8% Dearness Allowance for Central staff declared

“The Union Cabinet today decided to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 1.1.2010 representing an increase of 8% over the existing rate of 27% of the Basic Pay/Pension, to compensate for price rise. The increase is in accordance with the accepted formula, which is based on the recommendations of the Sixth Central Pay Commission. The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs.6969.36 crore per annum and Rs.8131.20 crore in the financial year 2010-2011 (for a period of 14 months from January, 2010 to February, 2011).”

RELEASE OF ADDITIONAL INSTALMENT OF DEARNESS ALLOWANCE TO CENTRAL GOVERNMENT EMPLOYEES AND DEARNESS RELIEF TO PENSIONERS, DUE FROM 1.7.2009

The Cabinet has decided to release an additional instalment of Dearness Allowance (DA) to Central government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2009 representing an increase of 5% over the existing rate of 22% of the Basic Pay/Pension, to compensate for price rise. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission. The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs.4355.35 crore in a full year and Rs.2903.55 crore in the financial year 2009-2010 (for a period of 8 months from July, 2009 to February, 2010).

Source: PIB Press Release

Govt orders for payment of Second Instalment of 6CPC arrears

The long awaited orders for payment of Second Installment of 6CPC Arrears has been issued by Department of Expenditure, Ministry of Finance in the Office memorandum F.No: 1/1/2008-IC dated 25.08.09.

It is stated in the said office memorandum that the 60% arrears may now be paid to Government Servants.

It is also stated that in the case of employees who joined in the Govt service after 01.01.2004, the second installment of arrears may be released only after individual application forms for registration to the New Pension Scheme have been obtained by the DDO/PAO from the concerned employee.

Download Office Memorandum F.No: 1/1/2008-IC dated 25.08.09 for 6CPC arrears to employees presently in service

From Oct 15, only 5 ‘other bank ATM’ transactions a month

Bank customers will soon realise the stark reality; there is no free lunch in the business of banking.

After allowing customers to enjoy free, no-holds-barred access to ATMs of all banks for over four months, banks have realised that such a facility should be restricted to prevent its “misuse”.

The restriction on free access to non-home bank ATMs will kick in from October 15, and bank customers are not going to like it one bit.

The Reserve Bank of India has acquiesced to the Indian Banks’ Association’s request to allow savings bank customers only five free transactions at non-home bank ATMs in a month.

Now, if a customer chooses to use a non-home bank ATM to withdraw cash or make balance enquiry more than five times a month, there will be a debit ranging from Rs 12 to Rs 20 from his/her savings bank account. This debit will go to reimburse the bank whose ATM has been used.

Savings bank customers will be subject to a withdrawal ceiling of Rs 10,000 a transaction at non-home bank ATMs.

Further, current account holders will not be allowed to use ATMs as they enjoy electronic payment facilities such as Real Time Gross Settlement and National Electronic Funds Transfer.

“We have agreed to the IBA’s proposal which limits the number of transactions at non-home bank ATMs,” said Ms Alpana Killawala, Chief General Manager, Department of Communication, RBI.

Mr K. Unnikrishnan, Deputy Chief Executive, IBA, emphasised that individual banks have the discretion to offer their customers free-of-cost ATM access at other bank ATMs. “The broad contours of ATM transactions at other bank ATMs have been drawn up as per RBI guidelines. If individual banks want to continue to offer unrestricted free ATM access to their customers at other bank ATMs, then the discretion is entirely theirs.”

A study by the Association shows that the average cash withdrawal per transaction from ATMs is Rs 3,500 and that 90 per cent of the transactions were under Rs 10,000. Free access to customers at other bank ATMs has led to a sharp spurt in the number of transactions, small cash withdrawals (of even Rs 100), frequent balance enquiries, ATMs often running out of cash as some banks allowed cash withdrawals up to Rs 75,000 in each transaction, and misuse of the facility by current account customers.

Source: BusinessLine

60% CPC Arrear(2nd Installment) : Preconditions

The Ministry of Expenditure has issued an Office Memo. regarding updation of profiles to post 01.01.2004 Central Govt employees. As reported by NSDL, the nodal agency for New Pension Scheme, a large number of cases pertaining to post 01.01.2004 entrants are yet to fill up the Registration Form for NPS.

The Expenditure dept has asked to complete the exercise latest by 31st of this month.

The process is to be completed before release of 2nd installment of arrear for which separate order is to be issued. Under no circumstances, the release of 2nd installment is to be done in the case of post 01.01.2004 Central Govt entrants before satisfying the precondition of registration.

With this Office Memo, it looks certain that the Government is going to release the second installment of arrear shortly.

Official Circular – http://finmin.nic.in/6cpc/NPS6thcpc.pdf

Source: Staff Corner

Announcement of 60% arrears of 6th Pay Commission expected shortly

The information given below is only opinion. Please dont take it for authenticated one.

There ia a good chance of the announcement regarding the second instalment (60% arrears) of sixth Pay Commission for Central Government employees during the Independence Day (15th August 2009) Speech by our Honorable Prime Minister Mr. Manmohan Singh.