Thursday, 2 February 2012

FINALLY ! Postal Department applies to RBI for banking licence .

Minister for Communications and IT, Mr. Kapil Sibal with MoS, Mr. Sachin Pilot, at the FICCI round table on National Postal policy 2012 , in the capital on Wednesday.

The Postal Department has applied to the Reserve Bank of India for a banking licence, the Communications Minister, Mr Kapil Sibal, said here on Wednesday.
Mr Sibal said he had written to the Finance Minister, Mr Pranab Mukherjee, to expedite the granting of licence.
Speaking on the sidelines of the postal policy round table organised by FICCI, Mr Sibal said, “A national postal policy targeting expansion and modernisation of the postal network would be announced during this year. The Government does not intend to issue licences to courier service companies, but would make it mandatory for them to register.”

Aimed at modernising postal services, the policy is expected to make the department adopt a more financially viable revenue model. It would also provide affordable services at all points in the country as part of its Universal Service Obligation, the Minister said.
The Department is also expecting large-scale private sector participation in providing value added services and extending its product range beyond the current core functions.
“There are tremendous opportunities for the private corporate sector to use its ingenuity to create innovative products and delivery mechanisms through the Indian postal network,” Mr Sibal said.
India currently has 1.55 lakh post offices, 95 per cent of which are located in rural areas.
Source : thehindu dtd 01/02/2012


Labour Bureau, Government of India has announced the All India Consumer Price Index for Industrial workers (AICPI (IW)) for the month of December 2011 as 197. In the previous month (November-2011), AICPI (IW) was 199.

A summary of All India Consumer Price Index for Industrial workers for the months from January 2011 to December 2011 is given below.

Jan 11
Feb 11
Mar 11
Apr 11
May 11
Jun 11
Jul 11
Aug 11
Sep 11
Oct 11
Nov 11
Dec 11

We know that to estimate Dearness Allowance Rate applicable for central government employees, All India Consumer Price Index for Industrial workers (AICPI (IW)) for the previous 12 months are required. So, based on the AICPI (IW) for the months from Jan-2011 to Dec-2011 we can easily estimate the expected dearness allowance for the Central Government employees with effect from 1.1.2012 using the following formula.

Dearness Allowance = (Avg of AICPI for the past 12 months – 115.76)*100/115.76
In the recent past, many were guessing the applicable DA rate with effect from 1.1.2012, using AICPI (IW) for the months from Jan-2011 to Nov-2011 only as the same for Dec 2011 was not announced. Since, the AICPI (IW) for December 2011 is also out last week, there is no need for any wild guess regarding the DA Rate for central government employees from 1.1.2012 any more. The DA rate with effect from 1st January 2012 by entering the AICPI (IW) for the month of December 2011 which is 197, in the relevant field.
Thus, the applicable DA rate with effect from 1.1.12 is estimated to be 65%, which an increase of 7% from the existing DA rate of 58%.

The official announcement by the Government for eligible DA rate for central government employees with effect from 1.1.2012 can be expected in the month of March-2012.