Skip to main content

Cabinet nod to draft ordinance for digital payment of salaries

The Union cabinet on Wednesday approved a draft ordinance to additionally empower states and allow industries to pay wages digitally, through direct bank transfers or by cheque. At present, the 80-year-old law only permits cash payments.

“The government proposes to bring an amendment to Section 6 of the Payment of Wages Act, which will further provide crediting the wages in the bank account of the employees or payment through cheque along with the existing provisions of payment in current coin or currency notes,” a cabinet statement read.

A government official said on condition of anonymity that the cabinet has forwarded the draft ordinance to President Pranab Mukherjee for his assent.

The draft ordinance proposes changes to Section 6 of the Payment of Wages Act of 1936. The section sought to be amended says that “all payment of wages should be made in cash, with a provision enabling employers to obtain written permission of the worker to pay either by cheque, or by crediting the wages to his or her bank account”.

The move will also boost the centre’s efforts to encourage cashless transactions.

The government had introduced the amendment during the winter session of Parliament but failed to get it passed.

“The payment of wages through cheque or crediting it in the bank account of employed persons will reduce the complaints regarding nonpayment or less payment of minimum wages, besides serving the objectives of digital and less cash economy,” the amendment bill said.

The cabinet also approved the sale of part of an 87.70-acre surplus and vacant piece of land at Pimpri in Pune, Maharashtra for meeting the Rs821.17 crore net liabilities of state-owned Hindustan Antibiotics Ltd.

The cabinet committee on economic affairs gave its approval for doubling of the Rajpura-Bhatinda railway line at an estimated cost of Rs1,251.25 crore, expected to be completed in five years.

“The doubling will ease the traffic bottlenecks and will bring more revenue to Indian Railways by capacity enhancement of the route,” the government said.

The cabinet gave its approval to the creation of the Indian Enterprise Development Service (IEDS) under the ministry of micro, small and medium enterprises (MSME). The new cadre will help achieve targets under the Start-up India, Stand-up India and Make in India initiatives.

The new service will be created in the office of the development commissioner of MSME and will help enhance the capacity and efficiency of the organization.

The cabinet also approved the Cadre Review of Indian Telecommunications Service (ITS – Group A). A new post of director general of telecom has been created, while restricting the cadre strength to the current 1,690.

“The decision will result in strengthening of the cadre structure both at the department of telecom (DoT) headquarters and in the field units on the basis of functional requirement. It will also meet the requirement of skilled manpower in BSNL and MTNL, reducing the existing stagnation of ITS officers,” the cabinet statement said.  

22 nd DECEMBER,2016, MINT , NEW-DELHI

Comments

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...