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Tuesday, 29 November 2011

25.11.11 MARCH TO PARLIAMENT - A GRAND SUCCESS


பாராளுமன்றம்  நோக்கி  வரலாற்றுப் பேரணி - மகத்தான வெற்றி !

கடந்த 25.11.2011  அன்று பாராளுமன்றம் அருகில் உள்ள புது டெல்லி  ஜந்தர் மந்தர் பகுதியில் கடும் குளிரையும் பொருட்படுத்தாது காலையில் இருந்தே  நாடெங்கிலும்  இருந்து பல்லாயிரக் கணக்கான மத்திய , மாநில , BSNL   உள்ளிட்ட பல்வேறு  பொது துறை , ரயில்வே , பாதுகாப்பு துறை ஊழியர்கள் மற்றும் கல்லூரி , பள்ளி  ஆசிரியர்கள் , அவரவர்கள் சங்கப் பதாகைகளுடன் உரத்த கோஷங்கள்  இட்டவாறே கூட ஆரம்பித்தனர். காலை 10.00 மணியளவில் தலைவர்கள் மேடைக்கு வந்ததும்  விண்ணதிரும்  கோஷங்களால்  அந்தப் பகுதியே கிடு கிடுத்தது . காலை 10.30  மணியளவில் அந்தப் பகுதியே மனிதத் தலைகளால் நிரம்பி வழிந்தது.   

அனைத்து பகுதி ஊழியர் சங்கங்களில் இருந்தும் பிரதம மந்திரியிடம் நேரில் அளித்திட  வேண்டி PFRDA BILL  க்கு எதிரான கையெழுத்து இயக்கம் நடத்தி அந்த கையெழுத்து பிரதிகளை  மூட்டை மூட்டையாக எடுத்து வந்து மேடைப் பகுதியை நிறைத்தனர். அந்தப் பேரணியில் நமது சம்மேளன மாபொதுச் செயலர் தோழர்.  M. கிருஷ்ணன் உள்ளிட்ட  பல்வேறு சங்கங்களின் தலைவர்கள் மற்றும் பாராளுமன்ற  உறுப்பினர்கள் பேரணியை வாழ்த்தி உரையாற்றினர். 

தமிழக அஞ்சல் மூன்றாம் பிரிவு சங்கத்தில் இருந்து மாநிலச் செயலர்  தோழர் .
J.R , அகில இந்திய உதவிப் பொதுச் செயலரும் மாநிலப் பொருளருமான தோழர். A. வீரமணி, மாநிலச் சங்க நிர்வாகிகள்  தோழர் T. நேதாஜி சுபாஷ் ,  தோழர். K.  நாராயணன் , தோழர். A. மனோகரன் ,  தோழர். N.V. மோகன் ராஜ் ,  தோழர். R. குமார் மற்றும்  மாநில மகிளா கமிட்டி கன்வீனர் தோழியர். 
R. மணிமேகலை    ஆகியோர் தலைமையில்  பல்வேறு கோட்டங்களில்   இருந்து  ஏராளமான  தோழர்களும் தோழியர்களும் பேரணியில் கலந்துகொண்டு மாநிலச் சங்கப் பதாகை முன்னிறுத்தி விண்ணதிர கோஷமிட்டனர். 

தமிழகத்திலிருந்து அண்ணா சாலை ,வட சென்னை,  தென் சென்னை,  தாம்பரம், அம்பத்தூர் ,  காஞ்சிபுரம் , வேலூர் , நாமக்கல் , சேலம் கிழக்கு , ஈரோடு, ஊட்டி , தென்காசி , மதுரை , திண்டுக்கல்,  புதுக்கோட்டை, கும்பகோணம் , மயிலாடுதுறை , பாபநாசம் , விருத்தாசலம்  உள்ளிட்ட கிளைகளில் இருந்து 150 க்கும்  மேற்பட்ட தோழர்களும் தோழியர்களும் பேரணியில் கலந்துகொண்டு சிறப்பித்தது தமிழக அஞ்சல் மூன்றுக்கு பெருமை சேர்த்தது . 

வட சென்னை கோட்டச் செயலர்  தோழர். செல்வம் அவர்கள்  கிட்டத்தட்ட 2000 க்கும் அதிகமான பேரிடம் பெற்ற  கையெழுத்து  இயக்க மகஜரை பேரணி துவக்கத்தில் மாநிலச் செயலரிடம் அளிக்க,அதை மாநிலச் செயலர் ,   நம் மா பொதுச் செயலர் தோழர் கிருஷ்ணன் அவர்களிடம்  அளித்தார்  என்பது குறிப்பிடத் தகுந்தது ஆகும்.    

 தமிழகத்தில் இருந்து வந்திருந்த அஞ்சல் மூன்று தோழர்களுக்கு அவர்கள் தங்கிட வசதியாக , நமது அகில இந்திய சங்க அலுவலகத்தின் அருகில் , சாதிப்பூர்  மெட்ரோ ரயில் நிலையம் எதிரே  தனியாக இரண்டு நாட்களுக்கு ஒரு மண்டபம்  நமது பொதுச் செயலர் தோழர் KVS  அவர்களால் ஏற்பாடு செய்யப் பட்டிருந்தது, நமது தோழர்களுக்கு  மிகுந்த உதவியாக இருந்தது.  நமது பொதுச் செயலர் அவர்களுக்கு  நம்  மாநிலச்  சங்கத்தின் சார்பில் நெஞ்சார்ந்த நன்றி .

பேரணியின் முடிவில்   மத்திய அரசு ஊழியர் கூட்டமைப்பின்  கன்வீனர்  தோழர் S.K. வியாஸ் தலைமையில் ரயில்வே , பாதுகாப்பு, BSNL   உள்ளிட்ட 7  உறுப்பினர்   அடங்கிய  குழு  தோழர். பாசுதேவ் ஆச்சார்யா M.P.,  தோழர் தபன் சென்  M.P. ஆகியோருடன் சென்று  பாரதப் பிரதமர் மாண்புமிகு மன் மோகன் சிங் அவர்களை சந்தித்தது.  பிரதம அமைச்சரிடம்  பென்ஷன் திட்டத்தை தனியார் வசம் விடுவதையும் , PFRDA BILL  பாராளுமன்றத்தில் கொண்டு வருவதையும் கைவிடவேண்டும் என்று கோரி  பல லட்சம் ஊழியரின் கையெழுத்து அடங்கிய மகஜரின் நகலையும் அவரிடம் ஒப்படைத்தது .  அந்த 
மகஜரின் நகலை கீழே உங்கள் பார்வைக்கு வைக்கிறோம். 

2004 ஆம் ஆண்டு முதல் நாம் நடத்திவரும்  தொடர் போராட்டங்களால் தான் 2011 வரை  கூட  மத்திய அரசால் புதிய பென்ஷன் திட்டத்தை சட்டமாக்கிட பாராளு மன்றத்தில்  ஒப்புதல் பெற முடியவில்லை என்பது உண்மை ஆகும் . நம்  பணி  தொடரும் .  போராட்டமும் தான் . தொழிற்  சங்க வரலாற்றில்  இறுதிப் போராட்டம் என்று எதுவுமே இல்லை .
ஒன்று படுவோம் !                                            போராடுவோம் ! 
போராடுவோம் !                                                வெற்றி பெறுவோம் !      
வெற்றி             பெறும்வரை                      போராடுவோம். !!                                                   
இறுதி வெற்றி நமதே !!!
OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
To
The Hon'ble Prime Minister of India,
New Delhi

  Sub: Request for Scrapping of PFRDA பில்
 Sir, 
We submit this Petition to bring to your kind notice and through your good office to the attention of the Honorable Parliamentarians of our country certain aspects of the re-introduced PFRDA bill, which will have adverse impact on the exchequer in general and on the prevailing service conditions of the Civil Servants.  We pray that our submissions in this regard may please be caused to be considered earnestly and the implication of the provisions of the bill critically analyzed and examined and take decision to kindly withdraw the Bill from the Parliament.
We submit the following for your critical and objective analysis of the Bill : 
1.      The concept of old age security for civil servant in the form of pension has a very ancient origin dating back as early as third century BC, the quantum being half of the wages on  completion of forty years blemish less  service to the king.
2.      In the last century, one of the measures taken by the colonial rulers to attract talented personnel to the Royal service was the introduction of pension scheme for civil servants in  1920.  The Royal commission through its various recommendations improved the scheme and the 1935 Government of India Act provided it statutory strength. 
3.      The land mark judgment of the Supreme Court in D .S. Nakara and others Vs. Union of India (AIR-1983-SC-130)(applicable to the Central and State Government employees, teachers,  and           all stake holders of pension system) conceptualized pension stating that pension is neither a bounty nor a grace bestowed by the sweet will of the employer, but a payment for the past services rendered.  It was construed as a right step towards socio-economic justice and a concrete assurance to the effect that the employee in his old age is not left in the lurch.
 4.      The fifth Central Pay Commission which was set up by the GOI in 1993 to go into the wage structure and pension scheme of the Central Government employees referring to the Judgment of the Supreme Court cited, observed (Para 127.6) that 
"pension is the statutory, inalienable and legally enforceable right earned by the civil servant by the sweat  of the brow and being so must be fixed, revised, modified and changed in the way not dissimilar to salary granted to serving employees." 
5.      The guiding principle adopted in determining of pay package of civil servants is to spread out  the wage compensation over a long period of time whereby wages paid out during the work  tenure is low in order to effect payment of pension on retirement. As such civil service pension  is rightly termed as deferred wage.  While in the organized private sector the employer is   required to contribute equal share to the Provident Fund of the employees, the Government neither contributes to the Provident Fund of the civil servants nor takes any pension  subscription from  him.
 6.      In an unwarranted intervention in the Statutory defined benefit  Pension system, the IMF in    their work paper (WP/01/125,(2001) propounded the creation of a pension fund by eliciting subscription   from the Wage earners at the earliest stage of their employment so as to fetch an annuity decent enough to sustain him at the old age. In fact it was a suggestion for a retrograde change over from the defined benefit pension scheme to a defined contributory system.   While suggesting so, they have categorically stated that India does not suffer demographic pressure experienced by major countries, for India's population beyond the age of 60 was about 7% in 2004 which rose to 8.6% in 2010 and is estimated at 13.7% in 2030 and 20% in 2050.
 7.      The New contributory pension scheme enunciated by the Government of India and adopted by most of the State Governments is covered by the PRFDA bill. The bill inter alia, envisages a social security scheme for all who desire to have an annuity at his old age which is voluntary and not mandatory.  However, in the case of Civil Servants, who are recruited to Government service after the prescribed cut -off date ( 1.1.2004 in GOI service) the scheme is mandatory in as much as the employee is bound to subscribe 10% of his emoluments to the Pension Fund and the Govt. being the employer would contributes equal amount.  No employee is entitled to opt out of the scheme.
           
8.      Despite the inability to bring in a valid enactment, the Central and all  State Governments other than those of West Bengal, Kerala and Tripura through illegal executive orders decided to impose the contributory pension system arbitrarily on the Central and State Government employees .While the Govt.  of India notification excluded the personnel in the armed forces and para-military establishments, the Governments of  the Left ruled States of West Bengal, Kerala and Tripura consciously continued with the existing defined benefit pension system. 
9.      The PRFDA Bill stipulates that there will not be any explicit or implicit assurance of the benefit except market based guarantee.  The subscriber is thus exposed to the following risks at the exit.
a)      If there is a major market shock, the subscriber to the New Pension scheme may end with no ability to purchase an annuity.
b)      Since annuity is and cannot be cost indexed, the real worth of the annuity might fall depending upon the inflationary pressure on the economy.
c)      As per the scheme, the subscriber is to make the choice of investment portfolio.  The Civil Servant being mostly uninformed in finance and investment related matters, he might end up in making wrong choices which would eventually rob him of the old age pension.
d)     The subscriber is perforce to contribute to the charges of the investment managers, whose priority often is as to how much profit they could make through investment of the huge corpus of pension fund in the volatile share market . 
10.  The pension fund created by the employees' subscription and the employers' contribution which directly flows from the exchequer ( which is nothing but tax revenue of the Govt.) is  made available for the stock market operations which is not only unethical but also blatant diversion of public fund for private  profit, both  Foreign and Indian capitalists.  
11.  In the case of Civil Servants recruited after the cut-off  date, the new scheme replaces the existing much better "defined benefit" pension scheme. In the process, the Government has created two classes of civil servants viz. the one with a defined benefit pension scheme and the other with the contributory pension scheme in which the employee is to part with 10% of his emoluments to become entitled for an old age social security subject to  the vagaries of share market permits.  Since in both the cases, the pay, allowances, perks, and other benefits, privileges, duties and responsibilities are the same it amounts to wanton discrimination of one against another which is not sustainable in law, rather violative of the existing constitutional provisions.

12.  The wage structure presently designed for those who are recruited prior to the cut- off date and after is on the same premise and is depressed to enable the Govt. to meet the pension liability in future.  By imposing the new contributory pension scheme on the employees who are recruited after the cut- off date the Govt. not only denies the statutory defined pension  benefit to them but also compel them to contribute for earning an undefined annuity, which must be characterized as highly discriminatory. 

13.  Those who are covered by the contributory pension scheme will become entitled for an annuity, a portion of the accumulated contribution is able to purchase, basing upon the accretion to the fund from the investment.  There is, however, no guaranteed minimum amount of pension for those who are covered by the new scheme, whereas the civil servants covered by the existing scheme do get a defined and guaranteed minimum pension and on his death his family members (wife, widowed and unmarred daughters and unemployed sons below the age of 25) become entitled for family pension.  The discrimination factor is thus compounded. 

14.  The  PFRDA Bill when  enacted, it is rightly feared, will empower the Government to alter or even deny the present employees and pensioners the statutory defined pension benefit as has been done in the case of those who are appointed after the cut-off date.

15.   It is stated that the prime objective of the introduction of the contributory pension scheme is to substantially reduce the outflow on account of pension liability.  The major pension liability of Government is accounted for by Armed Defence personnel.  They are however excluded from the purview of the contributory pension scheme.  The personnel in the Para Military forces are also excluded from the ambit of the new Scheme.  While doing so, (no doubt to attract the people to serve in the armed forces for security of the Nation) the Govt. is bound to meet the pension liability from the consolidated fund of India.  The argument advanced by the Govt. to cover the Civil Servants in the ambit of the new Pension scheme has been found to be unsustainable by the study commissioned by the 6th CPC.  Shri S. Chidambaram, Actuary, in his report, (Annexure to "A study of Terminal benefit of Central Government employees by Dt. K. Gayatri, Centre for Economic Studies and policy, Institute for Social and Economic change, Nagarbhavi, Bangalore) has pointed out that the Government liability on account of contributory pension scheme would in effect increase for a period spanning for the next 34 years from the existing Rs. 14,284 Cr. To  Rs. 57,088 Cr. ( 2004-2038) and is likely to taper off only from 2038 onwards.  The exchequer is bound to have an increased outflow for the next 34 years and will be called upon to bear the actual pension liability of defence personnel and personnel of para military forces, besides making the contribution to the Pension fund of the Civil Servants recruited after the cut off date.  The specious plea that the exchequer is bound to gain due to the contributory pension scheme is therefore not borne from facts.
16.   Of the present pension liability of the Govt. of India, which  in 2004-05 was 0.51% of the GDP, 0.26% is accounted for by the Defence( which is 50% of the total pension liability.) The study report of the Centre for Economic Studies has concluded that the pension liability as a percentage to GDP which is just 0.5% presently is likely to decline given the growth rate of Indian economy.
 17.   Since most of the State Governments have chosen to switch over to "contributory pension scheme" , in fairness ( from the Study conducted by the Centre for Economic Studies and policy) it can be concluded that the pension liability of all the State Governments are bound to increase to three times of what it is today by 2038. 

18.  The first version of the PFRDA Bill was placed before the Parliament by the NDA Government in 2003.  The 6th CPC set up the Committee to go into the financial implication on account of the increasing number of pensioners and suggest alternative funding methodology in 2006.  The said Committee came to the inescapable conclusion (report submitted in 2007) that "the existing systems of pension are increasingly becoming complicated after the introduction of the New Pension scheme" and warned that "caution has to be exercised in initiating any further reforms"  In the light of the conclusion of the said study report which revealed the fact of serious escalation in the  pension payment outflow,  the rationale of the re-introduction of the PFRDA bill in 2011 covering the civil servants is incomprehensible.  Undoubtedly, the Bill when enacted into law will through the existing pensioners to a financially insecure future and the existing workers to the vagaries of the stock market. We, therefore, earnestly pray to your good-self to bring back all the civil servants including teachers irrespective of the date of entry into Government service as also those irregularly appointed within the ambit of the existing statutory defined pension benefit scheme.  
 We may, in fine, quoting the concluding paragraph (Page 76 of the report of the Centre for Economic Studies and Policy – Institute for Social and Economic Change) of the Committee set up by the 6th CPC 
"Mainly given the fact that the future liability although may be large in terms of absolute size is not likely to last very long and does not constitute an alarmingly big share of the GDP which is also on the decline. It appears that pursuing the existing 'Pay as you go' to meet the liability will be an ideal solution."
appeal you, for the detailed reasons adduced in the foregoing paragraphs, that the new pension scheme enshrined in the PFRDA Bill  may be withdrawn from the Parliament both in the interest of the Civil Servants and the exchequer.
Withregards,
Sd/---
M.Krishnan
Secretary General NFPE


Source : http://aipeup3tn.blogspot.com

Wednesday, 23 November 2011

BHARTIYA POST Editorial - December 2011

ON THE SADDLE AGAIN

No one can dare to dispute the fact today that there is great frustration amongst the Postal employees, due to the protracted delay and lethargic disposal of agreed demands in strike charter of July 2011. When we issued strike notice, the whole mechanism of Postal service had activated and worked. After called off the strike in the wake of definite assurances by the head of the department, again the red tapism and usual lethargy in disposing the genuine agreed demands is revived.

Secretary, Department of Posts & Member had agreed during the negotiations to reduce the cash norms to GDS from Rs. 20000/- to Rs. 10000/-. It was agreed for causing orders protecting full wages for GDS in cases of reduction of workload. It was assured that the casual labourers engaged prior to 1993 will be provided with new pay scales within a month and for others it will be considered subsequently. There are many such items, if you go through the agreement, you could see. Whether any of them was brought in to action by issue of orders?

The proposal of cadre review was mooted by us during 2008. Time frames have been fixed twice and the latest is before 30.10.2011. Two informal sittings were over. Thereafter, static silence is prevailing. When the Department initiated fifth cadre review for IPS officers now, will it not its duty to finalise the first cadre review for the poor Postal operative cadres. Will not the anger agony and anguish prevailing among the so called system administrators be felt by the powers?

It was the agreement that there will be no closure of RMS offices or post offices. This was reiterated more than thrice in all the recent three agreements. But the Chief PMG Maharashtra abolished two sections arbitrarily. The staff went on strike. When our leaders discussed with the Directorate, and in turn the senior officer telephoned the Chief PMG in the presence of them, he was replying that he will not restore and if need be he may be transferred from the circle. The Directorate replied what to do? If they could not control the circle head, what is the need for higher bodies and agreements and all those? Are they really not having teeth or is it an enactment of drama already decided to play to deceive us?

When there is an agreement that there will be no closure of Post offices and in case of inevitable circumstances simultaneous opening of post offices will be ensured, willfully, it is being denied by some PMGs for which there is no action or intervention from the Directorate. What prevented them to issue clear cut instructions on this score?

The Sub PM once punished with minor penalty is not entitled to work as SPM in whole career. No one shall be posted to one B/C class office as SPM more than once in whole career. All these orders are issued by vigilance section as preventive measures. Alright! Whereas the Chief PMG who involved in corruption and caught red handed by CBI is now reposted as Chief PMG, West Bengal with the same financial powers authorities and all privileges. No such yardsticks as applied to postmasters are smeared to such officers. Even though it was agreed to cancel both the vigilance orders on SPM postings, nothing is moving so far because they are poor postal Assistants and not the bureaucrats.


For the first time, based on stiff position of the Hon’ble Minister, the cluster policy for officers was introduced in the Postal service. Now they are seeking opinions among the same officers about the same cluster policy. For what? Just to dilute or withdraw the same in favour of them. We are not objecting? Nor least bothered? But why not the same spirit is not being extended in causing orders in the cases of agreed items in the strike charter?

Training centers are institutions which will motivate the trainees and refresh them. What is going on PTC Madurai? A lady officer who is a sadist and not having an inch of humanity and very notorious for her topsy turvy activities is posted and ruining the atmosphere? The Nazi regime of Hitler is revived in the PTC and the authorities to control the atrocities and highhandedness are remaining as silent spectators. While posting in charges for training centers, is it not the prerequisite to select polite, gentle and firm officers who could motivate the staff with kindness and advices. Whether the training centers can be improved by the sadists and egoistic characterized persons?


In many divisions, Circles, the departmental orders and instructions are grossly violated. Many new recruited officers never care the Rules and regulations and simply dictate their dictums. There is no check on them. There is no refresher training to them on human management and the criterion to adhere the Government of India orders with consecrated look. Their topsy turvy activities are not being controlled by the Circle heads.


Without minding the cost of expenditure and inconvenience to staff, one PMG is opening post offices on Sundays just for booking two or three speed post articles. The counter working hours have been enhanced to 10 to 11 hours of a day. We don’t know whether he knows the concept of Night post offices. He never calculates the loss incurred due to opening of POs, staff, wages, electricity etc. This is nothing but to appear in the press daily with some new announcements which are all not worthy and lead loss to the department.

There are very many similar to these episodes. As the social Audit Panel and also the Fifth Pay Commission right pointed out that the existence of Director posts are white elephants, it is nothing but creating two power centers in region and the sufferers and victims are the employees at large. This is an introspection of the events and shape of things that are required to be judged in the right perspective.

Never – the – less, we are trying our level best not to resort to direct action and settle the issues by talks unless such an action is forced upon us callously by the powers – that – be. The present situation is entirely undesirable and it cannot be allowed. There can be no justification for continued increase in the misery of the workers due to protraction in settlement of their demand! We should not be pushed into wall once again to restart and revive agitational programmes.

Will the authorities understand our feelings and act swiftly to avert further action?

LGO தேர்வு -நியாயம் கிடைத்தது

LGO தேர்வில் ஹிந்தியில் கேட்கப்பட்ட கேள்விகள் தவிர்த்து , மொத்த மதிப்பெண்கள் 76 என்ற விகிதத்தில் முடிவுகள் வர உள்ளது . தமிழக அஞ்சல் மூன்றின் முன்முயற்சியால் நமது அகில இந்திய சங்கங்கள் பெற்றுத் தந்த வரலாற்று நிகழ்வு இது .விரைவில் முடிவுகள் வெளிவர உள்ளன . -நியாயம் கிடைத்தது .நீதி நிலைத்தது. தமிழ் மாநில அஞ்சல் மூன்று பாராட்டுக்குரியது.

Saturday, 19 November 2011

Small Savings interest rates hiked- Ministry of Finance orders dt.11.11.2011


No. 6-1/2011-NS.II (Pt.)
Ministry of Finance
Department of Economic Affairs
(Budget Division)
--------------------------------------------------------------------------------------------
New Delhi, the 11th November, 2011.

OFFICE MEMORANDUM

Sub:  Decisions on the recommendations of the Committee for
          Comprehensive Review of National Small Savings Fund (NSSF).

The Thirteenth Finance Commission in its Report had, inter alia, recommended that all aspects of the design and administration of the NSSF be examined with the aim of bringing transparency, market linked rates and other much needed reforms to the scheme. As a follow up of this recommendation, the Government had constituted a Committee on 8th July, 2010, headed by Smt. Shyamala Gopinath, the then Deputy Governor, Reserve Bank of India for comprehensive review of NSSF. The terms of reference of the Committee included review of the existing parameters for the small saving schemes in operation and recommend mechanisms to make them more flexible and market linked; review of the existing terms of the loans extended from the NSSF to the Centre and States and recommend on the changes required in the arrangement of lending the net collection of small savings to Centre and States; review of other possible investment opportunities for the net collections from small savings and the repayment proceeds of NSSF loans extended to States and Centre; review of the administrative arrangement including the cost of operation; and review of the incentives offered on the small savings investments by the States.

2.            The Committee submitted its report to the Government on 7th June, 2011. Comments/views of Department of Posts, Department of Revenue, Department of Financial Services, Department of Expenditure and all State/Union Territory Governments were sought on the recommendations made by the Committee.

3.            The recommendations of the Committee have been considered in detail, taking into account the views/comments received from other Departments, States/UTs and representations received from various agents’ associations and others. After detailed examination the following decisions have been taken:- 

Rationalisation of Schemes:

(i)            The maturity period for Monthly Income Scheme (MIS) and National Savings Certificate (NSC) will be reduced from 6 years to 5 years.

(ii)           A new NSC instrument, with maturity period of 10 years, would be introduced.
(iii)          Kisan Vikas Patras (KVPs) will be discontinued.
(iv)         The annual ceiling on investment under Public Provident Fund (PPF) Scheme will be increased  from Rs. 70,000 to Rs..1 lakh.
(v)          Interest on loans obtained from PPF will be increased to 2% p.a.from existing 1% p.a. 
(vi)         Liquidity of Post Office Time Deposit (POTD) – 1, 2, 3 & 5 years – will be improved by allowing pre-mature withdrawal at a rate of interest 1% less than the time deposits of comparable maturity. For pre-mature withdrawals between 6-12 months of investment, Post Office Savings Account (POSA) rate of interest will be paid.

Interest Rates on Small Savings Instruments :

(i)            The rate of interest paid under Post Office Savings Account will be increased from 3.5% to 4% p.a.
(ii)        The rate of interest on small savings schemes will be aligned with G-Sec rates of similar maturity, with a spread of 25 basis points (bps) with two exceptions. The spread on 10 year NSC (new instrument) will be 50 bps and on Senior Citizens Savings Scheme 100 bps. The interest rates for every financial year will be notified before 1st April of that year.
(iii)          Assuming the date of implementation of the recommendations of the Committee as 1stDecember, 2011  the rate of interest on various small savings schemes for current financial year on the basis of the interest compounding/payment built in the schemes, will be as given below:-

Instrument
Current Rate (%)
Proposed Rate (%)
Savings Deposit
3.50
4.0
1 year Time Deposit
6.25
7.7
2 year Time Deposit
6.50
7.8
3 year Time Deposit
7.25
8.0
5 year Time Deposit
7.50
8.3
5 year Recurring Deposit
7.50
8.0
5-year SCSS
9.00
9.0
5 year MIS
8.00 (6 year MIS)
8.2
5 year NSC
8.00 (6 year NSC)
8.4
10 year NSC
New Instrument
8.7
PPF
8.00
8.6


(iv)          Payment of 5% bonus on maturity of MIS will be discontinued.

Commission to Agents

(i)         Payment of commission on PPF schemes (1%) and Senior Citizens Savings Scheme (0.5%) will be discontinued.
(ii)        Agency commission under all other schemes (except MPKBY agents) will be reduced from existing 1% to 0.5%.
(iii)       Commission at existing rate of 4% will continue for Mahila Pradhan Kshetriya Bachat Yojana (MPKBY) agents.
(iv)       Incentives, if any, paid by the State/UT Governments will be reduced from the commission paid by the Central Government.
Investments from NSSF :

(i)         The minimum share of States in net small savings collections in a year, for investment in State Governments Securities, will be reduced from 80% to 50%. The remaining amount will be invested in Central Government securities or lent to other willing States or in securities issued by infrastructure companies/agencies, wholly owned by Central Government.
(ii)        Yearly repayment of NSSF loans made by Centre and States, will be reinvested in Central and State Government securities in the ratio of 50:50.
(iii)       The period of repayment of NSSF loans by Centre and States will be reduced to 10 years, with no moratorium.
(iv)         For the current financial year the prevailing interest rate of 9.5% will continue. From 1st April, 2012 revised interest rate will be notified.
(iv)       Half yearly payment of interest by the Centre and the States will be introduced.
(v)        Interest rate on existing investments from NSSF in Central Government securities till 2006-07 will be re-set at 9% and on those from 2007-08 till 2010-11 will be re-set at 9.5%.

Operational Issues of NSSF
(i)            A Monitoring Group drawn from Ministry of Finance, Reserve Bank of India, Department of Posts, State Bank of India, other select banks and select State Governments will be set up to resolve various operational issues like reducing the time lag between collection and investment, etc. 
4.            Necessary notifications, including those requiring amendments to rules of various small saving schemes and National Small Savings Fund (Custody & Investment) Rules, 2001 will be notified separately. The above decisions will take effect from the dates to be specified in the notifications.
5.            This has the approval of Finance Minister.

(Shaktikanta Das)
Addl. Secretary to the Govt. of India