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Friday, October 31, 2014

Bank lockers: How much can you entrust them with your valuable deposits?

Swiss banks may no longer be a safe haven for unaccounted money, but even wealth on which tax has been duly paid is not safe in a bank locker. This was reinforced earlier this week when unidentified men dug a tunnel into the locker room of a Punjab National Bank branch in Sonepat, prised open 89 lockers and decamped with the contents.

According to the Reserve Bank of India guidelines, banks are not responsible for the contents of the lockers. A bank only needs to provide for protection of the lockers.

"The relationship between the bank and the locker customer is that of a lessor and a lessee," said Narayan Raja, CEO, Banking Code and Standard Board of India (BCSBI). "Since the contents of the locker are never shared with the bank, it is not responsible for the contents."

According to Section 152 of the Indian Contract Act, a bank is not responsible for any loss or damage to the contents of a locker.

Even the valuables deposited in lockers are not insured. "A bank does not have the ownership or knowledge of the contents of the locker and hence does not have any insurable interest in the matter," said a spokesperson of Axis Bank.

The law clearly appears loaded against the customer in this case. The customer is not only required to prove that the locker was robbed but also submit evidence of the extent of the loss. In the Sonepat incident, it won't be easy for the customers to provide evidence of the losses they claim even as there is clear evidence that the lockers were indeed robbed.

However, customers can claim some compensation if they can prove that the loss or damage happened due to negligence on part of the bank. "If the negligence by the bank is proved, or a bank employee was involved (in the theft), it becomes a vicarious liability and the bank is liable to pay compensation," said Mumbai-based advocate VT Gokhale.

But the compensation may not cover the full loss. In one case decided by the banking ombudsman, it was established that the locker had been broken into. However, the maximum compensation that the ombudsman could award wasRs 10 lakh although the customer had claimed a loss of Rs 23 lakh.

Consumer courts have also come to the rescue of customers in cases where negligence is proved.

In July 2007, the National Consumer Disputes Redressal Commission ( NCDRC) awarded compensation to a customer after termites ate into currency notes and important papers kept in the bank locker. It ruled that "the bank was bound to ensure that the respondent's locker remained safe in all respects".

There is not much that a customer can do to avoid such problems. Reading the terms and conditions of the locker agreement before hiring one is always a sensible precaution, though.

Avoid entities that make customers sign a declaration saying that the bank will not be liable for loss of goods in the locker. Similarly, check that the locker is in good physical condition and is not placed in a basement.

Don't take lockers in the lower rows and do make sure that the cash and documents are sealed in an airtight and watertight plastic pouch or bag.

Source:-The Economic Times

Processing of files referred to DOPT for advice/clarification - procedure to be followed.

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'Indian postal banking has lots of scope due to connectivity'-Union Minister Ravi Shankar Prasad

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Statue of Unity, an Icon of India: a marvel beyond imagination-Special Feature:Sardar Patel-National Unity Day

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Posting in JTS Cadre in Odisha Circle

Shri Hari Pada Kora a JTS officer of Indian Postal Service Group-A from West Bengal Circle allotted to Odisha Circle vide Directorate Memo No.4-3/2013-SPG dated 16-10-2014 is posted as Sr. Superintendent, RMS ‘N’ Division, Cuttack w.e.f. 01-12-2014 vide Circle Office Memo No.ST/2-34(2)/2012 dated 30-10-2014. 

PA/SA Direct Recruitment Examination-2014- Publication of result regarding

There is possibility of publication of result of PA/SA Direct Recruitment Examination-2014 of Odisha Circle in the second week of November-2014. 

Functional email IDs of CO/RO/DA(P) Offices of Odisha Circle

Designation  Official Position 
e-mail ID
CPMG, Odisha Circle, Bhubaneswar
PMG, Berhampur Region, Berhampur
PMG, Sambalpur Region, Sambalpur
Director of Accounts(Postal), Cuttack
DPS(HQ), O/o CPMG, Odisha Circle, Bhubaneswar
DPS (BD & Mails), O/o CPMG, Odisha Circle, Bhubaneswar
DPS, O/o PMG, Sambalpur Region, Sambalpur
APMG (Vigilance/Investigation), O/o CPMG, Odisha Circle, Bhubaneswar
AD(Staff), O/o CPMG, Odisha Circle, Bhubaneswar
AD(Legal/Technical), O/o CPMG, Odisha Circle, Bhubaneswar
AD(Technology Operation), O/o CPMG, Odisha Circle, Bhubaneswar
AD(BD), O/o CPMG, Odisha Circle, Bhubaneswar
AD(PMU), O/o CPMG, Odisha Circle, Bhubaneswar
AD(Mail), O/o CPMG, Odisha Circle, Bhubaneswar
AD(Accounts), O/o CPMG, Odisha Circle, Bhubaneswar
AD(Recruitment), O/o CPMG, Odisha Circle, Bhubaneswar
AD(Building/MM), O/o CPMG, Odisha Circle, Bhubaneswar
AD(FS), O/o CPMG, Odisha Circle, Bhubaneswar
AD(Est), O/o CPMG, Odisha Circle, Bhubaneswar
AD(OL), O/o CPMG, Odisha Circle, Bhubaneswar
DDM(PLI), O/o CPMG, Odisha Circle, Bhubaneswar
Manager(Project Arrow), O/o CPMG, Odisha Circle, Bhubaneswar
AAO(Budget), O/o CPMG, Odisha Circle, Bhubaneswar
AD(PG), O/o CPMG, Odisha Circle, Bhubaneswar

Thursday, October 30, 2014

Austerity drive: No first class air travel for bureaucrats

New Delhi, Oct 30 (PTI) Unveiling an austerity drive to trim fiscal deficit, the government has banned first class air travel for bureaucrats, meetings in five-star hotels and purchase of cars while freezing new appointments.

The measures that are aimed at cutting non-plan spending by 10 per cent includes a ban on filling of vacant posts to reduce fiscal deficit to a 7-year low of 4.1 per cent of GDP.

Government Committed to Increase Savings Rate in the Country

National Savings Institute (NSI), Ministry of Finance, Government of India jointly celebrated here today the World Thrift Day, in collaboration with World Savings & Retail Banking Institute (WSBI), Brussels. In his message on this occasion, the Prime Minister Shri Narendra Modi said that “Thriftiness teaches us to be more modest and restrain ourselves in using scarce resources as well as provide support to the developmental efforts by mobilization of resources through National Savings Schemes”. The Union Finance Minister Shri Arun Jaitley in his message stated that “ It should be the endeavour of all the agencies engaged in mobilization of savings to ensure that the savings movement is taken to the farthest corners of our country”. 

Speaking on the occasion, Shri G.S. Sandhu, Secretary, Department of Financial Services, Government of India said that the Government of India is committed to boost the savings rate in the country and he also informed that “Pradhan Mantri Jan- Dhan Yojana (PMJDY)” a massive Financial Inclusion Mission has been launched by the Government. It will bring unbanked section of the society into formal financial sector. It was highlighted that various steps have been taken by the banks in this direction. These include opening of basic savings account with zero balance and providing of micro insurance products to the account holders. Beneficiaries would get Rupay Debit Card having inbuilt accidental insurance cover of Rs. 1 lakh. It was highlighted that Department of Posts may also leverage technology and its tremendous reach in this Mission. 

Earlier speaking on the occasion, Dr. Rajat Bhargava, Joint Secretary (Budget), Department of Economic Affairs, Ministry of Finance, Government of India told that two new products will be launched soon by the Government. These will be of tremendous significance in increasing the savings rate and giving more choices to small savers. It was further stated that time has come to look for a change and means to provide a safety network in the shape of new products to the young customers. 

Department of Posts informed about the modernization measures being taken by them. Ms. Fiona Joyce, Head of International Relations, World Savings Bank Institute (WSBI) assured all cooperation with India in enhancing the savings rate in Indian economy. 


Expenditure Management - Economy Measures and Rationalisation of Expenditure

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