Charter of Demands Officers Final

7/31/2019 Charter of Demands Officers Final

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AllBankingSolutions.com

We have received the following Charter of Demand s from our

sources. This is likely to be subm itted by Officers Unions to IBA

today itself (30th Oc tober, 2012)

A first look at the Charter of Demands indic ates that it is quite

exhaustive and d ea ls with most of the issues whic h bankers hadbeen carving for last few years. However, we will soon undertake

a full review of the sam e a nd p ut up on our website the Highlights

and our comments, onc e the sam e is offic ially ava ilab le on the

websites of the unions.

Rajesh Goyal

30th Oc tober, 2012


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Combined Charter of Demands

Submitted by

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 Cha rter of Demands rep resents the hopes and asp ira tions of ent ire

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 Association(AIBOA), Indian National Bank Officers Congress

(INBOC) and National Organisation of Bank Officers(NOBO) and other

Officers organiza tions in the industry. The Charter of Demand s is a lso a

statement of the demands of the Officers fraternity for consideration of the

Indian Banks Association, an accredited representative forum of the

Managements of the Member Banks and as also acting as the spokesperson

on behalf of the Government of India, in the matter of settlement of

com pensa tion system in the Banking Industry on b eha lf of their memb er ba nks

in the c ountry.

PREAMBLE:

The Ind ian Banking system is highly respec ted and apprec ia ted a ll over the

world, in particular in the background of recent economic catastrophe

namely, the c ollapse of the US ec ono my know n for its rob ustness and size in

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global scenario which, has impacted the entire world upsetting most of the

Western c ountries in pa rticular those w ho are p artne rs of US inc luding the

c lose a lly UK.

The Indian Banking system no t only absorbed these d eve lopments but a lso

rem a ined strong as eve r in fac ing the g lob a l uphea va l. The Europ ea n

countries suffered a major setback and the Euro currency was under

p ressure. The Indian Banking system no t only grew from streng th to strength

but stood as rock in the middle of this financial tsunami and continued its

onw ard ma rch in rend ering the economic justice to millions and millions of the

people living below the p ove rty line. The g rea test tribute to the Ind ian

Banking system is its resilience and the courage to take on the Basel Norms

and to me et a ll its req uirem ents to show the wo rld tha t the Ind ian grow th story

is not a myth a nd it has c om e to stay.

The entire c red it to this super pe rforma nc e m ust go to the Bank Office rs

fra ternity in the country. They no t only defended the pub lic sec tor Banks but

a lso a c ted as a stumbling b loc k in the ill advised initiative of the Government

influenc ed by the p rop onents of the g lob a liza tion to hand o ver the industry to

the private sec tor as well as the multina tiona ls. The Government ha s revisited

the issue of disinvestment and has been acknowledging the performance of

the banks and is now serious to reta in the c ontrolling stake in the Public Sec tor

Banks.

The e fficienc y of the banks has rea ched the interna tiona l sta ndards. There is

neither complaint nor an attempt to denigrate the Indian Banks on the issueof the a mb ienc e in com pa rison with the foreign and new g eneration p rivate

sec tor banks due to the e ffective measures ad op ted by the Ma nag ements of

the b anks. The b anks a re tec h-savvy and are in a p osition to ac quire a nd to

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adapt any latest version of the technology to match their counterparts all

ove r the w orld .

How d id this transforma tion happen? This is ma inly due to the fac t tha t the

entire office rs fra ternity, c om mitted to the success of the Ind ian Banking

industry, has given blood and sweat of their youth in ensuring the success of

the banks a ll over the c ountry. They ha ve a lso unm indful of their persona l

inconvenience and discomfort to the members of their family, have carried

the b anking fa c ilities to no ok and corner of the country ensuring Banks to b e

highly competitive with that of their counter parts both inside as well as

outside the country.

Does the c om pensation system ma tch these deve lop me nts? What is the

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

Officers have been fulfilled by the IBA and the Government in the process.

We are concerned to observe that there is a gulf between the hopes and

asp ira tions of o ffice rs and the IBA. We a ll have to strive to b ridg e this gap in

the ensuing wa ge revision/ service cond ition.

Before we proceed to present our Charter of Demands for the 7th Joint Note

exercise let us take a close look at the job market, the compensation

environm ent preva iling with the pee rs of the Pub lic Sec tor, the ow ner himself

i.e. the Government and abo ve a ll the new sec tors of the econom y, to have

a p rop er assessment a nd justifica tion for the Cha rter of Dema nds.

The disc ernible ga p of exac tly a dec ad e be tween

Nationalization and actual date of implementation of the Pillai

Committee Recommendations ie between 19 07 1969 and 01 07

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Two m a jor bene fits tha t he has passed on to the C ivil servants were the

introduction of Grade Pay, to ensure better emoluments and also providing

the running sca le c om menc ing from the low est to the highest leve l so tha t no

one would be com pe lled to suffer stag nation as regards the c om pensation isconc erned . In the 6th Pay com mission Govt. Officers sa lary had increa sed to

substantial leve l co mp ared to Bank officers.

SCIENTIFIC INCREMENTAL PATTERN:

The inc rem ents have been related to the sca les in terms of p ercentage. It has

given a scientific formula where the increments are directly linked to the

autom atic ba sic pa y.

MOVEMENT FROM SCALE TO SCALE:

The Banking Industry experimented this philosop hy long time back. How ever,

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

movement from one scale to another is automatic and it does not stop at

any sca le. It would ensure a ga inst stagna tion at any sca le / stage .

SUPERANNUATION BENEFITS:

One of the salutary impacts of the 6th Pay Commission is the comprehensive

improvements in the case of Pensioners and Family Pensioners in the Central

Government . The imp rovem ents made in the Pension sc hem e in the a rea s like

updation and upgradation of the Pension, the rationalization of Dearness

Allowance, Family Pension etc., needs to be implemented in the banking

industry as our pension scheme amply speaks of being in the lines of central

govt. pension schem e

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PUBLIC SECTOR WORKFORCE

The ye t a nother com parab le situa tion a s far as the Banking Industry is tha t of

the Pub lic Sec tor units ow ned by the Government . The sa la ry revision ta kes

p lace in respec t o f the Pub lic Sec tor Units a long with the c ivil servants. The 6th

Pay Comm ission sc a les with c ertain mo dific a tions in a w ay more bene fic ia l to

the Public Sec tor officers have b een imp lem ented w ithout any hesita tion.

Whenever a reference is made to these developments, the authorities

concerned 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 canno t be justified

to cause hug e d isparity betw een Bank Offic ers and Group A Officers. Such

erosion in the value of emoluments defies logic of parity at the time of

imp lementa tion o f Pillai c om mittee Rec om menda tions. The c onc ep t o f

Merger of DA when it exceeds 50% with Basic Pay ensures protection of

superannua tion benefits which is missing in c ase 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 emoluments betw een the new ge neration

Private Sec tor Banks / Foreign Banks and the Banking Industry covered by the

IBA. These Banks adop t the com pensa tion system tha t is preva iling in the new

sectors of the economy on the plea of attracting the best talent in the

financ ia l sec tor. The same is true in the case o f Pub lic Sec tor and old

genera tion banks as we ll. The fea r has com e d ow n d rastica lly in the rec ent

past in view of the fact that there is vast workforce available in the market.

The c om petitive environm ent is such that the p erforma nce o f the New

Generation Priva te Sec tor Banks is a lwa ys quoted as a mod el for others

inc lud ing the Old genera tion Priva te and Public Sec tor Banks, whenever the

issue o f com pensa tion in com parison with them is ra ised . The effic iency

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parameters are similar and hence the factors of compensation system

preva iling in the New Genera tion Priva te Sec tor and Foreign Banks should b e

extended to a ll Bank Employees as well.

Som e o f the b ene fits tha t they enjoy over the b anks a re: (a ) the annual

assured bonus; (b ) the employees stock option plan (c ) the liberal

reimbursement of expenditure incurred on recreation, lunch, travel,

(d )meeting the ta x ob liga tions etc ., with attrac tive ca reer prospec ts.

7TH JOINT NOTE EXERCISE

The 6th Joint Note is to e xpire on 31.10.2012. The w orkforce in the b anking

industry is the refore e lig ible for a fa ir sa lary revision from 01.11.2012.

EXPECTATION OF BANK OFFICERS FRATERNITY & PRECIOUS ASSETS FOR THE

BANKS:

a . Each and every Bank Officer in the country takes pride in hiscont ribution to the suc cess of the banking industry. He / she is an

integral part of the financial sector machinery, which undertakes the

responsibility of a meliorating the living cond itions of millions and millions

of the p op ulation in the c ountry.

b . This contribution, which he / she ha ve b een ma king , should reflec t in hiscom pensation system. This com pensation system should b e a

com prehensive one , com pa rab le w ith the peers in the ec onom y of the

country and above all one should have pride of his profession through

the co mp ensa tion pa c kage he / she has.

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c . Compensation system should also take care of the tremendoussacrifice that the Officers fraternity has been making to make the

banking industry strong and efficient even at the cost of his / her own

com forts, the family life, unlimited working hours etc ., so tha t he / shewould derive tremendous satisfaction for having served the industry

beyond the c a ll of his / her duty.

d . The C om pensa tion should a lso ensure a ga inst the erosion of the rea lwages due to inflation and adequately take care of his / her social

obligation and cultural requirements, the need for maintenance of

standard of life tha t the memb ers of his / her fam ily deserve through his

/ he r services to the industry.

e. The c om pensation system should be so a ttrac tive tha t o ne shouldaspire to go higher in the ladder of the career and continue his / her

com mitment a nd convic tion to give the b est to the institution.

f. Comp ensation pac kag e should b e a dequa te to a ttrac t the best of theta lents from the market to join the Bank servic es.

g . There should b e a reg ula r system of a utom atic up grad tion of sca lesupto Sc a le IV, having rega rd to the steep leve ls of stagna tion a nd

resultant dem otivat ion a mo ngst the office rs.

h.For the purpose of focused negotiations, the compensation package is

d ivided into d ifferent p a rts. The imm ed iate a ttention should b e to revise a ll

the m one ta ry areas in one part. The o thers are further divided into p ackage

of Perquisites and other a llow anc es, includ ing the Welfare area s. The third

part sha ll be consisting of superannua tion b ene fits. There is an exclusive part

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dealing with the issues connected with the lady Officers and another part on

d isc iplina ry matte rs in the b anking industry.

The o ther general issues have b een group ed into two sep arate c hap ters.

The first one will de a l with the issues suc h a s working hours, 5 da ys a week,

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

The sec ond part a ims a t b ringing the Office rs service c ond itions in the

banking industry on par with the Pub lic Sec tor servants in view of higher level

accountability and mobility to make a strong case for a fair and

comprehensive revision in favour of Bank Officers, a genuine and just

aspiration.

The Cha rter of d em ands and settlem ents sha ll be app lica b le to a ll Pub lic

Sec to r Banks, Priva te Sec tor, RRB Sec to r, and Co -op erative sec to r on an

equal footing.

HENCE:

The Charter sha ll be d ivided into:

Part I: Salary Rev ision and Allowa nces

Part II: Perquisites, allowanc es, we lfare fac ilities viz., leave rules, the

enc ashment, the LFC/ LTC, Medical fac ilities etc.,

Part III: The issues conc erning Lady Officers.

Part IV: Superannua tion Pension, Provident Fund , Gratuity Etc ., inc luding

all the benefits that are to be extended to retirees in the Bank ing Industry

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Part V: Non monetary issues, com pa rable position in the Government and its

extension e tc ., issues such as the working hours, 5 days week etc .,

Part VI: Gene ral Bilate ral Rela tionship

PART I

SALARY AND ALLOWANCES: BASIC PAY:

Date of effec t 01.11.2012

The last c oup le of revisions were a n exerc ise o f merging o f DA payab le up to a

certain level of CPI with Basic Pay and thereafter providing certain cushion

(loa d) for the c onstruc tion of the sc a les with ap prop ria te Inc rem ent pa ttern.

We need to take a fresh look at the way the scales have to be constructed

with a view to have higher start to ensure that the promotion provides

reasonable compensation to officers in comparison with award staff scale.

The higher sta rt w ill provide prop er differentials on prom otion and mo tivation

for promotion.

The span of the sca les should b e redesigned to ensure tha t the re is continuity

in the d raw ing of the inc rem ent w ithout b reak even if the p rom otions are not

assured to a ll the Officers. One wa y of achieving this could b e through the

integration of the scales and the other one would be to elongate the existing

sca les with annua l increm ents.

We tentatively suggest the merger of scales to reduce number of scales in

tune with the 6th Pay Commission. Further, there should be automatic

movement to the p ay o f imm ed ia te next higher sca le in the revised two sca le

format. Accordingly, we suggest that the present 7 scales be reduced to 2

sca les as fo llows:

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

Sc ale II Exec utives Grade Integrat ion o f Sca le V, VI & VII

GRADE PAY:

In order to p rovide higher emo luments on p rom otion as has been done in the

case of the Government servants at every scale/grade, we should introduce

Grad e Pay, which w ill be a sort of incentive to the supervisory ca dre for taking

higher responsibilities in the bank. It may be recollected that, until the

introduction of Pillai Committee Recommendations, the banks had a system

of providing post allowances in various forms which was taking care of the

higher responsibilities and was providing tremendous amount of satisfaction to

supervisory c adre. Bank Officers we re a lso c om pensa ted earlier in case of

transfer from Sta te to Sta te .

The quantum of grade pay should c ommensurate with and c ould b e related

to the revised scales and refixed at the end of each scale within the merged

sca le. The g rade p ay should b e treated as pay for a ll purposes.

DEARNESS ALLOWANCE:

The existing Dearness Allow anc e is based on a formula a rrived through the

merge r of index a t every revision. Taking into account the unabated p rice

rise and mounting inflation and the cascading effec t that it has brought on

the real value of compensation though stated to be 100% need to be

relooked a s the e rosion has hurt everyone . Hence the neutraliza tion should

be appropriately increased from the present level. It is a mere arithmetical

ca lc ulation and hence suffers from several inequities. The inequities should b e

rec tified by ra tionalizing the existing formula for the p urpose of c a lcula tion of

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the Dearness Allow anc e. The first and fo rem ost considera tion should be to

refix the c om pensation ra te for every po int o f increase. The current ra te of

0.15 per slab of 4 points should be re-fixed for the purpose of post merger

neutraliza tion instea d of w orking out me re a rithmetica l equa tion. To bespecific the neutralization which is at present 100% should now be increased

to 125%. The c onve rsion fac tor should b e rec a lcula ted accordingly.

The infla tion figures a re now arrived a t fo rtnight ly ba sis in order to wo rkout the

ec onomic growth of the c ountry. The infla tion is on a day to d ay ba sis and

the periodicity of price fluctuation is on day to day basis and in certain

insta nc e it is on hourly ba sis. There has been no instanc e o f the index coming

dow n in the last several yea rs and it has been on the increa se. The infla tion

should be compensated then and there only. We feel that,once the figures

are ava ilable for the p urpose of ca lcula tion of the monthly index the

Dearness Allowance should be worked out a nd the c om pe nsation p assed on

to the w orkforce , on a mo nthly ba sis per po int of inc rea se

Thanks to the introduc tion o f tec hnology in banking system the HRMS

departments a re eq uipp ed with wonde rful softwa re a nd c entra lized pa yment

system , whe re the c om pensation is ca lcula ted within no time a nd the same is

being passed on to the members of the staff in almost all the banks. Hence,

the re is no prob lem in shifting over from the current system of quarterly revision

of dea rness a llow anc e to the m onthly revision. This is one way of rea sonab ly

protec ting the rea l wage s of the wo rkforce in the industry. The d elay in

announcing the index figures should be compensated by paying arrears for

the mo nth the index figure relates.

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

is applicable with effect from 1st Aug ust. We suggest that the DA should be

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applicable with retrospective effect from 1st July to ensure virtual

com pensa tion for the infla tion.

MERGER OF INDEX FOR THE PURPOSE OF CONSTRUCTION OF SCALES:

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

qua rter ending 30th Sep temb er 2012 which w as a t 4876 (1960=100) (round ed off) b e

taken for the p urpose of m erger of Dearness Allow anc e fo r construc tion of Sc a les.

AUTOMATIC MERGER OF DEARNESS ALLOWANCE:

In line with the concept of pay Commission recommendations there should

be mid review of the scales by m erging Dea rness Allowance p ayab le 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 ayab le to be m erged

and pa id as revised pay. The Principles adop ted by the Pay Comm ission fo r

the purpose of merger of DA and other allowances should be followed

Muta tis Mutand is in case of Bank Employees.

PROFESSIONAL QUALIFICATION PAY:

At p resent the Professiona l Qua lifica tion Pay is pa id only in respec t o f CAIIB.

However, with the p assage of time revolutiona ry c hang es have taken p lac e

in the m atte r of b anking business. The d iversifica tion, whic h we ha ve

witnessed , ca lls for spec ializa tion in different ac adem ic fields. We therefore

are of the opinion that the officers should be adequately compensated for

the various professional qualifications they possess during their career in the

bank ap art from the existing CAIIB qua lifica tions.

We p rop ose tha t the existing pattern should be revised as under:-

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EXISTING REVISED

Part I One increment One increment

Part II One increment Two increments.

The current system of payme nt o f PQP should b e revised as under:

Part I - The PQP should b e eq ual to the amount of the last one inc rement

drawn at the end o f the new scale.

Part II - The PQP should be equal to 2 inc rements in the last stage of the scale

(Part I - one inc rement and Part II two inc rements tota l 3 inc rements)

The a dd itiona l inc rem ents sha ll be g ranted for acquiring a dd itional

qua lifica tions in Business Ma nagem ent, CISA, Trea sury Ma nagem ent ,

Techno logy, MCA, LLB, RISK, Aud it, Costing , HR etc and be c onside red for

sanc tion of PQP on reaching ma ximum in the sca le.

FIXED PERSONAL PAY (FPP):

We p rop ose tha t FPP should b e t rea ted on par with PQP in respec t o f fitment

of Basic Pay on prom otion and p ayment of a ll othe r a llow ances. The fixed

cha rac ter now in existenc e should be d one a way with. The FPP sha ll be

rew orked on p rom otion. FPP should b e defreezed and the last inc rem ent in

that scale c oup led with DA should be p aid.

HOUSE RENT ALLOWANCE:

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It is incumb ent on the p art of the ba nks to p rovide ac comm odation to ea ch

and every officer wherever he is posted or wherever he desires to have his

family accommodated with a view to ensure that the medical and

ed uca tiona l fac ilities are not denied to them.

He should have the option of choosing the drawing of HRA or availing the

housing accommodation provided by the Bank. HRA should be paid as per

the 6th Pay commission on area wise basis.

The ga p b etween the Housing acc ommodation provide d on lea se and the

HRA paid to them in lieu of Housing accommodation is so wide that the

Office rs feel tha t they a re d isc riminated when they op t for the rec eipt o f HRA

in lieu of the leased housing accommodation. Hence the payment of HRA

should have correlation to the preva iling lea sed renta ls.

The p rac tic e o f deduc ting a p ortion o f the Basic Pay towards the q uarters /

lea sed a ccom moda tion / furniture provided should b e do ne aw ay with.

HRA ON CAPITAL COST BASIS:

For the p urpose o f c a lcula tion of HRA on c apita l cost b asis the p resent ma rket

value of the property should be reckoned instead of the original cost of

construction.

HRA linked to rent rec eipt / c ap ita l cost to b e enhanced to 200% of the House

Rent Allowance.

USE OF OWN HOUSE IN LIEU OF LEASED ACCOMMODATION:

The Office r should have an option to offer his ow n house to the Bank for the

purpose of leasing and occupy the same to avoid frequent shifting of the

house and a lso have the op portunity of living in his ow n house.

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OFFICIATING PAY:

The existing ra te of o ffic ia ting a llow ance should b e re-fixed and the p a ltry

percentage preva iling a t p resent should b e revised to 10% of the last stage o f

the Sca le. This pay should b e pa id to a ll the o ffic ers who officiate in the next

higher grade even for a period of less than 7 days. The o ffic iating a llow anc e

should b e treated as part of the pay for DA superannua tion purpose a lso.

DIFFERENTIAL ON PROMOTION:

The d ifferential on p rom otion from one Sca le to o ther in the Office rs Ca dre

should be atleast equivalent to 20% of the Basic Pay and allowances last

d rawn. In any c ase the d ifferential should not be lower than the offic ia ting

a llow anc e to ensure a ga inst red uc tion of em oluments on p rom otion. A

comprehensive fitment formula should be evolved with the negotiating

unions in the industry level.

CITY COMPENSATORY ALLOWANCE:

The existing c lassifica tion o f c ent re should b e reviewed c lassified in the

follow ing c ateg ories:-

CATEGORY CENTRE

I Major Metro Kolkata , Delhi,Mum ba i, Chennai,

Bangalore, Hyderab ad , Ahmeda ba d,

Pune, etc.,

II Metros (Area I) All centres with m ore tha n 12 lakh

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Pop ula tion and Sta te Ca pita ls

III Centres with population of 1 lakh and above and a ll District Head

quarters

RATES OF CITY COMPENSATORY ALLOWANCE:

Ca teg ory I - 20% of Basic Pay

Ca tegory II - 17.5% of Basic Pay

Ca tegory III - 15% of Basic Pay

INCENTIVES FOR WORKING IN RURAL CENTERS AND OTHER SENSITIVE AREAS:

It is necessary to provide incentives to all those officers who are posted to

serve in the rural area s/ most sensitive and d ifficult area s/ area s with sec urity

p rob lem s/ area s of wea ther ab erra tions in d ifferent p arts of the country.

We propose that the following incentive may be provided to the officer

concerned;

An add itional allow ance to the extent o f 20% of the Basic Pay draw n byhim;

Weightage for the purpose of Prom otion

Choice plac e o f posting on com pletion of the a ssignm ent

An add itiona l LTC to enab le him to meet the fam ily etc ;

CLOSING ALLOWANCE:

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All officers irrespective of the office of posting/ i.e. branch/administrative

office etc., should be paid the closing allowance equal to 15 days of their

sa lary onc e in 3 months.

HALTING AND TRAVELLING ALLOWANCES

a . Review and ra tiona liza tion o f Ha lting/ Boa rd ing/ Trave lling expenses.b . The Boa rd ing expenses should b e linked to lodg ing expenses.c . The e xisting system o f a llowing b anks to fix the ra tes of reimbursem ent

period ic a lly should c ontinue w ith a provision to review them annually.

d . All officers should be eligible for travel by Air, irrespective of distancewith Executive Class ent itlem ent fo r Senior Managem ent .

e. For places not connected by Air, Officers should be permitted to travelby AC-Ist Class by rail.

DATE OF SANCTION OF ANNUAL INCREMENTS:

Increments falling due between 1st January to 30th June should be

sanctioned on 1st January of the yea r itself. Inc rem ents falling due betw een

1st July to 31st Dece mb er should be sanc tioned on 1st July o f the yea r itself.

PROTECTION OF ANNUAL INCREMENTS STAGNATION RELEASED:

An allowance equal to the amount of last drawn increment should be

granted every year after rea ching the ma ximum in the sca le. The a llow ance

so g ranted should b e t rea ted as Basic Pay for a ll purposes.

REMOVAL OF EMBARGO ON SANCTION OF STAGNATION INCREMENTS, PQP

AND AUTOMATIC MOVEMENT:

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The p resent Emb argo in reg ard to the sanc tion of stagna tion increm ent,

autom atic movement and PQP in respec t of those offic ers who ha ve refused

promo tion should be removed.

PART- II

PERQUISITES, OTHER ALLOWANCES AND WELFARE FACILITIES:

The p erquisites and other allow anc es as well as welfare fa c ilities provided by

the banks and settled at the industry level should not be reckoned for the

purpose o f arriving a t the c ost of wage revision. It is an essent ial area o f

func tiona l expend iture, as in the c ase o f business prom ot ion in othe r sec tors of

the ec onomy. We therefo re propose that the follow ing bene fits should be

trea ted und er this hea d ing. The Bank should bea r the tax on p erquisites.

POST ALLOWANCE:

Post allowance should be reintroduced in order to provide incentive for

office rs for wo rking in the most com petitive sec tor, to c om pensate him for

taking ad ditiona l loa d on a c count o f d iversification, technology initiative etc .,

i. 25% of the Basic Pay should be paid as post allowance to alldesigna ted officers viz., Branc h Managers, Divisiona l Managers, etc .,

ii. 20% of the basic to o ther officers.RISK ALLOWANCE :

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Risk Allow ance should b e introd uced to provide c ove r to a ll lend ing risks to a ll

sanc tioning authorities a t a ll grades as present dynam ics of b anking involves

various type s of risks beyond the norma l prudenc e o f banking.

Disturbed Area Allowance :

Disturbance Area Allowance of 20% of Basic Pay should be paid to officers

wo rking in the b ranches which com es under disturbed area and Terrorist

p rone a rea s ca lled as The Red Co rrido r.

MEDICAL REIMBURSEMENT:

The existing M ed ica l bene fits should b e rationa lized as und er:

The fa mily of the Officer, which inc ludes the spouse, the parents, the

dependent unmarried children including step children and legally adopted

child ren, physica lly cha llenged b rothe rs / sisters with 40% or mo re d isab ility

should be extended 100% reimbursement for the purpose of hospitalization as

well as dom iciliary treatment . This should c ontinue even a fter ret irem ent .

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

daughte rs and unmarried brothers and sisters without p hysica l disability.

Reimbursement of a nnual med ica l aid should be enhanced .

The IBA should a lso ta ke immediate steps to revise the existing norms in

respect of the income criteria in respect of the dependents and the same

should be increased suitably.

HOSPITALISATION CHARGES:

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Reimbursement of domiciliary treatment and hospitalization diagnostic

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

the AIIMS rates. The ra tes so fixed should b e revised annually.

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

surgeries and ailments which are not presently covered under the scheme.

Reimbursement towards ailments under Dental, Ophthalmic, Orthopedics,

which do not require hospitalization should also be considered under the

scheme.

Ma ster Hea lth Check-up for the o fficer and his / her spouse o nce in two yea rs

if the officers age is less tha n 50 and eve ry yea r if the officer c rosses 50 yea rs

of age.

LEAVE FARE CONCESSION:

We need to review the existing schem e in a c om prehensive manner.

The entitled mo de o f travel should b e m ade a s a ir travel to a ll office rs

For Senior Ma nagem ent Cadre it ca n be exec utive c lass.

The encashme nt of lea ve fa re c onc ession should be the a c tua l expenditure

he / she would have incurred had the officer traveled actually by entitled

c lass.

Foreign Travel to be a llow ed within the entitlement up to the ma ximum

dista nc e permissible in India .

The IBA should take up with the Government and seek exemp tion from

payment of income tax whenever the amount is drawn on the basis of

encashment.

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SPECIAL ALLOWANCES:

The existing spec ial allow anc es pa id to d ifferent p laces should be revisited

and revised in a comprehensive manner for example in places like J &K,

Sikkim, North Eastern Sta tes, Hima cha l Prad esh, And aman & Nicobar Island s,

Lakshadweep , the red corridor and othe r simila r centers.

The ha rdship a llow ance should b e red efined and ne w a rea s should b e

added on the basis of the norms already available. It should also be revised

whe rever it is a lrea dy be ing p a id .

All the officers serving in those places should also get these allowances in

order to meet the higher cost of living etc., and wherever it is paid, it should

be suitab ly reviewed .

EXGRATIA:

The c onc ep t o f minimum exgratia should be reintrod uced in a rational

manner. Exgra tia is now a va ilab le to a ll the Employees in Priva te Sec tor

Banks, Foreign Banks etc., which has created a serious differential in the

em oluments betw een the wo rkforce in the Public Sec tor and othe r sec tors. It

is a lso preva lent in Govt. Sec tor suc h a s Railwa ys/ Posta l and in Pub lic Sec tor

Undertakings. Henc e, an amo unt eq uiva lent to no t less than one mo nth s

gross sa la ry should b e p a id a s exgratia to a ll.

COMMERCIAL BANKING ALLOWANCE:

In view of the onerous responsibilities of conducting commercial banking

operations involving risk, officers should be paid Commercial Banking

Allow anc e as preva iling in the Reserve Bank of Ind ia. (Central Banking

Allowance)

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PART III

ISSUES CONCERNING LADY OFFICERS:

Thanks to the awa reness tha t has been c rea ted amo ngst the w om en in the

country over the last several years to excel on par with men in all walks of life,

the intake of the lady officers in the banking industry has very substantially

increased in almost all the banks. It is nearly 50% of the total recruitment in

some of the banks and it may increase in due course due to the changing

demog rap hic profile of emp loyab le ed uca ted youth.

They are a lso to -da y ac cep ting c ha lleng ing p ostings, transfers, and

spec ialized a rea s in the b anks without a ny hesita tion. They a re now in a

position to accept higher responsibility in their career and look to head the

institutions eventually.

The Office rs Orga nisations have b een rec eiving a number of rep resenta tions,

memorandum and also resolutions highlighting the problems of the lady

officers through the various conferenc es as we ll as the Wom en s wing . Based

on these fee lers and sugg estions, it ha s be en dec ided to exclusively de vote a

chapter to consider their special situation and demand appropriate relief

from the Ind ian Banks Assoc iation.

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(a) PLACEMENT AND POSTINGS:

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

and postings in the banks. The country is yet to deve lop in the ma tter of

infrastructure, the fa c ilities exc lusively to the lad y members in different p laces.

Henc e, a sep arate Transfer / p lacem ent Polic y taking into ac count the

problems of the lady officers should be designed and forwarded to the

mem ber banks by IBA. The IT sec tor is a c lassica l exam ple where a lot of

sympathy is shown to the women employees in the matter of posting and

placement in order to get the best from them. Yet another major

considera tion is the ir sa fety and sec urity at d ifferent centers.

The lad y Officers need to b e extend ed the b ene fit of flexi-time and flexi-p lace

conc ep t. They should be given choice of their p lac e a t the time of transfer

and p lacem ent keep ing their d ifficulties in view. The Banks should be advised

to keep one exc lusive lady Officer in charge of Personnel Adm inistration in a ll

the Banks to a ttend to their exc lusive issues includ ing transfer, p lac em entetc.

The lad y Offic ers whose spouses a re w orking e lsewhere should b e

accom moda ted a t the same plac e. Simila rly, where the wife a nd husband

are emp loyed in the sam e b ank, they should also b e a cc omm odated at the

sam e c entre.

(b) PROVISION OF CRECHE FACILITY:

The Banks should p rovide Creche fac ility fo r the b ene fit o f c hild ren of lady

Officers who are required to attend to office as the children need parental

attention.

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(c ) LEAVE FACILITIES:

The existing Ma ternity Lea ve of 6 m onths a t a time should a lso be extended in

case o f ad op tion of a c hild (from p resent 3 months).

3 months additional sick leave be sanctioned after attaining the age of 45

yea rs as lad y officers are p rone to d isea ses a t this age.

Child Ca re leave as ap plicab le to the C entral Government em ployees should

be ma de ava ilab le to lady offic ers.

(d) PATERNITY LEAVE:

The Pa ternity lea ve o f 30 days should b e introduc ed for officers on 2

occasions.

(e ) LFC/ HTC:

Spouse emp loyed in the same bank to be p ermitted to a va il LFC sep arately

as per ind ividua l elig ibility. The lady officers should be p ermitted to take the ir

dep end ent p arents and parents in law a long with them on LFC/ LTC.

(f) DEFINITION OF FAMILY:

The parents, fathe r-in-law & mo ther-in-law, d ep end ent of an o fficer, sons and

daughte rs, brothers and siste rs d ivorced or deserted , daughte rs or siste rs etc

to b e treated as memb ers of family for the p urpose o f LFC/ HTC a nd me dic a l

facilities.

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PART IV

SUPERANNUATION BENEFITS:

The emp loyer has an ob liga tion to e nsure tha t the em ployees having served

the institution a lmo st life time a re p rovided a deq uate superannua tion bene fits

so that they are able to live a life of dignity, honour and above all a

com fortab le life for having g iven the ir b lood a nd sweat to the institution.

The supe rannuation e xpe nditure c annot b e c onsidered as a c ost a nd be

ma de subjec t ma tter of negotiations. The c om pensa tion pa id in the form o f

superannuation have been described by the highest court of the country as

deferred wa ge s pa id to a ll 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 provided for the benefit of Gratuity, the

Provident Fund or Pension, Leave Encashment at the time of retirement,

Medical facilities, and several other welfare facilities.

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

d ialogue betw een the Officers Organisa tions and IBA as to the imp roveme nts

tha t are req uired to be made in the p resent superannua tion bene fits.

PENSION:

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The Banking Industry has introd uc ed the Pension Sc hem e w ith effec t from

1.1.1986 after protracted discussions and negotiations between the Officers

Orga nizations/ unions and the Ind ian Banks Assoc iation in the yea r 1993. The

Pension Schem e has rem a ined as such since the beg inning of the schem e inthe Banking industry.

The Government servants have seen tw o pay c om missions during this period

and if we c onsider the d a te o f imp lem enta tion a s 1.1.1986 there have b een 3

Pay Commission reports providing very comprehensive improvements in the

superannua tion bene fits to the c ivil servants in the Government.

The Pay Commissions have taken a very pragmatic v iew in the last 3 Pay

Comm ission Rep orts and have m ade very substantia l cha nge s in the schem e.

There is a need to take the same view as reg ards the Pensioners in the

banking industry as well.

The period ica l review of Pension scheme is the responsibility of the

Ma nag ements of the Banks. It cannot be tag ged to bipa rtite settlements

which has adversely affected the pensioners and ultimately the pensionsc hem e rema in as an archa ic one in the Banking Industry. As and when there

are improvements in the central Govt. Pension scheme, the IBA should invite

the neg otiating unions and imp lement the same

Pension c onsists of the following p arts:-

a . Basic Pensionb . Commutationc . Dearness Allowance

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The DA fo rmula a nd neutraliza tion should b e a t par with serving offic ers.

GENERAL:

The vo luntary retirem ent p rovided in the Officers Service Rules should be

incorporated in the Pension rules and they should also be made eligible for

Pension w ithout a ny d isc riminat ion.

Pension scheme should be extended to all those who have been denied

earlier on the basis of the misinterpretation of the understandings reached

with IBA in particular those who retired under voluntary retirem ent schem e as

per the service reg ula tions / resigne d a fter com pleting 20 yea rs.

The officers who joined the bank be tween 01.11.1993 and 26.01.1996 have to

be c ove red under the pension reg ula tions.

Provision of additional service as per the Pension Regulations to the extent of

5 years should be extended to each and every retirees in the banking

industry.

Those ha ving relaxa tion o f ag e a t the time of recruitment on a c count of

disability etc., also to be extended additional period of 5 years to his / her

servic e q ua lifying for pension.

Also, for Ex-servicem en the ir past services rendered in the Armed Force should

be a dded to his / her service fo r qua lifying for pension.

FAMILY PENSION:

The Family Pension should be on par with the Government and be a t 30% of

last d rawn p ay by the office r ac ross the b oa rd to every one. The regular

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family pension will be payable for 10 years or till the 70th year of notional age

of the dec eased .

NEW PENSION SCHEME

The emp loyees and office rs who joined the b anking industry on o r a fter

01.04.2010 should be governed by the original pension settlement signed on

29th Oc tob er 1993 and Ga zette d in the yea r 1995.

GRATUITY:

The Gratuity should be pa id at the rate o f one month sa la ry and a llowances

without any ceiling . The gratuity should be c om plete ly exemp t from p ayment

of income tax.

PROVIDENT FUND:

The Prov ident Fund should be a t the ra te of 12% of the tota l sa la ry and

a llow ances. The Provide nt Fund should be p ayab le to a ll emp loyees.

ENCASHMENT OF LEAVE:

Encashment o f entire leave a t c red it should a lso b e p ermitted on resignation,

removal and compulsory retirement.

The existing ceiling o n enc ashme nt of leave should b e enhanced to 360 days

a t the time o f resigna tion / superannua tion. The ent ire amo unt should be

exempted from income tax as in the case of the Central Government

Employees.

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MEDICAL BENEFIT SCHEME:

A c om prehensive Medica l Sc hem e for pensione rs/ retirees should be framed

and introduced in all the banks as available now in the case of executive

d irec tors and CMDs of the Banks.

WELFARE ACTIVITIES:

A separate allocation of funds for improvements to welfare of the pensioners

should b e made every year. The fa c ilities like Holiday Home, c linics, Transit

House e tc ., should b e m ade e lig ible for pensioners a lso.

LFC/ HTC FACILITY:

LFC / HTC Fac ility should b e extended to the ret irees a lso a t p a r with serving

employees.

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Part V

NON - MONETORY ISSUES RELATING TO WORKING ENVIRONMENT ETC.,

GENERAL ENVIRONMENT AMBIENCE WORKING HOURS ETC.,

It is the d uty of the ba nks to provide a n app rop riate environment, am bience

and above a ll the HR systems a t a ll b ranc hes. The o ffice rs fra ternity should

a lso be provided with a ll amenities such a s supp ly of refreshment, beverages

etc., inside the branch premises in view of the pressure of work, long stay in

the offic e e tc.,

The environment should a fford a n op portunity for full exposure of the

creativity and also efficiency of the officers while discharging their duties to

the customers as we ll as the b ranc hes.

The b anking industry is now eq uipped with exce llent tec hnology

advancement, continuous updation of computers, servers etc., there is

therefore a need for the Ma nag em ent to ado pt app rop ria te HR initiatives to

encourage and motivate the Officers to acquire knowledge in these fields

and g ive their best to the institution.

The Banking Industry is entrusted with the responsibility o f enhanc ing the

ec onom ic p rosperity of the country and a lso the GDP growth w ith a view to

enhance the standa rd of living of the co mm on man. The manag ement

should ensure tha t rea sonable working hours are fixed ra ther than p ressurizing

the office rs which may lead to failure and resultant loss of hea lth o r upset the

officers routine. Henc e, the working hours for officers should be d efined and

regulated.

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5 DAYS WEEK:

Five Day week is a lrea dy ava ilab le in the interna tiona l banking system. It is

a lso a va ilab le in our country in RBI, Cent ra l and Sta te Governments and in

Public Sec tor Undertakings. Henc e, it should b e introd uced immed ia tely in

the entire banking industry.

The working hours should not exceed 36.5 hours in a we ek. The da ily working

hours should no t be m ore than 6.5 hours in the norma l course.

Any working hours, more than 7 hours a day, should be compensated

mo neta rily to the extent o f twice the ac tua l hourly sa lary in the no rma l c ourse.

They should a lso b e m ade e ligible to take weekly off to the extent o f

add itiona l hours of d uty rendered by them.

The Officers who a re c a lled upon to wo rk on weekly-off d ays and holidays,

should be compensated as above and in addition be permitted a

compensatory off on a date convenient to them and such weekly offs be

c red ited to the leave ac count.

LEAVE RULES:

The existing lea ve rules will have to be c om prehensively reviewe d and ma de

officers friendly and flexible as available in several other sectors of the

economy.

The a va iling o f lea ve should be made flexible. The o ffice rs should be free to

ava il the leave a s and w hen required . They should a lso have the bene fit of

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sp litting the d ay into hours and ha lf-day, full-day etc ., and long er pe riod as in

the c ase o f seve ra l othe r corpora tes.

TYPES OF LEAVE:

The existing system of m ainta ining sep arate lea ve a ccounts ma y be d one

aw ay with. A co mm on ac count of leave should b e introduced w here they

should be able to combine all types of leave into total number of days of

lea ve a vailable to them and use the sam e a s pe r their ow n req uirement.

However for the purpose of better understanding we re-produce the types of

lea ve ava ilab le and the need to review the same.

a. Ca sual lea ve should b e inc rea sed to 15 days;b . Privilege Leave 33 days in a year.c . Sick Lea ve 15 da ys in a yea r ( on full pay) without any ceiling ;d . Restric ted holida ys: A m inimum of 10 da ys in a year for festivals and

othe r persona l, relig ious func tions etc ., ma y be permitted to b e a va iled

as holida ys by the officers.

e. Spec ial lea ve fo r stud y, sports, soc ial and cultura l ac tivitiesf. Lea ve on loss of p ayg. Sabb a tical lea ve

INTRODUCTION OF LEAVE BANK:

The leave so c alculated should b e c red ited to the leave a ccount of the

office r on a c onsolida ted basis. The o ffic er should b e e ligib le to ava il the

leave on the basis of his req uirem ent . The intermittent holida ys and w eekly

offs should b e exc luded while sanc tioning lea ve.

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The Office r should have the opportunity of encashing the b a lance ava ilab le

in the c onsolida ted lea ve a ccount onc e in a yea r to the extent of 50% of the

leave available in his account at the beginning of the subsequent year.

Further, an office r should be p ermitted to enc ash the entire leave a t his c red itat the time of retirement including sick leave and no ceiling should be

imp osed for ac cumula tion o f leave. The o fficer may be pe rmitted to transfer

lea ve to ano ther officer in c ase o f need for medica l purpose.

OUTSOURCING :

Work done on a reg ular basis should no t be o utsourced .

DISCIPLINARY RULES PROCEDURE:

We have submitted a very comprehensive note to the Indian Banks

Assoc ia tion for the review of the existing c ond uc t rules and p roc ed ure a nd to

introduce certain changes in tune with the changing environment. (Copy

enc losed ) The issue should b e d isc ussed for imp lem enta tion.

ADMINISTRATIVE TRIBUNALS:

The IBA should take up with the Government , the introd uc tion of an exc lusive

Banking Ad ministrative Tribuna l for the banking Industry in order to dea l with

a ll the service a s well as d isc iplinary matters in respec t of officers simila r to

Centra l Ad ministrative Tribuna l.

Discussion of Disc iplinary Ac tion procedure

An exclusive exercise should be carried out by IBA for bringing appropriate

amendments in the Discipline and Appeal Regulations in due consultation

with all the Four Officers Organisations.

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affecting the industry and the impact of the directives of the outside

agencies on the officers fraternity are brought to this structured forum and

decided to avoid unnecessary irritations in industrial relations in the banking

industry. The p rop er de ta iled and cod ified account of a ll disc ussion should b eexchanged.

The struc tured forums are already in vogue in a ll the banks. The issues

referred to the b anks by the IBA a nd the Gove rnment is d iscussed a t the bank

level negotiations by each organization which leads to discrepancies in the

implementation of any understandings reached between the organizations

and the ma nageme nt.

Certa in Industry level issues have to be d isc ussed a t IBA / Government Level.

Hence, there is a need to have structured forum at IBA / Government for

period ica l discussions. Hence, there is a nee d to bring a ll suc h issues/ d irec tives

of the IBA and the Government before a structured meeting and settle to

avoid freq uent ag ita tion a nd industria l unrest in the banking industry.

RECRUITMENT / RETIREMENT:

The Banking industry is in doldrums due to inad eq uacy of the w orkforce. The

lop side d p olic ies and the c onventional app roa ch of the Government and the

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

Financ e have c rea ted a b ig g ap in the ave rag e age of the va rious groups of

em ployees in the banks. There were no rec ruitments virtua lly for mo re than 2

decades and as a result, the age difference between the old employee and

the new employee is so wide that the average age of the workforce is

adve rsely affec ted .

A c lose review of the situation should be considered and nec essary step s to

be taken for a p ragm atic succ ession p lan. The large sca le retirem ent is

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adversely affecting the workforce since experienced hands are getting

retired where as a large chunk of new recruits are forced to take up higher

positions and the p romotions are g etting ac celerate d in c om pa rison with the

earlier situation thereby causing serious problems of seasoning and groomingof h igher level officers in the b anking industry.

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

In view of shortage of manpower, the retirement age should be re-fixed. We

have the fo llow ing suggestions:-

VOLUNTARY RETIREMENT:

Redefine the voluntary retirement and re-fix the minimum eligibility for the

purpose.

AGE OF SUPERANNUATION:

The a ge o f superannua tion to be raised to 65 yea rs for all officers.

WITHHOLDING OF GRATUITY ON RETIREMENT / RELEASE OF TERMINAL BENEFITS :

The p resent adhoc system of w ithhold ing gra tuity and harsh d ec ision to set off

the gratuity amount towards loss caused etc., should be reviewed keeping in

view , the rec ent judicial p ronouncem ents. In any case, there should not b e

stop page or denial of gratuity to the office rs.

No disc ip linary ac tion should be initiated a fter superannua tion.

All Termina l bene fits should be released pend ing d isc iplina ry proc eedings if

bank fails to complete the proceedings before superannuation as is being

done in the c ase o f CBI c ases being pend ing.

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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 Cove r should b e ta ken for norma l as we ll as acc identa l dea th.

REVIEW OF LOANS AND ADVANCES :

In view o f the inc rea se in cost of c onstruc tion of house a nd fla ts, we need to

have a comprehensive review of House Building Advance to officers by

suitab ly enhanc ing the limit to Rs.50 lacs a t Simp le ra te of interest w ithout any

slab.

Since the Conveya nce Loa n has not b een revised for long , we need to

enha nc e the C ar Loan limit to Rs.10 Lacs and Two Wheeler Loan limit to Rs.1

lac a t Simp le ra te of interest w ithout any slab.

The repa yment o f the a bo ve loans should be extended upto 75 yea rs of a ge .

ROAD TAX ON VEHICLES:

In view of All India transferability of officers, the Road tax on vehicles of

d ifferent Sta tes should be p a id by the bank on inter-sta te transfers.

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DATE OF RETIREMENT:

Those who we re b orn on the 1st of a month to be retired on the last day o f the

sam e m onth, and not the p revious month.

PROTECTION OF EMOLUMENTS:

The em oluments d rawn by an Office r should be protec ted on his transfer from

one plac e to another.

TRANSPORTATION OF PERSONAL BELONGINGS:

The Banks should take the responsibility fo r shifting the persona l effec ts of the

office rs on transfer from one p lace to anothe r. In the a bsenc e o f such fac ility,

the Officers should be reimbursed the full expenditure on certificate basis.

INCIDENTAL EXPENDITURE ON TRANSFER:

To meet ad d itiona l expenditure towa rds ed uca tion o f child ren, housing e tc .,

officers should be pa id two months salary to c ompensate incidental

expenses on transfer. In c ase o f transfer outside the Sta te , 3 months' sa lary

should be pa id towa rds incidenta l expenses. In case of transfers to fa r off

centers and the p laces of inclement weathe r and living cond itions, there ha s

to b e high com pensa tion a s inc identa l expenditure on transfer.

OTHER ALLOWANCES SUCH AS HILL AND FUEL ETC.

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All the a llowanc es other than wha t have be en c overed in the ea rlier chapte rs

should b e enhanced a pp rop ria tely.

AREAS DECLARED AS SEZ/NEZ/EPZ:

The b ranc hes com ing und er the ab ove areas should be trea ted on p ar with

Me tro Centres for all a llow anc es and perquisites.

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

NAXAL PRONE AREAS:

Spec ial allow anc e a s preva iling in Central Government / RBI for Officers serving

in these a rea s should be extend ed to Bank Officers.

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

THE ORGANIZATION:

In view of the positive role played by the Officers Organizations there is a

need to revise the existing arrangements as regards the special leave to the

office-be arers of the o rga niza tions. The existing a rrang em ent is grossly

inadequate in comparison with the size and the growth of the banking

industry and eq ually the memb ership of the office rs organiza tion the

structure of the organization and hence appropriate enhancement in the

lea ve fa c ility need s to be c onsidered .

The senior office-bea rers of the Officers organizations should ha ve the duty

off in view of the fact that they will be dealing with all the personnel matters

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relating to the offic ers fra ternity and they ma y not be a b le to a ttend to their

deskwork. If the Office Bearers are denied this facility it would cause great

harm to the officers organizations in the banks.

The O ffice -bearers of Assoc iations should b e extended immunity from

transfer/p lacem ent. The Centra l /Sta te leve l office-bearers should be given

duty-off on par with w orkmen o rganizations. The fa c ility is due fo r rev iew.

THE LOAD FACTOR:

The neg ot iations on c ost of sa lary revision should b e c onfined only for the

purpose of deciding the load factor in respect of Basic Pay and Dearness

Allowance.

DATE OF EFFECT:

The d a te o f effec t for imp lem enta tion o f the settlement on the b asis of the

cha rter of d em ands should be from 1.11.2012.

RIGHT TO SUBMIT SUPPLEMENTARY CHARTER:

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

demands, as made out in the Charter during the course of bilateral

d isc ussions.

All anomalies a rising out o f Sa lary Rev ision should b e resolved irrespec tive o f

the c ost fac tor involved .

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Long pending issues on regulated working hours, 5 days week and

standardization of retirement benefits and improvement in compassionate

Appo int Sc heme should be discussed be fore c om mencement o f regular

wa ge revision nego tiations.

(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 considered

(i) Classification of Misconduct(ii) Abuse o f the omnibus c ond uc t Rule(iii) Authority for imposing Major Pena lties

(iv) Definition of Mo ra l Turp itude & am end ment of B.R.A.

(v) Disposa l of d isc iplina ry ca ses & appea ls(vi)

Copy of CVC/CVO ad vice

(vii) Provision of Personal Hearings(viii) Interpreta tion & Effec t o f Pena lties(ix) Deba rment period(x) Sanc tion of Prosec ution/ Arrest(xi) Suspension & Subsistenc e Allowanc e(xii) Defenc e Rep resenta tives- No.of p end ing cases(xiii) Agreed List- LODI(xiv) Jurisd ict ion o f CAT(xv) Proceedings after Retirement(xvi) Issuanc e o f Cha rge Sheet(xvii) Other issues

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(i) CLASSIFICATION OF MISCONDUCT

In the O ffice rs Servic e Reg ulations, Minor and Ma jor pena lties have b eenclassified, but there is no classification of Minor and Major misconduct. Breach

of a ny provision o f the c ond uc t rules is to be d eeme d as Miscond uc t. It is left

to be decided by the Disciplinary Authority (in short DA) whether to initiate

proceedings under Minor/Major penalty clause thereby leaving scope for

sub jec tivity. In case o f Awa rd Sta ff and a lso G ove rnme nt em p loyees, ma jor

and minor misconduct has been defined as a result one doesnt get major

pena lty for a m inor misc ond uc t. In case o f Officers, thoug h a la rge number ofcases of p roc eed ings under ma jor pena lty end up in exoneration o r aw ard o f

a m inor penalty de pe nding upon gravity of misconduc t proved a fter enquiry

but in very many cases of minor misconduct, the officers end up getting a

major penalty. Also, there are mental blocks in the minds of some DAs who

think that if Major Penalty proceedings are initiated, minor penalty or

exoneration or withdrawa l of charge sheet etc .cannot be d one.

Rec omm endation

Minor and Major misconducts should be defined with clear provision that

minor pe nalty or exoneration may be awa rded a fter conc lusion of ma jor

penalty proceedings but major penalty cannot be imposed in cases of

defined minor misconduc t.

(ii) ABUSE OF THE OMNIBUS CLAUSE

Thoug h cond uc t rules have been elaborated in the Reg ula tions, the

regulations at the same time contain an Omnibus Clause to fit the

miscond uc t not spec ifica lly de fined into the om nibus c lause. The t ragic rea lity

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is tha t in mo re tha n 90-95% cases, the o ffice rs are boo ked under this Om nibus

Clause. It p roves beyond doub t tha t where miscond uc t is spec ifica lly de fined ,

violation is minimal. But more importantly, it indicates that there is an

unbrid led tend enc y am ong the DAs to a buse this provision a nd any co nduc tis dubb ed as misconduc t by invoking this c lause w hich ought to be attrac ted

in rare c ases but w hich is app lied in a n overwhelming num ber of c ases. If this

clause is annulled and instead if the vast variety of misconducts covered

under this clause over the last over three decades are analyzed and

specifically provided in the conduct rules, it will lead to better compliance

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

unbec om ing of a Bank Officer must be explic itly stated in the c onduct rules.

Rec omm endation

The o mnibus c lause in the cond uc t rules should b e d eleted .

(iii) AUTHORITY FOR IMPOSING MAJOR PENALTIES

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

imposing capital punishment should not be lower than the Appointing

Authority. Since a ll c ap ital punishments lea d ing to cessa tion of servic e a re

c lassified under ma jor pena lties, it a utom atica lly follow s tha t fo r imp osing any

ma jor pena lty, the Disc iplina ry Autho rity should not be low er in rank tha n the

Appointing Authority. Though this principle is follow ed in the G ove rnment a nd

va rious other Organisations, includ ing the Sta te Bank of Ind ia , in na tiona lized

Banks it is not b eing follow ed .

Rec omm endation

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

to a wa rd ma jor penalty.

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

Though the term Moral Turpitude a ppea r p rom inently in the Disc iplina ry

&Conduct Rules and on a great number of occasions, important decisions to

p roc eed ag ainst the Officers or to p lace them under suspe nsion ha ve to be

taken for the ac ts involving Mora l Turp itude, it is a queer paradox that wha t

constitutes Mo ra l Turpitude ha s not been c lea rly or exhaustively defined either

under law or in the conduct rules, though there are various court judgmentswhich to some extent explain this term. Existence of a general provision in the

Banking Reg ula tion Ac t Sec tion 10(1)(b)(i) which sta tes tha t no em ployee

who is convicted by a court of law for an act involving moral turpitude can

be continued in service enormously increases the need and importance of

defining wha t is Mora l Turp itude, particula rly in the c ontext o f norma l day to

day bank work in order that large number of bank officers do not become

unwary victims of these provision and suddenly lose their job with no recourseavailab le o r a reasonable hope of rec laiming the lost job due to a pa infully

slow and exasperating legal system and no provision for getting full back

wa ges if the convict ion is set a side late r on. When the office r is c onvic ted , he

is summarily discharged or even dismissed without holding enquiry etc but

when the conviction is set-aside after proper trial, the intervening period is at

best treated as deemed suspension for payment of subsistence allowance

only instead of payment of back wages. In the Indian Overseas Bank, even

the subsistence allowance is not paid and this period is treated as break in

service.

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To e laborate , the g ravity of prejudice suffered by Officers on a c count o f this

while p erforming the no rma l day toda y duties in the b ank can be seen b y the

fac t tha t Mo ra l Turp itude ha s been de fined thus in the Am erican settled law:

Moral turpitude refers generally to conduct that shocks the public

conscience. Offenses such as murder, voluntary man slaughter, kidnaping,

robbery and aggravated assaults involve moral turpitude. However, assaults

not involving d angerous weapons or evil intent have been held not to involve

moral turpitude. Conviction of crimes of moral turpitude may also disqualify

som eone from an employment opportunity. The p rec ise definition of a c rime

tha t involves mo ra l turp itude isn't a lwa ys c lea r, but the above serious c rime sonly are a lwa ys c onsidered c rime s of m oral turpitude.

In terms of the above and umpteen judgments given by the courts in India,

out of the above list bribery and frauds committed by an officer himself shall

qua lify to be a c ts involving mo ra l turp itude. But, it has been seen tha t va rious

normal and seemingly innocuous normal banking acts have been routinely

covered by the tria l courts und er Sec tion 120 B or sec tion 420 IPC resulting inthe discharge or dismissal of the officer. By the time the appeals are disposed

off the officer might cross the normal retirement age and he neither gets

bac k wages or any other com pe nsation for loss of em ployment.

Rec omm endation

Mora l Turp itude should be c lea rly defined in the c ond uc t rules. In the banking

context, acts of accepting bribe or fraud on the part of the officer himself

should be considered the one involving moral turpitude. Full back wages

should be paid if the officer is held to be innocent and his conviction is set

aside after disposal of appeal. During pendency of the appeal, the officer

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may be placed under suspension. Admission of appeal and/or stay against

sentence should be deemed as stay against prosecution for the purpose of

compliance of provisions of Banking Regulation Act since the case is

accep ted for retria l. We should a lso de ma nd from the governmentSuitab le amendme nt to Sec . 10(1)(b)(i) of the Banking Reg ula tion Ac t.

(v) DISPOSAL OF DISCIPLINARY CASES & APPEALS

It is laid down in the special chapter of CVC Manual that no cognizance of

the misconduct will be taken if the action of the officer is more than two

Inspec tions or four year old provided there is no fraud in which c ase there w illbe no limita tion of time. But cha rge sheet continues to b e served even a fter

lapse o f 10 or more yea rs. Further, thoug h the m aximum time p ermitted for

service of charge sheet and for completion of disciplinary proceedings are

la id dow n, in prac tice , it is ra rely adhered to . The time fo r filing o f an appea l

against decision of the disciplinary authority as also the time for disposal

the reo f are la id dow n in the sa id chapter. Though, limita tion of time is insisted

upon for filing of the appeal and delay in filing is rarely condoned, the timelimit for disposa l of the a ppea l is rarely ad hered to and d ispo sa l of ap pea ls in

ma ny cases is delayed for yea rs tog ethe r. Conseq uently, the office rs

continued to suffer particularly when they are under suspension or when

cessation of service ha s been effec ted .

Rec omm endation

It is recommended that the laid down instructions should be meticulously

follow ed a nd no fault should b e found with the ac t of the officer after 2

Inspec tions have ta ken p lace or a p eriod of four year has expired . Further, if

the c harge shee t is not served within the stipula ted period of three m onths or

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if the entire proceedings are not completed within the stipulated time of six

months as provided in the Vigilance Manual, the suspension of the officer

should be automa tically revoked with ba c k wa ges and in case the

proceedings are not completed even within a period of one year, the caseshould be deemed to have been concluded in officers favour and he be

deem ed to have been exonerated . In ca se, the cha rge sheet is not filed b y

CBI within the time limit of 90 days, ba il is autom atica lly granted but same

princ iple is not a pp lied for revocation of suspension. It is rec om mended tha t

in suc h cases, suspension should be revoked without p rejud ice to the dec ision

of the Court c ase. Simila rly, if the appea l preferred by the office r is not

disposed off within the stipulated period of three months, it should bedeem ed to have b een allowed .

(vi) COPY OF CVC/ CVO ADVICE

As per la id d ow n instruc tions a cop y of C VC a dvice is req uired to be furnished

to the delinquent officer. In prac tice , how eve r, it is ob served tha t the

authorities simp ly provide the operative part of the CVC a dvice but the entirecorrespondence between the Disciplinary Authority and CVC is not made

ava ilab le which de fea ts the very purpose of the p rov ision. Furthe r, there is no

system of providing the advice of the Chief Vigilance Officer of the Bank

where CVC jurisd ict ion is not a ttrac ted. This d istinction is wholly unwarranted.

The a dvice o f CVO is a t a low er footing m ust b e furnished when there is

explic it p rovision to p rovide the a dvic e of the C VC.

Rec omm endation

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The CVC/ CVO advice a longwith the entire c orrespondenc e should be ma de

ava ilab le. It is further, rec om me nded tha t the CVC/ CVO should only

rec ommend c a tegory of pe nalty to be imposed i.e. Ma jor or Minor and not

the specific punishment because in that case he assumes the role of theDisc iplina ry Authority himself. Further, in case of ap pea l furthe r refe rence

should no t be m ade to CVC p articularly if the Appella te Autho rity prop oses to

give a lower punishment w ithin the sam e c ate go ry alrea dy rec om mended b y

the CVC.

(vii) PERSONNEL HEARING.

The d isc ip linary proc ed ures have been g radually evo lving in favour of the

charged officer and in the past some favourable changes have taken place

like provision of enquiry, making available report of the Inquiring Authority to

the charged officer so that he can argue against his findings, making

ava ilable of c op y of CVC advice etc . But, an important p rovision like grant of

a pe rsona l hea ring to the c harged officer before award o f the penalty has a ll

a long be en denied. As a result, he does not get a chanc e to argue againstthe proposed penalty before hand so that some aspects of the case which

might have escaped the notice of the Disciplinary Authority can be pointed

out in goo d time and he will be ab le to ta ke a more ba lanc ed and reasoned

view . After the final dec ision is taken by the DA, it bec om es d ifficult to undo

the injustice as there is general reluctance to correct the mistakes and the

appea l system is a lso loaded aga inst the emp loyee. There is a lrea dy a

provision for grant of a personal hearing to the workman employees.

Rec ently, the Honb le Suprem e Co urt has dec ided in a c ase rela ted to Sta te

Bank of India O ffic er tha t while d ec iding the app ea l the Ap pointing Authority

must give a persona l hea ring. By that log ic , the DA should a lso g ive p ersona l

hea ring to the o fficer. The same log ic should ho ld g ood fo r review p etition as

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well. This provision is a lso there in the rules app licab le to o fficers working in the

Govt of India.

Rec omm endation

The DA should ta ke a tenta tive dec ision and 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 p roc ed ure should be ado pte d by the Ap pellate Authority

/ Reviewing Authority while d isposing off the appea l of the offic er.

(viii) INTERPRETATION & EFFECT OF PENALITIES.

While the minor pe na lties are simp le and ea sily understandab le, som e of the

ma jor pena lties are very technica l and can not b e e asily understood by the

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

prom otion o f the office r is withheld when no p rom otion is ac tua lly due to him.

This results in undue prolong a tion of the rigour of the p enalty which might not

have been the intention of the DA and the penalty though minor in effectsbec om e ha rsher then a major pena lty. Likew ise, pena lty of rec overy of loss is

a minor penalty and logically a symbolic recovery of small sum should be

effected but at times it is clubbed with a major penalty and amount of

rec overy runs into lacs. For example rem oval of service w ith rec overy of two

lac s. Furthe r, when a n officer is reverted to a low er grade, the reversion is

taken as a permanent reversion unless the officer re-qualifies and earns back

the promotion, whereas in government reversion is for a period of two years

whereafter the officer is plac ed ba ck in the higher scale from where he w as

reverted . It is a lso a prac tice to g ive m ore than one pena lty like reversion to

lower or the lowest grad e c oup led with red uc tion in pa y etc .

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Rec omm endation

CCA Rules should b e follow ed in this respec t in the banks a lso.

(ix) DEBARMENT PERIOD.

Deb arment Rules a re d ifferent in different banks. In som e b anks, there is no

deb arment w hen m inor pena lty is aw arded while in som e o thers de ba rment

period extends to 15-20 yea rs a lso. No deb arment pe riod is stipulated in case

of the penalty awarded is Reversion to a lower grade whereas in case of

Govt emp loyees deb arment period o f reve rsion is defined. In som eorganizations, when criminal proceedings are pending whether for

misconduct pertaining to Bank or some other 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 sometime beyond

the no rma l retirem ent d ate a s we ll.

Rec omm endation

In case of minor penalty, there should be no rigor and no debarment for

p rom otion and results if any p lac ed in the Sea led Cove r should be g iven

effec t to. The ma ximum deb arment / rigo r for a m ajor penalty should no t be

more than one yea r.

(x) SANCTION OF PROSECUTION/ ARREST

There are d ifferent rules in d ifferent banks. The autho rity em pow ered to

sanction Prosecution of an officer always acts under the influence / pressure

of the CBI / CVO and is not permitted to ac t indep end ent. Further, while

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provision has been 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 sanction before arresting the

officer.

Rec omm endation

The p ow er to sanc tion Prosec ution o f an officer should be vested in his

Ap pointing Autho rity. The ground rules should be la id dow n for g iving

sanction for prosecution and the Appointing Authority or the Disciplinary

Authority should be given a free hand to a c t indepe ndently. Onc e hedec lines to g ive sanc tion, he bec om es a functus offic io a nd sanc tion c annot

be sought unless fresh evidence is p resented befo re him. A p rovision should

also be incorporated to obtain sanction of the Appointing Authority before

arresting the o ffice r.

(xi) SUSPENSION & SUBSISTENCE ALLOWANCE.

Thoug h the instruc tions provide tha t an officer will not b e p laced under

suspension before investigation, in practice frequent deviations are made.

Ground rules for ordering suspension of an officer are seldom followed.

Suspensions are m ostly effec ted as a knee jerk rea c tion a nd is inva riab ly

behind the ba ck of the officer without giving him any hearing. In mo st ca ses

the option of transferring the o fficer instea d is not even c onsidered. Onc e the

officer is p lac ed und er suspension, there is virtua lly no review thereo f. Review

mec hanism is to ta lly absent. Review is gene ra lly on the papers and in a lmost

all the cases reinstatement of the officer takes place only after the

proc eed ings are c onc luded and final order is passed . At the time o f pa ssing

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final order, the DA is niggard ly in his treatment of the suspension pe riod . In

case of arrest of an officer, there is provision of deemed suspension after 48

hours of the arrest but there is no simultaneous provision of a deemed

reinsta tem ent afte r he is acquitted . There a re different rules about pa ymentof subsistence allowance in the government, in the award staff within the

banking industry and within the d ifferent banks.

The Disc iplina ry Autho rities are too niggard ly in the ma tter of trea tment of

suspension p eriod while passing final order. It has been seen tha t excep t in

cases whe re the office r has been exonerated , suspension p eriod is trea ted as

such irrespec tive of the gravity of the pe nalty awa rded and nothing morethan the subsistence allowance already paid is paid at the time of

reinsta tement which is grossly unfa ir. Benefit of Annua l increm ent a lso is not

g iven even for c a lcula tion of the subsistenc e a llow ance.

Rec omm endation

Ground rules of suspension must be m et iculously followed . Suspension of anoffice r prior to comp letion of investigation should not be effec ted . The

op tion to transfer the o fficer to a distant p lace instea d of p lac ing him under

suspension should be mandatorily considered as it is good for the officer as

well as Bank. In the ra re c ase w here suspension o f an officer is the only

choice, the officer should be given an opportunity to show cause before

p lac ing him under suspension. Review of suspension should be regular and

mea ningful. Suspension should not be continued a fter investiga tion

completed since the accused officer would not then be in a position to

tamp er with the evidenc e or influenc e the witnesses. In ca se, the ba nk or

the Investigating agencies fail to serve the charge sheet within the time

stipulated in the Vigilance Manual or the proceedings are not concluded

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within the given time frame the officer should be reinsta ted . In case of

detention beyond a g iven period or convic tion b y a Court, there is a p rovision

for Deemed suspension of the officer. Similar provision of deem ed

reinstatement needs to be provided in cases where regular bail is granted orwhen the convic tion is set aside.

The rate o f Subsistenc e Allow anc e should be uniform. For the first three

months half the salary and allowances should be paid and after six months,

which is the period provided for completion of proceedings, subsistence

a llowance eq uivalent to full sa la ry and allow anc es should be pa id.

If the disciplinary proceedings conclude in the imposition of the minor

penalty, the suspension ought to be held as totally unjustified as already held

by the Hon b le Suprem e Court , and full back wa ge s should be pa id . The

Committee was of the view that barring the cases where the penalty

awa rded is cessa tion o f service, full sa lary for the suspension period should b e

paid as there is no justification to continue suspension after the initial few

mo nths when investiga tion is cond uc ted .

Notional annual increment should be taken into account for the purpose of

calculating subsistence allowance and if salary revision is taking place during

the period of suspension, a rrea rs should be p a id for the p eriod prior to date of

suspension and enhanced subsistence allowance from the date of

suspension should b e pa id.

(xii) DEFENCE REPRESENTATIVES

The position is not uniform. In a ll the Nationa lized Banks, Defenc e

Rep resenta tives are a llow ed to have 2 pend ing cases at any p oint of time a s

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aga inst 3 cases la id d ow n in the CVC Manual. Only in Sta te Bank of Ind ia 3

pend ing c ases are a llowe d . Furthe r, though there is restric tion of 2/3 cases

for the defence representatives, there is no such restriction for the Presenting

Officer or the Inquiring Authority. There are a lso d ifferent p rovisions in thisreg ard for officers and a wa rd sta ff. Whereas, in case of officers only serving

officer is allowed to defend in case of workmen any office bearer of a

reg istered Trade Union whether ret ired or serving a nd whether belong ing to

same or different bank is allowed to defend the charge sheeted employee.

This d istinc tion / d isc rimina tion is wholly unwarranted.

Rec omm endation

There should b e no restric tion on the num ber of cases to b e ta ken up b y any

defence representative as in the case of Presenting Officer / Inquiring

Authority so that the Officers are not deprived off the assistance of trained

persons who are no t easily ava ilab le a nd particularly be cause o ffic ers are no t

allowed to take the assistance of lawyers, there is a strong case for allowing

the retired officers of the bank to give this service to the officers of his parent

bank.

(xiii) AGREED LIST / LODI.

This list o f o ffic ers whose honesty / integ rity is taken to be doubtful is prep ared

at the back of the officers and in many cases it is not as per the letter and

spirit of the laid d ow n norms. Even where afte r enq uiry the fraudulent m otive

is not proved and the penalty awarded is not so serious and where acquittal

is more or less on merit, names of officers are kept in the LODI and cases are

not scarce when officers are unnecessarily put under watch by placing their

names in the agreed list and the officers concerned do not even come to

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know about it because the sensitive and non sensitive positions ar

Charter of Demands Officers Final

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