IBA Circular - Subsidizing MDR Charges On Debit Cards

Subsidizing MDR charges on Debit Cards/BHIM UPI /AcPS transactions of value less than or equal to Rs.2000/-

(To be published in the Gazette of India, Extraordinary Part I, Section 1)

GOVERNMENT OF INDIA

Ministry of Electronics and Information Technology

New Delhi, the 27th December, 2017

NOTIFICATION

Subject: Subsidizing MDR charges on Debit Cards/BHIM UPI /AcPS transactions of value less than or equal to Rs.2000/-

No. 6(19)/2017 – DPD -1

1) The Digital India Programme envisions transforming India into a digitally empowered society and knowledge economy by making available digital infrastructure; digital governance and digital services to every citizen. Promotion of digital governance and digital services to every citizen. Promotion of digital payments ecosystem is an essential aspect of the Digital India programme and has the potential to transform India’s economy and extend inclusion of financial services to all those who remain excluded.

2) Finance Minister in his Budget Speech on February 1, 2017 had announced a target of 2,500 crore digital payment transactions for FY, 2017-18.

3) In the digital payments ecosystem, merchants play a very crucial role especially in a country like where nearly 90% of merchants are from the unorganized sector in the form of small grocery stores, local outlets, etc. Besides, there are vendors, auto/taxi drivers etc., who constitute a large share of unorganized merchants. The transaction amount at each of these merchants is generally small.

4) In the Debit Card/BHIM UPI/Aadhaar-Pay payment eco system, when any payment is made at a merchant Point of Sale (POS) through a POS machine or QR “scan & pay” or online mode of payment, Merchant Discount rate (MDR) charge is payable by the merchant to his bank (Acquirer). A portion of this is shared by the acquirer bank with the card issuing bank and the card network operator.

5) RBI has issued a directive on 6th December, 2017 revising MDR applicable for debit card transactions which will be effective from 01.01.2018 wherein merchant category wise differential MDR rates have been proposed for transactions.

6) It has been decided by the Government to reimburse the MDR charges on small transactions which are less than or equal to Rs. 2000/- in value so that such digital payment transactions are promoted. The MDR on such transactions for the merchant will effectively become zero and hence they will come on par with cash transactions. The salient features of the scheme are as follows:-

i) MDR applicable on Debit Card/BHIM UPI/Aadhaar-Pay transactions less than or equal to Rs. 2000/- in value will be borne by Government for a period of two years with effect from 1st January 2018 by reimbursement of the same to the acquirer banks so that no MDR is payable by the merchant in respect of such transactions. Accordingly, the banks shall not charge any MDR from merchants for all eligible transactions under this scheme and consequently the consumers will not be overcharged citing MDR as a reason.

ii) No MDR will be applicable in case of transaction value less than or equal to Rs. 2000/-. However, for transaction value above Rs. 2000/-, MDR would be applicable on the entire transaction value. For example, no MDR will be applicable in case of a transaction value of Rs. 1800 and in respect of a transaction of Rs.2300/- MDR would be applicbale on the entire transaction value of Rs.2300/-.

iii) Each acquirer bank has to ensure that in accordance with the relevant RBI instructions, there should be no “bundled” agreement with the merchants covering both debit cards & credit cards.

iv) In the line with the RBI instructions dated 6.12.2017, the agreements should include a clause that MDR charges should not be passed on by the merchants to the customers while accepting payments through debit cards / BHIM UPI / Aadhaar Pay.

v) Each acquirer bank will be required to submit their respective reimbursement claims in the format to be laid down.

vi) Such claim shall be accompanied with a certificate that the share of the MDR charges that is due to the issuer bank and the card network operator have been paid in full and the share of the acquirer bank has been clearly identified.

vii) For every quarer the acquirer banks should submit a report duly certified by their statutory auditors regarding the volume and value of the debit card / BHIM UPI / Aadhaar Pay transactions (showing on-us and off-us transactions distinctly)

viii) Along with the claim, the acquirer banks should submit to the RBI, a certificate from their auditor confirming that with respect to the claim under examination, MDR has neither been charged from the consumer by the merchant nor charged by the bank from the merchant in respect of the applicable low value transactions.

ix) The Scheme is applicable to banks having operations in India and transactions done in India.

x) The Committee set up to look into the issues relating to reimbursement of MDR to the acquirer banks with effect from 1.1.2018, has examinted the inputs from Indian Banks Association (IBA) and leading acquirer banks and has suggested a cap of 0.40% of value of total debit card transactions less than or equal to Rs.2000/- with regard to reimbursement of MDR on such low value transactions for a period of one quarter with effect from 1.1.2018. The committee has also recommended that a detailed consultative process for the reimbursement may be worked out.

xi) Therefore, for a period of one quarter starting from 1.1.2018 there will be a cap on MDR reimbursable to the acquirer banks which will be at 0.40% of the total value of the debit card / BHIM UPI / Aadhaar Pay transactions less than or equal to Rs.2000. If felt necessary this cap could be revisited thereafter.

xii) The reimbursement mechanism in respect of such low value transactions would be evolved through a consultative process involving the RBI, IBA and banks. Thereafter, the procedure for quarterly reimbursements of MDR to the Acquirer banks will be worked out and communicated to all concerned.

7) The banks are requested to ensure that the transition to this new scheme of MDR reimbursement for low value transactions w.e.f. 1.1.2018 is done smoothy without any hitch.

(Gopalakrishnan S.)

Joint Secretary

Tel: 24363075

Email:gopal@meity.gov.in

Authority: www.iba.org.in

Drastic Reduction In Budgetary Support To Ordnance Factories – BPMS

Drastic reduction in Budgetary support to Ordnance Factories – BPMS

REF: BPMS / MOD / Budget / 186 (8/1/R)

Dated: 10.02.2018

To
Smt. Nirmala Sitharaman,
Defence Minister,
Government of India,
South Block, New Delhi

Sub :- Drastic reduction in Budgetary support to Ordnance Factories

Hon’ble madam,

With due regards, I would like to bring the following for your kind personal intervention at the earliest please:-

We were not surprised on your statement speaking on the eve to mark 90 years of the setting up of leading industry body FICCI on 14.12.2017 when you said: “This may be a proper and suitable occasion to say that I am doing a major review of the ordnance factories, to make sure we understand where they are, what is it that they have to be given, are they going to be in a position to be joint venture partners for people trying to benefit from transfer of technology… so OFBs (ordnance factory boards) are also being looked into.” 

But we are consternated to note that all of a sudden the government has drastically cut down the Budgetary support of the Ordnance Factories, both for the Revised Estimates for the year 2017-18 and the Budgetary Estimates for the year 2018-19. In the current year Value of Issue for Army was planned at Rs. 14496 crore which has been reduced to Rs. 11419 crore (reduction by 21.22%). Budget Estimate for the year 2018-19 indicates reduction from Rs. 14872 crore to Rs. 11743 crore for issues to Army. 

Due to this, spares of ‘A’ Vehicles and Artillery Guns, sighting Systems and Electronics, General Stores and Clothing, Small Arms cannot be supplied to Army. This will have a cascading adverse effect on the capacity utilization of concerned 12 Ordnance Factories, pay pocket of employees and society at large.As a major stakeholder, this development is being view with great concern as it directly and brutally affects not only the Defence Production sector per se, but the war preparedness of the Nation too. 

In this connection we seek to bring to your kind attention various correspondence of this Federation wherein we have reiterated the fact that depending on the Private Sector on critical supplies have been a failure till date and will continue to be so in the future too, after all, this sector cannot just perform on the single point agenda of “return on investment”, the mainstay of the private enterprises.Suffice to mention once again that the private sector can only make sound & fury but cannot deliver due to the vagarity of the situation prevalent in defence purchases. 

It is worth to mention here that erstwhile Defence Minister, Shri Manohar Parrikar had been encouraging the Ordnance Factories’ employees/organization as they ensured defence production upto Rs 14,000 crore in the financial year 2015-16. He noticed that the output of the ordnance factory had improved for the first time by 17 per cent. It was stagnant for four to five years and hovering around Rs 10,000 to Rs 11,000 crore.

 He used to say, “Ordnance Factories have achieved new milestones in production of ammunition and defence weapons.These defence establishments have a bright future for feeding defence products for security of the nation. Now, ordnance factories are eyeing production of Rs 20,000 crore in near future,”The drastic reduction in Budgetary support, it is apprehended, will entail stoppage of supplies of various critical spares, general items, electronic items and even small arms and ammunitions, directly affecting the work load of more than a dozen factories and thousands of workmen.

In view of the above, we seek your kind personal intervention in the matter with an request to restore the budgetary support to its original state to avoid a major collapse of supplies which may eventually cause impediment to the war preparedness of the Nation.

An immediate action in the matter is therefore solicited.

Thanking you in anticipation.

Sincerely yours

(MUKESH SINGH)

Secretary/BPMS &

Member, JCM-II Level Council (MOD)

Source: BPMS

Menstrual Hygiene Benefit For Women Employees

Menstrual Hygiene Benefit For Women Employees

There is no such proposal for grant of any menstrual leave or introduction of any legislation in this regard. However, under the centrally sponsored scheme of Rashtriya Madhyamik Shiksha Abhiyan (RMSA), activities such as adolescent health awareness programme for girls, provision of separate toilet blocks for girls as part of schools and installation of incinerator machine and sanitary napkin & vending machine for girls at schools and girl’s hostels are undertaken for general hygiene management. 

National Council of Educational Research and Training (NCERT) has developed syllabus on health and physical education for classes I-XII as a follow up of National Curriculum Framework, 2005, which provides adequate space for menstrual hygiene.Ministry of Health and family Welfare is implementing the scheme for Promotion of Menstrual Hygiene for Adolescent Girls residing primarily in rural areas of the country. 

Adolescent girls are provided with sanitary napkins at subsidized rates by Accredited Social Health Activists (ASHA’s) within the community and through the platform of Government and Government aided school. Ministry of Drinking Water and Sanitation has also developed National Guidelines on Menstrual Hygiene Management (MHM) which aims to support all adolescent girls and women.

The above information was given by Union Minister of State for Women and Child Development Dr.Virendra Kumar in a written reply in Lok Sabha on 9.2.2018.

PFRDA - Age Limit To Join NPS

Age Limit for NPS

Vide PFRDA (Exits and Withdrawals from National Pension System) Second Amendment Regulations, 2017, dated 6th October, 2017, the Pension Fund Regulatory and Development Authority (PFRDA) has permitted any Indian citizen who is in the age group of 18-65 years to join the National Pension System (NPS) on voluntary basis. As informed by PFRDA, a total of 1056 persons between the ages of 60-65 years have joined up to 31st January, 2018.

NPS is a contributory pension scheme available to the Indian citizens between the ages of 18-65 years on voluntary basis. There will be no financial burden on Government due to increase in the eligibility age of joining NPS from 60 to 65 years because Government doesn’t pay any contribution for private employees and also Government employees who join the NPS after the age of retirement at 60 years.

Mr.Venkaiah Naidu - Discipline, Training And Skilling Are Crucial For Every Profession

Discipline, Training and Skilling are Crucial for Every Profession: Vice President

Vice President’s Secretariat

Discipline, training and skilling are crucial for every profession: Vice President

Felicitates former CM of AP, Shri K. Rosaiah

The Vice President of India, Shri M. Venkaiah Naidu has said that discipline, training and skilling are crucial for every profession. He was addressing the gathering after felicitating the former Chief Minister of Andhra Pradesh and former Governor of Tamil Nadu, Shri K. Rosaiah, in Hyderabad today. The Deputy Chief Minister of Telangana, Shri Mohammad Mahmood Ali and other dignitaries were present at the occasion. 

Talking about Shri Rosaiah, the Vice President said that his commitment and dedication are inspiration of budding politicians. People in Public life must behave responsibly and act as role models for others, he added.

The Vice President expressed concern over the frequent disruptions in Parliament and state legislatures. He further said that such a trend will only weaken the system and is not good for democracy. A wider debate is needed on the way Parliament and state legislatures are functioning, he added.

The Vice President said that illiteracy, hunger and discrimination are a major concern. It is the responsibility of the leadership of the day to find solutions to these problems, he added.

Source: PIB News

PCDA Circular 198 - Stoppage Of Cash Disbursement To Defence Pensioners

 PCDA Circular 198

Stoppage of Cash Disbursement to Defence Pensioners

Sub: Stoppage of Cash Disbursement to Defence Pensioners.

As per existing provisions, disbursement of defence pension should be made by crediting the amount of pension to bank account of pensioners. However, it is noticed that some PDAs (other than banks) are still making payment of defence pension through cash disbursement.

Cash Disbursement by the Pension Disbursement Authorities has been viewed seriously by the Ministry and it has been strongly recommended that the cash disbursement of pension should be stopped immediately and same should be credited to pensioner’s bank account with immediate effect.

In view of the above, all the PDAs are advised to suggest their defence pensioner who are receiving defence pension in cash from them, to open bank account in authorized Banks and payment of defence pension be credited to that account only.

All the Pension Disbursement Authorities are further advised to ensure that no cash disbursement of defence pension is made by them.

sd/-

(Subhash Kumar)

DCDA(P)

Authority: www.pcdapension.nic.in

House Building Advance Interest Rebate As Per 7th CPC

House Building Advance Interest Rebate As Per 7th CPC

Small Family Norms in House Building Advance Rules 2017 as per the recommendations of 7th CPC

Government of India

Ministry of Housing & Urban

Housing – III Section

Nirman Bhawan, New Delhi,

Dated 31.01.2018

Office Memorandum

Subject: Small Family Norms in House Building Advance Rules-2017 as per the recommendations of 7th CPC— reg.

The undersigned is directed to invite attention to Ministry of Finance’s 0M NO. 12(4)/2016-EIII.A dated 7th July 2017 on above mentioned subject and to say that interest rebate available to HBA beneficiaries for promoting small family norms shall cease to exist with effect from 01.07.2017.

(Shailendra Vikram Singh)

Director(IFD)

Authority: www.pcdapension.nic.in

MOHUA - Migration Of Home Loan To Revised House Building Advance

Migration of Home Loan to Revised HBA – Ministry of Housing & Urban Affairs

Interest bearing advances/ Seventh Central Pay commission on migration Of existing government employees who have already taken Home Loans from Banks’ other Financial Institutions

1-17011/11(4)/2016-H.III

Government of India

Ministry of Housing & Urban Affairs

Housing-III Section

Nirman Bhawan, New Delhi,

Dated:31.01.2018

Office Memorandum

Subject: Interest bearing advances/ Seventh Central Pay commission on migration Of existing government employees who have already taken Home Loans from Banks’ other Financial Institutions — reg.

Kind attention is invited to para 2(viii) of this Ministry’s OM. No. l- 17011/11 (4)/2016-H.III dated 09.11-2017 on the above-mentioned subject regarding fulfilment of extant conditions, extant conditions are clarified as follows.

a) Before granting such House Building Advance. the Head of the Department

i) Should satisfy himself that the home loans were taken by the government employee entirely for purpose of construction / purchase of new house/ flat.

ii) Should ensure that the House Building Advance sanctioned is to tie amount of loan still due to be repaid by the government employee

b) House Building Advance can be availed towards repayment of bank loan taken for the purpose of construction/ purchase of new house/ flat.

C) Employee shall be eligible for grant Of House Building Advance on the date she obtained loans from banks and other financial institutions, irrespective of whether they applied for House Building Advance before raising he loan.

d) House Building Advance fry repayment of loans Shall be granted to the Eligible employees in one lump sum. However, the Government employee shall produce the HBA Utilisation Certificate within one month the date of release of HBA

e) Employee has to satisfy tie other provisions of the House Building Advance Rules -2017.

(Shailendra Vikram Singh)

Director(FD)

Authority: www.mohua.gov.in

Twenty Nine Cases Resolved In The Second Pension Adalat Within Few Hours

Twenty Nine Cases Resolved In The Second Pension Adalat Within Few Hours

Ministry of Personnel, Public Grievances & Pensions

29 cases resolved at the Second ‘Pension Adalat’

Use of technology improves Grievance redressal: Jitendra Singh

The Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr Jitendra Singh attended the second ‘Pension Adalat’ here today. The Pension Adalat was organized by the Department of Pension & Pensioners’ Welfare. The objective of the Pension Adalat was to provide on-the-spot resolution of unresolved grievances and also to reduce the delays in the settlement of legitimate dues of the pensioners

Addressing the Pension Adalat, MoS, Shri Jitendra Singh congratulated the Department of Pension & Pensioners’ Welfare for successfully conducting the second ‘pension Adalat’ where out of 31 grievance cases 29 were resolved within few hours of hearing. He said that technology can play a vital role in facilitating the pensioners in disposing off their cases and for speedy redressal system for them.

He added that earlier Department of Pension & Pensioners’ Welfare is now a days in the news for all good reasons as it has done a lot good to the old pensioners. It has brought smile to the pensioners faces by resolving their cases quickly and amicably.

Appreciating the Centre Government’s initiatives under the leadership of Prime Minister, Shri Narendra Modi for older generation in the field of pension and health, he said , it has brought changes in society where old people feel neglected. He also suggested for starting a helpline by the Department of Pension & Pensioners’ Welfare for the pensioners in resolving their problems.

In this Pension Adalat 34 pension grievances cases were listed and the various Stakeholders from Ministries, Departments, Banks, and CPAO have been called upon to redress the issue on spot. The issue includes revision of Family Pension, Commutation of Pension, final settlement of GPF, Fixed Medical Allowance etc.