charter of demand-2
TRANSCRIPT
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ALL INDIA UNION BANK OFFICERSTAFF ASSOCIATION
(Affiliated to AIBOA)Phone: 9381036405
Email: [email protected]: [email protected]: Don Flats, I Floor, No.19, SRP Colony 7th Street, Peravallur,
Chennai 600082Chairman: Com.H.K.Agarwal President: Com.P.G.Lokhande
30.10.2012
Com bined Charter of Demands
Submitted b y
ALL INDIA BANK OFFICERS CONFEDERATION [AIBOC]
ALL INDIA BANK OFFICERS ASSOCIATION [AIBOA]
INDIAN NATIONAL BANK OFFICERS CONGRESS [INBOC]
NATIONAL ORGANISATION OF BANK OFFICERS [NOBO]
INTRODUCTION:
The Charter o f Demand s rep resents the hope s a nd asp irations of en tire officers
fraternity working in the Banking Industry all over the country, owing allegiance to
the All India Bank Officers Confederation(AIBOC), All India Bank Officers
Assoc ia tion (AIBOA), Ind ian Nationa l Bank Officers Congress (INBOC) a nd Nationa l
Organisation of Bank Officers(NOBO) and other Officers organizations in the
ind ustry. The Cha rter of Demand s is also a sta tem ent of the dem ands of the Office rs
fraternity for consideration of the Indian Banks Association, an accredited
rep resenta tive forum of the Ma nage ments of the Membe r Banks and as also ac ting
as the spokesperson on beha lf o f the Government o f Ind ia , in the ma tte r o f
settlement of compensation system in the Banking Industry on behalf of their
mem ber ba nks in the c ountry.
PREAMBLE:
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The Ind ian Banking system is highly respec ted and apprec iate d a ll ove r the world , in
pa rtic ula r in the b ac kground of rec ent e co nomic ca tastrop he na me ly, the c ollap se
of the US ec onom y known for its rob ustness and size in glob al sce nario which , has
impacted the entire world upsetting most of the Western countries in particular
those who a re p a rtners of US inc lud ing the c lose a lly UK.
The Ind ian Ba nking system not only absorbed these d evelop me nts b ut a lso
rema ined strong as eve r in fa cing the g loba l uphea val. The Europ ean c ountries
suffered a m a jor setb ack and the Euro currency wa s und er pressure. The Ind ian
Banking system not only grew from strength to strength but stood as rock in the
middle of this financial tsunami and co ntinued its onward ma rch in rende ring the
ec onom ic justice to m illions and m illions o f the peop le living below the poverty line.
The grea test tribute to the Ind ian Banking system is its resilience a nd the cou ra ge to
take on the Basel Norms and to me et a ll its req uirem ents to show the world that the
Ind ian grow th story is not a myth and it ha s c om e to stay.
The e ntire c red it to this super performance m ust go to the Bank Officers fra ternity in
the co untry. They not only defended the public sec tor Banks but also ac ted as a
stumbling block in the ill advised initiative of the Government influenced by the
propo nents of the globalization to hand over the industry to the private sec tor as
we ll as the multina tiona ls. The Gov ernment has rev isited the issue of d isinvestmentand has been ac knowledging the pe rforma nce of the ba nks and is now serious to
reta in the c ontrolling stake in the Public Sec tor Banks.
The effic ienc y of the banks ha s rea ched the interna tiona l standa rds. There is neither
comp la int no r an a ttempt to denig ra te the Indian Banks on the issue o f the
am bience in c om pa rison w ith the foreign an d new g ene ration p riva te sec tor banks
due to the effec tive m ea sures a do pte d b y the Ma na gem ents of the b anks. The
banks are tech-savvy and are in a position to acquire and to adapt any latest
version of the tec hnology to m atc h their c ounte rparts a ll ove r the world.
How d id th is transforma tion ha ppen? This is m ainly due to the fac t tha t the entire
officers fra ternity, co mm itted to the suc cess of the Ind ian Banking ind ustry, has
given b lood and swea t o f their youth in ensuring the succ ess of the ba nks all over
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the c ountry. They hav e a lso unmind ful of the ir pe rsonal inconvenienc e a nd
d isco m fort to the m embe rs of the ir fam ily, have c arried the b anking fac ilities to no ok
and corner of the country en suring Banks to b e highly com pe titive with that o f their
counter pa rts both inside a s we ll as outside the c ountry.
Does the c om pe nsa tion system ma tch the se d eve lopments? Wha t is the q uality of
life of Officers? Whether all the demands and expectations of the Officers have
bee n fulfilled b y the IBA and the G overnme nt in the process. We a re c onc erned to
ob serve tha t there is a gulf betwe en the hop es and aspirations of o fficers and the
IBA. We all have to strive to bridg e this ga p in the ensuing wa ge revision/ service
condition.
Befo re we p roc ee d to present our Charter of Dema nds for the 7th Joint Note
exercise let us take a close look a t the job ma rket, the c om pensa tion environme nt
preva iling with the p eers o f the Pub lic Sec tor, the owner himself i.e. the Go ve rnment
and ab ove all the new sec tors of the ec onomy, to have a prope r assessment and
justif ica tio n for the Charte r of Demand s.
The disc ernible ga p of exac tly a dec ade between Nationaliza tion
and actual date of implementation of the Pillai Committee
Recommendations ie between 19 07 1969 and 01 07 1979 had causedexac erbating effec t of losing a t least one se ttlem ent of Standa rd ized
pay sca les and a llowances to Bank Office rs in PSBs( if no t two
settlements)
COMPARABLES INFLUENCE THEREOF:
The immedia te comparab le position is tha t o f the C iv il servants who had the
op portunity of g etting their com pe nsa tion revised during the year 2006. Som e of the
ma jor initia tive s of the 6th Pay Com m ission a re:-
ADEQUACY OF THE COMPENSATION FOR OFFICERS CADRE:
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For the first time the Commission had recognized the importance of the
Office rs ca dre amo ngst the civil servants and has ensured that, they are able to
get a competitive compensation in comparison with the executives in the Private
Sec tor. The m a jor theme tha t wa s introd uc ed in the rec omme nda tions to p rovide a
be tter co mp ensa tion w a s the fea r that the G overnment autho rities may not get
go od , cap ab le and co mp etitive staff, as the c om pe nsation was not c omm ensurate
with tha t o f the Priva te Sec tor.
The 6th Pay Comm ission has go ne into these aspe cts in an exhaustive ma nner and
has ap art from the salary revision, introd uced several new be nefits to take ca re of
the extra m ilea ge fo r the bureauc ra ts. Hon b le Justice Shri Krishna ha s a lso in a
substantial manner explained the right sense of relativity between the clerical staff
and officers keeping in tune with the global scenario. Rationalization of Internal
Parity amo ngst the c ad res and grad e ne ed s to b e e xtende d to the Ba nk Office rs
also.
Two m a jor be nefits tha t he ha s passed o n to the Civil servants we re the introduc tion
of Grade Pay, to ensure better emoluments and also providing the running scale
c om me nc ing from the lo we st to the hig he st level so tha t no o ne wo uld b e
com pelled to suffer stag na tion a s reg ards the c om pensation is co nc erned. In the 6th
Pay com mission Govt. Office rs sala ry had inc rea sed to substa ntia l level compa redto Bank officers.
SCIENTIFIC INCREMENTAL PATTERN:
The inc reme nts have be en relate d to the sca les in terms of pe rce ntag e. It ha s g iven
a sc ien tific formula where the inc rem ents a re direc tly linked to the automatic basic
pay.
MOVEMENT FROM SCALE TO SCALE:
The Banking Industry expe rimented this p hilosop hy long time b ack. Howeve r, a
more aggressive pattern is now seen in the 6th Pay Commission where movement
from one sca le to another is automa tic a nd it d oes not stop a t any sca le. It would
ensure aga inst stag nation a t a ny sc ale / stag e.
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SUPERANNUATION BENEFITS:
O ne o f the sa luta ry im p a cts o f the 6th Pay Comm ission is the co mp rehensive
improvements in the case of Pensioners and Family Pensioners in the Centra l
Go vernme nt. The imp roveme nts ma de in the Pension schem e in the a rea s like
updation and upgradation of the Pension, the rationalization of Dearness
Allowa nce, Family Pension etc ., nee ds to be implem ented in the ba nking industry a s
our pension scheme amply speaks of being in the lines of central govt. pension
scheme
PUBLIC SECTOR WORKFORCE
The yet a nother com parab le situation a s fa r a s the Banking Ind ustry is tha t of the
Public Sec to r units ow ned by the Go vernm ent. The sala ry rev ision takes place inrespec t o f the Pub lic Sec to r Un its a long w ith the c iv il se rvants. The 6th Pay
Comm ission scales with c ertain mo d ifica tions in a wa y m ore bene fic ial to the Public
Sec tor officers have been imp lem ented without a ny hesitation. Whenever a
refe renc e is ma de to the se d evelop me nts, the a uthorities co ncerned will take lame
excuse of the salary being revised to them on the basis of the Pay Commission
which is onc e in 10 years. This cannot be justified to c ause hug e d isparity b etwe en
Bank Officers and Group A Officers. Such erosion in the value o f em olume nts
d efies log ic of p arity a t the tim e of im plementa tion of Pilla i c omm ittee
Rec omm end ations. The co nce pt of Merge r of DA when it exce ed s 50% with Basic
Pay ensures protec tion of superannua tion be nefits which is missing in case of Bank
Employees.
PRIVATE SECTOR NEW SECTORS OF THE ECONOMY:
NEW GENERATION PRIVATE SECTOR AND FOREIGN BANKS:
There is a sea of d ifferenc e in the em olume nts be twee n the new ge neration Priva te
Sec tor Ba nks / Foreign Ba nks and the Banking Ind ustry co ve red b y the IBA. The se
Banks adopt the compensation system that is prevailing in the new sectors of the
ec onom y on the plea of a ttra c ting the be st talent in the financ ial sec tor. The sam e
is true in the ca se of Public Sec tor and old ge neration ba nks as well. The fear ha s
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come down drastically in the recent past in view of the fact that there is vast
workforce av a ila ble in the ma rket. The com petitive environm ent is such tha t the
perform ance of the New Generation Private Sec tor Banks is always quoted as a
mo del for othe rs including the Old g ene ra tion Priva te a nd Pub lic Sec tor Banks,
whenever the issue o f compensation in comparison w ith them is ra ised. The
efficiency parameters are similar and hence the factors of compensation system
prevailing in the New Generat ion Private Sector and Foreign Banks should be
extend ed to all Bank Employee s a s well.
Som e o f the benefits that they e njoy over the b anks a re: (a ) the annual assured
bonus; (b ) the employees stock option p lan (c ) the liberal reimbursement of
expenditure incurred on recreation, lunch, travel, (d )meeting the tax obligations
etc ., with attrac tive c a reer prospec ts.
7TH JOINT NOTE EXERCISE
The 6th Joint Note is to e xpire o n 31.10.2012. The workforce in the banking industry is
therefore eligible for a fair salary revision from 01.11.2012.
EXPECTATION OF BANK OFFICERS FRATERNITY & PRECIOUS ASSETS FOR THE BANKS:
a . Eac h and eve ry Bank Office r in the co untry takes pride in his co ntribu tion tothe success o f the banking industry. He / she is an in tegra l part o f the
financ ia l sec tor ma chinery, which undertakes the responsib ility of a me liorating
the living c on ditions of m illions and m illions of the pop ulation in the c ountry.
b . This contrib ution, which he / she ha ve b ee n making, should reflec t in his
com pensa tion system . This c om pe nsa tion system should b e a com prehensive
one, co mp arable with the pe ers in the eco nom y of the c ountry and a bo ve a ll
one should have p rid e o f his p rofession throug h the com pe nsation p ackage
he / she ha s.
c . Compe nsa tion system should also take ca re of the trem endo us sac rifice tha t
the Officers fraternity has been making to make the banking industry strong
and e ffic ien t even a t the cost o f h is / her own comforts, the family life ,
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unlimited working hours e tc ., so tha t he /she would derive tremendous
sa tisfac tion fo r having served the industry be yond the c all of his / her du ty.
d . The Com pe nsation should also e nsure a ga inst the erosion of the rea l wages
due to inflat ion and ade quately take care of his / her social obl iga t ion and
cultural requirements, the need for maintenance of standard of life that themem bers of his / he r family de serve throug h his / her services to the industry.
e. The c om pensa tion system should b e so a ttrac tive tha t one should asp ire to go
higher in the ladder of the career and continue his / her commitment and
conviction to g ive the best to the institutio n.
f. Com pensation p ac kag e should be a deq uate to a ttrac t the b est of the
ta lents from the market to join the Bank serv ices.
g . There should be a reg ular system of a utom atic up grad tion o f sca les up to
Sca le IV, having regard to the steep leve ls o f stagnation and resultan t
de mo tiva tion am ong st the o fficers.
For the p urpo se of foc used neg otiations, the c om pe nsa tion pa ckage is d ivided into
d ifferent pa rts. The imm ed ia te a tten tion should be to revise all the m one tary area s in
one p art. The othe rs are further divided into p ac kag e of Perquisites and othe r
allowances, inc luding the Welfare areas. The third part shall be consisting of
superannua tion benefits. There is a n exc lusive part d ea ling with the issue s
connected with the lady Officers and another part on disciplinary matters in the
banking industry.
The o ther gene ral issues have b ee n group ed into two sep ara te c ha pters.
The first one w ill dea l w ith the issues such as working hours, 5 days a week,
com pensation for extra wo rking hours, holidays and we ekly off d ays etc .,
The second part aims at bringing the Officers service conditions in the banking
ind ustry o n pa r with the Public Sec tor serva nts in v iew of highe r level a ccounta bility
and mo bility to ma ke a strong ca se for a fair and co mp rehensive revision in favour
of Bank Office rs, a genuine and just a sp ira tion .
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The Cha rter of d em and s a nd settlem ents sha ll b e ap plica ble to a ll Public Sec tor
Banks, Priva te Sec tor, RRB Sec tor, and Co-op erative sec tor on a n equa l foo ting .
HENCE:
The Cha rter sha ll be d ivided into :
Part I: Sala ry Revision and Allowa nc es
Part II: Perquisites, a llowa nces, we lfare fac ilities viz., lea ve rules, the enc ashment,
the LFC/ LTC, Medical fac ilities etc .,
Part III: The issues concerning Lady Office rs.
Part IV: Superannua tion Pension, Provident Fund, Gratuity Etc ., inc luding a ll thebenefits that are to be ex tended to retirees in the Bank ing Industry
Part V: Non monetary issues, compa rable posit ion in the Government and i ts
exte nsion etc ., issues suc h as the working hours, 5 days we ek e tc .,
Part VI: General Bilateral Relationship
PART I
SALARY AND ALLOWANCES: BASIC PAY:
Date of effect 01.11.2012
The last co up le of revisions were a n exercise o f merg ing of DA p ayab le up to a
certain level of CPI with Basic Pay and thereafter providing certain cushion (load)
for the c onstruc tion of the sc a les with ap p rop ria te Increm ent patte rn.
We need to take a fresh look at the wa y the sca les have to b e co nstructed with a
view to have higher start to ensure that the promotion provides reasonable
com pensation to officers in com pa rison with awa rd staff sca le. The higher start will
provide p rop er differentials on p rom otion and mo tiva tion for promotion.
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The span o f the scale s should b e red esigned to ensure tha t the re is continuity in the
d rawing o f the increme nt without b rea k even if the p romotions a re no t assured to a ll
the O ffic ers. One way o f ac hieving this could b e throug h the integ rat ion o f the
sca les a nd the o ther one wo uld b e to elonga te the e xisting sc ales with annua l
increments.
We te nta tively sugg est the m erger of scales to red uc e num be r of scales in tune with
the 6th Pay Com mission. Further, there should be a utom atic m ovement to the p ay of
immediate next h igher scale in the revised two scale format . Acc ordingly , we
sugg est tha t the p resent 7 scale s be red uced to 2 sc a les as follows:
Sca le I Ma nager Grad e Integra tion of the p resent Sca le I to IV
Sca le II Exec utives Grade Inte g ra tion o f Sc a le V, VI & VII
GRADE PAY:
In orde r to provide higher em olume nts on promotion as ha s be en do ne in the ca se
of the Government serva nts a t eve ry scale/ grad e, we should introd uce Grad e Pay,
w hic h w ill b e a so rt o f inc entive to the sup e rviso ry c a d re fo r ta king hig he r
responsib ilities in the bank. It m ay b e rec ollec ted that, until the introd uc tion of Pillai
Committee Recommendations, the banks had a system of providing postallowances in va rious forms which wa s taking ca re of the higher responsibilities and
was prov id ing t remendous amount of sat isfac t ion to superv isory cadre. Bank
Office rs were also com pe nsa ted ea rlier in c ase o f transfer from Sta te to Sta te.
The q uantum o f grad e p ay should co mm ensurate with a nd c ould b e related to the
revised sc ales a nd refixed at the end of ea ch scale w ithin the m erged sca le. The
grad e p ay should b e trea ted as pay fo r all purposes.
DEARNESS ALLOWANCE:
The existing Dea rness Allowa nce is based on a formula arrive d through the merger
of index at every rev ision. Taking into acc ount the unabated price rise and
mo unting inflation a nd the c asc ad ing effect tha t it has brought on the real va lue of
compensation though stated to be 100% need to be relooked as the erosion has
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hurt eve ryone. Henc e the neutraliza tion should be approp ria tely inc rea sed from the
present level. It is a mere arithmetical calculation and hence suffers from several
inequ ities. The ineq uities sho uld b e rec tified by rationa lizing the existing fo rmula for
the purpose of calculat ion of the Dearness Allowance. The f irst and foremost
consid eration should be to refix the c om p ensa tion rate for every po int o f inc rea se.
The c urrent ra te o f 0.15 pe r slab of 4 p oints should b e re-fixed for the p urpose o f p ost
me rger neutra liza tion instea d o f working o ut me re a rithmetica l eq ua tion. To be
specific the neutralization which is at present 100% should now be increased to
125%. The c onve rsion fac tor shou ld be rec alc ulated a ccording ly.
The inflation figures a re now a rrive d a t fo rtnightly basis in o rd er to wo rkout th e
ec onom ic g row th o f the c ountry. The infla tion is on a d ay to day b asis and the
pe riod ic ity of p rice fluc tuation is on da y to da y b asis and in c ertain instance it is on
hourly basis. There ha s been no instanc e o f the index com ing do wn in the la st
seve ra l yea rs and it has bee n on the increase. The inflation should be c om pensated
then and there only. We feel that,onc e the figures are ava ilable for the purpo se of
calculation of the monthly index the Dearness Allowance should be worked out
and the c om pensation pa ssed on to the wo rkforce , on a mo nthly b asis pe r point of
increase
Thanks to the introduc tion of tec hnolog y in b anking system the HRMS d ep a rtme ntsa re e quipped with wonde rful software a nd ce ntralized pa yment system , where the
co mp ensation is ca lculated within no time and the sam e is being pa ssed on to the
mem be rs of the staff in almost all the ba nks. Henc e, there is no problem in shifting
over from the current system of quarterly revision of dearness allowance to the
monthly revision. This is one wa y o f reasona bly p rotec ting the rea l wa ge s of the
wo rkforce in the industry. The de lay in announc ing the ind ex figures should be
com pensated by pa ying arrea rs for the m onth the index figure rela tes.
Example: - For the month of June the figures are released on 31st July and DA is
a p plic a ble w ith e ffe c t fro m 1st August. We sug gest tha t the DA should be
ap plica ble w ith retrospe c tive effect from 1st July to ensure virtual c om pe nsa tion for
the infla tion.
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MERGER OF INDEX FOR THE PURPOSE OF CONSTRUCTION OF SCALES:
We propose that the average consumer price index for industrial workers for the quarter
ending 30th Sep tem ber 2012 which wa s a t 4876 (1960=100) (round ed off) be ta ken fo r the
purpose o f merger of Dearness Allow ance for construction of Sc a les.
AUTOMATIC MERGER OF DEARNESS ALLOWANCE:
In line w ith the c onc ep t of p a y Com mission rec omm end a tions there should be mid
review of the scales by merging Dearness Allowance payable at the end of 2
years. To b e spec ific the revision d ate is 01.11.2012 up to 2 years i.e., on 30th
April 2015 the Dea rness Allow ance p aya b le to b e m erged and pa id as revised pa y.
The Princ iples ado p ted by the Pay Commission for the pu rpo se of m erger of DA an d
other allowa nc es should b e fo llowed Muta tis Mutand is in ca se o f Bank Employees.
PROFESSIONAL QUALIFICATION PAY:
At present the Professional Qualif ica t ion Pay is paid only in respec t of CAIIB.
However, with the passage of time revolutionary changes have taken place in the
ma tter o f b anking business. The d iversifica tion , whic h we have witnessed , ca lls for
spe c ia lization in different a ca de mic fields. We the refore a re of the o p inion that the
officers should be ade quate ly c om pe nsa ted for the va rious p rofessiona l
qualifications they possess during their career in the bank apart from the existing
CAIIB qua lifica tions.
We p rop ose tha t the existing pa ttern should b e revised a s under:-
EXISTING REVISED
Part I One increm ent One increm ent
Part II One inc reme nt Two inc rements.
The current system of pa yment o f PQP should b e revised a s und er:
Part I - The PQP should be equa l to the am ount of the last one inc reme nt drawn at
the end of the new scale.
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Part II - The PQP should b e equa l to 2 increm ents in the last stag e of the scale (Part I
- one increment and Part II two inc rem ents total 3 inc remen ts)
The a dd itiona l inc rem ents shall be g ranted for ac quiring add itiona l qua lifica tions in
Business Mana gem ent, CISA, Trea sury Ma na gem ent, Technolo gy, MCA, LLB, RISK,
Audit, Costing, HR etc and be considered for sanction of PQP on reaching
maximum in the scale.
FIXED PERSONAL PAY (FPP):
We propose that FPP should be treated on par with PQP in respec t of f itment of
Basic Pay on promo tion and pa yment o f all other allowa nce s. The fixed cha rac ter
now in existence should be done away w ith. The FPP sha ll be reworked on
promotion. FPP should be de freezed and the last increm ent in tha t sc ale co upledwith DA should b e pa id .
HOUSE RENT ALLOWANCE:
It is incumbent on the part of the banks to provide ac commo da tion to eac h and
every off icer wherever he is posted or wherever he desires to have his family
ac co mm od ated with a view to ensure that the med ic al and e duc a tional fac ilities
are no t de nied to them.
He should have the op tion of cho osing the drawing of HRA or a va iling the housing
accommodat ion provided by the Bank. HRA should be pa id as per the 6th Pay
com mission on a rea wise ba sis.
The g ap be twee n the Housing a cc om mod a tion p rovided on lea se and the HRA
pa id to them in lieu o f Housing ac commod a tion is so wide that the Officers feel that
they a re d isc rimina ted whe n they o pt for the rec eipt o f HRA in lieu o f the lea sed
housing ac com mo da tion. Hence the pa yment of HRA should have c orrelation to
the p reva iling lea sed rentals.
The practice of de duc ting a po rtion of the Basic Pay towa rd s the qua rters / leased
ac co mm od ation / furniture p rovide d should b e d one a way with.
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HRA ON CAPITAL COST BASIS:
For the purpose o f ca lculation o f HRA on c ap ita l cost ba sis the p resen t ma rket value
of the p rop erty should be rec koned instea d of the original co st of c onstruc tion.
HRA linked to rent rec eipt / ca pital c ost to be enha nce d to 200% of the House Rent
Allowance.
USE OF OWN HOUSE IN LIEU OF LEASED ACCOMMODATION:
The O fficer should have a n op tion to o ffer his ow n house to the Bank for the purpose
of lea sing and oc cup y the sam e to avoid freq uent shifting of the house and also
have the o pportunity of living in his ow n house.
OFFICIATING PAY:
The existing rate of o ffic iating a llow anc e should b e re-fixed a nd the paltry
pe rce ntag e prevailing at present should be revised to 10% of the last stag e of the
Sca le. This pa y should b e pa id to a ll the o ffice rs who officiate in the next higher
grad e even for a period of less than 7 da ys. The officiating allowance should be
trea ted as pa rt of the p ay fo r DA supe rannua tion purpo se a lso.
DIFFERENTIAL ON PROMOTION:
The differential on promo tion from one Sca le to other in the Office rs Cad re should
be atlea st eq uivalent to 20% of the Basic Pay and allowances last dra wn. In any
case the differential should not be lower than the officiating allowance to ensure
aga inst red uc tion o f emo luments on p rom otion. A co mp rehensive fitme nt formula
should b e evo lved with the ne gotiat ing unions in the industry leve l.
CITY COMPENSATORY ALLOWANCE:
The existing c lassific a tion o f cen tre should b e review ed c lassified in the fo llowing
categories:-
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CATEGORY CENTRE
I Majo r Metro Kolkata , Delhi,Mumba i, Che nna i,
Bang alore, Hyderaba d, Ahmed ab ad ,
Pune, etc .,
II Me tros (Area I) All c entres with m ore tha n 12 lakh
Pop ulation and Sta te Ca pitals
III Centres with po pula tion of 1 lakh and above and all Distric t Hea d quarters
RATES OF CITY COM PENSATORY ALLOWANCE:
Ca teg ory I - 20% of Basic Pay
Ca tegory II - 17.5% of Basic Pay
Cate gory III - 15% of Basic Pay
INCENTIVES FOR WORKING IN RURAL CENTERS AND OTHER SENSITIVE AREAS:
It is necessary to p rovide inc entives to a ll those officers who are po sted to serve in
the rural a rea s/ most sensitive a nd d ifficu lt area s/ a rea s with sec urity p rob lem s/ area s
of w ea ther ab erra tions in d ifferent p a rts of the country.
We p rop ose tha t the following incentive ma y be p rovided to the office r c onc erned ;
An a dd itiona l allow ance to the exten t of 20% of the Basic Pay drawn b y him;
Weigh tag e fo r the purpose of Prom otion
Choice plac e o f p osting on c omp letion o f the a ssign me nt
An add itiona l LTC to ena ble him to m ee t the family etc ;
CLOSING ALLOWANCE:
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All office rs irrespec tive of the o ffice o f posting/ i.e . b ranc h/ administra tive office e tc .,
should be paid the c losing allowance equal to 15 days of their salary once in 3
months.
HALTING AND TRAVELLING ALLOWANCES
a . Rev iew and ra tiona liza tion of Halting/ Boa rd ing / Travelling e xpenses.
b . The Boa rd ing expenses should be linked to lodg ing expe nses.
c . The existing system of a llowing banks to fix the rates of re imbursement
period ica lly should c ontinue w ith a p rov ision to review them a nnua lly.
d . All officers should be eligible for travel by Air, irrespective of distance with
Executive Cla ss entitleme nt fo r Sen ior Ma nagem ent.
e. For p laces not connected by Air, Officers should be permit ted to travel by
AC-Ist Cla ss by rail.
DATE OF SANCTION OF ANNUAL INCREMENTS:
Inc rements falling due b etw ee n 1st Janua ry to 30th June should b e san c tioned on 1st
January of the yea r itself. Inc rements falling due b etween 1st July to 31st December
should b e sa nctioned o n 1st July of the yea r itself.
PROTECTION OF ANNUAL INCREMENTS STAGNATION RELEASED:
An a llowa nce eq ual to the a mount o f la st drawn increm ent should be granted
every yea r a fter rea ch ing the m aximum in the sc ale . The a llowa nce so g ran ted
should be t rea ted as Basic Pay fo r a ll purposes.
REMOVAL OF EMBARGO ON SANCTION OF STAGNATION INCREMENTS, PQP AND
AUTOMATIC MOVEMENT:
The p resent Emb argo in rega rd to the sanc tion of stag na tion inc rement, a utoma tic
mov em ent and PQP in respe c t of those office rs who have refused p romotion
should be rem oved .
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PART- II
PERQUISITES, OTHER ALLOWANCES AND WELFARE FACILITIES:
The perquisites a nd othe r a llowa nces as we ll a s we lfare fa c ilities p rovided by the
ba nks and settled at the industry level should not be reckoned for the purpose of
arriving a t the c ost of w age revision. It is an essent ial a rea of func tiona l expend iture,
as in the case o f business p rom otion in o ther sec tors of the ec onomy. We the refo re
propose that the follow ing bene fits should be trea ted under this hea d ing . The Bank
should bea r the tax on p erqu isites.
POST ALLOWANCE:
Post a llowa nc e should be reintrod uc ed in o rder to p rovide incentive for officers for
working in the m ost co m pe titive sec tor, to co m pensa te him for taking a dditiona l
loa d on a ccount o f diversific ation, technology initiative etc .,
i. 25% of the Basic Pay should be paid as post al lowance to all designated
off ice rs viz., Branc h Managers, Divisiona l Ma na gers, etc .,
ii. 20% of the basic to othe r offic ers.
RISK ALLOWANCE :
Risk Allowance should be introduced to provide cover to all lending risks to all
sanc tioning a utho rities a t a ll g rades as p resent dynamics of banking involve s va rious
types of risks beyond the normal p rudenc e of ba nking.
Disturbed Area Allowa nce :
Disturbanc e Area Allowanc e o f 20% of Ba sic Pay should b e p a id to o ffice rs wo rking
in the b ra nches which co me s unde r disturbe d a rea a nd Terrorist p rone a rea s
ca lled as The Red Co rrido r.
MEDICAL REIMBURSEMENT:
The e xisting Me d ica l benefits should b e rationalized as und er:
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The fam ily of the Officer, whic h include s the spo use, the p arents, the d ep end ent
unmarried c hildren including step c hildren and leg ally a d op ted c hildren, physically
cha lleng ed b rothers / sisters w ith 40% or m ore d isab ility should be extend ed 100%
reimbursement for the purpose of hospitalization as well as domiciliary treatment.
This shou ld c ontinue e ven a fter ret irement.
The d efinition should be fu rther enlarged to inc lude d eserted widow ed sisters ,
daughters and unmarried brothers and sisters without physical disability.
Reimburseme nt of annual me dical a id should be enha nce d.
The IBA should also take imm ed ia te step s to rev ise the existing norms in respec t of
the inco me c riteria in resp ec t of the d ep end ents a nd the same should b e inc rea sed
suitably.
HOSPITALISATION CHARGES:
Reimbursement of domiciliary treatment and hospitalization diagnostic
investigations etc., should be actual expenditure incurred by delinking from the
AIIMS rates. The rate s so fixed should be revised a nnually.
Comprehensive Review to be made to include Hi-tech investigations, surgeries and
a ilme nts which a re no t presen tly c ove red und er the scheme. Reimb ursem ent
towards ailments under Dental, Ophthalmic, Orthopedics, which do not require
hosp ita liza tion should a lso b e c onsidered und er the schem e.
Ma ster Hea lth Che ck-up fo r the officer an d his / her spouse onc e in two yea rs if the
off ice r s age is less tha n 50 and every yea r if the o ffice r c rosses 50 yea rs of a ge.
LEAVE FARE CONCESSION:
We nee d to review the e xisting scheme in a co mp rehensive manner.
The entitled m od e of travel should b e m ad e a s a ir travel to a ll office rs
For Senior Ma nag em ent Cadre it c an be exec utive c lass.
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The e nc ashme nt of leave fare c onc ession should b e the a c tual expenditure he /
she w ould have incurred had the o ffic er trave led ac tually by entitled class.
Foreign Travel to be a llowe d within the entitlement upto the m aximum d istanc e
permissible in Ind ia .
The IBA should ta ke up with the Gov ernme nt and see k exem p tion from payme nt of
inc om e ta x whenever the amo unt is draw n on the ba sis of enc ashme nt.
SPECIAL ALLOWANCES:
The e xisting spec ial allow a nces pa id to d ifferent p lac es should be revisited and
rev ised in a c om p rehensive manner fo r exam ple in p lac es like J &K, Sikkim , North
Eastern Sta tes, Hima cha l Pradesh, Anda man & Nic obar Islands, Laksha dweep, the
red c orridor and other sim ilar ce nters.
The hardship allowanc e should be redefined and new areas should be ad de d on
the ba sis of the norms alread y available. It should also be revised wherever it is
alrea dy being pa id.
All the office rs serving in those places should also ge t these allowances in orde r to
meet the higher cost of liv ing etc., and wherever i t is pa id, it should be suitably
reviewed.
EXGRATIA:
The c onc ep t of minimum exgratia should b e reintrod uc ed in a ra tional ma nner.
Exgra tia is no w ava ilab le to all the Employees in Priva te Sec tor Banks, Foreign Banks
etc ., which has c reated a serious d i fferentia l in the emoluments between the
workforce in the Public Sec tor a nd o ther sec tors. It is a lso prevalent in Gov t. Sec tor
suc h a s Ra ilways/ Posta l and in Pub lic Sec tor Und erta king s. Henc e, an a mount
eq uivalent to not less than one mo nths gross salary should be pa id as exgratia to
all.
COMMERCIAL BANKING ALLOWANCE:
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In view of the onerous responsibilities of conducting commercial banking operations
involving risk, officers should be paid Commercial Banking Allowance as prevailing
in the Reserve Bank of India. (Cent ral Banking Allowa nc e)
PART III
ISSUES CONC ERNING LADY OFFICERS:
Thanks to the a wa rene ss tha t has b ee n c rea ted am ong st the wo me n in the c ountry
ove r the last seve ral yea rs to exce l on pa r with me n in all walks of life, the intake of
the lady o fficers in the banking ind ustry ha s ve ry sub stantially inc rea sed in a lmost a ll
the ba nks. It is nea rly 50% of the total rec ruitment in som e of the ba nks and it m ay
inc rea se in due co urse d ue to the c hang ing d emo graphic profile of em ployab le
ed uca ted youth.
They are a lso to-d ay a ccep ting cha lleng ing p osting s, transfers, and spec ia lized
areas in the banks without any hesitation. They are now in a posit ion to ac cep t
higher responsib ility in their c a ree r and look to hea d the institutions eve ntua lly.
The Office rs Orga nisations have be en rec eiving a num be r o f rep resenta tions,
memorandum and also resolutions highlighting the problems of the lady officers
through the va rious c onfe renc es a s we ll a s the Wome n s wing. Based o n these
feelers a nd sug ge stions, it ha s be en de c id ed to e xc lusively de vote a c hapte r to
consider their special situation and demand appropriate relief from the Indian
Banks Assoc iation .
(a ) PLACEMENT AND POSTINGS:
One of the major concerns of the lady Officers has been their placements and
posting s in the ba nks. The c ountry is yet to dev elop in the ma tter of infrastruc ture,
the facilities exclusively to the lady members in different places. Hence, a separate
Transfer / place ment Policy taking into ac co unt the problems of the lad y off icers
should be de signed and forwa rde d to the me mb er b anks by IBA. The IT sec tor is a
classic al exam ple where a lot of symp athy is show n to the wom en em ployee s in the
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matter of post ing and placem ent in order to get the best from them. Yet another
ma jor consid eration is the ir sa fety a nd sec urity a t d ifferent c en ters.
The lady O ffice rs need to be e xtend ed the benefit of flexi-time and flexi-place
conc ep t. They should be g iven c hoice o f their place a t the time of transfer and
plac eme nt keeping their d ifficulties in view. The Banks should be ad vised to kee p
one exclusive lady O ffic er in c harge of Personnel Adm inistra tion in all the Banks to
a ttend to their exclusive issues inc lud ing tra nsfer, pla cem ent etc .
The lad y Offic ers whose spo uses are working elsewhe re should be a cc om m od ate d
a t the sam e plac e. Simila rly, where the wife a nd husba nd a re em ployed in the
sam e b ank, they should also b e a c c omm od ated a t the sam e c entre.
(b ) PROVISION OF CRECHE FACILITY:
The Banks should provide Crec he fac ility for the be nefit of children of lad y Offic ers
who a re required to a ttend to office as the c hildren need pa rental attention.
(c ) LEAVE FACILITIES:
The e xisting Ma ternity Lea ve of 6 mo nths at a time should a lso b e e xtende d in c a se
of a dop tion of a c hild (from p resent 3 months).
3 months a dd itiona l sic k leave be sanc tione d afte r at taining the ag e o f 45 yea rs as
lady officers are prone to d isea ses a t this age.
Child Care leave as applicable to the Central Government employees should be
ma de ava ilab le to lad y offic ers.
(d) PATERNITY LEAVE:
The Pa ternity leave o f 30 days should b e introd uc ed for office rs on 2 oc casions.
(e ) LFC/ HTC:
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Spo use em ployed in the sam e ba nk to b e pe rmitted to a va il LFC sep arately as pe r
ind ividual elig ibility. The lady officers should b e p ermitted to take their dep endent
pa rents and parents in law a long with them o n LFC/ LTC.
(f) DEFINITION OF FAMILY:
The p a rents, fathe r-in-law & mo ther-in-la w, d ep end ent of a n o ffice r, sons an d
daug hters, brothers and sisters d ivo rced or d eserted , daughters or sisters etc to b e
trea ted as me mbe rs of fa mily for the p urpose of LFC/ HTC a nd me dica l fa c ilities.
PART IV
SUPERANNUATION BENEFITS:
The em ployer has an ob liga tion to e nsure tha t the em ployee s having served the
institution almost life time are provided adequate superannuation benefits so that
they are able to l ive a life o f dignity, honour and ab ove all a comfortable life for
hav ing g iven the ir bloo d and swea t to the institution.
The sup erannuation e xp end iture c anno t b e co nside red as a c ost a nd b e m ad e
subjec t ma tter of neg otiations. The com pensation paid in the form o f
superannua tion have been desc ribed by the highest court o f the country as
deferred wages paid to all those who served the institution with devotion and
conviction for ensuring the prosperity, not only for the institution but the nation as
well.
At present, the Banking Industry has prov ided for the benefit o f Gratuity, the
Prov id ent Fund or Pen sion, Leave Enca shment a t the time o f retirem ent, Med ic al
facilities, and several other welfare facilities.
We strongly feel that there has to be an exclusive and a comprehensive dialogue
between the Officers Organisations and IBA as to the improvements that are
req uired to b e m ade in the p resent supe rannua tion be nefits.
PENSION:
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The Banking Ind ustry has introd uc ed the Pension Scheme w ith effe c t from 1.1.1986
after protracted discussions and negotiations between the Officers
Organiza tions/ unions and the Ind ian Banks Assoc iation in the yea r 1993. The
Pension Schem e ha s rem a ined as such sinc e the b eg inning of the schem e in the
Banking industry.
The Gove rnment serva nts have seen two pay com missions during this period and if
we conside r the da te o f imp lementa tion as 1.1.1986 the re have been 3 Pay
Commission reports providing very comprehensive improvements in the
sup erannu ation b enefits to the c ivil serva nts in the G overnment.
The Pa y Co mm issio ns ha ve ta ken a very p ra gm a tic v ie w in the la st 3 Pa y
Co mm ission Rep orts and have ma de very sub stantia l cha nges in the scheme. There
is a need to ta ke the same view a s regards the Pensione rs in the b anking ind ustry as
well.
The period ical review o f Pension schem e is the respon sibility of the Ma na g ements of
the Banks. It cannot be tagged to b ipartite se t tlements which has a dverse ly
affected the pensioners and ult ima tely the pension schem e rema in as an archa ic
one in the Banking Industry. As a nd when the re a re imp roveme nts in the c entral
Govt. Pension scheme, the IBA should invite the negotiating unions and implement
the same
Pension consists of the follow ing parts:-
a . Basic Pension
b . Commutation
c . Dea rness Allowa nce
The Basic Pension is ca lculated on the basis of the last drawn 10 mo nths ave rag e
pa y by the retiree s or the last p ay draw n wh icheve r is beneficial to the retiree . The
formula has rem a ined the same .
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The Go vernme nt servants have b ee n p rovided the b enefit of up da ting of p ension
at periodical intervals to provide sufficient cushion against inflation and cost of
living.
Dearness Allowance be converted as Basic Pension as and when the cost of living
ind ex inc rea ses by a bo ut 50%. The Pensioner will therefo re have the be nefit o f
enha nc ed Dea rness Allow anc e a nd it p rov ides a small c ushion ag a inst the infla tion.
The other method ad op ted by the Government is to bring all the pensioners on a
unifo rm sca le by merg ing the Dearness Allowance a t the time o f rev ision as
recommended by the Pay Commission. The fac ility of upgradat ion of pension
above the age of 80 years be made available to Bank Officers as prevalent in
Go vernment. We the refo re suggest a s follows:-
BASIC PENSION:
Im prove the presen t Basic Pen sion in respe c t o f a ll the ea rlier retiree s on the basis of
the merger of Dearness Allowance at a level to be decided by mutual
und erstand ing b etwee n the IBA a nd the Offic ers organizations and unions.
COMMUTATION:
The p resent ra te o f Commuta tion ha s to be rev ised to 40% with the existing
conve rsion fac to r. The full pension b e resto red a fte r 10 yea rs.
DEARNESS ALLOWANCE:
The DA formula and neu traliza tion should b e a t p a r with serving officers.
GENERAL:
The v olunta ry retirem ent p rov ide d in the Officers Serv ice Rules should be
inc orporated in the Pension rules and they should also be made elig ible for Pension
without any disc rimina tion .
Pension sche me should b e extende d to all those who have be en denied ea rlier on
the basis of the misinterpretation of the understandings reached with IBA in
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particular those who retired under voluntary retirement scheme as per the service
reg ulations / resigned a fter co mp leting 20 yea rs.
The office rs who joined the bank be twee n 01.11.1993 and 26.01.1996 have to be
cove red und er the pension reg ula tions.
Prov ision of a dd itiona l service as per the Pension Regulations to the extent of 5 yea rs
should be e xtend ed to e ac h an d every retiree s in the ba nking industry.
Those having relaxation of ag e at the time of rec ruitment on ac co unt o f disab il ity
etc., also to be extende d ad ditiona l p eriod of 5 yea rs to his / her service qua lifying
for pension.
Also, fo r Ex-servicem en the ir past services rend ered in the Armed Force should be
added to his / her service fo r qua lifying for pension.
FAMILY PENSION:
The Fam ily Pension should be on pa r with the Government and be at 30% of last
drawn pa y b y the offic er ac ross the bo ard to every one. The reg ular fam ily pension
will be payable fo r 10 yea rs or till the 70th year of notional ag e of the de ce ased .
NEW PENSION SCHEME
The em ployees and office rs who joined the ba nking ind ustry on o r afte r 01.04.2010
should be go verned by the original pension settleme nt signed on 29th Oc tob er 1993
and Ga zetted in the yea r 1995.
GRATUITY:
The G ra tuity should be pa id a t the ra te o f one m onth sa lary and allowances without
any c eiling . The g ra tuity should b e c om pletely exem pt from p ayment of incom e
tax.
PROVIDENT FUND:
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The Provident Fund should be at the ra te of 12% of the tota l sala ry a nd allowances.
The Provident Fund should be p ayable to all em ploye es.
ENCASHMENT OF LEAVE:
Enc ashme nt o f entire lea ve at c red it sho uld also be pe rmitted on resigna tion,
rem ova l and c om pulsory retirem ent.
The existing ceiling on enc ashment of lea ve should be e nhanc ed to 360 da ys at the
time of resigna tion / supe rannua tion. The entire am ount should be exemp ted from
inc om e ta x as in the c ase o f the Central Gove rnment Emp loyees.
MEDICAL BENEFIT SCHEME:
A c om p rehensive Me dica l Schem e for pe nsione rs/ retiree s should b e fram ed and
introd uce d in all the ba nks as available now in the ca se of exec utive direc tors and
CMDs of the Banks.
WELFARE ACTIVITIES:
A sep ara te a lloc ation o f funds for improvem ents to welfa re o f the p ensioners should
be m a de eve ry yea r. The fa c ilities like Holiday Hom e, c linic s, Transit House e tc .,
shou ld b e m ade e lig ible for pe nsioners also.
LFC/ HTC FACILITY:
LFC / HTC Fa c ility should be e xtended to the retiree s a lso a t par with serving
employees.
Part V
NON - MONETORY ISSUES RELATING TO WORKING ENVIRONMENT ETC.,
GENERAL ENVIRONMENT AMBIENCE WORKING HOURS ETC.,
It is the duty of the banks to provide an appropriate environment, ambience and
above a ll the HR syste ms a t a ll branc hes. The office rs frate rnity should a lso b e
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prov ided with a ll amenities suc h a s sup ply of re freshme nt, be verage s e tc ., inside the
branc h p rem ises in view o f the pressure o f work, long stay in the office etc .,
The environment should a fford an op po rtunity for full exposure of the c rea tivity a nd
also e fficienc y of the officers while d ischa rg ing their duties to the custom ers a s we ll
as the b ranc hes.
The b anking industry is now eq uip ped with excellent techno logy adv anc ement,
continuous updation of computers, servers etc., there is therefore a need for the
Ma nage ment to ad op t approp ria te HR initia tive s to encourage and m otivate the
Office rs to a c quire know ledge in these fields and g ive the ir best to the institution.
The Banking Ind ustry is en trusted w ith the respo nsib ility o f enha nc ing the ec onomic
prosperity of the country and also the GDP growth with a view to enhance thestand a rd o f living o f the comm on ma n. The ma na gem ent should ensure tha t
reasonable working hours are fixed rather than pressurizing the officers which may
lead to fa ilure a nd resultant loss of he alth or upset the officers routine. Henc e, the
working hours for officers shou ld b e d efined and reg ulated .
5 DAYS WEEK:
Five Day wee k is alrea dy ava ilable in the interna tional ba nking system. It is alsoavailable in our c ountry in RBI, Cen tral a nd Sta te Governme nts and in Public Sec tor
Und ertakings. Hence, it sho uld be introd uced imme d iately in the entire ba nking
industry.
The working hours should not exce ed 36.5 ho urs in a wee k. The da ily wo rking hours
should not b e m ore tha n 6.5 hours in the norma l course.
Any wo rking hours, more tha n 7 hours a da y, should be com pe nsa ted mo neta rily to
the e xtent o f twice the a c tual hourly salary in the normal c ourse.
They should a lso b e m ad e eligible to take w eekly off to the extent o f ad ditiona l
hours of d uty rend ered b y them.
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The Office rs who are ca lled upon to work on wee kly-off da ys and holida ys, should
be comp ensated as above and in a ddition be permit ted a com pensatory off on a
da te co nvenient to them and such we ekly offs b e c red ited to the lea ve a cc ount.
LEAVE RULES:
The existing leave rules will have to be comprehensively rev iewed and made
officers frien dly an d flexible as av a ilab le in seve ral o ther sec tors of the ec onom y.
The ava iling of leave should be ma de flexible. The office rs should be free to ava il
the lea ve as and when requ ired . They should also have the be nefit o f splitting the
day into hours and half-day, fu ll-day etc ., and longer period as in the case of
seve ral o ther co rporate s.
TYPES OF LEAVE:
The e xisting system of m a inta ining sep ara te leav e a cc ounts ma y be done away
with. A co mm on a cc ount of leave should b e introd uce d whe re they should b e
able to com bine all types of leave into total numb er of d ays of leave available to
them and use the same as p er their own req uirement.
Howe ver for the p urpo se o f be tter understanding w e re-prod uce the typ es of lea ve
ava ilab le and the need to review the sam e.
a . Ca sua l lea ve should be inc rea sed to 15 days;
b . Privileg e Lea ve 33 days in a ye a r.
c . Sick Lea ve 15 days in a yea r ( on full pa y) without a ny c eiling;
d . Restric ted holida ys: A minimum of 10 da ys in a year for festivals and other
persona l, relig ious functions etc ., m ay be p ermitted to be av ailed as holidays
by the o fficers.
e. Spec ial lea ve fo r stud y, sports, soc ia l and cultural ac tivities
f. Leave o n loss of p ay
g . Sab ba tica l leave
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INTRODUCTION OF LEAVE BANK:
The leave so c alculated should b e c red ited to the lea ve a cc ount of the o fficer on a
co nsolida ted ba sis. The office r should be eligible to ava il the leave on the ba sis of
his req uirem ent. The intermittent holid ays a nd we ekly offs should b e exclud ed while
sanc tioning lea ve.
The Office r should have the opp ortunity of enc ashing the b alanc e a va ilable in the
consolidated leave account once in a year to the extent of 50% of the leave
ava ilable in his acc ount a t the be ginning o f the sub seq uent yea r. Further, a n officer
should b e pe rmitted to e nca sh the entire leave a t his c red it at the time of retireme nt
inc lud ing sick leave a nd no c eiling should be im po sed for a cc umula tion o f leave.
The o ffice r ma y be permitted to transfer leave to a nothe r office r in c a se o f need for
medical purpose.
OUTSOURCING :
Work done o n a reg ular basis should not be o utsourc ed .
DISCIPLINARY RULES PROCEDURE:
We hav e subm itted a ve ry com prehensive note to the Indian Ban ks Assoc ia tion for
the review of the e xisting c ond uc t rules and p roc ed ure a nd to introd uce c ertain
cha ng es in tune with the c hang ing environm ent. (Copy enc losed ) The issue should
be d isc ussed for impleme nta tion.
ADMINISTRATIVE TRIBUNALS:
The IBA should take up with the G overnme nt, the introd uc tion o f an exclusive
Banking Administra tive Trib unal fo r the b anking Ind ustry in orde r to d ea l with a ll the
serv ice as well as d isc ip linary mat ters in respect of off icers similar to Centra l
Ad ministrative Tribuna l.
Discussion of Disc iplinary Ac tion p roce dure
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An exc lusive exerc ise should be carried out by IBA for b ring ing appropria te
amendments in the Discipline and Appeal Regulations in due consultation with all
the Four Office rs Organ isa tions.
PART VI
GENERAL BILATERAL RELATIONSHIP:
The 7th Joint Note exercise on Officers wage revision when resume, will have a
historical significance in the sense that the Management and the Officers
organizations have come a long way in the structured negotiation systems and
have ma tured enoug h to d ec id e a nd a rrive a t a c om pe nsation whic h is ge nerally
a cc ep ta ble to b oth the p artie s. In the p ro ce ss we ne ed to ha ve a c lea r
demarcation as regards the issues concerning the Officers fraternity and Officers
orga niza tions should ha ve e xclusive right to neg otiate on beha lf of the office rs in the
banking industry. Hence, all the issues connected with both the directly recruited
officers as well as the Officers promoted from clerical cadre have to be decided
betwee n the IBA and the Offic ers organizations. For examp le, the fitme nt formula ,
which is now in a state of c onfusion, will have to b e d iscussed and settled between
the Off ic ers organ iza tions and the IBA. Similarly the issues of p romo tion p olic y,
transfer policy, etc., will have to be settled bilaterally with Officers organizationsboth a t the b ank a nd the ind ustry level.
STRUCTURED FORUM AND ACCOUNTABILITY FOR SETTLEMENT:
The Office rs o rgan iza tions have bee n holding d iscussions and neg otia tions with th e
representa tives of the Ind ian Banks Assoc iation over the last 40 ye ars. The system
has g ot itself strea mlined during the la st 3 de ca des and the issues tha t a re relate d to
the compensation and also certain issues of urgent nature are brought to the IBA
forum a nd de c id ed betwe en b o th the p arties. There is a nee d to structure this
conventional arrangement and ensure that all issues affecting the industry and the
impac t o f the d irec tives o f the outside agenc ies on the o fficers fraternity are
brought to this structured forum and de cided to avoid unnece ssary irritations in
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ind ustria l rela tions in the b anking industry. The p roper deta iled and c od ified a ccount
of all disc ussion should b e e xcha nge d .
The struc tured fo rum s are alrea dy in vogue in all the b anks. The issues referred to
the banks by the IBA and the Government is discussed at the bank level
ne gotia tions b y ea ch o rg aniza tio n whic h le ad s to d isc re pa nc ie s in the
im plementation of any understand ings rea ched be twe en the o rganiza tions and the
management.
Certain Industry level issues have to be discussed at IBA / Government Level.
Henc e, there is a need to have structured forum at IBA / Government for pe riod ica l
d iscussions. Henc e, there is a need to b ring all suc h issues/ d irec tives of the IBA an d
the G overnment b efore a struc tured me eting and settle to avo id freq uent a g itation
and industria l unrest in the b anking ind ustry.
RECRUITMENT / RETIREMENT:
The Banking ind ustry is in d old rums due to ina deq ua cy o f the workforce. The
lopsided po lic ies and the conventional approach o f the Government and the
Managements of the banks at the instance of the IBA and the Ministry of Finance
have created a big ga p in the averag e ag e of the various groups of em ployees in
the ba nks. There we re no rec ruitments virtually for mo re tha n 2 de ca de s a nd as a
result, the ag e d ifferenc e be tween the o ld em ployee a nd the new em ployee is so
wide tha t the ave rag e a ge o f the workforc e is adve rsely a ffec ted .
A close review of the situation should be considered and necessary steps to be
taken fo r a p ra gm a tic suc cession p lan. The large sca le retirem ent is adv ersely
affecting the workforce since experienced hands are getting retired where as a
la rge c hunk of new rec ruits a re fo rced to take up higher positions a nd the
prom otions are g etting a c celerated in c om parison w ith the ea rlier situation the reb y
causing serious problems of seasoning and grooming of higher level officers in the
banking industry.
A c rash p rog ramme should be w orked out to tac kle this serious issue.
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In view of shorta ge of m a npo wer, the retirem ent a ge should b e re-fixed . We have
the following suggestions:-
VOLUNTARY RETIREMENT:
Red efine the volunta ry retirem ent and re-fix the m inimum elig ibility for the p urpose.
AGE OF SUPERANNUATION:
The age of sup erannua tion to be ra ised to 65 yea rs for a ll office rs.
WITHHOLDING OF GRATUITY ON RETIREMENT / RELEASE OF TERMINAL BENEFITS :
The present ad hoc system of withholding gratuity a nd harsh de cision to set off the
gratuity amo unt to wa rd s loss caused etc ., should be reviewed keep ing in view , therec ent judicial p ronounc ements. In any c ase, there should not b e stop pa ge or
den ial of g ra tuity to the office rs.
No disc iplina ry ac tion should be initia ted a fter sup erannua tion.
All Terminal be nefits should be relea sed pe nding disciplina ry procee dings if ba nk
fails to c om plete the p roc eed ings b efore sup erannua tion a s is be ing done in the
case o f CBI ca ses being p end ing .
WELFARE FACILITIES:
CEILING :
Present Ceiling of 3% of net profits to be increased to 5% of net profit without any
ceiling.
LIFE COVER :
Suitab le Life Co ver should be ta ken for norma l as we ll as acc identa l death.
REVIEW OF LOANS AND ADVANCES :
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In view of the inc rea se in cost of c onstruc tion of hou se and flats, we need to ha ve a
com prehensive review of House Building Adva nce to officers by suitably e nha nc ing
the lim it to Rs.50 lac s a t Simp le rate of inte rest witho ut a ny slab .
Since the Co nveyance Loa n ha s not b een revised for long, we nee d to e nhanc e
the Ca r Loa n limit to Rs.10 Lac s and Two Whee ler Loa n lim it to Rs.1 lac a t Simp le rate
of interest without a ny slab .
The repa yment of the a bove loa ns should be e xtend ed up to 75 years of a ge .
ROAD TAX ON VEHICLES:
In view of All India transferab ility of office rs, the Roa d tax on vehicles of different
Sta tes sho uld be pa id b y the bank on inter-sta te transfers.
DATE OF RETIREMENT:
Those w ho were b orn on the 1st of a mo nth to b e retired on the last d ay o f the sam e
mo nth, a nd not the previous mo nth.
PROTECTION OF EMOLUMENTS:
The emoluments drawn by an Office r should be protecte d on his transfer from one
place to another.
TRANSPORTATION OF PERSONAL BELONGINGS:
The Banks should take the responsibility for shifting the person al e ffec ts of the o ffice rs
on transfer from one plac e to anothe r. In the a bsenc e of suc h fac ility, the Offic ers
should be reimbursed the full expe nd iture o n c ertifica te b asis.
INCIDENTAL EXPENDITURE ON TRANSFER:
To m ee t ad d itiona l expend iture to wa rd s ed uca tion of c hild ren, housing etc ., officers
should be pa id two mo nths salary to co mp ensate incidental expe nses on transfer.
In case of t ransfer outside the State, 3 months' salary should be paid towards
inc idental expenses. In ca se of transfers to far off centers and the p laces of
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inclement weather and living conditions, there has to be high compensation as
incidental expenditure on transfer.
OTHER ALLOWANCES SUCH AS HILL AND FUEL ETC.
All the a llowances other than what have been covered in the earlier c hapters
should be enhanc ed ap propriately.
AREAS DECLARED AS SEZ/ NEZ/EPZ:
The branches co ming und er the ab ove area s should b e trea ted on pa r with Me tro
Centres for all a llow anc es and perqu isites.
SPECIAL ALLOWANCE TO NORTH EAST, SIKKIM AND OTHER DISTURBED AREAS / NAXA L
PRONE AREAS:
Spec ial allowanc e a s preva iling in Central Government/ RBI fo r Offic ers serving in
these a rea s should b e e xtended to Ba nk Officers.
IMMUNITY FROM TRANSFER POLICY, SPECIAL PRIVILEGES TO OFFICE-BEARERS OF THE
ORGANIZATION:
In view of the po sitive role played by the Offic ers Orga nizations there is a need to
revise the existing arrangements as regards the special leave to the office-bearers
of the orga niza tions. The existing a rrange me nt is g rossly ina deq ua te in c om pa rison
with the size a nd the g row th of the b anking ind ustry and eq ually the mem bership o f
the officers organiza tion the structure o f the orga nization a nd henc e a pp rop ria te
enha nc eme nt in the leave facility nee ds to b e c onside red .
The senior office -be arers of the Office rs orga nizations should have the duty off in
view of the fact that they will be dealing with all the personnel matters relating to
the o ffice rs fraternity and they m ay not be ab le to attend to their deskwork. If the
Office Bearers are denied this facility it would cause great harm to the
officers organizations in the banks.
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The Office -be arers of Assoc ia tions should be extend ed immunity from
transfer/pla cem ent. The Ce ntra l / Sta te level office -be arers should be g iven duty-off
on pa r with wo rkmen orga niza tions. The fac ility is due for review.
THE LOAD FACTOR:
The neg ot iations on c ost of sa lary revision shou ld b e c onfined on ly for the p urpose o f
dec id ing the loa d fac tor in respe c t of Basic Pay a nd Dearness Allowa nc e.
DATE OF EFFECT:
The da te of effec t for implementation of the settlem ent o n the ba sis of the c harter
of dem and s should b e from 1.11.2012.
RIGHT TO SUBMIT SUPPLEMENTARY CHARTER:
The Office rs Orga niza tions reserve the right to inc lude , am end or a lter the
dem ands, as ma de out in the Cha rter during the c ourse of b ilate ral d iscussions.
All ano malies arising o ut o f Salary Rev ision sho uld b e resolved irrespec tive of the cost
fac tor involved .
Long pend ing issues on regula ted wo rking hours, 5 days week a nd standa rd iza tion
of retireme nt be nefits and imp rovem ent in co mp assiona te App oint Sche me should
be d isc ussed be fore c om menc em ent of reg ula r wa ge revision ne go tia tions.
(P.K.SARKAR) (D.S. RISHABADAS) (S. NAGARAJ)
CONVENOR GENERAL SECRETARY GENERAL SECRETARY
UFBU AIBOC AIBOA
(K.K. NAIR) (S. U. DESHPANDE)
GENERAL SECRETARY GENERAL SECRETARY
INBOC NOBO
Mumbai 30.10.12
---------------------------------------------
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ANNEXURE
DISCIPLINARY & VIGILANCE PROCEEDINGS
Issues to be c onsidered
(i) Classific a tion o f Misconduc t
(ii) Abuse of the omnibus cond uc t Rule
(iii) Autho rity for imp osing Major Penalties
(iv) Definition o f Moral Turp itud e & amend me nt of B.R.A.
(v) Disposa l of d isc iplina ry ca ses & a ppea ls
(vi) Copy of CVC/ CVO advice
(vii) Provision o f Persona l Hearing s
(viii) Inte rp reta tion & Effec t of Penalties
(ix) Deba rme nt pe riod
(x) Sa nc tion o f Prosec ution/ Arrest
(xi) Suspension & Sub sistenc e Allowa nc e
(xii) Defenc e Rep resenta tives- No.of pe nd ing ca ses
(xiii) Ag reed List- LODI
(xiv) Jurisd ict ion o f CAT
(xv) Proc eed ing s a fter Retirem en t(xvi) Issuanc e of Cha rge She et
(xvii) Other issue s
(i) CLASSIFICATION OF MISCONDUCT
In the Officers Service Reg ulations, M inor a nd Ma jor p ena lties have been c lassified ,
but the re is no c lassifica tion of M inor and Ma jor misconduc t. Breach o f any prov ision
of the c onduc t rules is to be deem ed as Misco nduct. It is left to be de cided by the
Disciplinary Authority (in short DA) whether to initiate proceedings under
Minor/ Ma jor pe na lty clause thereb y leaving scop e for subjec tivity. In c ase of Awa rd
Staf f and a lso Government employees, major and minor misconduct has b een
defined as a result one d oe sn t ge t ma jor pe nalty for a minor misco nduc t. In c ase o f
Officers, though a large number of cases of proceedings under major penalty end
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up in e xone ra tio n o r a wa rd o f a m ino r p ena lty d ep end ing up on g ravity o f
misconduct proved after enquiry but in very many cases of minor misconduct, the
officers end up ge tting a ma jor penalty. Also, there a re m ental b locks in the minds
of som e DAs who think tha t if Ma jor Pena lty proc ee d ings a re initiate d , minor pen alty
or exoneration or withdraw al of c harge sheet etc .canno t be do ne.
Rec omm endation
Minor and Major misconducts should be defined with clear provision that minor
pe nalty or exoneration ma y be a wa rde d a fter co nclusion of ma jor pe nalty
proce ed ings but ma jor penalty ca nnot b e im po sed in c ases of d efined minor
misc ond uct.
(ii ) ABUSE OF THE OMNIBUS CLAUSE
Thoug h c ond uc t rules have been elabora ted in the Reg ulations, the regula tions a t
the sam e time conta in a n Om nibus Clause to fit the miscond uc t not spe c ifically
defined into the om nibus clause. The tragic reality is tha t in m ore than 90-95% cases,
the officers are booked under this Omnibus Clause. It proves beyond doubt that
whe re m iscon duc t is spec ifica lly defined , viola tion is m inim al. But m ore importan tly,
it indic a tes that there is an unb ridled tend enc y amo ng the DAs to a buse this
provision a nd any c ond uc t is dubb ed as miscond uc t by invoking this c lause which
ought to be attracted in rare cases but which is applied in an overwhelming
number o f cases. If this c lause is annulled and instead if the vast va rie ty o f
misconducts covered under this clause over the last over three decades are
analyzed and spec ifica lly p rovided in the conduc t rules, it w ill lead to bette r
compliance and minimal breach on the part of the officers. In particular, what is
unbec oming of a Bank Officer must be exp lic itly stated in the conduc t rules.
Rec omm endation
The omn ibus cla use in the cond uc t rules shou ld be d elete d.
(iii) AUTHORITY FOR IMPOSING MAJOR PENALTIES
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As per Article 311 of the Constitution of India, Disciplinary Authority for imposing
capital p unishment should not be lowe r tha n the Appo inting Authority. Sinc e all
capital punishments leading to cessation of service are classified under major
penalties, it automatically follows that for imposing any major penalty, the
Disciplinary Authority should not be lower in rank than the Appointing Authority.
Though this p rinc ip le is followed in the Go vernme nt a nd va rious other Orga nisa tions,
inc lud ing the Sta te Bank of India, in na tionalized Banks it is no t being followed .
Rec omm endation
No Authority lower in rank to the Appointing Authority should be competent to
a wa rd m ajor pe nalty.
(iv) MORAL TURPITUDE & AMENDMENT OF B.R.A.
Thoug h the term M oral Turpitude ap pe a r prom inently in the Discip linary &Co nduc t
Rules and on a g rea t num be r of o ccasions, impo rtant dec isions to p roc ee d aga inst
the Officers or to place them under suspension have to be taken for the acts
invo lving Moral Turp itude , it is a quee r pa radox tha t wha t c onstitutes Mo ral Turp itud e
has not been clearly or exhaustively defined either under law or in the conduct
rules, though there are various court judgments which to some extent explain this
term. Existence of a general provision in the Banking Regulat ion Act Sect ion
10(1)(b)(i) which states that no em ployee who is co nvicte d by a co urt of law fo r an
act involving mo ral turpitude ca n b e c ontinued in se rvice enormo usly inc rea ses the
need and imp ortance of d efining wha t is Mo ra l Turp itude , pa rticularly in the c ontext
of norm al da y to da y b ank work in o rder tha t large number of b ank off ice rs do not
become unwary v ic t ims of these prov ision and suddenly lose their job with no
rec ourse ava ilab le or a reasona ble hop e of rec laiming the lost job d ue to a
pa infully slow an d exaspe rating leg al system and no provision for ge tting full ba ck
wag es if the co nviction is set aside later on. When the o ffice r is convicted , he is
summarily discharged or even dismissed without holding enquiry etc but when the
conviction is set-aside afte r prop er tria l, the intervening period is a t b est treate d a s
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deem ed suspe nsion for paym ent o f sub sistenc e allow ance o nly instea d o f pa ymen t
of bac k wa ges. In the Ind ian Overseas Bank, even the subsistenc e allowance is not
pa id an d this p eriod is trea ted a s b rea k in service.
To e lab ora te, the g rav ity of p rejud ic e suffered by Officers on a cc ount of this while
performing the normal day today dut ies in the bank c an be seen by the fact that
Moral Turp itude has bee n de fined thus in the Am eric an settled law:
Moral turpitude refers generally to conduct that shocks the public conscience.
Offe nses such a s murd er, vo luntary ma n slaug hter, kidnap ing , robb ery and
aggravated assaults involve moral turpitude. However, assaults not involving
dangerous weapons or evil intent have been held not to involve moral turpitude.
Conv ic t ion of c rimes of moral turp itude may also d isqualify someone from an
employment opportunity. The prec ise def in ition of a crime that involves moral
turp itude isn't a lways c lea r, but the ab ove serious c rimes only a re a lwa ys consid ered
c rimes of mo ral turp itude .
In terms of the abo ve and umpteen judgm ents given by the courts in India, o ut o f
the ab ove list bribe ry a nd fraud s co mm itted by an office r himself shall qualify to be
acts involv ing moral turp itude. But, it has been seen that various normal and
seem ingly innoc uous norma l b anking ac ts have be en routinely c overed by the trial
courts under Sec tion 120 B or sec tion 420 IPC resulting in the d ischa rge or dism issal of
the officer. By the time the a pp ea ls a re d isp osed off the officer m ight c ross the
norm al retirem ent a ge and he ne ither ge ts b ac k wa ge s or any other com pe nsation
for loss of emp loyment.
Rec omm endation
Moral Turpitud e should be c lea rly defined in the c ond uc t rules. In the b anking
context, a c ts of a cc ep ting b ribe or fraud on the p a rt of the offic er himself should be
considered the one involving mo ral turp itude. Full ba ck wag es should b e paid if the
office r is held to b e innoc ent and his conviction is set aside afte r dispo sal o f a ppe al.
During pe ndenc y of the a pp eal, the office r ma y be pla ce d under suspe nsion.
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Admission of appeal and/or stay against sentence should be deemed as stay
against prosecution for the purpose of compliance of provisions of Banking
Reg ula tion Ac t since the c ase is a ccep ted fo r retrial. We should a lso dem an d from
the gove rnment
Suitab le a me ndme nt to Sec . 10(1)(b )(i) of the Banking Reg ulation Ac t.
(v) DISPOSAL OF DISCIPLINARY CASES & APPEALS
It is la id down in the spec ial chapter of CVC Manual that no cognizance of the
misc ond uct will be taken if the ac tion of the office r is more tha n two Inspe ctions or
four yea r old provide d there is no fraud in which c ase there will b e no lim itation of
time. But c ha rge shee t c ontinues to be served even a fter lap se o f 10 or mo re years.
Further, though the maximum time permitted for service of charge sheet and for
comple tion o f d isc ip linary proceed ings are la id down, in prac t ice , it is ra re ly
adhe red to. The time for filing o f an a ppe al a gainst de cision o f the d isc iplinary
authority as also the t ime for disposal thereof are laid down in the said chap ter.
Thoug h, lim itation of time is insisted upon for filing of the appe al a nd delay in filing is
rarely c ondo ned, the time limit for dispo sal o f the ap pe al is rarely a dhe red to a nd
disposa l of ap pe a ls in m any cases is delayed for years tog ethe r. Conseq uently, the
officers continued to suffer particularly when they are under suspension or when
cessat ion of servic e has been effec ted .
Rec omm endation
It is rec om me nde d tha t the laid d own instruc tions should be me ticulously followed
and no fault should be found with the ac t o f the off ice r after 2 Inspe ctions have
taken plac e o r a pe riod of four yea r has expired . Further, if the c ha rge shee t is no t
served within the stipulated pe riod of three mo nths or if the entire procee dings are
not co mp leted within the stipulated time of six months as provided in the Vigilanc e
Manual, the suspe nsion of the off icer should be automatically revoked with ba ck
wa g es and in ca se the proce ed ings are not co mp leted even within a pe riod of one
year, the ca se should be dee med to ha ve be en c oncluded in o ffice rs favour and
he be dee me d to have b ee n exone rate d. In ca se, the cha rge shee t is not filed by
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CBI within the time limit of 90 da ys, bail is au tom atic ally grante d bu t sam e p rinc iple
is not ap plied for revoc ation of suspe nsion. It is rec om me nded that in suc h ca ses,
suspension should be revoked without p rejudice to the de c ision of the Court c ase.
Simila rly, if the appea l p re ferred by the o fficer is no t d isposed o ff w ith in the
stipula ted p eriod of three m onths, it should be d ee me d to ha ve b een a llowed .
(vi) COPY OF CVC/ CVO ADVICE
As per laid down instructions a copy of CVC advice is required to be furnished to
the d e linquent office r. In p rac tice , however, it is ob served tha t the a utho rities simply
provide the o pe rative pa rt of the CVC a dvice b ut the entire c orrespo nde nce
betwee n the Disciplinary Authority a nd CVC is not ma de ava ilab le which defeats
the ve ry p urpose of the prov ision. Furthe r, the re is no system o f p roviding the
advice of the C hie f Vig ilance Officer of the Bank where C VC jurisd ic tion is no t
attra c ted. This distinc tion is wholly unwarranted . The ad vice of CVO is a t a lower
foo ting must be furnished whe n the re is explic it p rovision to provide the a dvice of
the CVC.
Rec omm endation
The C VC/CVO ad vice alongwith the entire c orresp onde nc e should b e m ade
ava ilable. It is further, rec omme nded that the CVC/ CVO should only rec om me nd
ca tegory o f pena lty to be imposed i.e . Ma jo r o r M ino r and no t the spec ific
punishment because in that case he assumes the role of the Disciplinary Authority
himself. Further, in ca se of ap pe al further reference should not be ma de to CVC
partic ularly if the Appellate Autho rity p rop oses to g ive a low er pun ishme nt within the
sam e c ateg ory alrea dy rec omm end ed b y the CVC.
(vii) PERSONNEL HEARING.
The disciplinary p roc ed ures have be en grad ually ev olving in favour of the cha rged
office r and in the p ast som e favourab le c hang es have taken plac e like provision of
enq uiry, making ava ilab le rep ort of the Inquiring Authority to the cha rged officer so
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that he can argue against his findings, making available of copy of CVC advice
etc . But, an imp ortant p rovision like grant of a pe rsona l hea ring to the c ha rged
office r be fore a ward of the p enalty has all along b een de nied. As a result, he
doe s not ge t a cha nce to a rgue ag ainst the p ropo sed penalty be fore hand so that
som e aspe cts of the ca se which m ight have esc ap ed the notice of the Disciplinary
Au tho rity can be po inted out in good time and he w ill be ab le to take a more
ba lanced and reasoned v iew. Afte r the fina l dec ision is taken by the DA, it
be co mes difficult to undo the injustice as there is ge neral reluc tanc e to co rrec t the
mistakes a nd the a ppea l system is also loa d ed a gainst the em ploye e. There is
alrea d y a p rovision fo r g rant of a p ersonal hea ring to the workman em ployees.
Rec ently, the Hon ble Sup reme Court ha s de cided in a c ase related to State Bank
of India O fficer tha t while d ec iding the a ppe al the Ap po inting Authority must give a
persona l hearing . By tha t log ic, the DA should a lso g ive personal hea ring to the
officer. The sam e log ic should hold go od for review petition a s we ll. This p rovision is
also there in the rules applica ble to o fficers working in the G ov t of Ind ia .
Rec omm endation
The DA should ta ke a tenta tive d ec ision a nd g rant a persona l hea ring to the
charged officer along with his Defence Representative before taking a final
dec ision. The sam e proced ure should be a do pte d by the Ap pe llate Authority /
Rev iew ing Authority while d isposing o ff the ap peal of the o ffic er.
(viii) INTERPRETATION & EFFECT OF PENALITIES.
While the m inor pe nalties a re simp le a nd ea sily unde rstand able, some of the ma jor
pe nalties are very tec hnica l and c an not b e ea sily unde rstood b y the c harged
officer and even most of the Com pe tent Authorities. At times promotion of the
office r is withheld when no promotion is ac tually due to him. This results in undue
prolonga tion o f the rigour of the p enalty whic h m ight no t have be en the intention o f
the DA and the penalty though minor in effects become harsher then a major
penalty. Likewise, pe nalty of rec overy of loss is a minor p enalty and logically a
symb olic rec overy of sma ll sum should be effec ted but a t time s it is clubb ed with a
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major penalty and amount of recovery runs into lacs. For example removal of
service with rec ove ry of two lac s. Further, when a n office r is reve rted to a lowe r
grade, the reve rsion is ta ken a s a permanent reversion unless the o fficer re-qualifies
and ea rns ba ck the promotion, w herea s in gov ernment reve rsion is for a pe riod of
two years wherea fter the office r is plac ed ba ck in the higher sca le from where he
wa s reve rted. It is also a practice to give m ore than one pena lty like reversion to
lowe r or the lowe st grade c oupled with red uc tion in pa y etc .
Rec omm endation
CC A Rules should be fo llowed in this respec t in the b anks also.
(ix ) DEBARMENT PERIOD.
Debarment Rules are d if ferent in d if ferent banks. In some banks, there is no
de ba rme nt when m inor pen alty is awa rd ed while in some others de ba rment pe riod
extend s to 15-20 yea rs also. No deb a rment pe riod is stipula ted in case o f the
pe nalty awa rde d is Reversion to a lowe r grad e wherea s in ca se of Gov t e mp loyees
deb arment p eriod of reversion is d efined . In som e orga niza tions, whe n crim inal
p roc ee d ings are pe nd ing whethe r for miscond uc t pe rtaining to Bank o r some o ther
criminal misconduct, result of the officer is held in sealed cover throughout the
pendancy of criminal proceedings which sometime run for 8-10 years also and
som etime b eyond the norma l retirem ent da te a s well.
Rec omm endation
In ca se of m inor pena lty, there should be no rigo r and no de ba rme nt for prom otion
and results if any plac ed in the Sea led Cover should be g iven effec t to. The
ma ximum de ba rment / rigor for a m ajor pen alty should not b e m ore tha n one year.
(x ) SANCTION OF PROSECUTION/ ARREST
There a re d ifferent rules in different ba nks. The a utho rity em p owered to sanc tion
Prosec ution of a n officer alwa ys ac ts und er the influenc e / p ressure o f the CBI /
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CVO and is not pe rmitted to a c t inde pe nde nt. Further, while p rovision ha s be en
made for obtention of sanction of the Competent Authority before launching
prosecution against the officer but no such provision has been made to obtain
similar sanc tion befo re a rresting the office r.
Rec omm endation
The powe r to sanc tion Prosec ution of an o fficer should be vested in h is App ointing
Authority. The g round rules should be laid d ow n fo r giving sanc tion for prosec ution
and the Appointing Authority or the Disciplinary Authority should be given a free
hand to ac t inde pend ently. Onc e he de clines to give sa nction, he be co me s a
functus officio and sanction cannot be sought unless fresh evidence is presented
befo re him. A provision should also b e inc orporated to ob tain sanc tion o f the
Appointing Authority before arresting the officer.
(xi) SUSPENSION & SUBSISTENCE ALLOWANCE.
Though the instruc tions p rov ide tha t an o ffice r will not b e p laced und er suspe nsion
be fore investiga tion, in prac tice freq uent deviations are ma de . Ground rules for
ord ering suspension of an o ffice r a re seldom followe d . Suspensions a re mostly
effected as a knee jerk reaction and is invariably behind the back of the officer
without g iving him a ny hearing . In most ca ses the op tion of transferring the o fficer
instea d is no t eve n c onsidered . Onc e the officer is place d unde r suspension, there
is v irtually no review thereof. Review mec hanism is totally absent. Review is
generally on the pap ers and in almost all the ca ses reinstatement of the officer
takes pla ce only after the p roc eed ings a re c onc luded and final order is passed . At
the time of passing fina l orde r, the DA is nigg a rdly in his trea tmen t o f the suspension
period . In case o f arrest of an officer, the re is p rov ision o f de em ed suspension a fter
48 hours of the arrest but there is no simultaneous provision of a deemed
reinstateme nt after he is acq uitted . There a re different rules a bo ut pa yment of
subsistence allowance in the government, in the award staff within the banking
ind ustry and within the d ifferent b a nks.
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The Disc ip lina ry Autho rities a re too nigg ardly in the ma tter of trea tm ent of
suspe nsion pe riod while pa ssing final orde r. It has bee n seen that excep t in ca ses
whe re the o fficer has bee n exonerate d , suspension p eriod is trea ted a s such
irresp ec tive of the gravity of the pe nalty a wa rded and nothing more than the
subsistenc e a llow anc e alread y pa id is paid a t the time of reinstate me nt which is
grossly unfa ir. Bene fit of Annual inc rem ent a lso is not g iven eve n for ca lcu lation of
the subsistence allowance.
Rec omm endation
Ground rules of suspension must b e meticulously followe d . Suspension o f a n o ffice r
prior to co mp letion o f investiga tion should not b e effec ted. The op tion to tran sfer
the off ice r to a distant