The quarterly gross value added (GVA) at basic price at constant (2011-12) prices for Q2 of 2016-17 was estimated at Rs 27.33 lakh crore, as against Rs 25.52 lakh crore in Q2 of 2015-16, translating into a growth rate of 7.1 percent over the corresponding quarter of previous year, according to statistics released by the Central government on Wednesday at around 5.30 pm.
It's a tad unbelievable that an outgo of about Rs 34,600 crore during the July-September quarter (Q2) on account of salary arrears and enhanced pay to Central government employees did not boost the Indian economy in terms of higher consumption.
On Monday (November 28), the Modi government said the GDP growth rate for the April-September 2016 was 7.1 percent; when seen in the context of 7.1 percent expansion in Q1, it seems things more or less remained unchanged.
"Despite subdued growth in the world economy, India has maintained a GDP growth rate of 7.2 per cent in 2014-15, 7.6 per cent in 2015-16, and 7.1 per cent during April to September of 2016-17," Nirmala Sitharaman, commerce and industry minister told the Lok Sabha in a written reply on Monday, reported IANS.
In other words, the much-flaunted boost to the economy did not happen, despite the salary hike and arrears, in addition to a normal monsoon that was supposed to have lifted rural demand.
"The combined outgo for the Centre on account of arrears for January to July and payments for August will total Rs 34,600 crore," ratings agency India Ratings (Ind-Ra) had said in August.
The recommendations of the 7th CPC cover 47 lakh Central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.
Is there something amiss?
The question gains credence when seen with the growth in the volume sales for automobile companies, of 13.22 percent in July, 23.72 percent in August and 20.16 percent in September. If the increase in volume sales can't be attributed to pay hike, then it raises another question: did employees simply invest most of the money with banks and in other instruments, reflecting in a spike in bank deposits in September?
Source : http://www.ibtimes.co.in
January Salary Of Central Employees To Follow Higher Allowances: Finance Ministry
Report says that a top official of the finance ministry today told on condition of anonymity that Central government employees salaries for January will be in line with the higher allowances.
When asked whether the arrears would be paid too, he said, "This depends on the cabinet. If the cabinet gives the nod higher allowances with retrospective effect from August 2016, the arrears will be paid."
"The government faces severe attack for cash crunch because of demonetisation. But the situation will return to normalcy after the deadline of December 30 for deposit of invalid Rs 500 and Rs 1,000 notes."
He added, "It's better if delayed till sufficient cash is available with the banks."
The government in June approved the 7th Pay Commission recommendations for its employees with higher basic pay, which has been paid with arrears, effective from January 1, 2016 but the hike in allowances other than dearness allowance referred to the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa for examination as as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.
Until acceptance of higher allowances, existing allowances are to be paid according to the 6th Pay Commission recommendations, says an earlier official statement issued by the finance ministry.
However, the committee on allowances head Finance Secretary Ashok Lavasa said recently, "We are ready to submit our report, when the Finance Minister Arun Jaitley calls up."
Solution for the scheme change error - "Unprocessed records in outward clearing for this account" in DOP Finacle
- Generally in DOP we can change the scheme of a SB account by using the menu HACXFRSC.
- HACXFRSC stands for Transfer A/cs between Schemes.
- For detailed step by step procedure to use the menu HACXFRSC users can CLICK HERE.
- But sometimes when we are trying to change the scheme code for a SB account we will get the error-"Unprocessed records in outward clearing for this account" in DOP Finacle.
- The error screen shot will be as shown in the below figure
- From the above screen shot it is clear that the system is showing the above error as mentioned.
Root cause of the above problem :-
- The above mentioned error will occur mainly due to the unprocessed cheque which is entered in the outward zone which is not yet realized for that specified SB account.
- This can be inquired using the menu HOIQ. This menu is used to inquire the status of the instrument which is entered in the outward zone
- Invoke the menu HOIQ and then the system will show the below screen shot as shown
- Then in the next step enter the from account field and to a/c id as the SB account number as mentioned in the below screen shot
- Then click on Go then the system will show the details of the instruments lodged in the outward zone as shown in the below screen shot
- From the above screen shot it is clear that an instrument 751445 is pending in the outward zone for Rs 30000/- as shown in the above figure.
Solution for the above Problem :-
- In order to solve the above problem only solution available the pending cheque in the outward clearing should be realized until that time we have to wait for the scheme transfer for that SB account.
- Always check in HOIQ before proceeding for scheme transfer for any SB account. If there are any pending instruments to be cleared then wait for the outward realization and then proceed for scheme transfer for the SB account.
6th Meeting of committee on Allowances constituted to examine the recommendations of 7th CPC regarding Allowances - NFIR
National Federation of Indian Railwaymen
3, Chelmsford Road, New Delhi – 110 055
No.IV/NIrIll/7 CPC (IMPl)/Allowances/2016
The General Secretaries of
Affiliated Unions of NFIR
Sub: 6th Meeting of committee on Allowances constituted to examine the recommendations of 7th CPC regarding Allowances-reg.
Ref:RailwayBoard’sletter No.PC-VII/2016/CDS/3 dated 28/ll/12016
General Secretary, NFIR has participated in the 6th Meeting of the Committee on Allowances constituted to examine the recommendations of 7th CPC regarding Allowance at 17:30 Hrs on 28/11/2016 at Room No.169-D(Fresco), 1st Floor, North Block, New Delhi chaired by Finance Secretary, Government of India, participated by Member Staff/Railway Board, Secretary/Ministry of Defence, Secretary Postal, Additional Secretary (Expenditure), Joint Secretaries etc.
The points raised by the General Secrelary, NFIR in the meeting and sent to the Joint Secretary (implementation Cell, 7th CPC) though a communication vide dated 29th November, 2016 (as confirmation of points) may be perused in the enclosure to this letter for conveving the contents to the staff down the line.
ALL INDIA RAILWAYMEN'S FEDERATION
4,State Entry Road,
New Delhi - 110055
Dated: November 28, 2016
The General Secretaries,
All Affiliated Unions,
Sub: Brief of the meeting held on 28.11.2016 with the Committee on Allowances
A meeting in the matter of Allowances related to the Railways was held today under the Chairmanship of Secretary (Finance), Government of India and others. Staff Side was headed by the undersigned and Com. M. Raghavaiah, General Secretary NFIR.
The discussion was initiated by me.
At the outset, I reminded the Committee, specifically the Finance Secretary, that strike situation was averted by the government by deputing three Cabinet Ministers, viz. Hon’ble Home Minister, Hon’ble Finance Minister and Hon’ble Railway Minister. On 29th June, 2016, the government issued notification and this was firmed-up by another notification on 06.07.2016 issued by the Ministry of Finance(Deptt. of Exp.). The government took four months time to decide the issues of Minimum Wage, Pay Fixation Formula, Allowances and National Pension System(NPS) etc. I pointed out that, “four months time is running out, so the reports of these committees should be published and all the allowances should be revised and sanctioned w.e.f. 01.01.2016. The matter of Breakdown Allowance, Coal Pilot Allowance, Commercial Allowance (Flag Station Allowance), i.e. Gate Allowance, Rajdhani Express Allowance, Risk Allowance, Sumptuary Allowance to Trainers, which has been abolished by the VII CPC, should be allowed to be continued”.
The matter of positive recommendations of the VII CPC in respect of granting of Train Controllers Allowance, Track Maintenance Allowances were elaborately discussed by the undersigned, pointing out that, the significance of these categories was elaborately highlighted. In addition, Additional Allowance to Running Staff was explained in detail, demanding its extension to Loco Pilot and Guards(Goods). It was also pointed out that, in the event of any train accident, Loco Pilot and Asstt. Loco Pilot are equally responsible. Difficult condition of the Goods Guard was also explained in greater detail. It was also demanded that those allowances should be extended to all the categories of Loco & Traffic Running Staff and the same should be counted for pensionery benefits. In respect of non-appearance of certain allowances in the report of the VII CPC, the vagaries of the life of the personnel working in the National
Projects were also highlighted, including Officiating Allowance, Risk Allowance etc.
The undersigned also impressed upon the Committee, especially the Secretary (Finance), that, positive recommendations of the committee should be published and all decisions in respect of allowances should take retrospective effect w.e.f. 01.01.2016.
(Rakhal Das Gupta)
Instructions regading No Limit for Withdrawals in Post Offices as per RBI relaxation
Please find attached the RBI Notification regarding relaxation in the limit of withdrawal of cash from bank deposit accounts. The instructions of RBI stipulates that withdrawals may be allowed for deposits made in current legal tender notes on or after 29.11.2016 beyond the current limits preferably, available higher denomination bank notes of Rs. 2000/- and 500/- are to be issued for such withdrawals.
This instructions of RBI is applicable only for those depositors who deposits valid legal tender notes and seeking withdrawal, for whom the current limit of (Rs. 24000/-) is relaxed.
The following are the procedure to be followed:-
1.The withdrawal exceeding the current limits may be allowed only in the home SOL of the account holder.
2.The Finacle application should validate the withdrawals exceeding the limit for those depositors who deposit the current legal tender notes on or after 29.11.2016. For this purpose a Patch needs to be deployed.
3.The counter PA should maintain a separate register for entering details of such deposit transactions.
The proforma of the register is as follows:-
Name of the Account Holder
SB Account Number
Amount Deposited through current legal tender notes
Deno. of legal tender notes
Counter PA Sign.
PM/SPM/ Counter Supervisor Signature, Date and amount of withdrawal, if any
4. The depositors who are depositing current legal tender notes on or after 29.11.2016 should write the denomination of currency notes on the pay in slip.
5. After acceptance of deposit by post office, the concerned PA should acknowledge the tendering of currency notes on the back side of the counterfoil of the pay in slip and write the Sl. No. of the entry in above mentioned register.
6. While allowing withdrawal the Counter PA should consult the prescribed Register and make necessary entries for the cash withdrawal from the respective account.
7. Counter PA should maintain the details of cash received and remitted to Treasurer separately for WOS Notes and Current Legal Notes.
CEPT team/FSI vendor is requested to put in place necessary validation by deploying a Patch in Finacle application. Further detail will be intimated in due course.
In the meanwhile, necessary instructions may be issued to all concerned.
Search for higher rates ends at post offices, govt bonds
MUMBAI: Investors are rushing to lock money into post office deposits and a government bond, which are yet to cut interest rates even as banks lower deposit rates.A bank deposit now pays a maximum of 7%, while post office deposits pay 7.8% and the government bond pays 8%.
"There is a rush amongst investors to lock into longer-tenure products and where there is no announcement of rate cuts so far," said Vikram Dalal, managing director, Synergee Capital.
For retirees and other investors living on interest income from deposits, financial advisors said, the government savings bonds, which have a tenure of six years for small investors, make sense.
"There is no reinvestment risk as you can lock in at a rate as high as 8% for 6 years. It works well for those whose income is not subject to tax or who are in the marginal tax bracket," said Dalal. The minimum investments amount is Rs 1,000 and there is no ceiling on the upper limit. The bonds are issued in physical form.
"The only drawback of this product is that it is illiquid since they are not traded and cannot be encashed in an emergency.However, investors can opt to take a loan on this product, says Anup Bhaiya, MD, Money Honey Financial Services.
Interest rates on bank fixed deposits fell post demonetisation. Banks like SBI, ICICI Bank, HDFC Bank, Kotak Bank have all cut fixed deposit rates by 15-25 basis points (100 basis points is equivalent to 1%).
Post the rate cuts, a five year fixed de posit fixed de posit from State bank of India fetches 6.5%, while HDFC Bank gives 6.75%. Taking a cue from banks, finance companies too have lowered deposit rates. HDFC now offers 7.65% for a five-year deposit, while Gruh Finance is offering 7.5%.
"The banking system is flush with liquidity and there are not enough avenues to deploy money .Given this and expected rate cuts, fixed deposit rates could head even lower in the coming months," says Shankar S, financial planner at Credo Capital.
Source : The Economic Times
FAQs on Withdrawal of Legal Tender Status of the existing Bank Notes in the denominations of 500/- and 1000/- (Updated as on November 28, 2016)
FAQs on Withdrawal of Legal Tender Status of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 28, 2016)
|Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 28, 2016)|
Source : https://www.rbi.org.in/Scripts/FAQView.aspx?Id=119
Validation on execution of HISCOD with SET ID and restriction of menu access after HISCOD before date change
- Some SOLs habituated in leaving the office without execution of HISCOD as a result of which CPC had executed HISCOD in SET ID
- This causes skipping of validations at HISCOD and HSCOD getting failed during date change / HSCOLD
- And some SOLs doing transaction after execution of HISCOD and leaving without clearing. This resulted in failure of HSCOD / HSCOLD
Unblocking the transactions will cause issues during closures and interest posting :-
- Hence it is necessary to stop running HISCOD in SET ID to avoid skipping of validations and not allowing SOLs to do transactions after execution of HISCOD and before date change (HSCOD)
- Patches meant for these two validations were already deployed in productions
- From today onwards, CPC will not be allowed to run HISCOD in SET ID and SOLs will not access CTM,HTM, CXFER and HXFER during period between HISCOD and HSCOD. Incremental patch for restriction of all transaction menus after HISCOD before date change is under consideration by Infosys
- Please educate the CPCs and SOLs in this regard