CBROA NEWScbroa.co.in/pages/NB SEPT 2019.pdf · 2019. 9. 2. · Com. Soumya Datta, General...

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Go to At a Glance Page

In today's meeting with IBA, AIBOC was repre-

sented by Com. Debasis Ghosh, President and

Com. Soumya Datta, General Secretary. The fol-

lowing points were raised by AIBOC during the

talks:

1) The mandate issue has to be resolved.

2) 5 day Banking and reduction of cash

presentation hours.

3) Updation of Pension and revision of Family

Pension.

4) Ramification of the Codes of Wage Act,

2019.

5) Ramification of the recent instructions of

DFS on granting permission to CBI under

Section 17(A) of PC Act, 2018.

6) Reference to the Madurai Court Case.

The talks were inconclusive. IBA insisted on in-

troduction of PLP.UFBU will meet on 11th Sep-

tember 2019.

Flash on Bipartite Talks held on 29th August, 2019

Flash on Medical Insurance Scheme — Update By IBA

Immediately after XI Bipartite talks, IBA gave

following updation on "Renewal of Medical In-

surance Scheme" :

This year Renewal process was started early by

IBA. Committee of General Managers from dif-

ferent Banks was formed to decide everything

in this regard.

The Review Committee sent questionnaires to

all Banks for getting their views such as,

1. Whether to continue scheme in present

form ?

2. Are brokers needed ?

3. Should we revert back to old "bank level"

scheme ?

Based on Banks' views, following decisions were

taken up by the Committee :

1. No Brokers required.

2. Bids should be invited from all capable

Co.s including ones in Pvt Sector.

Accordingly 31 Co's were identified by IBA Com-

mittee. Letters were sent to those Cos inviting

bids during July 2019. 8 Companies sent their

bid cum proposals. Out of 8, three cos are pub-

lic sector and 5 are from Pvt sector. Bidding

with 6 types premiums came. Closed cover bids

were opened and one Company was finalised.

This Company shall be approved by IBA in it's

Board level meeting scheduled on Friday 30 Au-

gust, 2019. Then the name of selected Co. with

premiums on different policies will be an-

nounced.

IBA wants to take an undertaking from selected

Company broadly on following lines :

1. Time line for every claim settlement with

penalty on Co. for delay. Say within 30

days.

2. There will be dedicated sufficient man-

power for our scheme.

3. Escalation Matrix.

According to IBA quality and premium wise the

BEST Company will be chosen.

CBROA NEWS Monthly E bulletin of Canara Bank Retired Officers’ Association (Regd)

CBROA BULLETIN—SEPTEMBER 2019

2


At a Glance

Editorial Page No

Our Country’s 73rd Independence Day 3

Canara Bank News

OTP for Cash Withdrawal 5

Canara Bank won “Trusted Brand” Award 5

CBOA News

A Novel Initiative by CBOA : Death Relief for CBOA and

CBROA Members

6

CBOA CANPAL’S CASTLE (HOLIDAY HOME) POLICY 8

Dearness Relief w.e.f. August 2019 to February 2020 7

AIBOC / AINBOF / UFBU News

Bankers’ Meet -”Converging Ideas” Request for partici-

pation

10

Bankers’ Meet—”Converging Ideas” Feedback 12

11th Bipartite Settlement—Negotiations with IBA 14

AIBPARC / CBPRO News

AIBPARC holds first meeting of the Governing Council for the calendar year 2019At New Delhi on 30th July, 2019 in the midst of massive participation and enthusi-astic deliberations

24

Removal of inconsistencies in calculation of gratuity vis-à-vis the provisions of “Payment of Gratuity Act.”

26

11th BI-Partite Settlement—Pending issues of Bank Pensioners and Retirees

28

CBROA News 30

Sri GCS Sharma, our Member, has been elected as

President of Information Security, Systems Audit, Risk

& Compliance nd Governance (ISACA) Hyderabad

Chapter

30

Devastating floods in the states of Maharashtra, Karna-

taka, Gujarat, Kerala, Andhra Pradesh, Odisha and

Madhya Pradesh

30

Members’ Meeting at Salem, Calicut, Patna, Jabalpur,

Mangaluru, Rajahmundry & Kakinada, Vellore, Pondi-

chery, Chennai, Madurai, Trissur

Developments in Banking & Economy 38

Photo Gallery 42

Place the Cursor over the items. A Hand icon appears. Click, you will be taken

to the respective page. Click on Goto At a Glance to go to the At a Glance

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We celebrated the 73rd Independence Day

with much fanfare and gaiety. We became

“independent” seven decades ago. We are

preparing the pitch for celebration of the

75th year of Independence in a big way.

What is it a freedom from? Freedom from

British rule, caste and gender oppression,

social hierarchies, internecine hatred or

hunger, class divisions, or from the circle of

life and rebirth? Or a hundred other kinds

of freedoms going by exotic names or

names at all, all of which turn the sublime

object of freedom into a mirage. One rarely

experiences that sublime state of being

free.

When we look back, it is but natural to

feel that we have achieved a lot during the

past 72 years. Compare those days when we

were struggling to have two morsels of food

every day with the present day when most

of the people in the country are well fed,

when we were looking at the empty sky and

today when we are set to put our foot on

the moon and reach the Mars, when we

were looked down upon as a country of

beggars, snake charmers and today when

we are one of the economic super powers

in the world, with sustained growth in GDP

which is much above the GDP growth of the

most powerful economies in the world. It is

amazing to see all these developments hap-

pening around us.

In the shadow of our big success in the Mars

Mission, or Chandrayana, we witnessed the

most heart rending story of a poor man car-

rying the dead body of his wife on his shoul-

ders, walking to his native village, as the

hospital refused to provide ambulance ser-

vice. We have the most disturbing story of

a section of the people cleaning the place

where a Dalit Woman Legislator was sitting

in Dharna seeking justice for the cause of

women and society. We read in the news

papers every day, heart breaking stories of

women being killed in the name of saving

the “honour of the family.”

We observe every day, the bare footed chil-

dren from poor families looking with wide

eyes at the children of their own age, well

dressed in their school uniforms, wearing

well polished shoes, going to school in the

bus. Is there a level playing field for these

less fortunate children to compete with the

children from rich families who are educat-

ed in English Medium Schools? Those who

declare that “Smoking is Injurious to

health,” smoke cigarettes right amidst peo-

ple and exhale smoke. The Law on paper

simply laughs at this paradox. The Welfare

Schemes meant for the poor, the less privi-

leged, the destitutes never reach them in

full measure. A benefit of Rs.1,000, will be

only half or one third when it is placed in

the hands of the utlimate beneficiary.

The cursed girl children are yet to be

emancipated. The society has been treat-

ing a girl child as a helpless entity, an un-

wanted burden on the family. There may be

examples of a few girl children excelling in

various fields facing all odds, in a male

chauvinistic society. We throw garbage eve-

ry where giving an impression that we will

never imbibe the sense of cleanliness. We

laugh at the people who try to lift the gar-

Dear Friends,

Our Country’s 73rd Independence Day

4


bage thrown by us and put it in the garbage

bins. Honesty, probity in public life have

vanished. The government employees have

become experts in swallowing what all

comes their way and they will not miss

even the slightest opportunity to swallow

the public money. The files in the Govern-

ment offices will not move unless they are

greased. Even today there are many rural

places in our country where the Govern-

ment buses don’t go on time or don’t go at

all. It is quite common that many Govern-

ment buses are in a ramshackle condition,

the Government Schools are in dilapidated

condition. The less said the better about

the Government Hospitals. But the Gov-

ernment records show that that they are

perfectly in good condition.

We never bother to stop a flowing water

tap. A tree on the roadside disappears sud-

denly, though we shout from the roof top

that we are conservation conscious. We sell

our votes for a few rupees. We see injus-

tice being perpetrated right in front of our

eyes, as though it is a cinema reel. We

treat the person making money as Godman

who, taking advantage of the people’s su-

perstitions, keeps them in eternal igno-

rance. We have kept the caste system alive

to create islands of people who are dis-

criminated. This is more apparent today

than ever. We go for open defecation even

when there is a toilet in our house.

One can observe a rush for destroying de-

mocracy. Money, caste and muscle power,

are powerful weapons to emerge as a lead-

er. Money and Caste are the templates to

gain political power. Eligibility and capabil-

ity are just kept aside. The people in pow-

er define democracy the way they want it

to be. We are ignoring literacy which is the

foundation for a successful democracy.

Forget about the changes that literacy

brings to our democracy, we have trans-

formed the education system into a sterile,

futile exercise. This is to such an extent

that one gets a feeling that the educated

person is more dangerous than the unedu-

cated.

Such developments are there in every

country but the proportion varies. Yes, the

country has progressed beyond recognition

since 1947, but we have emerged as a na-

tion where we are not treating a fellow

human being as a human being. We have

not emerged as a country having a stand-

ard value system. It is not an easy proposi-

tion that everyone will get everything one

wants in our democratic set up. To speak

frankly, there is no change in our mind-set

and heart. The first and foremost thing we

have to attain is to cleanse our mind, our

thinking, our hearts so that we emerge as a

truly egalitarian society. Amidst all this,

the achievements of all these 72 years, do

not give us the comfort, the sense of being

in a society where liberty, equality, equity,

justice and fraternity rule. Does India

change for the better? Are we sincerely

making efforts to achieve the Ramarajya of

Mahatma Gandhi’s dream? We do not know.

The answer is not simple.

We have to look at the Independence day

speech of our Prime Minister in the back-

ground of the above developments. His

speech was combined with the familiar

rhetoric with some fresh thoughts. The

country needs infusion of meaning to his

vision with action on the ground. If India is

to be on a new course for the better, it

needs more than grandstanding from the

Red Fort. Deeds must follow words as noon

5


CANARA BANK NEWS

follows dawn.

We wish all our members and the members

of their family a Happy Sri Gowri and

Ganesh Festival and a slew of festivals that

follow. We wish all of you health, happi-

ness, joy and peace for every moment of

your life.

Yours sincerely,

A N Krishna Murthy

General Secretary.

Bengaluru

Canara Bank has the “Most Trusted Public

Sector Banking Copany” instituted by IBC

Info Media. The award was received by

Dr.Manoranjan Sharma, General Manager,

The Chief Learning Officer and

Sri.Bavendra Kumar, Deputy General Man-

ager, in a function organized recently.

CANARA BANK WON “TRUSTED

BRAND” AWARD

OTP FOR CASH WITHDRAWAL

ABOVE RS.10,000/- IN A DAY FOR

CARD HOLDERS IN CANARA BANK

ATMs

Presently, ATM Cash Withdrawal Transactions

are authenticated by Debit Card and PIN.

Of late, it is observed that the fraudsters are

installing skimmers in the ATMs and capturing

Card information and Pin used in the ATMs.

They are preparing duplicate cards and by using

the same, they are making unauthorised/

fraudulent withdrawals.

As a fraud prevention measure and to safeguard

the customers’ money, the Bank has introduced

OTP Facility for Cash Withdrawal Transactions

(Cumulative ATM Cash Withdrawal for a day in-

cluding Current Withdrawal of above Rs. 5,000/

-) of our Debit Card holders through our ATMs

i.e., ON US transactions. If the Cumulative Cash

Withdrawal for the day is less than or equal to

Rs. 5,000/- existing process holds good.

The customers who have not registered their Mo-

bile numbers will be able to withdraw only upto

Rs 5,000/- per day in our ATM, hence we advise

the branches to capture the Mobile numbers of

all the card holders in CBS (option CIM09).

Our Debit Card Holders drawing cash through

other Bank ATMs (Remote On US) are not cov-

ered under the above facility. Customers may be

encouraged to use MServe to have control over

Debit Card transactions through ATMs as well as

POS/Online portals.

There will be no change/s for Other Bank card

holders (OFF US) while using our ATMs.

The transaction flow of On-Us Cash Withdrawal

facility after introduction of OTP facility will be

as under:

• Customer selects the language, enters the

PIN & withdrawal amount and selects the

account type.

• After successful Card and Pin Validation,

switch checks whether the cumulative ATM

cash withdrawal for the day including cur-

rent withdrawal is greater than Rs.5,000/-

Cash will be dispensed as usual for cumula-

tive amount upto Rs 5,000/-

• In case of cumulative cash withdrawal for

the day is more than Rs.5,000/-, ATM

Switch will send OTP to the cardholder’s

6


registered mobile number in CBS.

• ATM prompts the customer to enter the

OTP.

• Once the OTP is entered by the cardholder,

the same is validated by ATM Switch.

• After successful validation, the ATM will

dispense Cash to the cardholder.

• • If the customer has not registered his

mobile number in CBS, message will be

displayed on the ATM screen to register

mobile number in CBS and transaction will

get declined.

(HO Circular 416/2019 dt: 16.08.2019)

CBOA NEWS

A NOVEL INITIATIVE BY CBOA : DEATH RELIEF FOR CBOA AND CBROA MEMBERS

Communication from the General Secre-

tary, CBOA is reproduced herebelow:

An officer expired. As an immediate relief

CBOA gave Rs.50000. Next month the Wid-

ow asked for additional amount for the ex-

penses. When I told “NO” she questioned

me how to run the family because all the

terminal benefits were spent towards loan

availed for the treatment.

2. A manager who opted for PF but fallen

sick months before retirement was left

with 3.50 lacs from out of the total retire-

ment benefit of ₹40 lacs after adjusted to-

wards the loans. The entire family ex-

pressed shock and wondered how they are

going to lead the balance life with 3.50 lacs

in hand.

3. A retired officer informed that he lost

all the money towards the treatment of his

wife after retirement and left with nothing

except meagre pension.

This is the financial condition of many of

our officers.

If you rely only on the bank, it would not

be practically possible to support the en-

tire financial need of an officer, particular-

ly after the retirement.

As a prudent officer of the Bank we must

plan and save the money to lead a decent

and peaceful life after the retirement too.

In the absence of bank extends help in a

way we expect, we ourselves can plan for

helping each other.

A scheme was conceived which is purely raw

in nature, is presented to you for your reac-

tion and response.

1. CBOA has about 25000+members, in

various cadres.

2. Majority of them become members of

CBROA after retirement.

3. About 50 deaths are reported in har-

ness per Annum.

4. About 1200 officers are retiring per an-

num.

5. CBOA gives ₹5 lacs to family if officers

die while in service.

6. CBOA gives ₹20000 at the time of re-

tirement.

7. We shall form a trust to manage a cor-

pus contributed by the members and

disburse some benefits as we decide

from out of the interest earned by the

corpus.

8. We shall try to get IT exemption to the

trust.

9. Serving members of CBOA will deposit

₹2 lacs each as one time contribution

towards the corpus.

7


10. We shall deposit the corpus either in our

Bank or in our mutual funds so as to

earn an assured minimum return of 8 to

12%.

11. From out of the 40 crores interest

earned per annum at 8%, we can give

₹20 lacs each to the bereaved family

in case of officer’s death in service

which will cost ₹10 crores for the as-

sumed death of 50 per year.

12. About 1200 officers who are retiring

will get ₹ 1 lac each at the time of re-

tirement which costs about ₹12 crores.

13. Out of the remaining 18 crores the re-

tired officers will be getting ₹10000

per head to be paid towards insurance

premium every year of a medical in-

surance scheme suitably devised,

which may cost 1.20 crores in the first

year but will go up in the ensuing

years.

14. An officer is expected to live up to 80

years approximately which means after

20 years, approximately 24000 retired

officers will be alive to be supported

by paying annual premium of ₹10000

each which would be 24 crores and

with the accumulated funds over the

years, we will able to manage it easi-

ly.

15. We may even look at the Bank for

some contribution towards the corpus.

16. It would be available to the officers

continuing as members of CBOA/CBROA.

17. Any discontinuance in the membership

will result in forfeiture of the contribu-

tions.

18. We can think of giving a portion of the

contribution, in case of resignation or

voluntary retirement or dismissal or re-

moval after the minimum lock in period

of five years after the contribution to-

wards corpus.

19. Newly promoted and recruited officers

will join by paying ₹ 2 lacs each.

20. We can think of granting a loan of ₹2

lacs through our officers thrift society

at MCLR +1 repayable in five years too.

21. I wish this proposal should be perused

by every individual member and give

specific suggestion for improvement in

my email iD cboamanima-

[email protected].

Kindly respond before 15th of August so

as to take a decision on implementation

immediately.

Manimaran G V

DEARNESS RELIEF RATES FOR PENSIONERS (%) – 70 SLABS INCREASE

RETIRED PRIOR TO 01-11-1992 - 1641 SLABS OVER 600 POINTS

UPTO 1250 1251-2000 2001-2130 ABOVE 2130

1099.47% 902.55% 541.53% 276.97%

AFTER 01-11-1992 UPTO 31-03-1998 - 1504 SLABS OVER 1148 POINTS

UPTO 2400 2401-3850 3851-4100 ABOVE 4100

526.40% 436.16% 255.68% 135.36%

AFTER 01-04-1998 UPTO 31-10-2002 - 1370 SLABS OVER 1684 POINTS

UPTO 3550 3551-5650 5651-6010 ABOVE 6010

328.80% 274.00% 164.40% 82.20%

RETIRED ON OR AFTER 1-11-2002 - 1219 SLABS OVER 2288 POINTS

FOR THE ENTIRE BASIC PENSION AMOUNT – 219.42%





8


As a CANPAL'S initiative, the Canara Bank Of-

ficers Association has constructed / pur-

chased Holiday Homes at various places of

tourist/ religious interest throughout the

country for the benefit of its officers and em-

ployees. It is an attempt by CBOA to provide

good accommodation at reasonable rates.

The CANPAL'S CASTLE POLICY aims to achieve

transparency and offer ease of access & com-

fortable stay.

POLICIES OF THE CASTLE:

All the holiday homes will be called as

CANPAL'S CASTLE followed by, name of the

City. Ex: CANPAL'S CASTLE AMRITSAR.

Accommodation facility is available to all

the employees, both retired and in service.

Preference will be given to members of

CBOA.

Where holiday home is located in the re-

gional headquarters, respective Regional

Secretary of the region, in which the holi-

day home is located will be the administra-

tive Incharge for managing and maintaining

the holiday home: Otherwise, the District

Secretary in whose jurisdiction the holiday

home is located, will be the administrative

Incharge (or) as nominated by the General

Secretary.

All the running expenditures, including

maintenance of rooms, maintenance of

consumables, salary to the care-taker,

electricity bills and taxation are to be man-

aged from the income generated from the

holiday home.

For maintaining and operation of funds

from the holiday home, an account com-

prising Regional secretary, Assistant region-

al secretary and District secretary to be

opened, with operating condition- JOINTLY

BY ANY TWO.

The holiday home care-taker maybe per-

mitted to use the premises to prepare

snacks and beverages to be sold to inmates

at a discounted price. The price of the

items to be finalized by the Regional Com-

mittee.

Holiday home can be booked for a maxi-

mum of 03 (THREE) consecutive days.

Online booking facility will be introduced

shortly.

On receipt of booking calls, the vacant

room should be rented based on availabil-

ity.

Rent to be paid in advance to the designat-

ed account at Rs 500/- per room for 24

hours.

No refund or concession is permitted.

The officer/ employee on whose name the

holiday home is booked should necessarily

accompany the inmates.

At the end of each month, the holiday

home account must be tallied and account

statement income and expenditure in-

curred during the month, position of bal-

ance in the account must be communicat-

ed to the Treasurer, during the first week

of succeeding month.

Feedback and complaints register to be

maintained at each and every holiday

home. Complaints shall be forwarded to

the General Secretary, CBOA.

CBOA CANPAL’S CASTLE (HOLIDAY HOME) POLICY

9


PLACE ADDRESS STATUS OF THE CASTLE

DETAILS OF AC-COMMODATION

CONTACT PERSON

Amritsar CANPALS CASTLE AMRITSAR Flat no 37, 3rd floor, Improve-ments Trust Flats, HIG catego-ry, Improvement trust Colony, New Amritsar, GT Road, Amrit-sar.

Operational No of Rooms: 03

Air Conditioned Common kitch-en.

Mr. Rajesh Puri, Assistant regional secretary, CBOA. Mobile: 9915111437 Care-taker: Mr. Sat Pal Mobile: 9988875354

Chandigarh CANPALS CASTLECHANDIGARH Flat No 602, Oak Tower, Ansal Woodbury Apartment, Zirakpur Patiala Road, Near Air Force Station Road, Chandigarh

Operational No of Rooms: 03 Air Conditioned, Common kitchen

Mr. Yugesh Kumar, Regional Secretary, CBOA. Mobile: 9501016719 Care-taker: Mr. Sanjeev Mobile: 9855493096

Chennai 1 CANPALS CASTLECHENNAI

1 No 216, Royapettah High Road, Opposite to Deccan Ho-tel, Near Ajanta Bus Stop, Royapettah, Chennai

Operational No of Rooms: 02 Air Conditioned.

Mr. Palaniappan, Re-gional Secretary, CBOA. Mobile: 7358639688; 9444234948 Care-taker: Mr. Chandra-Kumar Mobile: 8667715408

Chennai 2 CANPALS CASTLECHENNAI 2 Kavanur Road, Near VGN Apartments, Potheri.

Under Process Proposed No of Rooms: 08. Air Conditioned.

Mr. Govindhan, Re-gional Secretary, CBOA. Mobile: 9791636006

Coimbatore CANPALS CASTLECOIMBATORE No 1/1-59 Anna Nagar, Near kathir College, Neelambur, Co-imbatore641062

Operational No of Rooms: 04 Air Conditioned, Common Kitchen

Mr. Kaviarasan, Dis-trict Secretary, CBOA Mobile: 6369334541 Care-taker: Mrs. Vasantha Mobile: 9047292437

Hampi CANPALS CASTLEHAMPI

Plot no 9, Soujanya Layout, Near Vijayshree Resort, Hampi Road, Malappanagudi, Hospet.

Under Construc-tion

Proposed No of rooms: 05

Mr. Mukund Zalki, Regional Secretary, CBOA Mobile: 9448441988

Kalaburagi CANPALS CASTLEKALABURAGI Kaasi Kamal, Behind High Court, Afzalpur Road, Kala-buragi


Mr. Thimmareddy, Regional Secretary, CBOA. Mobile: 9448413399

Kolkata CANPALS CASTLEKOLKATA

12B, Mahim Halder Street, Kol-kata 700025.


Mr. Sanjib Kumar Das, Regional Secre-tary, CBOA. Mobile: 8334927300 Care-taker: Mr. Uday Pal Mobile: 8584961063 8013015122

Rameswa-ram

CANPALS CASTLERAMESWARAM Meyampulli Village, Near APJ Abdul Kalam memorial, Rame-swaram

Operational No of rooms: 06, Air conditioned. Common Kitch-en.

Mr. Radhakrishnan, CC member, CBOA. Mobile: 9994571367 Mr. Sethu Ramadurai, District Secretary, CBOA. Mobile: 9677902528

Tirupati CANPALS CASTLETIRUPATI

Narayanapuram, Behind Hotel Bliss, Tirupati 517502.

Under Construc-tion

Proposed No of Rooms: 09. Air Conditioned.

Mr. Nagaraja Reddy, Regional Secretary, CBOA. Mobile: 8500593455

Trivandrum CANPALS CASTLETRIVANDRUM Chirakulam Road, Mullassery lane, Trivandrum 695001.

Under Renova-tion

No of Rooms: 03 Air Conditioned.

Mr. Srikanth, Region-al Secretary, CBOA. Mobile: 9744558709

10


The Secretary Department of Financial Services Ministry of Finance Government of India 3 rd Floor, Jeevan Deep Building Sansad Marg New Delhi - 110001

Dear Sir,

Banker’s Meet – “Converging Ideas” Re-

quest for participation

At the outset, All India Bank Officers’ Con-

federation (AIBOC), the apex supervisory

Trade Union of Bank officers in the coun-

try, is extremely happy to extend whole

hearted support and cooperation to the

well-intended initiative undertaken by your

good office with the noble purpose of con-

verging ideas to find optimum solution

through consulting officials of banks across

the hierarchy on various parameters that

will ensure dispelling loopholes and weak-

ness in the Banking sector to reinvigorate

credit growth and improving accounting

standards and nurturing competitive effi-

ciency alongside niche competencies in the

banking space while aligning its future

course of action in tune with the govern-

ment initiatives.

02. It is heartening to note that the ex-

pected outcome of the initiative as has

been envisaged aims at extending Credit to

Micro, Small and Medium Enterprises

(MSME) sector, Retail lending, Agriculture

Credit, Export Credit and Digital Payments

among many other parameters by adopting

review exercise on performance of banks

during the last five years. It also encom-

passes alignment of banking with national

priorities, synchronization with area-

specific issues and growth potential, role

of PSBs as active partners in the Indian

growth story, generation of ideas for creat-

ing a roadmap for the future, comparative

ranking of banks, enhanced ease of living

by making banks more responsive to cus-

tomers, challenges before banks and their

preparedness in areas such as cyber securi-

ty and data analytics, multi-layered analy-

sis of comparative performances at region-

al, state and national levels, both within

and across banks, etc.

03. Our organisation, AIBOC, having mem-

bership of over 3.20 lakh officers compris-

ing more than 82 per cent of the total

number of officers working in the banking

industry, inconsonance with its very pur-

pose, functions not only for its members

but also for the unhindered progress and

development of the institution and the na-

tional development as well. In this direc-

tion, time and again we have discussed in

various forums the need for expanding the

horizon of bank’s function in assimilation

with the society. We have all along advo-

cated for MSME finance, Finance to agricul-

ture, PMJDY and extend all possible sup-

port for ensuring survival of the organiza-

tions with overall economic developments

right from employment generation to in-

dustrial growth. AIBOC is firmly resolute in

its endeavour to reclaim the lost market

share of PSBs and also to rededicate itself

to its principal role of developmental bank-

ing (Nation Building) and also to forte its

energy to create job and employment

which the nation needs most at this junc-

ture to revamp its economy.

04. We hope you will agree that the suc-

cess of the proposed initiative will depend

AIBOC /AINBOF / UFBU NEWS

Banker’s Meet – “Converging Ideas” Request for participation AIBOC Circular 2019/44 dated 14.08.2019

11


much on the active participation of all the

stakeholders and therefore, it is impera-

tive that the process certainly takes care

of the overall characteristics of the partic-

ipants and their inherent apprehensions

while responding to a situation. Further,

adoption of one jacket which suits all the-

ory might not bring in the desired result.

We apprehend that due to lack of compre-

hensive ideas, it eventually may not ad-

dress issues pertaining to the actual situa-

tion prevailing in the banking industry, and

like many other initiatives, yet another

survey without considering the ground re-

alities might fall short of what has been

expected.

05. Sir, providing customer delight in the

bank is very much important in attracting

and retaining customers in a competitive

landscape. As technology becomes more

robust and customer-buying habits shift,

banks must constantly be looking for areas

of innovation and ways to meet the de-

mands of a 21st century customer. Here

employees and officials play a pivotal role

in the bank as they are the frontline of

customer service. We hope you would

agree that it is the branch level bankers,

who will be instrumental in implementing

this elaborate and optimistic program of

the government of India. True to the tradi-

tion, it is the bank officers who would give

their level best for ensuring its success and

AIBOC has all along been playing a pivotal

role in shaping such initiatives to the de-

sired level of success. It might find worth

mentioning here that AIBOC formulated its

own turnaround plan for PSBs, which were

under PCA to help the management of

those public sector banks and scripted a

pioneering role in ensuring turn around for

the weaker banks.

06. AIBOC, being an apolitical trade union

without any affiliation to any political par-

ty or any doctrine is fiercely independent

in our opinion which is pragmatic and we

also firmly believe in " nation first , organi-

sation next and individual last ". In this

context, it is only natural that we will like

to contribute our input for formation of a

better policy for banking.

07. Under the above circumstances, it

would be just and fair that we being one of

the principal stakeholders of the aforesaid

initiative and having in-depth exposure in

the particular field, should be given an op-

portunity to share our thoughts on various

tenets of the cited doctrine in the best in-

terest of the banks, the officers/

employees and customers of the public

sector banks and the national economy.

AIBOC, therefore, seeks representation in

the Stage 2 and Stage-3(National level)

meeting with bankers to put forth our ide-

as as major stakeholders of the banking

industry to foster growth and development

of our nation.

With best regards,

Yours sincerely,

Sd/- (Soumya Datta)

General Secretary

Mob - 9830044737

12


Banks are passing through a critical phase

with severe threat to bottom line due to

burgeoning NPA with resultant provisions.

Following issues which have direct bearing

on the workings in the bank and the offic-

ers/employees in particular have been iden-

tified for providing the feedback to the 2

day Regional level meetings being conducted

as a part of the DFS initiative “Converging

Ideas”:

1. Manpower requirement: The most im-

portant problem that all t acute short-

age of staff for quite a long time with

no sign of resolution, rather it is get-

ting aggravated with passage of time

due to substantial flow of retirement

and resignation. This shortage of staff

has posed a serious threat in certain

critical areas encompassing marketing,

inspection, day to day routine matters,

making contact with the borrowers for

default in payment of EMI etc. and in-

crease in number of single officer

branches.

2. Training: The operating functiona after

assuming new assignments to enable

them perform their roles in a profes-

sional manner. There are many instanc-

es wherein officials just after promo-

tion from clerical cadre or confirm

Branch Manager in a single-officer

branch without having any prior expo-

sure with almost very little support

from the controlling offices.

3. Technology related issues: technology

viz. SMS alerts, security threats, scan-

ning and storing of documents, poor

connectivity, hard ware and software

snags, etc. Vendor support for both

hardware and software on the other

hand is almost negligible and that too

is not available at the appropriate

time.

4. Third party products: The thrust to

generate miscellaneous income has as-

sumed strategic significance as NIM has

come under pressure. However, the

misplaced priority on selling of third

party products by the banks which have

invited unnecessary complaints to the

bank and jeopardizing reputation of

the banks.

5. ranch Premises and Renovation:

Branches in rural areas need immediate

attention due to acute shortage of

space and major refurbishment to

make it in line with the bank’s laid

down policy and standard.

6. Security threats to officers: The offic-

ers more particularly the recovery

team members are subjected to fre-

quent threats by the loan defaulters

and very little protection is available

from the administration, which is a

matter of serious concern to all of us.

7. Irregular working hours & working on

holidays: Irregular and extremely long

working hours and/ or working on holi-

days is not only decreasing the produc-

tivity to a large extent for all employ-

ees at all vertical/ offices/ branches/

designations/ scales, but also leading

to more mental and physical duress and

stress thereby deteriorating health of

the employees and affecting work life

balance. There has been several inci-

dences of officers committing suicides

Banker’s Meet – “Converging Ideas” Feedback—

Compilation of key issues to be highlighted during the two days

Regional Level Interface on 17th and 18th August, 2019 AIBOC Circular 2019/01 dated 16.08.2019

13


in the recent years.

8. Political pressure: Undue and uncalled

for political pressure in the banking

system has increased significantly, es-

pecially in sanction of loans to corpo-

rate houses, business families. Ironical-

ly, this pressure is now being generated

even for micro loans in rural and semi

urban areas with even threat to the

lives of the branch functionaries. In-

stances of officers being taken into

custody by the local administration on

disbursement of loans are quite fre-

quent.

9. 5 Day banking & reduction in Branch

cash Transaction hours: In accordance

with the global best practices, support-

ed by facts relating to the digitaliza-

tion of banking transactions in the

economy further boost to the digital

drive of the GOI be given, it is need of

the hour that the and cash transaction

handling time in branches be reduced

to 4 hours along with introduction of 5

day banking. As a result, customers

still not willing to be a part of digitali-

zation wave, will automatically be

forced to fall in line, thereby improving

the overall digital penetration of the

banking system, whilst providing more

time to branch functionaries to effec-

tively use time in more productive ac-

tivities like mobilizing deposit and in-

creasing credit exposures and/ or mar-

keting digital products. Further, it

would also lead to saving of precious

energy.

10. Legal Matters: The branch officials are

even pulled up even in matters having

legal intricacies and complications

based on the assumption that branch

officials are supposed to be master of all

trades. Controlling offices should pro-

vide adequate support on all profession-

al matters.

11. HR Issues: Declining leave of officers-

Incidents of denying and declining genu-

ine leave requests in the HRMS mostly

by way of default (neither sanctioned

nor declined)has affected the morale of

officers. Relief arrangement is a major

problem as there is acute shortage of

manpower. There are several instances

where an officer could not attend the

funeral of near relatives due to leave

related issues. The HR needs to be re-

vamped. It is also a matter of concern

that there is large scale attrition in cler-

ical and junior officer cadres and also

the reluctance of clerical staff to opt

out of promotion process. A decent hike

of salary and other benefits, Assured

Pension scheme, updation of pension,

regulated working hours would ensure

that quality people come into the sys-

tem and are motivated to go for career

advancement. The appraisal systems in

most banks are opaque and a 360 degree

appraisal system needs to be intro-

duced. The unwillingness of lady offic-

ers, who are otherwise extremely capa-

ble, to assume higher responsibilities,

should be examined. A softer transfer

policy for lady offices should be put in

14


We are at a crucial juncture in terms of our

wage revision is concerned. Over the period,

the bank officers have not been given the

wages matching to their service and qualifi-

cations by the Indian Banks Association quot-

ing the profit and paying capacity of the

Banks and in the process, the bankers were

subjected to a raw deal.

The recent rumours that are being floated on

concluding the wage revision with a salary

hike of around 15% to 20% makes it inevitable

to recall the stand of AINBOF since 2017 on

this subject.

Right from the conception of Charter of De-

mands, we have been batting for fixing of

salary based on the Minimum Wages principle

adopted by Indian Labour Congress way back

in 1957.

This principle based on the recommenda-

tions of International Labour Organisation

(ILO) adopted by many countries world

over.

Incidentally, while looking for Indian exam-

ple, it was noted that the same minimum

wages principle was adopted by Govern-

ment of India in its Seventh Central Pay

Commission which further strengthened our

demand. Hence this was incorporated in the

Charter of Demands prepared by the four

officer organisations and submitted to IBA.

Then came the Code on Wages Bill 2017 ta-

bled in Lok Sabha which revealed the inten-

tion of the Government to implement the

minimum wages principle for the organized

sector. Since introduction of the bill in Lok

Sabha in 2017, AINBOF has been advocating

for the Minimum Wages principle adopted in

the bill as it envisages fixing salary based on

that formula only for the Bank Officers.

Government of India itself admitted that a

Bank Officer in JMG Scale 1 is equivalent to

Grade “A” Officer in Central Government

while establishing equivalence of posts in

the matter of fixing creamy layer for OBCs.

From this our demand of getting the pay

parity which was established by Pillai Com-

mittee recommendations in 1979 but dilut-

ed in the subsequent bipartite settlements,

was all the more strengthened.

Till date the negotiations have not happened

on the lines of Charter of Demands submit-

ted by us and IBA commenced its offer with

a measly 2 percentage increase. The initial

offer of 2% was increased to 10% by IBA

much to the disappointment of the bankers.

As per the minimum wages formula the ini-

tial pay of the lowest placed government

employee is Rs.18000 as on 01.01.2016 and

it is demanded by them that this minimum

to be increased to Rs.28000. The Grade “A”

officers are getting minimum pay of

Rs.56100 which is 3.12 times of Rs.18000

and will be Rs.87360 if their demand of

Rs.28000 is accepted.

Government of India has passed the Code on

Wages Bill and notified on 08.08.2019 after

getting Presidential assent and this is going

to determine the pay for millions in the orga-

nized sector which cannot be below

Rs.18000/-. AINBOF was insisting for wage

revision based on Minimum Wages Principle

and not on percentage basis in order to

bridge the huge gap in salary and to ensure

the pay parity with that of the Grade A Of-

ficers in Central Government.

The importance of Minimum Wages Principles

and the construction of pay are lucidly ex-

plained in the seventh central pay commis-

sion report and the relevant portions are re-

produced hereinbelow along with our infer-

ences to bring about clarity for all con-

11th Bipartite Settlement—Negotiations with IBA AINBOF Circular GS/AUG/2019/015 dated 25.08.2019

15


cerned.

4.1.2. Employee compensation is an im-

portant element of government func-

tioning. In general, the level and

structure of compensation should aim

to achieve four objectives:

(i) pay should be sufficient to attract

and retain high quality staff;

(ii) pay should motivate staff to work

hard;

(iii) pay policy should induce other

human resource management re-

forms; and

(iv) pay should be set at a level to

ensure long term fiscal sustaina-

bility.

The level of compensation provided

should be enough to attract and re-

tain quality and motivate the em-

ployees to work hard in the interest

of the organization.

4.1.9. The efforts of the Commission have

been to devise a pay structure to ad-

dress all the above listed issues and

concerns. Special emphasis has been

laid on designing a pay matrix which

is simple, transparent, predictable

and easily comprehensible. During

their interactions with the Commis-

sion, the stakeholders placed many

demands, ranging from common en-

try pay, rationalization of the exist-

ing grade pay structure, common

treatment of like cadres, transpar-

ent pay structure as also increasing

the frequency of the MACP. The new

pay matrix incorporates all these

features: subsuming the grade pay,

the rationalized matrix presents the

whole universe of pay levels in one

simple chart. The levels have been

rationalized too, displaying a logical

pay progression. Employees would be

able to see their pay level, where

they fit in and how they are likely to

progress over their career span. The

Commission has also recommended

simplified procedures for computa-

tion of pension.

The pay structure should be easily under-

standable by all the employees and it

should be transparent with assured and

logical increase during their career.

4.1.11. The pay matrix addresses the im-

portant issue of adequacy of the

compensation structure. The Com-

mission observes that the purpose of

pay is to compensate the employees

for work done, to motivate them to

perform well. The purposes also in-

clude attracting talent to govern-

ment service and also retaining

them, thus avoiding the need for ex-

pensive recruitment and training for

replacement.

The pay should be adequate for the work

done by the employees and further moti-

vate them to perform well besides ensur-

ing retention of talent to avoid recruit-

ment and training costs.

4.1.12 Ideally speaking, the compensation

package should be a well defined

function of prescribed educational

and other entry level qualifications,

job content, roles and responsibili-

ties attached to the position ......

The pay should commensurate with educa-

tional and entry level qualifications, job po-

sition and responsibilities that go with that

position.

4.1.13 The Commission has also analyzed the

important question of whether wages

are sufficient to attract and retain

16


qualified staff. One way to address

this question is to compare wages in

government sector positions with

wages for comparable positions in the

private sector. ......

This goes to prove that Government has

gone to the extent of comparing the wages

with comparable positions in private sector

while arriving at the minimum pay.

4.1.15 Having said this, there is no denying

that officers at higher level shoulder

maximum responsibility and account-

ability and hence should be compen-

sated accordingly. In light of this, the

Commission has accorded slightly

higher index of rationalization at lev-

el of Senior Administrative Grade and

above.

The officers are given more weightage

while fixing the minimum basic considering

the responsibility and accountability that

goes with their work.

4.1.17 The Commission has adopted an in-

novative design to make the remu-

neration structure attractive. It has

adopted the need based minimum

wage formula for designing the pay

matrix. The rationalization of pay

levels has been done keeping this

minimum pay as the base for all cal-

culations.....

To make the remuneration structure at-

tractive the commission has adopted inno-

vative design that is the need based

“Minimum Wage Formula”.

4.1.22 One recurrent theme in the repre-

sentations of various associations re-

lates to ‘equity’ or ‘Equal Pay for

Equal Work’. Ideally, the remunera-

tion package should establish hori-

zontal equity: employees should feel

that their pay is comparable with

the remuneration structure of simi-

larly placed positions outside their

organization. The employees should

also feel that the pay structure

shows linear progression pattern and

thus the notion of vertical equity is

also maintained. .......

While horizontal growth is taken care of

due weightage is also given for maintain-

ing the vertical equity on promotions by

taking into consideration the pay for simi-

lar positions outside the organization.

4.1.23 The Commission feels that there is

strong need to create a culture of

performance in government – from

establishing standards of perfor-

mance, to measuring, and promot-

ing people based on performance.

To emphasize on the culture of per-

formance, the Commission has rec-

ommended that all the non-

performers in the system should be

phased out after 20 years. The Com-

mission has recommended that Per-

formance Related Pay should be in-

troduced in the government and

that all Bonus payments should nec-

essarily be linked with productivity.

Minimum pay is assured and payment of

performance bonuses are necessarily linked

with productivity. Not the entire pay is

linked to productivity.

4.2.1 The estimation of minimum pay in gov-

ernment is the first step towards

building its pay structure. In doing so,

the approach is to ascertain, by using

the most logical and acceptable meth-

odology, what the lowest ranked staff

in government needs to be paid to en-

able him to meet the minimum ex-

penditure needs for himself and his

family in a dignified manner.

Minimum pay should be arrived at logically

17


in an acceptable method and which the

lowest ranked employee should get to lead

a DECENT LIFE with this family members.

4.2.2 In making this assessment various meth-

odologies are possible, and have been

considered by different Pay Commis-

sions. The V CPC adopted the ‘Constant

Relative Income Approach’ to estimate

the minimum pay. This approach is

based on the principle that the real

minimum pay must grow in tandem

with real per capita income so that the

compensation of government staff is

not independent of the economic reali-

ties of the country.........

4.2.3 To estimate the minimum pay in the

government, the VI CPC used the norms

set by the 15th Indian Labor Confer-

ence (ILC) in 1957 to determine the

need-based minimum wage for a single

industrial worker. The norms set by the

ILC are as below:

i. A need-based minimum wage for a

single worker should cover all the

needs of a worker’s family. The

normative family is taken to con-

sist of a spouse and two children

below the age of 14. With the hus-

band assigned 1 unit, wife, 0.8 unit

and two children, 0.6 units each,

the minimum wage needs to ad-

dress 3 consumption units;

ii. The food requirement per con-

sumption unit is shown in the An-

nexure to this chapter. The speci-

fications were derived from the

recommendations of Dr. Wallace

Aykroyd, the noted nutritionist,

which stated that an average Indi-

an adult engaged in moderate ac-

tivity should, on a daily basis, con-

sume 2,700 calories comprising 65

grams of protein and around 45-60

grams of fat. Dr Aykroyd had fur-

ther pointed out that animal pro-

teins, such as milk, eggs, fish, liver

and meat, are biologically more

efficient than vegetable proteins

and suggested that they should-

form at least one-fifth of the total

protein intake;

iii. The clothing requirements should

be based on per capita consump-

tion of 18 yards per annum, which

gives 72 yards per annum (5.5 me-

ters per month) for the average

worker’s family. The 15th ILC also

specified the associated consump-

tion of detergents, which can be

seen in the Annexure;

iv. For housing, the rent corresponding

to the minimum area provided un-

der the government’s industrial

housing schemes is to be taken.

The 15th ILC kept it at 7.5 percent

of the total minimum wage;

v. Fuel, lighting and other items of ex-

penditure should constitute an addi-

tional 20 percent of the total mini-

mum wage.

4.2.4 The VI CPC considered additional com-

ponents of expenditure to cover for

children’s education, medical treat-

ment, recreation, festivals and cere-

monies. This followed from the Su-

preme Court’s ruling in the Raptakos

Brett Vs Workmen case of 1991 for

determination of minimum wage of

an industrial worker. The Supreme

Court had prescribed this amount at

25 percent of the total minimum

wage calculated from the first five

components. However, in considering

this additional component the VI CPC

took note of the educational allow-

18


ance and medical facilities being pro-

vided by the government.........

Paragraphs 4.2.2 to 4.2.4 speak about how

the minimum pay was arrived in the previ-

ous pay commissions.

Fifth pay commission intended to keep the

minimum pay growth aligned with the eco-

nomic / inflationary growth.

But Sixth CPC used the norms set by Indian

Labour Congress in 1957. It advocates for a

need based minimum wage for a worker’s

family comprising spouse and two children.

This takes into account the family’s food /

nutritive requirements based on the recom-

mendations of Dr.Wallace Aykroyd, the not-

ed nutritionist, the clothing requirements,

housing, fuel, lighting and other items of

expenditure. In addition to the above ex-

penditure for children’s education, medical

treatment, recreation, festivals and cere-

monies were also included following Su-

preme Court’s ruling for determination of

minimum wage.

4.2.5 In its representation the JCM-Staff Side

has submitted that the Commission

must determine a ‘need-based mini-

mum pay,’ estimated entirely from the

ILC norms and factoring in the 1991

ruling of the Supreme Court to provide

for education, medical, recreation,

festivals and ceremonies. In addition

they have also sought the inclusion of

a quantified skill factor on the lines of

the VI CPC’s approach for addressing

the merger of the Group D staff into

Group `C’. They have further stated

that unlike the previous CPCs, the

Commission should not exclude any of

the seven components (five ILS compo-

nents + additional 25 percent provi-

sioning + skill factor) on the apprehen-

sion that it would impose a heavy fi-

nancial burden on the government.

4.2.6 Based on the various components of

the ILC norms and the subsequent ad-

ditions the JCM-Staff Side has report-

ed that the minimum pay should be

Rs.26,000 per month, as on

01.01.2014, the date from which it

wants the Commission’s recommenda-

tions to be implemented. The prices

used for the calculation are stated to

be the retail prices prevailing in New

Delhi, Mumbai, Chennai, Kolkata, Hy-

derabad, Bhubaneswar, Trivandrum

and Bangalore, as on 01.01.2014. The

JCM-Staff Side has argued that this

estimation of minimum pay is still on

the lower side. This is on the basis of

their argument that the 15th ILC

norms need to be revised for including

old and dependent parents as addi-

tional consumption units.

The fact that the submissions of the JCM

Staff side are reckoned by Commission it-

self proves that the CPC is not a unilateral

mechanism as claimed by certain quarters.

Besides, the Commission has recorded

many times in the report that the views of

the stakeholders are considered.

Besides, the demand of the JCM Staff side

is a minimum pay of Rs.26000 per month

and that too as on 01.01.2014. Their argu-

ment is that the minimum pay calculated is

on the lower side since the 15th ILC norms

need to be revised for including old and de-

pendent parents also.

4.2.7 The 15th ILC norms were formulated in

1957. As such, the I CPC, which gave

its recommendations in 1948, pre-

dated the same. The II CPC did make

an initial assessment using the ILC

norms. However, it moderated the

minimum pay so calculated in line with

the then prevailing per capita income.

19


The III CPC adopted a modified version

of the norms to calculate the mini-

mum pay. The IV CPC estimated the

minimum pay by applying the growth

of total emoluments index on the min-

imum pay estimated by the III CPC. As

already discussed, the V CPC estimat-

ed the minimum pay through the

‘Constant Relative Income Approach’

whilst the VI CPC adopted the 15th ILC

norms to arrive at a base figure, to

which was added additional 25 per-

cent for various additional items plus

the skill factor. The Commission has

thus noted that directly or indirectly,

the ILC norms have always been at the

core of the minimum pay calculations

made by the previous Pay Commis-

sions. The Commission is also of the

view that the ILC norms, along with

other supplements (the entire set of

seven components), are the best ap-

proach to estimating the minimum pay

as it is a need-based wage calculation

that directly costs the requirements,

normatively prescribed to ensure a

healthy and a dignified standard of

living.

The commission accepted that though the

ILC norms were the basis for previous pay

commissions also sixth pay commission also

accounted for additional components as

per Supreme Court order on determination

of minimum wage.

Seventh Pay commission found that the ILC

norms along with other supplements are

the best method for arriving at the mini-

mum pay and this need based wage calcula-

tion so arrived will ensure a healthy and

dignified standard of living.

4.2.8 The Commission has estimated the min-

imum pay through the following steps:

Step 1: The food, clothing and detergent

products listed and their respective

quantities specified by the 15th ILC

have been adopted. These quantities

indicate the monthly consumption of

the listed products by a family com-

prising three consumption units. [For

e.g. for the product ‘Dal’ the quantity

specified for daily consumption is 80

grams per consumption unit per day.

The monthly consumption of Dal by a

consumption unit thus works out to

2.4 kg (80 x 30).

Accordingly the monthly consumption

of Dal by a family comprising 3 units

is 7.2 kgs (2.4 x 3).]

Step 2: The quantities have been multiplied

by their respective product prices to

arrive at product wise cost. The price

adopted for each product is the aver-

age of prices of various items that

are included in the product. The

price of an item is the average of its

prices prevailing in each month from

July, 2014-June, 2015. [At monthly

family consumption of 7.2 kg the

Commission has estimated the

monthly expenditure on Dal at

Rs.704.44 after calculating the price

of Dal at Rs.97.84 per kg. The price

of Dal has been calculated as the av-

erage of prices of Toor, Urad and

Moong Dal items specified under the

product Dal and whose prices have

been determined at Rs.87.86,

Rs.109.66 and Rs.96.00 respectively.

The prices of these three Dal items

are the twelve monthly average pric-

es for the period July, 2014–June,

2015.] The prices of all items have

been sourced from Labor Bureau,

Shimla. These prices are used in the

calculation of the CPI (IW) and subse-

quently the calculation of Dearness

Allowance. In the current exercise

20


the prices of all items are for the pe-

riod July 2014-June 2015 and have

been used in the calculation of DA at

119 percent operative from

01.07.2015.

Step 3: The cost of food, clothing and deter-

gent products obtained from Step 2

has been divided by 0.8 to arrive at a

total, of which 20 percent provides

for fuel and lighting expenses. This

addresses the fifth component under

para 4.2.3. The fourth component on

housing under para 4.2.3 has not

been addressed at this stage as its

quantification at the final stage of

pay estimation is considered more

appropriate by the Commission.

Step 4: The cost estimated from Step 3 is di-

vided by 0.85 to arrive at a total, of

which 15 percent is towards recrea-

tion, ceremonies and festivities. The

prescribed provision of 25 percent to

cover education, recreation, ceremo-

nies, festivals and medical expenses

has been moderated to 15 percent

because expenses on educational and

medical necessities are being sepa-

rately provided for through relevant

allowances and facilities and thus

need not be provided here. This par-

tially addresses the first of the two

components outside the 15th ILC

norms.

Step 5: The cost estimated from Step 4 is in-

creased by 25 percent to account for

the skill factor, following the reason-

ing that there is no unskilled staff in

the government after the merger of

Group D staff in Group `C’. This ad-

dresses the second of the two compo-

nents outside the 15th ILC norms.

Step 6: The cost estimated from Step 5 is di-

vided by 0.97 to arrive at a total, of

which 3 percent provides for housing

expenses. This is done in view of the

observation that license fees for gov-

ernment accommodation is about 3

percent of the total pay. This ad-

dresses the fourth component stated

under para 3 but partially so, as the

15th ILC norms had fixed the housing

provision at 7.5 percent.

Step 7: The cost estimated from Step 6 is as

on 1 July, 2015 when the DA was 119

percent. The DA is assumed to be 125

percent as on 1 January, 2016, the

day from which the Commission ex-

pects its recommendations to be im-

plemented by the government. Ac-

cordingly the cost estimated from

Step 6 has been increased by 3 per-

cent (2.25/2.19 = 1.027 or nearly

3%).

4.2.9 The cost estimated from Step 7 is next

rounded off to Rs.18,000, which is the

minimum pay being recommended by

the Commission, operative from

01.01.2016. This is 2.57 times the mini-

mum pay of Rs.7,000 fixed by the gov-

ernment while implementing the VI

CPC’s recommendations from

01.01.2006. Accordingly, basic pay at

any level on 01.01.2016 (pay in the pay

band + grade pay) would need to be

multiplied by 2.57 to fix the pay of an

employee in the new pay structure.

The various steps involved in the calcula-

tion of minimum pay of Rs.18000 per

month are explained in detail in paragraphs

4.2.8 & 4.2.9 Further, the basic play is

multiplied by a factor of 2.57 at all stages

thus maintaining uniformity while arriving

at the new basic pay.

4.2.11 Besides DA, government provides

house rent, transport, location and

function specific allowances besides

21


Leave Travel Allowance (LTA) which,

along with the basic pay, constitute

the gross pay of a government employ-

ee. If one were to only take HRA and

transport allowance, as are admissible

in A1/A class cities, together with edu-

cational allowances for two children,

the gross pay further increases to

Rs.20,870 per month......

This makes it clear that the minimum pay

of Rs.18000/- per month arrived at by CPC

is only basic + DA and all other allowances

are exclusive of this.

4.2.13 After considering all relevant factors

the Commission is of the view that the

minimum pay in government recom-

mended at Rs.18,000 per month, w.e.f.

01.01.2016, is fair and reasonable and

one which, along with other allowances

and facilities, would ensure a decent

standard of living for the lowest ranked

employee in the Central Government.

Commission is of the view that minimum

pay of Rs.18000/- per month is fair and rea-

sonable and would ensure a decent stand-

ard of living for the lowest ranked employ-

ee.

5.1.5 The Commission has endeavored to in-

corporate the above principles while

devising the new pay structure. The

approach of the Commission has been

to ensure that the emolument struc-

ture is in consonance with the nature

of work, role and responsibilities and

accountability involved at various lev-

els of the hierarchy in the Government

of India.........

The commission’s approach is the pay

should be matching to the stature of the

employee in the organization and relation

with the responsibilities and accountability

involved.

5.1.16 The pay structures in vogue, by way of

pay scales or pay bands, indicate the

definite boundaries within which the

pay of an individual could lie. It is

however difficult to ascertain the ex-

act pay of an individual at any given

point of time. Further, the way the

pay progression would fan out over a

period of time was also not evident.

Since various cadres are designed dif-

ferently the relative pay progression

also varies. The Commission believes

that any new entrant to a service

would wish to be able to make a rea-

sonable and informed assessment of

how his/her career path would trav-

erse and how the emoluments will pro-

gress alongside.

The commission’s approach is that the pay

structure should be simple enough to be

understood by all and any new recruit

should be in a position to know his career

progression and make out the salary in-

crease without any difficulty.

5.1.21 The pay matrix comprises two dimen-

sions. It has a “horizontal range” in

which each level corresponds to a

‘functional role in the hierarchy’ and

has been assigned the numbers 1, 2,

and 3 and so on till 18. The “vertical

range” for each level denotes ‘pay

progression’ within that level. These

indicate the steps of annual financial

progression of three percent within

each level. The starting point of the

matrix is the minimum pay which has

been arrived based on 15th ILC norms

or the Aykroyd formula. This has al-

ready been explained in Chapter 4.2.

5.1.22 On recruitment, an employee joins at

a particular level and progresses with-

in the level as per the vertical range.

The movement is usually on an annual

basis, based on annual increments till

the time of their next promotion.

22


5.1.23 When the employee receives a promo-

tion or a non-functional financial up-

grade, he/she progresses one level

ahead on the horizontal range.

5.1.24 The pay matrix will help chart out the

likely path of pay progression along

the career ladder of any employee.

For example, it can be clearly made

out that an employee who does not

have any promotional prospects in his

cadre will be able to traverse through

at least three levels solely by means of

assured financial progression or MACP,

assuming a career span of 30 years or

more.

5.1.39 In the true spirit of having open ended

pay scales the span of levels 1 to 11

has been kept at 40 years. This has

been done to ensure that no stagna-

tion takes place.

The pay structure has two structures hori-

zontal and vertical progression. On promo-

tion the employee will move horizontally

to the next level and yearly increments

will be in a vertical range within the level.

Even without any promotional prospects

an employee will tranverse through three

levels with assured financial increase by

way of Minimum Assured Career Progres-

sion and keeping the span of levels at 40

years virtually eliminates stagnation at all.

Commission has also endorsed this saying

it is done to ensure that no stagnation

takes place. This is akin to our demand for

running scale of pay.

5.1.40 This Commission has felt that com-

parison of entry pay of the lowest

functionary in the government with

the highest pay drawn by the Secre-

tary to Government of India is not

appropriate. The comparison should

be like to like while calculating the

compression ratio. Accordingly, the

lowest pay at entry level of Group

`C’ should be compared with the en-

try pay of Group À’ to arrive at the

compression ratio. This Commission

has recommended a minimum pay of

Rs.18,000 at entry level in Group `C’

and Rs.56,100 as entry pay at Group

À’ level. The compression ratio is

thus arrived at 1: 3.12 which signifies

that a Group À’ officer entering the

government on direct recruitment

basis gets roughly three times the

pay drawn by a Group `C’ level func-

tionary at their entry level.

The compression ratio of 3.12 is nothing

but the relativity factor where we are de-

manding improvement. This relativity will

bring better salary for officers and above.

5.1.42 The various associations of the JCM-

Staff Side have demanded that the

recommendations of this Commission

should be implemented w.e.f.

01.01.2014. Their argument is that

there has been substantial erosion in

the value of wages owing to non-

merger of DA, which has crossed the

100 percent mark in January 2014.

They have also demanded wage revi-

sion after every five years, instead of

the present decennial exercise.

5.1.49 The Commission, after its interaction

with the authorities of Australia and

New Zealand, feels that India should

also have a permanent Remuneration

Authority that should review the pay

structure based on job roles evalua-

tion, remuneration prevailing in the

market for comparable job profiles,

general working of the economy, etc.

within a given budgetary outlay. With

this, the pay structure could be re-

vised periodically, at more regular in-

tervals, say annually, without putting

an undue burden on the public ex-

23


chequer every ten years, as is the

case now. Such a periodic review may

have many possible fallouts: impact of

revision of wages could be easily ab-

sorbed in each year’s budget and

quicker remediation of anomalies

would take place, leading to greater

employee satisfaction. In the back-

drop of annual revisions, the present

system of biannual revision of DA

could also be dispensed with.

Even the Central Government staff have de-

manded wage revision every 5 years and

their demand for minimum pay was

Rs.26000/- per month as on 01.01.14 which

they are still pursuing and going by the in-

dications they may get also.

The commission has also felt that the re-

view of pay should be done more fre-

quently and they have even suggested an-

nually. This effectively rules out the fear

created by certain quarters that if we are

demanding wages based on the minimum

wages formula then our salary revision will

happen once in ten years.

From the above it could be made out that

the Central Pay Commission has taken elabo-

rate steps to arrive at the Minimum basic

pay of Rs.18000/- per month in a logical and

acceptable manner . Besides, this is ex-

pected to help the lowest ranked employee

of the Government and his family to lead a

decent life matching to his status.

The passage of Code on Wages Bill in the

parliament and its gazette notification ef-

fectively implies the Government’s intention

of implementing salary as per the minimum

wages policy which includes the officers

working in the banking industry too.

The Central Pay Commission has also

vouched for the irrelevance of the stagna-

tion and strongly felt that the pay increase

should not be stopped merely on account of

non-availability of promotions and there

should be an assured increase and it is envis-

aged through Minimum Assured Career Pro-

gression spanning for 40 years spread across

11 cadres. With the promotions and career

progression not in the hands of the young

officers, who have joined the banking indus-

try in large numbers making up 70% of the

officers community nowadays, it is in their

best interests that the demand for running

scale of pay has been made.

It appears that the intention of the policy

makers behind their stubbornness on the

mandate issue is that freeing the scale 6 and

scale 7 from the negotiations and from IBA

settled wages will be paving the way for

them to recruit executives at that level from

market as is happening in few private sector

banks already. This would affect the career

prospects of even the existing officers up to

Scale V who have risen through the ranks in

their organization with their hard work.

Thus any of our demands should not be wa-

tered down and we must stick to the charter

of demands submitted by all the officer or-

ganisations and pursue the demands vigor-

ously until the same are attained without

any concessions.

Our demands should be

1. Settlement of Wage revision based on Mini-

mum Wages principles as incorporated in

Charter of Demands

2. Unconditional Mandate upto Scale VII

3. Running scale of pay

4. Updation of pension

The voice of the youth

of not wanting a

QUICK SETTLEMENT

but prepared to wait for a

“QUALITY SETTLEMENT”

based on Minimum Wages Formula

24


AIBPARC / CBPRO NEWS

AIBPARC holds first meeting of the Governing Council for the calendar year

2019At New Delhi on 30th July, 2019 in the midst of massive

participation and enthusiastic deliberations

AIBPARC Circular 52/19 dated 05.08.2019

We have pleasure to inform that we had our

first meeting of GC for the calendar year

2019 on 30th July at BT Ranadive Memorial

Trust Hall, New Delhi. Office bearers, EC

Members and State Secretaries assembled

from different parts of the country and it

was almost a full house of more than 100

participants. The meeting continued for

more than 8 hours and 30 leaders took part

in deliberations. The highlights of the meet-

ing and the decisions taken are being enu-

merated hereunder for information of mem-

bers :

• The State Committee of Delhi was as

usual at its best. All the members of

the state committee and the leaders

and veterans stationed in the national

capital laboured hard to see that the

meeting is held in a proper manner at

a well decorated auditorium and the

comfort of every member is taken care

of in the best possible manner.

• The written report of the General Sec-

retary and audited accounts for the

year ending 31.03.2019 were placed

before the house for discussion and ap-

proval.

• Com. K.V. Acharya, President, ap-

pealed to the members to be brief and

systematic in deliberations and arrive

at fruitful decisions on all issues which

are relevant to the contemporary situ-

ation. He requested the members to

first discuss all issues relating to Gra-

tuity – the quantum of higher ceiling to

be made effective from the same date

as of central government employees,

the computation of gratuity to be done

on which period i.e. the debate per-

taining to half month and one month

and a half and taking the component

DA in the matter of calculation of Gra-

tuity.

• In response to his call, different mem-

bers who have made sufficient applica-

tion of mind on different court cases

passed by various courts and verdicts

given by different ALCs took part in

deliberations. It was decided that the

participants who took part in delibera-

tions would submit their views/

observations in writing and the central

office after consideration of all such

views would try to arrive at a plan of

action to remove any confusion in this

regard and to take organizational and

other remedial measures to sort out

the issues.

• The next issue which was deliberated

at length was the coordination with

other retiree organisations of the

banking industry. The house noted

with satisfaction the role of AIBPARC in

fostering larger unity because the pen-

sioners felt that it was the only step to

achieve the demands. The house also

observed with annoyance certain dis-

quieting features at recent times at

different parts of the country which

were not congenial to projection of a

unified image before IBA and govern-

25


ment. It was hoped that all the retiree

organisations would appreciate the need

of unity at a crucial juncture of the

movement and behave in a manner

which is congenial in furtherance and

consolidation among retiree organisa-

tions.

• The meeting expressed serious concern

at the present stalemate persisting in

wage revision talks. While appreciating

the principled stand of AIBOC and NOBO

on the issue of fractured mandate, the

house made an appeal to IBA and gov-

ernment to start meaningful dialogue on

wage revision matters including issues

of retirees by taking all the unions and

associations in confidence. The entire

community of officers from Scale I to

Scale VII should come under the purview

of bipartite negotiations as in other

years.

• The house appreciated the move of AI-

BOC to have free and frank dialogue

with AIBPARC and all other important

retiree organisations of the country on

issues affecting the interest of retirees.

As it was first such move, the house

welcomed the step and hoped that this

kind of exchange of views would take

place more frequently in days to come

particularly when bipartite negotiations

will reach a crucial stage.

• The house felt that the issue of up-

dation of pension has got an additional

momentum after the same being imple-

mented in RBI. The so-called burden of

cost factor which is floating in the mar-

ket is unrealistic and it has no connec-

tion with facts. AIBPARC has done its

own calculation and it has been seen

that the cost is reasonably low and it

has a parity with the actual cost experi-

enced in RBI.

• The house expressed resentment at non

implementation of SC judgement on is-

sues like notional seniority of 5 years to

specialist officers, arrear of commuta-

tion to a specified group of retirees and

IBA’s remaining silent on issues of stag-

nation increment and the court verdict

on Gramya Bank of Maharastra and ex-

ploring the possibility of its extension to

other banks.

• The house appreciated the proactive

role of AIBPARC in continuously remind-

ing the Ministers, the bureaucrats and

the IBA about the core issues of the re-

tirees i.e. updation of pension, im-

provement of family pension in line

with Govt. employees, 100% DA neutrali-

zation, group mediclaim scheme etc. It

was also decided that if encouraging re-

sults do not forthcome, the organisation

will have to remain in preparedness for

launching demonstrative programmes

with a short notice to highlight the dep-

rivation of bank pensioners and retirees.

• At the end, Com. K.V. Acharya, Presi-

dent observed that all the issues of the

pensioners and retirees, spelt out in our

charter of demands, are very much

close to our heart but during current ne-

gotiations, we shall have to give top-

most priority to the core issues which

are affecting the retirees in large num-

bers. The issue of group mediclaim is

also of paramount importance to all of

us and we are in the process of explor-

ing various ways and means to bring

substantial relief to the elder citizens.

Com. S. Sarkar, GS summed up the de-

liberations and answered to all the que-

ries. Thirty members took part in delib-

erations and contributed their wisdom

26


in the decision making process.

Members are assured that all the decisions

taken in the meeting at GC will be imple-

mented and all units and state committees

are requested to remain totally prepared for

any call of the organisation in relation to

demonstrative programmes to give vent to

our sense of dissatisfaction.

With best wishes,

( SUPRITA SARKAR ) GENERAL SECRETARY

Removal of inconsistencies in calculation of gratuity

vis-à-vis the provisions of “Payment of Gratuity Act.” AIBPARC Circular 54-19 dated 12.08.2019

The first meeting of the Governing Council

of the calendar year 2019 held at New Delhi

on 30th July, 2019 deliberated at length on

different issues in regard to payment of gra-

tuity. A decision was taken in the said

meeting that the issue will be studied at

length and suitable correspondence will be

initiated with various authorities for remov-

al of inconsistencies. In pursuance of the

said decision, a letter under the join signa-

tures of President and General Secretary of

AIBPARC has been sent to the Secretary, De-

partment of Financial Services, Govt. of In-

dia, the Chief Executive, Indian Banks Asso-

ciation and the Secretary, Ministry of Labour

and Employment, Govt. of India. A copy of

the said letter is being reproduced hereun-

der for information of members.

With best wishes,

( SUPRITA SARKAR )

GENERAL SECRETARY

Quote :

Removal of inconsistencies in calculation

of Gratuity vis a vis the provisions of

‘Payment of Gratuity Act’

The Public Sector Banks have their own

scheme for payment of Gratuity, the essen-

tial component of which are as under.

1. Gratuity is payable at the rate of one

month salary for each completed year of

service up to 30 years of service subject

to a maximum of 15 months

2. Above 30 years of service, Gratuity is

payable at the rate of one half of the

month’s salary for each completed year

of service beyond 30 years.

3. The Salary includes Basic Pay, Stagnation

Increment, Officiating Allowance, In-

crement component of Fixed Perma-

nent Allowance (FPA) & Professional

Qualification Allowance (PQA)

4. The formula for computation of Gratuity

is -

“Salary x 15 days x Number of Years Ser-

vice / 30 days”

The ‘Payment of Gratuity Act’ provides fol-

lowing essential component and methodolo-

gy for computation of Gratuity:

1. Gratuity is payable at the rate of one

month salary for each completed year

of service up to 30 years of service

subject to a maximum of 15 months.

2. Above 30 years of service, Gratuity is

payable at the rate of one half of the

month’s salary for each completed

year of service beyond 30 years.

3. The Salary includes Basic Pay, Stagna-

tion Increment, Officiating Allowance,

Increment component of Fixed Perma-

nent Allowance (FPA), Professional

27


Qualification Allowance (PQA) & Dear-

ness Allowance.

4. The formula for computation of Gratuity

is -


vice / 26 days”

Section 4(5) of The Payment of Gratuity Act

provides that nothing in the section shall

affect the right of an employee to receive

better terms of Gratuity under any award or

agreement or contract with their employ-

er. This provision implies that the Gratuity

in the Public sector Banks shall be calculat-

ed by using both the above mentioned

methodologies and the better of the two

shall be payable to the retiring employees.

It can be seen that the components 3 & 4

mentioned above in the Banks scheme are

at variance and inconsistent with the essen-

tial components mentioned as per the Pay-

ment of Gratuity Act.

The Payment of Gratuity Act is a self-

contained code and Section 14 of the Act

overwrites other enactments and since the

Act is passed in Parliament, it is superior to

the inconsistent provisions in the Gratuity

Schemes of Public Sector Banks.

Inconsistency with the provisions of The

Payment of Gratuity Act apart, our demand

for inclusion of Dearness Allowance as a

component of ‘Pay' for the purpose of com-

putation of gratuity is also supported by the

judgement of the Hon’ble High Court of

Madhya Pradesh, which held in the case of

All India Gramin Bank Pensioners' Organisa-

tion that ‘emoluments’, ‘pay' & ‘salary'

would include ‘Dearness Allowance for the

purpose of computation of gratuity.

Similarly, our demand for reckoning of Spe-

cial Allowance along with ‘pay’ for the pur-

pose of computing gratuity is supported by

the judgement of the Hon’ble Supreme

Court which held in the case of Provident

Fund Commissioner that any Special Allow-

ance which is payable to all staff across the

board And is not associated with discharge

of any specific function and is also payable

during the period when the employee is on

leave, is to be treated as a component of

pay for this purpose. As regards an industry

level settlement to the contrary, a kind at-

tention is invited to the judgement dated

13.02.2018 of the Hon’ble Supreme Court

wherein it was held that any settlement

which is against the basic spirit of the regu-

lations/law is null and void. IBA has imple-

mented this judgement in its member banks

while correcting the discrepancy in the case

of fixation of pension in the case popularly

known as 1616 point vis a vis 1684 points.

In view of the foregoing facts and submis-

sions, we request you to make necessary

arrangements for removal of the abovemen-

tioned inconsistencies by advising the Public

Sector Banks to modify their Gratuity

Schemes by incorporating the following es-

sential components:

a. Incorporate Dearness Allowance & Spe-

cial Allowance carrying Dearness Allowance

into the definition of ‘Salary’.

b. Modify the formula for computation of

Gratuity as it appears under the Payment of

Gratuity Act.


vice / 26 days”

Sir, You will appreciate that the requested

modifications shall remove the inconsisten-

cies in the Banks’ Gratuity Scheme vis a vis

28


the provisions of Payment of Gratuity Act

while rendering justice to the Bank Employ-

ees and Officers who have been denied their

legitimate dues by paying lesser amount of

Gratuity hitherto.

Kindly do the needful and oblige.

Thanking you

Yours faithfully,

Sd/- Sd/-

( K.V. ACHARYA ) ( S. SARKAR )

PRESIDENT GENERAL SECRETARY

11th BI-Partite Settlement

Pending issues of Bank Pensioners and Retirees AIBPARC Circular 56-19 dated 26.08.2019

We are glad to learn that the next meeting

with IBA for discussions on impending wage

revision is scheduled for 29th August,

2019. We believe that it is an outcome of

sustained efforts on the part of UFBU. We

are confident that under stewardship of

UFBU leaders, the Bank Officers and Pen-

sioners will get a fair settlement and resolu-

tion of all pending issues including the ones

which found a mention in the Record Note

dated 25.5.2015 signed between IBA and

the constituents of UFBU.

CBPRO Constituents viz Federation of SBI

Pensioners Associations, AIBPARC, RBONC,

FORBE and AIRBEA along with AIBRF have

been taking up the pending issues of Bank

Pensioners and Retirees with the constitu-

ents of UFBU, more particularly with AIBOC

with a fond hope that the long pending is-

sues of Bank Pensioners and Retirees shall

be resolved amicably at least at the time of

signing of ensuing wage revision settlement.

To recapitulate, we once again furnish the

pending issues of Bank Pensioners and Retir-

ees here under with a request to ensure

that the same will get due attention leading

to amicable resolution:

1. Family Pension at Uniform rate of

30% of last drawn Basic Pay as being

paid to Government and RBI Family

Pensioners (Regulation 56).

2. Updation of Basic Pension as provided

in Pension Regulation 35(1) read with

56.

3. Uniform 100% DA Neutralisation

which found a mention in Record Note

with a response from IBA that the mat-

ter was then sub-judice but from a hu-

manitarian point of view, IBA might

examine feasibility of providing 100%

Dearness Relief neutralisation to Pre

November – 2002 retirees. Now that

the matter is no longer sub-judice, IBA

may be requested to consider the

same.

4. Medical Insurance to Retirees: Gov-

ernment of India vide its letter

no:14/7/92-IR(Volume II) dt 24.2.2012

advised to formulate a Medical Insur-

ance scheme both for serving and Re-

tired employees. The said letter did

not advise the IBA/Banks to discrimi-

nate between serving and retired em-

ployees with regard to the Premium.

However, the retirees were made to

bear the premium while for serving

employees it was borne by the Banks.

There is urgent need to remove such

anomaly more so when the premium

for retirees have been increased every

year enormously.

5. Reckoning of Special Allowance for

Pension and Gratuity: It was intro-

duced as an integral component of

29


monthly salary in the last settlement

and was not assigned to any special

function or duty performed by them. In

view of the judgement dated 13.2.2018

the Hon’ble Supreme Court held in Civil

Appeal no: 5525 of 2012 that any settle-

ment being arbitrary and repugnant to

other provision/regulation like 2(d), 38

(1) (2) and 35 was illegal. It may be ap-

preciated that the exclusion clause in

special allowance which made it unreck-

onable for terminal benefits is akin to

the explanation(c) to Pension Regulation

2(s) and hence is arbitrary and illegal. It

was again held by the Hon’ble Supreme

Court on 28.2.2019 in Civil Appeal

No:6221 of 2011 that the Special Allow-

ance payable to all the employees with-

out exception and also during their

leave period, not being assigned to per-

formance of any specific duty is an es-

sential component of Salary/Pay.

6. In view of the above Judicial pronounce-

ments by the apex court the exclusion

clause in the special allowance with re-

gards to its reckoning for Pension and

Gratuity is illegal ab initio. IBA may

therefore be requested to reckon the

special allowance for the purpose of

computing Pension and Gratuity wef

1.11.2012

6. Additional Stagnation Increment to those

who retired between 1.11.2012 and

30.4.2015: The Joint Note dated

25.5.2015 provided for grant of last/

additional increment on completion of

two years or more after getting the previ-

ous stagnation increment with stipulation

that the increment which fell due after

completion of two years from the date of

grant of previous stagnation increment

will be given wef 1.5.2015. It left those

officers who were due for additional stag-

nation increment between 1.11.2012 and

30.4.2015 after having completed two

years from the date of previous stagna-

tion increment, disentitled from the re-

spective date as the Joint Note provided

its release wef 1.5.2015. This arbitrary

denial has adversely affected those offic-

ers who retired between 1.5.2015 and

29.2.2016in terms of reduced Basic Pen-

sion and complete loss of arrears on this

count. This denial also needs rectification

retrospectively.

7. Abolition of New Pension Scheme: The

introduction of New Pension Scheme for

those who are recruitedafter April 2010

has deprived them the benefit of Defined

Benefit Pension Scheme. In view of the

fact that the Pensioners constitute a van-

ishing pride, it is important to ensure a

fair and equitable social security to all

employees and also ensure perpetuity of

Bank Pension Fund by extending the cov-

erage of Defined Benefit Pension Scheme

to all Bank employees and Officers irre-

spective of their date of recruitment. The

New Pension Scheme should consequently

be abolished and Justice rendered to new

generation of Bank employees and Offic-

ers.

It is also pertinent to mention that the Public

Sector Banks have been utilised as special

purpose vehicle for not only carrying out the

Government Schemes and Programmes but

also to do odd non banking jobs including cri-

sis management. Even in recent times the

Bankers have undertaken the programmes

like PM JanDhan Yojana, Mudra loans, Start

up India, Stand up India, Direct Benefit

Transfer, Digital Banking, MSME loans, De-

monetisation and latest being the most ambi-

tious programme of Hon’ble Prime Minister to

make India a 5 Trillion Dollar Economy with

the active involvement and efforts on the

part of Bank Officers and Employees. These

extra ordinary initiatives on the part of Bank

30


Officers, Employees and Retirees call for cre-

ation of correspondingly rewarding work at-

mosphere and monetary compensation to

serving and retired employees.

We request you to take up the foregoing is-

sues with IBA for amicable resolution in the

ensuing meeting.

With Regards,

Yours Comradely,

K V Acharya Suprita Sarkar President General Secretary.

CBROA NEWS

SRI GCS SHARMA, OUR MEMBER, HAS

BEEN ELECTED AS PRESIDENT OF IN-

FORMATION SECURITY, SYSTEMS

AUDIT, RISK & COMPLIANCE AND

GOVERNANCE (ISACA) HYDERBAD

CHAPTER.

Information Security, Systems Audit, Risk &

Compliance and Governance, is an Interna-

tional Body headquartered at Chicago hav-

ing 1,50,000 Members all over the world. At

Hyderabad there are nearly 1,000 members

consisting of Bankers, Software Profession-

als, Government Officials for which Sri.GCS

Sharma has been elected as the President

of the Hyderabad Chapter of ISACA. CBROA

heartily Congratulates Sri.Sharma Garu and

we wish all the very best in all his future

endeavours.

DEVASTATING FLOODS IN THE

STATE OF MAHARSHTRA, KARNA-

TAKA, GUJARAT, KERALA, ANDHRA

PRADESH, ODISHA AND MADHYA

PRADESH.

The nature again has struck humanity with

raging floods in the states of Maharashtra,

Karnataka, Gujarat, Madhya Pradesh, Od-

isha and Andhra Pradesh. Due to incessant

rains lashing all over, caused floods in

southern Maharashtra, northern, coastal

Karnataka, Kodagu in southern Karnataka,

where hundreds of villages were submerged

in water, marooned making the lives of mil-

lions of people miserable. People had to

rush to safer places deserting their homes,

animals. The unprecedented floods have

caused untold miseries to the people, hun-

dreds of people have lost their lives, loss of

property, houses, animals, standing crops.

Public properties and roads have been

washed out. The loss caused is immeasura-

ble and unfathomable.

As usual our Members in Pune, Nasik Re-

gion in Maharashtra lead by Sri.Ravindra

Wali, AGS Pune, Sri.Pradeep Jain, R S Pu-

ne, Sri.A R Gothe, Sri.R R Bagale, Sri.A M

Ghori, R S Nasik, have risen to the occa-

sion and pooled funds from our Members

amounting to Rs.65,000/- till 13.08.2019

and and handed over a cheque for

Rs.65,000/- to Sakal Relief Fund who are

collecting funds from the general public.

The funds will be utilized for the flood af-

fected people in the Districts of Sangli,

Kolhapur and Satara, This gesture on part

31


of our members is worthy of emulation. We

appreciate the munificence of our Members

in rushing to the flood affected people who

are in dire need of our help. Ms.Kiran Bam-

ne, who is active in philanthropic activities

and Sri.Niyaz Mujawar, both our Members,

have been working in the field for the last

many days in providing relief to the affect-

ed people. Smt.Kiran Bamne and her Team

collected and distributed clothes, food to

flood affected people. Smt.Kiran Bamne

and her team have been camping in flood

affected village and helping the people to

come out of trauma of the flash floods.

Hats off to these Members who have the

milk of human kindness in their hearts.

SRI.K SHANMUGHASUNDARAM, RE-

GIONAL SECRETARY, SALEM PRE-

SENTED A TROPHY TO THE BEST

ATHLETIC TEAM OF TELC SCHOOL,

YERCAUD

Sri.K Shanmughasundaram, Regional Secre-

tary,Salem has presented a trophy to TELC

School, Yercaud to be presented to the best

Athletic Team of the school. The Trophy is

given in loving memory of his parents on

the occasion of Celebration of 73rd Inde-

pendence Day. The Sports Meet is conduct-

ed by Rotary Club of Yercaud in the ROTO

SPORTS where Sri.Shanmughasundaram is a

member. He was President of Rotary Club

Yercaud during the period 2017-18. We wish

Sri.Shanmughasundaram all the very best in

all his future endeavours.

MEMBERS’ MEETING AT SALEM

A Meeting of our Members of Salem District

was held on 03.08.2019 at R O Salem.

Though the day wass “Aadi 18,” one of the

auspicious days for Tamil people, more

than 25 members attended the meeting.

The Meeting was graced by

Sri.Dharmarajan, AGM, R O Salem and other

Executives of R O Salem. Sri.S Sivasanka-

ran, our Senior Member presided over the

meeting. Sri.K Shanmughasundaram, Re-

gional Secretary, gave a brief account of

the proceedings of the Central Committee

Meeting held at Hyderabad on 13th and 14th

of July,2019. He deliberated on the issues

of Pension updation, improvement in family

pension, 100% D A Neutralisation for those

who retired prior to 01.11.2002, IBA Group

Mediclaim Policy for the retirees etc and

explained as to how our apex body AIBPARC

under the banner of CBPRO is campaigning

for clinching the issues. The proposed

DEATH RELIEF & BENEVOLENT FUND to be

floated by CBROA was discussed and the

members endorsed the proposal. He also

clarified the recent developments on the

Payment of Gratuity. He stressed the need

for strengthening CBROA by enrolling our

retiring and retired Officers of our Bank. He

solicited contributions to the LEGAL FUND

floated by our Association.

On the occasion 3 new Life Members were

enrolled. Sri.Janardhanan, our Senior

Member was elected as the District Presi-

dent and it was resolved to hold Meeting

of Members at periodical intervals.

Sri.K Shanmughasunadram, welcomed and

proposed vote of thanks.

32


MEMBERS’ MEETING AT CALICUT

The General Body Meeting of Members of

Calicut and Malappuram Districts was held

at Nalanda Auditorium at 4 pm on

04.08.2019. Sri.K V Raghavan, Regional Sec-

retary, presented a brief account of the

proceedings of the Central Committee

Meeting held at Hyderabad on 13th and 14th

July,2019. Sri.V Padmanabhan, C C Member

from Trivendrum addressed the gathering

and covered in brief the various develop-

ments on the issues of pensioners, the cam-

paign waged by our apex body AIBPARC etc.

He stressed the need fpr strengthening

CBROA in Kerala. Sri.P Balachandran, for-

mer C C Member, CBROA addressing the

gathering stressed the need for maintaining

a positive attitude towards life and the im-

portance of using our time for helping the

needy people in the society.

The following members were honoured on

completing 75+ years of age.

Sri.P Nandakumar, AGM(Retd), Sri.M C Ap-

pu, DM, Sri.M Devadas, CM, Sri.P Krishnan,

Smt.Neena Kumari.

The Meeting was addressed by Dr.V P

Anushree, daughter=in=law of our members

Sri.T Krishnan Unni and Smt.Girija Unni, on

the topic “Age and Life Style Diseases and

Preventive Measures.” The talk was very

informative and gave an edifying experi-

ence to the audience.

A District Committee for Malappuram Dis-

trict was formed with Sri.Rajan K K as the

President, Sri.Abdul Rasheed as Secretary,

Sri.P Karunakaran, Sri.T K Velayudhan,

Sri,.M Devadas, Sri.M Sukumaran and Sri Ve-

layudhan as District Committee Members.

Sri.K P P Nair, Ditrict President, CBROA,

Calicut presided over the Meeting and ad-

dressibg the members exhorted them to re-

main ever cheerful and not to burden their

minds with unnecessary worries, anxitees

etc which will cause emotional stress lead-

ing to to diseases.

Sri.P Ramakrishnan, District Secretary, Wel-

comed and Sri.T Krishnan Unni, proposed

vote of thanks.

MEMBERS’ MEETING AT PATNA ON

10TH AUGUST,2019.

A Meeting of our Members and Retirees was

held at Rajiv Nagar, Patna on 10th Au-

gust,2019. Sri.R N Thakur Regional Secre-

tary welcomed the members present.

In the beginning of the Meeting heartfelt

condolences were offered to the family of

Late Sri.PC Mishra, our Life Member and a

patron of our Association, who left for

heavenly abode recently. Rich tributes

were paid to Late Sri.P C Mishra, who

played a key role in building CBOA on a

very strong pedestal in the State of Bihar.

33


He was a person endowed with milk of hu-

man kindness and his deliberations on vari-

ous issues of the Officers’ fraternity had a

touch of scholarship. His oratorical skills

were worthy of emulation. The fraternity of

CBROA has lost a warrior for the cause of

pensioners of Banking Industry. The mem-

bers observed a Minute’s silence in honour

of the departed soul. May the departed soul

rest in eternal peace.

Sri.R N Thakur, Regional Secretary, deliber-

ated on the various issues of Pensioners and

retirees of Banking Industry, the campaign

launched by our Apex Body AIBPARC /

CBPRO. He also gave a brief account of the

discussions that took place at the Central

Committee Meeting held at Hyderabad on

13th and 14th July,2019. He made a mention

about the proposed Benevolent Fund to be

promoted by CBROA for the benefit of our

Members and he solicited the opinions, ob-

servations, views of the members as to how

to make the Scheme effective and sustaina-

ble. Many Members gave their suggestions as

to the amount of annual contribution to the

Fund and build a robust corpus so that the

Fund becomes viable to meet the aspira-

tions of the members.

Sri.Ramakrishna, former DGM presided over

the Meeting and summarized the day’s pro-

ceedings. He lauded the efforts of CBROA in

mitigating the grievances of the retirees and

also the proposed Benevolent Fund to be pro-

moted by CBROA.

Sri.R N Thakur proposed vote of thanks.

MEMBERS’ MEETING AT JABALPUR

ON 08.08.2019

A Meeting of our Members was held at Jab-

alpur on 8th August,2019 at the residence of

Sri.Ravindra K Gupta. More than 25 mem-

bers attended the Meeting.

Sri.Ravindra K Gupta informed the members

regarding the latest developments on the

issues of pensioners in the Banking Industry.

He deliberated on the campaign launched

by our apex body AIBPARC / CBPRO in get-

ting the issues of pensioners resolved. He

clarified various points/doubts raised by

members, Sri.Arun Gupta, Ms.Geetha

Agarwal, Ms.Bharathi Srivastava.

Sri.Subrato Roy, Regional Secretary, pre-

sented a brief account of the proceedings of

the Central Committee Meeting held at Hy-

derbad on 13th & 14th July,2019.

Sri.Sathish Reddy and Sri.Jacob George, our

members have organized a Tree planting

programme in the local and surrounding ar-

eas. Sri.Ravindra Gupta explained about

the importance of water harvesting and the

members were shown the Water Harvesting

System installed at his residence and ex-

plained how it works.

Sri.Subrato Roy, narrated how our member

Sri.S B Singh who was away in Angul, Odisha

along with his wife who fell seriously ill sud-

denly and how our Odisha Unit lead by

Sri.Gopal Patnayak helped the family by

making arrangements to shift the family to

Bhubaneshwar and get her admitted to AMRI

Hospital for treatment. The Meeting pro-

fusely thanked Sri.Gopal Patnayak for this

fine gesture. This explaines the importance

of being a member of CBROA.

Sri.Deepak Choubey proposed vote of

thanks.

34


MEETINGS OF OUR MEMBERS AT

MANGALURU

Our Mangalore Unit lead by Sri.B V Pai, Vice President, Sri.Laxmikanth Nayak, DGS, Sri.B R Kamath, Chairman Local Committee have been holding meetings of our Members eve-ry week without any break. The Unit held Meetings on 07.08.2019, 14.08.2019, 21.08.2019 and 28.08.2019 and discussed about the following Schemes mooted by CBROA and CBOA.

Death Relief Scheme mooted by CBROA.

Death Relief Scheme mooted by CBOA.

Members have sought time to study the

scheme and offer their suggestions, obser-

vations as to how to make the Schemes via-

ble and sustainable.

The Members have also resolved to help the

people affected by the recent floods which

have lead to loss of lives, property, standing

crops, destruction of roads etc. More than

100 members from Mangaluru Region have

donated liberally for distribution of rice

rice among the people affected by floods.

The members have pledged to supply about

50 quintals of rice. Kudos to all the CBROA

fraternity at Mangalore, for this wonderful

gesture. Our Mangaluru Unit has yet again

proved that the hands that help are holier

than the lips that pray.

In the Meeting held on 14.08.2019 it was de-

cided to honour the wards of CBROA who

have excelled in their academic career on

28.08.2019

JOINT MEETING OF OUR MEMBERS

AT RAJAHMUNDRY AND KAKINADA

A Joint Meeting of our Members at Ra-

jahmundry and Kakinada was organized at

Kakinada on 14.08.2019. More than 30 mem-

bers attended the Meeting which was held

at the newly constructed first floor of the

House of our member Sri.I N Murthy. The

Meeting was graced by Sri.P V L N Sharma,

Vice President, Sri.P Phaneendra, C C Mem-

ber.

Sri.V Satheeshkumar, RS, Kakinada ex-

plained the various activities conducted at

Kakinada. Dr.Karunakar Saka explained

about the activities undertaken by Ra-

jahmundry Unit.Sri.P V L N Sharma, ex-

plained in detail about all issues of pen-

sioners in the Banking Industry and the ef-

forts made by our Apex Body AIBPARC/

CBPRO in mitigating the issues. The con-

sistent campaign launched by AIBPARC/

CBPRO is likely to yield some positive re-

sult very shortly, he declared. Sri.P Phan-

eendra, deliberated on CBROA Benevolent

Fund and solicited the opinion, views, ob-

servations on the Scheme and how to make

35


it sustainable and viable. He also explained

in brief about the industry level issues of

pensioners/retirees of Banking Industry.

MEMBERS’ MEETING AT VELLORE ON

16TH AUGUST,2019 AT 3.30 PM AT KU-

MARAN’S MILLANNIUM RESIDENCY,

VELLORE.

A Meeting of our Members was organized on

16.08.2019 at 3.30 pm at Kumaran’s Millan-

nium Residency, Vellore. The Meeting was

attended by more than 50 members. Sri.L M

Devakumar, Senior Member presided over

the Meeting.

Sri.B Y Kembhavi, Deputy Treasurer gave a

brief account of our Welfare Measures,

communication system etc. Sri.R Mohan,

Vice President, complimented the Vellore

Unit for undertaking various activities which

has caught the imagination of he retired Of-

ficers of our Bank and CBROA is strength-

ened through constructive activities. Sri.A N

Krishna Murthy, General Secretay, deliber-

ated on the various issues of pensioners and

retirees of Banking Industry and the efforts

made by our apex body AIBPARC in resolving

the issues. He gave a brief account of the

Writ Petition filed in the High Court of Kar-

nata seeking Updation of Pension. He solic-

ited liberal donations from the members to

fight the case effectively at various levels.

He also made a mention about the Benevo-

lent Fund mooted by CBROA and sought the

views, thoughts of the members to make

the scheme viable and sutainable.

Sri.L M V Devakumar, summarising the day’s

proceedings had a word of appreciation for

the efforts of CBROA in safeguarding the

interests of pensioners/retirees of our

Bank. He hoped that all our hopes and aspi-

rations will be realized soon. He condemned

the unruly behavior of Shivasena Member of

Parliament at Mumbai who stormed into the

cabin of our General Manager and attacked

him on some issues of transfer.

Sri.Bhoopalan, Regional Secretary, welcom-

ing the gathering, presented a brief account

of the various activities undertaken by

CBROA for the benefit of our Members.

Sri.Gnanasundaram proposed vote of

thanks. Our Senior and active member Mad-

am Sumathi rendered invocation song.

Mumbai Region collected Rs.3.15

lakhs for flood affected victims.

Mumbai region has collected Rs 3.15 lakhs

for Sangli-Kolhapur flood affected victims.

Myself, Mr Katke, Mr Shetty & Mr Gade are

leaving tonight for Kolhapur. We will be at

Sangli- Kolhapur for next 2 days. We intend

to give funds partly to reputed local NGO's

there & partly to directly some worst af-

fected victims identified by our Sangli/

Kolhapur branches.

36


MEMBERS’ MEETING AT PONDICHER-

RY ON 17TH AUGUST,2019 AT 3.30.PM

AT R O PONDICHERRY

A Meeting of our Members was held at Pon-

dicherry on 17th August,2019 at 3.30 pm at R

O Pondicherry. More than 25 members par-

ticipated in the Meeting. Sri.Bhaskaran, for-

mer Deputy General Manager and our Senior

Member presided over the Meeting. Sri.K

Kalyanasundaram, was felicitated on attain-

ing 75+ years of age.

Sri.B Y Kembhavi, Deputy Treasurer, ex-

plained the various activities of CBROA,

Welfare Measures floated by CBROA and our

communication system.Sri.R Mohan, Vice

President, stressed the need for strengthen-

ing CBROA by enrolling all the retired Offic-

ers as Members of our Association. Sri.A N

Krishna Murthy, General Secretary, deliber-

ated on all the issues of pensioners and the

campaign launched by our apex body AI-

BPARC in realizing our long pending de-

mands. He explained the developments with

regard to Payment of Gratuity and asked

the members to wait for further develop-

ments. He presented the present position of

the Writ Petition filed in the High Court of

Karnataka and solicited funds from the

members to fight the litigation. He present-

ed a brief architecture of the Benevolent

Fund to be launched by us and sought the

views, thoughts and observations of the

members to make it member friendly

scheme which will sustain with viability. He

also deliberated on the XI Bipartite Settle-

ment. He gave a brief account of the De-

fence Panels across the country to take care

of the charge sheeted officers after retire-

ment.

Sri.Bhaskaran, summarized the day’s pro-

ceedings and lauded the good work of

CBROA and gave a call to members to con-

tribute liberally for the Legal Fund mooted

by CBROA which is fighting an important is-

sues in the High Court of Karnataka.

Sri.R Vijayakumar, Regional Secretary, wel-

comed and Sri.Ganesh Subramaniam pro-

posed vote of thanks.

MEMBERS’ MEETING AT CHENNAI ON

18TH AUGUST,2019 AT 3.30 PM AT THE

AUDTIORIUM OF CIRCLE OFFICE,

CHENNAI.

Our Chennai Unit one of the largest units of

our Association had organized a Meeting of

our Members at the Auditorium of Cricle Of-

fice, Channai on 18th August,2019 at 3.30

pm. More than 150 members were present,

though there were inecessant rains right

from the morning.

Sri.S Thiruvadi, Former General Manager

and our Senior Member presided over the

Meeting. Sri.Prem Kumar, Deputy General

Manager, graced the occasion. Addressing

the members Sri.Prem Kumar recalled the

services rendered by the Senior colleagues

to put our Bank on a very strong pedestal.

While wishing CBROA and its Members all

the very best in their future endeavours, he

solicited their good wishes and blessings to

take the Circle to greater heights of glory.

One of the Popular and well known humorist

and Secretary of Hunour Club, Chennai,

Sri.Shekharan made the entire audience

37


laugh throughout the programme. Madam

Geetha, the Nightingale of Canara Bank, ac-

companied by Sri.Hari Raj entertained the

house with popular, old and melodious songs.

Both of them regaled the audience making

the day a wonderful occasion.

On the occasion our members who have com-

pleted 75+ years of age were felicitated.

Sri.P T Kuppuswamy, former General Man-

ager and CEO of Karur Vaisya Bank.

Sri.James Colton, Retired Manager

Sri.Subramanyam, Officer.

Sri.A N Krishna Murthy, General Secretary,

deliberated on the issues of pensioners such

as updation of Pension, improvement in

family pension, IBA Health Insurance

Scheme, Grauity issues, removal of ceiling

on the amount of Leave Encashment etc. He

explained in brief about the Writ Petition

filed in the High Court of Karnataka seeking

Pension Updation and requested the mem-

bers to contribute to the Legal Fund liberal-

ly as fighting the litigation involves huge ex-

penditure. He also gave a brief outline of

the proposed Benevolent Fund to be mooted

by CBROA and sought the opinions, views,

suggestions to make the Fund viable and

sustainable. He deliberated on the 11th Bi-

partite wage Revision Talks under progress.

He clarified the various points raised by

members at the end of the session.

Summarising the day’s proceedings, Sri.S

Thiruvadi appreciated the efforts of CBROA in

bringing happiness and cheers to the commu-

nity of retirees and he suggested our Chennai

Office bearers to organize such Meetings of-

ten.

Sri.R Asokan, Asst.General Secretary, com-

pered the programme in his own unique and

inimitable style. Smt.Sumathi Iyer, Regional

Secrrtary, welcomed the gathering and pro-

posed vote of thanks.

MEETING OF OUR MEMBERS AT MA-

DURAI ON 20.08.2019 AT 5.15 PM AT

RSTC MADURAI.

A Members’ Meeting was held at RSTC Ma-

durai on 20th August,2019 at 5.15. pm. More

than 65 members, including three lady

members, participated in the Meeting. The

members had gathered despite thunder-

storms looming ij the horizon. Sri. M N Ma-

noharan, Assistant General Secretary, ex-

plained in detail about the deliberations at

the recently held C C Meeting at Hydera-

bad, various pending issues of pensioners

such as pension updation, improvement in

family pension, IBA Health Insurance Premi-

um, Gratuity payment in the background of

recent orders issued by the DLCs, Judge-

ment passed by the Madhya Pradesh High

Court etc, inclusion of Special Pay for the

purpose of superannuation benefits, the

present position of the Writ Petition in Kar-

nataka High Court, Contribution to legal

fund, proposed Benevolent Fund mooted by

CBROA ETC. He solicited the views, opin-

ions, suggestions of members as to how to

38


make the scheme viable, sustainable.

On the occasion a lecture on “Wills and other

related matters” by Sri.Y Jacob, Ex-Canarite

and Senior Advocate, Madurai Bench of High

Court of Adjudicature, Chennai was orga-

nized. He explained the importance of mak-

ing Will with live examples and court cases.

There was a lively interaction session where

the guest answered the various queries

raised by our Members. Sri.S V Krishna

Murthy, former DGM appreciated and hon-

oured the guest speaker.

Two new members were enrolled as Life

Members and one member converted his

membership to Life. Sri.G Rajendran, for-

mer DGM, welcomed our new Member Sri.K

Aravind Kanna Retd. SM.

The House resolved to have Regional Com-

mittee Members for focused membership

drive and assisting AGS/RS in organizing unit

Meetings at Theni, Dindigul, Virudhunagar,

Shivaganga etc. The following are the mem-

bers of the Regional Committee.

Sri.Arjun Muthaiah : Dindigul. Sri.Gnana

Gurudas : Theni Sri.P Mahendran : Virudhna-

gar Sri.Thondiraj : Shivaganga/Ramnad. Sri.M

S Chandrashekharan, Sri.K T Sambandham

and Sri.S Paulraj : Madurai.

Sri.M Pannerselvam, RS, welcomed the gath-

ering and Sri.M Chandrashekharan proposed

vote of thanks.Sri. M S Chellapandian ren-

dered invocation song.

Sri.M N Manoharan, AGS sponsored the din-

ner served to the members after the meet-

ing.

The proceedings of the Meeting were wide-

ly covered in the News Papers, thanks to

Sri.Deendayalan, our Member for ensuring

media coverage.

GENERAL MEETING OF OUR

MEMBERS ON SUNDAY - 25th AU-

GUST AT TRISSUR.

Dear Friends,

Our Trissur Unit organised a General Meeting

of our Members on 25th Aug. (Sunday) at 4

pm at our RO Trissur. District President, Mr.

A P Padmanabhan presided. Mr. A N Krishna

Murthy, Mr. Ramadasan Nair AGS & Mr. Sasi-

dharan Pillai CC Member were on the Dais.

Trissur District Secretary Mr. T Ravi wel-

comed the gathering.

Senior Members, Mr. Ramaranjan & Mr. V I

Verghese were felicitated on attaining 75 +

years of age. Mr. Ramadasan Nair briefed

about the decisions taken at CC Meeting held

in July at Hyderabad viz. Formation of De-

fence Panels at various Centres, Formation

of State Committees, Possibility of creating

Benevolent Fund/Death Relief Fund & Writ

Petition filed by CBROA at High Court of Kar-

nataka, Bengaluru demanding Updation of

Pension & called upon the Members to con-

tribute liberally to CBROA Legal Fund to ena-

ble us to fight case/s effectively.

Mr. Sasidharan Pillai, while briefing the for-

mation of CBROA, informed that against 1600

nos. of Retired Officers in Kerala, only 600

are our Members.

He stressed the need for strengthening of

CBROA in the State of Kerala & requested

the Members to extend their cooperation in

this regard. Mr. A P Padmanabhan in his

presidential address, informed the House

about our burning issues - Updation of Pen-

sion, Family Pension, Anomaly of 2nd option

of Pension introduced in 2010, Special Allow-

ance of 10th BPS, IBA Health Insurance &

lamented that there is no seriousness about

the gravity of our issues. He also concurred

that there is a need to strengthen CBROA in

the State of Kerala.

39


SENIOR CITIZEN PENSIONERS GET 2

MONTHS TO SUBMIT LIFE CERTIFI-

CATE FOR CONTINUANCE OF PEN-

SION.

Super Senior Citizens will now get a two

month window to submit Life Certificates for

continuance of pension instead of the current

one month span in November every year. The

Government has decided that these pension-

ers can submit the Life Certificate from Octo-

ber 1 every year, starting from this year, in-

stead of November 1 previously. This gives

them greater flexibility to submit the Certifi-

cate comfortably. Currently, the certificate

can be submitted only between November 1

and November 30. This has been severely in-

conveniencing especially those pensioners

who are travelling or are unwell during this

windowto submit the Certificate.

For other pensioners i.e those below the age

of 80 years, the rules for submission of Life

Certificate continue to remain the same.

They will be required to submit the Certifi-

cate in the month of November.

RBI PENALISES 11 BANKS FOR VIOLA-

TIONS.

The Resrrve Bank of India has imposed mone-

tary penalty on 11 Banks for non-compliance

with certain provisions on fraud classification

and reporting norms. The fines ranging from

Rs.50 lakhto Rs.1.50 crore, were imposed by

the Central Bank on Bank of Baroda, CVorpo-

ration Bank, Federal Bank, Indian Overseas

Bank, Jammu and Kashmir Bank, Oriental

Bank of Commerce, Punjab National Bank,

Punjab & Sindh Bank, State Bank of India,

UCO Bank and United Bank of India.

PUBLIC SECTOR BANKS TO ADOPT

UNIFORM WORKING HOURS PAN

INDIA

Public Banks across the country will soon

have standard operating hours. This is part

of the Government’s reform agenda for PSBs

under Enhanced Access and Service Excel-

lence Programme (EASE)2.0. Consolidation

of PSBs is also part of this programme. A

bankers’ panel has recommended that every

region adopt one of three six hour time slots

9 am to 3 pm, 10 am to 4 pm or 11 am to 5

pm. Banks have already agreed to keep

branches operational for customers for uni-

form working hours in one location. The

idea is that in one locality, the branches of

all Banks have to function with uniform tim-

ing. IBA has instructed the Bank Manage-

ments to have discussion at the State Level

Bankers’ Committee and decide on timings

DEVELOPMENTS IN BANKING / ECONOMY

Mr. A N Krishna Murthy, GS, explained the ef-

forts of CBROA & also of our Apex Organisa-

tions - AIBPARC & CBPRO in pursuing our is-

sues & that the improvement in Family Pen-

sion is likely to be achieved shortly.. On

Wage Revision issues, he informed that IBA

has invited UFBU for talks on 29th August,

wherein, Retirees' issues also are likely to be

discussed. He presented the position of Gra-

tuity Issues, in the light of various Court deci-

sions & that CBROA is thinking of approaching

Labour Authorities/Court in this regard & also

with regard to non revision of ceiling of Rs. 3

lakh since 2002 on Leave Encashment for pay-

ment of IT. While briefing the house about

the possibility of starting a Death Relief/

Benevolent Fund by CBROA, he invited the

suggestions from the Members. He informed

that the granting of Associate Membership to

the spouses of our Deceased Members is en-

gaging the attention of CBROA. He requested

the House & the leaders of Kerala to help

strengthen CBROA in the State of Kerala.

40


for different locations. Even in one place,

the branch timings may be different for mar-

ket, residential and business areas.

RESOLVE STRESSED ASSETS ON TIME

IN YOUR INTEREST, RBI TELLS

BANKS.

RBI Deputy Governor Sri.N Vishwanathan, has

urged Banks for timely resolution of stressed

assets in their own interest.

Sri,Vishwanatahn, who spoke at a Banking

Seminar organized by FICCI and IBA, said

that Banks should resolve assets under the

new frame work that was announced by RBI

in June to extract the best value, and em-

phasized the need for dealing only in genu-

ine cases. He further has said, “Timely Reso-

lution is very important. Banks should ensure

that the resolutions are done in time, not

just for the regulatory requirement, but also

because it will result in better valuation go-

ing forward.” He added that, “We have giv-

en a lot of freedom to Banks to determine

various contours. We are making less intru-

sive regulations and hope that Banks will use

this to deal with genuine stress in their Bal-

ance sheets to address the problem.”

COMPLIANCE CULTURE IN BANKS NOT

SATISFACTORY, SAYS RBI DEPUTY

GOVERNOR SRI M K JAIN.

The Reserve Bank of India has come down

heavily on Commercial Banks after slapping a

series of penalties for not complying with sev-

eral regulatory guidelines. Speaking at FICCI-

IBA Banking Seminar, Sri.M K Jain, Deputy

Governor, RBI Deputy Governor in charge of

Banking Supervision, said that the compliance

culture in the Banking System was far from

satisfactory. He further said, “It is good for

Banks to demonstrate good compliance cul-

ture. We appreciate the procedures to incor-

porate compliance culture which can benefit

the Banks in many ways.” He said following

the global financial crisis, the importance of

compliance had increased significantly, par-

ticularly in the areas of know-your-customer,

anti-money laundering and appropriateness of

Banking products, among others. Between

January and July this year, RBI had imposed

penalties worth about Rs.122.9 crore on 70

occasions on Banks for non-compliance. “A

Bank or a Financial Institution can suffer if it

does not adhere to laws, rules, regulations

and related self-regulatory standards or even

codes of conducts applicable to its banking

activities,” he said. He also said, some of the

Banking Frauds – for which banks had suffered

big losses- could have avoided if they had had

good compliance culture.”

BANKS MAY REFUSE TO SANCTION

GOLD LOANS TO NON-

AGRICULTURISTS

Banks across the country are set to stop dis-

bursing subsidized agricultural loans by taking

gold jewellery as the collateral. The Union

Government has already issued notices to the

Banks, asking them not to give agricultural

loans against pledge of gold jewellery from

October 1,2019 and instead provide it only to

those holding Kisan Credit Cards (KCC). With

the Centre’s decision, public may no longer

have recourse to agricultural loansof upto

Rs.3 lakh by pledging gold. Such loans were

charged 4% interest and it was widelt sought

by those not pursuing farming or allied activi-

ties. The banks are apprehensive that more

people may head to the private finance es-

tablishments for the readily available gold

loan even if the interest rates are higher.

THE FINANCE MINISTRY TO ADDRESS

THE CONTINUING DECLINE IN THE

SHARE OF PSBs IN INDIAN BANKING.

To address the continuing decline in the share

of PSBs in Indian Banking, the Finance Minis-

try plans to kick-start an elaborate exercise

whereby it will closely monitor their achieve-

ment on 16 Key Performance Indicators (KPIs)

at the branch, region, State and national

Level. The Banks will be benchmarked against

the 18 PSBs’ average. If found lagging, specif-

ic action will be taken after consultations at

41


various levels to crank up their performance.

The 16 KPIs that the Ministry will be cracking,

include Credit for Infrastructure, Farm Sec-

tor, Blue Economy, Housing, MSMEs, Stand up

India Scheme, Education, Exports, Green

Economy, Cleanliness Activities, Financial In-

clusion and Women’s Empowerment and oth-

ers such as Direct Benefit Transfer, Digital

Economy, ATM usage and performance, ease

of living and Corporate Social Responsibility.

TO EXPAND ATM NETWORK, GOVERN-

MENT MUST OFFER INCENTIVES,

SAYS THE CONFEDERATION OF ATM

INDUSTRY (CATMI)

With just 5 ATMs per one lakh population in

rural areas, beneficiaries of Direct Benefit

(DBT) Schemes will nee more touch points to

withdraw cash. To encourage Banks and

While Label ATM Operators (WLAOs) to set up

more ATMs in rural areas, where penetration

is currently low, the Government should con-

sider giving incentives such as extra inter-

change fee or subsidy in electricity and other

support structure required to set up ATMs,

according to Confederation of ATM Industry

(CATMi). According to RBI data, as of March

end 2019, only 19% of the total ATM Network

of 2,21,703 in the country was deployed in

rural areas.

This is woefully inadequate, given the Gov-

ernment is vigorously pushing Direct Benefit

Transfer (DBT) related to Welfare Schemes

including Rural Employment , LPG Subsidy,

Social Assistance Programme, Scholarship

Schemes, and Fertilisers and the beneficiar-

ies will require touch points closer home to

withdraw money.In FY 2019, Rs.65,561 crore

was transferred under DBT to the beneficiar-

ies. Today, especially in the rural areas,

there are only 5 ATMs per one lakh popula-

tion, whereas in Mteros, there are 50 ATMs

per one lakh population.

The cost of ATM transactions is high due to

the high costs of compliance and operations.

As a result, Scheduled Commercial Banks

have been reducing their investments in ATMs

and reducing their count as well.

PRIME MINISTER KISAN MAAN

DHAN YOJANA PENSION

SCHEME FOR SMALL AND MAR-

GINAL FARMERS. GOVERNMENT

AIMS TO ENROL 2 CRORE FARM-

ERS.

The PMKMY Scheme entitles small and mar-

ginal farmers to recive monthly pension of

Rs.3,000/- per month. The CSC e-Governance

Services India, which manages over 3.5 lakh

common service centers across the country,

has set a target of enrolling 2 crore small and

marginal farmers under PMKMY by Au-

gust15,2019.

The PM-KMY was launched by the Ministry of

Agriculture in the national capital on 9th Au-

gust, 2019which entitles eligible farmers for

monthly pension of Rs.3,000/- per month.

The PM-KMY is a voluntary and contribution-

based Pension Scheme for farmers in the

age group of 18 to 40 years. Farmers hold-

ing up to 2 hectares farm land will be eligi-

ble for the Scheme. Farmers will have to

make a monthly contribution of Rs.55/- to

Rs.200/- depending on the age at entry in

the Pension Fund till they reach the retire-

ment age of 60 years. The Central Govern-

ment will make equal contribution of the

same amount in the pension fund. Farmer’s

spouse is also eligible to get a separate pen-

sion of Rs.3,000/- upon making separate

contribution to the fund. In case of death of

the farmer before the retirement date the

spouse may continue with the scheme. If

the spouse does not wish to contribute, the

total contribution made by the farmer along

with interest will be paid to the spouse.

42


AADHAAR-ENABLED PAYMENTS

BOOM ; OVER 22 CRORE TRANSAC-

TIONS DONE SO FAR. 6,6,CRORE IN

JULY,2019 ALONE.

The Aadhaar-enabled Payment System

(AePS) has gained significant traction after

months of remaining dormant and as of Ju-

ly,2019, over 22 crore transactions have

been done using the AePS Model, the Na-

tional Payments Corporation of India (NPCI)

has said. The AePS which is a bank-led mod-

el, allows basic banking transactions at the

point of sale terminals (POS) using Aadhaar

Card as a mode of authentication. Any bank

customer can use the services of AePS sys-

tem with the help of a bank correspondent.

Top five services provided by AePS Model

are cash withdrawal, cash deposit, Aadhaar

to Aadhaar funds transfer, Balance enquiry,

gateway authentication service. In July,

2019, the cumulative transaction count of

AePS stood at over 22 crore with a transac-

tion value of Rs.9,685 crore. The same was

at 19 crore as of June with a transaction

value of Rs.8,867 crore, NPCI has said. AePS

also aims at financial inclusion of rural India

by providing services such as authentication

of customer, availability of services, acces-

sibility through AePS Channel and afforda-

bility as it is free of cost to the customers.

Disbursements of Government entitlements

like NREGA, Social Security Pension, Handi-

capped old age pension, etc are also facili-

tated by the system.

USAGE OF ATMS-FREE ATM TRANSAC-

TIONS-RBI OFFERS CLARIFICATIONS

ON FAILED ATM TRANSACTIONS.

RBI has clarified that transaction which fail

on account of technical reasons like hard-

ware, software, communication issues, non-

availability of currency notes in the ATM; and

other declinesascribable directly/wholly to

the Bank/service provider, invalid PIN/

validations etc, shall not be counted as valid

ATM Transactions for the customer. Conse-

quently no charges therefor shall be levied.

Non-cash withdrawal transactions (such as

Balance enquiry, cheque book request, pay-

ment of taxes, funds transfer etc.) which

constitute “on-us” transactions (i.e when a

card is used at an ATM of the Bank which has

issued the card) shall also be not part of the

number of free ATM transactions.

CANARA BANK AND SYNDICATE

BANK TO BE MERGED

Canara Bank and Syndicate Bank to be

merged, which will be the 4th largest PSB,

with a business of Rs.15.20 lakhs crores.

Punjab National Bank, Oriental Bank of Com-

merce and United Bank to merge to form the

second largest PSB with a business of

Rs.17.94 lakh crores. Union Bank of India,

Andhra Bank and Corporation Bank to merge

to become the 5th largest PSB with business

of Rs.14.59 lakh crores. Indian Bank and Al-

lahabad Bank will merge to form 7th largest

PSB with a business of Rs.8.08 lakh crores.

In 2017, where there were 27 PSBs, there are

now only 12 PSBs operating to target the $5

Trillion economy.

PSB Boards will be given the flexibility to in-

troduce Chief General Manager, who will be

provided market level compensation. The

number of Eds will be increased to 4.

Now Saasumaa … don’t shout at me as you do always … my Bank has taken over your Bank

43


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