Post office agents in Punjab denied spot commission

About 16,000 small savings agents in Punjab and their families are in distress.

The commission on savings, which they used to get at source at the time of deposits, has been discontinued from June 1, 2005. Now they have to wait for at least three months to get their commission. Industry watchers say investment in real estate, mutual funds and stocks has hit small savings in Punjab, and not paying commission at source has aggravated the problem.

As a result, against the target of Rs 4,200 crore for 2005-06, only Rs 3,317 crore of small savings has accrued.

Talking to Business Standard, Punjab State Small Savings Agents Association President Amrit Pal Sharma said: "Earlier, the Union finance ministry said commission to small savings agents would be paid at source at the time of deposit at the post office itself, from April 1, 2000, to reduce paper work and delay and corruption in paying commission. But, the ministry issued a letter dated May 11, 2000, by which the date of implementation of the new system of payment of commission at source was changed to May 1, 2000."

Sharma added: "But on May 24, 2005, the chief postmaster general, Punjab circle, issued an order saying commission to small savings agents in the Punjab circle would not be paid at source from June 1, 2005. It was further provided that list of commissions would be prepared at post offices since and forwarded to head office and the bills will be checked and payment will be made after 10th of every month. This has made life difficult for thousands of saving agents which depends on commission to meet their both ends meet and also frustrates the conscious decision of the Ministry for reducing paper work in preparation and passing of bills for payment of commission and also for reducing the delay and corruption in payment of commission to small saving agents."

"Also, we had filed a writ petition declaring the order dated 24th May 2005. as arbitrary, unconstitutional and without jurisdiction inter alia on the ground that post master Punjab Circle has no jurisdiction to sit in appeal over decision of government of India and direct the commission will not be paid at source. The order dated 24th May 2005 is discriminatory as all small saving agents in Punjab through out the country are being paid commission at source whereas small saving agents in Punjab Circle has been stopped payment of commission at source. Even the court has directed the order but the ministry of finance has failed to implement it," he added.