“Forward ever, backward never: onwards with Breaking Through”
The Government has wrongly accepted the recommendation ( 7th CPC MACP), at the same time has been spreading wrong news through the media
 PRESS RELEASE

Reacting to the news item appearing in ‘The Hindu’ of 04th October 2016 relating to the acceptance of the recommendation of 7th Central Pay Commission on Modified Assured Career Progress Scheme (MACPS) and the DoP&T OM dated 27th/28th September 2016, the General Secretary said that while the Government has wrongly accepted the recommendation, at the same time has been spreading wrong news through the media. He said that the Scheme has been existing since 1st September 2008 and is not a new scheme as claimed by the Government.

Dr.Raghavaiah further said that while accepting the 7th CPC recommendations relating to the MACP Scheme for Central Government employees, the Government has totally ignored the agreement reached with the JCM (Staff Side) on 17/07/2012 and 27/07/2012 in the Joint Committee and National Advisory Committee Meetings wherein agreement was reached to maintain the same benchmark as is applicable for filling the vacancies through promotion by selection/non-selection/fitness instead of insisting upon the benchmark ‘Very Good’ recommended by the 6th Central Pay Commission. Thereafter, the DoP&T vide OM dated 01st November 2010 and 04th October 2012 issued necessary instructions for granting MACP to the Central Government employees.

The Federation takes note that the Government while accepting the 7th CPC recommendations relating to financial upgradation under MACP Scheme to its employees has again taken U-turn and had once again fixed the benchmark ‘Very Good’ arbitrarily for granting financial upgradation mainly to deny the legitimate benefit to its employees without any dialogue with JCM (Staff Side) – the machinery setup to deal with the issues of Central Government employees which is totally unjustified.

The Federation strongly opposes the move of the Government for which communications have already been sent by the Federation twice to the Cabinet Secretary on 2nd August and 23rd August 2016 to respect the bilateral agreement reached with the JCM (Staff Side) and restore the decision given vide DoP&T OM dated 01/ll/20l0 and 04/10/2012 without making any change on the settled issue.

The General Secretary, NFIR hopes that the Government would consider the above points and rectify the mistake soon duly restoring the earlier instructions of DoP&T to honor the commitment made to the Staff Side.

04th October 2016

(Dr. M.Raghavaiah)
General Secretary



The Post Bank (India Post Payments Bank) the Prime Minister spoke so affectionately about from the ramparts of the Red Fort shouldn't end up being another public sector entity in an already crowded financial services sector.

Digital India requires not just vanilla bank accounts but widespread ability to make and receive electronic payments. The Post bank, designed as a service platform for the financial services sector rather than a narrow competing entity, can play an important role in fast tracking cashless India. We look here at the first scaled up application of the India stack.

Governments do better facilitating and servicing their corporate than competing with them. The Post Bank funded out of public exchequer, leveraging the network of the post office, reach of the postman and brand value of the Government of India needs to transmit resultant value to the entire industry rather appropriate it by itself.

From the customer point of view, this will translate into walking into a post office (more than 155,000), tapping the postman (more than 300,000) or logging on to a single application on a smart device to transact with a service provider of choice.

For retail financial service providers like banks, payment service providers, mutual funds, insurance companies, pension fund managers, forex service providers and money transfer companies, it will mean extended reach to customers and cost saving on high street presence.

For the Post Bank, a platform approach will have several advantages. For one, it will work from a known position of strength of a common service provider rather than a competing agency, something the public sector is not adept.Second, it will be able to garner numbers in a high volume, low margin business. Third, it will attract foot falls from across the board providing cross-selling opportunities. Click below to know more


Fourth, it will serve a larger public purpose as a publicly funded entity . Fifth, it will be able to leverage consequential market intelligence to design and retail its own products much like a multi brand store attracting eye balls for its own products while retailing those of competitors.

As far as financial inclusion is concerned, resultant economies of scale and business efficiencies will make opening and servicing small accounts viable. Global experience suggests the first ladder of financial inclusion is remittance service, second saving accounts and third access to credit. Analytics flowing from the platform can be leveraged for credit scoring of individuals families. The Post Bank, while not licensed to operate credit services, can support related third-party services.

Two developments make the Post Bank an attractive service platform. The requirement of the entity to be registered as a body corporate and regulated by the RBI will imbibe confidence in other players to use its services without being overawed by dealing with the Government of India. Second, the proliferation of interoperable technology in financial services will obviate the development of supporting technology platforms from scratch.

The micro ATM pioneered by the UIDAI and the UPI of NPCI make for immediate roll-out of interoperable banking solutions. Visa and Mastercard have equally smart ready-to-use solutions.

The suggestion is not to down play the Post Bank. contrary, it will be nothing short of the proverbial game changer as the first mover in the financial services aggregator space. In fact, entry barriers will be high for considerable time before a competitor steps in. Systemically, this could be a major shot at deepening the financial services market, promoting cashless economy and supporting Direct Benefit Transfers.

(The writer is Joint Secretary, Ministry of Finance)