Revised Norms Applicable w.e.f. 01.08.2000

It has been decided to make the following changes in the existing procedure.

1. Interest will be levied on all delayed remittances if the period of delay exceeds 30 days.

2. Interest will be levied on delayed remittances for amount of Rs.1 lakh and above if the delay exceeds 15 days (existing ceiling of Rs.10 lakhs has been reduced)

3. Interest will be levied on Rs.1 lakh and above in respect of Double/Excess reimbursement starting from the 8th day of date of obtaining the excess/double reimbursement ie. date of put-through (existing ceiling of Rs.10 lakhs has been reduced).

4. Effective rate of interest (which will be Bank Rate + 2%) to be levied on delayed remittances and double/excess reimbursement will be notified by RBI twice a year ie. from 1st May and 1st November.

NOTE: CASES WHERE AMOUNT OF PENAL INTEREST WORKED OUT UPTO Rs.100/- (RUPEES ONE HUNDRED ONLY) IN EACH CASE, NEED NOT BE PURSUED WITH THE BANKS FOR RECOVERY.

The rate of interest 10% (8%+2%) w.e.f. 1/8/2000 to 31/10/2001

The rate of interest 8.5% w.e.f. 1/11/2001 to 31/10/2002

The rate of interest 8.25% w.e.f. 1/11/2002 to 30/4/2003

Amount of penal interest on delayed remittances recovered from PSBs during the last four years is as follows:

1998-1999	Rs. 72.98 Lakhs (including arrears)
1999-2000	Rs. 85.24 Lakhs (including arrears)
2000-2001	Rs. 130.00 Lakhs (including arrears)
2001-2002	Rs. 126.13 Lakhs (including arrears)
2002-2003	Rs. 67.08 Lakhs (including arrears)

Monitoring committee meetings are held periodically with the Banks to sort out the problems relating to delay in remittances and collection of revenues. In the year 2002-2003 monitoring committee meetings chaired by Pr. CCA, were held with the Dena Bank at Mumbai, Allahbad Bank at Lucknow and SBI at Chennai. Local meetings are also held by PAOs with the FPBs to sort out day to day problems.