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......... NFPE & GDS (NFPE) filed a case in Supreme Court praying : Implementation of 1977 judgement and declare GDS are civil servants & scrap the GDS (Conduct & Engagement) Rules 2011 as they are invalid and unconstitutional .... Supreme Court directed the case to Delhi High Court .. first hearing was on 13-01-2014 and pleased to serve notice to Govt. & Department .... next hearing on 07-05-2014 ......

Wednesday, July 23, 2014


Dear Comrades,

Red salute to all .... for the the programme on 16-07-2014 made a grand success. 

The reports revealed that the first phase of struggle programme "One day dharna infront of all Divisional Offices" has been observed by 95% of the divisions formed for AIPEU GDS (NFPE) in the Circles. Many parts of the Circles, it was a thundering success with the participation of large number of GDS & members of  NFPE Unions.

Let us organize and mobilize for the second phase of programme on 
"One day mass dharna in front of Regional Offices & Circle Offices" 
in all the Circles  focusing the legitimate and genuine demands of GDS to the new Govt. and the Department.

We have started first and has to march ahead with series of programmes till the demands reached in our favour.

Join hands with 
(An Associate Member of National Federation of Postal Employees)

Only Union which can safeguard the interests of GDS
struggle along with NFPE and affiliated unions.
Struggle with unity & unity with struggle
United we stand, divided we fall
We are united & we conquer together
Let us march together


                                                            Central Headquarters
1st floor, North Avenue Post Office Building, New Delhi-110 001.
Circular No. 17                                                                                                                  23-07-2014
           1.   General Secretaries, State C O Cs
           2.   National Secretariat Members.
           3.   Mahila Committee Members
           4.   Chief Executives of all affiliated organisations.

Dear Comrades,
               National Secretariat of  the Confederation of  Central Govt. Employees & Workers was held on 17th July, 2014 at New Delhi under the presidentship of Com.K.K.N.Kutty.  Com.S.K.Vyasji, Advisor was also present.
               The meeting held detailed chapter-wise discussion on the memorandum submitted to 7th CPC by the JCM National Council, Staff side.  The following decisions are taken.
1.     It is decided to submit a detailed memorandum by Confederation to 7th CPC before 31-07-2014 on common demands of the Central Govt. Employees incorporating all the acceptable suggestions / additions / alterations put forward by the rank and file membership and also leaders at State / CHQ level.
2.     In the maiden Budget of  Modi Government  none of the major demands of the  Central Govt. Employees such as DA merger, Interim relief, inclusion of Gramin Dak Sevaks under 7th CPC, compassionate appointment etc. are considered.  National Secretariat is of the considered opinion that submitting memorandum and interim memorandum to 7th CPC alone will not solve the problems of Central Government employees.  Educating the employees and Creating mass sanction of entire employees behind the demands is a must.  Hence,  it is decided to organise phased agitational programmes for settlement of confederation charter of demands.
3.     As it is indicated that AIRF leadership has expressed its willingness for a joint programme of action on common demands, the National Secretariat decided not to declare the Confederation’s nationwide phased programme of action, for the time being and wait for the outcome of the joint meeting being arranged by AIRF leadership.  National Secretariat authorised the Headquarters Office Bearers to declare the  phased  programme of action later on at an appropriate time.
4.     National Secretariat adopted a resolution on the continued attack by TMC hooligans on the working class of West Bengal and decided to organize   “West Bengal Solidarity Day ”  on 27-08-2014 throughout the country.  Copy of the resolution is appended.  All District / State COCs and affiliated organisations are requested to organise the programme throughout the country, in a befitting manner.
                                                                            Yours sincerely,
                                                                             Secretary General.

ON 27-08-2014

               The National Secretariat meeting of the Confederation of Central Government employees & Workers held at New Delhi on 17th July, 2014 expresses serious concern on the continuing severe attacks and intimidations on the people and working class including Central Government Employees of West Bengal by the Trinamool Congress (TMC) led goons and anti-social elements for last 37 months since May 2011.  During this period more than 157 left parties and Trade Union activists were killed and the number is increasing every day.  Thousands are physically attacked and injured with police administration aiding and abetting such attacks and onslaughts.  Even after declaration of the election results on 16th May 2014 such attacks and intimidation have been continuing in full steam and 12 comrades including two women were brutally murdered.  Several thousands are ousted from their areas of work and residence.  More than 15000 comrades and activists have been implicated in false cases and many of them were even jailed for months together having been booked on non-bailable cases.  Molestation and rape of women by TMC hoodlums have become almost a frequent happenings in the state.  Latest has been the brutal rape of one Anganwadi Worker by TMC miscreants at Nadia District on 7th July 2014 and it is the same district where TMC MP had given open threat to get women raped by his men a few days before such dastardly incident of rape.  The police has been actively patronising such attacks.  After declaration of the election result, intensity of such attack has increased targeting the working people both in towns and rural areas.
               Democratic right of holding meetings, rallies etc. are being sought to be denied.  Refusal of permission by police administration to hold public meeting, even hall meetings, and using mike throughout the state at the instigation of TMC has become almost a regular affair.
               During last strike of 12th & 13th February 2014 TMC elements with a handful of employees raised anti-strike slogans and threatened the striking employees in Aykar Bhawan and G.S.I. HQ on both the days of strike.  However they could not break the strike.  Our comrades avoided the provocation. 
               During previous one day strike called by Confederation and also during two days strike called by Central TUs, attacks were launched by TMC hooligans at Barrackpore, Kalyani, Contai, Tamluk and few other places where striking Postal comrades were manhandled.  In a TSO of Barrackpore the Sub Postmaster was made to wear a garland of shoe and abused.  The same was propagated through electronic media in order to defame not only that particular comrade but also all strikers.  Botanical Survey of India employees are also under constant threat by TMC hooligans led by one Minister of West Bengal Government for last three years.  The Comrades who were manhandled during strike could not submit any FIR as they were afraid of being arrested by Police.  This is the order of the day in West Bengal; the victims of attack are being arrested and those who attacked are set free.
               Our Comrades specifically Gramin Dak Sevaks were compelled to leave their houses as they are supporters of left forces and carrying red flag of their union.  Attacks were made in the Conferences of Postal Union and Pensioners Associations in various places including Kolkata.  The displaced comrades could not attend offices and taking leave.  Few of them had to face disciplinary action for continuing on leave for more than 180 days leave.
               Administration specially in Postal Department taking advantage of this political situation are harassing and issuing charge sheets against NFPE comrades.  The appellate authority also reviews the punishment to enhance it.  Two comrades were awarded compulsory retirement.  Another comrade was also rewarded with same punishment after Rule 14 proceedings.  Those three cases were for launching demonstration.
               Attempts are being taken to change union by way of intimation and threats by the supporters of TMC.  In spite of it most of the new recruits are enrolling themselves in our unions due to sustained efforts taken by our Comrades.  The TMC Party leaders are intervening in the internal affairs of the Postal administration to get our organizers transferred.  The common employees specially lady employees are being transferred to inconvenient places and after putting them in inconvenience the transfer order is being reversed if the employee joins unions supporting TMC.
               Comrades all over the state are fighting for redressal.  But the same is not enough as situation is worsening day by day. 


               National Secretariat of the Confederation while condemning such Government sponsored hooliganism in West Bengal, expresses full support and solidarity with the struggle of the people and working class and demands upon the State Government in West Bengal to put a stop to such attacks and onslaughts.  Confederation calls upon the entire Central Government Employees of our country to organize solidarity action and campaign against the ongoing brutalities by the fascist humpen-led TMC regime on the democratic people and working class of West Bengal.
               Confederation National Secretariat further calls upon all District/State units and also affiliated organisations to observe “WEST BENGAL SOLIDARITY DAY” on 27th August 2014, throughout the country.

K.K.N. Kutty                                                           M. Krishnan,
National President,                                               Secretary General.
Confederation.                                                         Confederation.


Lok Sabha Speaker Sumitra Mahajan had a word of advice for Telecom Minister Ravi Shankar Prasad. Taking note of the number of questions that MPs had for the Minister, especially about postal services and post offices, she told the Minister, “A lot of people want to raise questions on the issues. You should pay more attention to the postal department.”

The Minister on his part announced that the government had decided to open 80 Gramin Dak Sewa Post Offices and 80 sub post offices in the country under Rural Business and Access to Postal Network scheme.

The Prime Minister spent about one-and-a half–hours on the postal department:
Proper digital connectivity of all post offices in the country is top priority for the Government, Telecom Minister Ravi Shankar Prasad told the Lok Sabha here on Monday.

Replying to questions related to his Ministry, Prasad said the Prime Minister was personally monitoring a host of departments and postal services were one of them.

“The Prime Minister spent about one-and-a half–hours on the postal department and has given suggestions, which will be considered,” he said, in reply to a query by Biju Janata Dal’s Tathagata Satapathy on the status of the banking licence applied for by the postal department.Prasad said there was need for reforms in postal reforms as also upgradation of Grameen Dak Ghar Services, catering to the rural population.

Monday, July 21, 2014


Gramin Dak Sevaks are not regular Govt. Employees not eligible for PF, Pension Gratuity

Gramin Dak Sevaks are not regular Govt. Employees not eligible for PF, Pension Gratuity: Govt said in Lok Sabha in reply of undermentioned Lok Unstarred Question:-


ANSWERED ON 14.07.2014

Will the Minister of COMMUNICATIONS AND INFORMATION TECHNOLOGY be pleased to state:-
(a) whether the Gramin Dak Sewaks are not eligible for normal facilities like Provident Fund, Pension, Gratuity etc. like the other postmen in the country;

(b) if so, the details thereof and the reasons therefor; and

(c) the corrective steps taken/being taken by the Government in this regard?


(a) No, Madam, They are not eligible.

(b) Gramin Dak Sevaks are not regular govt. employees. They are part time workers and are governed by a separate set of Conduct and Engagement Rules. They do not form part of the regular civil service. They are engaged for only 3-5 hours daily work. It is mandatory for them to have an independent source of livelihood before being engaged as Gramin Dak Sewak. Hon’ble Supreme Court in the case of Union of India and Others vs. Kameshwar Prasad 1998 SCC (L&S) page 447 held that P&T Extra Departmental Agent (C&S) Rules, 1964 are a complete code governing service, conduct and disciplinary proceedings against Extra Departmental Agents [now called Gramin Dak Sevaks]. On discharge from service on attaining the age of 65 years or on death, Gramin Dak Sevaks [GDS] are paid Ex-Gratia Gratuity and Severance Amount as approved for them by the Cabinet.

The Ex-gratia Gratuity is paid at the rate of half months basic Time Related Continuity Allowance [TRCA] drawn immediately before discharge of service for each completed year of service subject to a maximum of Rs. 60000 or 16.5 months basic TRCA last drawn whichever is less. The minimum service prescribed for this is 10 years. In addition, Severance Amount is paid at the rate of Rs. 1500 for every completed year of service subject to a maximum of Rs. 60000. The Government has already introduced Service Discharge Benefit Scheme in lieu of severance amount scheme effective from 01.04.2011 for the benefit of Gramin Dak Sevaks on the basis of the New Pension Scheme (NPS), specifically NPS Lite Scheme launched by the Pension Fund Regulatory and Development Authority (PFRDA). Under this scheme, the Government as well as Gramin Dak Sevaks concerned now contributes @ Rs. 200/- per month.

(c) Does not arise in view of reply to (b) above.



As RBI opens floodgates, get ready for a Railway Bank, or an Airtel Bank:

Suddenly, we have to view the idea of what it means to be a bank differently. On Thursday (17 July), the Reserve Bank of India put out draft guidelines for the setting up of two new types of banks – payment banks and small banks – and the guidelines are such that we could see a 100 new “banks” over the next five years.

That’s assuming, of course, the RBI does not play dog-in-the-manger and routinely blackballs all applicants it does not consider to be blue blooded.
In the last two decades, the RBI has handed out only 12 private banking licences (including one converted from cooperative banking, Development Credit Bank). Some lost their way and got merged (Bank of Punjab, Timesbank, Centurion Bank, Global Trust Bank), but the survivors are effectively indistinguishable from the others. (What, for example, is the difference between HDFC Bank, UTI Bank, ICICI Bank,  IndusInd Bank, Yes Bank, or Kotak Mahindra?). They all essentially have the same business model – heavy use of technology (ATMs, internet), high service charges, an urban and semi-urban orientation, strong treasury operations, a judicious mix of low-cost and wholesale deposits, et al. Effectively, they created the new idea of the bank – less stodgy than the public sector ones, but essentially exclusive bankers to the better off sections of the urban and semi-urban classes, and operating on high margins.
The addition of two more universal banking licensees three months ago - IDFC and Bandhan – will not necessarily make traditional and new age Indian banking more inclusive. IDFC essentially wants to become a universal bank like the rest and reduce its dependency on infrastructure lending, while Bandhan wants to upgrade from being an inclusive non-bank financier to a proper bank, albeit offering a larger raft of services to its core small borrower constituency.
India needs more banks, differentiated banks, cheaper banks. And the RBI's idea of small banks and payment banks could conceivably threaten the comfy oligopoly among existing big banks.
Small banks are intended to lend to the currently under-banked or under-served constituencies (farmers, unorganised sector, SMEs) in a limited geographical area. Payments banks are simply deposit-taking institutions with no lending operations. They will be “normal” banks as far as depositors are concerned, but account limits (as defined in the draft rules, which could change) cannot exceed Rs 1 lakh per customer. The difference is these banks cannot lend. They have to keep all their money either with the RBI (as cash reserve ratio) or with the government (by investing in bonds/instruments) with up to a year’s tenure left. They can also keep some cash in their vaults to meet expected customer requirements. Payments banks are thus effectively 80 percent lenders to the one borrower who can’t default: the government. So they are safe for depositors.
What these two new categories of “differentiated banks” will do is open up banking to multiple categories of promoters as they have low entry barriers (a start-up capital of only Rs 100 crore): for example, every telecom company that now needs a bank interface to facilitate small payments can, conceivably, set up its own payment bank. Airtel struggles to popularise its Airtel Money payment system. Right now banks allow transfers to Airtel Money accounts (for onward payment of bills) in chunks of Rs 1,500, which means constant need for replenishments. Vodafone has mPesa. Both Airtel and Vodafone – not to speak of Idea or other companies - can set up basic banking operations as payment banks. They could potentially take the whole business of bill payments and other such services away from banks.
Point of comparison: Airtel has around 210 million subscribers, Vodafone 170 million. State Bank of India has around 220 million customers. Potentially, Airtel has the potential to serve as many customers with basic deposit banking as State Bank of India.
Assuming the promoters of Airtel pass the RBI’s fit-and-proper text for starting a payment bank, it could attract a substantial chunk of the dormant savings account balances from traditional banks – the low-cost CASA (current account, savings account) money that is just lying around, earning banks a huge margin. Most banks pay nothing on current accounts and just 4 percent on savings accounts
An Airtel Bank, if it comes to be, would have other advantages. It would need a starting capital of only around Rs 100 crore, and would need nothing more than an internet presence to start and run banking activities. The RBI guidelines specifically allow for internet-based banks.
Secondly, since an Airtel Bank (or an Idea Bank or Vodafone Bank) would invest primarily in government paper of maturities below one year, it can offer higher rates for savings accounts. Interest rates on government paper (91-day to 364-day T-Bills) currently hover around 8.6 percent. Assuming an intermediation cost of even 1-1.25 percent (which is not improbable for an asset-light payment bank with minimal staff and largely driven by technology), an Airtel Bank could offer upto 6.5-7 percent interest on its accounts. Attractive enough for young people with small balances and low long-term investment requirements.
Idle money could thus shift from nationalised banks and private sector banks to an Airtel Bank – even though this will be an additional account. (It is inconceivable that anyone would shift entirely to a Vodafone Bank from SBI, but people will move a lot of billing and transaction funds to such accounts.)
Thirdly, the payment bank option would be attractive to a lot of non-bank financial institutions dealing with small debits and credits. Gold loan companies, for example, may find it useful to float payment banks since typically gold loans are for small-ticket sizes below Rs 1 lakh. More than 60 percent of gold loans fall in this category. A gold lender thus could take the metal as collateral in his NBFC and credit the proceeds to the payment bank and run a moderately profitable banking operation. Manappuram Finance, Muthoot Finance could be interested in either running payment or small banks.
Fourth, it is not inconceivable to see any utility company – say LPG sellers – also starting payment banks if the government shifts to direct cash transfers for payment of subsidies. The subsidised populations run into millions, and it is not a stretch to imagine that an Indian Oil could offer a payment bank to all its LPG customers in urban and rural areas.
Fifth, small banks, meant to cater to a couple of districts and low-value customers such as farmers and small businesses, could allow large companies selling in rural areas (fertiliser and pesticide companies, for example) to set up a small banking operation. Payments of fertiliser subsidies could then go through these banks, and so can other government payments like old age pensions.
The Indian Railways, too, could conceivably run their own payment banks.
Even today’s big banks may see virtue in running a payment bank subsidiary with much lower costs to penetrate newer areas and access low-value customer accounts.

The possibilities are enormous. But one thing is clear. The old hegemony and monopoly of the universal banks is likely to be challenged by the new payment banks and small banks. Five years from now, with a 100 new “differentiated banks” coming into existence, the easy money, high margin days of the SBIs and HDFC Banks may be coming to an end.

Healthcare pie: Rs 5,000 for a bureaucrat or politician; Rs 180 for villager

NEW DELHI: When it comes to healthcare, some are more equal than others for the government. Under the Central Government Health Scheme (CGHS) which covers central government employees, including serving and retired babus, current and ex-members of Parliament and the judiciary, the annual per capita expenditure is more than Rs 5,000. In contrast, the National Rural Health Mission (NRHM), which caters to the rural masses, spends just Rs 180 per head. 

The CGHS is financed mainly through the Centre's tax revenues. Though beneficiaries do contribute a share of their wages towards premium, ranging from Rs 600 to Rs 6,000 a year depending on their pay scale, this accounts for just about 5 per cent of the total expenditure. The government shells out the remaining 95 per cent. 

As of 2012-13, CGHS had 10.3 lakh card holders with a beneficiary base of 33.6 lakh (including family members) and spent more than Rs 1,600 crore to cover them. Almost 40 per cent of the cardholders are in Delhi and exhaust 60 per cent of the CGHS budget, followed by 8 per cent in Kolkata who consume about 4 per cent of the CGHS budget. 

No cash limit for CGHS cardholders

Critics point out that the presence of an exclusive scheme like CGHS to fulfil the health needs of the country's decision-makers and their families could be one reason why there is so little enthusiasm or urgency in the government to curb rising healthcare costs.

While most publicly funded health coverage schemes, including the Rashtriya Swasthya Bima Yojana (Rs 30,000 per family per year) or Andhra Pradesh's Rajiv Aarogyasri (about Rs 2 lakh per family per year) and Tamil Nadu's Kalaignar scheme (Rs 1 lakh over four years per family) have a limit on the expenses they will cover, CGHS has no such limits.

The Employee State Insurance Scheme (ESIS), meant for workers of all establishments employing more than 10 people, has no cash limit either, but the per capita expenditure on its beneficiaries is just Rs 379. The ESIS covers 5.6 crore people, including workers and their families. CGHS and ESIS are the only insurance schemes that provide comprehensive healthcare coverage, including outpatient care, preventive/wellness care and hospitalization.

A Planning Commission report of January 2011 titled "A Critical Assessment of the Existing Health Insurance Models in India" noted that ESIS was probably managing to keep costs down because it relied heavily on its own facilities in most cases. CGHS, on the other hand, provided 100 per cent inpatient care through a private network of hospitals and was driven by high-end tertiary care provided largely by big corporate hospitals.

The CGHS also had the highest hospitalization rate among the state-funded insurance schemes (22 per 1,000 beneficiaries). Though this was lower than that of private insurance (64 per 1,000 beneficiaries), the average hospitalization expenditure per beneficiary was the highest under CGHS, higher than even the commercial insurers. And though central government-funded hospitals, including premier ones like AIIMS, are available to beneficiaries, a majority them chose corporate hospitals.

"In CGHS, a few million people are being given huge benefits. One of the big drivers of cost under CGHS is prescription drugs," pointed out a public health expert. "While the central government promotes generic drugs for all government facilities and schemes, a look at the list of drugs procured by CGHS reveals that for its own employees it buys mostly branded generics and patented drugs, which are very expensive and drive up average health expenditure." 

There is also a total lack of transparency on how the CGHS operates. "The CGHS collects information on coverage, infrastructure and utilization of its dispensaries but it does not publish the same. It neither reports financial nor any other type of performance publicly," pointed out the Planning Commission report. Unlike other publicly funded insurance schemes, even the claims ratio is not available for CGHS.

Source : The Times of India, 20.07.2014(BBSR)