India Post Payments Bank

Corporate Office, Malcha Marg Post Office Building, Chanakyapuri,

New Delhi- 110021
Date-22.01.2018

TO ALL OFFICES
HRM Division Circular No. 2/2018

The Leased Accommodation Policy for Officers has been approved by the Board in its
meeting held on 03.01.2018. The guidelines approved by the Board are placed below: -

Leased Accommodation Policy

1. Scope and Coverage
This scheme covers all officers including officers on deputation in India Post Payments Bank.
2. Definition
a. "Bank" means India Post Payments Bank;
b. "Board" means the Board of the Bank;
c. "Competent Authority" means the authority who is empowered by the Management of
the Bank by an order to discharge functions or use the powers specified in the rule or
order;
d. "Government" means the Government of India;
e. "CEO/ MD" means the CEO/ Managing Director of the Bank;
f. “Management” means the Board and the CEO/ Managing Director and includes such
individuals or group of individuals as may be defined by the Board;
g. "Officer" means a person fitted into or promoted to or appointed to any of the grades
specified in Clause 3 of the Service Rules;
h. “Major ‘A’ category city” means cities/ places with population more than 45 lacs (as per
2011 census);

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 i. “‘A’ category city” means places with population over 12 lacs and upto 45 lacs (as per
2011 census);
j. “‘B’ category city” means places with population over 5 lacs and upto 12 lacs (as per
2011 census);
3. Lease Ceiling
a. Leased accommodation is provided to Officers on lease basis with following ceiling (all
figures are in INR):
Scale Mumbai Delhi Major A (other A B Other
than Mumbai category category places
& Delhi)
Scale VII 79,500 74,500 50,000 35,000 27,000 20,000
Scale VI 74,500 64,500 40,000 30,000 20,000 17,000
Scale V 49,500 39,500 29,000 23,000 16,000 13,000
Scale IV 39,500 32,500 26,000 21,000 14,000 12,000
Scale III 34,500 29,500 23,000 18,000 12,000 11,000
Scale II 32,500 27,000 21,000 16,000 11,000 9,000
Scale I 29,500 26,500 20,000 15,000 10,000 8,000

b. Rent recovery for the company leased accommodation shall be as under:

Recovery Rate
House rent recovery/ standard rent at first stage 0.75 % of Pay

4. Other financial assistance

a. Brokerage: Where the accommodation is arranged through a broker, brokerage to the
extent of 1 month’s rental ceiling or actual amount paid or 100% of the rent entitlement,
whichever is lower may be paid by the bank to the broker with due acknowledgement.
The tax charged on the brokerage will also be paid by the bank, which will be over and
above the brokerage. The brokerage will be paid directly to the Real Estate Agent on
submission of invoice, which is to be verified by the officer who has been allowed the
leased accommodation. Brokerage is admissible only once in any station. However,
brokerage can be paid for the second time at a station, provided the house/ flat has
been vacated to meet the demand of the landlord with the approval of competent
authority. CEO/ MD shall be the competent authority to approve any exceptions with
respect to the practices followed for brokerage.
b. Security Deposit: Security deposit up to maximum of only 2 months rental ceiling, free
of interest may be paid to the landlord at places where the officer has been allowed the
leased accommodation & practice of providing security deposit to the landlord is

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 prevailing at that location. CEO/ MD shall be the competent authority to approve any
exceptions with respect to the practices followed for security deposit.
5. General Conditions
a. The lease proposal will be in the format provided in the Annexure I and II. Formats of
letter for landlord’s account details and letter of occupancy are provided as the Annexure
III and IV.
b. The officer applying for the facility of leased accommodation shall submit the duly filled
in leased accommodation proposal to the competent authority in the proforma
prescribed by the bank (along with approx. dimensions of each rooms etc.)
c. Conditions incorporated in the above formats which will be deemed to be a part of these
rules, may be relaxed in exceptional cases by the CEO/ MD, wherever it is felt that strict
compliance may create hardship to the concerned employee.
d. The leased accommodation is intended for the use of the employee, his/her spouse and
dependent children and other family members for residential purpose.
e. The leased accommodation may be allowed to be retained by the Officer subsequent to
the happening of any of the events specified below for the period mentioned against
each on payment of usual/ normal rent paid by the officer provided that the
accommodation is required for residential use of the Officer or members of his family:

Permissible period for retention of

S.No. Event
accommodation
2 months;
 In cases, where the officers don’t vacate the
leased accommodation within two months,
he/she will have to pay the rent directly to the
landlord for the period for which
accommodation is held by him/her beyond the
1 Retirement
permissible period.
 Settlement of terminal dues will be taken up
only after surrender of the house/ leased
accommodation facilities granted by the bank
subject to obtaining no due certificate from
landlord.
3 months;
 The payments would be recovered from the
terminal benefits payable to the legal heir of
2 Death
the deceased officer.
 Terminal dues will be settled only after the
vacant possession of the house is handed

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 Permissible period for retention of
S.No. Event
accommodation
over to the landlord and no dues certificate
from the landlord is submitted.
2 months
 Provided, however, where an employee is
transferred to a place outside station in the
midst of an academic session, the period of
3 In case of transfer two months may be extended not beyond the
end of academic session by the competent
authority in exceptional cases, if the shifting of
his family is likely to adversely affect the
education of his children.
On being deputed by
4 Full period of training
company for training
Any kind of leave
which qualifies for
5 Full period of leave/s
payment of house
rent allowance in full.
Leave on medical 6 months inclusive of various kinds of leave
6 grounds (including which may be due to the employee at the time of
EOL) proceeding on medical leave.
Reversion of an i. Two months (if served IPPB for a minimum
employee on period of one year)
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deputation to his/her ii. One month (if served IPPB for a period of less
parent organization than one year)
One month:
Settlement of terminal dues will be taken up only
after surrender of the house/ leased
8 Resignation
accommodation facilities granted by the bank
along with no dues certificate from the landlord.

Immediately vacate the premises, as no rent for

Termination/Dismissal
9 the period immediately after the date of
from services of IPPB
termination shall be paid by IPPB.

f. Where an officer resides in his own accommodation, he/she may claim House Rent
Allowance (HRA).
Houses which are owned by self or spouse or dependent child shall be treated as own
accommodation.
Officers residing in houses owned by their mother / father or any relation other than
spouse or dependent child will be treated at par with those living in rented houses. In
such cases of lease, no brokerage charge would be admissible.

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g. While applying for the facility of leased accommodation, the officer shall give an
undertaking that he/ she does not own a house either in his/ her own name or in the
name of his / her spouse or a dependent child at the location of his/ her availing leased
accommodation facility.
h. There is exception to the above clause 5(f) & 5(g), whereby an officer who owns a
house at the place of posting is allowed to take leased accommodation, subject to the
following conditions:
i. The said flat or house is not in a livable condition/ lacks the basic facilities.
ii. The said flat does not commensurate to his rank.
iii. The location of the said flat is not easily commutable.
iv. Any other cases deemed fit by the competent authority.
The lease facility is provided to the employee with respect to any of the cases
mentioned above, only after prior approval of the Competent Authority.
i. Repairs and maintenance: Repairs and maintenance of residential premises should be
carried out by the landlord or the officer occupying the house. Bank will not incur any
expenditure on this account.
j. The officer shall bear the water, electricity & other charges pertaining to the leased
accommodation occupied by him/her or his/her family.
k. In case the rent paid by IPPB is higher than the entitlement of the officer, the amount
over and above the entitlement of the officer plus rent recovery will be recovered from
the salary of the officer for the month for which rent is being paid.
l. Enhancement of rent of leased accommodation: The proposal for enhancement of rent
shall be considered only after expiry of existing lease period. The enhanced rent sought
should commensurate with the existing rent prevailing in the market situated in the same
locality & should be within the lease limit applicable to the concerned officer.
m. An officer availing the facility of leased accommodation, may be allowed to claim HRA
on rent receipt/ fixed basis, if he /she opts for the same on expiry of lease period.
n. There will be no upper limit of rent for hiring leased accommodation by the officers.
However, the rent payable by the Bank will be restricted to the entitlement of the officer
concerned.
o. If an officer acquires the leased accommodation during the month instead of beginning
of the month, payment of HRA to the employee and payment of rent to the landlord will
be done, proportionate to the number of days the employee occupies the
accommodation during that month.

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6. Competent authority for approval of lease agreement will be as under:
Purpose Competent authority
For officers at Corporate office and Circle Heads. Head of Administration –
Corporate Office under
CHRO
For officers posted in Circle offices (other than Circle Head
Circle Head) and Branch Heads.
For officers posted in Branch offices (other than Branch Head
Branch Heads)
7. To ensure smooth functioning of IPPB Offices/Branches, it is necessary that the officers shall
fix up accommodation at distances which are easily accessible and there is no undue loss of
time for travelling. The following guidelines are proposed to ensure the same:
i) In case of metro cities, the accommodation shall be fixed within Municipal limits.
Accommodation beyond such limits may be fixed after obtaining prior permission from
Competent Authority.
ii) In other cases, the officer is expected to stay within the Municipal/ Taluk/ Panchayat
limits of Branch/Office of posting. Accommodation beyond such limits may be fixed after
obtaining prior permission from Competent Authority subject to a maximum of 25 Kms
distance from the Branch/Office of posting. In no case the officer will be permitted to fix
accommodation beyond 25 Kms.
8. Relaxation of any other kind not provided herein, may be permitted only by the CHRO.
9. Any clarification on operationalizing of the policy/ rules should be referred to HR Department
of the Bank for decision/ clarification.
7. Any clarification on operationalizing of the policy/ rules should be referred to HR Department
of the Bank for decision/ clarification.
8. The management reserves the right to modify, cancel, add or amend any of the above rules
at any time without giving any notice or assigning any reason thereof.
9. In case of any damages or defacement in the leased premises due to negligence or act of
the officer, he/she shall be solely responsible for repair or restoration of the same and bank
shall not be held responsible for any such damages.
10. At the time of vacating of the premises on expiry of lease or end of lease due to any other
reasons attributable the concerned officer shall be responsible for recovery of security
deposit otherwise the same shall be recovered from salary/dues including terminal
benefits/deposits of the officer.

(SEEMA SINGH)
CHIEF HR OFFICER