EPFO May Announce 9% Interest on Deposits on February 16

 Retirement fund body EPFO may announce 9 per cent interest rate on PF deposits for 2015-16 in its trustees' meet on February 16, higher than 8.75 per cent provided in previous two financial years.

"The 211th meeting of the Central Board of Trustees (CBT) has been scheduled to be held on February 16, 2016 in Chennai," an EPFO circular stated.

According to the circular, the issues to be placed for consideration of the CBT include rate of interest to be credited to EPFO members' account for the year 2015-16, cadre restructuring of the body and annual accounts in respect of EPF Scheme 1952, EPS 1995 and EDLI Scheme 1976 for the year 2014-15.

Earlier, the Employees' Provident Fund Organisation's (EPFO) advisory body had recommended 8.95 per cent rate of interest for the current fiscal which is higher than 8.75 per cent provided in 2013-14 and 2015-16.

According to EPFO income projections worked out in September, providing 9 per cent interest on PF will result in a deficit of Rs 100 crore.

"We are expecting that there will be a surplus of Rs 100 crore on providing 9 per cent rate of interest on PF deposits when EPFO will work out the latest estimates. FAIC can change its recommendation in the next meeting and suggest 9 per cent interest rate for 2015-16," a CBT and FAIC member P J Banasure had told PTI earlier.

The proposal has to be endorsed by the Central Board of Trustees (CBT) before the Finance Ministry notifies it.

However, there has been indications from the Finance Ministry that it will slash interest rate on small savings like public provident fund in view of the rate cut by Reserve Bank of India.

The EPFO provides rate of interest from the earning on investments of formal sector workers' funds without any assistance from the government.

Thus, the workers' representative are of the view that if there is no deficit on providing 9 per cent rate of interest for the current fiscal, then government should not have any issue with it.

Outcome of meeting dated 2nd Feb regarding 7th CPC implementation

Outcome of meeting dated 2nd Feb regarding 7th CPC implementation

Associations may still push for pay hike demand through Dept.
"If a representation was made by a Staff Association before the 7th Central Pay Commission and the Commission after due diligence has not accepted the demand made there in, the same matter normally not be considered at the stage. 

"However, if departments consider that the issues are of such nature that they require consideration at this stage also, then they may give their comments with full justifications to the IC," said the minutes of the of first meeting of the IC. 

While a number of ministries/departments have sent their comments and nominated their Nodal Officers, the comments received from some ministries are "simply in the nature of forwarding" the representations of the staff associations without their comments. 

The recommendations when implemented would have bearing on remuneration of 47 lakh central government employees and 52 lakh pensioners. Subject to acceptance by the government, the recommendations will take effect from January 1, 2016. .. 

Click here for the full minutes of the meeting

 

Outcome of meeting dated 2nd Feb regarding 7th CPC implementation

Associations may still push for pay hike demand through Dept."If a representation was made by a Staff Association before the 7th Central Pay Commission and the Commission after due diligence has not accepted the demand made there in, the same matter normally not be considered at the stage. 

"However, if departments consider that the issues are of such nature that they require consideration at this stage also, then they may give their comments with full justifications to the IC," said the minutes of the of first meeting of the IC. 

While a number of ministries/departments have sent their comments and nominated their Nodal Officers, the comments received from some ministries are "simply in the nature of forwarding" the representations of the staff associations without their comments. 

The recommendations when implemented would have bearing on remuneration of 47 lakh central government employees and 52 lakh pensioners. Subject to acceptance by the government, the recommendations will take effect from January 1, 2016. .. 

SBI Chief's Tough Questions to Telecom Minister Ravi Shankar Prasad

It is not easy for the head of a public sector firm to quiz a cabinet minister on a public platform. But some PSU chiefs like Arundhati Bhattacharya, India's most powerful woman, know how to speak their mind.

The chairperson of State Bank of India (SBI), who was awarded the Transformational Business Leader of the Year at NDTV's Indian of the Year, had some hard-hitting questions for IT and Communications Minister Ravi Shankar Prasad at the event. The minister welcomed the questions - saying "feel free to ask any question to dispel the misconception that PSU people don't have that liberty". (Watch)

After accepting the award from the minister, she had a humble suggestion for him - India should consider an alternative model for auctioning spectrum to telecom players where the spectrum is linked to the amount of money telecom firms are willing to commit to building the infrastructure in the country. "There are countries we have visited where the infrastructure is very good. They keep the licence fee very low but hand out spectrum only to firms that commit the highest spend in infrastructure," she suggested. "This way the revenue does not initially go to the government, but by way of infrastructure, its helps boost economic growth," she said.

Ravi Shankar Prasad disagreed with her, saying that the Supreme Court has mandated the government to auction natural resources and that there isn't enough competition for this model to work. But Bhattacharya stuck to her stand, saying this "beauty parade" model of awarding spectrum was also akin to an auction and one that would hugely help boost infrastructure.

The other question the SBI chief asked the telecom minister was as a common person - Where are call rates headed? The minister was non-committal in his response. "The market will determine," he said.

 

Don’t waste your ATM transactions just to see your balance give only missed call

All banks started this. Know ur bank account balance by giving a missed call to below numbers…from your registered mobile number. Don’t waste your ATM transactions just to see your balance…

0. O B C Bank- 08067205757
1. Axis Bank – 09225892258
2. Andhra Bank – 09223011300
3. Allahabad Bank – 09224150150
4. Bank of Baroda – 09223011311
5. Bhartiya Mahila Bank – 09212438888
6. Dhanlaxmi Bank – 08067747700
7. IDBI Bank – 09212993399
8. Kotak Mahindra Bank – 18002740110
9. Syndicate Bank – 09664552255
10. Punjab National Bank -18001802222
11. ICICI Bank – 02230256767
12. HDFC Bank – 18002703333
13. Bank of India – 02233598548
14. Canara Bank – 09289292892
15. Central Bank of India – 09222250000
16. Karnataka Bank – 18004251445
17. Indian Bank – 09289592895
18. State Bank of India – Get the balance via IVR
1800112211 and 18004253800
19. Union Bank of India – 09223009292
20. UCO Bank – 09278792787
21. Vijaya Bank – 18002665555
22. Yes Bank – 09840909000
23. South Indian Bank- 09223008488
24. Indian Overseas Bank-04442220004

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One Rank One Pension (OROP) implementation tables issued

One Rank One Pension (OROP) implementation tables issued

The Government of India had taken the historic decision to implement OROP in November, 2015. This fulfilled the long standing demand of the Defence Forces personnel after 42 years and benefited over 18 lakh ex-servicemen and war widows. 

In pursuance of the order issued on 07/11/2015, detailedinstructions alongwith OROP Tables have been issued today. 
 

• The annual recurring financial implication on account of implementation of OROP at the current rate will be approximately Rs. 7500 crore. 
• The arrears from 01/07/2014 to 31/12/2015 would be approximately Rs. 10,900 crore. 

• 86 percent of the total expenditure on account of OROP will benefit the JCOs/ORs. 

• Payment of arrears and revision of pension under OROP is to be made by the Pension Disbursing Authorities in fourinstallments, except for family pensioners and pensioners in receipt of gallantry awards who will be paid arrears in one installment. 

• The total increase in the Defence Budget for pensions is estimated to go up from Rs. 54,000 crore (BE 2015-16) to around Rs. 65,000 crore (proposed BE 2016-17), thereby increasing the Defence Pension Outlay by about 20 percent. 
Source : Press Information Bureau

Bankers expect RBI to cut policy rate by 0.75% next fiscal

Bankers today said the Reserve Bank's status quo policy stance was on expected lines but expressed hope that the central bank would cut policy rate by up to 0.75 per cent during the course of next financial year. 

"The RBI policy announcement of a status quo was on expected lines. With the RBI 
clearly mentioning that inflation trajectory is evolving as per expectations there are reasons to believe that RBI will continue in an accommodative mode," SBI Chairperson Arundhati Bhattacharya said. 

According to HDFC BankBSE -0.54 % Chief Economist Abheek Barua: "The RBI is unlikely to go against the international trend of monetary easing and 0.25 per cent or possibly 0.50 per cent of policy rate cut continue to be our base-case scenario for 2016." 

It is expected most likely earliest date for easing, he said. 

RBI is scheduled to unveil first bi-monthly monetary policy for 2016-17 on April 5. 

The central bank today left the key policy rate unchanged but indicated at accommodative stance, saying with inflation moving closer to the target there would be more room for rate cut to support growth. 

The repo or short-term lending rate remains unchanged at 6.75 per cent and the reverse repo rate at 5.75 per cent. and the reverse repo rate at 5.75 per cent. 

On liquidity, Bhattacharya said there remains a concern with systemic liquidity deficit well in excess of the prescribed 1 per cent total deposits currently. 

"With revised Liquidity Coverage Ratio kicking in and deposit growth lagging, RBI may have to be proactive in managing the liquidity deficit through tools available at its disposal," she said. 

Asserting that policy announcement is in line with market expectations, ICICI Bank Managing Director Chanda Kochhar said the RBI has rightly indicated that it would watch the growth trends, the fiscal approach to be articulated in the budget and the factors impacting inflation in the coming months. 

Commenting on RBI monetary action, Yes Bank CEO Rana Kapoor said with CPI inflation poised to moderate to 5 per cent levels by end FY17 and government committed towards spurring investment led growth and maintaining high quality fiscal consolidation, incremental room for monetary accommodation will open up post the announcement of Budget. 

"I expect the RBI to play a complementary role and lower rates by 0.75 per cent in 2016," Kapoor said. 

It looks like the RBI will look at the Union Budget in February for signs of continued fiscal consolidation before further rate cuts, said Mihir Vora, Chief Investment Officer of Max Life Insurance. 

"We do not expect further rate cuts before the end of this financial year," Vora said. 

PSBs to have freedom to negotiate to create a better mix between compensation and Performance; Boards to decide on

ALL INDIA BANK OFFICERS’ ASSOCIATION
Circular Letter No.2/VI/2016 January 25, 2016
TO
ALL UNITS / STATE COMMITTEES
Dear comrades,
LOOKING IN THE MIRROR 
OWNERS ARE NEVER BENEVOLENT TO WORKFORCE
The industry level wage negotiations have successively established that uniformity in wages to the work force in the Industry. Smallest to largest, loss making bank to profit earning bank are placed at the same position. The uniformity in wages and service conditions is the fine fabric, which facilitated the bondage amongst the banking workforce. The "One for all and all for One" the adage suits to the achievements made in the Industry.
The Khandelwal Committee recommendations on wages, service conditions and welfare clearly stipulated that 
“PSBs to have freedom to negotiate to create a better mix between compensation and Performance; Boards to decide on 
bank-specific wage and compensation structure in relation to capacity to pay, profitability, productivity etc and within the
Government guidelines.Banks to consider variable Pay as major component of wages facilitating the discretion to go in 
for Cost to company CTC concept”.
In the earlier wage negotiations, there were attempts to bring these factors to play. Collective and sustained campaign against the recommendations had blunted the approach of the Owners and negotiators. These prescriptions are brought in a different form in the GYAN SANGAM Recommendations, which was held at Pune on Jan 2-3, 2015.
The then IBA Chairman, Mr. T.M.Bhasin submitted a report on the issues and progress made on the Recommendations of Working Group, under building a Robust People Strategy for PSBs lays down their clear intentions:
RECOMMENDATIONS
- Move from industry level to Bank level settlement agenda to be 
pursued
ACTION TAKEN STATUS
- 10th Bipartite settlement is reaching its finality and will be in force
upto 31.10.2017
PROPOSED 
- The Banks one year before the expiry of the settlement should 
initiate dialogue to move out of Industry level settlement and 
negotiate for productivity linked settlement on cost to company 
basis based on the paying capacity of each bank
RECOMMENDATIONS
- Commit to improve operational efficiency to significantly increase 
P/B through
- improve credit risk management capabilities
- shift to bottom line based targets
- leverage technology to reduce opex and improve productivity
- Develop capital light operating models
ACTION TAKEN STATUS
- Already Banks have robust risk management system for 
improving the management and operational efficiency. They 
have adopted bottom line target based approach for targeted top 
line growth. Work is in progress to leverage4 technology to 
reduce the operational cost, improve productivity as sell as to 
improve customer satisfaction and convenience.
PROPOSED 
- Banks are advised to deliberate the initiatives at the Board level 
committees and formulate Board approved policies for effective 
execution.
RECOMMENDATIONS
- Rapid re orientation of small PSUs.
- Re orient portfolio
- Restructure or consolidate
- Price appropriately for risk across all products / segments
ACTION TAKEN STATUS
- Individual Banks should deliberate at the Board level and 
recommended to DFS. 
- Risk based pricing has been introduced.
PROPOSED
-Implemented and will be further fine tuned
The LIC wage notification has already been released by the Government. There is a departure from the time tested approach that the pattern of settlement and % of increase offered in our Industry are more or less followed in other financial sector branches too.
When the ink has not dried of the present wage revision with some of the issues of hospitalisation scheme hanging in fire of serving as well as Retirees and Record Note on Retirees issues not addressed at all, how come the owners are becoming so benevolent is a million dollar question.
The notification of the Government is to be read, before setting the plan for the next wage negotiations. When RBI pressure mounts up to cleanse the balance sheet by March 2017, can the owners be benevolent to workers in this country ?
LET US CAUTIOUSLY PURSUE THE ISSUES as the hidden agenda of the Government is aiming at putting an end to the Industry Level Settlement and put in place the capacity to pay as well as give a final shape to the Cost to Company concept partially brought into stay in the current wage revision.
Yours comradely,
/S.NAGARAJAN/ 
GENERAL SECRETARY