THIS MEMORANDUM OF UNDERSTANDING (hereinafter referred ...

THIS MEMORANDUM OF UNDERSTANDING (hereinafter referred to 

as MOU) made and executed at 18 th of May 2009 

BETWEEN 

Department of Rural Development, Government of Karnataka(Name of State) 

through Principal Secretary, Rural Development, Government of Karnataka, (which 

expression shall include his representatives, agents, etc. unless repugnant to the 

context) THE PARTY OF THE FIRST PART, hereinafter referred to as Party 1. 

AND 

Karnataka Postal Circle, Department of Posts, Ministry of Communications and IT, 

New Delhi through Chief Postmaster General, Karnataka Circle, (which expression 

shall include his representatives, agents, etc. unless repugnant to the context) THE 

PARTY OF THE SECOND PART, hereinafter referred to as Party 2. 

WHEREAS the parties above named intend to operationalise the savings accounts 

of the workers under National Rural Employment Guarantee Scheme (hereinafter 

referred to as NREGS) to enable timely and proper payment of due wages earned by 

NREGS workers through the Post Offices; 

AND WHEREAS the parties hereto decide to reduce into writing the terms and 

conditions as are mutually agreed by them; 

NOW THIS MOU WITNESSES, and it is hereby mutually agreed by and 

between the parties as follows: 

1. OBJECTIVE OF MOU

The central objective of this MOU is to ensure financial inclusion of the 

NREGA workers by operation of their accounts in Post Offices for timely and 

proper payment of due wages earned by the workers, and delivery of other financial 

services to them. The payment of wages to the workers must be done within the 

statutory time limit of 15 days of the work done by the worker in a fair and 

transparent manner. 

Party 1 by virtue of this Memorandum of Understanding (MOU) desires to 

entrust Party 2 the responsibility of disbursement of wages to workers under 

NREGS through Post Offices by opening their Savings Account. Party 1 will 

provide funds and necessary documents to enable the Post Offices to commence the 

activity. Both the parties have agreed upon the specific modalities for wage 

payment under the NREGS through Post Office Savings Bank. These include clear 

understanding on how the wage bill and amounts are received at the Post Office and 

credited into the individual Savings Bank Accounts of the workers and their 

withdrawal by them. 

2 OBLIGATIONS OF PARTIES INVOLVED IN MOU: 

2.1 OBLIGATIONS OF PARTY 1: 

2.1.1. Party 1 hereby agrees to arrange for lists of NREGS workers in each 

village and habitation and arrange them Branch Post Office-wise and 

Sub Post Office-wise in consultation with local Postal Authorities for 

getting the individual/joint SB accounts opened in the Post Office. 

These documents preferably be given to Post Office by 11:00 AM on 

specified working days for ensuring timely action.

2.1.2 Party 1 hereby agrees to assist the Postal Divisional Nodal Officers in 

assessing the demand for withdrawal by workers in each Post Office in 

advance so that cash flow arrangements may be made by Postal Department 

without delay. 

2.1.3 Party 1 agrees to do the identification of workers for opening of 

Savings Account. 

2.1.4 Party 1 agrees for sanction of wages through Gram Panchayats to the 

beneficiaries and sends an MIS signed by the President/Secretary of 

Zilla Panchayats and send the same to the PO where the accounts of 

beneficiaries stand. 

2.2. OBLIGATIONS OF PARTY 2: 

2.2.1. Party 2 hereby agrees upon to arrange for training of the staff at all 

levels for acquainting themselves with the operational procedure, 

time-lines and the need for dedicated approach to deliver the services 

under this MOU. 

2.2.2. Party 2 hereby agrees to provide manpower and cash-flow 

arrangements for implementation of this Scheme and to adhere to the 

time-line as agreed upon and as per norms for opening of SB 

accounts, crediting of wage amounts, allowing of withdrawals, etc. 

2.2.3 Party 2 hereby agrees to give party 1 the drawing account numbers 

of Cash Offices so that sufficient funds can be transferred in advance.

2.2.4 Party 2 hereby agrees to disburse the wage amount received through 

MIS as detailed: 

By the time the MIS reaches the PO, the cash office would have 

already got the money in advance [at the drawing account of the PO]. 

The PO will start payment of wages to the beneficiaries on the 

identified dates and intimate their Cash Office/SO. In this procedure, 

the funds are transferred to the Cash Office in advance and hence 

waiting for the information from the cash office does not arise. 

2.2.5. Party 2 also hereby agrees upon to provide effective mechanism at all 

levels for redressal of grievances and disposal of complaints relating 

to wage payments through Post Office Savings Bank. 

2.2.6. Party 2 also hereby agrees upon to participate in the periodical 

coordination meetings to be arranged at Block, District and State 

levels for discussing various issues relating to smooth functioning of 

the System. 

2.2.7 Party 2 hereby agrees to open the NREGS acccounts under social 

security schemes with zero balance for the beneficiaries. 

3. Coordination: 

3.1 At State Level, Principal Secretary / Secretary, Rural Development 

will convene coordination meetings with the officers of Postal 

Department on monthly basis or as and when required. Pr./Chief Post 

Master General/ Director Postal Services will attend the meetings. 

3.2 The District Programme Coordinators (DPCs) of the districts, 

Programme Officers/Additional Programme Officers (POs/APOs) of 

the Blocks and the Nodal Officers identified in the Postal Divisions

are the key persons in the implementation of the MOU pertaining to 

wage-payments through Post Office Savings Bank. They are also 

responsible for coordination among officers at lower level and higher 

level on both sides to ensure smooth functioning of the system. DPC 

will convene a monthly meeting at district level for reviewing the 

implementation, identifying the problems and finding out the 

solutions. Sr./Superintendent of Post Offices will attend the meeting 

as representative of Party 2. 

3.3 PO/APO will convene similar coordination meetings fortnightly at 

Block level. Assistant Superintendent of Post Offices/Inspector 

(Posts) along with concerned Sub Postmasters/Branch Postmasters 

will attend the meeting as representatives of Party 2. 

4. BREACH OF COVENANT AND ITS CONSEQUENCES: 

Party 2 shall be liable for failing to discharge its obligations fixed in this 

MOU provided that the failure is caused entirely by any of its own act or omission 

or that of its staff. Party 1 shall be responsible for discharging its obligations fixed 

in this MOU. Party 2 shall not be responsible if Party 1 does not meet the 

obligations under this MOU. 

5. ADDITIONAL BENEFITS FOR NREGA WORKERS: 

Accidental Insurance Cover to workers: 

Accidental insurance cover will be provided to the individual workers duly 

linking it to the PO Savings Bank Account through M/s Oriental Insurance 

Company. After mutual consultations, detailed guidelines in this regard will be 

issued separately by the parties.

6. TERM AND TERMINATION OF MOU: 

6.1 The duration of the MOU will ordinarily be co-terminus with that of 

NREGS. 

6.2 This MOU may be terminated by either Party upon providing a written 

notice of three months to the other Party of its intention to do so. 

7. DISPUTES RESOLUTION SYSTEM: 

In case of any dispute arising out of this MOU, both parties shall resolve the 

issue amicably following government procedures. Payment of wages should not be 

adversely affected, expressly or implicitly, on account of any pending disputes 

between the parties. 

8. FORCE MAJEURE: 

Except in the case of unforeseen and uncontrollable circumstances viz. 

calamities, floods, cyclones, earthquakes, or strikes, bundhs, hartals, rasta-rokos, 

curfews, accidents, etc., the norms and modalities agreed upon as above will be 

strictly adhered to. In case of any unforeseen contingencies or accidents as stated 

above, every effort will be made by both the parties to restore normalcy as quickly 

as possible. 

9. TIME LINE: 

Time is of essence in this MOU. Both the parties hereby agree that the issues 

involved in this Scheme are time-sensitive and that the time frames agreed upon for 

different operations in the preceding paragraphs should be strictly adhered to.

10. GENERAL: 

10.1 Payment of wages shall be made once in a week/fortnight. If required, 

payment would be staggered to deal with increased work-load without breach of the 

statutory time limit for payment of wages. 

10.2 In the villages where the Post Office is located, Post Office Savings Bank 

Accounts shall be opened by workers in the Post Office. In a village / habitation 

where no post office is located, the workers will be given option to open the 

Savings Bank Account in the Post Office serving their village / habitation. The 

wages due to them will be deposited in the individual/joint Savings Bank Accounts 

to be withdrawn at their convenience. 

IN WITNESS WHEREOF, the parties hereto have executed this MOU this 

______day, _______month and ____ year 

Sri. P. Ravikumar, 

Sri K.K.Sharma 

Secretary, Rural Development&Panchayat Raj, Director, Postal Services (HQ) 

For and on behalf of Government of Karnataka, For and on behalf of 

Rural Development Department. 

Department of Posts, 

Karnataka Circle. 

WITNESS: 

1. ___________________ 1. _____________________ 

_____________________ 

_____________________ 

2. ___________________ 2. _____________________ 

_____________________ 

_____________________

THIS MEMORANDUM OF UNDERSTANDING (hereinafter referred ...

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