Charter of Demand-2

7/30/2019 Charter of Demand-2

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ALL INDIA UNION BANK OFFICERSTAFF ASSOCIATION

(Affiliated to AIBOA)Phone: 9381036405

Email: [email protected]: [email protected]: Don Flats, I Floor, No.19, SRP Colony 7th Street, Peravallur,

Chennai 600082Chairman: Com.H.K.Agarwal President: Com.P.G.Lokhande

30.10.2012

Com bined Charter of Demands

Submitted b y

ALL INDIA BANK OFFICERS CONFEDERATION [AIBOC]

ALL INDIA BANK OFFICERS ASSOCIATION [AIBOA]

INDIAN NATIONAL BANK OFFICERS CONGRESS [INBOC]

NATIONAL ORGANISATION OF BANK OFFICERS [NOBO]

INTRODUCTION:

The Charter o f Demand s rep resents the hope s a nd asp irations of en tire officers

fraternity working in the Banking Industry all over the country, owing allegiance to

the All India Bank Officers Confederation(AIBOC), All India Bank Officers

Assoc ia tion (AIBOA), Ind ian Nationa l Bank Officers Congress (INBOC) a nd Nationa l

Organisation of Bank Officers(NOBO) and other Officers organizations in the

ind ustry. The Cha rter of Demand s is also a sta tem ent of the dem ands of the Office rs

fraternity for consideration of the Indian Banks Association, an accredited

rep resenta tive forum of the Ma nage ments of the Membe r Banks and as also ac ting

as the spokesperson on beha lf o f the Government o f Ind ia , in the ma tte r o f

settlement of compensation system in the Banking Industry on behalf of their

mem ber ba nks in the c ountry.

PREAMBLE:


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The Ind ian Banking system is highly respec ted and apprec iate d a ll ove r the world , in

pa rtic ula r in the b ac kground of rec ent e co nomic ca tastrop he na me ly, the c ollap se

of the US ec onom y known for its rob ustness and size in glob al sce nario which , has

impacted the entire world upsetting most of the Western countries in particular

those who a re p a rtners of US inc lud ing the c lose a lly UK.

The Ind ian Ba nking system not only absorbed these d evelop me nts b ut a lso

rema ined strong as eve r in fa cing the g loba l uphea val. The Europ ean c ountries

suffered a m a jor setb ack and the Euro currency wa s und er pressure. The Ind ian

Banking system not only grew from strength to strength but stood as rock in the

middle of this financial tsunami and co ntinued its onward ma rch in rende ring the

ec onom ic justice to m illions and m illions o f the peop le living below the poverty line.

The grea test tribute to the Ind ian Banking system is its resilience a nd the cou ra ge to

take on the Basel Norms and to me et a ll its req uirem ents to show the world that the

Ind ian grow th story is not a myth and it ha s c om e to stay.

The e ntire c red it to this super performance m ust go to the Bank Officers fra ternity in

the co untry. They not only defended the public sec tor Banks but also ac ted as a

stumbling block in the ill advised initiative of the Government influenced by the

propo nents of the globalization to hand over the industry to the private sec tor as

we ll as the multina tiona ls. The Gov ernment has rev isited the issue of d isinvestmentand has been ac knowledging the pe rforma nce of the ba nks and is now serious to

reta in the c ontrolling stake in the Public Sec tor Banks.

The effic ienc y of the banks ha s rea ched the interna tiona l standa rds. There is neither

comp la int no r an a ttempt to denig ra te the Indian Banks on the issue o f the

am bience in c om pa rison w ith the foreign an d new g ene ration p riva te sec tor banks

due to the effec tive m ea sures a do pte d b y the Ma na gem ents of the b anks. The

banks are tech-savvy and are in a position to acquire and to adapt any latest

version of the tec hnology to m atc h their c ounte rparts a ll ove r the world.

How d id th is transforma tion ha ppen? This is m ainly due to the fac t tha t the entire

officers fra ternity, co mm itted to the suc cess of the Ind ian Banking ind ustry, has

given b lood and swea t o f their youth in ensuring the succ ess of the ba nks all over


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the c ountry. They hav e a lso unmind ful of the ir pe rsonal inconvenienc e a nd

d isco m fort to the m embe rs of the ir fam ily, have c arried the b anking fac ilities to no ok

and corner of the country en suring Banks to b e highly com pe titive with that o f their

counter pa rts both inside a s we ll as outside the c ountry.

Does the c om pe nsa tion system ma tch the se d eve lopments? Wha t is the q uality of

life of Officers? Whether all the demands and expectations of the Officers have

bee n fulfilled b y the IBA and the G overnme nt in the process. We a re c onc erned to

ob serve tha t there is a gulf betwe en the hop es and aspirations of o fficers and the

IBA. We all have to strive to bridg e this ga p in the ensuing wa ge revision/ service

condition.

Befo re we p roc ee d to present our Charter of Dema nds for the 7th Joint Note

exercise let us take a close look a t the job ma rket, the c om pensa tion environme nt

preva iling with the p eers o f the Pub lic Sec tor, the owner himself i.e. the Go ve rnment

and ab ove all the new sec tors of the ec onomy, to have a prope r assessment and

justif ica tio n for the Charte r of Demand s.

The disc ernible ga p of exac tly a dec ade between Nationaliza tion

and actual date of implementation of the Pillai Committee

Recommendations ie between 19 07 1969 and 01 07 1979 had causedexac erbating effec t of losing a t least one se ttlem ent of Standa rd ized

pay sca les and a llowances to Bank Office rs in PSBs( if no t two

settlements)

COMPARABLES INFLUENCE THEREOF:

The immedia te comparab le position is tha t o f the C iv il servants who had the

op portunity of g etting their com pe nsa tion revised during the year 2006. Som e of the

ma jor initia tive s of the 6th Pay Com m ission a re:-

ADEQUACY OF THE COMPENSATION FOR OFFICERS CADRE:


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For the first time the Commission had recognized the importance of the

Office rs ca dre amo ngst the civil servants and has ensured that, they are able to

get a competitive compensation in comparison with the executives in the Private

Sec tor. The m a jor theme tha t wa s introd uc ed in the rec omme nda tions to p rovide a

be tter co mp ensa tion w a s the fea r that the G overnment autho rities may not get

go od , cap ab le and co mp etitive staff, as the c om pe nsation was not c omm ensurate

with tha t o f the Priva te Sec tor.

The 6th Pay Comm ission has go ne into these aspe cts in an exhaustive ma nner and

has ap art from the salary revision, introd uced several new be nefits to take ca re of

the extra m ilea ge fo r the bureauc ra ts. Hon b le Justice Shri Krishna ha s a lso in a

substantial manner explained the right sense of relativity between the clerical staff

and officers keeping in tune with the global scenario. Rationalization of Internal

Parity amo ngst the c ad res and grad e ne ed s to b e e xtende d to the Ba nk Office rs

also.

Two m a jor be nefits tha t he ha s passed o n to the Civil servants we re the introduc tion

of Grade Pay, to ensure better emoluments and also providing the running scale

c om me nc ing from the lo we st to the hig he st level so tha t no o ne wo uld b e

com pelled to suffer stag na tion a s reg ards the c om pensation is co nc erned. In the 6th

Pay com mission Govt. Office rs sala ry had inc rea sed to substa ntia l level compa redto Bank officers.

SCIENTIFIC INCREMENTAL PATTERN:

The inc reme nts have be en relate d to the sca les in terms of pe rce ntag e. It ha s g iven

a sc ien tific formula where the inc rem ents a re direc tly linked to the automatic basic

pay.

MOVEMENT FROM SCALE TO SCALE:

The Banking Industry expe rimented this p hilosop hy long time b ack. Howeve r, a

more aggressive pattern is now seen in the 6th Pay Commission where movement

from one sca le to another is automa tic a nd it d oes not stop a t any sca le. It would

ensure aga inst stag nation a t a ny sc ale / stag e.


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SUPERANNUATION BENEFITS:

O ne o f the sa luta ry im p a cts o f the 6th Pay Comm ission is the co mp rehensive

improvements in the case of Pensioners and Family Pensioners in the Centra l

Go vernme nt. The imp roveme nts ma de in the Pension schem e in the a rea s like

updation and upgradation of the Pension, the rationalization of Dearness

Allowa nce, Family Pension etc ., nee ds to be implem ented in the ba nking industry a s

our pension scheme amply speaks of being in the lines of central govt. pension

scheme

PUBLIC SECTOR WORKFORCE

The yet a nother com parab le situation a s fa r a s the Banking Ind ustry is tha t of the

Public Sec to r units ow ned by the Go vernm ent. The sala ry rev ision takes place inrespec t o f the Pub lic Sec to r Un its a long w ith the c iv il se rvants. The 6th Pay

Comm ission scales with c ertain mo d ifica tions in a wa y m ore bene fic ial to the Public

Sec tor officers have been imp lem ented without a ny hesitation. Whenever a

refe renc e is ma de to the se d evelop me nts, the a uthorities co ncerned will take lame

excuse of the salary being revised to them on the basis of the Pay Commission

which is onc e in 10 years. This cannot be justified to c ause hug e d isparity b etwe en

Bank Officers and Group A Officers. Such erosion in the value o f em olume nts

d efies log ic of p arity a t the tim e of im plementa tion of Pilla i c omm ittee

Rec omm end ations. The co nce pt of Merge r of DA when it exce ed s 50% with Basic

Pay ensures protec tion of superannua tion be nefits which is missing in case of Bank

Employees.

PRIVATE SECTOR NEW SECTORS OF THE ECONOMY:

NEW GENERATION PRIVATE SECTOR AND FOREIGN BANKS:

There is a sea of d ifferenc e in the em olume nts be twee n the new ge neration Priva te

Sec tor Ba nks / Foreign Ba nks and the Banking Ind ustry co ve red b y the IBA. The se

Banks adopt the compensation system that is prevailing in the new sectors of the

ec onom y on the plea of a ttra c ting the be st talent in the financ ial sec tor. The sam e

is true in the ca se of Public Sec tor and old ge neration ba nks as well. The fear ha s


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come down drastically in the recent past in view of the fact that there is vast

workforce av a ila ble in the ma rket. The com petitive environm ent is such tha t the

perform ance of the New Generation Private Sec tor Banks is always quoted as a

mo del for othe rs including the Old g ene ra tion Priva te a nd Pub lic Sec tor Banks,

whenever the issue o f compensation in comparison w ith them is ra ised. The

efficiency parameters are similar and hence the factors of compensation system

prevailing in the New Generat ion Private Sector and Foreign Banks should be

extend ed to all Bank Employee s a s well.

Som e o f the benefits that they e njoy over the b anks a re: (a ) the annual assured

bonus; (b ) the employees stock option p lan (c ) the liberal reimbursement of

expenditure incurred on recreation, lunch, travel, (d )meeting the tax obligations

etc ., with attrac tive c a reer prospec ts.

7TH JOINT NOTE EXERCISE

The 6th Joint Note is to e xpire o n 31.10.2012. The workforce in the banking industry is

therefore eligible for a fair salary revision from 01.11.2012.

EXPECTATION OF BANK OFFICERS FRATERNITY & PRECIOUS ASSETS FOR THE BANKS:

a . Eac h and eve ry Bank Office r in the co untry takes pride in his co ntribu tion tothe success o f the banking industry. He / she is an in tegra l part o f the

financ ia l sec tor ma chinery, which undertakes the responsib ility of a me liorating

the living c on ditions of m illions and m illions of the pop ulation in the c ountry.

b . This contrib ution, which he / she ha ve b ee n making, should reflec t in his

com pensa tion system . This c om pe nsa tion system should b e a com prehensive

one, co mp arable with the pe ers in the eco nom y of the c ountry and a bo ve a ll

one should have p rid e o f his p rofession throug h the com pe nsation p ackage

he / she ha s.

c . Compe nsa tion system should also take ca re of the trem endo us sac rifice tha t

the Officers fraternity has been making to make the banking industry strong

and e ffic ien t even a t the cost o f h is / her own comforts, the family life ,


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unlimited working hours e tc ., so tha t he /she would derive tremendous

sa tisfac tion fo r having served the industry be yond the c all of his / her du ty.

d . The Com pe nsation should also e nsure a ga inst the erosion of the rea l wages

due to inflat ion and ade quately take care of his / her social obl iga t ion and

cultural requirements, the need for maintenance of standard of life that themem bers of his / he r family de serve throug h his / her services to the industry.

e. The c om pensa tion system should b e so a ttrac tive tha t one should asp ire to go

higher in the ladder of the career and continue his / her commitment and

conviction to g ive the best to the institutio n.

f. Com pensation p ac kag e should be a deq uate to a ttrac t the b est of the

ta lents from the market to join the Bank serv ices.

g . There should be a reg ular system of a utom atic up grad tion o f sca les up to

Sca le IV, having regard to the steep leve ls o f stagnation and resultan t

de mo tiva tion am ong st the o fficers.

For the p urpo se of foc used neg otiations, the c om pe nsa tion pa ckage is d ivided into

d ifferent pa rts. The imm ed ia te a tten tion should be to revise all the m one tary area s in

one p art. The othe rs are further divided into p ac kag e of Perquisites and othe r

allowances, inc luding the Welfare areas. The third part shall be consisting of

superannua tion benefits. There is a n exc lusive part d ea ling with the issue s

connected with the lady Officers and another part on disciplinary matters in the

banking industry.

The o ther gene ral issues have b ee n group ed into two sep ara te c ha pters.

The first one w ill dea l w ith the issues such as working hours, 5 days a week,

com pensation for extra wo rking hours, holidays and we ekly off d ays etc .,

The second part aims at bringing the Officers service conditions in the banking

ind ustry o n pa r with the Public Sec tor serva nts in v iew of highe r level a ccounta bility

and mo bility to ma ke a strong ca se for a fair and co mp rehensive revision in favour

of Bank Office rs, a genuine and just a sp ira tion .


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The Cha rter of d em and s a nd settlem ents sha ll b e ap plica ble to a ll Public Sec tor

Banks, Priva te Sec tor, RRB Sec tor, and Co-op erative sec tor on a n equa l foo ting .

HENCE:

The Cha rter sha ll be d ivided into :

Part I: Sala ry Revision and Allowa nc es

Part II: Perquisites, a llowa nces, we lfare fac ilities viz., lea ve rules, the enc ashment,

the LFC/ LTC, Medical fac ilities etc .,

Part III: The issues concerning Lady Office rs.

Part IV: Superannua tion Pension, Provident Fund, Gratuity Etc ., inc luding a ll thebenefits that are to be ex tended to retirees in the Bank ing Industry

Part V: Non monetary issues, compa rable posit ion in the Government and i ts

exte nsion etc ., issues suc h as the working hours, 5 days we ek e tc .,

Part VI: General Bilateral Relationship

PART I

SALARY AND ALLOWANCES: BASIC PAY:

Date of effect 01.11.2012

The last co up le of revisions were a n exercise o f merg ing of DA p ayab le up to a

certain level of CPI with Basic Pay and thereafter providing certain cushion (load)

for the c onstruc tion of the sc a les with ap p rop ria te Increm ent patte rn.

We need to take a fresh look at the wa y the sca les have to b e co nstructed with a

view to have higher start to ensure that the promotion provides reasonable

com pensation to officers in com pa rison with awa rd staff sca le. The higher start will

provide p rop er differentials on p rom otion and mo tiva tion for promotion.


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The span o f the scale s should b e red esigned to ensure tha t the re is continuity in the

d rawing o f the increme nt without b rea k even if the p romotions a re no t assured to a ll

the O ffic ers. One way o f ac hieving this could b e throug h the integ rat ion o f the

sca les a nd the o ther one wo uld b e to elonga te the e xisting sc ales with annua l

increments.

We te nta tively sugg est the m erger of scales to red uc e num be r of scales in tune with

the 6th Pay Com mission. Further, there should be a utom atic m ovement to the p ay of

immediate next h igher scale in the revised two scale format . Acc ordingly , we

sugg est tha t the p resent 7 scale s be red uced to 2 sc a les as follows:

Sca le I Ma nager Grad e Integra tion of the p resent Sca le I to IV

Sca le II Exec utives Grade Inte g ra tion o f Sc a le V, VI & VII

GRADE PAY:

In orde r to provide higher em olume nts on promotion as ha s be en do ne in the ca se

of the Government serva nts a t eve ry scale/ grad e, we should introd uce Grad e Pay,

w hic h w ill b e a so rt o f inc entive to the sup e rviso ry c a d re fo r ta king hig he r

responsib ilities in the bank. It m ay b e rec ollec ted that, until the introd uc tion of Pillai

Committee Recommendations, the banks had a system of providing postallowances in va rious forms which wa s taking ca re of the higher responsibilities and

was prov id ing t remendous amount of sat isfac t ion to superv isory cadre. Bank

Office rs were also com pe nsa ted ea rlier in c ase o f transfer from Sta te to Sta te.

The q uantum o f grad e p ay should co mm ensurate with a nd c ould b e related to the

revised sc ales a nd refixed at the end of ea ch scale w ithin the m erged sca le. The

grad e p ay should b e trea ted as pay fo r all purposes.

DEARNESS ALLOWANCE:

The existing Dea rness Allowa nce is based on a formula arrive d through the merger

of index at every rev ision. Taking into acc ount the unabated price rise and

mo unting inflation a nd the c asc ad ing effect tha t it has brought on the real va lue of

compensation though stated to be 100% need to be relooked as the erosion has


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hurt eve ryone. Henc e the neutraliza tion should be approp ria tely inc rea sed from the

present level. It is a mere arithmetical calculation and hence suffers from several

inequ ities. The ineq uities sho uld b e rec tified by rationa lizing the existing fo rmula for

the purpose of calculat ion of the Dearness Allowance. The f irst and foremost

consid eration should be to refix the c om p ensa tion rate for every po int o f inc rea se.

The c urrent ra te o f 0.15 pe r slab of 4 p oints should b e re-fixed for the p urpose o f p ost

me rger neutra liza tion instea d o f working o ut me re a rithmetica l eq ua tion. To be

specific the neutralization which is at present 100% should now be increased to

125%. The c onve rsion fac tor shou ld be rec alc ulated a ccording ly.

The inflation figures a re now a rrive d a t fo rtnightly basis in o rd er to wo rkout th e

ec onom ic g row th o f the c ountry. The infla tion is on a d ay to day b asis and the

pe riod ic ity of p rice fluc tuation is on da y to da y b asis and in c ertain instance it is on

hourly basis. There ha s been no instanc e o f the index com ing do wn in the la st

seve ra l yea rs and it has bee n on the increase. The inflation should be c om pensated

then and there only. We feel that,onc e the figures are ava ilable for the purpo se of

calculation of the monthly index the Dearness Allowance should be worked out

and the c om pensation pa ssed on to the wo rkforce , on a mo nthly b asis pe r point of

increase

Thanks to the introduc tion of tec hnolog y in b anking system the HRMS d ep a rtme ntsa re e quipped with wonde rful software a nd ce ntralized pa yment system , where the

co mp ensation is ca lculated within no time and the sam e is being pa ssed on to the

mem be rs of the staff in almost all the ba nks. Henc e, there is no problem in shifting

over from the current system of quarterly revision of dearness allowance to the

monthly revision. This is one wa y o f reasona bly p rotec ting the rea l wa ge s of the

wo rkforce in the industry. The de lay in announc ing the ind ex figures should be

com pensated by pa ying arrea rs for the m onth the index figure rela tes.

Example: - For the month of June the figures are released on 31st July and DA is

a p plic a ble w ith e ffe c t fro m 1st August. We sug gest tha t the DA should be

ap plica ble w ith retrospe c tive effect from 1st July to ensure virtual c om pe nsa tion for

the infla tion.


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MERGER OF INDEX FOR THE PURPOSE OF CONSTRUCTION OF SCALES:

We propose that the average consumer price index for industrial workers for the quarter

ending 30th Sep tem ber 2012 which wa s a t 4876 (1960=100) (round ed off) be ta ken fo r the

purpose o f merger of Dearness Allow ance for construction of Sc a les.

AUTOMATIC MERGER OF DEARNESS ALLOWANCE:

In line w ith the c onc ep t of p a y Com mission rec omm end a tions there should be mid

review of the scales by merging Dearness Allowance payable at the end of 2

years. To b e spec ific the revision d ate is 01.11.2012 up to 2 years i.e., on 30th

April 2015 the Dea rness Allow ance p aya b le to b e m erged and pa id as revised pa y.

The Princ iples ado p ted by the Pay Commission for the pu rpo se of m erger of DA an d

other allowa nc es should b e fo llowed Muta tis Mutand is in ca se o f Bank Employees.

PROFESSIONAL QUALIFICATION PAY:

At present the Professional Qualif ica t ion Pay is paid only in respec t of CAIIB.

However, with the passage of time revolutionary changes have taken place in the

ma tter o f b anking business. The d iversifica tion , whic h we have witnessed , ca lls for

spe c ia lization in different a ca de mic fields. We the refore a re of the o p inion that the

officers should be ade quate ly c om pe nsa ted for the va rious p rofessiona l

qualifications they possess during their career in the bank apart from the existing

CAIIB qua lifica tions.

We p rop ose tha t the existing pa ttern should b e revised a s under:-

EXISTING REVISED

Part I One increm ent One increm ent

Part II One inc reme nt Two inc rements.

The current system of pa yment o f PQP should b e revised a s und er:

Part I - The PQP should be equa l to the am ount of the last one inc reme nt drawn at

the end of the new scale.


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Part II - The PQP should b e equa l to 2 increm ents in the last stag e of the scale (Part I

- one increment and Part II two inc rem ents total 3 inc remen ts)

The a dd itiona l inc rem ents shall be g ranted for ac quiring add itiona l qua lifica tions in

Business Mana gem ent, CISA, Trea sury Ma na gem ent, Technolo gy, MCA, LLB, RISK,

Audit, Costing, HR etc and be considered for sanction of PQP on reaching

maximum in the scale.

FIXED PERSONAL PAY (FPP):

We propose that FPP should be treated on par with PQP in respec t of f itment of

Basic Pay on promo tion and pa yment o f all other allowa nce s. The fixed cha rac ter

now in existence should be done away w ith. The FPP sha ll be reworked on

promotion. FPP should be de freezed and the last increm ent in tha t sc ale co upledwith DA should b e pa id .

HOUSE RENT ALLOWANCE:

It is incumbent on the part of the banks to provide ac commo da tion to eac h and

every off icer wherever he is posted or wherever he desires to have his family

ac co mm od ated with a view to ensure that the med ic al and e duc a tional fac ilities

are no t de nied to them.

He should have the op tion of cho osing the drawing of HRA or a va iling the housing

accommodat ion provided by the Bank. HRA should be pa id as per the 6th Pay

com mission on a rea wise ba sis.

The g ap be twee n the Housing a cc om mod a tion p rovided on lea se and the HRA

pa id to them in lieu o f Housing ac commod a tion is so wide that the Officers feel that

they a re d isc rimina ted whe n they o pt for the rec eipt o f HRA in lieu o f the lea sed

housing ac com mo da tion. Hence the pa yment of HRA should have c orrelation to

the p reva iling lea sed rentals.

The practice of de duc ting a po rtion of the Basic Pay towa rd s the qua rters / leased

ac co mm od ation / furniture p rovide d should b e d one a way with.


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HRA ON CAPITAL COST BASIS:

For the purpose o f ca lculation o f HRA on c ap ita l cost ba sis the p resen t ma rket value

of the p rop erty should be rec koned instea d of the original co st of c onstruc tion.

HRA linked to rent rec eipt / ca pital c ost to be enha nce d to 200% of the House Rent

Allowance.

USE OF OWN HOUSE IN LIEU OF LEASED ACCOMMODATION:

The O fficer should have a n op tion to o ffer his ow n house to the Bank for the purpose

of lea sing and oc cup y the sam e to avoid freq uent shifting of the house and also

have the o pportunity of living in his ow n house.

OFFICIATING PAY:

The existing rate of o ffic iating a llow anc e should b e re-fixed a nd the paltry

pe rce ntag e prevailing at present should be revised to 10% of the last stag e of the

Sca le. This pa y should b e pa id to a ll the o ffice rs who officiate in the next higher

grad e even for a period of less than 7 da ys. The officiating allowance should be

trea ted as pa rt of the p ay fo r DA supe rannua tion purpo se a lso.

DIFFERENTIAL ON PROMOTION:

The differential on promo tion from one Sca le to other in the Office rs Cad re should

be atlea st eq uivalent to 20% of the Basic Pay and allowances last dra wn. In any

case the differential should not be lower than the officiating allowance to ensure

aga inst red uc tion o f emo luments on p rom otion. A co mp rehensive fitme nt formula

should b e evo lved with the ne gotiat ing unions in the industry leve l.

CITY COMPENSATORY ALLOWANCE:

The existing c lassific a tion o f cen tre should b e review ed c lassified in the fo llowing

categories:-


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CATEGORY CENTRE

I Majo r Metro Kolkata , Delhi,Mumba i, Che nna i,

Bang alore, Hyderaba d, Ahmed ab ad ,

Pune, etc .,

II Me tros (Area I) All c entres with m ore tha n 12 lakh

Pop ulation and Sta te Ca pitals

III Centres with po pula tion of 1 lakh and above and all Distric t Hea d quarters

RATES OF CITY COM PENSATORY ALLOWANCE:

Ca teg ory I - 20% of Basic Pay

Ca tegory II - 17.5% of Basic Pay

Cate gory III - 15% of Basic Pay

INCENTIVES FOR WORKING IN RURAL CENTERS AND OTHER SENSITIVE AREAS:

It is necessary to p rovide inc entives to a ll those officers who are po sted to serve in

the rural a rea s/ most sensitive a nd d ifficu lt area s/ a rea s with sec urity p rob lem s/ area s

of w ea ther ab erra tions in d ifferent p a rts of the country.

We p rop ose tha t the following incentive ma y be p rovided to the office r c onc erned ;

An a dd itiona l allow ance to the exten t of 20% of the Basic Pay drawn b y him;

Weigh tag e fo r the purpose of Prom otion

Choice plac e o f p osting on c omp letion o f the a ssign me nt

An add itiona l LTC to ena ble him to m ee t the family etc ;

CLOSING ALLOWANCE:


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All office rs irrespec tive of the o ffice o f posting/ i.e . b ranc h/ administra tive office e tc .,

should be paid the c losing allowance equal to 15 days of their salary once in 3

months.

HALTING AND TRAVELLING ALLOWANCES

a . Rev iew and ra tiona liza tion of Halting/ Boa rd ing / Travelling e xpenses.

b . The Boa rd ing expenses should be linked to lodg ing expe nses.

c . The existing system of a llowing banks to fix the rates of re imbursement

period ica lly should c ontinue w ith a p rov ision to review them a nnua lly.

d . All officers should be eligible for travel by Air, irrespective of distance with

Executive Cla ss entitleme nt fo r Sen ior Ma nagem ent.

e. For p laces not connected by Air, Officers should be permit ted to travel by

AC-Ist Cla ss by rail.

DATE OF SANCTION OF ANNUAL INCREMENTS:

Inc rements falling due b etw ee n 1st Janua ry to 30th June should b e san c tioned on 1st

January of the yea r itself. Inc rements falling due b etween 1st July to 31st December

should b e sa nctioned o n 1st July of the yea r itself.

PROTECTION OF ANNUAL INCREMENTS STAGNATION RELEASED:

An a llowa nce eq ual to the a mount o f la st drawn increm ent should be granted

every yea r a fter rea ch ing the m aximum in the sc ale . The a llowa nce so g ran ted

should be t rea ted as Basic Pay fo r a ll purposes.

REMOVAL OF EMBARGO ON SANCTION OF STAGNATION INCREMENTS, PQP AND

AUTOMATIC MOVEMENT:

The p resent Emb argo in rega rd to the sanc tion of stag na tion inc rement, a utoma tic

mov em ent and PQP in respe c t of those office rs who have refused p romotion

should be rem oved .


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PART- II

PERQUISITES, OTHER ALLOWANCES AND WELFARE FACILITIES:

The perquisites a nd othe r a llowa nces as we ll a s we lfare fa c ilities p rovided by the

ba nks and settled at the industry level should not be reckoned for the purpose of

arriving a t the c ost of w age revision. It is an essent ial a rea of func tiona l expend iture,

as in the case o f business p rom otion in o ther sec tors of the ec onomy. We the refo re

propose that the follow ing bene fits should be trea ted under this hea d ing . The Bank

should bea r the tax on p erqu isites.

POST ALLOWANCE:

Post a llowa nc e should be reintrod uc ed in o rder to p rovide incentive for officers for

working in the m ost co m pe titive sec tor, to co m pensa te him for taking a dditiona l

loa d on a ccount o f diversific ation, technology initiative etc .,

i. 25% of the Basic Pay should be paid as post al lowance to all designated

off ice rs viz., Branc h Managers, Divisiona l Ma na gers, etc .,

ii. 20% of the basic to othe r offic ers.

RISK ALLOWANCE :

Risk Allowance should be introduced to provide cover to all lending risks to all

sanc tioning a utho rities a t a ll g rades as p resent dynamics of banking involve s va rious

types of risks beyond the normal p rudenc e of ba nking.

Disturbed Area Allowa nce :

Disturbanc e Area Allowanc e o f 20% of Ba sic Pay should b e p a id to o ffice rs wo rking

in the b ra nches which co me s unde r disturbe d a rea a nd Terrorist p rone a rea s

ca lled as The Red Co rrido r.

MEDICAL REIMBURSEMENT:

The e xisting Me d ica l benefits should b e rationalized as und er:


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The fam ily of the Officer, whic h include s the spo use, the p arents, the d ep end ent

unmarried c hildren including step c hildren and leg ally a d op ted c hildren, physically

cha lleng ed b rothers / sisters w ith 40% or m ore d isab ility should be extend ed 100%

reimbursement for the purpose of hospitalization as well as domiciliary treatment.

This shou ld c ontinue e ven a fter ret irement.

The d efinition should be fu rther enlarged to inc lude d eserted widow ed sisters ,

daughters and unmarried brothers and sisters without physical disability.

Reimburseme nt of annual me dical a id should be enha nce d.

The IBA should also take imm ed ia te step s to rev ise the existing norms in respec t of

the inco me c riteria in resp ec t of the d ep end ents a nd the same should b e inc rea sed

suitably.

HOSPITALISATION CHARGES:

Reimbursement of domiciliary treatment and hospitalization diagnostic

investigations etc., should be actual expenditure incurred by delinking from the

AIIMS rates. The rate s so fixed should be revised a nnually.

Comprehensive Review to be made to include Hi-tech investigations, surgeries and

a ilme nts which a re no t presen tly c ove red und er the scheme. Reimb ursem ent

towards ailments under Dental, Ophthalmic, Orthopedics, which do not require

hosp ita liza tion should a lso b e c onsidered und er the schem e.

Ma ster Hea lth Che ck-up fo r the officer an d his / her spouse onc e in two yea rs if the

off ice r s age is less tha n 50 and every yea r if the o ffice r c rosses 50 yea rs of a ge.

LEAVE FARE CONCESSION:

We nee d to review the e xisting scheme in a co mp rehensive manner.

The entitled m od e of travel should b e m ad e a s a ir travel to a ll office rs

For Senior Ma nag em ent Cadre it c an be exec utive c lass.


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The e nc ashme nt of leave fare c onc ession should b e the a c tual expenditure he /

she w ould have incurred had the o ffic er trave led ac tually by entitled class.

Foreign Travel to be a llowe d within the entitlement upto the m aximum d istanc e

permissible in Ind ia .

The IBA should ta ke up with the Gov ernme nt and see k exem p tion from payme nt of

inc om e ta x whenever the amo unt is draw n on the ba sis of enc ashme nt.

SPECIAL ALLOWANCES:

The e xisting spec ial allow a nces pa id to d ifferent p lac es should be revisited and

rev ised in a c om p rehensive manner fo r exam ple in p lac es like J &K, Sikkim , North

Eastern Sta tes, Hima cha l Pradesh, Anda man & Nic obar Islands, Laksha dweep, the

red c orridor and other sim ilar ce nters.

The hardship allowanc e should be redefined and new areas should be ad de d on

the ba sis of the norms alread y available. It should also be revised wherever it is

alrea dy being pa id.

All the office rs serving in those places should also ge t these allowances in orde r to

meet the higher cost of liv ing etc., and wherever i t is pa id, it should be suitably

reviewed.

EXGRATIA:

The c onc ep t of minimum exgratia should b e reintrod uc ed in a ra tional ma nner.

Exgra tia is no w ava ilab le to all the Employees in Priva te Sec tor Banks, Foreign Banks

etc ., which has c reated a serious d i fferentia l in the emoluments between the

workforce in the Public Sec tor a nd o ther sec tors. It is a lso prevalent in Gov t. Sec tor

suc h a s Ra ilways/ Posta l and in Pub lic Sec tor Und erta king s. Henc e, an a mount

eq uivalent to not less than one mo nths gross salary should be pa id as exgratia to

all.

COMMERCIAL BANKING ALLOWANCE:


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In view of the onerous responsibilities of conducting commercial banking operations

involving risk, officers should be paid Commercial Banking Allowance as prevailing

in the Reserve Bank of India. (Cent ral Banking Allowa nc e)

PART III

ISSUES CONC ERNING LADY OFFICERS:

Thanks to the a wa rene ss tha t has b ee n c rea ted am ong st the wo me n in the c ountry

ove r the last seve ral yea rs to exce l on pa r with me n in all walks of life, the intake of

the lady o fficers in the banking ind ustry ha s ve ry sub stantially inc rea sed in a lmost a ll

the ba nks. It is nea rly 50% of the total rec ruitment in som e of the ba nks and it m ay

inc rea se in due co urse d ue to the c hang ing d emo graphic profile of em ployab le

ed uca ted youth.

They are a lso to-d ay a ccep ting cha lleng ing p osting s, transfers, and spec ia lized

areas in the banks without any hesitation. They are now in a posit ion to ac cep t

higher responsib ility in their c a ree r and look to hea d the institutions eve ntua lly.

The Office rs Orga nisations have be en rec eiving a num be r o f rep resenta tions,

memorandum and also resolutions highlighting the problems of the lady officers

through the va rious c onfe renc es a s we ll a s the Wome n s wing. Based o n these

feelers a nd sug ge stions, it ha s be en de c id ed to e xc lusively de vote a c hapte r to

consider their special situation and demand appropriate relief from the Indian

Banks Assoc iation .

(a ) PLACEMENT AND POSTINGS:

One of the major concerns of the lady Officers has been their placements and

posting s in the ba nks. The c ountry is yet to dev elop in the ma tter of infrastruc ture,

the facilities exclusively to the lady members in different places. Hence, a separate

Transfer / place ment Policy taking into ac co unt the problems of the lad y off icers

should be de signed and forwa rde d to the me mb er b anks by IBA. The IT sec tor is a

classic al exam ple where a lot of symp athy is show n to the wom en em ployee s in the


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matter of post ing and placem ent in order to get the best from them. Yet another

ma jor consid eration is the ir sa fety a nd sec urity a t d ifferent c en ters.

The lady O ffice rs need to be e xtend ed the benefit of flexi-time and flexi-place

conc ep t. They should be g iven c hoice o f their place a t the time of transfer and

plac eme nt keeping their d ifficulties in view. The Banks should be ad vised to kee p

one exclusive lady O ffic er in c harge of Personnel Adm inistra tion in all the Banks to

a ttend to their exclusive issues inc lud ing tra nsfer, pla cem ent etc .

The lad y Offic ers whose spo uses are working elsewhe re should be a cc om m od ate d

a t the sam e plac e. Simila rly, where the wife a nd husba nd a re em ployed in the

sam e b ank, they should also b e a c c omm od ated a t the sam e c entre.

(b ) PROVISION OF CRECHE FACILITY:

The Banks should provide Crec he fac ility for the be nefit of children of lad y Offic ers

who a re required to a ttend to office as the c hildren need pa rental attention.

(c ) LEAVE FACILITIES:

The e xisting Ma ternity Lea ve of 6 mo nths at a time should a lso b e e xtende d in c a se

of a dop tion of a c hild (from p resent 3 months).

3 months a dd itiona l sic k leave be sanc tione d afte r at taining the ag e o f 45 yea rs as

lady officers are prone to d isea ses a t this age.

Child Care leave as applicable to the Central Government employees should be

ma de ava ilab le to lad y offic ers.

(d) PATERNITY LEAVE:

The Pa ternity leave o f 30 days should b e introd uc ed for office rs on 2 oc casions.

(e ) LFC/ HTC:


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Spo use em ployed in the sam e ba nk to b e pe rmitted to a va il LFC sep arately as pe r

ind ividual elig ibility. The lady officers should b e p ermitted to take their dep endent

pa rents and parents in law a long with them o n LFC/ LTC.

(f) DEFINITION OF FAMILY:

The p a rents, fathe r-in-law & mo ther-in-la w, d ep end ent of a n o ffice r, sons an d

daug hters, brothers and sisters d ivo rced or d eserted , daughters or sisters etc to b e

trea ted as me mbe rs of fa mily for the p urpose of LFC/ HTC a nd me dica l fa c ilities.

PART IV

SUPERANNUATION BENEFITS:

The em ployer has an ob liga tion to e nsure tha t the em ployee s having served the

institution almost life time are provided adequate superannuation benefits so that

they are able to l ive a life o f dignity, honour and ab ove all a comfortable life for

hav ing g iven the ir bloo d and swea t to the institution.

The sup erannuation e xp end iture c anno t b e co nside red as a c ost a nd b e m ad e

subjec t ma tter of neg otiations. The com pensation paid in the form o f

superannua tion have been desc ribed by the highest court o f the country as

deferred wages paid to all those who served the institution with devotion and

conviction for ensuring the prosperity, not only for the institution but the nation as

well.

At present, the Banking Industry has prov ided for the benefit o f Gratuity, the

Prov id ent Fund or Pen sion, Leave Enca shment a t the time o f retirem ent, Med ic al

facilities, and several other welfare facilities.

We strongly feel that there has to be an exclusive and a comprehensive dialogue

between the Officers Organisations and IBA as to the improvements that are

req uired to b e m ade in the p resent supe rannua tion be nefits.

PENSION:


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The Banking Ind ustry has introd uc ed the Pension Scheme w ith effe c t from 1.1.1986

after protracted discussions and negotiations between the Officers

Organiza tions/ unions and the Ind ian Banks Assoc iation in the yea r 1993. The

Pension Schem e ha s rem a ined as such sinc e the b eg inning of the schem e in the

Banking industry.

The Gove rnment serva nts have seen two pay com missions during this period and if

we conside r the da te o f imp lementa tion as 1.1.1986 the re have been 3 Pay

Commission reports providing very comprehensive improvements in the

sup erannu ation b enefits to the c ivil serva nts in the G overnment.

The Pa y Co mm issio ns ha ve ta ken a very p ra gm a tic v ie w in the la st 3 Pa y

Co mm ission Rep orts and have ma de very sub stantia l cha nges in the scheme. There

is a need to ta ke the same view a s regards the Pensione rs in the b anking ind ustry as

well.

The period ical review o f Pension schem e is the respon sibility of the Ma na g ements of

the Banks. It cannot be tagged to b ipartite se t tlements which has a dverse ly

affected the pensioners and ult ima tely the pension schem e rema in as an archa ic

one in the Banking Industry. As a nd when the re a re imp roveme nts in the c entral

Govt. Pension scheme, the IBA should invite the negotiating unions and implement

the same

Pension consists of the follow ing parts:-

a . Basic Pension

b . Commutation

c . Dea rness Allowa nce

The Basic Pension is ca lculated on the basis of the last drawn 10 mo nths ave rag e

pa y by the retiree s or the last p ay draw n wh icheve r is beneficial to the retiree . The

formula has rem a ined the same .


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The Go vernme nt servants have b ee n p rovided the b enefit of up da ting of p ension

at periodical intervals to provide sufficient cushion against inflation and cost of

living.

Dearness Allowance be converted as Basic Pension as and when the cost of living

ind ex inc rea ses by a bo ut 50%. The Pensioner will therefo re have the be nefit o f

enha nc ed Dea rness Allow anc e a nd it p rov ides a small c ushion ag a inst the infla tion.

The other method ad op ted by the Government is to bring all the pensioners on a

unifo rm sca le by merg ing the Dearness Allowance a t the time o f rev ision as

recommended by the Pay Commission. The fac ility of upgradat ion of pension

above the age of 80 years be made available to Bank Officers as prevalent in

Go vernment. We the refo re suggest a s follows:-

BASIC PENSION:

Im prove the presen t Basic Pen sion in respe c t o f a ll the ea rlier retiree s on the basis of

the merger of Dearness Allowance at a level to be decided by mutual

und erstand ing b etwee n the IBA a nd the Offic ers organizations and unions.

COMMUTATION:

The p resent ra te o f Commuta tion ha s to be rev ised to 40% with the existing

conve rsion fac to r. The full pension b e resto red a fte r 10 yea rs.

DEARNESS ALLOWANCE:

The DA formula and neu traliza tion should b e a t p a r with serving officers.

GENERAL:

The v olunta ry retirem ent p rov ide d in the Officers Serv ice Rules should be

inc orporated in the Pension rules and they should also be made elig ible for Pension

without any disc rimina tion .

Pension sche me should b e extende d to all those who have be en denied ea rlier on

the basis of the misinterpretation of the understandings reached with IBA in


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particular those who retired under voluntary retirement scheme as per the service

reg ulations / resigned a fter co mp leting 20 yea rs.

The office rs who joined the bank be twee n 01.11.1993 and 26.01.1996 have to be

cove red und er the pension reg ula tions.

Prov ision of a dd itiona l service as per the Pension Regulations to the extent of 5 yea rs

should be e xtend ed to e ac h an d every retiree s in the ba nking industry.

Those having relaxation of ag e at the time of rec ruitment on ac co unt o f disab il ity

etc., also to be extende d ad ditiona l p eriod of 5 yea rs to his / her service qua lifying

for pension.

Also, fo r Ex-servicem en the ir past services rend ered in the Armed Force should be

added to his / her service fo r qua lifying for pension.

FAMILY PENSION:

The Fam ily Pension should be on pa r with the Government and be at 30% of last

drawn pa y b y the offic er ac ross the bo ard to every one. The reg ular fam ily pension

will be payable fo r 10 yea rs or till the 70th year of notional ag e of the de ce ased .

NEW PENSION SCHEME

The em ployees and office rs who joined the ba nking ind ustry on o r afte r 01.04.2010

should be go verned by the original pension settleme nt signed on 29th Oc tob er 1993

and Ga zetted in the yea r 1995.

GRATUITY:

The G ra tuity should be pa id a t the ra te o f one m onth sa lary and allowances without

any c eiling . The g ra tuity should b e c om pletely exem pt from p ayment of incom e

tax.

PROVIDENT FUND:


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The Provident Fund should be at the ra te of 12% of the tota l sala ry a nd allowances.

The Provident Fund should be p ayable to all em ploye es.

ENCASHMENT OF LEAVE:

Enc ashme nt o f entire lea ve at c red it sho uld also be pe rmitted on resigna tion,

rem ova l and c om pulsory retirem ent.

The existing ceiling on enc ashment of lea ve should be e nhanc ed to 360 da ys at the

time of resigna tion / supe rannua tion. The entire am ount should be exemp ted from

inc om e ta x as in the c ase o f the Central Gove rnment Emp loyees.

MEDICAL BENEFIT SCHEME:

A c om p rehensive Me dica l Schem e for pe nsione rs/ retiree s should b e fram ed and

introd uce d in all the ba nks as available now in the ca se of exec utive direc tors and

CMDs of the Banks.

WELFARE ACTIVITIES:

A sep ara te a lloc ation o f funds for improvem ents to welfa re o f the p ensioners should

be m a de eve ry yea r. The fa c ilities like Holiday Hom e, c linic s, Transit House e tc .,

shou ld b e m ade e lig ible for pe nsioners also.

LFC/ HTC FACILITY:

LFC / HTC Fa c ility should be e xtended to the retiree s a lso a t par with serving

employees.

Part V

NON - MONETORY ISSUES RELATING TO WORKING ENVIRONMENT ETC.,

GENERAL ENVIRONMENT AMBIENCE WORKING HOURS ETC.,

It is the duty of the banks to provide an appropriate environment, ambience and

above a ll the HR syste ms a t a ll branc hes. The office rs frate rnity should a lso b e


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prov ided with a ll amenities suc h a s sup ply of re freshme nt, be verage s e tc ., inside the

branc h p rem ises in view o f the pressure o f work, long stay in the office etc .,

The environment should a fford an op po rtunity for full exposure of the c rea tivity a nd

also e fficienc y of the officers while d ischa rg ing their duties to the custom ers a s we ll

as the b ranc hes.

The b anking industry is now eq uip ped with excellent techno logy adv anc ement,

continuous updation of computers, servers etc., there is therefore a need for the

Ma nage ment to ad op t approp ria te HR initia tive s to encourage and m otivate the

Office rs to a c quire know ledge in these fields and g ive the ir best to the institution.

The Banking Ind ustry is en trusted w ith the respo nsib ility o f enha nc ing the ec onomic

prosperity of the country and also the GDP growth with a view to enhance thestand a rd o f living o f the comm on ma n. The ma na gem ent should ensure tha t

reasonable working hours are fixed rather than pressurizing the officers which may

lead to fa ilure a nd resultant loss of he alth or upset the officers routine. Henc e, the

working hours for officers shou ld b e d efined and reg ulated .

5 DAYS WEEK:

Five Day wee k is alrea dy ava ilable in the interna tional ba nking system. It is alsoavailable in our c ountry in RBI, Cen tral a nd Sta te Governme nts and in Public Sec tor

Und ertakings. Hence, it sho uld be introd uced imme d iately in the entire ba nking

industry.

The working hours should not exce ed 36.5 ho urs in a wee k. The da ily wo rking hours

should not b e m ore tha n 6.5 hours in the norma l course.

Any wo rking hours, more tha n 7 hours a da y, should be com pe nsa ted mo neta rily to

the e xtent o f twice the a c tual hourly salary in the normal c ourse.

They should a lso b e m ad e eligible to take w eekly off to the extent o f ad ditiona l

hours of d uty rend ered b y them.


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The Office rs who are ca lled upon to work on wee kly-off da ys and holida ys, should

be comp ensated as above and in a ddition be permit ted a com pensatory off on a

da te co nvenient to them and such we ekly offs b e c red ited to the lea ve a cc ount.

LEAVE RULES:

The existing leave rules will have to be comprehensively rev iewed and made

officers frien dly an d flexible as av a ilab le in seve ral o ther sec tors of the ec onom y.

The ava iling of leave should be ma de flexible. The office rs should be free to ava il

the lea ve as and when requ ired . They should also have the be nefit o f splitting the

day into hours and half-day, fu ll-day etc ., and longer period as in the case of

seve ral o ther co rporate s.

TYPES OF LEAVE:

The e xisting system of m a inta ining sep ara te leav e a cc ounts ma y be done away

with. A co mm on a cc ount of leave should b e introd uce d whe re they should b e

able to com bine all types of leave into total numb er of d ays of leave available to

them and use the same as p er their own req uirement.

Howe ver for the p urpo se o f be tter understanding w e re-prod uce the typ es of lea ve

ava ilab le and the need to review the sam e.

a . Ca sua l lea ve should be inc rea sed to 15 days;

b . Privileg e Lea ve 33 days in a ye a r.

c . Sick Lea ve 15 days in a yea r ( on full pa y) without a ny c eiling;

d . Restric ted holida ys: A minimum of 10 da ys in a year for festivals and other

persona l, relig ious functions etc ., m ay be p ermitted to be av ailed as holidays

by the o fficers.

e. Spec ial lea ve fo r stud y, sports, soc ia l and cultural ac tivities

f. Leave o n loss of p ay

g . Sab ba tica l leave


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INTRODUCTION OF LEAVE BANK:

The leave so c alculated should b e c red ited to the lea ve a cc ount of the o fficer on a

co nsolida ted ba sis. The office r should be eligible to ava il the leave on the ba sis of

his req uirem ent. The intermittent holid ays a nd we ekly offs should b e exclud ed while

sanc tioning lea ve.

The Office r should have the opp ortunity of enc ashing the b alanc e a va ilable in the

consolidated leave account once in a year to the extent of 50% of the leave

ava ilable in his acc ount a t the be ginning o f the sub seq uent yea r. Further, a n officer

should b e pe rmitted to e nca sh the entire leave a t his c red it at the time of retireme nt

inc lud ing sick leave a nd no c eiling should be im po sed for a cc umula tion o f leave.

The o ffice r ma y be permitted to transfer leave to a nothe r office r in c a se o f need for

medical purpose.

OUTSOURCING :

Work done o n a reg ular basis should not be o utsourc ed .

DISCIPLINARY RULES PROCEDURE:

We hav e subm itted a ve ry com prehensive note to the Indian Ban ks Assoc ia tion for

the review of the e xisting c ond uc t rules and p roc ed ure a nd to introd uce c ertain

cha ng es in tune with the c hang ing environm ent. (Copy enc losed ) The issue should

be d isc ussed for impleme nta tion.

ADMINISTRATIVE TRIBUNALS:

The IBA should take up with the G overnme nt, the introd uc tion o f an exclusive

Banking Administra tive Trib unal fo r the b anking Ind ustry in orde r to d ea l with a ll the

serv ice as well as d isc ip linary mat ters in respect of off icers similar to Centra l

Ad ministrative Tribuna l.

Discussion of Disc iplinary Ac tion p roce dure


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An exc lusive exerc ise should be carried out by IBA for b ring ing appropria te

amendments in the Discipline and Appeal Regulations in due consultation with all

the Four Office rs Organ isa tions.

PART VI

GENERAL BILATERAL RELATIONSHIP:

The 7th Joint Note exercise on Officers wage revision when resume, will have a

historical significance in the sense that the Management and the Officers

organizations have come a long way in the structured negotiation systems and

have ma tured enoug h to d ec id e a nd a rrive a t a c om pe nsation whic h is ge nerally

a cc ep ta ble to b oth the p artie s. In the p ro ce ss we ne ed to ha ve a c lea r

demarcation as regards the issues concerning the Officers fraternity and Officers

orga niza tions should ha ve e xclusive right to neg otiate on beha lf of the office rs in the

banking industry. Hence, all the issues connected with both the directly recruited

officers as well as the Officers promoted from clerical cadre have to be decided

betwee n the IBA and the Offic ers organizations. For examp le, the fitme nt formula ,

which is now in a state of c onfusion, will have to b e d iscussed and settled between

the Off ic ers organ iza tions and the IBA. Similarly the issues of p romo tion p olic y,

transfer policy, etc., will have to be settled bilaterally with Officers organizationsboth a t the b ank a nd the ind ustry level.

STRUCTURED FORUM AND ACCOUNTABILITY FOR SETTLEMENT:

The Office rs o rgan iza tions have bee n holding d iscussions and neg otia tions with th e

representa tives of the Ind ian Banks Assoc iation over the last 40 ye ars. The system

has g ot itself strea mlined during the la st 3 de ca des and the issues tha t a re relate d to

the compensation and also certain issues of urgent nature are brought to the IBA

forum a nd de c id ed betwe en b o th the p arties. There is a nee d to structure this

conventional arrangement and ensure that all issues affecting the industry and the

impac t o f the d irec tives o f the outside agenc ies on the o fficers fraternity are

brought to this structured forum and de cided to avoid unnece ssary irritations in


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ind ustria l rela tions in the b anking industry. The p roper deta iled and c od ified a ccount

of all disc ussion should b e e xcha nge d .

The struc tured fo rum s are alrea dy in vogue in all the b anks. The issues referred to

the banks by the IBA and the Government is discussed at the bank level

ne gotia tions b y ea ch o rg aniza tio n whic h le ad s to d isc re pa nc ie s in the

im plementation of any understand ings rea ched be twe en the o rganiza tions and the

management.

Certain Industry level issues have to be discussed at IBA / Government Level.

Henc e, there is a need to have structured forum at IBA / Government for pe riod ica l

d iscussions. Henc e, there is a need to b ring all suc h issues/ d irec tives of the IBA an d

the G overnment b efore a struc tured me eting and settle to avo id freq uent a g itation

and industria l unrest in the b anking ind ustry.

RECRUITMENT / RETIREMENT:

The Banking ind ustry is in d old rums due to ina deq ua cy o f the workforce. The

lopsided po lic ies and the conventional approach o f the Government and the

Managements of the banks at the instance of the IBA and the Ministry of Finance

have created a big ga p in the averag e ag e of the various groups of em ployees in

the ba nks. There we re no rec ruitments virtually for mo re tha n 2 de ca de s a nd as a

result, the ag e d ifferenc e be tween the o ld em ployee a nd the new em ployee is so

wide tha t the ave rag e a ge o f the workforc e is adve rsely a ffec ted .

A close review of the situation should be considered and necessary steps to be

taken fo r a p ra gm a tic suc cession p lan. The large sca le retirem ent is adv ersely

affecting the workforce since experienced hands are getting retired where as a

la rge c hunk of new rec ruits a re fo rced to take up higher positions a nd the

prom otions are g etting a c celerated in c om parison w ith the ea rlier situation the reb y

causing serious problems of seasoning and grooming of higher level officers in the

banking industry.

A c rash p rog ramme should be w orked out to tac kle this serious issue.


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In view of shorta ge of m a npo wer, the retirem ent a ge should b e re-fixed . We have

the following suggestions:-

VOLUNTARY RETIREMENT:

Red efine the volunta ry retirem ent and re-fix the m inimum elig ibility for the p urpose.

AGE OF SUPERANNUATION:

The age of sup erannua tion to be ra ised to 65 yea rs for a ll office rs.

WITHHOLDING OF GRATUITY ON RETIREMENT / RELEASE OF TERMINAL BENEFITS :

The present ad hoc system of withholding gratuity a nd harsh de cision to set off the

gratuity amo unt to wa rd s loss caused etc ., should be reviewed keep ing in view , therec ent judicial p ronounc ements. In any c ase, there should not b e stop pa ge or

den ial of g ra tuity to the office rs.

No disc iplina ry ac tion should be initia ted a fter sup erannua tion.

All Terminal be nefits should be relea sed pe nding disciplina ry procee dings if ba nk

fails to c om plete the p roc eed ings b efore sup erannua tion a s is be ing done in the

case o f CBI ca ses being p end ing .

WELFARE FACILITIES:

CEILING :

Present Ceiling of 3% of net profits to be increased to 5% of net profit without any

ceiling.

LIFE COVER :

Suitab le Life Co ver should be ta ken for norma l as we ll as acc identa l death.

REVIEW OF LOANS AND ADVANCES :


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In view of the inc rea se in cost of c onstruc tion of hou se and flats, we need to ha ve a

com prehensive review of House Building Adva nce to officers by suitably e nha nc ing

the lim it to Rs.50 lac s a t Simp le rate of inte rest witho ut a ny slab .

Since the Co nveyance Loa n ha s not b een revised for long, we nee d to e nhanc e

the Ca r Loa n limit to Rs.10 Lac s and Two Whee ler Loa n lim it to Rs.1 lac a t Simp le rate

of interest without a ny slab .

The repa yment of the a bove loa ns should be e xtend ed up to 75 years of a ge .

ROAD TAX ON VEHICLES:

In view of All India transferab ility of office rs, the Roa d tax on vehicles of different

Sta tes sho uld be pa id b y the bank on inter-sta te transfers.

DATE OF RETIREMENT:

Those w ho were b orn on the 1st of a mo nth to b e retired on the last d ay o f the sam e

mo nth, a nd not the previous mo nth.

PROTECTION OF EMOLUMENTS:

The emoluments drawn by an Office r should be protecte d on his transfer from one

place to another.

TRANSPORTATION OF PERSONAL BELONGINGS:

The Banks should take the responsibility for shifting the person al e ffec ts of the o ffice rs

on transfer from one plac e to anothe r. In the a bsenc e of suc h fac ility, the Offic ers

should be reimbursed the full expe nd iture o n c ertifica te b asis.

INCIDENTAL EXPENDITURE ON TRANSFER:

To m ee t ad d itiona l expend iture to wa rd s ed uca tion of c hild ren, housing etc ., officers

should be pa id two mo nths salary to co mp ensate incidental expe nses on transfer.

In case of t ransfer outside the State, 3 months' salary should be paid towards

inc idental expenses. In ca se of transfers to far off centers and the p laces of


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inclement weather and living conditions, there has to be high compensation as

incidental expenditure on transfer.

OTHER ALLOWANCES SUCH AS HILL AND FUEL ETC.

All the a llowances other than what have been covered in the earlier c hapters

should be enhanc ed ap propriately.

AREAS DECLARED AS SEZ/ NEZ/EPZ:

The branches co ming und er the ab ove area s should b e trea ted on pa r with Me tro

Centres for all a llow anc es and perqu isites.

SPECIAL ALLOWANCE TO NORTH EAST, SIKKIM AND OTHER DISTURBED AREAS / NAXA L

PRONE AREAS:

Spec ial allowanc e a s preva iling in Central Government/ RBI fo r Offic ers serving in

these a rea s should b e e xtended to Ba nk Officers.

IMMUNITY FROM TRANSFER POLICY, SPECIAL PRIVILEGES TO OFFICE-BEARERS OF THE

ORGANIZATION:

In view of the po sitive role played by the Offic ers Orga nizations there is a need to

revise the existing arrangements as regards the special leave to the office-bearers

of the orga niza tions. The existing a rrange me nt is g rossly ina deq ua te in c om pa rison

with the size a nd the g row th of the b anking ind ustry and eq ually the mem bership o f

the officers organiza tion the structure o f the orga nization a nd henc e a pp rop ria te

enha nc eme nt in the leave facility nee ds to b e c onside red .

The senior office -be arers of the Office rs orga nizations should have the duty off in

view of the fact that they will be dealing with all the personnel matters relating to

the o ffice rs fraternity and they m ay not be ab le to attend to their deskwork. If the

Office Bearers are denied this facility it would cause great harm to the

officers organizations in the banks.


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The Office -be arers of Assoc ia tions should be extend ed immunity from

transfer/pla cem ent. The Ce ntra l / Sta te level office -be arers should be g iven duty-off

on pa r with wo rkmen orga niza tions. The fac ility is due for review.

THE LOAD FACTOR:

The neg ot iations on c ost of sa lary revision shou ld b e c onfined on ly for the p urpose o f

dec id ing the loa d fac tor in respe c t of Basic Pay a nd Dearness Allowa nc e.

DATE OF EFFECT:

The da te of effec t for implementation of the settlem ent o n the ba sis of the c harter

of dem and s should b e from 1.11.2012.

RIGHT TO SUBMIT SUPPLEMENTARY CHARTER:

The Office rs Orga niza tions reserve the right to inc lude , am end or a lter the

dem ands, as ma de out in the Cha rter during the c ourse of b ilate ral d iscussions.

All ano malies arising o ut o f Salary Rev ision sho uld b e resolved irrespec tive of the cost

fac tor involved .

Long pend ing issues on regula ted wo rking hours, 5 days week a nd standa rd iza tion

of retireme nt be nefits and imp rovem ent in co mp assiona te App oint Sche me should

be d isc ussed be fore c om menc em ent of reg ula r wa ge revision ne go tia tions.

(P.K.SARKAR) (D.S. RISHABADAS) (S. NAGARAJ)

CONVENOR GENERAL SECRETARY GENERAL SECRETARY

UFBU AIBOC AIBOA

(K.K. NAIR) (S. U. DESHPANDE)

GENERAL SECRETARY GENERAL SECRETARY

INBOC NOBO

Mumbai 30.10.12

---------------------------------------------


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ANNEXURE

DISCIPLINARY & VIGILANCE PROCEEDINGS

Issues to be c onsidered

(i) Classific a tion o f Misconduc t

(ii) Abuse of the omnibus cond uc t Rule

(iii) Autho rity for imp osing Major Penalties

(iv) Definition o f Moral Turp itud e & amend me nt of B.R.A.

(v) Disposa l of d isc iplina ry ca ses & a ppea ls

(vi) Copy of CVC/ CVO advice

(vii) Provision o f Persona l Hearing s

(viii) Inte rp reta tion & Effec t of Penalties

(ix) Deba rme nt pe riod

(x) Sa nc tion o f Prosec ution/ Arrest

(xi) Suspension & Sub sistenc e Allowa nc e

(xii) Defenc e Rep resenta tives- No.of pe nd ing ca ses

(xiii) Ag reed List- LODI

(xiv) Jurisd ict ion o f CAT

(xv) Proc eed ing s a fter Retirem en t(xvi) Issuanc e of Cha rge She et

(xvii) Other issue s

(i) CLASSIFICATION OF MISCONDUCT

In the Officers Service Reg ulations, M inor a nd Ma jor p ena lties have been c lassified ,

but the re is no c lassifica tion of M inor and Ma jor misconduc t. Breach o f any prov ision

of the c onduc t rules is to be deem ed as Misco nduct. It is left to be de cided by the

Disciplinary Authority (in short DA) whether to initiate proceedings under

Minor/ Ma jor pe na lty clause thereb y leaving scop e for subjec tivity. In c ase of Awa rd

Staf f and a lso Government employees, major and minor misconduct has b een

defined as a result one d oe sn t ge t ma jor pe nalty for a minor misco nduc t. In c ase o f

Officers, though a large number of cases of proceedings under major penalty end


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up in e xone ra tio n o r a wa rd o f a m ino r p ena lty d ep end ing up on g ravity o f

misconduct proved after enquiry but in very many cases of minor misconduct, the

officers end up ge tting a ma jor penalty. Also, there a re m ental b locks in the minds

of som e DAs who think tha t if Ma jor Pena lty proc ee d ings a re initiate d , minor pen alty

or exoneration or withdraw al of c harge sheet etc .canno t be do ne.

Rec omm endation

Minor and Major misconducts should be defined with clear provision that minor

pe nalty or exoneration ma y be a wa rde d a fter co nclusion of ma jor pe nalty

proce ed ings but ma jor penalty ca nnot b e im po sed in c ases of d efined minor

misc ond uct.

(ii ) ABUSE OF THE OMNIBUS CLAUSE

Thoug h c ond uc t rules have been elabora ted in the Reg ulations, the regula tions a t

the sam e time conta in a n Om nibus Clause to fit the miscond uc t not spe c ifically

defined into the om nibus clause. The tragic reality is tha t in m ore than 90-95% cases,

the officers are booked under this Omnibus Clause. It proves beyond doubt that

whe re m iscon duc t is spec ifica lly defined , viola tion is m inim al. But m ore importan tly,

it indic a tes that there is an unb ridled tend enc y amo ng the DAs to a buse this

provision a nd any c ond uc t is dubb ed as miscond uc t by invoking this c lause which

ought to be attracted in rare cases but which is applied in an overwhelming

number o f cases. If this c lause is annulled and instead if the vast va rie ty o f

misconducts covered under this clause over the last over three decades are

analyzed and spec ifica lly p rovided in the conduc t rules, it w ill lead to bette r

compliance and minimal breach on the part of the officers. In particular, what is

unbec oming of a Bank Officer must be exp lic itly stated in the conduc t rules.

Rec omm endation

The omn ibus cla use in the cond uc t rules shou ld be d elete d.

(iii) AUTHORITY FOR IMPOSING MAJOR PENALTIES


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As per Article 311 of the Constitution of India, Disciplinary Authority for imposing

capital p unishment should not be lowe r tha n the Appo inting Authority. Sinc e all

capital punishments leading to cessation of service are classified under major

penalties, it automatically follows that for imposing any major penalty, the

Disciplinary Authority should not be lower in rank than the Appointing Authority.

Though this p rinc ip le is followed in the Go vernme nt a nd va rious other Orga nisa tions,

inc lud ing the Sta te Bank of India, in na tionalized Banks it is no t being followed .

Rec omm endation

No Authority lower in rank to the Appointing Authority should be competent to

a wa rd m ajor pe nalty.

(iv) MORAL TURPITUDE & AMENDMENT OF B.R.A.

Thoug h the term M oral Turpitude ap pe a r prom inently in the Discip linary &Co nduc t

Rules and on a g rea t num be r of o ccasions, impo rtant dec isions to p roc ee d aga inst

the Officers or to place them under suspension have to be taken for the acts

invo lving Moral Turp itude , it is a quee r pa radox tha t wha t c onstitutes Mo ral Turp itud e

has not been clearly or exhaustively defined either under law or in the conduct

rules, though there are various court judgments which to some extent explain this

term. Existence of a general provision in the Banking Regulat ion Act Sect ion

10(1)(b)(i) which states that no em ployee who is co nvicte d by a co urt of law fo r an

act involving mo ral turpitude ca n b e c ontinued in se rvice enormo usly inc rea ses the

need and imp ortance of d efining wha t is Mo ra l Turp itude , pa rticularly in the c ontext

of norm al da y to da y b ank work in o rder tha t large number of b ank off ice rs do not

become unwary v ic t ims of these prov ision and suddenly lose their job with no

rec ourse ava ilab le or a reasona ble hop e of rec laiming the lost job d ue to a

pa infully slow an d exaspe rating leg al system and no provision for ge tting full ba ck

wag es if the co nviction is set aside later on. When the o ffice r is convicted , he is

summarily discharged or even dismissed without holding enquiry etc but when the

conviction is set-aside afte r prop er tria l, the intervening period is a t b est treate d a s


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deem ed suspe nsion for paym ent o f sub sistenc e allow ance o nly instea d o f pa ymen t

of bac k wa ges. In the Ind ian Overseas Bank, even the subsistenc e allowance is not

pa id an d this p eriod is trea ted a s b rea k in service.

To e lab ora te, the g rav ity of p rejud ic e suffered by Officers on a cc ount of this while

performing the normal day today dut ies in the bank c an be seen by the fact that

Moral Turp itude has bee n de fined thus in the Am eric an settled law:

Moral turpitude refers generally to conduct that shocks the public conscience.

Offe nses such a s murd er, vo luntary ma n slaug hter, kidnap ing , robb ery and

aggravated assaults involve moral turpitude. However, assaults not involving

dangerous weapons or evil intent have been held not to involve moral turpitude.

Conv ic t ion of c rimes of moral turp itude may also d isqualify someone from an

employment opportunity. The prec ise def in ition of a crime that involves moral

turp itude isn't a lways c lea r, but the ab ove serious c rimes only a re a lwa ys consid ered

c rimes of mo ral turp itude .

In terms of the abo ve and umpteen judgm ents given by the courts in India, o ut o f

the ab ove list bribe ry a nd fraud s co mm itted by an office r himself shall qualify to be

acts involv ing moral turp itude. But, it has been seen that various normal and

seem ingly innoc uous norma l b anking ac ts have be en routinely c overed by the trial

courts under Sec tion 120 B or sec tion 420 IPC resulting in the d ischa rge or dism issal of

the officer. By the time the a pp ea ls a re d isp osed off the officer m ight c ross the

norm al retirem ent a ge and he ne ither ge ts b ac k wa ge s or any other com pe nsation

for loss of emp loyment.

Rec omm endation

Moral Turpitud e should be c lea rly defined in the c ond uc t rules. In the b anking

context, a c ts of a cc ep ting b ribe or fraud on the p a rt of the offic er himself should be

considered the one involving mo ral turp itude. Full ba ck wag es should b e paid if the

office r is held to b e innoc ent and his conviction is set aside afte r dispo sal o f a ppe al.

During pe ndenc y of the a pp eal, the office r ma y be pla ce d under suspe nsion.


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Admission of appeal and/or stay against sentence should be deemed as stay

against prosecution for the purpose of compliance of provisions of Banking

Reg ula tion Ac t since the c ase is a ccep ted fo r retrial. We should a lso dem an d from

the gove rnment

Suitab le a me ndme nt to Sec . 10(1)(b )(i) of the Banking Reg ulation Ac t.

(v) DISPOSAL OF DISCIPLINARY CASES & APPEALS

It is la id down in the spec ial chapter of CVC Manual that no cognizance of the

misc ond uct will be taken if the ac tion of the office r is more tha n two Inspe ctions or

four yea r old provide d there is no fraud in which c ase there will b e no lim itation of

time. But c ha rge shee t c ontinues to be served even a fter lap se o f 10 or mo re years.

Further, though the maximum time permitted for service of charge sheet and for

comple tion o f d isc ip linary proceed ings are la id down, in prac t ice , it is ra re ly

adhe red to. The time for filing o f an a ppe al a gainst de cision o f the d isc iplinary

authority as also the t ime for disposal thereof are laid down in the said chap ter.

Thoug h, lim itation of time is insisted upon for filing of the appe al a nd delay in filing is

rarely c ondo ned, the time limit for dispo sal o f the ap pe al is rarely a dhe red to a nd

disposa l of ap pe a ls in m any cases is delayed for years tog ethe r. Conseq uently, the

officers continued to suffer particularly when they are under suspension or when

cessat ion of servic e has been effec ted .

Rec omm endation

It is rec om me nde d tha t the laid d own instruc tions should be me ticulously followed

and no fault should be found with the ac t o f the off ice r after 2 Inspe ctions have

taken plac e o r a pe riod of four yea r has expired . Further, if the c ha rge shee t is no t

served within the stipulated pe riod of three mo nths or if the entire procee dings are

not co mp leted within the stipulated time of six months as provided in the Vigilanc e

Manual, the suspe nsion of the off icer should be automatically revoked with ba ck

wa g es and in ca se the proce ed ings are not co mp leted even within a pe riod of one

year, the ca se should be dee med to ha ve be en c oncluded in o ffice rs favour and

he be dee me d to have b ee n exone rate d. In ca se, the cha rge shee t is not filed by


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CBI within the time limit of 90 da ys, bail is au tom atic ally grante d bu t sam e p rinc iple

is not ap plied for revoc ation of suspe nsion. It is rec om me nded that in suc h ca ses,

suspension should be revoked without p rejudice to the de c ision of the Court c ase.

Simila rly, if the appea l p re ferred by the o fficer is no t d isposed o ff w ith in the

stipula ted p eriod of three m onths, it should be d ee me d to ha ve b een a llowed .

(vi) COPY OF CVC/ CVO ADVICE

As per laid down instructions a copy of CVC advice is required to be furnished to

the d e linquent office r. In p rac tice , however, it is ob served tha t the a utho rities simply

provide the o pe rative pa rt of the CVC a dvice b ut the entire c orrespo nde nce

betwee n the Disciplinary Authority a nd CVC is not ma de ava ilab le which defeats

the ve ry p urpose of the prov ision. Furthe r, the re is no system o f p roviding the

advice of the C hie f Vig ilance Officer of the Bank where C VC jurisd ic tion is no t

attra c ted. This distinc tion is wholly unwarranted . The ad vice of CVO is a t a lower

foo ting must be furnished whe n the re is explic it p rovision to provide the a dvice of

the CVC.

Rec omm endation

The C VC/CVO ad vice alongwith the entire c orresp onde nc e should b e m ade

ava ilable. It is further, rec omme nded that the CVC/ CVO should only rec om me nd

ca tegory o f pena lty to be imposed i.e . Ma jo r o r M ino r and no t the spec ific

punishment because in that case he assumes the role of the Disciplinary Authority

himself. Further, in ca se of ap pe al further reference should not be ma de to CVC

partic ularly if the Appellate Autho rity p rop oses to g ive a low er pun ishme nt within the

sam e c ateg ory alrea dy rec omm end ed b y the CVC.

(vii) PERSONNEL HEARING.

The disciplinary p roc ed ures have be en grad ually ev olving in favour of the cha rged

office r and in the p ast som e favourab le c hang es have taken plac e like provision of

enq uiry, making ava ilab le rep ort of the Inquiring Authority to the cha rged officer so


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that he can argue against his findings, making available of copy of CVC advice

etc . But, an imp ortant p rovision like grant of a pe rsona l hea ring to the c ha rged

office r be fore a ward of the p enalty has all along b een de nied. As a result, he

doe s not ge t a cha nce to a rgue ag ainst the p ropo sed penalty be fore hand so that

som e aspe cts of the ca se which m ight have esc ap ed the notice of the Disciplinary

Au tho rity can be po inted out in good time and he w ill be ab le to take a more

ba lanced and reasoned v iew. Afte r the fina l dec ision is taken by the DA, it

be co mes difficult to undo the injustice as there is ge neral reluc tanc e to co rrec t the

mistakes a nd the a ppea l system is also loa d ed a gainst the em ploye e. There is

alrea d y a p rovision fo r g rant of a p ersonal hea ring to the workman em ployees.

Rec ently, the Hon ble Sup reme Court ha s de cided in a c ase related to State Bank

of India O fficer tha t while d ec iding the a ppe al the Ap po inting Authority must give a

persona l hearing . By tha t log ic, the DA should a lso g ive personal hea ring to the

officer. The sam e log ic should hold go od for review petition a s we ll. This p rovision is

also there in the rules applica ble to o fficers working in the G ov t of Ind ia .

Rec omm endation

The DA should ta ke a tenta tive d ec ision a nd g rant a persona l hea ring to the

charged officer along with his Defence Representative before taking a final

dec ision. The sam e proced ure should be a do pte d by the Ap pe llate Authority /

Rev iew ing Authority while d isposing o ff the ap peal of the o ffic er.

(viii) INTERPRETATION & EFFECT OF PENALITIES.

While the m inor pe nalties a re simp le a nd ea sily unde rstand able, some of the ma jor

pe nalties are very tec hnica l and c an not b e ea sily unde rstood b y the c harged

officer and even most of the Com pe tent Authorities. At times promotion of the

office r is withheld when no promotion is ac tually due to him. This results in undue

prolonga tion o f the rigour of the p enalty whic h m ight no t have be en the intention o f

the DA and the penalty though minor in effects become harsher then a major

penalty. Likewise, pe nalty of rec overy of loss is a minor p enalty and logically a

symb olic rec overy of sma ll sum should be effec ted but a t time s it is clubb ed with a


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major penalty and amount of recovery runs into lacs. For example removal of

service with rec ove ry of two lac s. Further, when a n office r is reve rted to a lowe r

grade, the reve rsion is ta ken a s a permanent reversion unless the o fficer re-qualifies

and ea rns ba ck the promotion, w herea s in gov ernment reve rsion is for a pe riod of

two years wherea fter the office r is plac ed ba ck in the higher sca le from where he

wa s reve rted. It is also a practice to give m ore than one pena lty like reversion to

lowe r or the lowe st grade c oupled with red uc tion in pa y etc .

Rec omm endation

CC A Rules should be fo llowed in this respec t in the b anks also.

(ix ) DEBARMENT PERIOD.

Debarment Rules are d if ferent in d if ferent banks. In some banks, there is no

de ba rme nt when m inor pen alty is awa rd ed while in some others de ba rment pe riod

extend s to 15-20 yea rs also. No deb a rment pe riod is stipula ted in case o f the

pe nalty awa rde d is Reversion to a lowe r grad e wherea s in ca se of Gov t e mp loyees

deb arment p eriod of reversion is d efined . In som e orga niza tions, whe n crim inal

p roc ee d ings are pe nd ing whethe r for miscond uc t pe rtaining to Bank o r some o ther

criminal misconduct, result of the officer is held in sealed cover throughout the

pendancy of criminal proceedings which sometime run for 8-10 years also and

som etime b eyond the norma l retirem ent da te a s well.

Rec omm endation

In ca se of m inor pena lty, there should be no rigo r and no de ba rme nt for prom otion

and results if any plac ed in the Sea led Cover should be g iven effec t to. The

ma ximum de ba rment / rigor for a m ajor pen alty should not b e m ore tha n one year.

(x ) SANCTION OF PROSECUTION/ ARREST

There a re d ifferent rules in different ba nks. The a utho rity em p owered to sanc tion

Prosec ution of a n officer alwa ys ac ts und er the influenc e / p ressure o f the CBI /


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43

CVO and is not pe rmitted to a c t inde pe nde nt. Further, while p rovision ha s be en

made for obtention of sanction of the Competent Authority before launching

prosecution against the officer but no such provision has been made to obtain

similar sanc tion befo re a rresting the office r.

Rec omm endation

The powe r to sanc tion Prosec ution of an o fficer should be vested in h is App ointing

Authority. The g round rules should be laid d ow n fo r giving sanc tion for prosec ution

and the Appointing Authority or the Disciplinary Authority should be given a free

hand to ac t inde pend ently. Onc e he de clines to give sa nction, he be co me s a

functus officio and sanction cannot be sought unless fresh evidence is presented

befo re him. A provision should also b e inc orporated to ob tain sanc tion o f the

Appointing Authority before arresting the officer.

(xi) SUSPENSION & SUBSISTENCE ALLOWANCE.

Though the instruc tions p rov ide tha t an o ffice r will not b e p laced und er suspe nsion

be fore investiga tion, in prac tice freq uent deviations are ma de . Ground rules for

ord ering suspension of an o ffice r a re seldom followe d . Suspensions a re mostly

effected as a knee jerk reaction and is invariably behind the back of the officer

without g iving him a ny hearing . In most ca ses the op tion of transferring the o fficer

instea d is no t eve n c onsidered . Onc e the officer is place d unde r suspension, there

is v irtually no review thereof. Review mec hanism is totally absent. Review is

generally on the pap ers and in almost all the ca ses reinstatement of the officer

takes pla ce only after the p roc eed ings a re c onc luded and final order is passed . At

the time of passing fina l orde r, the DA is nigg a rdly in his trea tmen t o f the suspension

period . In case o f arrest of an officer, the re is p rov ision o f de em ed suspension a fter

48 hours of the arrest but there is no simultaneous provision of a deemed

reinstateme nt after he is acq uitted . There a re different rules a bo ut pa yment of

subsistence allowance in the government, in the award staff within the banking

ind ustry and within the d ifferent b a nks.


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The Disc ip lina ry Autho rities a re too nigg ardly in the ma tter of trea tm ent of

suspe nsion pe riod while pa ssing final orde r. It has bee n seen that excep t in ca ses

whe re the o fficer has bee n exonerate d , suspension p eriod is trea ted a s such

irresp ec tive of the gravity of the pe nalty a wa rded and nothing more than the

subsistenc e a llow anc e alread y pa id is paid a t the time of reinstate me nt which is

grossly unfa ir. Bene fit of Annual inc rem ent a lso is not g iven eve n for ca lcu lation of

the subsistence allowance.

Rec omm endation

Ground rules of suspension must b e meticulously followe d . Suspension o f a n o ffice r

prior to co mp letion o f investiga tion should not b e effec ted. The op tion to tran sfer

the off ice r to a distant

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