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Friday, November 13, 2015

FAQ : ALL ABOUT SOVEREIGN GOLD BOND

1. What is Sovereign Gold Bond (SGB)? Who is the issuer?

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

2. Why should I buy SGB rather than physical gold? What are the benefits?

The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc.

3. Are there any risks in investing in SGBs?

There may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has paid for.

4. Who is eligible to invest in the SGBs?

Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities, charitable institutions, etc.

5. Whether joint holding will be allowed?

Yes, joint holding is allowed.

6. Can a Minor invest in SGB?

Yes. The application on behalf of the minor has to be made by his / her guardian.

7. Where can investors get the application form?

The application form will be provided by the issuing banks/designated Post Offices/agents. It can also be downloaded from the RBI’s website. Banks may also provide online application facility.

8. What are the Know-Your-Customer (KYC) norms?

Know-Your-Customer (KYC) norms will be the same as that for purchase of physical form of gold. Identification documents such as Aadhaar card/PAN or TAN /Passport / Voter ID card will be required. KYC will be done by the issuing banks/Post Offices/agents.

9. What is the minimum and maximum limit for investment?

The Bonds are issued in denominations of one gram of gold and in multiples thereof. Minimum investment in the Bond shall be two grams with a maximum buying limit of 500 grams per person per fiscal year (April – March). In case of joint holding, the limit applies to the first applicant.

10. Can I buy 500 grams in the name of each of my family members?

Yes, each family member can hold the bond if they satisfy the eligibility criteria as defined at Q No.4.

11. Can I buy 500 grams worth of SGB every v year?

Yes. One can buy 500 grams worth of gold every year as the ceiling has been fixed on a fiscal year (April-March) basis.

12. Is the limit of 500 grams of gold applicable if I buy on the Exchanges?

The limit of 500 grams per financial year is applicable even if the bond is bought on the exchanges.

13. What is the rate of interest and how will the interest be paid?

The Bonds bear interest at the rate of 2.75 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semiannually to the bank account of the investor and the last interest will be payable on maturity along with the principal.

14. Who are the authorized agencies selling the SGBs?

Bonds are sold through scheduled commercial banks and designated Post Offices either directly or through their agents like NBFCs, NSC agents, etc.

15. Is it necessary for me to apply through my bank?

It is not necessary for the customer to apply through the bank where he/she has his/ her account. A customer can apply through another bank or Post Office.

16. If I apply, am I assured of allotment?

If the customer meets the eligibility criteria, produces a valid identification document and remits the application money on time, he/she will receive the allotment.

17. When will the customers be issued Holding Certificate?

The customers will be issued Certificate of Holding on the date of issuance of the
SGB. Certificate of Holding can be collected from the issuing banks/Post Offices/agents or obtained directly from RBI on email, if email address is provided in the application form.

18. Can I apply online?

Yes. A customer can apply online through the website of the listed scheduled commercial banks.

19. At what price the bonds are sold?

Price of bond will be fixed in Indian Rupees on the basis of the previous week’s (Monday – Friday) simple average price for gold of 999 purity published by the India Bullion and Jewellers Association Ltd. (IBJA). The issue price will be disseminated by the Reserve Bank of India

20. Will RBI publish the rate of gold applicable every day?

The price of gold for the relevant tranche will be published on RBI website two days before the issue opens.

21. What will I get on redemption?

On maturity, the redemption proceeds will be equivalent to the prevailing market value of grams of gold originally invested in Indian Rupees. The redemption price will be based on simple average of previous week’s (Monday-Friday) price of closing gold price for 999 purity published by the IBJA.

22. How will I get the redemption amount?

Both interest and redemption proceeds will be credited to the bank account furnished by the customer at the time of buying the bond.

23. What are the procedures involved during redemption?

The investor will be advised one month before maturity regarding the ensuing maturity of the bond.
On the date of maturity, the maturity proceeds will be credited to the bank account as per the details on record.
In case there are changes in any details, such as, account number, email ids, then the investor must intimate the bank/PO promptly.

24. Can I encash the bond anytime I want? Is premature redemption allowed?

Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after fifth year from the date of issue on coupon payment dates. The bond will be tradable on Exchanges, if held in demat form. It can also be transferred to any other eligible investor.

25. What do I have to do if I want to exit my investment?

In case of premature redemption, investors can approach the concerned bank/Post Office/agent thirty days before the coupon payment date. Request for premature redemption can only be entertained if the investor approaches the concerned bank/post office at least one day before the coupon payment date. The proceeds will be credited to the customer’s bank account provided at the time of applying for the bond.

26. Can I gift the bonds to a relative or friend on some occasion?

The bond can be gifted/transferable to a relative/friend/anybody who fulfills the eligibility criteria (as mentioned at Q. no. 4). The Bonds shall be transferable in accordance with the provisions of the Government Securities Act 2006 and the Government Securities Regulations 2007 before maturity by execution of an instrument of transfer which is available with the issuing agents.

27. Can I use these securities as collateral for loans?

Yes, these securities are eligible to be used as collateral for loans from banks, financial Institutions and Non-Banking Financial Companies (NBFC). The Loan to Value ratio will be same as applicable to ordinary gold loan mandated by the RBI from time to time.

28. What are the tax implications on i) interest and ii) capital gain?

Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961(43 of 1961). Capital gains tax treatment will be the same as that for physical gold.

29. Is tax deducted at source (TDS) applicable on the bond?

TDS is not applicable on the bond. However, it is the responsibility of the bond holder to comply with the tax laws.

30. Who will provide other customer services to the investors after issuance of the bonds?

The issuing banks/Post Offices/agents through which these securities have been purchased will provide other customer services such as change of address, early redemption, nomination, etc.

31. What are the payment options for investing in the Sovereign Gold Bonds?

Payment can be made through cash/cheques/demand draft/electronic fund transfer.

32. Whether nomination facility is available for these investments?

Yes, nomination facility is available as per the provisions of the Government Securities Act 2006 and Government Securities Regulations, 2007. A nomination form is available along with Application form.

33. Is the maximum limit of 500 gms applicable in case of joint holding?

The maximum limit will be applicable for the first applicant in case of a joint holding for the specific application.

34. Are institutions like banks allowed to invest in Sovereign Gold Bonds?

There is no bar on investment by banks in Sovereign Gold Bonds. These will qualify for SLR.

35. Can I get the bonds in demat form?

The bonds can be held in demat account.

36. Can I trade these bonds?

The bonds are tradable on stock exchanges from the date to be notified by RBI. The bonds can also be sold and transferred as per provisions of Government Securities Act.

37. Can I get part repayment of these bonds at the time of exercising put option?

Yes, part holdings can be redeemed in multiples of one gm.

Group B DPC Result

Tuesday, August 4, 2015

Minutes of Central Working Committee Meeting held at Trivandrum (Kerala) on 25th and 26th July 2015

Dear Members, 

As notified, Central Working Committee Meeting of the Association was held at T. M. Krishnaswamy Nagar (Hotel The Capital), Near Trivandrum GPO, Trivandrum on 25th and 26th July 2015 under the president ship of Shri Amrendra Kumar, President. CWC was attended by 17 Circle branches except J&K, Chhattisgarh, Jharkhand, North-East and Uttarakhand. Shri Roop Chand former General Secretary and President Delhi Circle attended the CWC as a special invitee. President declared the house has constituted. CWC Meeting commenced at 10.00 hours sharp on 25/7/2015  with a silent prayer followed by paying homage to our senior leader T. M. Krishnaswamy who was Vice President of CHQ. Shri R. Venunathan Pillai Circle President Kerala Circle welcomed to invitee and CWC members. General Secretary has emotionally explained his personal relations and participation of late Shri T. M. Krishnaswamy in Associations activities. He also enlightened that Association has lost hard and sincere worker. GS expressed his disappointment on the non participation by five circles in this CWC. The meeting was held in cordial atmosphere and healthy deliberations took place on the agenda of the meeting. Discussion on the following one by one issue took place.

1.   Confirmation of the minutes of the last CWC held at Ahmedabad on 7/2/2014.

The minutes of the last CWC was approved unanimously by the house.  

2.   Cadre restructuring of Inspector Posts cadre and merger of ASP cadre in to PS Gr. B cadre.

GS explained the entire developments of submission of cadre restructuring proposal to Directorate. He has informed to the house that CHQ has submitted proposal to Directorate on 20/11/2013 with a request to upgrade 1197 ASPs posts to PS Gr.B cadre and also upgrade the GP of Inspector Posts from Rs. 4200/- to Rs. 4600/-. He further told that the queries raised on the proposal by Directorate on two points were properly and quickly replied by him and thereafter Directorate has invited him for discussion on the issue at Directorate on 28/11/2014. He along with other colleagues attended the meeting headed by DDG (Estt). The issue of cadre restructuring was deliberated in detail and it was clarified by Directorate that the proposal submitted by Association needs to be revisited. The Association, thereafter, proposed to submit revised proposal and accordingly revised proposal was submitted to Directorate on 9/1/2015 by suggesting to upgrade 339 ASPs posts to PS Gr. B in the existing Class-I division/HO, and also upgrade 50% ASPs posts to PS Gr.B in ROs/COs and residual 1651 ASPs will work at their respective posts and retain their pay, GP and Gazetted status till their elevation to PS Gr. B cadre or retirement whichever is earlier. These ASPs will be treated as dying cadre posts. GS further told that Directorate has again raised few queries on the revised proposal and informed him over phone on 8/5/2015 with a direction to submit the Associations say within 3 days to Directorate. He has told to house that the queries raised by Directorate were replied on 11/5/2015 and his reply to queries was appreciated from all the corners of the country. The cadre structuring file was finally prepared by Establishment division of the Directorate and moved to Internal Financial Wing for approval, where 15 queries were raised, few of them were already published on CHQ blog for the information of the members. To clarify the financial implications queries, GS, CHQ President Shri Amrendra Kumar, Vice President Shri Nirmalya Mitra, OGS-II Shri Manjunatha Hubballi, CS West Bengal Shri Arup Seal,  AGS-I Shri P. Ajith Kumar and Shri Roop Chand former GS visited to Directorate from 8/6/2015 to 11/6/2015 and prepared the note on queries raised by IFW and handed over to the Establishment division. To curtail the financial implications of Rs. 9672000/- and other obstacles thereafter if any in the issue, it was decided collectively by GS and his team to surrender 27 vacant posts of IP (PG) as matching savings cost and same was communicated in writing. During the visit they met Hon’ble Secretary (Posts), Member (P) and other higher officers and discussed the long pending vital issue at length. During the course of meeting with Secretary (Posts) on 11/6/2015, she categorically told that department will not surrender any post of Inspector Posts cadre, but will strongly recommend the proposal submitted by Association to Nodal Ministry. All the officers of Directorate assured that there is need of cadre structuring in Inspector posts cadre and department will soon submit the proposal in positive way to Nodal Ministry. GS further told that, department has decided to up-grade 351 posts of ASPs to PS Gr. B cadre and also take up the issue to up-grade the GP of Inspector posts cadre from Rs. 4200/- to Rs. 4600/-. File is pending for approval of Secretary (Posts).

3.   Meeting with Hon’ble Chairman 7CPC and submission of Memorandum.

GS informed that our Association is first one in the country who has submitted Memorandum to 7CPC on 1st July 2014 and they officially issued acknowledgement also. The copies of Memorandum submitted by GS and the acknowledgement received from 7CPC were already published on blog. GS informed that in last AIC committee was constituted by the august house to prepare a strong Memorandum to be submitted to 7CPC. Committee members met at Mumbai on 7/6/2014 to finalize the Memorandum prepared by GS.  GS has thanked Shri P. K. Bisoi, the then CPMG Maharashtra Circle who has provided the conference hall for meeting to the members and spared his valuable time and guidance at the time of finalization of Memorandum. GS further told that Shri Roop Chand former GS,  Shri Ajith Kumar AGS-1, Shri Manjunath Hubballi OGS-II and CS Karnataka, Shri Joseph Rodriguez Treasurer Karnataka Circle helped him in finalization of Memorandum.  

GS also told to house that with the permission of CHQ few members from Bangalore and Himachal Pradesh circles met Members of 7CPC at Bangalore and Shimla where they explained our Associations demands and grievances in short. GS further told that as per his request, 7CPC has officially permitted our Association to place our views before them on 7/11/2014 at Mumbai. He was assisted by Manjunatha Hubballi OGS-II and CS Karnataka, Shri Roop Chand former GS and President Delhi Circle, Shri N. G. Yadagiri CHQ Treasurer and two other local members to meet Chairman 7CPC and its members. During the course of discussion, Chairman told that they have already received our Association’s Memorandum and will look into the demands placed therein. Shri Manjunatha Hubballi has presented presentation (PPT) before 7CPC in detail. 7CPC directed members to abolish the intermediate ASP cadre to maintain parity with other organisation and come up again with result thereof. GS told that matter is already in pipeline at Directorate. Shri Roop Chand former GS also shared the issues discussed in the meeting with members.

4.   Organisational and financial review of the CHQ / Circles.

CWC took review of organization functioning of each circle. GS informed that CHQ took efforts and revived the defunct branch of J&K circle. But despite such efforts J&K and Jharkhand has not taken pains to attend CWC. GS informed that the financial position of CHQ is not so sound. He further informed that circle branches are not remitting 40% due quota to CHQ as required vide Article 39 of our Association’s constitution.  He appealed to all Circle Secretaries to submit their due quota to CHQ in time so that the CHQ could function effectively and GS can visit Directorate frequently to pursue the pending issues. Each Circle Secretary shared his achievements and problems of his circle. GS has taken the note of problems raised by them and assured that CHQ will pursue it.

5.   Ernakulam CAT case – Up-gradation of GP of Inspector Posts from Rs. 4200/- to Rs. 4600/- w. e.f. 1/1/2006.

GS told that total 14 hearings so far held in the case. The up-dation of hearings was time to time published on blog. Final hearing fixed on 21/7/2015 could not held, as both the members of Hon’ble CAT were on leave up to 27th July 2015.  Shri Ajith Kurian former CS Kerala Circle shared his experience in handling of this CAT case and informed to house that he and his team is taking care of the case and likely to be settled in our favour. GS requested to him that CHQ will provide all types of assistance if needed in future.

6.   Senior Postmaster Examination CAT case.

GS informed that Postmaster cadre has came into existence in 2010 and since then Sr. PM Examination could not held due to CAT cases filed at various Benches by individuals or by circle Associations. In all 7 cases were registered at various benches. Out of these, five have already been finalised and two cases at Odisha bench under OA No. 872/11 and 873/2011 by Priyanath Pattanayak and Devi Prasad Nayak respectively are still said to be pending. There present status is not known. GS further told that CAT cases filed at Hyderabad bench were decided in favour of applicants whereas CAT case filed at Chandigarh bench by Punjab and Haryana circle under OA No. 1328/11 was dismissed. GS further informed that DE Division of Directorate has forwarded the copies of judgments of these cases to SPG Division of Directorate to take further action in the matter to allow ASPs to write the examination. The SPG division of Directorate is working on it.

7.   DPC for the promotion to the cadre of PS Gr. B.

GS told that this year Directorate is holding all the DPCs timely. All circles have already submitted requisite documents in person to Directorate. Vacancies for DPC for the year 2015-16 are yet to be calculated. The result of review DPC is awaited. GS further told that he has already requested Directorate to convene first DPC for JTS Gr. A for the year 2015-16 and thereafter the resultant vacancies created should be taken in consideration for holding of PS Gr. B DPC, so that more number of vacancies would be available for ensuing PS Gr. B DPC for the vacancy year 2015-16. GS appealed to all members that whenever any query is raised/communicated by Directorate to circles for supply of any information it needs to be attended on priority basis.  

8.   Inter-circle transfer of Inspector Posts under Rule-38 of Postal Manual Vol. IV.

GS told that whatever request applications received at his end was taken care of. Most of the candidate’s requests were considered by the administration and issued guidelines to all circles on 21/7/2014. GS, President and OGS-II met Member (P) on 10/6/2015 and submitted list of candidates whose request applications are still pending at Circles. The issue was discussed at length and requested to reiterate the instructions dated 21/7/2014 once again to all circles.

9.   Combined seniority list of Inspector Posts cadre.

GS informed that work of preparation of combined seniority list of Inspector Posts cadre was transferred from SPG division of Directorate to SPB Division. GS further informed that since taking over the charge of GS, and continues correspondence on the issue only 3 years (1998 to 2000) seniority lists were circulated by Directorate. Now, SPB Division of Directorate has decided to prepare and circulate pending 10 years seniority lists at a time for which they are going to collect some information from circles. GS appealed to all members to attend the references received from Directorate immediately.

10.       Revised Recruitment Rules of PS Gr. B cadre / Asst. Manager MMS.

GS informed that Revised Recruitment Rules of PS Gr. B cadre was finalized by DOP by suggesting some modifications in eligibility criteria etc. GS also informed that the request of our Association for reduction of quota of General Line category from 6% to 3% was also considered by DOP in the Revised RRs. As regards to Assistant Manager in MMS cadre, he has told that there are only 41 posts in the country and out of which 20 are vacant since last several years. No examination of AMM cadre was held since decade. Therefore in the revised RRs of Asstt. Manager MMS, some changes are expected in eligibility of age criteria and technical education etc.

11.    LDCE for promotion to the cadre of Sr.PM and PS Gr. B

GS told that methodology for holding of centralized departmental examinations for the year 2015 is under consideration at Directorate. Fresh calendar for departmental examination for the year 2015 is also likely to be issued soon. He further told that to conduct PS Gr. B examinations in near future, Directorate has constituted a committee headed by CPMG Karnataka to decide as to whether examination should be conducted off-line or online. The report from committee is awaited. As regards to Sr. PM Examination, the copies of judgement of Hon’ble CAT Hyderabad and Chandigarh benches have already been forwarded by DE Division of Directorate to SPG Division of Directorate for taking decision thereon. GS explained in detail about the share of IP and General Line quota in both the examinations. Through both the examinations General Line category will get share of 52 posts (29 Sr. PM and 23 PS Gr.B). It was decided by the house to go for online examination.

12.       Financial review of CHQ.

CHQ Treasurer has taken the financial review of CHQ and told to house that financial position of CHQ is not healthy and therefore GS and his team is unable to visit frequently to Directorate. GS has appealed all CS to pay their quota timely and that too as per the provisions made in the Association’s constitution.

13.       Any other item with the permission of the Chair.

All Circle Secretaries were given an opportunity to share their circle’s problems if any and all have taken sincerely part and CHQ has taken note thereof with a assurance that it will be taken up with appropriate authorities at right time. All the Circle Secretaries, CHQ Office Bearers and visitors expressed the view that the arrangements made by Kerala Circle were excellent and unique.  

Shri S. Nadakumar Circle Secretary, Kerala Circle, Shri Ajith Kurian former Circle Secretary and their team members have made lavish arrangements for conducting CWC in a grand success. No such staying arrangements, entertainment musical programme and site sine programme in double decker bus were found arranged by any circle since last two decades. CHQ conveys it’s sincere thanks to them as well as to all the CWC Office Bearers. GS especially appreciated the co-operation and support extended by Shri Manjunath Hubballi OGS-II and CS Karnataka circle as well as by Shri P. Ajith Kumar AGS-I and ASP (RB) Postal Directorate from time to time. 

Yours sincerely, 

       Sd/-
(Vilas Ingale)
General Secretary 

Saturday, August 1, 2015

Revenue receipts for Department of Posts up 25% to Rs 11,733 crore in 2014-15

Revenue receipts of the Department of Posts increased to Rs 11,733.13 crore in 2014-15, up 25 per cent from the end of March 2013, Parliament was informed today. 

The receipts stood at Rs 9,366.50 crore in the financial year 2012-13. 

"Owing to the Department's consistent focus on quality improvement and increasing use of technology, the revenue receipts have steadily grown from Rs 9,366.50 crore in 2012-13 to Rs 11,733.13 crore in 2014-15," Minister of Communications and Information TechnologyRavi Shankar Prasad said in a written reply to the Lok Sabha. 

Speed post, which is the flagship express mail product of the department, has also shown increase in revenue from Rs 1,261.50 crore to Rs 1,473.39 crore in the same period, he added. 

DoP handles more than 600 crore mail prices every year. 

"Parcel revenue has increased 37 per cent from 2013-14 to 2014-15, owing to the infrastructure improvement for parcel handling and delivery as well as focus on quality of service delivery," he added. 

In response to a separate query, Prasad said so far, 2,940 post offices have been modernised under Project Arrow. 

"The Department has put in place a Programme Management Governance Structure, which plays a key role in monitoring the IT Modernisation project approved by the government," he said. 

Prasad said the governance structure is four-tiered with an apex inter-ministerial steering committee to review, monitor and guide the progress of the project.

CHQ News - D.A finally calculated @119% from 1st July 2015

Consequent to 3 percent increase in AICPIN(IW) figure of June 2015, D.A. payable for central government employees and pensioners from 1st July 2015 finally calculate @119%. As informed earlier in this blog, Central Govt. will declare another installment of D.A. with effect from 1st July 2015 @ 6%.

CHQ News - Glimpses of CWC Meeting Trivandrum



L to R : Shri R. Venunathan Pillai, President Kerala Circle, Shri Amrendra Kumar CHQ President, Shri Vilas Ingale General Secretary, Shri Roop Chand former-GS and Shri N. G. Yadagiri CHQ Treasurer

CWC Members in the auditorium 







All members gathered at entrance gate of the venue
Shri A. N, Nanda CPMG Kerala Circle addressing to the members during gala dinner

Shri Thomas Lourdraj, DPS (HQ) Trivandrum addressing gathering in entertainment program 

L to R : Shri Rattan Chand Sharma CS HP, Shri Aruldoss CS TN Circle, Shri A.N. Nanda CPMG Kerala Circle, DPS Trivandrum, Shri Vilas Ingale General Secretary and Shri Nandakumar CS Kerala Circle 

All members standing in front of CPMG office Trivandrum 

Site sine program arranged to all members in Double Decker bus 
  
Members with GS in front of venue of the CWC (The Hotel Capital) 
Tour to Zoo in battery run vehicle 
  
L to R : Shri Newton Balakrishan President TN Circle, Shri Ajith Kurian Former CS Kerala Circle and Shri Aruldoss CS TN Cicle