Wednesday, December 07, 2016

Re-designation of the Post PMG /DPS and redeployment -reg

7th CPC: Finmin gets 2 months more to issue higher allowances notification

“The October-November month is the scheduled for issuing notification for the Finance Ministry, but the time was extended by 2 months because the cash crunch on account of demonetisation, which is taking time to get normality. Therefor,unless the banks can begin to function with a modicum of efficiency, the government will not issue notification on higher allowances to save demonetisation chaos,” the official said. He further said “the issue of increased financial activities after demonetisation compels the government to keep in abeyance to issue higher allowances notification for getting normalized the position and it is likely to issue from January next, after the the cash crunch will ease. However the government wants to issue the higher allowances notification speedily…in a time bound manner.” The committee on allowances head Finance Secretary Ashok Lavasa said in October, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.” The government constituted the committee on allowances in June headed by Finance Secretary Ashok Lavasa to examine the 7th Pay Commission recommendations on allowances, other than dearness allowance. “The committee has been asked to submit its report within four months and it was ready to submit its report in advance but the government intends to accept the report after December 30, deadline for depositing demonetised notes,” the official said. Existing allowances are now being paid to the central government employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

Change of date of holiday on account of Milad-Un-Nabi or Id-E-Milad during 2016 for all Central Government administrative offices located at Delhi/New Delhi.

To view, please Click Here

Monday, December 05, 2016

1st meeting of the National Anomaly Committee

The 1st meeting of the National Anomaly Committee was held on 01.12.2016 on the anomaly of calculation of the disability pension for Defence Forces Personnel as per the recommendations of the 7th CPC. The representative of the Armed Forces made a presentation in the meeting demanding that the recommendations of the 7th CPC to grand disability pension on a slab system if implemented will lead to an anomaly between the civilian side and the Defence Forces Personnel because the civilian side will continue to be governed under a percentage based system. 

After studying the presentation, the Staff Side of NC-JCM has suggested that the slab system will be beneficial to the lower Rank personnel and hence both the slab system and percentage system may be accepted by the Govt. on an optional basis, alternatively the slab amount recommended by 7th CPC can be increased to avoid the anomalous situation. Secretary (P) informed that the issue would be further studied in consultation with CGDA.

Economy in use of paper – Digitisation of publications to save on stationery and expenditure

Government of India
Ministry of Finance
(Department of Expenditure)

North Block, New Delhi
Dated the 30th November, 2016


Subject: Economy in use of paper – Digitisation of publications to save on    stationery and expenditure

Ministry of Finance has been issuing instructions from time to time on expenditure management, fiscal discipline and on the need for economy and rationalisation of Government expenditure. Instructions on use of judicious use of paper have been issued by this Department in the past and similar instructions are also contained in the Manual of Office Procedure published by Department of Administrative Reforms and Public Grievances.

2.Expenditure Management Commission has also recommended that publications should be digitised wherever possible, to save on stationery and expenditure. Considering that electronic publications (e-publications) are environment friendly, all Ministries / Departments may review the utilisation of their different publications and to start with e-publish some of their non-Statutory publications while considerably reducing use of paper e-publications would also serve as a good digital repository for posterity that can be accessed anywhere unlike manual publications.

3.All Ministries / Departments may issue suitable instructions in this regard in respect of organisations / entities and field organisations under their administrative control.

4.This issues with the approval of FS and Secretary Expenditure.

(N. Radhakrishnan)
Director (E. Coord)

Increasing number of women are now reporting cases of sexual harassment at workplace

Press Information Bureau
Government of India
Ministry of Women and Child Development

02-December-2016 14:53 IST 

Increasing number of women are now reporting cases of sexual harassment at workplace: Smt Maneka Sanjay Gandhi

Government of India has enacted the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and Criminal Law Amendment Act, 2013 with the objective to provide safe and secure workplace environment to women. As per the National Crime Records Bureau data, 57 and 119 cases of sexual harassment at workplace were reported under section 509 IPC in the year 2014 and 2015 respectively. This increase in number shows that more and more women are coming forward to seek police assistance in such cases and are not suffering in silence. For reasons behind sexual harassment of women at workplace socio-culture mindset which is an outcome of deeply rooted patriarchal social constructs is the major reason. 

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 mandates constitution of Internal Complaint Committee (ICC) in all workplace whether public or private. A woman has the right to submit her complaint directly to the Internal Complaints Committee so constituted. In case internal complaint committee is not constituted in any organisation than the complaint could be made to Local Complaints Committee constituted at district level. 

This information was given by the Minister of Women and Child Development, Smt Maneka Sanjay Gandhi in reply to a question in the Lok Sabha today.


Tuesday, November 29, 2016

Conduct of Limited Department Competitive Examination for promotion to the cadre of P.S. Group 'B' scheduled on 04th December, 2016

Directorate has now issued to instruction to Circles vide DE Section Letter No.A-34012/08/2016-DE dated 29th November,2016 to issue Admit Cards to the eligible candidates of the Examination scheduled on 04th December, 2016.

Best wishes to our members who are appearing for the above Examination. 

Hon'ble High Court of Kerala vacated the interim order of CAT Ernakulam Bench

It has been informed by the applicants that interim order given by Hon'ble CAT Ernakulam Bench in OA No.180/953/2016 (M.A. 180/1242/2016) "to hold the examination separately for each vacancy year with a gap of minimum 40 days advance notice" is vacated by Hon'ble High Court of Kerala. The result of the examination is subject to the outcome of the OA. 

Monday, November 28, 2016

Winners of Stamp Design Competition on theme "Picnic".

Withdrawal of cash from bank deposit accounts - Relaxation

One more CAT case filed for stay in holding PS Gr. B examination

All India Association of Postmaster Cadre filed OA No. 291/00818/2016 before Hon'ble CAT Jaipur Bench for stay in holding of PS Gr. B examination scheduled to be held on 4-12-2016 and 100% posts of Sr. PM for Postmaster Cadre. 

Rs 32,631 crore deposited in post offices since demonetisation

New Delhi, Nov 27 (PTI) People have deposited a staggering Rs 32,631 crore in nearly 1.55 lakh post offices across the country following demonetisation of Rs 500/1000 currency notes.

The post offices have also exchanged about Rs 3,680 crore of old currency notes between November 10 and 24, Department of Posts Secretary B V Sudhakar told PTI.

"From November 10 to November 24, we have exchanged 578 lakh notes of value of about Rs 3,680 crore. If you look at the deposits, 43.48 crore old Rs 500 and Rs 1000 notes were accepted as deposits, and their value is about Rs 32,631 crore," he said.

As many as 1.55 lakh post offices -- about 1.30 lakh in rural areas and the rest 25,000 in urban and semi-urban areas -- are playing a "prominent role" in the entire exercise, he added.

During the same period, Rs 3,583 crore was withdrawn from post offices, Sudhakar said.

Following demonetisation of Rs 500 and Rs 1000 notes from midnight of November 8, people rushed to banks and post offices to deposit or exchange old currency notes. Serpentine queues were seen in front of banks, ATMs and post offices with people lining up to get valid currency notes.

Those without postal savings accounts were also permitted to exchange the old notes up to a certain limit in the post offices by producing their identity cards.

While the window of a fortnight to exchange these currency notes over-the-counter at banks and post offices ended on November 24, the old notes can be deposited in bank accounts until December 30.

source: The Economic Times

Friday, November 18, 2016

Adhoc promotion to Group 'B' cadre in vacant posts

Cash Withdrawal at Point-of-Sale (POS) - Withdrawal limits and customer fee/charges - Relaxation

November 18, 2016
The Chairman and Managing Director / Chief Executive Officers
All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks /
State Co-operative Banks / District Central Co-operative Banks /
All Card Network Providers
Dear Madam / Sir,
Cash Withdrawal at Point-of-Sale (POS) - Withdrawal limits and customer fee/charges - Relaxation
A reference is invited to our circulars DPSS.CO.PD.No.147/02.14.003/2009-10 dated July 22, 2009DPSS.CO.PD.No.563/02.14.003/2013-14 dated September 5, 2013 and DPSS.CO.PD.No.449/02.14.003/2015-16 dated August 27, 2015 on cash withdrawal at Point of Sale (POS) enabled for all debit cards/open loop prepaid cards issued by banks with specified per day value limits for different locations.
2. Following the withdrawal of legal tender characteristics of existing ₹ 500/- and ₹ 1000/- Bank Notes (Specified Bank Notes – SBN), the Reserve Bank of India had advised banks, vide circular DPSS.CO.PD.No.1240/02.10.004/2016-2017 dated November 14, 2016, to waive levy of ATM charges for all transactions by savings bank customers done at all ATMs, from November 10, 2016 till December 30, 2016, subject to review.
3. As another customer-centric measure, it has been decided that (i) the limit for cash withdrawal at POS (for debit cards and open system prepaid cards issued by banks in India) has been made uniform at ₹ 2000/- per day across all centres (Tier I to VI) for all merchant establishments enabled for this facility and (ii) customer charges, if any, shall not be levied on all such transactions.
4. The above shall come into effect from the date of this circular and shall be applicable till December 30, 2016, subject to review.
5. All other extant instructions in this regard shall remain unchanged.
6. The directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).
Yours faithfully
(Nanda S Dave)
General Manager

Interest rate on the long term saving deposits in post offices

Interest rates on bank deposits are not uniform and vary from bank to bank. Hence, a one-on-one comparison of interest rates may not be possible.

The interest rates on term deposits are deregulated and they are determined by the banks themselves as per their Board approved policies. In contrast interest rates on Small Savings Schemes are administered interest rates linked to G-Sec rate of comparable maturity.

The percentage of savings in the savings schemes in Post Office as on 31.03.2016 is 14.84% of the deposits in the savings schemes of PSBs.

The Government has taken various steps to popularise all the existing schemes by carrying out publicity through print and electronic/Audio Visual media on an all India basis. Jan Dhan Yojana is a scheme of the Government to encourage deposits in banks and promote savings.

This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.


(Release ID :153841)

Allotments/ Re-allotments in ASP cadre

PS Group 'B' Update

CAT cases filed for holding of PS Gr. B examination separately for year wise vacancies

One CAT case each filed at Hon'ble Ernakulam and Chennai Bench by our colleagues of Kerala and Tamil Nadu circle respectively for holding of PS Gr. B examination separately for year wise vacancies. 

Both the cases said to be heard today at respective CAT benches and posted for instructions to department on 23/11/2016. 

CHQ has already requested Directorate for postponing the PS Gr. B examination scheduled to be held on 4th December 2016. 


Payment of PLI/RPLI premia through demonetized currency notes - Reg.

2017 International Letter-Writing Competition for Young People.

Transactions in relation to which quoting PAN is Mandatory

The Income Tax Department prescribes a list of transactions for which quoting of Permanent Account Number (PAN) is mandatory. These are listed in Rule 114B of the Income Tax Rules, 1962 which were first inserted with effect from 1st November, 1998 and have been amended from time to time. The list under Rule 114B as on date requiring PAN to be quoted includes the following banking transactions :

·   Deposit with a banking company or a co-operative bank in cash exceeding fifty thousand rupees during any one day.
·         Purchase of bank drafts or pay orders or banker's cheques from a banking company or a co-operative bank in cash for an amount exceeding fifty thousand rupees during any one day.
·         A time deposit with a banking company or a co-operative bank or a Post Office
·       Opening an account [other than a time-deposit referred to above or a Jandhan / Basic Bank Deposit Account] with a banking company or a co-operative bank.

In addition to the existing requirement of quoting of PAN in respect of cash deposits in excess of Rupees fifty thousand in a day, quoting of PAN will now also be mandatory in respect of cash deposits aggregating to Rupees two lakh fifty thousand or more during the period 09th November, 2016 to 30th December, 2016 as per an amendment notified by CBDT on 15-11-2016.

The Department has already issued close to 25 crore PAN till date. The persons requiring a PAN for complying with the above requirement may do so by applying to the NSDL in a prescribed format with the necessary documentary proof. The link to the NSDL site  and the instructions for making the application are available on the official website of the Income-tax Department  under the ‘Important Links’ head  in  the lower left hand corner of the homepage.



Thursday, November 17, 2016

Demonetisation: Exchange limit on Rs 500, 1000 notes to reduce from Rs 4,500 to Rs 2000 from November 18

Economic Affairs secretary Shaktikanta Das on Thursday briefed the media and said that for over the counter exchange of Rs 500, Rs 1000 notes, the limit would be reduced from RS 4,500 to Rs 2000 from November 18.

Economic Affairs secretary Shaktikanta Das on Thursday briefed the media said that for over the counter exchange of Rs 500, Rs 1000 notes, the limit would be reduced from RS 4,500 to Rs 2000 from November 18.He further said that farmers could now withdraw up to Rs 25,000 per week against sanctioned crop loans.
He informed the media that the accounts from which money is to be withdrawn must in the farmers’ name. He further stated that the Kisan Credit Cards would be the subject of the same limitations. He said that the government has come to the decision that the time limit on the crop insurance premium was to be extended by 15 days.
Speaking of other limitations on the withdrawal of money from banks following demonetisation, Das said that up to Rs 2.5 lakhs can be withdrawn from KYC compliant accounts for marriage ceremonies. He said that only one member of the family, be it mother or father could draw up to RS 2.5 lakhs for the wedding. Das informed the media that the Central government employees up to group C could draw a salary advance of up to Rs 10,000 in cash which would later be adjusted against their salaries in November.
Speaking of the re-calibration of the ATMs, Das said that the Task Force had earlier been in a meeting and a road map had been formed for the purpose. He said that it would be done soon. Das assured the public that there was enough cash with the government for the complete exchange of old currencies.
source:The financial express

GS letter to Hon'ble Secretary regarding postponement of P.S.Group "B" Exam

No. CHQ/AIAIASP/PS Gr. B Exam 12-17/2016               Dated :    17/11/2016

Shri B. V. Sudhakar, 
Secretary (Posts) 
Department of Posts, 
Dak Bhavan, Sansad Marg, 
New Delhi 110 001. 

Sub: Conduct of LDCE on 04.12.2016 for promotion to the cadre of P.S Group ‘B’ from the vacancy year 2012–13 onwards---Regarding request for its postponement thereof. 

Ref : Directorate Notification No. A-34012/8/2016-DE dated 07th October 2016

Respected Sir, 

With profound regards, All India Association of Inspectors and Assistant Superintendents, Posts would like to submit following few lines for your kind consideration and favourable orders please:-

1.       Directorate vide memo no. F. No. A- 34012/8/2016- DE dated 07thOctober, 2016 notified for conduct of PS Group B examination on 4th December 2016, the contents of which were received/communicated to all concerned during the mid of October 2016. As you are aware, there is vast syllabus in this Exam, which needs to be covered to get through the same. Evidently, aspirants need to have thorough knowledge of all Postal Manuals / Volumes / Acts & procedures relating to Criminal and Civil cases, latest enactments, Acts / Rules governing service regulations & amendments thereto/ General Financial Rules / other Central Govt Rules on Conduct and Discipline / Financial Hand Books / Fundamental–Supplementary Rules / Various instructions issued by Directorate from time to time, current affairs etc. To prepare for it, one needs to have at least 90 days time, while the period left for preparation is only forty days. Sir, time period given for preparation is not adequate and sufficient.

2.       This competitive exam was required to be conducted every year against each vacancy year whereas it was not conducted in each year since 2012. All of sudden, Directorate has decided to conduct a single exam, for the vacancy years 2012, 2013, 2014, 2015 and 2016 and notified the same vide letter dated 07.10.2016. All IPs/ASPs eligible for the year for the year 2012, 2013, 2014, 2015 are, thus, losing their chances of appearing in the examination against respective vacancy years separately. 
In this regard, this Association has taken up the case with Hon’ble Secretary (Posts) vide letter of even number dated 19/10/2016 and also discussed the aspect during informal meeting held on 20/10/2016 with a request to conduct the exam separately for separate year but no decision has been taken and no response has been received so far.  

3.       All of sudden, on 8th November 2016, the Central Government had announced demonetization of currency by withdrawal of old series (WOS) of currency notes of higher denomination of Rs. 500/- and Rs. 1000/-.  Hon’ble Prime Minister of India had announced the scheme at 0830 p.m. and directed to involve Postal Department in the process of exchange of currency notes and accepting deposits of WOS. This war footing exercise scheme was started immediately in all the post offices with effect from 9th November 2016 and work is being carried out in all post offices upto extended hours, including Sundays and Post Office holidays.  This arduous work is being monitored in close circuit and, in addition to regular work, all Inspectors and Assistant Superintendents, Posts have been deployed and directed to;

(a)         perform duty in control room formed at all administrative offices of department daily upto 20.00 hrs towards  reporting about  exchange of WOS  and accepting deposit by old series notes, etc., 
(b)     involve in the work of exchange of notes/accepting deposits/conveyance of cash/ Providing escort for cash conveyance/ Queue Management of Public & over all monitoring etc.,

          While each and every IPs/ASPs is striving for completion of annual inspections before 31.12.2016 as per the approved inspection programme, apart from running for achievement of BD targets and other targets of this year, the work relating to demonetization of currency has overburdened more. Under these circumstances, no time has left for IPs/ASPs to prepare for PS Gr B exam which is scheduled to be held on 4th December 2016.
          In view of above, this Association earnestly requests Secretary (Posts) to kindly intervene in this matter and cause action to postpone PS Group ‘B’ examination scheduled to be held on 04th December 2016 to some other date  i.e. after end of this financial year. 

Thanking you.
Yours faithfully,

(Vilas Ingle)
                                                                             General Secretary.
Copy to :-

Shri S. V. Rao, Director (DE), Department of Posts, Dak Bhawan, Sansad Marg, New Delhi 110 001. He is also requested to kindly look into this vital issue and arrange for postponing the PS Group B examination after end of this financial year.

Banks, Post offices to report cash deposits of over Rs 2.5 lakh to I-T

The government has asked banks and post offices to report to the I-T Department all deposits above Rs 2.50 lakh in savings accounts, and more than Rs 12.50 lakh in current accounts, made during the 50-day window provided to tender the scrapped 500 and 1000 rupee notes. 

As per a notification issued today, banks, co-operative banks and post offices will have to report to the tax department cash deposits exceeding Rs 50,000 in a single day or aggregating to more than Rs 2.5 lakh during the period November 9, to December 30, 2016. 

These entities will also have to report cash deposits during the period aggregating to Rs 12.50 lakh or more, in one or more current account of a person. 

The Finance Ministry has notified the amended Rule for filing of Annual Information Return (AIR) report by banking company, cooperative bank and post offices on account of aggregate cash deposits in one or more current account of a person. 

Banks and post offices now have to file a statement of financial transaction in respect of these transactions on or before January 31, 2017, the notification said. 

Earlier, they were required to report to the I-T Department only when cash deposits in an account exceeded Rs 10 lakh in one full year. 

In view of apprehensions that large number of illegal or black money may sought to be converted into white during the window provided till December 30, the Revenue Department has issued fresh set of instructions. 

In a major assault on black money, counterfeit notes and terror financing, Prime Minister Narendra Modi had on November 8 announced demonetisation of high value currency notes of Rs 1000/500 and asked the public to deposit them in banks by December 30. 

Since then, seemingly unending queues of people trying to deposit and exchange their scrapped currency notes are being witnesses at banks and post offices. 

Tax department officers are of the view that the 50-day window provided to people to deposit or exchange notes should not be misused and hence the need to keep a tab on such high value deposits. 

Those depositing large amounts of unaccounted money will have to face the consequences under tax laws, which provide for a 30 per cent tax, 12 per cent interest and a 200 per cent penalty. 

"CBDT has brought two-fold amendment casting a reporting responsibility on the taxpayer as well as the bank, thereby ensuring that bank doesn't let go off the non-compliant taxpayers," Nangia & Co Managing Partner Rakesh Nangia said. 

Source : The Economic Times

Wednesday, November 16, 2016

Indelible Ink Mark to avoid multiple transactions : Not applicable for withdrawal or deposit

Indelible Ink Mark to avoid multiple transactions

The Central Government has announced that banks will mark with indelible ink the fingers of people exchanging old currency at bank counters to stop them from coming back repeatedly and avoid multiple transactions.

The drawing limits against Bank Accounts and from ATMs and over the cash disbursement have also been increased. It was noted that one of the primary reasons for long queues was that the same persons were visiting Bank branches, ATMs etc. repeatedly. It was also noted that certain unscrupulous elements are using the services of poor and innocent people to convert their black money into white. 

To prevent such misuse of the facility and enable larger number of persons to draw cash, indelible ink used during elections shall be used for over the counter exchange against old Rs.500/- and Rs.1000/- notes. This is not applicable in the case of withdrawal from or deposit into accounts. 

Cash disbursement points, especially Bank branches will be advised to put-up notices outside their branches advising people to avoid exchange of old notes over the counter multiple times. 

Parking Charges at Airports suspended till 21.11.16

The Ministry of Civil Aviation has decided to suspend the collection of parking charges at all airports till midnight of 21 November 2016. This has been done in order to facilitate the smooth movement of passengers.


Tuesday, November 15, 2016

Postal Life Insurance (PLI) Vs LIC - Which is best?

Do you know your Post Office also offers Life Insurance? Even if you know then there is a huge confusion among buyers like whether to buy with the Post Office or with LIC, because the Government of India backs both. Hence, let us see which is best for whom.

What is PLI (Postal Life Insurance)?
PLI (Postal Life Insurance) is exactly like any Life Insurance company, for example LIC or ICICI Pru Life Insurance. The only difference is, it is run and managed by Post Office. PLI currently offers only traditional plans. Therefore, no term insurance or ULIPs.

How many types of policies PLI (Postal Life Insurance) offers?
Currently PLI offers below mentioned traditional endowment products.

1) Whole Life Assurance Policy (Suraksha).
This is exactly like LIC’s Whole Life Policy. The nominee will receive the accrued bonus and sum assured after the death of the policyholder. Minimum age at entry is 19 Yrs and maximum is 55 Yrs. Minimum Sum assured is Rs.20, 000 and maximum Sum Assured is Rs.10, 00,000.

2) Endowment Assurance (Santosh).
This is a typical endowment plan where a policyholder gets sum assured along with bonus if he survive until the maturity period. In case of his death during the policy period, then his nominee will receive the sum assured along with accrued bonus. Eligibility criteria are same as that of Whole Life Assurance Policy (Suraksha).

3) Convertible Whole Life Assurance (Suvidha).
This plan is exactly like Endowment Assurance. The only difference is, if you don’t convert this policy to Endowment Assurance then it is treated as Whole Life Assurance plan.

4) Anticipated Endowment Assurance (Santosh).
This is typical money back endowment plan, where the maximum sum assured is restricted to Rs.5, 00,000. In this category, PLI offers two types of plans. One is 15 yrs and other is a 20 yr term.

5) Joint Life Assurance (Yugal Suraksha).
You can buy this policy with your spouse as co-insured. To avail this facility one the spouse must be eligible to buy PLI. Life Insurance coverage is for both husband and wife to the sum assured you bought. The maximum sum assured is Rs.1, 00,000.

6) Scheme for physically handicapped persons.
This plan is uniquely designed for handicapped persons. Based on the condition of handicap, premium raised or increased. Rest of plan features are exactly like the others.

7) Children Policy
PLI started to offer child policy from 2006. Few features are listed below.
  • It mainly covers the life insurance of children.
  • Maximum two children can be insured in a family.
  • Children between 5 Yrs to 20 Yrs are eligible for this plan.
  • Maximum Sum Assured is Rs.1,00,000.
  •  Premium waiver benefit in case of main policy holder dies.
  • In case of death of children, then sum assured along with bonus be payable to main policy holder.
  • Responsibility of premium payment rest with main policy holder.

So what is the difference between PLI and LIC?
  • Eligibility-To buy PLI you must be employee of the Central and State Governments, Central and State Public Sector Undertakings, Universities, Government aided Educational institutions, Nationalized Banks, Local bodies, etc. PLI also extends the facility of insurance to the  officers and staff of the Defense services and Para-Military forces. Where as LIC offers it’s plans to all citizens of India. So when it comes to flexibility to buy then LIC holds edge than PLI.
  • Plans offered-There is no such difference. Because LIC and PLI mostly dependent on traditional endowment type of Life Insurance Plans. But along with that LIC offers term insurance (recently LIC launched online term insurance), which is not at all touched by PLI.
  • Premium Rate-When compare to LIC or any private insurers, PLI offers cheap premium. So this is a most advantage of buying endowment plans with PLI than with LIC.
  • Bonus Rate-Bonus offered by PLI is in the range of 7% or more. Whereas currently LIC offers a bonus rate of around 4% to 5%.
  • Where to buy-In case of PLI, you have to visit to the Post Office where these schemes are offered. Whereas in case of LIC, you will easily get agents. These agents can come to your doorstep and offer the service. Along with that recently LIC launched an online buying also (restricted to online term plan and pension plan). Therefore, in case of buying LIC offers more flexibility than PLI.
  • Age Limit-PLI offers insurance to the age group of 19-55 yrs. Where as in LIC you can get the insurance coverage up to 75 yrs (not in all policies).
  • Maximum Sum Assured-PLI offers you the maximum sum assured of Rs.50 Lakh. Whereas, LIC offers an unlimited maximum sum assured.
  • Premium Payment-You need to visit the Post Office to pay the premium dues. However, in case of LIC, you can pay it in branch, collection points or through online.
  • Tax benefits-Both PLI and LIC offer same tax benefit for deduction under Sec.80C.
Considering all these features and differentiation between PLI and LIC, I feel PLI is still in olden days. Because it offers less insurance coverage, entry is restricted to only few, service issues, no term insurance and age limit. Whereas only two positive points that attract you towards PLI are lesser premium and higher bonus.
Whether it is prudent to buy endowment plans from PLI?

Even though PLI offers you higher return and lower premium compare to LIC and other private insurers, the returns in the long run may erode drastically if you consider the inflation. Along with that, you will be under insured due to restricted maximum insurance limit. Post Offices still not customer friendly. So you may face service issues and claim settlement issues.(now improved) 

Courtesy :