Return on PPF will be 7.8%, Sukanya Samriddhi and Senior Citizens Scheme 8.3% from 1st July 2017

The government has lowered interest rate on small saving schemes like PPF, Kisan Vikas Patra and Sukanya Samriddhi by 0.1 per cent for the July-September quarter, a move that will prompt banks to lower deposit rates.

The rates have been lowered by 0.1 per cent across the board compared to the April-June quarter. However, interest on savings deposits has been retained at 4 per cent annually.

Since April last year, interest rates of all small saving schemes have been recalibrated on a quarterly basis.

A finance ministry notification said investments in the public provident fund (PPF) scheme will fetch lower annual rate of 7.8 per cent. Kisan Vikas Patra (KVP) investments will yield 7.5 per cent and mature in 115 months.

The one for girl child savings, Sukanya Samriddhi Account Scheme, will offer 8.3 per cent annually, from 8.4 per cent at present.

The investment on 5-year Senior Citizens Savings Scheme will yield 8.3 per cent. The interest rate on the senior citizens scheme is paid quarterly.

Term deposits of 1-5 years will fetch a lower 6.8-7.6 per cent that will be paid quarterly while the 5-year recurring deposit has been pegged lower at 7.1 per cent.

"On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis," the ministry said while notifying the rates for second quarter of financial year 2017-18.

While announcing the quarterly setting of interest rates, the ministry had said the rates of small saving schemes would be linked to government bond yields.

The move is expected to prompt banks to lower the deposit rate in line with the small savings rate as offered by the government.

Nationalised Banks Founder Name and years*

Nationalised Banks Founder Name and years*

💰Bank Name : *State Bank of India*
Founder Name : British Government ( In form of Imperial Bank of India )
Established Year : July 1, 1955

💰Bank Name : *State Bank of Bikaner and Jaipur*
Founder Name : Maharaja Ganga Singh of Bikaner and Ramnath Anandilal Podar
Established Year : 1963

💰Bank Name : *State Bank of Hyderabad*
Founder Name : Nawab Amer Usman Ali Khan
Established Year : August 8 , 1941

💰Bank Name : *State Bank of Mysore*
Founder Name : Mokshagundam Visvesvaraya
Established Year : October 2, 1913

💰Bank Name : *State Bank of Travancore*
Founder Name : C.P. Ramaswamy Iyer ( Diwan of Travancore )
Established Year : September 12, 1945

💰Bank Name : *Allahabad Bank*
Founder Name : By group of British citizens
Establish Year : April 24, 1865

💰Bank Name : *Bank of Baroda*
Founder Name : Maharaja Sayajirao Gaekwad
Establish Year : July 20, 1908

💰Bank Name : *Bank of India*
Founder Name : Sassoon J David
Established Year : September 7, 1906

💰Bank Name : *Canara Bank*
Founder Name : Ammembal Subba Rao Pai
Established Year : July 1, 1906

💰Bank Name : *Bank of Maharashtra*
Founder Name : V. G. Kale and D. K. Sathe
Established Year : September 16, 1935

💰Bank Name : *Andhra Bank*
Founder Name : Dr.Bhogaraju Pattabhi Sitaramayya
Established Year : November 20, 1923

💰Bank Name : *Central Bank of India*
Founder Name : Sir Sohrabji Pokhchanawalla
Established Year : December 21, 1911

💰Bank Name : *Corporation Bank*
Founder Name : Khan Bahadur Haji Abdullah Haji Kasim Saheb Bahadur
Established Year : March 12, 1906

💰Bank Name : *Indian Bank*
Founder Name : Annamalai Chettiar and Ramaswami Chettiar
Established Year : March 5, 1907

💰Bank Name : *Indian Overseas Bank*
Founder Name : M.Chidambaram Chettyar
Established Year : February 10, 1937

💰Bank Name : *Punjab National Bank*
Founder Name : Lala Lajpat Rai
Established Year : 1895

💰Bank Name : *Dena Bank*
Founder Name : Devkaran Nanjee
Established Year : May 26, 1938

💰Bank Name : *Oriental Bank of Commerce*
Founder Name : Rai Bahadur Lala Sohan Lal
Established Year : February 19, 1943

💰Bank Name : *Punjab and Sind Bank*
Founder Name : Bhai Vir Singh, Sir Sunder Singh Majitha and Sardar Tarlochan Singh
Established Year : June 24, 1908

💰Bank Name : *Syndicate Bank*
Founder Name : Upendra Ananth Pai , Vaman Kudva and Dr.T M A Pai
Established Year : 1925

💰Bank Name : *United Bank of India*
Founder Name : Narendra Chandra Dutta
Established Year : 1914

💰Bank Name : *Union Bank of India*
Founder Name :Seth Sitaram Potdar under European Mgmnt.... inaugurated by Mahatma Gandhi.
Established Year : November 11, 1919

💰Bank Name : *UCO Bank*
Founder Name : Ghanshyam Das Birla
Established Year : January 6, 1943

💰Bank Name : *Vijaya Bank*
Founder Name : Attavar Balakrishna Shetty
Established Year b: October 23, 1931

💰Bank Name : *Bharatiya Mahila Bank*
Founder Name : Indian Government
Established Year : November 19, 2013

💰Bank Name : *IDBI Bank*
Founder Name : Indian Government
Established Year : July, 1964.

In the name of recover the loss arising out of NPAs, banks are increasing bank charges, fees, penalties etc thereby passing the burden on customers of public sector banks with malafide and bad motive of diverting them towards private banks.

The present era is an era of vicious circle for bank employees on many issues. On the one hand they are overburdened with work and responsibilities with comparatively less salary and looking forward towards Bipartite Settlement for substantial increase in salary. On the other hand, the very existence of banks in which they are working is at stake as Government is planning to merge banks. The young employees gain knowledge of merger through media and material available on net but people like me have experienced merger, have been part of agitation from 1993 to 1997 in case of ENBI -PNB merger, so we have practical knowledge. Likewise, experience of employees of erstwhile associate bank employees subsequent to merger with SBI is worth to find out what merger brings to employees. This practical knowledge is necessary to decide -whether to support Merger as blind supporter of Government or oppose it ?

Then there are issues related with NPA. In spite of direction by Hon'ble Supreme Court to disclose the name of wilful defaulters, the Government has not released these names. As a bank employee, is it not your right to know as to who is responsible for such big NPAs which has threatened the very survival of your dearest bank ? Is it not your right to know what action has been taken against those who were involved in sanctioning of these big loans on the same line Disciplinary Action is taken against aam bank officers and Employees? Why Loans given to big defaulters like Vijay Malya are being written off or else restructured by reducing rate of interest and enhancing repayment period ? Why Government is reluctant to declare wilful default as Criminal Offence ?

On the one hand, Government is showing its inability to meet capital requirements of public sector banks for business expansion, on the other hand, it is freely giving licenses to big business houses to open private banks, small banks, payment banks etc. Not only this, in order to recover the loss arising out of NPAs, banks are increasing bank charges, fees, penalties etc thereby passing the burden on customers of public sector banks with malafide and bad motive of diverting them towards private banks.

There is another vicious circle. One the one hand we need strong unions with leaders of fighting capacities to take on the challenges. On the other hand, we have weaker unions differing with each other in terms of ideologies headed by retired and tired leaders and involved in inter union rivalries.

So far we have been condemning and criticising these leaders for their surrendering and compromising attitude which is solely responsible for our present position. We are absolutely right when we condemn these leaders. But now we are at a stage to decide whether opposing leaders and non participating in agitational programmes and strikes may bring desired results ? What is more essential opposing retired and tired leaders or Government? In my considered opinion, we need to rethink and review our stand.

ARTICLE WRITTEN BY KAMALESH CHATURVEDI SIR

ALL INDIA BANK STRIKE 22ND AUGUST AND 2 DAYS STRIKE IN OCT/NOV 2017

UFBU Meeting held today at Mumbai. Decided to urge upon IBA to expedite wage revision & resolve mandate issue. Also decided to launch agitation against reforms, mergers and our other issues. 19th July Rally. 22nd Aug.strike. 15th Sept. Morcha in Delhi. 2 days strike in Oct/Nov. Cir follows. 
SK Bandlish.
Convener UFBU
Franco 
AIBOC

HRA will be paid at the rate of 24 per cent, 16 per cent and 8 per cent of new basic pay for central govt employee

The Cabinet today approved the recommendation of the 7th pay commission on allowances including HRA or House Rent Allowance with 34 modifications which will be applicable with effect from July 1, 2017. The move is likely to benefit 34 lakh central government employees and 14 lakh defence personnel. The revised allowances are likely to cost the government an additional Rs. 30,748.23 crore per annum. The 7th pay commission examined 197 allowances and recommended abolition of 53 allowances and subsuming 37 in others.

Here are 10 things to know:

1. 1>HRA will be paid at the rate of 24 per cent, 16 per cent and 8 per cent of new basic pay.
2. 2>Also, the government said HRA will not be less than Rs. 5,400, Rs. 3,600 and Rs. 1,800, which are calculated at 30, 20 and 10 per cent of minimum pay of Rs. 18,000. 
3. 3>The revised minimum HRA will benefit 7.5 lakh Central government employees, the government said.
4. 4>The 7th pay commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent when DA or dearness allowance crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when it crosses 100 per cent. Now, the government decided to revise HRA rates when DA crosses 25 per cent and 50 per cent respectively.
5. 5>For pensioners, the medical allowances have been doubled to Rs. 1,000, compared to Rs. 500 earlier. Constant attendance allowance on 100 per cent disablement increased from Rs. 4,500 to Rs. 6,750.
6. 6>Meanwhile, the government has also increased the nursing allowance paid to nurses and ministerial staffs of hospitals to Rs. 7,200 per month from Rs. 4,800 earlier.
7. 7>Operation theatre allowance increased from Rs. 360 per month to Rs. 540 per month and hospital patient care allowance (HPCA)/ patient care allowance (PCA) revised from Rs. 2,070-Rs. 2,100 to Rs. 4,100-Rs. 5,300 per month.
8. 8>The Cabinet modified the 7th Pay Commission Recommendations and now the HPCA and CPA benefits to continue for ministerial staff.
9. 9>Siachen allowances have been increased from Rs. 14,000 per month to Rs. 30,000 for soldiers and for officers the same will be Rs. 42,500 for extreme risk and hardship from Rs. 21,000 earlier.
10. 10>Economists say that disbursement of 7th pay commission allowances is expected to give a further boost to consumer spending and thus the broader economy.

RBI Includes Complaints Against Electronic Banking Services Under Ombudsman Scheme

The Reserve Bank of India (RBI) has allowed consumers to lodge complaints against banks for non-adherence to norms related to electronic banking services, including those provided on mobile phones, under the banking ombudsman scheme, its cost-free dispute resolution mechanism.

The central bank has also allowed customers to file complaints against banks for deficiencies arising out of sale of third party products such as insurance policies and mutual fund schemes sold by banks.

The banking ombudsman has now been powered to pass an award of Rs20 lakh, as against the earlier threshold of Rs10 lakh
The scope of the scheme, introduced in 1995, has been expanded.

The banking ombudsman has now been powered to pass an award of Rs20 lakh, as against the earlier threshold of Rs10 lakh. The ombudsman can also give a consumer up to Rs1 lakh as compensation for loss of time, expenses incurred and mental anguish suffered during fighting the case.

According to the annual report on the banking ombudsman scheme for 2015-16 (July-June), 15 offices of banking ombudsman received 102,894 cases, a jump of 21% over the 2016-17 fiscal year.

Currently, there are 20 offices of banking ombudsman, according to the information available on central bank’s website.

VIJAYA AND DENA BANK WILL MERGE WITH CANARA BANK IN THE MONTH OF SEPTEMBER 2017

The government is looking to create a bigger bank in the next round of consolidation by getting state-run Canara BankBSE -3.18 % to take over smaller lenders Vijaya BankBSE -1.45 % and Dena BankBSE -2.20 %. “Discussions are on between banks. There is a possibility that first Vijaya and Dena merge, before being taken over by Canara Bank,” a senior government official told ET. 

Canara Bank is the fourth-biggest bank by market capitalisation behind State Bank of India, Bank of Baroda and Punjab National Bank. The government is likely to push the proposal forward only after the monsoon session of Parliament gets over in August. 

“It is going to be a politically active session with the GST (goods and services tax) rollout and the presidential election. Besides, it will also give time for banks to work out the possible issues that may arise,” said the official. For the same reason, plans to merge some lenders such as Punjab and Sind Bank have been dropped. 

The government is looking at a three-tier structure for state-run lenders with around 10-12 banks as against the existing 21. “There have to be at least three banks of the size of the country’s largest lender SBI. And then we can have mid-sized banks and a few specialised banks catering to particular sectors,” said the official cited above. 

Earlier this month, finance minister Arun Jaitley had said after reviewing the performance of state-run banks that the government was “actively working” toward consolidation of public sector banks but declined to provide details, saying this was a price-sensitive information.. 

Other banks such as Indian Bank, Indian Overseas Bank and Syndicate Bank have also been asked to look at possible options for consolidation among themselves, said another finance ministry official. Dena Bank is among five public sector banks that have been put under the Reserve Bank of India’s prompt corrective action (PCA) programme which imposes various restrictions, including the sanction of fresh loans and dividend distribution. 

The other four are IDBI, Bank of Maharashtra, Central Bank of India and Uco Bank. Dena Bank posted a loss of Rs 575.26 crore for the March quarter while Vijaya Bank reported a profit of Rs 204 crore for the same period. Canara Bank is among the top five banks in the country with a network of around 7,000 branches. 

 

Atal Pension Yojana (APY) for Social Security in India

Friends again I re-post this article  with request of my few viewer and readers of my blogs

Atal Pension Yojana

“As our young population ages, it is also going to be pension-less. Encouraged by the success of the Pradhan Mantri Jan Dhan Yojana, I propose to work towards creating a universal social security system for all Indians that will ensure that no Indian citizen will have to worry about illness, accidents or penury in old age”, said Finance Minister Jaitley in his 2015-16 Union Budget speech. In keeping with this ideal, a National Pension Scheme, the Atal Pension Yojana was effected from May, 2015. The scheme intends to bring pension benefits to people of the unorganised sector so that they can enjoy social security with a minimum contribution per month. People who work in the private sector or are employed in occupations that do not give them the benefit of pension can apply for this scheme. They can opt for a fixed pension of INR 1,000 or 2,000 or 3,000 or 4,000 or 5,000 on attaining the age of 60. The amount of contribution and the individual’s age will determine the pension. Upon the contributor’s death, the spouse of the contributor can claim the pension and after the spouse’s death the nominee will be returned the corpus accrued. The amount collected under the scheme is to be managed by Pension Funds Regulatory Authority of India (PFRDA) as per the investment pattern specified by the Government of India. Individual applicants will have no choice of pension funds or investment allocation.

Benefits of Atal Pension Yojana (APY)

The Atal Pension Scheme will bring security to ageing Indians while at the same time promote a culture of savings and investment among the lower and lower middle class sections of society. One of the greatest benefits of the scheme may be enjoyed by the poorer sections of society. The government of India has decided to contribute 50 percent of the user’s contribution or INR 1,000 a year (whichever is lower) for a period of five years. This contribution will, however, be enjoyed only by those who are not income tax payers and those who join the scheme before 31 December 2015.

Who is Eligible for Atal Pension Yojana?

The Atal Pension Yojana (APY)  is open to all Indians between the age of 18 and 40. This allows an individual to contribute for at least 20 years before reaping the benefits of the scheme. Any bank account holder who is not a member of any statutory social security scheme can avail of the scheme. All existing members of the government’s ‘Swavalamban Yojana NPS Lite’ will automatically be migrated to the Atal Pension Yojana. It will now replace the Swavalamban scheme, which did not gain much popularity across the country.

How to Enroll for Atal Pension Scheme?

To sign up for the Atal Pension Yojana, an account holder must fill in an authorisation form and submit it to his/her bank. The form will require complete details including account number, spouse and nominee details, and authorisation for auto debit of contribution amount. Account holders signing up for the scheme need to ensure that sufficient balance is maintained in the account every month, failing to do so will attract a monthly fine of –

• INR 1 for monthly contribution up to INR 100
• INR 2 for monthly contribution between INR 101 and INR 500
• INR 5 for monthly contribution between INR 501 and INR 1,000
• INR 10 for monthly contribution beyond INR 1,001

If no payment is made towards the scheme

• for six months, the holder’s account will be frozen
• for 12 months, the holder’s account will be deactivated
• for 24 months, the holder’s account will be closed

For those who does not have a bank account: A person needs to open a bank account first by submitting the KYC document and Aadhar card. He/she is also required to submit the APY proposal form. Exiting the scheme: Under ordinary circumstances, an account holder who has enrolled for the Atal Pension Yojana will not be able to exit the scheme before the age of 60. Exiting the scheme is only possible in special circumstance such as in the event of the death of the beneficiary.

APY Application Form

The application form can be downloaded from  http://www.jansuraksha.gov.in/FORMS-APY.aspx. The forms are available in different languages – English, Hindi, Gujarati, Bangla, Kannada, Odia, Marathi, Telugu and Tamil. Indicative Contribution for Various Pension Options (in INR)

Entry Age	Years of Contribution	Monthly Pension INR 1000	Monthly Pension INR 2000	Monthly Pension INR 3000	Monthly Pension INR 4000	Monthly Pension INR 5000
18	42	42	84	126	168	210
19	41	46	92	138	183	228
20	40	50	100	150	198	248
21	39	54	108	162	215	269
22	38	59	117	177	234	292
23	37	64	127	192	254	318
24	36	70	139	208	277	346
25	35	76	151	226	301	376
26	34	82	164	246	327	409
27	33	90	178	268	356	446
28	32	97	194	292	388	485
29	31	106	212	318	423	529
30	30	116	231	347	462	577
31	29	126	252	379	504	630
32	28	138	276	414	551	689
33	27	151	302	453	602	752
34	26	165	330	495	659	824
35	25	181	362	543	722	902
36	24	198	396	594	792	990
37	23	218	436	654	870	1,087
38	22	240	480	720	957	1,196
39	21	264	528	792	1,054	1,318
40	20	291	582	873	1,164	1,454

*Data from Atal Pension Yojna brochure

Launch Across the Country

The Atal Pension Scheme and the other insurance schemes were launched on 9 May, 2015 simultaneously by Union and Chief Ministers. Prime Minister Narendra Modi launched the scheme from Kolkata. According to a statement by the Finance Ministry of India, as many as 30 lakh subscribers have registered themselves under APY as on June 30, 2016 and nearly 5,000 new subscribers are added every day.   Table of contribution levels, fixed monthly pension of Rs. 1,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana

Age of Joining	Years of Contribution	Indicative Monthly Contribution (in Rs.)	Monthly Pension to the subscribers and his spouse (in Rs.)	Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18	42	42	1000	1.7 Lakh
20	40	50	1000	1.7 Lakh
25	35	76	1000	1.7 Lakh
30	30	116	1000	1.7 Lakh
35	25	181	1000	1.7 Lakh
40	20	291	1000	1.7 Lakh

Table of contribution levels, fixed monthly pension of Rs. 2,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana

Age of Joining	Years of Contribution	Indicative Monthly Contribution (in Rs.)	Monthly Pension to the subscribers and his spouse (in Rs.)	Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18	42	84	2000	3.4 Lakh
20	40	100	2000	3.4 Lakh
25	35	151	2000	3.4 Lakh
30	30	231	2000	3.4 Lakh
35	25	362	2000	3.4 Lakh
40	20	581	2000	3.4 Lakh

Table of contribution levels, fixed monthly pension of Rs. 3,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana

Age of Joining	Years of Contribution	Indicative Monthly Contribution (in Rs.)	Monthly Pension to the subscribers and his spouse (in Rs.)	Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18	42	126	3000	5.1 Lakh
20	40	150	3000	5.1 Lakh
25	35	226	3000	5.1 Lakh
30	30	347	3000	5.1 Lakh
35	25	543	3000	5.1 Lakh
40	20	873	3000	5.1 Lakh

Table of contribution levels, fixed monthly pension of Rs. 4,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana

Age of Joining	Years of Contribution	Indicative Monthly Contribution (in Rs.)	Monthly Pension to the subscribers and his spouse (in Rs.)	Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18	42	168	4000	6.8 Lakh
20	40	198	4000	6.8 Lakh
25	35	301	4000	6.8 Lakh
30	30	462	4000	6.8 Lakh
35	25	722	4000	6.8 Lakh
40	20	1164	4000	6.8 Lakh

Table of contribution levels, fixed monthly pension of Rs. 5,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana

Age of Joining	Years of Contribution	Indicative Monthly Contribution (in Rs.)	Monthly Pension to the subscribers and his spouse (in Rs.)	Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18	42	210	5000	8.5 Lakh
20	40	248	5000	8.5 Lakh
25	35	367	5000	8.5 Lakh
30	30	577	5000	8.5 Lakh
35	25	902	5000	8.5 Lakh
40	20	1454	5000	8.5 Lakh

Recent Developments

• Government will extend the benefit of the APY via Post Offices all over the country so as to bring more people under its ambit. The implementation of the scheme through post offices is expected to be more helpful for the people in rural areas.
• In March 2016, the government amended the scheme’s provisions to give the subscriber’s spouse an option to continue contributing to the account for the balance period on premature death of the subscriber.
• The Government released Rs 100 crore towards its co-contribution for Atal Pension Yojana (APY) in 2015-16 fiscal.
• Also, as per the circular released by the Income Tax department, contributions to the Atal Pension Yojana (APY) are now eligible for the same tax benefits as the National Pension System (NPS). The tax benefits include an additional deduction of Rs 50,000 under section 80CCD(1) introduced in year 2015 Budget.
• To increase the outreach of Atal Pension Yojana (APY) among the prospective subscribers in the country, The Pension Fund Regulatory and Development Authority of India (PFRDA), on August 19, 2016, has integrated the APY module with the bank’s core banking system, allowing enrollments to happen through people’s saving accounts. It will not only make the process convenient, but a whole lot faster and hassle-free. The customers would not be required to submit physical forms to the bank from now on, and a web-based APY subscriber registration mode has been allowed for customers with net-banking accounts.

Withdrawal procedure from APY 
Upon completion of 60 years of age: 
After attaining the age of 60 years, you need to get in touch with your respective bank or post office and submit the request for drawing the pension. 
However, if in case of subscriber's death after 60 years, the same amount of monthly pension is payable to spouse (default nominee). Nominee will be eligible for return of pension wealth accumulated till age 60 of the subscriber  and spouse. 

Exit before the age of 60 Years: 
As per circular dated May 2, 2016 on PFRDA website, voluntary exit in APY is generally not permitted. However in case of exceptional circumstances such as terminal illness, or death of the subscriber it can be allowed. In case a subscriber, who has availed Government co-contribution under APY, chooses to voluntarily exit APY at a future date, he shall only be refunded the contributions made by him to APY, along the net actual accrued income earned on his contributions (after deducting the account maintenance charges). The Government co-contribution, and the accrued income earned on the Government co-contribution, shall not be returned to such subscribers.