately.

Dearness Allowances from July, 2016, @ 2 % Order Issued

To view MoF OM No. 1/2/2016-E-II(B) dated 4th November 2016, please CLICK HERE. 

04 November 2016

Tirupati Darshan Tickets now at Post offices

Residents of Chennai planning for a pilgrimage to Tirupati can now book special darshan tickets through post offices.

On Tuesday, the Department of Posts launched this facility at the T. Nagar and Mylapore post offices on a pilot basis.

The ticket booking system has already been launched in Andhra Pradesh.

The Chennai city region of the Postal Department has tied up with TTD for the facility. Officials of the department said entry tickets are to be sold at Rs. 300 each and permits registration for six persons.

Each person will get two free laddus.

J.T. Venkateswarulu, Postmaster General (Mails and Business Development), said customers can book 56 days in advance of their journey. At present, tickets can be booked for four slots of darshan - 10 a.m., 11 a.m., 12 p.m. and 1 p.m. Devotees have to produce photo identity cards to book tickets.

At present, TTD has limited number of bookings through post offices to 5,000 tickets per day.

Decentralization of payment system for advertising compaigns through DAVP

To view, please CLICK HERE. 

Now, you will get all PF, pension dues on or before retirement date on PM Narendra Modi push

New Delhi | November 2, 2016

Your provident fund (PF) and Employee Pension Scheme (EPS) dues will be paid by the Employees’ Provident Fund Organisation (EPFO) on or before the day you retire. A decision to this effect has been taken by EPFO and instructions have been issued by the Central Provident Fund Commissioner, V P Joy on Tuesday to all its offices as a follow up the directions received from Prime Minister Narendra Modi at the recent PRAGATI review meeting held on October 26. The PRAGATI (Pro-Active Governance And Timely Implementation) was held to reviewing programmes and projects of the central and state governments.

“It has been decided that PF and pension payments to members of EPF Scheme 1952 and EPS 1995 are made on the date of retirement itself,” Joy has said in his communication to EPFO offices.

The move comes a day after the CPFC issued instructions regarding settlement in respect of death cases on priority within 7 days.

Joy has instructed EPFO offices to take several steps to ensure payment of dues on the day of retirement. These include:

Generate a monthly list of retiring EPF/EPS members attaining the age of superannuation three months in advance by concerned offices. This should be communicated to the concerned members and their respective employers.

The employers should be requested to make payment of contributions in advance in respect of such retiring employees one month in advance of the date of their retirement.

A complete set of PF and pension claim form along with the communication to fill up the forms and submit to the concerned office complete in all respect at least 14 days prior to the date of retirement should be sent to the retiring employees

The PRO and officials in the Facilitation Centre should be instructed to scrutinise the claim forms received in respect of retirement cases and guide the claimants for submission of all required documents in one attempt only.

For this purpose an official trained and deputed in the facilitation centre will receive the retirement claims. Proper display in regard be made on the seat/counter “please contact for retirement cases" in Hindi, Regional Language and English.

All such retirement claims should be stamped in bold "Retirement claims – Top Priority” The PF claim settlement amount must invariably be credited to the member accounts on or before the date of retirement.

Source : http://www.financialexpress.com

Children Education Allowane(CEA)-Clarification regarding e-Receipts

To view Directorate Memo No. 33-05/2013-PAP dated 26th October 2016, please CLICK HERE. 

03 November 2016

Sukanya Samriddhi Yojana: Important watchouts before you invest

Sukanya Samriddhi Yojana (SSY) is targeted towards a girl child and her financial needs such as education and marriage. However, as the exact age at which she would require the funds is uncertain, the scheme tries to be flexible. The investors, on the other hand, need to keep in mind five important years or time spans before taking the plunge in SSY. Consider, for instance, the girl child's age, and the time left for her education and marriage. 

Opening an account (0-10 years) 

An SSY account can only be opened in the name of a girl child (beneficiary) below 10 years, as on the date of the opening of the account. The date of birth proof is, therefore, essential. The rules allow for the opening of a maximum of two accounts for two girls in a family. One can't open two accounts for one girl. The girl child's age is very important to find out the duration of the scheme. Here's why: 

5 years 

The request for the first premature closure of an SSY account can be put forward after the completion of five years of the account opening. That too, as per the rules, on extreme compassionate grounds such as medical support in life-threatening diseases. Still, if the account has to be closed for another reason, it will be allowed, but the entire deposit will only get interest of a Post Office Savings Bank account. 

10 years 

When the beneficiary, i.e., the girl child crosses the age of 10, she can operate the account on her own. She can make any future contributions to her own account. The parents, too, can continue to deposit in the same account. 

15 years 

To open an SSY account, a minimum initial deposit of Rs 1,000 is required. Thereafter, a minimum of Rs 1,000 up to a maximum of Rs 1.5 lakh can be deposited in the account annually. To keep the account active, deposits need to be made only for the initial 15 years. For a 9-year-old, deposits have to continue till the child turns 24. Between ages 24 and 30 (when the account matures), the account keeps earning interest on the balance. 

SSY is a long-term investment scheme. The partial and full withdrawal window is sacrosanct subject to applications made to foreclose the account prematurely. 

18 years 

The next window for withdrawals is allowed when the girl turns 18. And the rules make it clear that the funds are for her needs and not used for any other purpose. A maximum of 50 per cent of the account balance of the preceding year may be withdrawn for the purpose of higher education of the girl. 

For this, not just a written application, but a documentary proof in the form of a confirmed admission offer in an educational institution or a fee slip from such institution clarifying such financial requirement is required. Further, the withdrawal amount will be restricted to the actual demand of fee and other charges required at the time of admission as shown in the offer of admission or the relevant fee slip issued by the institution. 

21 years 

Irrespective of the age, the SSY account will run for 21 years from the date of its opening. So if the girl child's age is 9, the scheme will mature when she turns 30. The rules, however, permit final closure anytime before 21 years if the parent files an application for such premature closure for the purpose of her marriage and confirms through an affidavit that the applicant is not below 18 years on the date of marriage. At times, this could be a roadblock as the closure is subject to conditions as seen above. 

The attractiveness 

SSY carries the highest tax-free return with sovereign guarantee and comes with the exempt-exempt-exempt (EEE) status. The annual deposit (contributions) qualifies for Section 80C benefit and the maturity benefits are non-taxable. SSY can be opened in a post office or a bank. One can also make deposits through electronic means, i.e., e-transfer to the concerned post office or bank if either has access to the core banking facility. 

Alternative investments
SSY is a dedicated scheme for a girl child's needs. Public Provident Fund (PPF), a 15-year scheme that also comes with loan and partial withdrawals facilities, can be an alternative. Although a PPF account can be extended in block of five years after the initial 15 years, the possibility of funds being used for other purposes exists. 

As per the rules, at any point of time, the interest rate of SSY will always be higher than that of PPF. For both schemes, the government fixes the interest rate on quarterly basis based on the G-sec yields.The interest rate and spread that SSY enjoys over the G-sec rate of comparable maturity is 75 basis points compared to PPF's 25. 

Currently, the interest rate of SSY is 8.5 per cent per annum compounded annually, while it is 8 per cent per annum for PPF. Mark the date in SSY as there will not be any interest on the amount deposited after the 10th for that specific month. Even when compared to traditional life insurance plans, SSY scores higher, especially when combined with a term insurance plan. 


Estimate how much inflated-adjusted funds would be needed for the education and marriage of the girl child. SSY is a debt investment, therefore, for a long-term need, relying more on equities helps. One may use it to invest a portion of the funds earmarked for the girl child's needs and not entirely depend on it.

This could apply even to those who have exhausted their annual Section 80C limit of Rs 1.5 lakh. Simultaneously, buy a pure term insurance to provide adequate life cover to the financial dependents. Understandably, for younger kids, the time duration for accumulating funds would be more compared to those nearing 10 years, but still SSY can be a part of one's portfolio 

Source:- The Economic Times

CHQ News - Status of our Contempt Petition regarding upgradation of Grade Pay of Inspector Posts w.e.f 01.01.2006

It is ascertained from our counsel that no reply has been filed by the respondent i.e. Secretary, Department of Expenditure, MoF in our contempt petition. The case is said to be posted in the second week of this month. Exact date is not informed by the lawyer. 

Commemorative Postage Stamp released on Haryana Swarna Jayanti Celebrations, in Gurugram, Haryana

The Prime Minister, Shri Narendra Modi released commemorative postage stamps to mark Haryana Swarna Jayanti Celebrations, in Gurugram, Haryana on November 01, 2016.

The Governor of Haryana, Prof. Kaptan Singh Solanki and the Chief Minister of Haryana, Shri Manohar Lal Khattar were also present during the stamp release function. 


The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the first Cadre Review of Indian Posts & Telecommunications Accounts and Finance Service (IP&TAFS) with the following salient features:

(a) Reduction of the total strength of the cadre from 420 to 376.

(b) Creation of one Apex level post of Controller General of Communication Accounts (CGCA).

(c) Creation of one additional HAG+ level post taking the grade strength to 2.

(d) Creation of two additional HAG level posts taking the grade strength from 6 to 8.

(e) Creation of 18 additional SAG level posts taking the grade strength from 37 to 55.

(f) Reduction in JAG level posts from 111 to 90.

(g) Reduction in STS level posts from 198 to 86.

(h) Creation of 21 JTS level posts taking the grade strength from 67 to 88.

(i) Creation of 46 Posts to be operated as Reserves


Indian Posts & Telecommunications Accounts and Finance Service Group ‘A” was constituted in 1972 and caters to the Department of Telecommunications (DoT) and the Department of Posts (DoP).

In Department of Telecommunications, the IP&TAFS performs the functions of assessment and collection of license fee/ spectrum usage charges, spectrum auction, USO scheme monitoring and subsidy management, exchequer control, budgeting, accounting, pension disbursement, internal audit and finance advice. In the Department of Posts, the IP&TAFS is entrusted with the functions of finance advice, budgeting, tariff and costing, accounting and internal audit.

There has been a paradigm shift in the role of Department of Telecommunications as well as the Department of Posts in recent years. In the Telecom sector, the role of the Department of Telecommunications has transformed from primarily being a Service provider, Regulator and Policy maker into the present structure whereby the Department is primarily responsible for Policy making, Licensing and Universal Service Obligation. Receipts from Department of Telecommunications, primarily License Fee, Spectrum Usage Charges and Spectrum Auction Value constitute one of the largest source of non-tax revenue for the Government of India.

Similarly, the bundle of services offered by Department of Posts has undergone a quantitative and qualitative change and the Department has ventured into areas of retailing, banking, insurance, digitizing operations etc. Further, the audit mechanism in both the Departments needs to be strengthened.

These facts coupled with the stagnation in various grades of the service necessitated a review of the structure of IP&TAFS.

02 November 2016


Release of Commemorative Postage Stamp on 'National Unity Day'

Commemorative Postage Stamp on 'National Unity Day' of denomination of Rs. 10/- released on the occasion of birthday of Sardar Vallabhbhai Patel released on 31/10/2016 at New Delhi. 

Rashtriya Ekta Diwas (National Unity Day) was introduced by the Government of India and inaugurated by Indian Prime MinisterNarendra Modi in 2014. The intent is to pay tribute to Vallabhbhai Patel, who was instrumental in keeping India united. It is to be celebrated on 31 October every year as annual commemoration of the birthday of the Iron Man of India Sardar Vallabhbhai Patel, one of the founding leaders of Republic of India. The official statement for Rashtriya Ekta Diwas by the Home Ministry of India cites that the National Unity Day “will provide an opportunity to re-affirm the inherent strength and resilience of our nation to withstand the actual and potential threats to the unity, integrity and security of our country.”

National Unity Day celebrates the birthday of Patel because, during his term as Home Minister of India, he is credited for the integration of over 550 independent princely states into India from 1947-49 by Independence Act (1947). He is known as the “Bismarck[a] of India”.

The celebration is complemented with the speech of Prime Minister of India followed by the "Run for Unity".[

The theme for 2016 celebrations was "Integration of India".