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Editorial

• Golden Jubilee Celebration of Bank Nationalisation

Our Bank

• Canara Bank announced Quarterly Results for June 2019 quarter

CBOA News

• Canara Bank Officers’ Association and Canpal targeting recover overdue amounting to Rs.3,200 crores in 6 months

AIBOC / AINBOF / UFBU News

• UFBU Delegation Calls On The Union Finance Minister And Submitted A Memorandum On The Expeditious Wage Revision And Resolution Of Pensioners’ Issues.

• Golden Jubilee Celebration Of Bank Nationalisation Day : Cboa And AINBOF Celebrate The Day As Promise To Our Patrons (Pop).

• AINBOF Circular No. GS / Jul / 2019 /013 Dated 05.07.2019 - Cabinet Approves

Code On Wage Bill : Role Of Trade Unions Now.

AIBPARC / CBPRO News

• IBA’s Medical Insurance Scheme Retirees

• Golden Jubilee Year of Bank Nationalisation

• Improvement in Family Pension and Updation of Pension in Banks – A fervent appeal to Hon Minister for Finance, Smt. Nirmala Sitaraman

Dearness Relief to Bank Pensioners w.e.f. August 2019

CBROA/News Bulletin/Aug 2019 Date : 01.08.2019

At a Glance Click the link to read the article

Click Back to Top link on the bottom to come to this page

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

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CBROA Activities / meetings

• Dr. S T Ramachandra, former General Manager of our Bank and our member, nominated as a member, Syndicate of the University of Mysore.

• Smt Salekoppa L Kanyakumari (Smt S L Kanyakumari) will participate in World Masters Badminton Championship in Poland.

• Rally on 22.07.2019 at Tiruvanthapuram to commemorate the Bank Nationalisation Day

• Dharna on 20th July, 2019 at Coimbatore

• Central Committee Meeting at Hyderabad on 13th & 14th July, 2019

• Meeting of members at o Shivamogga on 23.07.2019 o Indore on 24.07.2019 o Bhopal on 25.07.2019 o Aligharh on 26.07.2019 o Ghaziabad on 28.07.2019 o Delhi on 29.07.2019

• Mangalore unit arranges Picnic and Vanamahotsava on 28.07.2019

• Social activities conducted at Vijayawada

Banking News / Developments

• RBI Governor meets Public Sector Bank heads, reiterates call for transmission

• MSME bad loans ratio remains high at 10.8% in the March 2019 quarter

• NPA Crisis : Loan write offs by Banks cross Rs.2 lakh crores

• Banks’ bad loans down at Rs.9.34 lakh crores at FY 2019 end

• ATM Transaction charges for other bank ATMs likely to change : RBI sets up review panel

• State Bank of India has been caught lying about its profits for three years

• RBI imposes Rs.7 crore fine on State Bank of India for violation of various regulatory guidelines.

• Allahabad Bank repots Rs.688.27 crores fraud

• Punjab National Bank hit by another fraud of Rs.3,800 crores.

• IL&FS hosted top executive of Credit Agency, Brickwork Agency, got high ratings

• Government rules out reintroduction of old pension scheme

• Central Vigilance Commission (CVC) tells ministries to take action against corrupt bureaucrats before they retire. 25 officials from State Bank of India, Canara Bank, Punjab National Bank, other Banks under scanner.

Photo Gallery

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Dear Friends,

GOLDEN JUBILEE CELEBRATION OF BANK NATIONALISATION.

India celebrated the 50 Years of Bank

Nationalisation on 19th July of this year. There

were panel discussions on the electronic media

over the successes and failures of the epoch

making financial exercise that began on the

midnight of July 19, 1969. It started under the

then Prime Minister of India with nationalization

of 14 major commercial banks that accounted

for 85 per cent of bank deposits in the country

at that time. Six more banks were nationalized

in 1980. The core objective of nationalization

was to energise priority sectors at a time when

the large businesses were dominating the credit

portfolios. Thanks to the relentless struggle

waged by millions of Bank employees over the

years, for nationalization of the Banking Sector

which lead to Government’s decision to

nationalize the major commercial Banks. This

struggle was supported by the law makers, the

academia, economists who championed the

cause of the poor, the agriculturists, the down

trodden, the small business enterprises, the

hitherto neglected sectors of the economy. The

struggle was motivated by the need to seize

control of the nation’s savings for allocation to

priority sectors of the economy from the big

business houses of the country who, had taken

control of the Banking sector in the post-

independence period. The country was in a

desperate situation to align its resources

towards a systematic and planned economic

development of the country. The purpose of

nationalization was to ensure equitable flow of

credit to every sector of the economy to avoid

lopsided growth.

Commercial Banks belonged to private business

houses those times. Since these commercial

banks were run by business houses, they failed

in helping the Government in many ways.

Nationalisation of the Banks, preceded by

taking over of Imperial Bank of India and

renamed as State Bank of India in 1955, and

nationalization of 6 state associated Banks,

through the State Bank of India (Subsidiaries)

Act 1959 followed by a second phase of

nationalization in 1980, brought the public

confidence in the Banking system of India. With

this 80% of the Banking Sector came under the

public/government ownership. After

nationalization of the Banks, the branches of

the public sector banks were opened in the

hitherto unbanked regions, reaching even the

remotest parts of the country, deposits rose to

approximately 800 per cent, and advances took

a huge jump by 11,000 per cent. Government

ownership gave the public implicit faith and

immense confidence in the sustainability of

Public Sector Banks. By 2013 the Indian Banking

Industry employed, 11,75,149 employees and

had a total of 1,09,811 inn2013 which increased

to 1,41,756 in 2019 branches in India and 171

branches abroad, aggregate deposits stood at

Rs.67,504.54 billion and Bank credit of

Rs.52,604.59 billion. The net profit of the Banks

operating in India was Rs.1,027.51 billion

against a turn-over ofRs.9,148.59 billion for

the financial year 2012-13.Population per

Branch declined to 14,000, Deposit as

percentage to GNP improved to 79%, per capita

deposit stood at Rs.56,380/-, per capita credit

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stood at Rs.44,078/-, Credit-Deposit Ratio

improved from 63% to 79%. The rise in the share

of rural and semi-urban branches was reflected

in the steady increase of the contribution of

rural and semi-urban areas in aggregate

deposits and credit. The share of rural and semi-

urban branches varied from 58.4% to 77.2% in

1990 and to 62.89% in 2019. The total network

of rural and semi-urban branches stood at

89,144 in March 2019 compared to 4,781 in 1969

and 46,128 in 1990. More significantly, the

credit deposit ratio of rural branches touched

65% as against the ideal parameter of 60% set

for the Banking Industry as a whole. It was not

only rural credit, there was an upsurge in small

borrower accounts. In addition, 1.26 lakh Bank

Mitras (Business Correspondents) provide

branchless banking service in villages. The

commitment to spread banking began with the

introduction of the Lead Bank Scheme in 1969

(LBS) and State Level Bankers’ Committee

(SBCs), District Credit Plans, Priority sector

Lending Norms in 1974, branch expansion policy

and the formation of Regional Rural Banks in

1975. These tools speeded up the outreach of

Banks to transform the village economy by

adopting them for integrated development.

Beyond providing banking services, Public

Sector Banks played a crucial role of

coordinating with state, district, tehsil and

block-level units of the Government and District

Industrial Centres and facilitated in

implementing Welfare Schemes. Public Sector

Banks served as a conduit to disburse subsidies,

implemented Government Sponsored Schemes

for integrated rural development, routed

interest subventions, facilitated debt-waiver

schemes and fulfilled mandatory lending norms.

The combined impact improved the economic

conditions of rural enterprises.

In the wake of the Banking Sector reforms

introduced in the year 1991, Public Sector Banks

adopted international prudential and capital

adequacy standards in line with Basel

framework, set out from time to time,

integrated risk management systems, business

process re-engineering, reorganization of

administrative structures, better systemic

controls, higher compliance standards and

better HR Management strategies.

In the earlier stages of nationalization, share of

unorganized credit fell sharply and the economy

seemed to come out of the low level of

equilibrium trap. In the process the flip side of

social commitment led to inefficiency and poor

customer service in some PSBs, taking away the

competitive edge. The administered interest

rates and the burden of directed lending

constrained their autonomy to operate on

commercial lines. The mandatory expansion of

branches in unbanked centres with low business

potentiality impacted the working of Public

Sector Banks. With little latitude to decide

business mix, profitability took a back seat.

PSBs struggling to work under the doctrine of

dual regulation suffered from poor governance,

Board of Directors of PSBs are appointed by the

Government with no freedom to review their

performance and competency. The expertise

with such independent directors rarely passed

on to Bank Management. As a result of poor

board oversight and the ability of large

borrowers to influence certain decisions, Public

Sector Banks accumulated huge Non-Performing

Assets (NPAs). They had to bear the brunt of

holding close to 90% of stock of bad loans,

further impinging upon their profitability.

In the aftermath of Banking Sector reforms,

there was a virtual expansion of credit. So in the

initial stages of liberalization, the initial

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benchmark of a reduction in NPA ratio and

increase in capital adequacy ratio was replaced

by a mad race for credit expansion giving a go

bye to the accepted principles of credit

Management. Such reckless expansion in both

corporate and personal sector including housing

finance, did partially insulate the Indian

economy but the story of decline of the system

was invisibly written in such reckless,

adventurous credit expansion which finally

exploded in so many big ticket defaults in the

post 2014 period. Such large scale default by big

corporate borrowers because of policy induced

credit expansion and failure to have an efficient

recovery mechanism despite of enactment of

Indian Bankruptcy Code and setting up of a

powerful National Company Law Tribunal,

(NCLT), leads to the clamour for providing

additional equity for Public Sector Banks. The

Government has been providing capital

infusion, it is too meager and the Government

is bogged down by its own fiscal responsibility

and budgetary management and this is blocking

provision of adequate capital from budgetary

resources. In this background the Government

has found an easy solution to privatise Public

Sector Banks because of the paucity of fiscal

resources and the alternative mechanism is

bank consolidation through merger and

amalgamation of Public Sector Banks. Firstly the

Associate Banks of SBI were merged with SBI

followed by merger of Vijaya Bank and Dena

Bank with Bank of Baroda, for the failure of the

government to provide adequate equity support

to tide over a crisis created by the policy

makers. This is done with an assumption that

“Too Big to Fail.” The reason for mergers/

amalgamation is on the assumption that size

would increase efficiency through more

efficient scale, better organization, increased

scope, improved product mix and downsizing of

labour force, which is not supported by any

empirical evidence.

Despite triumphs and tribulations, the move to

nationalize banks aided by banking sector

reforms, has greatly contributed in the robust

growth of banking outreach, more importantly

in the hinterland, benefitting the people at the

bottom of the pyramid. Focus on financial

inclusion guiding banks to adopt a specific three

year outreach policy since 2010 took aggressive

form in 2014 after the implementation of the

Pradhan Mantri Jan Dhan Yojana. The combined

synergy lead to massive connect of the banking

system with the people. Effectively, 80% of

adults aged 15-plus have a bank account- a

great achievement by any standard. Of the 36

crore new Savings Bank Deposit Accounts

opened under PMJDY till May 2019, PSBs

accounted for 96.6%, reflecting their role in

social transformation. The challenges of Bank

reforms, did not dither the spirit of bank

nationalization and PSBs continue to serve the

masses even, at times, at the cost of losing

competitive edge.

As India celebrates the Golden Jubilee of Bank

Nationalisation, the purpose still holds relevant,

more so when growth aspirations are high, India

aims to be a US $ 5 trillion economy, and the

Banking Sector increasingly needs to stay

committed to serve the masses.

We wish all our members and the members of

their family, the best of health, happiness, joy

and peace of mind for all the time to come.

Yours Sincerely,

A N Krishna Murthy General Secretary

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CANARA BANK ANNOUNCES QUARTERLY RESULT FOR JUNE QUARTER 2019

Deposits Rs.6,10,674 crores

Advances Rs.4,49,290 crores

Total Business Rs.10,59,964 crores

Operating Profit Rs.2,440 crores

Net Profit Rs.329.07 crores

Net profit rose by 17% year-on-year on the back

of lower provision and improved asset quality.

Gross Non-performing Assets (NPAs), as a

percentage of Total Advances, were reduced to

8.77% in June Quarter compared with 11.05% in

the March Quarter and 13% in the year-ago

period. Gross NPA stood at Rs.39,399 crore.

Provisions during the quarter fell by 26.46% to

Rs.1,899.13 crore as against Rs.2,582.30 crore

in the year-ago quarter. In the Jan-March

Quarter the Bank had set aside Rs.5,523.50

crore.

Net Interest Income decreased by 16.54% to

Rs.3,240.61 from Rs.3,882.90 crore in the

corresponding period of last year and stood at

2.29%

Post-provision, the Net NPA reduced from

6.91% in March Quarter 2019 to 5.35% in June

Quarter 2019.

Total Number of Employees 57,449

Branch Network 6,323, ATM Strength 8,837

CANARA BANK OFFICERS’ ASSOCIATION AND CANPAL TARGETTING TO

RECOVER OVERDUE LOANS AMOUNTING TO Rs.3,200 CRORE IN 6 MONTHS.

CBOA and CANPAL (A Voluntary Association of

Officers of Canara Bank) have embarked on a

loan recovery drive as 2019 marks the Golden

Jubilee year of Banks’ Nationalisation as well

as the Triennial Conference of the Association.

Sri. G V Manimaran, General Secretary, CBOA

has informed that the objective is to recover a

minimum of Rs.3,200 crore (10 per cent) of the

total outstanding of Rs.32,000 crore in six

months and enhance the Bank’s bottom line.

The CANPALS have started meeting up with

loan defaulters in order to persuade them to

repay their dues after explaining the process.

They are, besides

meeting the Defaulters, sensitizing the family

members as well about the dues to the Bank.

This exercise is being carried out by CBOA

members and CANPALS after office hours and

OUR BANK

CBOA NEWS

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on holidays as a payback gesture to the Bank.

A Large number of Retired Officers have also

joined hands with CBOA in this Campaign. The

Association has within two days of launching

the campaign has recovered Rs.6 crore. The

recovery drive recorded sale of property

through e-auction for the first time in Jammu

& Kashmir. The Bank managed to recover

Rs.72.90 lakh from the sale of the said

property.

UFBU DELEGATION CALLS ON THE UNION FINANCE MINISTER AND

SUBMITTED A MEMORANDUM ON THE EXPEDITIOUS WAGE REVISION

AND RESOLUTION OF PENSIONERS’

ISSUES.

The Convener of UFBU Sri Sanjeev Kumar

Bandlish and the Leaders of the Constituents of

UFBU, including Sri. C H Venkatachalam, called

on the Union Finance Minister and submitted a

memorandum urging upon her the need to

conclude the XI Bipartite Wage negotiations for

the Bank employees and Officers at an early

date. The team reiterated the demand for

negotiation covering all the Scales in respect of

Officers and the IBA should be advised to hold

the negotiations on a continuous basis.

GOLDEN JUBILEE CELEBRATION OF

BANK NATIONALISATION DAY : CBOA AND AINBOF CELEBRATE THE

DAY AS PROMISE TO OUR PATRONS

(POP).

Canara Bank Officers’ Association jointly with

AINBOF had organized a meeting of Members

at Chennai to celebrate Golden Jubilee of Bank

Nationalisation on 19th July,2019. A large

number of our customers attended the

celebration. The day was celebrated as

Promise to our Patrons, where the members of

AINBOF took a pledge that, they would extend

friendly and courteous customer service,

keeping customer interest paramount, they

would try to maximize customers’ delight, they

would endeavour to solve the problems to the

optimum satisfaction of our customers, they

would be proud of their work and conduct

themselves professionally, they would deal

with the customers in a transparent and

unambiguous manner, they would continue to

provide banking services to the masses and

they would give priority to social objective and

strive to retain the Public Sector Status of our

Institution.

The gathering was addressed by Sri. T N

Manoharan, Chairman, Canara Bank, who

lauded the initiative of CBOA in organizing the

Celebration in a meaningful manner. Sri. Abdul

Azeez, General Manager, Canara Bank, Circle

Office, Chennai also addressed the gathering.

Sri G V Manimaran, General Secretary, AINBOF

and CBOA welcomed and administered the

pledge which promises the customers the best

service, to all the Officers of nationalized

banks. Sri. P Rajendran, Vice Chairman,

AINBOF proposed vote of thanks.

AIBOC / AINBOF / UFBU NEWS

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Similar programmes were held at Bangalore,

Mangalore, Mumbai, Pune, Hyderbad, Kolkatta,

Patna, Trivendrum, Coimbatore, Ahmedabad,

Delhi, Bhopal, Patna, Lucknow, Chandigarh,

Bhubaneshwar, Vijayawada etc.

AINBOF CIRCULARNO. GS / JUL /

2019 /013 DATED 05.07.2019 -

CABINET APPROVES CODE ON WAGE

BILL : ROLE OF TRADE UNIONS

NOW.

Recently Code on Wage Bill has been approved

by the Cabinet Committee and expected to be

passed by both the houses of Parliament

shortly. The Bill advocates a national minimum

wage below which even the State Governments

cannot fix their wages.

Since introduction of the bill in Lok Sabha in

2017, AINBOF has been strongly advocating for

the minimum wages principle adopted in the

Bill as it envisages fixing salary based on that

formula only.

Considering the previous Bipartite

Settlements, taking into account the past

experience during the negotiations and also

the losses posted by the Banking system. It was

decided by the four Officers’ organizations that

wage revision for Bank Officers should not be

based on the profit or paying capacity of the

institution as this has led to limited to increase

in the Salary Structure of the Bank Officers.

While searching for a viable alternative

formula for wage revision, we came across the

Minimum Wages Resolution by International

Labour Organisation in 1970, the crux of which

is ensuring Minimum Wages for Workers and

these resolutions have been adopted by more

than 80% of the member countries.

The main objective of this is that, “Every

employee must be given basic wages for him

and his family to lead a decent life, matching

to the status being enjoyed in the respective

institution, without linking to the profit and

paying capacity.”

Incidentally it was also observed that the above

norms were adopted by the Seventh Pay

Commission while revising the Salary Structure

of Central Government Employees. The

Commission’s recommendations were

accepted by Central Government in 2016 itself.

Thus AINBOF had suggested to AIBOC at the

time of preparation of Charter of Demands to

follow the above Minimum Wages principle

while seeking the wage revision as this method

was perceived as a solution to bridge the huge

gap in Salary and ensure the pay parity with

that of the Grade A Officers of Central

Government.

Accordingly, on this the Charter of Demands

was prepared by AIBOC and other Officers’

Organisations incorporating the Minimum

Wages Policy and the same was submitted to

IBA also.

But till date the negotiations have not

happened on these lines and IBA commenced

its offer with a measly 2 percentage increase,

In the last two or so years, the initial offer of

2% has increased to 10% and rumours are

around that they are prepared settle at around

12%.

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AINBOF was insisting for wage revision based on

Minimum Wages Principle and not on

percentage basis in order to bridge the huge

gap in salary and to ensure the pay parity with

that of the Grade A Officers in Central

Government.

Now the passage of this Code on Wages Bill in

both the houses will pave the way for

implementation of Salary based on minimum

Wages principles.

Next step now is that the demands of the trade

unions shall be as below and the detailed

justifications for these demands are given in

the annexure.

1.Settlement of wage revision based on

Minimum Wages principles as incorporated in

Charter of Demands.

2. Unconditional Mandate upto Scale VII.

3.Running scale of Pay.

4.Updation of Pay.

The above should be our objective to fight

for better wages and working conditions. If

we believe that these genuine demands

would be achieved by somebody, then you

are doomed.

Believe in you that you must work for these

and THEN ONLY YOU ARE DESERVING SUCH

BETTER CONDITIONS.

AIBPARC CIRCULAR NO.49/2019

DATED 19.07.2019 : IBA’S MEDICAL

INSURANCE SCHEME FOR RETIREES

The Convener, UFBU The General Secretaries, Constituents of UFBU

IBA’S MEDICAL INSURANCE SCHEME FOR

RETIREES

As you are aware, the Department of Financial

Services, Ministry of Finance, Govt of India

advised IBA vide its communication dated 24th

February 2012 to evolve a Medical Insurance

Scheme for serving and retired employees of

the Banks. IBA in turn put up this proposal as

management issue before UBFU at the time of

wage negotiations which concluded in

April/May 2015. As a result a new medical

insurance scheme got introduced both for

serving employees and also for the retired

employees with effect from October 2015 for

serving employees and November 2015 for

retired employees. After introduction of IBA’s

Medical Insurance Scheme during the year 2015

there has been multi fold increase in the

premium thereby compelling many of the

AIBPARC / CBPRO NEWS

Strengthen

CBROA Legal Fund

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retirees to opt out of this scheme for the

reasons of un-affordability, more particularly

those who are family pensioners drawing as low

as Rs.4000 per month pension. The entire

amount of annual pension in such cases would

not be sufficient to meet out the medical

insurance premium. The sky rocketing

premium has robed many pensioners of the

benefit under IBA policy which has been

otherwise largely helpful to the retirees. Such

situation calls for the improvements/

modifications in the scheme for retired

employees. It is with this view in mind the

following suggestions are made for kind

consideration:

Since Government communication dated

24.02.2012 did not envisage payment of

medical insurance by the retirees, it should be

borne by the Bank as in the case of serving

employees. It is pertinent to mention that the

Executive Directors/Managing Directors/

Chairman and Managing Directors are extended

the benefit of medical expenses

reimbursement even after retirement without

any charge to them as they were entitled

during their service. It is therefore

discriminatory on the part of the Banks to

create a class within the class with regard to

extension of medical benefit facility to retired

bank employees vis-à-vis the top retired

functionaries of the Bank on one side and the

serving employees on the other side. There is

an urgent need to improve this unfair practice

of treating retired bank employees with

discrimination.

There should be a common medical insurance

policy for serving and retired employees so as

to bring down the claim ratio and the resultant

annual medical insurance premium. Since all

the retirees are senior and super senior

citizens, their medical insurance being a social

security measure, the payment of the

insurance premium and so also the

hospitalization bills be brought under 0% slab

of GST Medical insurance premium in case of

single person be lower than the premium

charged for the other retired employees having

a surviving spouse.

It is also proposed that the retired bank

employees of Banks which are

instrumentalities of the Government and hence

falling within the meaning of State under

Article 12 of the Constitution of India should be

covered under CGHS after charging a fixed

lump sum amount at the time of retirement or

at the time of extending the cover to those who

have already retired.

Alternatively, the medical facility should be

extended by the Banks to the retirees through

empanelled hospitals against charging a fixed

one-time amount towards medical fee for their

life time. The fixed sum should be so decided

for different slabs of medical cover with an

option to the retired employee to choose the

medical slab according to his requirement and

wish.

It is requested that the Retirees should not be

discriminated and such medical insurance

premium should be paid by the Banks.

It is requested to include specially challenged

dependent children in the definition of family

to provide Medical Insurance benefit.

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Those members who had opted out of the

scheme due to exorbitant amount of premium

should be allowed to rejoin the scheme.

We earnestly request you to take up the issues

with IBA and make the scheme meaningfully

affordable to all the retirees including Family

Pensioners.

Thanking you,

Yours Comradely, (K.V. Acharya) (S.C.Jain) Joint Convener, CBPRO General Secretary, AIBRF

AIBPARC CIRCULAR NO.50/2019

DATED 19.07.2019 - Golden Jubilee Year of Bank Nationalisation

Dear Comrade,

Sub : Golden Jubilee Year of Bank

Nationalisation

This is a great day for all bankmen, past or

present, the nation and the society and it is to

be remembered with much fondness and

reverence. 50 years back from today, a number

of banks were nationalized. The control of such

financial institutions passed on from private

hands to government. It was a historical,

legendary and epoch-making decision which

had a great salutary impact on future

generation.

• We cannot forget the opening of a

large number of branches in

different parts of the country to

cater to the needs of the common

man. The size of infrastructure of

nationalised banks could be

compared only with those of Indian

Railways and Indian Postal Services.

We had been on the hills, by the

rivers and the sea, in jungle and

terrains and we remained in close

contact with the people.

• Can anyone deny the large

recruitment that took place in the

decades of 70s and 80s through a fair

and uniform recruitment policy. Such

massive manpower posted in urban,

semi urban, rural and hardship

branches extended their hands of

helpful cooperation to the needy

sector of society.

• The concept of Priority Sector came

into existence specifying certain

areas which needed immediate

attention of the banking industry.

The DRI scheme brought smile in the

lips of many who never could dream

that bank finances would be made

available to them. The focus of the

economy shifted drastically. It was

no more class banking but a mass

banking.

• The banks which were controlled by

the state started functioning as an

extended arm of the government of

India. Different schemes, envisaged

by the government at different

points of time were implemented by

the banks in a trustworthy manner.

The banks turned to be the real

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instrument of bringing a social

change. In the process of doing so,

banks sometimes had to make

compromise with profitability but

still it went ahead with a firm

commitment to the society.

• In last 50 years, the nationalised

banks have been symbol of trust and

confidence. Till today, the people of

the country believe that money kept

in the accounts of such banks is safe.

We must be worthy of keeping this

trust intact in days to come. We shall

act as a dedicated force to maintain

and to further consolidate the ambit

of retaining the “state” –character of

banks.

In different parts of the country, the

organisations of serving employees and officers

have been celebrating the golden jubilee year

of bank nationalization through different

programmes. We, the retirees, have been

participating in all such programmes with equal

amount of zeal and enthusiasm. We shall never

forget the sensational event of bank

nationalization of 1969 and we shall proudly

celebrate the golden jubilee year in 2019 with

firm commitments and conviction for future.

With best wishes and comradely greetings,

( SUPRITA SARKAR ) GENERAL SECRETARY

AIBPARC CIRCULAR NO.51/2019

DATED 22.07.2019. - Improvement

in Family Pension and Updation of

Pension in Banks- A fervent appeal

Dated: 19.07.2019

Ms Nirmala Sitharaman Hon’ble Finance Minister, Ministry of Finance, Govt of India, North Block, New Delhi.

Respected Madam,

Improvement in Family Pension and Updation

of Pension in Banks - A fervent appeal

We are the sole coordinating body of Bank

Pensioners and Retirees representing almost

100% of Bank Pensioners. We have been

espousing the cause of Bank Pensioners and

Retirees seeking the redressal of their

grievances. It gives us a sense of pride to see

a full time woman Finance Minister in the

history of our Great Nation. It is further

heartening to note that your good self has

presented a highly progressive and futuristic

budget in the parliament on the 5th July, 2019.

We whole heartedly congratulate you on this

momentous occasion. It is a significant

coincidence that Indian Banking Industry has

also reached a stage where more than 50% of

its workforce is represented by the women who

are rendering yeomen service to all sections of

the society and carrying out various

developmental schemes of the government in

nook and corner of the country.

Organise Retiree Officers of Canara

Bank,

Unite under the banner of

CBROA

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We therefore with immense hope present our

legitimate case for improvement in Family

Pension at par with Government and RBI and

also our request for Updation of Pension in

Banks before your good self for an early and

favourable resolution.

Improvement in Family Pension:

Family Pension in Banks is payable @ 30%, 20%

and 15% of last drawn pay where lower

percentage is being assigned to higher Basic

Pay with a specified ceiling on the amount of

Basic Family Pension which effectively results

in the Family pension working out to 7 to 10 %

of the last drawn pay thereby restricting Basic

Family Pension to a meagre sum of Rs 4000/-

to Rs14000/-. This is as against 30% uniform

rate of Pension without any ceiling in case of

Government and RBI family pensioners. This

discriminatory treatment to the family

pensioners of Public Sector Banks largely being

the widows of the deceased Bank Employees

has caused severe financial hardships to them

and many of them have been forced to opt out

of IBA’s medical insurance scheme for Retirees

due to their inability to bear the Insurance

Premium out of their meagre Pension.

We request you to remove this discriminatory

anomaly and provide much needed relief to the

Bank Family Pensioners.

Pension Updation:

Background:

State Bank of India has been having a Pension

Scheme since very long time. The other Bank

Employees and Officers have also been

demanding introduction of Pension Scheme for

them. So In the year 1993 industry level

settlement / joint note providing for

introduction of Pension Scheme in other Banks

was signed between the Unions/Associations

and IBA. As per the scheme the Employees and

Officers were asked to surrender Banks

contribution to Provident Fund to help create

a Pension Fund. The Pension therefore was

extended to us in lieu of Contributory

Provident Fund (CPF).

Pursuant to the signed settlement/joint note,

the BANK EMPLOYEES’ PENSION REGULATION

1995 were framed in exercise of powers

conferred by Clause(f) of Sub-section (2) of

Section 19 of the Banking Companies

(Acquisition and Transfer of Undertaking) Act

1970(5 of 1970). The said pension regulations

were adopted by the board of respective banks

after consultation with Reserve Bank of India

and with the previous sanction of the Central

Govt. These regulations were also notified in

the Gazette of India and so are the subsequent

amendments. This makes these regulations a

Subordinate Legislation having statutory force.

The Public Sector Banks are the State within

the meaning of Article 12 of the Constitution of

India and are liable to implement the

provisions contained in the said Pension

Regulations 1995 as amended up to date.

Pension Regulation 35(1)

This Regulation originally provided for

updation of Basic Pension; Additional Pension

as under.

Quote.

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In respect of employees who retired between

the 1st day of January 1986 but before the 31st

day of October 1987, basic and additional

pension will be updated as per the formula

given in appendix 1.

Unquote.

The formula for Updation of Basic and

Additional pension given in Appendix 1 was an

adaptation of the Updation formula used for

updating the pension of Government

employees obtaining at that stage.

The retired employees who retired between

1.1.1986 & 31.10.1987 were given the

benefit of Updation of their basic and

additional pension at the time of

implementation of pension scheme in 1995-96.

With a view to extend the benefit of Updation

of basic and additional pension to all those who

retired are were to retire subsequent to

31.10.1987, the Govt of India amended

Regulation 35(1) as under.

Quote:

Basic pension and additional pension, wherever

applicable, shall be updated as per the

formulae given in Appendix 1(Govt Gazette

Notification No. 9 dt 01.03.2003)

Unquote:

The reasons, objects and rationale behind this

amendment to Regulation 35(1) were to

honestly extend the benefit of Updation of

basic pension and additional pension to all

retirees irrespective of the date of their

retirement. However, for inexplicable reasons,

the said amendment has remained

unimplemented and not even a single retiree

has been extended the benefit in spite of the

lapse of more than 15 years.

It is again reiterated that the pension

regulations being subordinate legislation, are

statutory in nature and the Banks being a state

within the meaning of the Article 12 of the

Constitution are under a statutory obligation to

implement the same.

Updation of Pension in RBI:

Pension was introduced in RBI w.e.f.

01.01.1986 as in the case of other Public Sector

Banks. The need for updation of pension arises

as a sequel to wage revision which takes place

in RBI and other Public Sector Banks every five

years commencing 1st November. It is

reiterated that Public Sector Banks Regulations

have an express provision for updation of

pension vide Regulation 35 (1) as mentioned

hereinbefore whereas the Pension Regulations

in RBI needed an amendment to provide for

updation of pension. It is therefore clear that

the pensioners of Public Sector Banks stood on

a better footing vis-a-vis the pensioners of RBI

with regard to extension of the benefit of

updation of pension.

It is pertinent to note that DFS, Ministry of

Finance vide its letter dated 26.02.2018

addressed to Governor RBI has declined to

approve the proposal of the Central Board of

RBI for extension of the benefit of updation of

pension for the reason that it will have

contagion effect and any change in the manner

of calculating pension/updation of pension was

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likely to result in similar demands in Public

Sector Banks and Financial Institutions most of

which are currently experiencing financial

difficulties. However, the Honourable High

Court at Mumbai has rejected such a plea of

the Government and allowed updation of

pension in RBI. Consequently, Ministry of

Finance vide its letter dated 5th March 2019

approved the said proposal regarding

revision/updation of pension as per the

multiplication factor fixed for pensioners

according to the date of their retirement.

Accordingly, the pensioners of RBI have been

given the benefit of updation of pension

notionally with effect from 1st March 2019.This

has lent further credence and legitimacy to our

demand for Updation of Pension in other Banks.

Nature of Pension Liability in Banks:

As brought out here in before, the extension of

the benefit of the Updation of Pension as

provided in Bank Pension Regulation 35(1) is a

statutory liability. As far as the Banks are

concerned, the liability towards payment of

Pension and Updation of Pension are in the

nature of Revenue Expenditure constituting

the charge on Profit & Loss account which

means that the Profit if any, can be declared

only after making honest and adequate

provisions towards pension liability in terms of

Pension Regulations. There appears to be a

notion that Pension Liability is required to be

allocated from the profits of the bank. An

analysis of the published Balance Sheets of the

banks would reveal that the provisions towards

Pension Liability do not find a place in the

Profit & Loss Appropriation Account. It

remains only revenue expenditure. It is also

made clear that implementing an existing

provision of pension regulations does not

qualify to be an improvement in the scheme

and hence the notion about additional cost

consideration is violative of the said pension

regulations. The annual provisions on account

of pension liability are required to be made

keeping in view all the regulations after

obtaining the Actuarial estimates for the same.

It is believed that the Banks have made

adequate provision towards pension liability

and if after implementation of updation, the

apprehended shortfall if any shall have to be

made good as the employees have already

surrendered the Banks’ contribution towards

their provident fund at the time of opting for

pension. The liability being statutory in nature,

implementation of the provision of Regulation

35(1) cannot be withheld for cost

considerations or by drawing an uncalled for

parallel with the budgeting/funding of

Government Pension scheme in as much as the

Pension Regulation 35(1) in case of Bank

Pensioners is unambiguous and clear. A

reference under Regulation 56 of the pension

regulations is required in case of a doubt in the

matter of application of these regulations. It is

clarified that the context of our Pension

Regulation 56, need to be examined to

ascertain whether the facility of Updation of

Pension is available in case of Central

Government Pensioners. A positive

response to this question would set to rest any

apprehension about the implementation of the

provision contained in Pension Regulation

35(1).

A plain reading of the provisions contained in

Regulation 35(1) would reveal that basic

pension and additional pension shall be

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updated wherever applicable. This provision

makes the Scheme of Pension updation an Open

Ended one.

It would be pertinent to understand the

pension liability under Govt Pension Scheme on

account of the Government Employees for a

better and proper appreciation of the issue.

The Pensionary Liability of the govt in respect

of Government Employee is treated as a

revenue expenditure as in the case of Bank

pensioners. In the Govt., the budgetary

allocation is made on a Year-On-Year basis as

the Banks make pensionary provisions after

obtaining Actuaries Estimates every year. The

only difference being that the Govt has not

constituted any fund to be used for payment of

pension perpetually whereas the Banks have

constituted Pension Fund to meet the liabilities

of pension perpetually so as to make the

Pension scheme sustainable. It is further

pertinent that denial of the benefit of updation

to Bank Pensioners has resulted in a huge

Corpus of more than Rs 300000 Crores including

SBI as on 31st March, 2018. The annual

Contributions as per Actuaries Estimates and

Yield on the existing fund far exceed the

Pension Liability every year. This is only

because the Bank pensioners are underpaid to

the extent of the quantum of pension updation.

It is revealing that the size of pension funds

being so strong has in the past led to Window

dressing of Banks ‘Balance sheets by charging

the pension fund for the purposes other than

the Pensionary benefits a la PNB case a couple

of years ago wherein more than Rs 1600 Crores

were transferred from Pension fund to inflate

the bank’s profits. There could be many more

such cases in the industry. It may be

appreciated that pension fund is held in trust

for the pensioners and any unauthorised debit

would amount to misappropriation of Trust

Funds resulting in serious violations of the

provisions of the Trust.

The perception that budgetary allocations are

used for meeting the annual pension liability of

the Government pensioner leads us to a logical

conclusion that such allocation is

statutory/mandatory irrespective of the

surplus or deficit in Union budget. An empirical

study reveals that the Union Government have

been presenting Fiscal deficit perpetually in

their annual budgets. The fiscal deficit is

nothing but the gap between the revenue and

expenditure. The gap between revenue and

expenditure in the banks is called Loss. When

government meets the liability of pension

updation despite perpetual fiscal deficit (loss),

how can the banks refuse to meet the pension

updation liability quoting intermittent loss by

a few Banks. It is also recalled that when the

industry level settlement for introduction of

pension were signed in the year 1993, many

banks were showing loss in the wake of

implementation of prudential accounting

norms since 1992. If Cost or the

profitability/affordability was envisaged as a

constraint for making payment of Pensionary

benefits, it would not have been feasible to

introduce the benefit of pension in those banks

who were making loss during 1993. This clearly

emphasises the point that profit, loss, cost,

affordability etc are illogical and arbitrary

reasons being cited to deny the benefit of

Updation of Pension to Banks’ Pensioners. It is

an illegal denial.

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Cost of updation:

It is learnt that the cost of Updation of Pension

in RBI for 34400 pensioners worked out to Rs.

857.52 crores which was hardly 7.146% of their

pension corpus of Rs. 12000 crores

(approximately). The provisioning norms for

Pension Fund in RBI and in Public Sector Banks

are similar and so is the pension payout.

Pension scheme came into existence in the

year 1986 as in the case of Public Sector Banks

and other Private Sector Banks which are

members of IBA. So far as SBI Retirees are

concerned the Pension scheme was already in

existence. This being so If the same principle

and analogy is extended to roughly assess the

cost of pension updation for about 450000

pensioners of all other member Banks of IBA,

the cost of pension updation as a %age will

remain the same of the pension corpus of the

Banks. This is without adjusting the extra cost

needed in case of RBI Pensioners whose Basic

Pay and resultant Basic Pension are higher than

that of the other Public Sector Banks. In this

backdrop the astronomical figure of the cost of

pension updation assumed by IBA lacks logic

and accuracy and appears to be on some wrong

and unrealistic premises by the actuary. The

difference between the updation cost of 34400

pensioners of RBI and about 450000 pensioners

of SBI and other member Banks of IBA should

not normally exceed the ratio of Updation of

RBI Pension scheme. Such cost calculations

need to be studied with regard to availability

of existing pension corpus available in Banks,

the payment payout, annual yield, annual

contribution/provision to the pension funds. It

is in this manner the need for additional

provision, if any, should be examined.

It is once again reiterated that Banks as

instrumentalities of Government are State

within the meaning of Article 12 of the

Constitution of India. Hence the pensioners of

the Banks cannot be denied their statutory

dues of payment of pension including its

periodical revision/ updation.

Conclusion:

A careful reading of the foregoing merited

submissions would make out a strong and

legitimate case for redressal of the long

pending grievance of Bank Pensioners and

Retirees who have been immensely

contributing for Nation Building.

We request Your Good self to look into our

legitimate grievance and ensure

implementation of a pre-existing provision

under Pension Regulation 35(1) for Updation of

Basic Pension and Additional Pension. Bank

Pensioners and Retirees shall ever remain

grateful to you for your kind consideration in

this regard.

With Respectful Regards,

Yours faithfully, (A.Ramesh Babu) (K.V. Acharya) (S.C. Jain) JOINT CONVENORS GS, AIBRF

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Dr. S T RAMACHANDRA, FORMER

GENERAL MANAGER OF OUR BANK

AND OUR MEMBER NOMINATED AS

MEMBER, SYNDICATE OF THE

UNIVERSITY OF MYSORE.

Dr. S T Ramachandra, General (Retired),

Canara Bank and our Member, has been

nominated as a Member of the Syndicate of the

University of Mysore. He worked as lecturer in

D Banumaia’s College Mysore prior to his stint

in Canara Bank as Hindi Officer. He is also the

recipient of Suvarna Karnataka Hoysala Award

and Hamsa Jyothi Puraskar for his contribution

to Literature.

Hearty Congratulations to Dr. Ramachandra

who has done all of us and Canarites proud.

CBROA wishes Dr. Ramachandra all the very

best in all his future endeavours.

Mrs Salekoppa L Kanyakumari (Mrs S

L Kanyakumari)

Mrs Salekoppa L Kanyakumari (Mrs S L

Kanyakumari) is traveling to Poland and USA

tomorrow. She will be participating in "WORLD

MASTERS BADMINTON CHAMPIONSHIP" at

Poland.

It is a proud moment for all of us. Mrs S L

Kanyakumari is a versatile personality and has

excelled in every sports and games she has

participated. She is has won many major

tournaments for Senior Citizens. May it be

Running race, table tennis or Badminton, She

has won every event. In January this year in the

National Championship held in Goa She was the

Winner in badminton singles doubles & mixed

doubles , 200mts race gold, 100 & 400 mts race

silvers, TT singles gold, doubles bronze. All in

60+ category.

CBROA Wishes Mrs S L Kanyakumari great

Success in the World Championship to be held

in Poland. Madam Kanyakumari you are

carrying The Good Wishes and Blessings of

entire CBROA Family. We are sure you will be

Victorious and Make our Country Proud by your

Efforts.

RALLY ON 22.07.2019 AT

TIRUVANANTHAPURAM TO

COMMEMORATE THE BANK

NATIONALISATION DAY

AIBPARC Kerala state Unit had organized a

mass rally at Thiruvananthapuram and

members of CBROA participated in large

number, braving heavy rains. The rally was

CBROA ACTIVITIES / MEETINGS

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attended by huge number of members of

affiliates of AIBPARC. The rally culminated in a

meeting inaugurated by Dr. K N Harilal,

Member State Planning Board and addressed by

leaders of major retiree organizations and

UFBU constituents.

DHARNA ON 20TH JULY,2019 AT

COIMBATORE, TAMIL NADU UNDER

THE BANNER OF AIBPARC/CBPRO

AND LARGE NUMBER OF OUR

MEMBERS PARTICIPATED IN THE

DHARNA.

CBPRO held a massive Dharna at Power House,

Shivanad Colony, Coimbatore and age number

of members of CBPRO Constituents (AIBPARC,

RBONC, FORBE, AIRBEA, SBIPF) and AIBRF

participated in the Dharna. More than 1,500

retirees, including more than 150 members

from CBROA, attended the Dharna which was

held for 2 hours from 10 am to 12.30 pm. The

Dharna was addressed by Sri. Natarajan,

Member of Parliament from Coimbatore, who

assured the gathering that he will raise the

issue before the Finance Minister and also in

the Parliament, Sri. Sarvanamuthu, President,

SBI Pensioners’ Association, Sri. Sridharan, SBI

Pensioners’ Association, Coimbatore, Sri. E

Sampathkumar, Vice President, CBROA

participated in the Dharna and addressed the

huge gathering. All the speakers highlighted

the issues of pensioners and urged upon the

Government of India and IBA to resolve all the

long pending, reasonable, genuine issues of the

pensioners, such as Updation of pension,

improvement in family pension, 100% DA

Neutralisation to those who retired prior to

01.11.2002,another option for pension to those

who have resigned from service of the Bank

after completing pensionable service,

absorbing the premium amount on the IBA

Mediclaim Policy which is becoming just

unaffordable, year by year etc. Addressing the

gathering Sri E Sampathkumar, informed the

gathering about the case filed by CBROA at

High Court of Karnataka, Bangalore and the

progress in the case. The Dharna received the

electronic and print media attention who gave

a wide coverage.

CENTRAL COMMITTEE MEETING OF

OUR ASSOCIATION HELD AT

HYDERABAD ON 13TH & 14TH

JULY,2019.

MEETING OF MEMBERS AT HYDERBAD

The Central Committee Meeting of our

Association was held at Saikrupa Hotel,

Hyderabad. Around 100 members of the

Committee attended the Meeting. Sri.Rajendra

Reddy, General Manager, Hyderabad,

delivered inaugural address and expressed his

happiness that CBROA has been taking care of

the hopes and aspirations of the pensioners and

retirees of our Bank. He solicited the support

of the senior colleagues, by dedicating their

experience, in improving the business in

Hyderbad Circle. He wished the meeting all

success and hoped that there will be

meaningful deliberations on the various issues

of pensioners and retirees. He wished CBROA

all success in all its endeavours.

Sri.Jagadish, Vice President of Canara Bank

Officers’ Association who is the representative

on the Central Committee of CBROA, graced

the occasion and addressed our Central

Committee Members and shared the

information on the latest developments on the

wage revision issue.

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Sri. K Balachandra Rao, Chairman Reception

Committee, XI Biennial Conference at

Mangalore deliberated on the Central Budget

presented in the Parliament on 05.07.2019 and

its implications on the lives of the people of

the country, the economy, industry, banking

and finance etc.

The General Secretary presented an exhaustive

Report on the latest developments on the

issues of Pensioners and retirees of Banking

Industry, Judgement delivered by the DLCs at

Hyderabad, Jabalpur, Ajmer, Ranchi, Silchar

on the issue of Gratuity Calculation, CBROA

activities. There was a lively debate on the

various issues confronting the retirees of

Banking Industry. The General Secretary

offered his clarifications, on various points

raised by the Members. The General Secretary's

Report was adopted unanimously under

thunderous applause by the members.

There was a discussion on the proposed

Benevolent Fund to be floated by CBROA for

the benefit of members and the Central

Committee felt that the issue needs to be

studied in depth and hence the decision to

introduce the Scheme was deferred for the

time being. It was also resolved to hold the

Central Committee Meeting for only one day

instead of for two days. It was also resolved to

send our printed communications to those who

have not registered their E-mail IDs with us.

The following members were co-opted as

Regional Secretaries by the Central

Committee.

• Sri. A A Varaprasad Rao. Regional

Secretary, Hyderabad.

• Sri K Shanmughasundaram, Regional

Secretary, Salem.

• Sri.Ravi Buddhiraja, Regional Secretary,

Saharanpur.

• Sri.Anhay Bhagat, Regional Secretary,

Surat.

The Central Committee Members

congratulated all the newly inducted Regional

Secretaries and wished them all success in all

their future endeavours in strengthening

CBROA in their respective regions.

There was elaborate discussion on the

following topics:

1.Membership enrolment of retiring as well

retired officers of our Bank.

2. Arrears Collection.

3. Streamline working of WhatsApp Group by

avoiding unnecessary messages, information

not connected with the Pensioners/Retirees,

AIBPARC, CBPRO, AIBOC, UFBU etc. The

Channel should be used to communicate the

information on the developments on the issues

of pensioners/retirees of Banking Industry.

The Central Committee Members in one voice

appreciated and complemented the excellent

arrangements made by our Hyderabad Unit in

holding the Meeting in such beautiful ambience

and at very affordable cost.

Sri. Laxmikanth Nayak, Deputy General

Secretary, proposed vote of thanks.

MEETING OF MEMBERS AT

SHIVAMOGGA, KARNATAKA

A Meeting of CBROA Members was held at

Shivamogga on 23.07.2019 at the Conference

Hall of R O Shimoga. More than 20 members

were present in the Meeting. The AGM of the

RO graced the occasion. Sri.Subbarao, Regional

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Secretary, dealt with the proceedings of the

recently held Central Committee Meeting at

Hyderabad and explained the various

developments on the issues of

pensioners/retirees in the Banking Industry. He

explained the efforts made by our apex body

AIBPARC in getting the issues resolved. He

made a mention about the present position of

the Writ Petition filed in the High Court of

Karnataka seeking Updation of Pension. He

appealed to the members present to enroll all

our retired/retiring Officer colleagues into our

fold, contribute to the Legal Fund of our

Association. Sri Rohit, Marketing Executive

from Bajaj Allianz Insurance Co. explained the

details of Canara Bajaj Group Hospital Cash

Plan for our members. Sri. K R Lingappa, our

Senior Member and AGM (Retd) presided over

the Meeting and made a mention about the

formation of Vishrantha Noukarara Sangha

established at Shivamogga recently and gave a

call to the members to participate in the social

activities undertaken by the Sangha. Sri.

Subbarao, Regional Secretary welcomed and

Sri. D Annappa proposed vote of thanks.

MEETING OF MEMBERS AT INDORE

ON 24.07.2019.

A Meeting of our Members was held at R O

Indore at 6 pm on 24th July,2019. About 30

members of our Association attended the

Meeting. The Meeting was graced by Sri. R K

Sinha, R O Head and AGM, R O Indore, Sri. J C

Sharma, Divisional Manager, R O Indore,

Sri.Sanjay Goel, CBOA. Addressing the

gathering Sri.Sanjay Goel expressed his

happiness to be amidst the seniors and assured

all support to CBROA in the State. Our General

Secretary Sri. A N Krishna Murthy, dealt at

length the various issues confronted by the

pensioners and Retirees in the Banking Industry

and explained the relentless campaign

launched by our apex body in clinching the

issues. He also explained the efforts made by

CBROA to mitigate the hardship faced by the

retired Officers and employees of our Bank. He

clarified various queries raised by the Members

in the Meeting. He made an appeal to all the

members present in the Meeting to strengthen

CBROA in Indore Region by enrolling all the

retired Officers as members of our Association.

Summarising the day’s proceedings Sri. V G

Pande, our Senior Member, who presided over

the Meeting, expressed his happiness over good

attendance by the members who had

assembled despite heavy showers. He made a

fervent appeal to the top leadership of CBROA

and AIBPARC to pursue all our issues vigorously.

He also assured the Regional Head and others

that the retired Officers will extend all possible

co-operation in improving the business of the

Region. Sri. V K Mehra welcomed the gathering.

Sri.Kanungo proposed vote of thanks.

MEETING OF MEMBERS AT BHOPAL

ON 25.07.2019.

Our Bhopal Unit had organized a Meeting of our

members at RSTC Bhopal. About 20 members

were present along with 4 leaders of M P State

Unit of AIBPARC i.e. Sri.Agarwal, Sri.Verma,

Sri.Shankar and Sri Khare. Sri. R K Bharadwaj,

Chairman, CBOA graced the occasion. Sri.

Agarwal, State Secretary, AIBPARC, explained

various issues of Pensioners/Retirees and the

efforts made by CBPRO, AIBPARC in pursuing

these issues. He was all praise for CBROA for its

effective involvement in all the

programmes/activities of AIBPARC/CBPRO. Sri.

Bharadwaj lauded the efforts of CBROA in

pursuing issues of pensioners such as updation

of pension, improvement in family pension, IBA

Health Insurance Scheme etc. and expressed

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hope that all the demands of the retirees will

be met very shortly. Sri A N Krishna Murthy our

General Secretary, apprised the house about

the latest developments on the various issues

such as updation of pension, improvement in

family pension, IBA Health Insurance, Gratuity

issues, the present position of Writ Petition

filed by CBROA in the High Court of Karnataka,

campaign launched by CBPRO/AIBPARC for

settling the issues of pensioners/retirees of

Banking Industry. He gave a call to all the

members present to strengthen CBROA by

bringing all our retired/retiring Officer

colleagues as members of our Association.

Sri.Pradeep Deshpande welcomed the

gathering. Sri.Pankaj Chaturvedi proposed vote

of thanks.

Sri. R K Bharadwaj, Chairman, CBOA who is

retiring on 31.08.2019 has become a member

of our Association.

MEETING OF MEMBERS AT ALIGARH

ON 26.07.2019

Our Aligarh Unit had organised a General

Meeting of our Members yesterday - 26th July

at our Aligarh Main branch. About 40 Members

were present.

Mr. Atul Singh, RS, CBOA was on the Dais along

with CBROA DGS, Mr. Vidhu Mohan, CBROA

AGS, Mr. K R Gupta from Agra, Aligarh District

Chairman Mr. R C Gupta. Sr. Member, Mr. S N

Agarwal presided over.

The Meeting started with lighting of Lamp & by

offering floral tributes to our Founder, Late

Ammembal Subba Rao Pai. Our DGS, Mr.

Vidhu Mohan welcomed the gathering.

Mr. Atul Singh informed the Wage

Talks/fractured Mandate, Stand of AIBOC,

likelihood of introduction of Minimum Wages

Policy by the Govt., Awarding of Marks to the

staff basing on their performance & Campaign

launched by CBOA to help our Bank in recovery

of technically written off A/cs. (D4/Loss

Assets). While seeking retirees' help in this

campaign, Mr. Atul Singh assured of all support

to CBROA.

Mr. A N Krishna Murthy, GS, apprised the House

the present position of

• Updation of Pension,

• Family Pension,

• IBA Health Insurance,

• Gratuity Issues,

• Removal of ceiling of Rs. 3 lake for payment of IT on Encashment of PL at the Time of retirement,

• Writ Petition filed by CBROA at Karnataka High Court, Bengaluru demanding Updation of Pension,

• efforts of CBROA & our Apex Organisations - CBPRO & AIBPARC in taking up our genuine demands with various Authorities,

• Welfare Activities & Communication system of CBROA,

• Creation of CBROA Legal Fund to fight various Court Cases,

• Decision of CC to grant Associate Membership to the spouses of our Deceased Members,

• Possibilities of Starting a Death Relief/Benevolent Fund Scheme, etc.

While clarifying various issues raised during the

open session, the GS informed the need to

strengthen CBROA by roping in Non Members &

appreciated / complimented the Good Work

being done by Aligarh Team led by Mr. Vidhu

Mohan.

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The House observed a minute's silence on the

occasion of Vijay Divas in memory of martyrs of

Kargil War.

Mr. C P Gupta compered the proceedings.

The Meeting concluded with Mr. Kanchi Lal

proposing Vote of Thanks.

MEETING OF MEMBERS AT AGRA ON

27.07.2019

A General Meeting of our Members was held

today Morning - 27th July at our Agra Accounts

Section. About 40 Members were present. Our

Sr. Member Mr. R P Goyal presided over the

meeting, with Mr. Ankit Sehgal, RS & Mr. A B

Gupta, ARS of CBOA, CBROA AGS, Mr. K R

Gupta & RS Mr. Pankaj Saxena being on the

Dais.

The Meeting started with offering floral

tributes to our Founder, Late Ammembal Subba

Rao Pai. Our AGS, Mr. K R Gupta welcomed

the gathering.

Mr. Ankit Sehgal requested the House to bring

to the knowledge of CBOA leaders in case of

problems bring faced by them at any of our

branches. He also informed about the

Campaign launched by CBOA to help our Bank

in recovery of technically written off A/cs.

(D4/Loss Assets) & requested the retirees’ help

in this Campaign.

Mr. Ankit assured of all support to CBROA.

Mr. A N Krishna Murthy, GS, apprised the House

the present position of

• Updation of Pension,

• Family Pension,

• IBA Health Insurance,

• Gratuity Issues,

• Removal of ceiling of Rs. 3 lake for payment of IT on Encashment of PL at the Time of retirement,

• Writ Petition filed by CBROA at Karnataka High Court, Bengaluru demanding Updation of Pension,

• efforts of CBROA & our Apex Organisations - CBPRO & AIBPARC in taking up our genuine demands with various Authorities,

• Welfare Activities & Communication system of CBROA,

• Creation of CBROA Legal Fund to fight various Court Cases,

• Decision of CC to grant Associate Membership to the spouses of our Deceased Members,

• Possibilities of Starting a Death Relief/Benevolent Fund Scheme,

• Formation of Defence Panels at all Centres to defend our Members as Bank is initiating Disciplinary Proceedings against Retirees even after retirement, etc.

The GS clarified various issues raised by the

Members & requested all the Members to

strengthen CBROA by roping in Non Members.

During the course of the Meeting, the House

was informed of untimely death of one of our

Sr. Members, Mr. Somanath Srivastava. The

House observed a minute's silence to mourn the

sudden demise of Late Srivastava.

Mr. Pankaj Saxena proposed Vote of Thanks.

Congratulations to Mr. K R Gupta & his Team

for the successful conduct of Agra Meeting.

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MEETING OF MEMBERS AT

GHAZIABAD ON 28.07.2019

Our Ghaziabad Unit had organised a General

Meeting of our Members today Morning (28th

July) at 11.30 am at Ghaziabad. About 35

Members were present. Our Sr. Member Mr. S

C Upadhyay presided over the meeting. Our VP

Mr. Umesh Kumaria, our Ghaziabad RS Mr. P K

Agarwal & CBOA OGS, Mr. Arun Sharma were

also on the Dais.

Our RS, Mr. P K Agarwal, while welcoming the

gathering, informed that after the last meeting

held in Sep 2018, the Region has added 21 new

Members, converted 6 Ordinary Members as

Life Members & collected Rs.35000/- towards

CBROA Legal Fund.

Mr. Umesh Kumaria requested the Members to

strengthen CBROA & to contribute to CBROA

Legal Fund to enable us to fight the Court Cases

effectively.

Mr. Arun Sharma informed the House about the

intention of the Union Govt. to privatise

various Public Sector Units, stalemate in Wage

Negotiation Talks, the need to assist/guide the

youngsters at the branches to improve their

efficiency & to avoid any frauds. He assured

that he can be counted upon for any support to

CBROA.

Mr. A N Krishna Murthy, GS, explained the

present position of

• Updation of Pension,

• Family Pension,

• IBA Health Insurance,

• Gratuity Issues,

• Removal of ceiling of Rs. 3 lake for

payment of IT on Encashment of PL at

the Time of retirement,

• Writ Petition filed by CBROA at

Karnataka High Court, Bengaluru

demanding Updation of Pension,

• efforts of CBROA & our Apex

Organisations - CBPRO & AIBPARC in

taking up our genuine demands with

various Authorities,

• Welfare Activities & Communication

system of CBROA,

• Creation of CBROA Legal Fund to fight

various Court Cases,

• Decision of CC to grant Associate

Membership to the spouses of our

Deceased Members,

• Possibilities of Starting a Death

Relief/Benevolent Fund Scheme,

• Formation of Defence Panels at all

Centres to defend our Members as Bank

is initiating Disciplinary Proceedings

against Retirees even after retirement,

etc.

The GS clarified various issues raised by the

Members, Mr. Charan Jeet Arora, Mr. Ajay

Kapoor, Mr. Yashpal Arora, Mr. Maheshwari &

others. He complimented Team Ghaziabad for

the Good Work being done & requested all the

Members to strengthen CBROA by roping in Non

Members.

2 Sr. Members Mr. M L Pahawa & Mr. B D

Chawda were honoured on the occasion.

Mr. Charan Jeet Arora proposed Vote of

Thanks.

Mr. P K Malhotra compered the program.

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Team Ghaziabad led by Mr. Agarwal deserves

all Appreciation

VANAMAHOTSAVA/PICNIC

28.07.2019 at Mangaluru

It was a day full of fun and entertainment. As

planned the bus started from Mangalore at 8

am sharp. Twelve cars also left at the same

time. Altogether it was a grand gathering of

100 members, family and friends. Soon after

reaching the Kodman Heights Layout, the

venue, everyone had their breakfast. Soon

after, entire team reached the top of the

layout, where an elaborate arrangement was in

place for planting about 80 saplings. This year

it was predominantly fruit bearing trees such

as Mangoes (different variety) Guava,

Seethaphal, Pomegranate, Chikoo etc. The

inaugural function was addressed by Sri B

Srinivas Hegde, former GM, Sri T G Shenoy,

former AGM and Sri Kantappa Shetty, Local

leader and a prominent personality. Panchayat

President Mr Natish Naiga and other local

people were also present. All the saplings were

neatly planted and photographs were taken to

cherish the memory.

A gala of entertainment activity started

thereafter. The Felicitation function of Sri B S

Shetty was conducted in a befitting manner. Mr

B S Shetty shared his experience in Indian Air

Force, specially the two wars of 1965 and 1971.

He thanked CBROA for facilitating him on

attaining 75 years. Sri T G Shenoy spoke on the

occasion and said it is a great honour for us to

facilitate Mr Shetty, who has served our

Country by joining Air Force at a very young

age. Mrs Rekha Shetty, wife of Sri B S Shetty

was honoured in the traditional way By Mrs G R

Nayak.

Mr B Z Hussain, Mr M S Kamath, Mr A Ramesh

Shettigar conducted various games, quiz etc.

Mr P H Balakrishna, Mr Sudhakar Mangalpady,

Mrs & Mr Sudarshan Kamath, Mr George Lobo

and Mrs Nora Lobo, Mr S Abdul Rehman Sheikh,

Sri B S Hegde, Mr M S Bhat, Mrs and Mr Devidas

Rao, Mrs R M Prabhu Mrs K K Kini entertained

with their melodious songs. Mrs Kasturi Pai and

Mrs Meenakshi enacted a wonderful skit, which

was liked by all. A group dance by ladies stole

the show. Mr M S Bhat was at his best with a

solo dance. Self-introduction was held.

Feedback on today's programme was also

collected. Prizes were distributed at the end.

Mr Shekhar who takes care of all plants was

honoured for his selfless service to mother

Nature.

Mr L K Nayak and wife were also felicitated.

Programme ended sharp at 5 pm after National

Anthem.

REPORT ON SOCIAL ACTIVITY

CONDUCTED BY CBROA

VIJAYAWADA REGION

As decided in our Region's meeting held on

26th of this month, today we have conducted

social activity under our banner CBROA.

Dinner was provided to about 75 orphan

children taking shelter at Deepa Nivas, Karmel

Nagar, Vijayawada.

GENERAL MEETING AT DELHI ON

29.07.2019

Our DELHI Unit had organized a General

Meeting of our Members at YMCA CENTRE HALL

on 29th July at 4.30 pm. A gathering of 100+

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members from Delhi Faridabad & Gurgaon were

present.

Mr. Umesh Kumaria, Mr.Mohan (Chennai), Mr.

A R Rakshit (Kolkata), Mr. Charanjit, CBOA DGS

Delhi & Mr. Gambhir, DGS CBOA Gurgaon were

on the Dais.

CBROA AGS Mr. Ashwani Sharma welcomed the

gathering.

After self introduction of Members, a minute's

silence was observed in memory of Members

departed during the intervening period.

4 Sr. Members - Mr. B M Gupta & Mr. Kewal

Kumar Khullar from Delhi & Mr. O P Dhawan &

Mr. Y P Bakshi from Faridabad were honoured

on attaining 75+ years of age. All the honoured

Members expressed satisfaction on being

remembered & wished CBROA success in all its

endeavors.

Many doubts were raised by members. General

Secretary Mr. A N Krishna Murthy in his 90

minutes Key note address, clarified all the

doubts raised. He also informed the pending

issues with Canara Bank, IBA and Central

Government like Medical Insurance, Pension

Updation & improvement in Family Pension on

the line of Central Government, Gratuity, etc.

and also Court cases filed in different courts in

the country. He requested the House to

strengthen CBROA & to donate to CBROA Legal

Fund. An amount of Rs.28100/- was collected

on the spot.

Mr Charanjit DGS CBOA and Mr Gambhir DGS

CBOA were also honoured. In the address Mr

Charanjit welcomed the leadership of CBROA

also urged the retired members to attend

monthly meeting of CBOA and assured of full

support to CBROA.

Mr Gambhir also informed the latest

developments & assured of all support to

CBROA.

Mr. N Venkataramani proposed Vote of Thanks.

Thanks to Mr. Kumaria, Mr Ramani, Mr. Ashwani

Sharma, CC Members & RSs of Delhi, Gurgaon

& Faridabad for making the Meeting successful.

RBI GOVERNOR MEETS PUBLIC

SECTOR BANK HEADS, REITERATES

CALL FOR TRANSMISSION

Reserve Bank Governor recently met the heads

of Public Sector Banks and reiterated his

concerns over the “less-than-desired level” of

policy rate transmission by the lenders.

Acknowledging the “discernible improvements

in the Banking Sector,” the Governor pointed

out that there still are several challenges to be

addressed, particularly in regard to stressed

assets resolution and credit flows to the needy

sectors. During the Meeting the following issues

were discussed:

• Less than desired level of transmission

of monetary policy rates.

• Credit and Deposit growth on the back

of a slowing economy, flow of credit to

needy sectors while following prudent

lending, robust risk assessment and

monitoring standards.

BANKING NEWS / DEVELOPMENTS

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• Improving recovery efforts.

• Giving impetus to resolution of stressed

assets facilitated by revised framework

for resolution announced by the RBI on

7th June,2019.

• Strengthening internal control

mechanism for improved fraud risk

management.

• Recent initiatives to address issues

relating to NBFCs and the role banks can

play in mitigating lingering concerns.

• Deepening Digital payments.

The Governor also underlined the importance

of expanding and deepening payments

ecosystem in line with the recommendations of

the Report of the Committee on Deepening of

Digital Payments (Chairman : Sri. Nandan

Nilkani) and RBI’s Payment System Vision

Document 2021. In this context, on the

suggestion of the Governor, it was agreed that

Banks will identify one district in each state to

make it 100% digitally enabled within a time

frame of one year in close co-ordination and

collaboration with all stake holders including

.SLBCs. To the extent feasible, such districts

may be converged with the “Transformation of

Aspirational Districts’ Programme” of the

Government of India. IBA is also expected to

play a catalytic role in this regard.

SME BAD LOAN RATIO REMAINS

HIGH AT 10.8% IN THE MARCH

QUARTER.

Stress in the micro, small and medium

enterprises (MSMEs) segment remained high in

the quarter ended March,2019, according to

the July,2019 edition of the MSME Pulse Report

by Transunion CIBIL and Small Industries

Development Bank of India (SIDBI) It changed

little from the bad loan ratio in the quarter

ended December,2018.

The delinquency ratio may not be capturing the

full extent of stress in the system because

Banks have retained as Standard assets a

roughly Rs.15,000 crore worth of stressed

micro, small, medium enterprises (MSMEs)

loans under two sets of regulatory

dispensation. The NPA ratio however, was

significantly higher in the large and medium

enterprises segments at 18.1% and

17.1%respectively. The gross NPA ratio for the

commercial segment as a whole eased to 16%

in March 2019 from 17.2% in March,2018.

These loans would have turned NPAs a long

time ago had the RBI not given Banks a

breather. A June 2018 notification had allowed

Banks and NBFCs to temporarily classify their

exposure to all MSMEs, including those not

registered under the GST, as a Standard Asset

as long as it was smaller than Rs.25 crore and

standard as on August 31,2017. MSME loans

worth Rs.7,995 crore had been retained by

Banks as Standard under this RBI notification.

NPA CRISIS : LOAN WRITE OFFS BY

BANKS CROSS Rs.2 LAKH CRORE.

Write offs made by 27 Banks in FY 2019 crossed

the Rs.2 lakh crore mark, with 16 Public Sector

Banks along accounting for Rs.1.77 lakh crore

worth of written off loans. In FY 2018, PSBs had

written off loans worth Rs.1.28 lakh crore. Had

banks not written off loans worth close to

Rs.2.06 lakh core in FY 2019, the value of non-

performing assets (NPAs) in the system at the

end of the year would have risen by an

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equivalent amount. The amount of loans

written-off in FY 2019 by PSBs could turn out

to be even higher as the numbers for Dena Bank

and Vijaya Bank, which now stand merged with

Bank of Baroda, were unavailable. State Bank

of India made the largest amount of write offs-

worth Rs.61,663 crore, up by 57.5% from FY

2018. It was followed by Canara Bank, whose

written off loans added upto Rs.14,267 crore

and BOB, which wrote off loans worth

Rs.13,102 crore in FY 2019.

BANKS’ BAD LOANS DOWN AT

Rs.9.34 LAKH CRORE AT FY 2019

END.

Total Bad loans of commercial banks declined

by Rs.1.02 lakh crore to Rs.9.34 lakh crore in

the fiscal year 2018-19 on the back of steps

taken by the Government, the Union Finanace

Minister informed the Parliament. The

Government has instituted a comprehensive

4Rs strategy by recognition of Non-Performing

Assets (NPAs) transparently, resolution and

recovery of value from stressed assets,

recapitalizing of Public Sector Banks and

reforms in PSBs so as to reduce their bad loans.

Among others change in credit culture with the

Insolvency and Bankruptcy Code (IBC)

fundamentally changing the creditor-borrower

relationship, taking away control of defaulting

companies, debarring willful defaulters from

taking part in resolution process as well as

raising funds from markets are the steps that

have been employed.

ATM TRANSACTION CHARGES FOR

OTHER BANK ATMS LIKELY TO

CHANGE : RBI SETS UP REVIEW

PANEL

The charges you pay for using ATMs of other

Banks may change. The RBI in its Monetary

Policy has announced the setting up of a

Committee to review the ATM interchange fee

structure. This fee structure determines the

charges you pay for using your ATM Card at the

ATMs of Banks other than the issuing Bank.

Normally a certain number of such transactions

are allowed free by the issuing Bank. However,

you are charged for using the ATMs of other

Banks for transactions beyond a certain

number which may vary from one issuing bank

to another.

Currently ICICI Bank offers first three

transactions in a month (inclusive of financial

and non-financial) free of charge in six Metro

Locations. In other cities, first five transactions

(inclusive of financial and non-financial) are

offered free of charge. Thereafter, Rs.20 per

financial transaction and Rs.8.50 per non-

financial transactions, as per the Bank’s

website. Similarly, State Bank of India offers

same number of free transactions in both

metro and non-metro locations. Thereafter, it

charges Rs.20 plus GST per financial

transaction and Rs.8 plus GST for non-financial

transaction as mentioned in its website.

STATE BANK OF INDIA HAS BEEN

CAUGHT LYING ABOUT ITS PROFITS

FOR THREE YEARS.

According to an expose by Moneylife, State

Bank of India overstated its profits by as much

as Rs.9,500 crore for three years in between

2012-13 to 2014-15. What makes it worse is

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that all this information is available with

Reserve Bank of India and the details came out

after a petition was filed under the Right to

Information (RTI) Act, by an RTI Activist,

Sri.Girish Mittal.

Year Overstated Profit

2012-13 Rs.1,220 crores

2013-14 Rs.5,038 crores

2014-15 Rs.3,252 crores

It is reported that the annual inspection of

Bank’s Accounts by RBI has opened a Pandora’s

Box where many evils have come out, viz. bank

has suppressed employee fraud, covered bad

loans, flouted anti-money laundering rules,

resorted to window dressing. The Bank has also

flouted norms laid down by RBI with regards to

KYC, Lending limits set on sectors and

individuals. In many cases the bank has not

enforce securities provided on a loan wherein

assets of defaulters are taken over. In some

cases loans were disbursed even before a

charge was created on the collateral.

Suppression of data has happened at every

level since most of the credit problems were

never taken to the board as well.

(Source : Money Life dated 09.07.2019).

RBI IMPOSES Rs.7 CRORE FINE ON

SBI FOR VIOLATION OF VARIOUS

REGULATORY GUIDELINES.

The RBI has imposed an aggregate penalty of

Rs.7 crore on State Bank of India for non-

compliance with directions issued by RBI. SBI

was found to have violated asset classification

norms, code of conduct for opening and

operating current accounts, and reporting of

Data on Central Repository of Information on

Large Credits. SBI was also found to have

violated RBIs directions on fraud risk

management and classification and reporting

of frauds.

ALLAHABAD BANK REPORTS

Rs.688.27 CRORE FRAUD.

Allahabad Bank informed Reserve Bank of India

and SEBI, on 17th July,2019 about a fraud of

Rs.688.27 crore by a Ludhiana based textile

company. A few days back the bank had

reported a fraud of over Rs.1,775 crore by

Bhushan Power & Steel Co. Ltd. The bank has

informed that for outstanding dues of

Rs.688.27 crore NCLT Proceedings are in

progress.

PUNJAB NATIONAL BANK HIT BY

ANOTHER FRAUD OF Rs.3,800

CRORE.

The Punjab National Bank has reported a

borrowing fraud of Rs.38.05 billion in Bhushan

Power and Steel Ltd’s account to the Reserve

Bank of India. The fraud alleging “diversion of

funds from the Banking system” was reported

to RBI on the basis of the findings of the

forensic audit and the Federal Police filing an

FIR. It has been observed that the company has

misappropriated bank funds, manipulated

books of accounts to raise fund from

consortium of lender Banks. The Bank has

already made provision of Rs.19.32 billion.

Punjab National Bank was defrauded to the

tune of Rs.1,400 crore in a scam perpetrated

by diamontaire Nirav Modi and Mehul Chokshi,

which came to light last year.

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IL&FS HOSTED TOP EXECUTIVE OF

CREDIT AGENCY, BRICKWORK

AGENCY, GOT HIGH RATINGS

Investigating how the IL&FS group companies

were able to retain high credit ratings even as

they faced a severe liquidity crunch and

ultimately defaulted in September,2018,

officials have found evidence pointing to

conflict of interest. It is confirmed that

Brickwork Ratings, allegedly gave favourable

ratings to debt instruments of IL&FS group

companies as its founder Director D

Ravishankar allegedly received IL&FS Group’s

Hospitality in Spain along with his family. This

included watching a football match in Madrid

in the IL&FS Box. The investigating authorities

are probing this alleged nexus and will take

action accordingly. The Board of Directors of

IL&FS has sent its MD and CEO on leave with

immediate effect pending completion of the

examination of anonymous complaint received

by the SEBI

LABOUR

GOVERNMENT RULES OUT

REINTRODUCTION OF OLD PENSION

SCHEME

In a written reply to a question asked in the

Parliament, the Government ruled out

reintroduction of Old Pension Scheme (OPS) for

Government employees. This scheme which

existed before the introduction of the National

Pension System (NPS) in 2004, provided for a

defined benefit pension to Government

employees. A defined benefit is fixed and

determined with reference to number of years

of service and salary. National Pension System

on the other hand is market linked.

NPS was introduced in 2004 and made

mandatory for all Central Government

Employees. It was subsequently extended to

the State Government employees also and to

the Private Sector. However, some

Government employees organizations have

consistently opposed the NPS since it does not

provide a fixed pension amount. There was

some expectation from some sections that the

Government may reintroduce OPS for Central

Government employees based on this

opposition. However, the Government has

firmly laid any speculation in this direction to

rest.

The Government cited two reasons for its

refusal to reintroduce OPS. First, it pointed to

a “rising and unsustainable pension bill” and

said that “the Government had made a

conscious move to shift from the defined

benefit, pay-as-you-go Pension Scheme to

defined contribution pension. Second, it said

that “the transition also helped in freeing the

limited resources of the Government for more

productive and socio economic sectoral

development.”

The NPS does not provide a guaranteed pension

but allows subscribers to invest their pension

corpus in Government bonds and equities. In

the recently announced budget, the

Government increased its contribution to NPS

for Central Government Employees from 10% to

14%. It also permitted Central Government

employees to invest in NPS Tier II and get the

benefit for tax deduction under Section 80 C.

Such an investment will have a lock-in period

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of three years. It also increased the tax-free

portion of the NPS corpus on maturity from 40%

to 60%. All these measures have made the NPS

more attractive to Government employees.

CENTRAL VIGILANCE COMMISSION

(CVC) TELLS MINISTRIES TO TAKE

ACTION AGAINST CORRUPT

BUREAUCRATS BEFORE THEY

RETIRE. 25 OFFICIALS FROM STATE

BANK OF INDIA, CANARA BANK,

PUINJAB NATIONAL BANK, OTHER

BANKS UNDER SCANNER.

The anti-corruption watchdog Central

Vigilance Commission (CVC) has asked the

Government Departments to take timely action

against tainted bureaucrats and not wait till

their retirement. The CVC Communique comes

in the backdrop of government pushing for

compulsory retirement of deadwoods and

tainted Officers in the Central ministries and

departments. 25 Officers from The State Bank

of India, Canara Bank, Punjab National Bank,

Indian Bank, Bank of Baroda, Syndicate Bank,

and Union Bank of India are currently under the

scanner and will be charged for relevant

offence soon. 13 Officers from the Department

of Coal, 7 Officers from Ministry of Urban

Development, 3 from Ministry of Defence who

are accused of corruption, will also face the

departmental action. Major penalty has also

been recommended for four Officers from

BSNL, 2 Officers each from Department of

Expenditure and Central Board of Direct Taxes.

In May 2019, CVC directed the Central Board of

Excise and Customs to dismiss three Officers

from service involved in corruption cases. Two

Officers from Bank of Maharashtra and

Corporation Bank were sacked and major

penalty was imposed against at least 70

Government Officers.

The CVC has specifically pulled up Central

Public Sector Undertakings (CPSUs) and Banks

for delaying disciplinary action against the

charged Officers. The Commission has said that

several files for advice are being received just

weeks before the Officer’s retirement.

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PHOTO GALLERY

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