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Tuesday, September 24, 2013

Aadhar Card not mandatory for benefits : Supreme Court

The Supreme Court has ordered the government not to withhold any social benefits from those who are yet to get the Aadhar card and not to issue the unique identification card to illegal immigrants. 

"No benefit of service shall be denied on account of non-possession of Aadhar, and no illegal immigrants would be issued Aadhar," a Supreme Court bench said in an interim order on Monday while dealing with a public interest litigation that challenged the scheme's constitutional validity and the indiscriminate manner in which the government was issuing the card. 

The Aadhar or UID scheme, steered by former Infosys Technologies co-chairman Nandan Nilekani, was seen as the first step towards weeding out those undeserving of subsidies. 

Some states such as Delhi had even attempted to make it mandatory for availing subsidies. 

But a SC bench, comprising Justices BS Chauhan and SA Bobde, has thwarted any such attempt when it directed all states and union territories not to link subsidies and social welfare benefits to the possession of Aadhar cards. 

The central government, through Solicitor General Mohan Parasaran and Additional Solicitor General L Nageshwar Rao, said the Aadhar was purely voluntary and denied all the charges raised in the PIL filed by retired Karnataka High Court judge KS Puttaswamy. 

The petition claimed that different governments have linked social benefits to Aadhar which resulted in many people being denied these benefits. It cited several examples such as Maharashtra paying salaries to teachers only into Aadhar card-linked bank accounts and such cards being made mandatory in Jhakhand for registration of marriages. 

"The linkage of Aadhar numbers with various government benefits and services, such as food security, LPG, Provident Fund etc makes enrolment and obtaining of such cards mandatory, falsifying government claims that they were voluntary," it said. 

Represented by senior lawyer Anil Divan, the petition also claimed that Aadhar cards are being issued indiscriminately to all, including illegal immigrants, posing a huge security risk to the country. 

It claimed that a law brought in to implement it had been rejected by a parliamentary standing committee on finance. Hence, the scheme lacked any legislative backing. 

The whole process was rushed through vide an executive order for political ends, the petition alleged. 

The PIL also claimed that the UID was in violation of Article 21, right to life guaranteed by the Indian Constitution, as it was against a person's right to privacy. The process of getting Aadhar entails biometrics such as finger printing and iris recognition. Courts in the US and UK have held collection and retention of such biometric data to be violation of an individual's right to privacy, it said.

Source : Economic Times

Saturday, September 21, 2013

Nationwide banks strike on 25 September 2013

The protest is against the Government’s proposal to merge public sector banks. They are also against the merger of Associate Banks with State Bank of India (SBI).
The All India Bank Employees Association (AIBEA) and the Bank Employees Federation of India have called for an all-India bank strike on September 25 to protest against the Government’s proposal to effect mergers among public sector banks. They are also against the merger of Associate Banks with State Bank of India (SBI).

“More and more branches have to be opened by all all banks to reach the people. But the Government’s policy is misdirected. It wants to consolidate the public sector banks while the need is to expand them,” opined the bank staff unions. Criticising the proposed handing over of licences to big industrial and business houses to launch banking operations, the unions said pre-nationalisation, all banks were in private hands and their track-record was only well known to the country.
 It is likely that the banks strike will materialise on 25th September.

Thursday, September 19, 2013

SBI increases base rate to 9.80 per cent, makes loans costlier

The country's largest lender, State Bank of India on Thursday said it increased its base rate, or the minimum rate of lending, to 9.80 per cent, a day ahead of the RBI's policy review. 

"State Bank of India has revised thebase rate by 0.10 per cent from 9.70 per cent per annum to 9.80 per cent," it said in a statement. Retail term deposit rates have been revised upward, it said. 
SBIis the first major state-run bank to hike lending rates after short-term rates rose as a result of the Reserve Bank of India's liquidity tightening moves announced in July. The decision comes on the eve of the mid-quarter review of the monetary policy.

According to watchers, new RBI Governor Raghuram Rajan has been given some room to take an accommodative stance after the US Federal Reserve surprisingly delayed the tapering of liquidity infusion. 

SBI also increased the spreads on auto and home loans by as much as 0.20 per cent, which will affect new borrowers. 

Home and auto loan borrowers typically pay a margin, or a spread, above the base rate, which is arrived at as per the risk and quantum of borrowing. 

The bank has hiked rates for loans under the benchmark prime lending rate, an older system of computing interest rates, to 14.55 per cent from 14.45 per cent. The lending rate hikes are effective from today, it added. 

A senior bank official said the decision to increase rates was taken by the asset liability committee, which met late last evening. 

"There has been an increase in our cost of funds and the pressure will only increase further as we enter the festive season, which increases the requirement for liquidity," the official told media. 

New housing loans under Rs 30 lakh will come at 10.10 per cent as against 9.95 per cent earlier, while interest rates on auto loans will go up to 10.75 per cent, the official said.

Source : Economic Times

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