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23/12/2008

New HBA policy being delayed

New HBA policy being delayed

The economic downturn seems to be delaying the announcement of a new home loan policy for Central Government employees as recommended by the Sixth Central Pay Commission (CPC).

Known as the house building assistance (HBA), it’s a key interest-bearing advance given by the government to its employees to construct/acquire house/flats of their own.

The HBA is given to all permanent employees, members of All India Services (IAS, IPS & IFS) deputed to the Central government, public sector undertakings (PSUs) under control of the Centre, international organisations, autonomous bodies etc. The advance is to assist acquiring a plot and constructing a house thereon, building a new house on a plot already owned singly or jointly with spouse, enlarging living accommodation in a house, purchase of a ready built house/flat etc.

According to existing rules, the cost of the house (excluding cost of land) should not exceed 134 times the basic pay (and dearness pay taken together) subject to a maximum of Rs 18 lakh and a minimum of Rs 7.5 lakh.

Although this advance is interest-bearing, it has an inherent subsidy since interest is has to be paid only after the principal has been repaid and simple interest is chargeable on the advance. The rates of interest, therefore, are somewhat lower than existing market rates.

The Sixth Central Pay Commission in its report said: “It is desirable to provide only for the element of interest subsidy and make available various interest bearing advances to government employees through arrangements with public sector banks. This will not only give the government employee the freedom to approach the specified bank for a loan but would also simplify the existing procedures saving a lot of administrative work which is presently being done in government offices for grant of loans and servicing thereof.”

The CPC recommended the government should enter into an agreement with leading PSU banks to extend this facility at pre-determined competitive rates to its employees. The employee shall take the loans/advances directly from the bank with the approval of the sanctioning authority in the government and repay instalments directly to the bank.

The Sixth CPC also said: “The eligibility for taking the advances should also be removed because the repaying capacity would, in any case, be considered by the concerned bank at the time of processing the loan application. This will also extend to the ceiling of Rs 18 lakh presently prescribed on the cost of house for purposes of house building advance. Therefore, this ceiling should also be removed.”

But this policy has not been implemented till date. The Ministry of Finance in a notification dated October 24 said: “The implementation of the recommendations of the Sixth Central Pay Commission relating to interest bearing advances granted to government employees is under consideration of the government. Meanwhile, pending finalisation of the new arrangement, the existing provisions for interest-bearing advances to purchase motor car, motorcycle, scooter, moped and personal computer would continue to be in operation.” But it was silent on the HBA.

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PME Due Date

Master Circular No. 25



Copy of Railway Board’s letter No. 69/H/3/11 dated 06.12.1974



Subject: Implementation of the Recommendations of the Visual Sub-Committee.



6. Periodical re-examination of serving Railway Employees:



6.l. In order to ensure the continued ability of Railway employees in Classes A l, A 2, A 3, B l and B 2 to discharge their duties with safety, they will be required to appear for re-examination at the following stated intervals throughout their service as indicated below:



6.1.1. Classes A l, A 2 and A 3 —At the termination of every period of three years, calculated from the date of appointment until they attain the age of 45 years, and thereafter annually until the conclusion of their service.



Note: (l) The staff in categories A l, A 2 and A 3 should be sent for special medical examination in the interest of safety under the following circumstances unless they have been under the treatment of a Railway Medical Officer.



(a) Having undergone any treatment or operation for eye trouble irrespective of the duration of sickness.



(b) Absence from duty for a period in excess of 90 days.



(2) If any employee in medical category A has been periodically medically examined at any time within one year prior to his attaining the age of 45, his next medical examination should be held one year from the due date of the last medical examination and subsequent medical examination annually thereafter.



If, however, such an employee has been medically examined, at any time earlier, than one year prior to his attaining the age of 45, his next medical examination should be held on the date he attains the age of 45 and subsequent medical examination annually thereafter.




Ammendment: It was ammended in 1993 as below



Age Group PME Due



Age 00-45 every 4yrs



Age 45-55 every 2yrs



Age 55-60 every year
Details:-
As per Rly Bd's Guideline of Medical Exam issued vide LNo. 88/H/5/12 dated 24-01-1993

a) PME would be done at the termination of every period of 4 years from date of appointment / Initial medical Exam till the date of attainment of age of 45 years, every 2 years upto 55 years & there after annual till retirement.
b) Employees who has been periodically examined at any time within 2years prior to his attaining the age of 45years would be examined after 2years from the date of last PME & subsequent PME for every 2years upto 55years age.Of

NRMU 4 you
SMLokhande





6.1.2. Classes B-1 and B-2—On attaining the age of 45 years, and thereafter at the termination of every period of five years.