canara bank retired officers’ association (regd.)cbroa.co.in/pages/n b may 2019.pdf ·...

CANARA BANK RETIRED OFFICERS’ ASSOCIATION (Regd.)(Registered under Trade Union Act 1926) (Affiliated to AIBPARC)

1 & 70, First Floor, 9

Phone: 080

CBROA / News Bulletin / May/ 2019

Dear Friends,

We are celebrating 133rd year of May Day which is a day of commemoration of the triumph of labour against

exploitation and inhumane working conditions that prevailed in the wake of the Industrial Revolution.

Ironically the movement to end the inhumane wor

women and children were dying every year from poor working conditions and long working hours, started in

the USA in the year 1884. In an attempt to end these inhumane exploitation of labour, the Fed

Organised Trades and Labour Unions (which would later become the American Federation of Labour or AFL)

held a convention in Chicago in 1884. The organization proclaimed “Eight hours shall constitute a legal day’s

labour from and after May,1886.” The following year the Knights of Labour, then America’s largest Labour

organization , backed the proclamation as both groups encouraged workers to strike and demonstrate. On

May 1,1886, more than 3,00,000 workers (40,000 in Chicago alone) from 13,000 bu

of their jobs across the country. In the following days more workers joined and the number of strikers went on

swelling day by day. Overall, the protests were peaceful, but that all changed on May 3 where Chicago Police

and workers clashed at the McCormick Reaper Works. The next day a rally was planned at Hay Market Square

to protest the killing and wounding of several workers by the police.

The rally was being addressed by the Trade Union Leaders when a group of Police Officers

the crowd. As the police advanced, an individual who was never identified, hurled a bomb into their ranks.

Chaos ensued, and at least seven police Officers and eight civilians died as a result of the violence that day.

The Hay Market riot set off a national wave of repression. In August 1886 eight men labeled as anarchists

were convicted in a sensational and controversial trial despite there being no solid evidence linking the

defendants to the bombing. The jury was considered to be bi

the convicted men received a death sentence and the eighth was sentenced to 15 years in prison. In the end

four of the men were hanged, one committed suicide and the remaining three were pardoned six yea

A few years after the Hay Market Riot and subsequent trials shocked the world, a newly formed coalition of

Socialist and Labour parties in Eurpoe called a demonstration to Honour the” Hay Market Martyrs.” In 1890

more than 3,00,000 people protested at a May Day rally in London. May Day became a symbol of workers’

victory over exploitation, long working hours, inhumane workin g conditions. May 1 was eventually embraced

by many Governments worldwide, not just those with socialist or communist influ

Official Holiday in more than 66 countries and unofficially celebrated in many more, but ironically it is rarely

recognized in the country where it began, the USA.

May Day inspired fear in the minds of the capitalists and hope in

the strong labour movement, capitalism swung downward and the working class grew in political

consciousness and stature, leading to sweeping labour reforms across the globe. The labour ousted the

imperial powers and took reins of the state across Soviet Union and Europe. This triggered the oppressed

colonial and semi-colonial people to rise in revolt against the rule of imperialism. In India, the Trade Unions

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CANARA BANK RETIRED OFFICERS’ ASSOCIATION (Regd.)(Registered under Trade Union Act 1926) (Affiliated to AIBPARC)

Registered Office:

1 & 70, First Floor, 9th

Main, Jayanagar III Block, Bengaluru –

Phone: 080 – 26640003 Email: [email protected]

MAY DAY CELEBRATION



Ironically the movement to end the inhumane working conditions, on account of which thousands of men,


the USA in the year 1884. In an attempt to end these inhumane exploitation of labour, the Fed



” The following year the Knights of Labour, then America’s largest Labour


May 1,1886, more than 3,00,000 workers (40,000 in Chicago alone) from 13,000 bu



s clashed at the McCormick Reaper Works. The next day a rally was planned at Hay Market Square

to protest the killing and wounding of several workers by the police.

The rally was being addressed by the Trade Union Leaders when a group of Police Officers



iot set off a national wave of repression. In August 1886 eight men labeled as anarchists


defendants to the bombing. The jury was considered to be biased, with links to big business houses. Seven of


four of the men were hanged, one committed suicide and the remaining three were pardoned six yea



ed at a May Day rally in London. May Day became a symbol of workers’


by many Governments worldwide, not just those with socialist or communist influ


recognized in the country where it began, the USA.

May Day inspired fear in the minds of the capitalists and hope in the workers all over the world. Because of



s and took reins of the state across Soviet Union and Europe. This triggered the oppressed

colonial people to rise in revolt against the rule of imperialism. In India, the Trade Unions

CANARA BANK RETIRED OFFICERS’ ASSOCIATION (Regd.) (Registered under Trade Union Act 1926) (Affiliated to AIBPARC)

– 560050

26640003 Email: [email protected] Date: 01.05.2019



king conditions, on account of which thousands of men,


the USA in the year 1884. In an attempt to end these inhumane exploitation of labour, the Federation of



” The following year the Knights of Labour, then America’s largest Labour


May 1,1886, more than 3,00,000 workers (40,000 in Chicago alone) from 13,000 business houses, walked out



s clashed at the McCormick Reaper Works. The next day a rally was planned at Hay Market Square

The rally was being addressed by the Trade Union Leaders when a group of Police Officers arrived to disperse



iot set off a national wave of repression. In August 1886 eight men labeled as anarchists


ased, with links to big business houses. Seven of


four of the men were hanged, one committed suicide and the remaining three were pardoned six years later.



ed at a May Day rally in London. May Day became a symbol of workers’


by many Governments worldwide, not just those with socialist or communist influence. Today May Day is an


the workers all over the world. Because of



s and took reins of the state across Soviet Union and Europe. This triggered the oppressed

colonial people to rise in revolt against the rule of imperialism. In India, the Trade Unions

2

Act was enacted in 1926 along with many labour laws, which led to humane treatment of labour by the

owners of Industry and commerce. The Trade Union Movement in our country produced freedom fighters,

eminent parliamentarians, social workers. The movement brought better wages, better working conditions,

which were governed by service rules and regulations.

But the cycle has taken a full turn and with globalization, liberalization of the world economy, the capitalist

forces have raised their heads once again. The driving force of the capitalists is self-expansion of value and

profit by using money to make more money. The driving force behind production is not at the satisfaction of

human need but blind profits. The political situation the world over has become serious in its nature as attack

of capitalists and imperialist forces are increasing in third world countries, democratically elected

Governments and on working classes. This situation is effectively substantiated by the working conditions in

the Software industry, garment manufacturing units, and other industrial establishments which, have thrown

to winds the labour laws, of course with the direct support of the ruling establishment. The slogan of Karl

Marx, “Workers of the World Unite” has become more relevant today, to thwart the system of slavery and

extreme exploitation, through labour union’s relentless class struggle and class unity which is essential tool in

this fight. Only advancement of working class struggles can transform the society, which in turn shall provide

the equal opportunities to all its citizens. In current political situation all over the world, while protecting

workers’ unity has become essential but simultaneously has to build an alternative to the neo-liberal policies

which are creating havoc in the lives of common people. Today, globally 82 per cent of the wealth is pocketed

by 1 per cent and in India it is 73 per cent wealth which is garnered by 1 per cent wealthy people. Therefore,

fight against extreme poverty, extreme exploitation is key to change the society. In this background we

thought of ruminating over the relevance and importance of the May Day Celebration.

We wish all our members and the members of their family a Happy May Day and we also wish them health,

happiness, joy and peace for all the days to come.

Yours sincerely,

(A N Krishna Murthy) Bengaluru

General Secretary 1st May,2019

AIBPARC News: (cir 24/19 dated 12.04.2019)

*AIBPARC took up the issue of denial of Additional Stagnation increment to those who

retired between 1.11.12 & 30.04.15 with IBA:

The Chief Executive, 12.04.2019

Indian Banks Association,

Mumbai

Dear Sir,

Sub: Denial of Additional Stagnation increment to those

who retired between 1.11.2012 & 30.4.2015

We wish to invite your kind attention to our letter dated 29.11.2018 addressed to you on the captioned

subject. We do not appear to have received any oral or written communication from your side about our

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request to you to issue appropriate guidelines to all the Member Banks advising them to extend the benefit of

additional stagnation increment from a notional date or 01.11.2012 whichever is earlier with a provision to

allow financial benefit from the date of implementation of 10th

Bipartite settlement /Joint Note. Since no

action seems to have been taken on our request, we once again make a detailed submission on the issue of

effective date of Additional Stagnation Increment in terms of 10th

Bipartite/Joint Note dated 25.05.2015 here

under:

The Salary Revision/Joint note was signed between IBA and 4 organisations of Officers on 25.05.2015. It

provided for stagnation increment for every 3 completed years of service after reaching the maximum of Pay

Scale with a further stipulation that the last of the stagnation increment will be granted to those who have

completed 2 years or more after getting the previous stagnation increment. It was also stipulated that the

increments which fell due after completion of 2 years from the date of grant of previous stagnation increment

will be given with effect from 01.05.2015.

It is pertinent to point out that the effective date of the 10th

bipartite settlement joint note was 01.11.2012

and in all fairness those officers who were due for additional stagnation increment between 01.11.2012 and

30.4.2015 after having completed 2 years from the date of previous stagnation increment should have been

allowed to earn their last stagnation increment from the date on which fell due anytime on or after

01.11.2012. However this benefit of earning stagnation increment on completion of 2 years from the date of

previous stagnation increment was denied to the Officers by stipulating that 4th

/ 5th

stagnation increment will

be given w.e.f. 01.5.2015 in MMG scale II and MMG scale III respectively. Denial of Additional Stagnation

Increment on completion of 2 years from the date of previous stagnation increment and extending the date of

additional stagnation increment to 01.05.2015 in an arbitrary manner has resulted in a financial loss to the

Officers in the following manner:

a. Loss of Arrears and reduction in the 10 months average pay for computation of Basic Pension to those who

retired between 01.05.2015 and 31.01.2016.

b. Total loss of Arrears on account of additional stagnation increment due between 01.11.2012 and 30.04.2015

and denial of benefit for computation of Basic Pension to those who retired between November, 2012 and

April, 2015.

We understand that State Bank of India took up the matter with IBA seeking consent to extend the benefit of

additional stagnation increment from a notional date or 01.11.2012 whichever is earlier with a provision to

allow financial benefit from 01.11.2012 i.e. the date of implementation of 10th

BPS/Joint Note. Accordingly SBI

has corrected the date of additional stagnation increment in respect of non-subordinate employees by

extending monetary benefit from 01.11.2012. We also understand that SBI Corporate Centre, Mumbai has

issued a circular on 18.7.2018 under the signature of CGM (HR).

We also understand that Bank of India has corrected the anomaly in respect of Workmen Employees vide

their circular no. HO/HR/IR/MSS:I-242 dated 30.11.2018. It is evident from the circular of Bank of India that

the benefit was extended to all such employees who have ceased to be in the service of the bank from

01.11.2012 to 30.04.2015 and their Basic Pension re-fixed.

Under these circumstances we request you to issue appropriate guide lines to all the member banks who were

parties to the 10th

Bipartite / Joint Note date 25.05.2015 and advise them to extend the benefit to similarly

placed employees and officers. Hard copy of the letter is being sent also by speed post.

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With kind regards,

Yours faithfully,

Suprita Sarkar

General Secretary

*AIBPARC Circular No. 25/19 Date 22.04.2019 on Organisational activities:

Dear Comrades,

Sub: A Brief Roundup of organizational activities after holding of the third Triennial General Body Conference

at Chennai.

Apart from displaying marvelous consolidation of retirees and declaring before the world a firm resolve to sort

out the issues of the retirees in a logical manner within a time bound programme, the third general body

directed the leadership to be quickly on the job for accomplishment of the desire of the membership. Keeping

this responsibility in mind, we have already started taking different issues with Govt. and IBA with a request to

clear the long pending issues. Just to give a few examples, we may mention the issue of stagnation increment

and not allowing notional seniority for 5 years to specialist officers who joined the bank at a higher age.

Members are anxious to know about the developments centering around bipartite talks on wage revision

which obviously include inter alia the resolve of the demands of bank pensioners and retirees. The whole

country is now obsessed with one issue only and that is the high pitched election campaign throughout the

country for formation of the next Lok Sabha. We can reasonably expect that nothing tangible is going to take

place in next 2/3 months. The serving unions/associations and the Retiree organisations will definitely get

some more time in hand for the purpose of brain storming. The delegates and observers attending the 3 rd

Triennial general body have already got the information that CBPRO/AIBPARC and AIBRF are expected to make

mutual exchange of ideas on all the core issues confronting the retirees of the banking sector. Members will

surely appreciate that the organisations must get themselves fully prepared with facts and figures to counter

the arguments of management/Government and should examine each issue in greater details. The relevance

of our demands will definitely get a larger conviction and force after the recent happenings in RBI.

Keeping all such factors in mind, we have entrusted the very important task of making a thorough study of

issues like updation of pension, improvement of family pension, finding any other alternative by which the

exorbitant hike of premium of group mediclaim policy can be reduced to a substantial extent etc. to our

efficient team of office bearers comprising of Com. P.S. Patki, Working President, Com. K. Anand Kumar, Vice

President and Com. K.S. Rengarajan, Jt. General Secretary. Other office bearers stationed at different parts of

the country will also give necessary feed backs and information before finalising the detailed workings. All-out

attempts will be made to give a finer touch to the whole thing by making broad based consultation with

different components of CBPRO and also AIBRF.

This is for the information of the members.

With best wishes,

(SUPRITA SARKAR)

GENERAL SECRETARY

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CBROA News: *Members meeting at Gurgram: (H C Vig, RS, Gurgram)

First meeting of CBROA members of Gurgram held on 05.04.19 at Canara Bank Gurgram Main Branch. . CBROA

Vice President Mr. Umesh Kumar Kumaria, DGS Mr. N Venkat Ramani, AGS Ashwani Kumar Sharma

participated in the meeting. Around 20 members attended the meeting. The chief Manager of the branch

welcomed the seniors and apprised the members the recent development that took place in the Bank. He

sought the help of the seniors for improvement of Business particularly quality advances. DGS of CBOA Mr. R K

Ghambir informed the members about progress made in XI Bipartite so far and assured that Pensioners issues

will be taken up for negotiation with IBA.

Mr. A K Sharma, Mr. Ramani & Mr. Kumaria in their speeches, informed about CBROA & its activities, retirees

demands & process made so far in achieving these demands, XI Biennial conference at Mangalore….etc. They

also informed the members about filing of writ Petition by CBROA in the High Court of Karnataka for updation

of Pension & Creation of Legal Fund to meet the expenses incurred for the same. Members generously

contributed and Rs 8000/- collected on the spot.

Meeting ended with vote of thanks by Mr. P K Jain. Two new members enrolled to CBROA on that occasion.

They are Mr. S K Mittal & Mr. D R Yadav.

*Bimonthly Meeting of members of Aligarh & Hathras City: (Mr. Vidhu Mohan, DGS)

The bimonthly general members joint meeting of Aligarh & Hathras districts was conducted at Main Branch

on 09.04.2019.The meeting started at 5.30 pm. The Dist. President Mr. R. C. Gupta chaired the meeting.

The Regional Secretary, Mr. O. P. Gaur welcomed the members & those new retirees who joined CBROA

recently. The house then greeted the Chief Manager of the branch, Mr. Amit Asthana on his elevation from Sc.

IV to Sc. V and Mr. Arvind Gupta from Sc. III to Sc. IV by garlanding them. The house expressed its gratitude

towards both the persons for their outstanding support to CBROA in conducting meeting and solving any

retirees related problems quickly and promptly.

The DGS in his speech informed the house about the latest developments happening in and around banking

industry. He deliberated on the Triennial Conference of AIBPARC held recently at Chennai where he

represented the CBROA as its delegate. It was informed that as many as 10 activists of CBROA were taken in

the EC of AIBPARC in different important posts. The members who are not Life Members were informed that

from April 2019, the Annual Subscription will be collected @ 500/- p.a. He also gave call to members to bring

Non members to CBROA fold.

M. M. Saraswat informed that other Banks viz. Bank of Baroda are paying 1-1/2% higher rate of interest to

their senior citizen ex-employees. He wanted to know why the same benefit is not extended in Canara Bank.

He assured to provide photocopy of the BOB deposit receipt in support.

Many members raised the issue of charging higher ROI and non-refund of such excess charge amount by the

branches. The DGS assured them to take up the matter at appropriate level.

The members suggested for organizing a picnic. The final decision on it will be taken soon.

There were 27 members present. The meeting concluded with summing up of the discussion and vote of

thanks by Mr. R. C. Gupta.

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*GENERAL MEETING OF OUR MEMBERS AT HYDERABAD on 13.04.2019:

The Meeting was held today at our RSTC, Hyderabad. Sr. Member Mr. Anantham Garu presided over the

meeting. CBROA Vice President, Mr. PVLN Sarma ji & General Secretary Mr. A N Krishna Murthy were on the

Dias. Our AGS Mr. D L Rao welcomed all the members.

Mr. Sarma Garu, the first speaker, while explaining the purpose of the Meeting was to inform the members

that the next CBROA CC Meeting will be held at Hyderabad, and to seek the members help as volunteers to for

making the CC a smooth affair. He gave a brief account of various issues discussed at AIBPARC Conference

held on 30th & 31st March 2019 at Chennai & also about the Writ filed by CBROA at Karnataka High Court at

Bengaluru demanding Updation of Pension.

Mr. A N Krishna Murthy, informed the House about AIBRF joining hands with CBPRO to fight unitedly for

realisation of our issues, IBA Health Insurance, Issues of Updation of Pension & Improvement in Family

Pension are settled. He further informed that AIBOC has taken a stand that they will not sign the settlement

unless retirees issues are solved. In the end he touched about welfare activities of CBROA, creation of Legal

Fund, and filing of Writ petition …etc and requested the members to strengthen CBROA by enrolling Non

members to CBROA. He also clarified the queries raised by members & thanked the Team Hyderabad for

organising the Meeting & expressed confidence that our CC Meeting to be held in July at Hyderabad will be

another success.

Mr. Anantham Sir, while expressing happiness to be present in the Meeting, informed that the Hyd WhatsApp

group is very active, vibrant & disciplined one sharing all the developments very fast, thanked all the members

for their presence & requested them to meet quite often. About 60 members were present. The meeting was

concluded with Vote of Thanks proposed by Mr. D L Rao.

*Honouring of seniors at Mangalore on 17.04.2019:

Wednesday Meeting of 17.04.2019 attended by 38 members. Mr. A Ramesh Shettigar presided. Mr. B M

Shenoy, Mr. B V Pai and Mr. Lakshmikanth Nayak were also on the Dias. Mr. Shettigar informed the house that

today's main agenda is honouring two of our members Mr. A S Hegde and Mr. K S V Shenoy who have

completed 75 years of age. Mr. Lakshmikanth Nayak gave brief bio data of Sri A Subraya Hegde. Mr. M R Bhat

read out the CBROA Citation. Mr. A R Shettigar presented the flower to Sri A S Hegde, Mr. B S Hegde, former

GM, honoured Sri A S Hegde with a shawl. Mr. T G Shenoy presented a memento and Mr. G R Nayak handed

over the Citation. Mr. M V Suresh, Mr. K V C Shenoy & Mr. B V Pai shared their experience while working with

M. Hegde and informed that Mr. Hegde is Gentleman. Mr. Hegde expressed his thanks to CBROA for

facilitating him. Mr. Hegde donated Rs 1500/- to Legal Fund.

Mr. K S V Shenoy, who also joined the meeting at the end, was also felicitated. Mr. L K Nayak read out the

biodata and Mr. M R Bhat read the Citation on behalf of CBROA. Mr. B V Pai felicitated Sri Shenoy with a

flower. Mr. H Sheshgiri Kamath offered Shawl. Mr. T G Shenoy handed over the memento and Mr. R M Prabhu

gave the Citation. Mr. K S V Shenoy thanked CBROA for honouring him.

It was decided in the meeting to go for picnic to Sadhoo Merry Kingdom Amusement Park at Chala Hills near

Kannur Kerala on 6th of May 2019. Mr. T G Shenoy administered oath to all members for exercising their

*Right to Vote* tomorrow (18th April 2019). Mr. B V Pai thanked Lakshmikanth Nayak for sponsoring today's

refreshments. Mr. G R Nayak won the prize today in the draw for lucky member of the meeting.

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*CBROA Membership Position as on 30.04.2019: Number of New Members enrolled during April, 2019 87 The serial number of the last member enrolled on 30

th April, 2019 10123

CANARA BANK News: (CBOA & CBROA wishing New MD & CEO)

*Our new MD & CEO

Canara Bank welcomes our new MD & CEO and wishes him all the very best in his tenure at our bank.

Sri R A Sankara Narayanan took charge as Managing Director and Chief Executive Officer of our Bank on

15.04.2019. He is a postgraduate in Public Administration with MBA in Finance, CAIIB, Post Graduate Diploma

in Project Management, Post Graduate Diploma in Financial Management, Diploma in Treasury, Investment

and Risk Management, DCP and BRM. He carries with him vast knowledge and multi-dimensional banking

experience, spanning over three decades. He joined Bank of India as a Direct Recruit Officer in the year 1983

and headed various Branches, Zones, and National Banking Groups across India and many other Departments

in Corporate Office including Treasury, Retail, and International Banking with Overseas assignments in Tokyo

and Singapore.

As Executive Director of Bank of India from May 2015, he was responsible for Treasury, Corporate Credit,

Recovery, Risk Management, Compliance apart from International Banking, Retail, HR, IT, Planning, Finance

etc. He has represented BOI in various Boards - including P T. Bank of India Indonesia Tbk, Bank of India-

Tanzania, Commonwealth Finance Corporation Ltd (CFCL Hongkong), BOI New Zealand Ltd, BOI Shareholding,

SUD Life Insurance. Before joining our Bank he was Managing Director & Chief Executive Officer of Vijaya Bank

from September 2017. (MD& CEO’s Secretariat, HO)

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Photo Gallery:

CBOA Congratulating ED on the occasion of crossing 10lkh crore business Mr R C Wali, AGS of CBROA honoured by STC recently.

Gurgram meeting 5.4.19: Discussion with members. Welcoming New Member at Gurgram meeting.

Gurgram meeting: welcoming new member.

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CBROA Members meeting held C O Bhubaneswar on 07.04.19 DGS Mr. Pattanayak welcoming New Member

Aligarh & Hathras members meeting on 7.4.19 at Aligarh Main Br. DGS Mr. Vidhu Mohan addressing gathering.

Aligarh meeting: Welcoming New members.

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CBROA VP Mr Sarma ji & GS Mr Murthy on Dias at Hyderabad 13.04.19 Mr. Sarma ji addressing gathering.

View of gathering at Hyderabad. One view of members at Hyderabad meeting.

17.04.19 Mangaloe meeting: Honouring of Mr Hegde. Mangalore members meeting

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Taking pledge to Vote by Mangalore members. Mr T G Shenoy explaining members why we have to vote.

Above 4 snaps: Workshop held on 21.04.2019 at Kolkata on Will and Nomination: About 50 members attended the

meeting. After the keynote address by our beloved General Manager, Sri Shyamalendu Saha, there was a fruitful deliberation by Mr.

M. C. Dey and Mr. Shyamal Ghosh, both ex faculty of RSTC, Kolkata. We congratulate our members for their active participation and

made the programme a grand success.

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Members meeting at Ahmedabad 0n 21.4.19: leaders on Dias. Members who attended Ahmedbad meeting.

Mr Ganesan, D G M RO, Coimbatore is being welcomed to CBROA by Madam Sudha Kalyana Sundaram & her team.

Mr A L N Reddy, DGM of CO Mumbai retired on 30.04.19. Mumbai team

honoured him & welcomed him to CBROA

Mr. Lal Chand, CM, RAH retired on 30.4.19. Gurgram CBROA team

felicitated him & welcomed him to CBROA

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Mr N Ravi, AGM RAH Pune retired on 304.19. He is being welcomed to

CBROA

Mr Thirugnanam, ManagerrViliapakkam br retired on 30.04.19.

Vellore CBROA activists Mrs Sumathi & Mr Gnansundarm welcoming

him to CBROA.

R S Trichy Vishranthi Programmed on 5.4.19: Addressed by AGS Manoharan. He informed prospective retirees about CBROA & its activities.

Progamme was attnded by Madam Umamaheshwari, DM, Ro Trichy, Mr Nawaz, CM , Turaiyur , RSTC In charge Mr Kanakarathinam. CBROA RS Mr

Rajagopal & Mr Arumugam also attended.

CM, Hassan Br Mr. Dada Peer retired on 30.4.19 & he is being

welcomed to CBROA

Mr. Manoharan & his team welcoming Mr. K Subburaj, Manager , CO,

Madurai to CBROA.

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CBROA Madurai Team welcoming Sri Subbaiah, Mgr, CO, Madurai to

CBROA.

Mr. C Mani, Manager, Grand Central retired on 30.4.19. Madurai team

welcoming him to CBROA

Tirunelveli Region: CBROA CC Member Mr. Varagunan & RS Anandaraj & team met retirees of 30

th April 2019 wished them & welcomed them to

CBROA. Mr. Muthusamy CM of Vadasery br, Madam Anne Rose, Kanyakumari Br & Mr. Umyakumar St Ritas College, Nagerkoil retired on 30.4.19.

DGS Mr. A R Rakshit & CBROA Team Kolkata welcoming Mr. Subhas

Mitra & P K Singha to CBROA

CBROA Kolkata team welcoming Mrs Minakshi Sarkar Ghariahat br to

CBROA on 30.4.19.

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Mr. Chapal Banerjee of RO Kolkata is being welcomed to CBROA by

Team Kolkata.

Mr. Nandan Ghosh, CM Salt Lake Br is being welcomed to CBROA by

Kolkata Team lead by Mr Rakshit.

Mr. Debasis Chakraborthy of Clearing section Kolkata retired on 30.4.19.

Kolkata team welcomed him to CBROA

Mr. A K Verma, General Manager of Canara bank (on deputation to

UBI) retired on 30.4.19. Mr. Rakshit & his team met him in his cabin &

wished him. Membership also obtained.

*ORDER PASSED BY THE ASSISTANT LABOUR COMMISSIONER, AJMER TO PAY HIGHER

QUANTUM OF GRATUITY. In a case filed by Sri. Shyam Sunder Sharma, a retired Officer of Central Bank of India against the Management

of Central Bank of India, before the Assistant Labour Commissioner, The Controlling Authority under Payment

of Gratuity Act,1972, the ALC has passed an order that the Bank has adopted wrong method in calculating

Gratuity and has directed the General Manager, HR, Central Bank of India to pay the differential Gratuity of

Rs.6,41,661/- along with interest at 10% p.a with effect from 01.07.2007 to the date of payment. This is a

landmark judgment which is in total conformity with the orders passed by the DLC, Hyderabad, DLC, Ranchi,

DLC Jabalpur and DLC Silchar.

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Our Members are aware of the fact that Gratuity as per Payment of Gratuity Act 1972, is calculated by taking

into account the “Wages” which includes Basic Pay, Allowances Ranking for Provident Fund, Dearness

Allowance etc. The formula adopted is 15/26XWagesXNo.of years of service, here wages includes basic pay,

allowances and DA and the amount so calculated or the ceiling of Rs.3.50 lakh or Rs.10 lakh or Rs.20 lakh as

the case may be is the eligible amount of Gratuity.

But in case of Gratuity as per Service Regulations, upto 30 years of Service, the employee shall be eligible for

one month’s pay for every completed year of service, subject to a maximum of 15 months’ pay. Where an

Officer has completed 30 years of service, he shall be eligible by way of gratuity for an additional amount at

the rate of ‘one half of a month’s pay’ for each completed year of service beyond 30 years. Here, “Pay” means

Basic Pay plus Allowances ranking for Provident Fund including stagnation increments. The crux of the issue

raised by the Appellant was that the Bank has not taken into consideration the DA component into wages

while calculating the Gratuity under Service Regulations. The Appellant had also contended that the Bank had

paid gratuity at 15 days’ wages instead of 45 days’ wages.

Upholding the arguments of the Appellant the Assistant Labour Commissioner and also the Controlling

Authority under Gratuity Act 1972, averred that “ Pay includes dearness Allowance as it exists as classification

in the definition of “Salary” which has a direct nexus/relation with “Emoluments” and “Pay.” He further

averred that the provision relating to grant of Gratuity is a beneficiary provision. It must be considered on the

anvil of benefit rule of construction. It is trite law that in the matter of Welfare Legislation, especially involving

the work force, the terms of contract and the provisions of law should be liberally constructed in favour of the

weak. In view of these facts DA should also be included while calculating Gratuity under the Regulations.

With regard to additional amount of gratuity payable at “one half of a month’s pay” the ALC has averred that,

Gratuity payable to an Officer shall be one month’s pay for every completed year of service. That means he

will be eligible for one month’s pay towards gratuity for every completed year of service even beyond 30 years

too. But when the Officer has completed 30 years of service, he shall be eligible by way of Gratuity for an

additional amount at the rate of “one half of month’s pay’ for each completed year of service beyond 30

years.

The makers of Regulation had good intention to give additional gratuity for the service rendered beyond 30

years. Because for the first 30 years it is one month’s pay, then it cannot be “one half of a month’s” pay for the

service beyond 30 years. The makers of Regulation wanted to give additional benefit of gratuity to the

employee who had rendered service of more than 30 years. Hence, it is 45 days’ Gratuity for every completed

year of service beyond 30 years of service. Thus the Appellant was eligible for payment of additional gratuity

of Rs.6,44,661/- plus interest at 10% p.a from 01.07.2007.

We have taken up the issue with our Management quoting the above judgment and other related judgments

passed by various courts across the country and have demanded payment of differential gratuity to all the

retired Officers employees taking into consideration the above cogent arguments.

We are awaiting the response of the Management. Till such time we request our members to have patience

and keep on hold submitting a representation to the Management urging upon them to pay the differential

gratuity in the background of the above judgment.

17

Other Banking News:

*12 people lose Rs 10 lakh after using ATMs in east Delhi:

NEW DELHI: A dozen people holding accounts in different banks in east Delhi lost almost Rs 10 lakh in a

suspected skimming attack after having swiped their cards in ATMs near Laxmi Nagar in the past week. In their

complaints, the victims claimed that money from their accounts was withdrawn from ATMs in Noida and east

Delhi without their knowledge, mostly in large amounts. These were withdrawn at one go before the cards

could be blocked.

*Banks close FY19 with 13.24% credit growth, deposits up 10.03%: Banks closed fiscal 2019 with robust disbursals that rose in double-digits for the second year in row, after the

sub-5 percent in FY17, which was the lowest in five decades. According to the Reserve Bank data released

Thursday, bank credit rose 13.24 percent to Rs 97.67 lakh crore for the fortnight to March 29, while deposits

grew by 10.03 percent to Rs 125.72 lakh crore during the same period. This is the second consecutive double-

digits credit growth after the same had declined to 4.54 percent in FY17 at Rs 78.41 lakh crore, which was the

lowest since 1963.

In the year-ago fortnight, deposits were at Rs 114.26 lakh crore and advances at Rs 86.25 lakh crore, according

to the RBI data. In FY17, aggregate deposits in the banking system grew a mere 6.7 percent in 2017-18, while

credit grew still lower at 4.54 percent, the lowest since fiscal 1963. Bank deposit growth fell to a five-decade

low in year to March 2017 as demonetisation bonanza withered. It can be noted that during November-

December 2016, banks received Rs a whopping 15.28 lakh crore as people deposited high denomination

currency notes that were withdrawn from circulation on November 8. As a result, aggregate deposits in the

fiscal ended March 2017 grew 15.8 percent to Rs 108 lakh crore. In the previous fortnight to March 15, 2019

credit demand had grown by 14.46 per cent to Rs 95.53 lakh crore while deposits increased by 10.03 per cent

to Rs 122.26 lakh crore, show RBI data. On a year-on-year basis, non-food bank credit increased by 13.2

percent in February 2019 as compared with an increase of 9.8 percent in the year-ago period. Loans to the

services sector almost doubled with a 23.7 percent growth in February compared to 14.2 percent in the same

month last year.

Advances to agriculture and allied activities increased by 7.5 percent in February compared to an increase of 9

percent in February 2018. Credit to the industry rose by 5.6 percent in February, up from an increase of 1

percent in February 2018. Credit to the infrastructure, chemical and chemical products, and all engineering

sectors accelerated. However, credit growth to basic metal & metal products, textiles, and food processing

decelerated/contracted. Personal loans rose 16.7 percent in February down from 20.4 percent in February

2018. (By: PTI | Published: April 11, 2019 8:18 PM / F E)

*5G for banking! RBI preparing to adopt fifth generation technology:

The Institute for Development and Research in Banking Technology (IDRBT), an arm of the Reserve Bank of

India, has set up 5G use cases lab for the banking and financial segment. The use of 5G will change a range of

technologies and applications, including point of sale (PoS) machines in the banking sector, which are

currently using 2G and are in the process of being phased out.

“The Department of Telecommunication is collaborating with other departments for better preparedness and

adoption of 5G technology. This is a soft launch. We have all ideas and plans in place. Actual work will begin

very soon once we have equipment and other modalities ready,” AS Ramasastri, director of IDRBT, said,

adding that banks need to adopt 5G-enabled network. (By: FE Bureau | Published: April 13, 2019 6:50 AM)

18

*Banks Board Bureau identifies 75 senior officers for leadership roles in PSBs: It has made a case for giving a complete autonomy to banks to decide organisational structure for better

efficiency. The Banks Board Bureau (BBB), the apex body for selection of whole-time directors of state-owned

lenders, has identified 75 senior management personnel of public sector lenders to take over leadership role

in the future. From a pool of 450 senior management personnel across nationalised banks, an inaugural batch

of around 75 personnel has been identified this year to help nationalised banks take on the current and

emerging challenges as well as help create a leadership pipeline, BBB said in its activity report for the October

2018-March 2019 period.

“They are presently undergoing deeper assessments after which individual development plans will be

generated. Shortly, a globally ranked Indian institution will be identified where every year the identified

personnel will undergo intensive leadership development journey,” it said. It has made a case for giving a

complete autonomy to banks to decide organisational structure for better efficiency. BBB, headed by former

Department of Personnel and Training secretary B P Sharma, also suggested revamping credit governance

architecture in nationalised banks to reinforce efforts to minimise credit costs and enhance efficiency of credit

allocation.

“Incentivise maximisation of risk-adjusted income and disincentivise operational inefficiencies by aligning

compensation with right performance metrics through the introduction of performance-based compensation

through Employee Stock Option Scheme, which is different from Employee Share Purchase Scheme, and

Performance Linked Incentives,” the report said. It further said the Bureau was assigned with the task of

recommending personnel for appointment as directors in government-owned insurance companies. In this

regard, on January 4 this year, it made its recommendations for appointment of chairman and managing

directors of LIC.

Prime Minister Narendra Modi in 2016 approved the constitution of the BBB as a body of eminent

professionals and officials to make recommendations for appointment of whole-time directors as well as non-

executive chairmen of PSBs. It was also given the task of engaging with the board of directors of all the public

sector banks to formulate appropriate strategies for their growth and development.

Besides, it was also asked to frame strategy discussion on consolidation based on the requirement. The

government wanted to encourage bank boards to restructure their business strategy and also suggest way

forward for their consolidation and merger with other banks. (Business Line, April 19, 2019)

*RBI says no direction issued for 5-day working in commercial banks: The Reserve Bank of India (RBI) said Saturday it has not issued any direction with regard to a five-day a week

working for commercial banks. “It has been reported in certain sections of the media that commercial banks

would have a 5-day week in terms of RBI instructions. It is clarified that this information is not factually

correct,” the RBI said in a release. The RBI has not issued any such directions, it said. Currently, branches of

commercial banks observe holiday only on second and fourth Saturday of a month apart from Sunday.

Remaining Saturdays are a full working hour for banks. (By: PTI | Published: April 20, 2019 9:26:21 PM)

*RBI gets SC ultimatum on RTI Act disclosures: The Supreme Court on Friday ordered the Reserve Bank of India to disclose its annual inspection reports of

banks, along with the list of willful defaulters and information related to them under the Right to Information

19

Act. The RBI is “duty bound under the law" to disclose information sought under the RTI Act, it said. The apex

court also ordered the RBI to “withdraw its disclosure policy", which it said is in violation of an order passed by

the court in 2015 directing the central bank to disclose information under the provisions of the RTI Act.

It gave the RBI “one last opportunity" to comply with the orders. “Any further violation shall be viewed

seriously," said the bench comprising Justices L. Nageswara Rao and M.R. Shah, who warned that the central

bank could face contempt proceedings if it failed to furnish the information.

Friday’s order is part of long-running attempts to extract financial information in the backdrop of mounting

bad debts at banks, with the RBI resisting such attempts and bankers worrying about the potential impact on

financial stability. (4 min read. Updated: 26 Apr 2019, 11:19 PM IST)

*Talks on round 2 of PSU Banks' merger soon: The government is soon likely to invite select lenders for discussion on a second round of merger in Public

Sector Banks, according to a Finance Ministry official. The lenders to be called may include Punjab National

Bank, Union Bank of India and Bank of India. “We wouldn’t like to wait for too long,” said the official,

indicating that some merger activity is on the cards around second or third quarter of the current fiscal year.

“If the banks are not able to give options then the Alternate Mechanism (AM) group can make suggestions.”

(ET dt.30.04.19 P.14)

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