Saturday, October 22, 2016

Employee can exceed earned leave limit: HC

In a significant judgment, the Punjab and Haryana High Court has ruled that the accumulated unutilised leave of an employee cannot be reduced to 300 days even if he is entitled to leave encashment for a maximum of 300 days.
The ruling came in case of Haryana Government employees after the High Court was told that accumulated earned leave was reduced to 300 days time and again during the course of service on the assumption that they were entitled to a maximum of 300 days earned leave.
Eventually, when the time came for encashment of unutilised earned leave, they were granted the benefit for lesser number of days.
“If an employee is entitled to leave encashment for a maximum limit of 300 days, that does not mean that the accumulated unutilised leave is to be reduced to 300 days if it exceeds the limit. The earned leave will continue to accumulate till the retirement of the petitioners and the petitioners are to be granted the maximum benefit of 300 days, as stated in the rules,” Justice Kuldip Singh ruled.
The ruling came on a petition by Jaipal Phogat and another petitioner against the State of Haryana and other respondents. Justice Kuldip Singh asserted the “unfortunate controversy” was regarding the method used to calculate unutilised earned leave of petitioners Jaipal Phogat and Jaibhagwan.
Retired mechanics, the petitioners had claimed that they were entitled to leave encashment of 300 days unutilised earned leave. Petitioner number one was is entitled to 300 days leave encashment, but was granted the benefit of 257 days. Petitioner number two, on the other hand, was entitled to 268 days leave encashment, but was granted the benefit of 211 days.
During the course of the hearing, Justice Kuldip Singh asked both parties to file calculation sheets. He added that the examination of calculation sheet regarding Phogat showed mischief was done while calculating unutilised earned leave on April 27, 1999, May 22, 2003, and October 31, 2007.
The unutilised earned leave for 362 days, 375 days and 335 days, respectively, was reduced to 300 days on the assumption that the petitioner was entitled to a maximum of 300 days earned leave.
Similarly, in Jaibhagwan’s case, earned leave was reduced on August 11, 2002, May 22, 2003, and August 22, 2003, from 308 days, 307 days and 305 days, respectively.
“The calculation done by the respondents is not only mischievous, but wrong application of the principle of calculation of unutilised earned leave is also there. As such, the calculations made by the petitioners are accepted and that of the respondents are set aside,” the High Court ruled.

Transfer and postings in the cadre of ASPs in AP Circle

Association conveys best wishes  to  above officers on their new postings 

Thursday, October 20, 2016

Revision to the composition of the Transfer and placement Committee for the officers working in the Senior Administrative Grade (SAG) of lPoS, Group 'A' and above

Appeal for Agitation call given by AIGDSU and Postal joint council of action

Implementation of Government's decision on the recommendations of Seventh Cenfral Pay Commission - Clarifications regarding

Identification of the Sensitive and Non-sensitive posts in Department of Posts

Click here to view Postal Directorate orders dated 07.10.2016 on the above subject matter.

Here Is The First Look Of RICT Device And Its Parts

Get used to it because you are going to work with this in the very near future.

Wednesday, October 19, 2016

Systemic changes for addressing of public grievances

Niraj Kumar                                                          
DDG (PG, QA & I)

DO.No.3-15/2015-PG                        Dated: 07.10.2016

Respected Sir/ Madam,

Sub: Systemic changes for addressing of public grievances.

During the last PRAGATI meeting held on 24th August 2016, need for imparting soft skills to bring about behavioral changes was highlighted. This found echo in DARPG recommendations as well. This issue has found mention in Board meeting dated 10th Aug 2016 too.

2.  A sizeable part of the public grievance emanates either directly or indirectly from the alleged apathy our unsatisfactory behavior or ill tempered treatment from the postal staff in the counter or the delivery branch of the post office, including the postman.

3.  We pride on our extensive network and last mile connectivity. The postman and the man sitting on the counter is that connectivity. He receives induction and refresher trainings and he is well aware of rules and procedures. There is no deficiency in his capacity or expertise. However, when it comes to handling of crowd, or a pressure situation, or an argumentative or even provocative customer, the staff and even supervisors are found wanting in the necessary skills to diffuse the crisis.

4.  With the above in view, there is a need to launch a sustained campaign on good behavior towards the customer. The key target groups are:

1. the counter staff,

2.  the postman and delivery staff and

3. the postmasters.

Even senior level staff needs to hone their skills on conflict resolution, crowd management, management of counters and other mail / delivery offices during heavy rush, motivational skills, creating cheerful ambiance and customer friendly atmosphere in the post offices and encouraging their staff, including postman , towards good behaviour using a mix of motivational and deterrent actions.

5.  With this objective, the following is proposed:

A. “Mail-Milaap”

i. every day 10 AM to 1 PM is happy hour in the public hall .

ii. happiest counters or bright spot counters will be suitably rewarded  and so labelled.

iii. gentleman of the month or model staff of the month badge to be worn by the gentleman / model staff.

iv. the post office will be chosen by RWA and local residents for the Happiness Centre award which should be given wide publicity.

B. Khush-Khabri (meaning good news, but can also mean happy messenger)

i. the postman to be motivated to be the gentleman postman

ii. the beat will be named as happy beat.

iii. KYD (know your dakia) to be launched whereby name and mobile no of the postman to be available to the residents of the beat. This helps the residents to connect with the postman and facilitate delivery.

iv. “Last mile with smile” campaign  : Under this campaign the Postman and other delivery staff will be sensitise towards customers friendly behaviour.  The Postman provide the last mile connectingly to the entire postal system. In the rural areas, the delivery work force is going to be used for financial inclusion as well.  Therefore, the compaign will focus on encouraging the postman to “deliver with smile” and be a friendly and a helping person, i.e. a “Gentleman Postman”. Depending upon his behaviour and feedback from people,his beat will be declared a “happy beat”.  There will be special reward to the Division and Circles with maximum number of “happy beats”.  This should also reflect in the reduction of public complaints relating to bad behaviour of the Postman all deliberate non delivery, delayed delivery etc.  Because a “happy beat” needs that delivery is prompt.


 (A).     Timeline:

i.  By 30th October, 2016, one post office in the Circle Headquarter or anywhere in the Circle to be adopted for “Mail-Milap” campaign and will have all fully “Happy Counters”. 

ii.  Similarly one delivery post office will be selected based on a largest number of delivery related complaints pertaining to Postman or delivery staff.  By 30th of October,2016, a happy beat will be created.  It will be desirable if all beats in a particular post office are “Happy Beats”.

iii. By 31st December, 2016, all HOs should implement the “Mail-Milap” campaign in their counters and public hall.  All HOs should be able to identify a “Happy Counter” and the name of the staff.

iv.  Name, picture, contract number etc. of the staff can be popularised on social media by creating a “Happy Group”.

v.  By 30th March, 2017, the “Mail-Milap” campaign can be extended upto all these important delivery post offices in the cities.

vi. By 30th June, 2017, all sub post offices should be covered under the “Mail-Milap” campaign.

vii. Similarly by 31st December, 2016 all the HOs would identify one or more “Happy Beats” and “Gentleman Postman”.  Their particulars should also be shared in the social media “Happy Group”.  By 31st March 2017, Circles will identify such “Gentleman Postman” and “Happy Beats” from all the sub offices in urban area.

viii. By 30th June,2017, rural sub offices will be covered.

ix. By 31st December, 2017 all GDS delivery agents and BPM should sensitize towards good behaviour and service to the customer.

(B) Action Points:

i.  A workshop on the subject can be arranged in Directorate with all the DPS HQ and other Senior Officers of the Circles will be involved.

ii. All the senior officers in the Circles will organize camps and workshop in their Circles, Region and Division to spread awareness about the campaign and will address the counter staff, Postmasters and Postmen.

iii.  Circles will also be asked for happiness volunteers from among the post office staff who can sensitize and motivate their colleague and thus help the campaign.

iv. Creative banners, posters leaflet should be prepared. Sign Boards for happy hours, happy counters, etc. should be prepared to. Circles may communicate with the public through local FM Radio messages and  social media.  Customer meetings should also be arranged.

v. A social audit group of eminent personalities, RWAs, Schools etc. should created which can review the “Hppiness centres” and “Happy Beats”.

vi. Circles will be encourage to share a success stories or any suggestions.

7.  A “National Postal Happiness Index” will be created whereby Circles will be ranked.  The index will be created on 30.04.2017.

8.  A “National Postal Consumer Satisfaction Index” will also be accordingly developed.

You are requested to start this happy campaign in order to bring about behavioral and attitudinal changes in our staff. Because, this will go a long way in rebuilding the image of the Department and creating a positive and happy perception about our staff.

This issue with the approval of Secretary (Posts).

Wishing you Happy Navratri & Dussehra

With regards.

(Niraj Kumar)

source: CHQ

Transfers and promotions in the cadre of Junior Administration cadre(JAG) of indian Postal service Group"A"

P.S GROUP"B' UP date......

How to claim PPF after subscriber's death

In the event of the death of a Public Provident Fund (PPF) subscriber, any money left in their PPF account is passed on to the nominee(s) or the legal heir(s). The paperwork and documentation for the claim vary based on whether a nomination has been registered by the PPF subscriber or not. Here’s how to go about filing a claim. 


Nominees or the legal heir of the deceased PPF subscriber are required to submit a duly filled Form G to the bank or post office where the the PPF account was held. 

Nomination registered 

If the PPF subscriber had registered a valid nomination, the nominee will be able to claim the proceeds from the account by simply filing the Form G, along with proof of death of the subscriber (death certificate). 

No nomination 

If there is no nomination in force, the claim can be made by the legal heirs of the de -ceased subscriber. In addition to death certificate, the legal heirs also have to submit a succession certificate or letters of administration along with an attested copy of probate of will issued by a competent court. 

Amount up to Rs 1 lakh 

If the amount standing to the credit of the PPF account is up to Rs 1 lakh, the claim may be processed after submission of the following documents: 
*A letter of indemnity. 
*An affidavit. 
*A letter of disclaimer on affidavit. 
*A certificate of death of subscriber on stamped paper. 


On receipt of application and documents from the nominee(s), if these are found to be in order, all amounts standing to the credit of the PPF account of the deceased subscriber will be repaid to the nominee(s) by the bank or post office. Adjustments will be made according to interest on loans taken by the subscriber. 

Points to note 

*In case of death of one of the nominees, the surviving nominee(s) will also have to provide proof of death of the deceased nominee. 
*The balance in the PPF account continues to earn interest till the end of the month preceding the month in which payment of the deposits stopped. 

Source:-The Economic Times

Allotment of staff consequent on bifurcation of AP circle

Association conveys best wishes to all the officers  on their allotments  

Creation of a new Region named 'Varanasi Region' at Varanasi (UP) by re-organizing existing Regions

Monday, October 17, 2016

Mourning ceremony of Late Sri. Gouri Shankar, ASP, VIzag west sub division conducted today and Sri. G.Shivanagaraju President , Sri. Y. Venkateswarlu, CS and IP/ASPs from Vishakapatanam Region attended and Rs.10000 financial assistance from our Association given to family memebers of bereaved family.

Hon'ble MoS C(I/C) Shri Manoj Sinha wishes on the occasion of Word Post Day & National Postal Week 2016

Andhra Pradesh, Telangana get Foreign Post Office

The Centre has announced the setting up of ‘Foreign Post Office’ in the States of Telangana and Andhra Pradesh, along with the Leh region in Jammu & Kashmir, providing the much-needed service for import and export of goods by post parcels, courtesy the Postal Department.

A gazette notification issued by the Central Board of Excise and Customers under the Department of Revenue in the Union Finance Ministry on Thursday evening said that the facility was now a reality after the required amendments to sub-sections of Section 7 of the Customs Act, 1962, had been carried out.

Sub-sections under Section 7 deal with issues related to ports and airports/inland container depots, which alone shall be customs ports or customs airports for the unloading and clearance of imported goods and the loading of export goods or any class of such goods.

They also pertain to the places which alone shall be land customs stations for the clearance of goods imported or to be exported by land or inland water or any class of such goods, the routes by which alone goods or any class of goods specified in the notification may pass by land or inland water into or out of India, or to or from any land customs station from or to any land frontier and the ports which alone shall be coastal ports for carrying on of trade in coastal goods or any class of such goods with all or any specified ports in India. Office of the Commissioner of Customs is in-charge of Foreign Post Offices and sub-Foreign Post Offices where the facility for import and export of goods by post parcels is provided by the Postal Department.

Customs facilities

Customs facilities for examination, assessment and clearance are available at these post offices.

Limited facility for export clearances is also available at Export Extension Counters opened by the Postal Department where parcels for export are accepted and cleared by the Customs.

Goods imported through post are classified under Chapter Heading 9804 of the Customs Tariff Act, 1975, and it applies to goods permitted for import through post which are exempted from prohibition under Foreign Trade (Development and Regulation) Act, 1992.

As per Note 6 to Chapter 98, goods against an import licence or Customs Clearance Permit can also not be imported through post.

Motor vehicles, alcoholic drinks and goods imported through courier, however, are not covered.

Source :

GS written letters to Directorate.

Grant of Special allowance for IP/ASPs working in RO/CO-reg.

No. CHQ/AIAIASP/AIC-Reso/7/2016                                 Dated :  15/10/2016

The Dy. Director General (Estt.)
Department of Posts, 
Dak Bhavan, Sansad Marg, 
New Delhi 110 001. 

Subject : Grant of Special allowance for IP/ASPs working in RO/CO-reg.

Respected Sir,
                   I would like to invite your kind attention to letter No. 10/01/2016-SR dated 10th March 2016 (copy enclosed) issued by ADG (SR & Legal) where in a copy of this Association’s letter of even number dated 25/2/2016 was sent Establishment Division for taking necessary action in the matter and direct reply to this Association. But till date nothing is heard from Directorate.

                   It is therefore requested to kindly look into the matter personally and present status of the issue may be intimated to this Association for the information to its members.

                                                                                   Yours sincerely,

(Vilas Ingale)
General Secretary

Providing clerical assistance to Sub Divisional Head.

No. CHQ/AIAIASP/AIC-Reso/6/2016                                   Dated :  14/10/2016

Mrs Manju Pandey,
Dy. Director General (P),
Department of Posts, 
Dak Bhavan, Sansad Marg, 
New Delhi 110 001. 

Subject : Providing clerical assistance to Sub Divisional Head.

Ref.        : No. 10-01/2016-SR dated 15th March 2016 (copy enclosed)

Respected Madam,

Kindly refer above captioned letter issued by V. Ramaswamy, ADG (SR & Legal) to DDG (P) on the subject.  

It is to bring to your kind notice that the 39th All India Conference of this Association was held at Jaipur on 13th and 14th February 2016 in which issue of providing clerical assistance to Sub Divisional Head was discussed in detail and after discussion, following resolution was passed unanimously by All India Conference.

“The work load on Sub Divisional Head has tremendously increased with the introduction of new services and launch of new products/business in the Department. Besides, technology implementation at grass root level at Branch Post office is need of hour. In order to implement the changes effectively, there, is essential requirement of clerical assistance to Sub Divisional head to cope up with the ever increasing burden. Therefore AIC Jaipur unanimously resolved to request Secretary (P) to consider immediate provision of at least one clerical assistance to all sub divisional head”.

In view of the above lines, it is earnestly requested to kindly consider the resolution in the interest of service to enhance the productivity and efficiency in quality of service by Inspectorial cadre.

The present status of the issue may kindly be intimated to this Association for information to their members.
                                                                                Yours sincerely,

(Vilas Ingale)
General Secretary

Amendment to the constitution of All India Association of Inspectors and Assistant Superintendents, Posts.

No. CHQ/AIAIASP/Constitution/2016                                Dated :  15/10/2016

Shri V. Ramaswamy,
ADG (SR & Legal),
Department of Posts, 
Dak Bhavan, Sansad Marg, 
New Delhi 110 001. 

Subject : Amendment to the constitution of All India Association of Inspectors and Assistant Superintendents, Posts.

Ref.        :    Directorate No. 15/03/2016-SR dated 22nd March, 2016

Respected Sir,
                   IP/ASP Association would like to bring to your kind notice that Directorate vide above captioned memo has approved and circulated amendments in Article No. 5 and 38 of the constitution of All India Association of Inspectors and Assistant Superintendents, Posts to all Heads of Circles.

                   This Association held its CWC on 10/9/2016 and 11/9/2016 at Ujjain (MP) in which it was pointed out by few Circle Secretaries and CHQ office bearers that above said memo was not circulated by most of the circles to DDOs.

                   It is therefore requested to kindly re-circulate the revised amendments approved by the Directorate in above said memo once again to all circles with a direction to circulate to all DDOs in the country.

                                                                                       Yours sincerely,

(Vilas Ingale)
General Secretary

Willingness of Sr. Instructor/ Instructor for posting on deputation at PTC Darbhanga in Bihar.

Thursday, October 13, 2016

Bi-Monthly meeting with PMG (HR)

SENIORITY – Consolidated orders

-Seventh Central Pay Commission's recommendations — revision of Pay scales — amendment of Service Rules/Recruitment Rules.


Shri.N. Chandrababunaidu Hon'ble  Chief Minister, Andhra Pradesh & Shri M. Venkaiah Naidu, Hon'ble Minster of Urban Development, Housing and Urban Poverty Alleviation, Information  and Broadcasting, Government of India  august Presence of Shri Manoj Sinha, Hon'ble Minister of State for Communications (Independent Charge) and Minister of State for Railways, Government of India and Shri B. V. Sudhakar, Secretary to Govt. of India, Department of Posts has digitally Inaugurated the Andhra Pradesh  Postal Circle  & Teclecom Circle on 11.10.2016 at Convention Centre, Vijayawada 

Few Photos of this inaugural Function......

Monday, October 10, 2016

Greetings to all members, track-in-viewers and well wishers.


In response to our appeal for voluntary  contribution to circle, the following are credited  voluntarily to the circle fund on 30.09.2016.

Sl. No
Name and designation
Name of the office
Sri. B. Suresh Kumar, AD(Mktg)  
GPO, Hyderabad

Sunday, October 09, 2016

National Postal Week 09.10.2016 to 15.10,2016

visited the house of deprived family members of late Sri. Gowrishankar

On 08.10.2016 Sri. Y.Venkateswalu, Circle Secretary, Sri. Ramana Murthy, Vice President Sri, B, Srinivasu, Asst. General Secretary (CHQ) of our Association along with vishakapatnam members  visited house of deprived family of late Sri. Gowrishankar and gave condolence  and moral support on behalf of our association 

Philatelic state level exhibition Tamil Nadu Circle

LDCE : PS Gr. B examination for the year 2012-13 to 2016-17


October 6, 2016
Chief Executive Officers of Payments Banks
Madam / Dear Sir,
Operating Guidelines for Payments Banks
Please refer to the Guidelines for Licensing of Payments Banks (‘Licensing Guidelines’) dated November 27, 2014, under which in-principle approvals/ licences were issued to the applicants for setting up of the payments banks.
2. The need for separate Operating Guidelines for payments banks was examined, considering the differentiated nature of business and financial inclusion focus of these banks. Accordingly, the Operating Guidelines for payments banks are given in the Annex.
3. The prudential frameworks for market risk and operational risk are being examined and the instructions in this regard will be issued separately.
4. These Operating Guidelines are supplementary to the Licensing Guidelines and take immediate effect.
Yours faithfully,
(S S Barik)
Chief General Manager-in-Charge

Operating Guidelines for Payments Banks
1. Prudential regulation
The prudential regulatory framework for payments banks (PBs) will largely be drawn from the Basel standards. However, given the financial inclusion focus of these banks, it will be suitably calibrated.
1.1. Capital adequacy framework
Minimum Capital Requirement15%
Common Equity Tier 16%
Additional Tier I1.5%
Minimum Tier I capital7.5%
Tier 2 capital7.5%
Capital Conservation BufferNot Applicable
Counter-cyclical capital bufferNot applicable
Pre-specified Trigger for conversion of AT1CET1 at 6% up to March 31, 2019, and 7% thereafter
1.2 Large exposures limits (for investments in deposits of scheduled commercial banks)
The exposure in this regard to an individual scheduled commercial bank shall not be more than five per cent of the total outside liabilities of the PB.
1.3 Capital measurement approaches
Credit RiskBasel II Standardized Approach for credit risk
1.4 Inter-bank borrowings
PBs will be permitted to participate in the call money and CBLO market as both borrowers and lenders. These borrowings would, however, be subject to the limit on call money borrowings as applicable to scheduled commercial banks.
1.5 Investment classification and valuation norms
  1. PBs shall, on any given day, maintain a minimum investment to the extent of not less than 75 per cent of ‘demand deposit balances’ - DDB (including the earnest money deposits of BCs) as on three working days prior to that day, in Government securities/Treasury Bills with maturity up to one year that are recognized by RBI as eligible securities for maintenance of Statutory Liquidity Ratio (SLR).
  2. Further, PBs shall, on any given day, maintain balances in demand and time deposits with other scheduled commercial banks, which shall not be more than 25 per cent of its DDB (including the earnest money deposits of BCs) as on three working days prior to that day.
  3. The investments and deposits made according to (i) and (ii) above, together shall not be less than 100 per cent of the DDB (including the earnest money deposits of BCs) of the PB unless it is less to the extent of balances kept with RBI.

    Note: Balances with other scheduled commercial banks in excess of 25 per cent of DDB (including the earnest money deposits of BCs), is permissible to the extent the excess amount is sourced from funds other than DDB (including the earnest money deposits of BCs).
  4. PBs will not be allowed to classify any investment, other than those made out of their own funds, as HTM category. The investments made out of their own funds shall not, in any case be, in assets or investments in respect of which the promoter / a promoter group entity is a direct or indirect obligor.
  5. PBs will not be allowed to participate in ‘when issued’ and ‘short sale’ transactions.
  6. PBs will be permitted to invest in bank CDs within the limit applicable to bank deposits.
  7. The other directions on the subject as applicable to scheduled commercial banks (see the Master Circular RBI/2015-16/97 DBR No BP.BC.6/21.04.141/2015-16 dated July 1, 2015 and the circulars issued thereafter).
1.6 Restrictions on loans and advances (including lending to NBFCs) including regulatory limits
PBs will not be permitted to lend to any person including their directors. However, PBs may lend to their own employees out of the bank’s own funds, as per a Board approved policy outlining the caps on such loans.
1.7 Para-banking activities
PBs will not be permitted to undertake any para-banking activity except those allowed as per the Licensing Guidelines and the related FAQs issued.
1.8 Product approval
  1. At the time of submitting application for licence, the PBs should submit to RBI a list of financial products they intend to offer with a clear description.
  2. Any new products proposed to be introduced thereafter should be intimated to RBI for information. If required, RBI may place suitable restrictions on the design, functioning, or other features of the product including discontinuing the product.
2. Risk management
2.1 Credit risk management including credit concentration risk
Not applicable, except as indicated in para. 1.3.
2.2 Market risk management
The provisions regarding market risk management for PBs will be as applicable to commercial banks. PBs will be permitted to use derivatives only for the purpose of hedging their foreign currency positions arising out of the activities conducted under the AD Category II authorization.
2.3 Operational risk management
Payment Banks should implement the operational risk management requirements, issued by RBI for scheduled commercial banks for operational risk, including collection of operational loss data.
2.4 Liquidity risk management
The provisions regarding liquidity risk management shall be as applicable to scheduled commercial banks, with suitable enhancements to take into account the liquidity risk profile of PBs.
2.5 Strategic and reputational risk management
The provisions regarding strategic and reputational risk management shall be as applicable to scheduled commercial banks, with suitable enhancements to take care of the reputational risk arising from use of agents.
2.6 Internal controls, audit and compliance
The provisions regarding internal controls, audit and compliance by the PBs shall be as applicable to scheduled commercial banks, with suitable enhancements to take care of the ICT related aspects and operations through agents.
3. CRR, SLR, disclosures and statutory/regulatory reports
For PBs, the CRR and SLR requirements and the various disclosures and statutory/regulatory reports will be as applicable to commercial banks (see the Master Circular RBI/2015-16/98 DBR.No.Ret.BC.24/12.01.001/2015-16 dated July 1, 2015 and the circulars issued thereafter).
4. Ownership and control regulations
The extant provisions in this regard as applicable to private sector banks, as covered in the Master Directions on Issue and Pricing of shares by Private Sector Banks DBR.PSBD.No.95/16.13.100/2015-16 dated April 21, 2016 and Master Directions on Ownership in Private Sector Banks DBR.PSBD.No. 97/16.13.100/2015-16 dated May 12, 2016, shall be applicable to PBs as well, except what is provided in the existing regulation contained in the Licensing Guidelines.
5. Corporate governance
5.1 Constitution and functioning of board of directors
The extant provisions as applicable to banking companies shall be applicable to PBs as well. Specifically in the case of converting entities, the terms and conditions of appointment of existing Directors will be grandfathered till completion of their present term.
5.2 Constitution and functioning of committees of the board, management level committees, remuneration policies
The extant provisions in this regard as applicable to private sector banks, shall be applicable to PBs as well.
6. Banking Operations
6.1 Authorization of Access Points
  1. The annual plans for opening of physical access points by the PBs for the initial five years would need prior approval of RBI. The first of such plan shall be submitted to RBI before commencement of business. After the initial stabilisation period of five years, and after a review, RBI may liberalize the requirement of prior approval.
  2. An employee of the PB should be available for sufficient duration, at a fixed location known to the customers at the district level, to attend to customer grievances and support the agent supervision. This fixed location may also be used to conduct the banking business of the PB, and it will be considered as a physical access point for the purposes of assessing the requirement of opening at least 25 per cent physical access points in rural centres.
6.2 Regulation of Business Correspondents
  1. The PBs can engage all permitted entities including the companies owned by their business partners and own group companies on an arm’s length basis as “BCs”. These companies can have their own branches managed by their employees operating as “access points” or may engage other entities/persons to manage the “access points” which could be managed by the latter’s staff. In the above cases, from the regulatory perspective, the bank will be responsible for the business carried out at the ‘access points’ and the conduct of all the parties in the chain regardless of the organizational structure including any other intermediaries inserted in the chain to manage the BC network.
  2. Inter-operability of the BCs will be allowed except for opening of savings and current accounts.
  3. BCs cannot undertake any offline transactions. Consequently, BCs cannot undertake transactions if there is no internet connectivity.
  4. The PBs will be exempted from the requirement of having a base branch for a certain number of BCs/access points managed by BCs as currently stipulated in the RBI guidelines to scheduled commercial banks.
Note: It is clarified that in cases where a PB is acting as the BC for a bank, the BC engaged by the PB shall not open deposit accounts for the partner bank for whom the PB acts as the BC or undertake KYC documentation for that bank.
6.3 Bank charges, lockers, nominations, facilities to disabled persons, etc.
The extant provisions in this regard as applicable to scheduled commercial banks, shall be applicable to PBs as well.
7. Bank deposits
(i) As provided in the current RBI directions, PBs can accept only savings and current deposits. The aggregate limit per customer shall not exceed ₹100,000, as provided in the Licensing Guidelines. However, the RBI will have no objection to the PBs making arrangements with any other scheduled commercial bank / SFB, for amounts in excess of the prescribed limits, to be swept into an account opened for the customer at that bank. This arrangement should be activated with the prior written consent of the customer.
(ii) The above limit shall apply to customer deposits and not to any security/earnest money deposit the bank may collect from any of its service providers in the ordinary course of business.
(iii) All RBI and BR Act provisions and RBI directions relating to minimum balance, inoperative accounts, unclaimed deposits including transfer of such deposits to the Depositors Education and Awareness Fund maintained by RBI on regular basis, nominations, cheques/drafts, etc., will be applicable to the PBs.
(iv) Payments Banks:
  • need not issue passbooks for the deposit accounts;
  • may provide statement of account in paper form on request on chargeable basis, or otherwise;
  • may provide account information through multiple user friendly modes such as SMS and/or internet banking; and
  • should provide electronic confirmation through SMS/e-mail/printed proof for each account transaction.
8. KYC requirements
  1. At their discretion, PBs may (like all other banks) decide not to take the wet signature while opening accounts and instead rely upon the electronic authentication/confirmation of the terms and conditions of the banking relationship/account relationship keeping in view their confidence in the legal validity and authenticity of such authentications/confirmations. However, all the extant regulations concerning KYC including those covering the Central KYC Registry, and any subsequent instructions in this regard, as applicable to commercial banks, would be applicable to PBs.
  2. PBs should ensure that every customer, including customers of mobile companies on-boarded comply with the KYC regulations, which could include simplified account opening procedures. It is clarified here that if the KYC done by a telecom company, which is a promoter / promoter group entity of the PB, is of the same quality as prescribed for a banking company, PBs may obtain the KYC details of the customer from that telecom company, subject to customer consent.
9. Foreign exchange business
Payments Banks shall:
  • comply with all the conditions attached with the AD Cat II licence that will be issued by the FED, CO.
  • implement the provisions of Foreign Contribution (Regulation) Act, 2010 (As applicable to commercial banks).
10. Other banking services
10.1 Currency distribution(covering detection of forged and counterfeit notes, currency chest facilities, facilities for exchange of notes)
PBs may, at their option, exchange mutilated and defective notes at their branches, subject to compliance with RBI norms.
10.2 Customer education and protection
  1. All customer grievance issues related to a particular access point should be addressed both at the access point and at the district level location mentioned above at paragraph 6.1 (ii).
  2. PBs will be covered by the Banking Ombudsman (BO) Scheme.
  3. The mechanism put in place by PBs to effectively resolve customer complaints and its communication to customers, and role of different levels (access point, controlling office (centre at the district level), and head office) in grievance redressal should be clearly communicated to RBI along with the application for licence.
  4. The customer service policy approved by the boards of the PBs should provide for continuous and intensive monitoring of redressing of customer grievance by the PBs.
  5. RBI will closely supervise the grievance redress system of the bank through both onsite and off-site surveillance system.
11. Outsourcing of operations, internet banking and mobile banking
  1. The extant provisions in this regard as applicable to scheduled commercial banks, shall be applicable to PBs as well.
  2. Loading of PPI balances through other bank credit cards will be permitted.
12. Implementation of Ind AS
Implementation of Ind AS would be applicable to PBs once they become scheduled banks. In view of the same, it is recommended that the PBs start adoption of the same in order to avoid transition costs subsequently.