Saturday, December 10, 2016

Incentivizing Digital Payments - Weekly, Quarterly lucky draw for grand prizes

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Incentivizing Digital Payments - Weekly, Quarterly lucky draw for grand prizes

Incentivizing Digital Payments 

Press Information Bureau 
Government of India
NITI Aayog

10-December-2016 18:18 IST

Incentivizing Digital Payments 

Government of India has initiated numerous steps to combat the scourge of Corruption and Black Money in the last two and a half years. Demonetization of 500 and 1000 Rs. notes is an important milestone in this endeavour. These large denomination currencies have resulted in a number of ill effects upon the economy. To increase overall transparency in the economy, it is important that we set into motion long term schemes to encourage digital payments so that tax evasion can be minimized.

It is possible to leverage technology to carry out business transactions digitally through online payments, mobile banking, e-wallets, debit cards etc. There are a large number of instruments to move from digital to digi-dhan. In Africa a developing country like Kenya has made this possible. In a country like India where 65% of the population is below 35 years of age, whose IT prowess is well recognized and where even poor and illiterate people exercise their franchise through EVMs, this transformation toward digital economy is definitely possible provided the citizens resolve to do so. This would enable the economy to grow at a faster pace.

In order to realize this vision, we need to encourage electronic payments and nudge the society to move from digital to digi-dhan. There has been a remarkable increase in both volume and amount of digital payment transactions since November 8th. However, it is necessary to ensure that electronic payments are adopted by all sections of the society. In view of the above, NITI Aayog has requested National Payment Corporation of India (NPCI) to conceptualize and  launch a new scheme to incentivize digital payments. It would be useful to reiterate that NPCI is a not for profit company which is charged with a responsibility of guiding India towards being a cashless society.

The highlights of the proposed incentives scheme are as follows-

All consumers and merchants using digital payments shall be eligible

There are two levels of incentive amounts available under the scheme:

Weekly lucky draw of the transaction IDs generated in that week, the contours of which are being finalized.

Quarterly draw for grand prizes.

While designing the scheme the focus will be on poor, lower middle class and small businesses.

All modes of digital payments- viz. USSD, AEPS, UPI and RuPay Cards- will be eligible.

For merchants, transactions made on the POS machines installed at their locations would be considered.

The detailed guideline of the scheme shall be unveiled soon. However, it would be ensured that all those who have used digital payment systems after November 8th shall be eligible to participate in the scheme.

The scheme would also provide for recognition of State Governments, their Undertakings, Districts and Urban & Rural Local Bodies who innovate for promoting electronic payment in their respective jurisdictions.

Payment to Suppliers etc. by Government Departments through e-Payment.

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Payment to Suppliers etc. by Government Departments through e-Payment.

F.No. 3(2)(1)/2016/R&P Rules/Amendment/649
Ministry of Finance
Department of Expenditure
O/o Controller General of Accounts
Mahalekha Niyantrak Bhawan,
GPO Complex, E-Block, INA
New Delhi-110023
Date: 05-12-2016
OFFICE MEMORANDUM

Subject: Payment to Suppliers etc. by Government Departments through e-Payment.

A reference is invited to this office O.M.No 1(1)/2011/TA/366 dated 1st August 2016 regarding payment to Suppliers etc. above Rs. 10,000/- by Government Departments through e-Payment.

2. In order to attain the goal of complete digitization of Government payments, the existing limit of Rs. 10,000/- prescribed in paragraph 2 of this office O.M. dated 1st August 2016 has been further reviewed. It has now been decided to lower the threshold limit to Rs. 5,000/- (Rupees five thousand only).

3. All Ministries/ Departments of the Government of India shall ensure with immediate effect that all payments above Rs. 5,000/- (Rupees five thousand only) to suppliers, contractors, grantee/loanee institutions etc. are made by issue of payment advices only.
This issues with the approval of the Finance Minister.

(Soma Roy Burman)
Joint Controller General of Accounts

Authority: www.finmin.nic.in

Declaration of Assets and Liabilities by public servants

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Declaration of Assets and Liabilities by public servants under amended Section 44 of the Lokpal and Lokayuktas Act, 2013 – regarding.

F.No. 21/2/2014-CS.I (U)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
CS-I (PR/CMS) Section

2nd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi,
Dated December 08, 2016

OFFICE MEMORANDUM

Sub: Declaration of Assets and Liabilities by public servants under amended Section 44 of the Lokpal and Lokayuktas Act, 2013 – regarding.
The undersigned is directed to forward herewith this Department’s OM NO:407/16/2016-AVD-IV(LP) dated 01.12.2016 regarding the furnishing of information relating to the assets and liabilities by public servants under Section 44 of the Lokpal and Lokayuktas Act, 2013 (the Act).

2. Contents of the said OM may please be brought to the notice of all concerned.

Encl: As above

(Raju Saraswat)
Under Secretary to the Government of India
Tele: 24629412


Authority: http://persmin.gov.in/dopt.asp

Initial pay fixation of re-employed ex-servicemen - NFIR

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Initial pay fixation of re-employed ex-servicemen who held post below Commissioned Officer rank in Defence Foces, retired before attaining the age of 55 years and have been appointed on re-employment basis in civilian posts

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

No.E(G)2013/EM 1-5
New Delhi, dated 7/12/2016

OFFICE MEMORANDUM

Sub: Initial pay fixation of re-employed ex-servicemen who held post below Commissioned Officer rank in Defence Foces, retired before attaining the age of 55 years and have been appointed on re-employment basis in civilian posts – Regarding.

The undersigned is directed to refer to a demand by the National Federation of Indian Railwaymen (NFIR), a recognised Federation of Railwaymen, who have requested that the initial pay of non-commissioned ex-servicemen (PBOR) who are re-employed on the Railways should be fixed by taking into account the service endered by them in the Defence Forces. They are insisting that the fixation done in the minimum of the scale of the re-employed post should be according to the procedure laid down in para 4 (b) (ii) of DOP&T’s OM s dated 31/7/86 as amended vide OM dated 11th November 2008, 5th April 2010 & 8th November, 2010. The Federation states that the content of these OMs clearly states that the Pay of re-employed former Defence Forces Personnel should be fixed as per Rule 7 of CCS (RP) Rules 2008 i.e. at the same stage of their last basic pay drawn at the time of retirement i.e. allowing one increment (in the post held at the time of retirement) for each year of service the ex-servicemen has rendered at the time of retirement with the proviso that the pay thus fixed does not exceed:-

(a) The pay drawn prior to retirement for non-commissioned officer of all three forces like Army, Navy and Air Force (Sub para 2 (ix) of Para 3 & Para 4 (b) (ii) of OM dated 31st July 1986 are relevant).

(b) Para 5 of DOP&T’s OM No. 3/13/2008-Estt.(Pay-II) dated 11th November, 2008 stipulated enhancement of existing ceiling of Rs. 26000/- for drawal of pay plus gross pension on re-employment to Rs. 80,000/- p.m.

2. However, their attention was drawn to the provisions in DOP&T’s OM No. 3/1/85-Estt.(pay-II) dated 31st July 1986 and OM NO. 3/19/2009-Estt.(Pay-II) dated 5th April 2010, governing initial pay fixation, inter alia, of re-employed ex-servicemen who held post below Commissioned Officer rank in Defence Forces and retired before attaining the age of 55 years and have been appointed on re-employment basis in the Railways. As per these orders, the initial pay of such re-employed pensioners is to be fixed in terms of provisions of Central Civil Services (Fixation of Pay of Re-employed Pensioners) Orders, 1986 issued by Department of Personnel and Training vide OM No. 3/1/85-Estt.(Pay-II) dated 31/7/1986 as amended from time to time.

3. It is to be seen that revised provision contained in Para 2 of OM dated 5th April 2010 revising the contents of Para 4(d)(i) of CCS (Fixation of Pay of Re-employed Pensioners) Orders, 1986 provides that in case of ex-servicemen who held post below Commissioned Officer rank in the Defence Forces and in the case of civilians who held posts below Group ‘A’ posts at the time of their retirement before 55 years of age, the entire pension and pension equivalent of retirement benefits shall be ignored, i.e. no duduction on this count is to be made from the initial pay fixed on re-employment. Also, in terms of the Para 4(a) and Para 4(b)(i) of CCS (Fixation of Pay of Re-employed Pensioners) Orders, 1986, as amended vide DOP&T’s OM No. 3/19/2009-Estt.(Pay.II) dated 5/4/2010, the initial pay on re-employment of such pensioners shall be fixed as per the entry pay in the revised pay structure of the re-employed post applicable in the case of Direct Recruits appointed on or after 1/1/2006 as notified vide Section II, Part A of First Schedule to CCS(Revised Pay) Rules, 2008. As is explicit, these instructions do not provide for protection of last pay drawn before retirement, in such cases. Therefore, the fixation of pay of re-employed ex-servicemen is being done accordingly on the Railways.

4. However, the Federation does not agree with the above contention and desires that the pay of ex-Defence Forces personnel re-employed in Railways should be fixed in accordance with the clarification issued vide DoP&T’s OM dated 5th April, 2010 in Para 3 (iv) & (v) which contain clarifications duly stating that the pay of the ex-servicemen, re-employed in the Central Government Organizations will be fixed in accordance with the provision contained in DoP&T’s OM No. 3/13/2008-Estt.(pay-II) dated 11/11/2008 after exercising option in the manner laid down in Rule 6 of CCS (RP) Rules, 2008 and the fixation of pay is to be regulated in accordance with the provisions of Rule 7 of CCS (RP) Rules 2008.

The Federation has further pointed out that the initial pay of a re-employed military pensioner and a direct recruit cannot be the same in view of the fact that the pay of the re-employed Defence Forces Pensioner is to be done as per the provisions of Rule 7 of CCS (RP) Rules, 2008 applicable to direct recruits – the two entrants being independent and have no co-relation with each other.

5. After protracted correspondence and discussion of the issue between NFIR and the concerned officials of this Ministry, as NFIR are still not convinced with the official stand on this issue and insisting on implementation of Para 3 (iv) and (v) of DoP&T’s O.M. Dated 5/4/2010. Hence, it was decided to refer the matter to DOP&T for clarification.

6. In the light of the position as brought out above, DOP&T are requested to clarify specifically as to whether the contention of NFIR that the pay of non-commissioned ex-servicemen (PBOR) who retire from the Defence Forces before attaining the age of 55 years, and are subsequently re-employed on the Railways should be fixed by taking into account the service rendered by them and last pay drawn in the Defence Forces, is in order, or the procedure being followed on the Railways i.e. fixing the pay of such re-employed ex-servicemen as per the entry pay in the revised pay structure of the re-employed post applicable in the case of Direct Recruits appointed on or after 1/1/2006, without any pay protection is correct.

7. An early reply in the matter is solicited.

(S. Pal)
Jt. Dir. Estt. (Genl.)

Shri A.K. Jain,
Deputy Secretary (Pay),
Ministry of Personnel, Public Grievances and Pensions, 
Department of Personnel and Training,
North Block,
New Delhi.

Source: NFIR

Working Efficiency in Banks

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Working Efficiency in Banks 

Press Information Bureau 
Government of India
Ministry of Finance

09-December-2016 18:04 IST

Working Efficiency in Banks 

Efficiency in the working of Public Sector Banks is a priority of the Government. The Government has formulated Key Performance Indicators (KPI) for Public Sector Banks in August 2015 to be eligible for cash incentives. These are basically related to operational and capital efficiency and include efficiency of capital use, diversification of business processes and NPA management etc.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

Equalization levy of 6 per cent on online advertisers

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Equalization levy of 6 per cent on online advertisers 

Press Information Bureau 
Government of India
Ministry of Finance

09-December-2016 18:04 IST

Equalization levy of 6 per cent on online advertisers 

The Government has introduced equalization levy of 6 per cent on online advertisers. The Finance Act, 2016 had inserted a separate Chapter VIII titled ‘Equalization Levy’ in order to tap tax on income accruing to foreign e-commerce companies from India. It was provided that a person making payment exceeding in aggregate 1 lakh rupees in a year, to a non resident, who does not have a permanent establishment in India, as consideration for online advertisement, will withhold tax at 6% of gross amount paid, as Equalization levy with effect from 1st June, 2016. Further the levy will only apply to Business to Business transactions. This is levied in line with the Organisation for Economic Co-operation and Development’s Base Erosion and Profit Shifting project to tax e-commerce transactions.

The revenue accrued for the Government exchequer through the equalization levy amounts to 146.5 Crore rupees from 1st June 2016 to 3rd December 2016.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

Committee on Digital Payments submits its Final Report to the Union Finance Minister

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Committee on Digital Payments submits its Final Report to the Union Finance Minister

Press Information Bureau 
Government of India
Ministry of Finance

09-December-2016 19:08 IST

Committee on Digital Payments headed by Shri. Ratan P Watal, Principal Advisor, NITI Aayog and former Finance Secretary submits its Final Report to the Union Finance Minister Shri Arun Jaitley today

The Committee on Digital Payments constituted by the Ministry of Finance, Department of Economic Affairs under the Chairmanship of Shri. Ratan P. Watal, Principal Advisor, NITI Aayog and former Finance Secretary to the Government of India today submitted its Final Report to the Union Finance Minister Shri Arun Jaitley in his office in national capital. In its Report, the Committee has  recommended that a medium term strategy for accelerating growth of Digital Payments in India with a regulatory regime which is conducive to bridging the Digital divide by promoting competition, open access & interoperability in payments. The Report recommends inclusion of financially and socially excluded groups and assimilation of emerging technologies in the market, while safeguarding security of Digital Transactions and providing level playing to all stakeholders and new players who will enter this new transaction space.  It has suggested inter-operability of the payments system between banks and non-banks, up-gradation of the digital payment infrastructure and institutions and a framework to reward innovations and for leading efforts in enabling digital payments.

This Committee was seized of the developments following the decision of the Government to cancel legal tender character of currency of high denominations. The Committee has calibrated its recommendations accordingly and has provided a suitable framework for smooth and speedy transition towards a Digital Payments Economy.

The Committee had earlier submitted an Interim Report to Ministry of Finance on 21st November 2016.

Towards finalization of the Report, the Committee engaged extensively with all stakeholders and technology groups including Reserve Bank of India, State Governments, Comptroller Auditor General of India, Payment companies, Technology Companies and the Academia.

Earlier, the Ministry of Finance, Department of Economic Affairs had constituted a Committee on Digital Payments to review the payment systems in the country and to recommend appropriate measures for encouraging Digital Payments. The Committee was constituted on 23rd August 2016 under the Chairmanship of Shri. Ratan P. Watal,  Principal Advisor, NITI Aayog and former Finance Secretary to the Government of India.
The terms of reference and composition of this Committee were as follows:
Terms of Reference:
  • To study and recommend need for charges, if any, in the regulatory mechanism and any legislation, relevant for the purpose of promotion of payments by digital modes
  • To study and recommend ways for leveraging Unique Identification Number or any other proof of identity for authentication of card/digital transactions and setting up of a Centralised KYC Registry;
  • To study introduction of single window system of Payment Gateway to accept all types of Cards/ Digital Payments of Government receipts;
  • To study feasibility and framing rules for creating a payments history of all Digital Payments and create necessary linkage between payments transaction history and credit information;
  • To study and recommend various measures to incentivize transactions through cards and digital means.
  • To study global best practices in payments including initiatives taken by various Governments/ Government Agencies
  • To identify market failure (s), if any, along with suitable interventions that may be implemented to promote payment by card/digital means
  • To identify regulatory bottlenecks, if any, and suggest changes to promote payment by card/ digital means
  • To study and make recommendations on any other matter related to promotion of payments through Cards and Digital Means

Composition of the Committee
Members of this Committee were: Shri H. R. Khan, Former Deputy Governor, Reserve Bank of India; Secretary, Department of Investment and Public Asset Management; President, NASSCOM; Chairman, Indian Banks Association; Chairman, Payments Council of India; President. Internet and Mobile Association of India; Chairman, Central Board of Direct Taxes; Director General, Unique Identification Authority of India; Executive Director, Reserve Bank of India; and Joint Secretary, Department of Economic Affairs, Ministry of Finance. The Committee was also supported by Shri. B.N. Satpathy, Consultant, Ms. Deepika Srivastava, OSD and Shri. Suneet Mohan, Young Professional from NITI Aayog.

The National Institute of Public Finance and Policy (NIPFP) and Department of Economic Affairs (DEA) programme team headed by Shri. Ashish Aggarwal acted as the secretariat for this Committee. The team also included Shri. Pratik Datta, Shri. Aditya Kumar Rajput & Shri. Indrajeet Sarkar.

Awareness Programme by RBI post demonetization

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Awareness Programme by RBI post demonetization 

Press Information Bureau 
Government of India
Ministry of Finance

09-December-2016 17:53 IST

Awareness Programme by RBI post demonetization 

Following the cancellation of legal tender character of old banknotes of high denomination, to minimize the inconvenience to public, telephone helplines has been set up by Reserve Bank of India (RBI) and Frequently Asked Questions (FAQs) have been uploaded from time to time. Various Notifications and Press Releases, in connection with withdrawal of legal tender character of Rs. 500 and Rs. 1000 denominations, have been issued by the Government and the Reserve Bank of India which are available at finmin.nic.in and rbi.org.in.

Various steps have been taken to popularise cashless transactions viz., waiving the MDR charges till 31.12.2016 by the banks to promote greater use of Debit cards, reducing the USSD charges by TRAI from the current Rs. 1.50 per session to Rs. 0.50 per session for transactions relating to Banking and Payments and waiver of the same by the telecom companies until December 31, 2016, not to levy service charge of Rs. 20 for second class and Rs. 40 for upper classes on purchase of reserved E-tickets upto 31st December, 2016 and encouraging public to use balances in bank accounts to pay for their requirements by cheque or through electronic means of payments such as Internet banking, mobile wallets, IMPS, credit/debit cards etc. Further, all Government organizations, public sector undertakings and other Government authorities have been advised to promote the use of digital payment methods. Further details are available at finmin.nic.in.

It has been decided to print banknotes based on plastic/polymer substrate. The process of procurement has been initiated.

This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

Supply of Currency to Post Offices

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Supply of Currency to Post Offices 

Press Information Bureau 
Government of India
Ministry of Finance

09-December-2016 17:47 IST

Supply of Currency to Post Offices 

After withdrawal of the Legal Tender of Specified Banknotes (SBNs) various offices of Reserve Bank of India have provided Rs.238 crores(approximately) in cash to the Department of Post.

Necessary instructions have also been issued by Reserve Bank of India vide DCM (Plg) No. 1508/10.27.00/2016-17 dated 02.12.2016 and DCM (Plg) No.1251/10.27.00/2016-17 dated 10.11.2016 to facilitate cash withdrawal by Post Offices from banks.

This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

Conference on Adequacy of Pension Wealth: Issues and Perspectives

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Conference on Adequacy of Pension Wealth: Issues and Perspectives 

Press Information Bureau 
Government of India
Ministry of Finance

09-December-2016 19:05 IST

Conference on Adequacy of Pension Wealth: Issues and Perspectives 

Pension Fund Regulatory Development Authority (PFRDA), in collaboration with the World Bank, organised a Conference today in the national capital on “Adequacy of Pension Wealth: Issues and Perspectives”, focussing on the two most vital assets of the individuals in their golden years viz their stream of Annuities and their Housing asset. The deliberations essentially focussed on building a robust amount of pension wealth for ensuring a decent living for the pension subscriber after they exit the NPS. The options explored included providing alternative forms of withdrawal during the de-accumulation phase including Systematic withdrawal plan. The possibility and modalities of facilitating acquisition of house for NPS subscribers were also discussed.

The Conference was organised in Collaboration with the World Bank under their FIRST project.

Dr V P Joy, IAS ,EPFO Central Provident Fund Commissioner, Mr Vijay Singh , Director, DEA, GOI, Prof Mukul G.Asher, Professorial Fellow at the Lee Kuan Yew School of Public Policy at the National University of Singapore, Ms Monica Halan, Consulting editor Live Mint, Mr Sanjaya Gupta , Managing Director, PNB Housing Finance Company, besides World Bank officials and other eminent industry experts , deliberated in the panel discussion and provided their views and perspectives . The Conference was well attended by the participants from across the financial sector including banks, Insurance Companies and Pension Funds

Government withdraws exemptions given for the use of Rs.500 old notes

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Government withdraws exemptions given for the use of Rs.500/- old notes, from the mid night of December 9, 2016 for making payments at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses for purchase of tickets

Press Information Bureau 
Government of India
Ministry of Finance

09-December-2016 18:23 IST

Government withdraws exemptions given for the use of Rs.500/- old notes, from the mid night of December 9, 2016, for making payments at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses for purchase of tickets; For making payments to catering services on board, during travel by rail; and For making payments for purchasing tickets for travel by suburban and metro rail services. 

Government has been reviewing the different operational aspects of the matters related to the cancellation of the legal tender character of old high denomination notes of Rs.500/- and Rs.1,000/-. There has been a declining trend in the receipt of these old currency notes of Rs.500/- and Rs.1000/-. Further, a number of steps have been taken for promoting digital transactions. 

Keeping the above in view, the exemptions that have been given for use of Rs.500/- old notes, were re-examined by the Government and the following exemptions are, therefore, being withdrawn from the mid night of December 9, 2016:
  • For making payments at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses for purchase of tickets;
  • For making payments to catering services on board, during travel by rail; and
  • For making payments for purchasing tickets for travel by suburban and metro rail services.


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