SALARY CENTRAL GOVT VS BANK OFFICER

Allahabad Bank, Corp Bank, Dhanlaxmi Bank out from PCA restriction of RBI

The RBI on Tuesday lifted lending curbs on two more public sector banks (PSBs), Allahabad Bank and Corporation Bank, by removing them from its weak-bank watch list after the government infused capital in them.

Private sector Dhanlaxmi Bank too has been taken out of the Prompt Corrective Action (PCA) Framework.

Earlier on January 31, Bank of India, Bank of Maharashtra and Oriental Bank of Commerce were taken out of the PCA Framework.

In a statement, the RBI said the Board for Financial Supervision (BFS) reviewed the performance of banks under PCA and noted that the government has infused fresh capital on February 21 into various banks including some of the banks currently under the PCA framework.

Of these banks, Allahabad Bank and Corporation Bank had received Rs 6,896 crore and Rs 9,086 crore, respectively.

Capital infusion, the RBI said, has shored up their capital funds and also increased their loan loss provision to ensure that the PCA parameters were complied with.

The RBI further said the two banks have made the necessary disclosures to the stock exchange that post infusion of capital, the capital to risk weighted assets ratio (CRAR), tire-1 capial equity, net NPA and leverage Ratios are no longer in breach of the PCA thresholds.

The banks also apprised RBI of the structural and systemic improvements put in place to maintain these numbers.

“Accordingly, based on the principles adopted by the BFS in its earlier meeting dated January 31, 2019, it was decided in the meeting held on February 26, 2019 that Allahabad Bank and Corporation Bank be taken out of the PCA Framework subject to certain conditions and continuous monitoring,” RBI said.

Commenting on the development, Financial Services Secretary Rajiv Kumar said turnaround of public sector banks continues.

“Both (the banks) need to continue to maintain better performance & improved prudential controls for clean banking,” he said in a tweet.

The net non-performing assets (NPA) of Corporation Bank stood at 11.47 per cent of the advances at the end of December quarter of this fiscal, up from 10.73 per cent in the same period of previous fiscal.

For Allahabad Bank, the net NPA rose to 8.97 per cent from 8.65 per cent a year ago.

The RBI further it has also been decided to take Dhanlaxmi Bank out of the PCA Framework, subject to certain conditions and continuous monitoring, as the bank is found to be not breaching any of the Risk Thresholds of the PCA Framework.

Dhanlaxmi Bank’s net NPAs declined to 2.93 per cent of the advances, from 4.08 per cent at the end of the third quarter of 2017-18.

The RBI also it will continuously monitor the performance of the banks under various parameters,” the central bank said.

Five public sector banks -- United Bank of India, UCO Bank, Central Bank of India, Indian Overseas Bank and Dena Bank -- are still remain under PCA framework, which imposes lending restrictions and prevents them from expanding, among other curbs.

The PCA framework was one of the contentious issue between the government and the RBI. The government wanted the central bank to align the PCA framework to the global norms.

The PCA framework kicks in when banks breach any of the three key regulatory trigger points -- namely capital to risk weighted assets ratio, net non-performing assets (NPA) and return on assets (RoA).

Now, IBA given mandate by 14 PSBs to negotiate wages

With five large public sector banks giving a mandate to the Indian Banks’ Association (IBA) for negotiation of wages of officers up to the rank of Scale V (Assistant General Manager), the 11th bipartite wage negotiations are likely to gather speed.

Earlier mandate

The five public sector banks (PSBs) – State Bank of India, Bank of Baroda, Punjab National Bank, Union Bank of India and Indian Bank – had earlier given a mandate to negotiate wages for officers up to Scale III (Senior Manager).

The remaining 14 PSBs have given the association a mandate to negotiate wages for all scales (I to VII).

S Nagarajan, General Secretary, All India Bank Officers’ Association, said that following the revision in mandate by these five banks, about 3,300 officers of the rank of Deputy General Manager and above will be left out of the industry-wide wage settlement process.

So, these five banks individually will work out a salary package for the 3,300 officers.

These officers account for 0.90 per cent of the 3,78,783 officers who were on the rolls of PSBs and old-generation private sector banks as on December-end 2017, said Nagarajan.

IBA is understood to have enhanced the fixed-pay component from 8 per cent to 10 per cent by reducing the variable pay by 25 per cent (from 8.2 per cent to 6.2 per cent).

Why Minimum Balance Charges of Govt Banks Have Gone Up Over the Years

Two themes that I have regularly explored in this Diary are: 1) the bad loans of public sector banks (or government banks) that have accumulated over the years. 2) and the fact that there is no free lunch in economics.

Today I will address both the themes together.

As on December 31, 2018, the bad loans of public sector banks stood at Rs 8,64,433 crore, having come down a little from Rs 8,95,601 crore, as on March 31, 2018. Bad loans are basically bank loans which haven't been repaid by a borrower for a period of 90 days or more.

Despite the accumulation of such a massive amount of bad loans, banks have continued to operate. This is largely on account of the government, which is the major owner of these banks, continuing to put money into these banks.

Between April 2013 and December 2018, a total of Rs 2,16,900 crore had been invested by the government in these banks. In fact, by the end of March 2019, the government would have invested a total of Rs 2,71,367 crore in these banks. A bulk of this money has been invested between April 2017 and now.

As I have explained in the past, the government has got this money by increasing taxes on petrol and diesel, in comparison to the past. Hence, given that all of us consume petrol and diesel, directly or indirectly, we have had to pay for the bad loans of public sector banks. And given this, there is no free lunch in economics.

While a bulk of the money to keep the banks going has been coming from the government, there is another small way through which banks have been helping themselves over the years. The total amount of money collected for non-maintenance of a minimum balance in savings accounts, has gone up over the years. Take a look at Table 1, which details the total amount of money earned by public sector banks by imposing a fine for non-maintenance of adequate balance in savings accounts.

What does Table 1 tell us? Let's look at it pointwise.

1) In 2015-2016, the public sector banks collected a total of Rs 841.41 crore from depositors not maintaining an adequate minimum balance in their savings bank accounts. This jumped by around 315% to Rs 3,489.52 crore by 2017-2018.

2) A major reason for this jump lies in the fact that the country's largest bank, the State Bank of India, started fining for non-maintenance of a minimum balance in savings accounts, from April 2016 onwards. The bank used to charge for this before April 2012. Between April 2012 and March 2016, it did not charge for non-maintenance of a minimum balance. The bank managed to collect Rs 2,4833.87 crore through this route, in 2017-2018.

3) On the whole, a total collection of Rs 3,489.52 crore does not sound much. But it would have ended up hurting many individuals and families already stretched for money in the first place. In that sense, they took on some of the burden, even if a small one, of the bad loans of public sector banks.

4) The interesting thing is that the money collected by public sector banks for non-maintenance of a minimum balance in a savings accounts, has slowed down between April to September 2018, in the current financial year. The total amount collected stands at Rs 989.15 crore. Even if the collection continues at the same rate, the total collections in 2018-2019, will be significantly lesser than that in the previous financial year. This basically means that a large number of depositors have caught on to this trick of banks and have been maintaining the minimum balance in their accounts. But there is still a significant number who is unable to do this.

5) How have private banks been doing on this front? Take a look at Table 2, which lists out the total amount of money earned by major private sector banks by imposing a fine for non-maintenance of adequate balance in savings accounts.

FROM VIVEK KAULS DAIRY

Why Pension Updation to Bank Employees is consistently denied by Govt of India,

Why Pension Updation to Bank Employees is consistently denied by Govt of India, even though it does not require a single pie from Exchequer?*

Pension to Govt Employees is paid from Public Exchequer which is public money.Wheras each bank including RBI ,NABARD have created their own pension fund managed by Pension Fund Trust.There was a balance of Rs.207079 crore as on 31 March 2016 which increased to Rs.234531 crore as on 31 March 2017 after paying the pension to employees in the Pension Funds of Public Sector Banks. In fact, the Interest earned by Pension Funds was enough to pay pension to employees necessitating Nil contribution by Banks towards pension liabilities of employees. Interestingly ,there was Actuarial Gain of Rs.18821 crore during 2016-17 to the Pension Funds.Around Rs.15757 crore was paid as Pension during 16-17.

If Updation is allowed , there will be some increase in outflow which will be offset through the Annual Gain of Funds.Thus, now Banks rarely make Annual contribution on Actuarial Valuation to the Pension Funds from their profit as it is not required. Bank Employees recruited after 30.04.2010 are covered under NPS.The number of Pensioners is coming down drastically year after year.Funds can very well bear the Updation Outflow without recourse to contribution from bank's profit.

Bankers pension does not require funding from Public Exchequer and we manage our own fund and pay our own pension. Still, bureaucrats who get pension from Public Exchequer create hurdle to deny Pension Updation to Bankers.

Given below is the Bank wise Pension Fund Availability,annual interest accrual to the Funds ,Pension PAID and Balance available at the end of 2015-16 & .2016-17 which gives the clear picture of PSB Pension Funds. 

The position of Pension Funds of RBI and NABARD are still much better compared to our pensioners strength.

Congrats AIBOC & NOBO for not participating in the recent bipartite talks until upgradation & revision of pension for retirees are not included in the Settlement. Bravo! Dear Unions.

BIPARTITE UPDATE AS ON 21.02.2019

*XI Bipartite Settlement*

In today's meeting of Main Negotiating Committee two major Unions of officers did not come to participate. They are AIBOC, NOBO. Like last meeting, they continued their boycott on the issue of fractured mandate.

The issue is IBA did not agree to negotiate for officers beyond scale III. Because a few Banks did not give IBA mandate to negotiate beyond scale III.

IBA clarified that they have showed willingness to negotiate for officers upto scale V. AIBOC & NOBO remained firm on usual negotiation upto scale VII. So they did not turn up for today's meeting.

At the very beginning IBA put forth it's dilemma about what to negotiate? As there are many common issues.

Even though IBA showed willingness to discuss about Workmen issues as majority officer Association AIBOC & NOBO were not present.

Differences within UFBU came forth on whether to go ahead and have negotiations. Despite IBA giving them time to settle, no agreement was reached.

Hence today's meeting was postponed by IBA. After consulting all Unions next date will be decided and conveyed.

In short, NO TALKS were held today. Meeting postponed.

Thank you

EFFECT OF 12% INCREASE IN THE SALARY OF WORKMAN

Information on Bank Unions and Wage Negotiations.

Information on Bank Unions and Wage Negotiations.

UFBU (United Forum of Bank Unions) is an Umbrella Organisation consisting of 9 independent Pan India Trade Union Organisations of which 5 represent only Award Staff (Clerical & Subordinate Staff Cadre) and 4 represent only Officers Cadre.

UNIONS REPRESENTING AWARD STAFF IN UFBU:

1. AIBEA - All India Bank Employees Association.
2. NCBE - National Confederation of Bank Employees.
3. BEFI - Bank Employees Federation of India.
4. INBEF - Indian National Bank Employees Federation.
4. NOBW - National Organisation of Bank Workers.

UNIONS REPRESENTING OFFICERS IN UFBU:

1. AIBOC - All India Bank Officers Confederation.
2. AIBOA - All India Bank Officers Association.
3. INBOC - Indian National Bank Officers Congress.
4. NOBO - National Organisation of Bank Officers.

The names are in order to individual organisation's membership strength in respective cadre in Banking Industry.

AIBEA took major initiative to form UFBU in 1993 with an intention to bring the then major Bank Unions in one platform to fight common issues. Even though some of these constituents are historically rivals in many Banks, they were united for the past 25 years at least at the time of Wage Negotiations.

Bipartite Settlement is signed between Award Staff Unions and IBA under the ID Act. Whereas Joint Note is signed between Officers Unions and IBA.

AIBEA is the only Trade Union Organisation which has signed all the Bipartite Settlements. When AIBEA & AIBOA fought for Regular Pension and clinched it in 1993, many of these constituents were campaigning against Regular Pension, because of which all had to fight a long drawn battle for another option to join Pension, which came with a cost in 2010.

Present 11th Bipartite Settlement is due from November 2017 and UFBU has submitted our Charter of Demands well before November 2017.

Banks coming under Bipartite Settlement / Joint Note (List of Banks available in previous settlement copies) has to empower IBA to negotiate on behalf of them, which is known as Mandate. Upto last wage settlement concerned Banks were giving Mandate from Award Staff upto Scale VII i.e General Manager. However, in the present Wage Negotiations few Nationalised Banks have given Mandate empowering IBA to negotiate wage settlement from Award Staff to Scale III, which means they are empowering IBA to sign Joint Note with Officer Unions only upto Scale III and not for Scale IV, V, VI & VII. This is called a Fractured Mandate and the Banks which has given Fractured Mandate are ;

1. State Bank India.
2. Punjab National Bank.
3. Bank of Baroda.
4. Union Bank.
5. Indian Bank.

Please note that AIBOC claims Majority in all the above Banks.

There are only 2 options available for Officer Unions led by AIBOC who claims 60% representation in the Officer Cadre;

1. Either negotiate the Mandate issue with respective Banks
Or
2. Launch an Agitation in respective Banks to get Full Mandate upto Scale VII.

The above should have happened within a time frame. However, no significant development is seen in either way till date.

Suddenly, in the 30th November 2018 wage negotiations, AIBOC has taken a stand that unless Mandate Issue is resolved they will not participate in Wage Negotiations. In UFBU Meetings held on 30th November 2018, 12th December 2018 and 17th January 2019 AIBOC continued their stand of Non Participation. But even after lapse of more than 2 months no significant or effective agitation is led by AIBOC other than one day strike on 21st December 2018, Delhi Morcha on 4th February 2019 and a Meeting with Mr Rahul Gandhi.

Remember that IBA / Government were not calling UFBU for wage negotiations in 2017 - 2018 because of which UFBU had to resort to Strike Actions demanding meeting on Wage Negotiations. Therefore other 8 Constituents of UFBU had decided to continue participation in Wage Negotiations in the UFBU Meeting, which AIBOC is well aware of since they were participants in these meetings. Other 8 Constituents of UFBU has also requested AIBOC to resolve the mandate issue on priority in these meetings.

IBA offer is based on Pay Slip Components, which is approximately Rs 52,000/- Crores in the present Settlement and hence 1% increase amounts to Rs 520/- Crores. In 2nd February 2019 meeting IBA increased their Offer to 10%, which amounts to Rs 5200/- Crores. AIBOC & NOBO did not attend the meeting. 7 constituents of UFBU who participated in the meeting has rejected this Offer and has demanded IBA to increase their Offer.

In 10th Bipartite Settlement the Pay Slip Component was Rs 31,000/- Crores and UFBU including AIBOC had signed settlement for 15% increase, which amounts to Rs 4,700/- Crores approximately.

After signing on a mutual agreed percentage the amount is bifurcated between Officers and Award Staff, which in turn is distributed amongst different scales of pay and other pay slip components.

It can also be observed in past few settlements the amount allocated to Officers as wage increase is distributed among the higher scales i.e on Scale IV and above more and on the lower scales i.e Scale I, II & III less, which is done by these same Officer's Unions.

Then why blame Com C H Venkatachalam who is the General Secretary of AIBEA, which represents only Award Staff. The answer is these so called critics are hiding their weaknesses and shortcomings by blaming Award Staff Unions for all their miseries. Most of the young Officers do not even know who is their leader and these innocent young Officers fall prey to misleading propoganda in the Social Media and hence this clarification.

Please note that the present highest gross pay in Clerical Cadre under 10th Bipartite Settlement is Rs 86,000/-, Superannuation Benefits is Rs 52,00,000/- and Pension after Commutation is Rs 31,000/-.

All informations are available in public domain. All one has to do is take a informed decision and not to believe in misleading propoganda.

Bipartite Settlement On Wage Revision Appears Remote

Shri Sanjeev Bandlish,
National Convenor,
United Forum of Bank Unions

Dear sir,

As the facts stand, nothing goes well at UFBU. One of your major constituents, AIBOC walked out in actions, be it  21st Dec.18 strike or 4th Feb., 2019 Dharna at Jantar- Mantar, New Delhi or Memorandum of the sort to Sri Rahul Gandhi by Soumya Datta on following day with nice snap on social media.

Having heard his media clip, banking fraternity was aghast to see, how the UFBU or its other constituents were tried to be surpassed, side tracked, suppressed and put under shadow. Till then differences were only guessed, but on 4th it was given vent in eloquent proportions. That made me make a public Comment on 6th, after two days, with due diligence & application of mind, as banking fraternity at large was badly put to confusion, shock & disappointment particularly at a juncture when their wages and service conditions are under recast process. The Comment evoked tremendous support and concerns from across the country. However, one or two barked, which was very much on expected line from natural  'faithfuls', but many more facets unfolded in next week days, breaking the silent.

One 'Faithful' termed me trying serving two masters, one AIBEA (of which I am proud of) other BJP. Today the fashion is to brand one of BJP if he talks of facts, truths, Nation, National flag, Anthem, Constitution, Parliament, Vande-Matram, Bharat-Mata, Institutions, Honesty, Hard- work, Right-things, terrorists, separatists, urban naxals, immigrants etc. If asserting all these makes one BJP, let us accept it, well as a Patriotic citizen.

The said 'faithful'  called me rector of economic thoughts as against Amartya Sen, Pan Gadhia, its okay. These two plus many others were/ are self seekers of vested interests and  considerations from power block, whereas we are very common people with limited purpose of serving for livelihood. Once term is over, we don't aspire to be placed at loot points. That's the case of Amartya Sen.

It was shocking to note the averment of other 'faithful'. He said, 'After a long time, AIBOC, has got a General Secretary in Saumya Datta who not only has a will to fight for a decent wage settlement based on COD, but has a genuine inclination to resolve the issues of Pensioners & Retirees.' If the said is interpreted, earlier General Secretaries of AIBOC were not as as the Datta is, they hadn't fought for decent wage settlement or had no 'genuine' inclination towards Pensioners. Here lies the crux. Saumya Datta is out on 'Digvijaya' mission. Saumya Datta was not GS of AIBOC at the time of Associate Banks merger, otherwise it wouldn't have happened! Others had no 'spine at all' to raise demand of NPS, who compromised for NPS in 2010. Saumya Datta has spine, at all if, but he didn't show it by holding a very simple Dharna at SBI Corporate Office. Yes, he showed his spine to push all officers in strike on 21.12.18. Spine is very useful organ and its functions if would have been honored, we shouldn't have the problems of such magnitude.

I am writing this mail just in very straight and candid terms:

1. If the house is disturbed, being mindset problem, it is not possible to bring in order. One has no right to anyway inter into domain of other organization or question the legitimacy of leadership. It's none of AIBOC or else business, as to raise finger on AIBEA leadership being retired, old or otherwise capable or incapable. It's the domain of it's 5 lakh members to decide.

2. UFBU was formed on 'status of all constituents being equal'. It's UFBU founder father, Tarakeshwar Chakravorti, word, to which AIBEA stands from ground onward.

3. Being largest following in command, cultural bond is to honor & respect it as elder brother. It's not wrong at all.

4. If we can't go together, well let us take departure and work according to own situations. Goodwill must remain, so that when people come across face to face and eye to eye they don't feel ashamed. Let us not write obituaries by forced & forged relations. This will help in public preface to retain ourselves into a healthy fraternity at ground level, where officers- workmen sit together, work together & honor social bond. By such acts of misdemeanour as to showdown one another, we cant be good fraternity.

5. For last two years, blames have been afloat that UFBU is under AIBEA hegimoney and its retired and old leaders are the perpetual target. All wrongs are attributed to AIBEA. It's totally bad and unbecoming in the trade unions culture, particularly while living under one roof of UFBU.

6. The Govt is aware of your acts & conducts. It's going to cost banking fraternity. It shows, you have fractured spines, cant hold your body balanced.

7. Right or wrong, must be transparent. Why Pension Revision is not done, is a question hunting the mind of Pensioners. How the need of better wages, allowances & service conditions of serving employees & officers is greater than the need of Pension/family Pension revisions? Pension Scheme is a part of service conditions. How could there be a complete settlement without Pension revision?

8. There was no '2nd option clause' in Pension Regulations, 1995. Dare, say yes. It was first & final option given very specifically, when the Pension was introduced. Admit this fact. In Pension Agreement, 1993, pension revision clause was, but in Regulations, 1995, it was silenced. Don't shirk from stark reality. If you can fight and achieve 2nd pension option, of which no mention existed in Settlement-1993 or Pension Regulations, 1995 , rather such option was insisted upon by most of your constituents, who were dead against any such Pension Scheme and to suffice it recall to your attention the fact that 52% workmen or officers opted to remain out of Pension Scheme to their best advantage, why can't Pension Revision be done, which existed in Agreement, 1993 and missed in Regulations, 1995? It shows, there was never a will or sincere endeavour at all from you.

9. During 10th Bipartite Settlement process, AIBEA made  commitment to banking fraternity, not to sign settlement without Pension Revision. Bank employees, particularly Pensioners want to know who stabbed from behind? Also, please tell to people, why no steps were taken on Joint Notes, dated 25.5.2015, though AIBEA raised it. Were it really good and becoming of an umbrella organization of Banking,  whose decisions and settlement impact entire financial sector?

10. Be sincere, serious and honest in Pension Scheme matter. Mere words are not enough. Banks haven't given any mandate to IBA for pension revision, where you are discussing this issue. If for no mandate in scale matter by 5 banks one organization can take stand, was it not desirable to take a stand for Pension mandate collecyively, which covers all banks & pensioners? However, Pensioners don't know the strategy as to how AIBOC can fulfill it's promise not to sign settlement, without Pension revision, when they are on boycott mode and not on table. Same way, it is beyond Pensioners sense as to how the UFBU is expecting Settlement on Pension Revision, when IBA has no such mandate from it's member Banks.

11. You can't deny or disown the fact that still there are over 4 lakh employees and officers in-service. They want to know, whether they will have to languish in such distress conditions, as existing pensioners are, or will they have a right to get their pension updated, whenever in-service employees/officers wages are revised? It calls for very clear answer.

Please, therefore, make this issue very candid and speaking, as to what's in store. Are you going to take stand not to sign 11th Bipartite Settlement without (i) Pension Updating, and (ii) Pension revision hence in future with in- service employees/ officers wage revisions clause.

12. Mr. Datta was unilateral in his approach, so others have no choice, but to go ahead. Now, why he cries? His cry is foul. He cant blame others for taking a call of situation. If he sits in management lap and think, he can nurture his fractured spine, I think he is wrong. As far his audience with Rahul is concerned, I can just wish Mr. Datta to get the photograph framed and hang it in his drawing room, hang it on his chest while going to meet his Chairman. His Chairman may be impressed.

13. Bank employees and people of this country know, how banking was plundered by Congress, how banking and its resources were politicized. Today, if banking is bleeding, Congress is responsible. Sorry, you all remained silent spectators and today when bank employees and officers find their wages & service conditions hit below the belt, you all join the chorus of Bankers of no profit or affordibility. Hope, you don't mind to own and accept your collective failure to bring disgrace of low pay, allowance and service conditions to Banking industry.
Urge is, please don't make your selves a laughing stock. You are looked upon by bank employees, officers & pensioners, with great expectations. You are held in high regard & respect. Such fissiparous tendencies don't help or serve the real causes or suit to your stature. Please, therefore, settle the wages, pension and service conditions on priority basis.

Thanks for your tolerance, you shown to read this letter. Shall be grateful, if issues are resolved immediately. There is no need of boasting or hanging under eggo.

Regards & Greetings,


(J. N. Shukla)
National Convenor,
Forum of Bank Pensioner Activists,
PRAYAGRAJ

18.2.2019

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Jantar-Manter:
4th Feb Dharna AIBOC
-----------------------------------
( Open Comment )

According to Saumya Dutta, General Secretary, AIBOC there are 'Critical issues' against which bank officers are confronted with. He told, 20000 officers from across the country are participating in Dharna. He briefed media on critical issues as under:

First, he said, he is against the amalgmation of BOB, Dena Bank & Vijaya Bank. He termed it retrograde that amounts to reverse nationalization. It's intention is to reduce public sector banking space. He alleged, govt wants to privatise banks and hand over to crony capitalists like Ambanis, Ambanis.

Second, he wants descent wage revision as per Charter Of Demands, which is based on principle of minimum wage and as per Central Govt wage structure, since Bank officers are implementing all govt schemes. He demands, like in past, mandate for wage revision should cover uptown scale-7. Five Banks, which gave partial mandate upto Scale-3 should be directed to give unto scale-7.

Third, he wants willful defaulters list published. He told, he has written a letter to Mr. Arun Jaitley asking him to publish willful defaulters names, which he is hiding. He alleged, hundreds of such defaulters have had fled from the country.

Fourth, he wants Pension/ Family Pension Revision, which is pittance and not revised for last 20-25 years. Pointing towards thousands of young male- female officers assembled over there under NPS he said that they dont know exactly what will they get after 40 years of their job.

NOW, let us analyze above 4 statements:

1. Had this amalgmation been with SBI, whether Mr. Dutta would have taken this issue at this scale?

If he says yes, then next question to him would be as to why he didn't agitate against first two and subsequent 5 Associate Banks amalgmation with SBI?

 Why he didn't agitate on Mahila Bank transformation?

In said amalgmations, didn't he found as retrograde or reverse nationalization or reduction of Public Sector Banks space?

How the amalgmation or consolidation could be termed as privatization or seen as a plan to handover the banks to Ambanis/Adanis?

Is it not mere rhetoric of olden days Tatas/Birlas/Dalmias?

In past many banks were saved by merging in PSBs and so far none of the PSBs have been been doled out to any Capitalists. Double speak needs no explanation or justification as it brings with itself it's own testimony.

2. Yes, his point is right to have complete mandate and settlement of demands as made in Charter of Demands. Here, minimum wage as per law is not a issue. Issue is 'comparative' wage, as per central govt scales as 'according to Mr. Dutta' officers are implementing all govt schemes.

Here, notable fact is that govt pay scales are decided by Pay Commission. So, in plain words Mr. Dutta was found arguing for Pay Commission like some constitutional platform to decide wages & service conditions of Bank officers.

He knows well, Pillai Committee was appointed in past within the constitutional provisions. He should have demanded 'Committee' directly, instead wasting precious time in several twists & turns.

In Negotiated settlement issues can be settled through bargain based on 'paying capacity', 'affordability', 'load factor'. These 'formulas' were invented and agreed to by Unions. Now, settlements, reached through these formulas, are termed stale, soar and rotten. Better, people at the helm of affairs should own their faults, causing fatal impacts on entire banking fraternity.

3. With regard to defaulters list, this is being made a issue for long.

But, is it possible in existing laws?
RBI & Govt., both, have taken constitutional position into consideration and have disagreed to it.

Anyway, it's made out issue, to which unions or Bank employees have nothing to do or gain. If the list is published, will the unions file FIRs/ recovery civil suits against defaulters? Surely, they cant do it and have no intention as such.

However, if they want to start a movement to focus on defaulters, no problem, direct their base Unions to do it, as all accounts of defaulters are maintained ultimately in some Branch of Bank, irrespective of sanction level. Defaulters list is no required for this. I think, it's not the issue at all. It is just gimmick. So, it's just rhetorical issue, hardly hold any relevance to employees wellness.

4. In Pension/Family Pension revision matter, his concern was of some substance, but the question remains that when it is bilateral issue can be looked into between the parties, then how Mr. Dutta would be able to help in this issue, if he continues bycotting sittings and heads towards Committe?

Notable fact is that during last settlement such categorical statement was give by Gen. Secretary, AIBEA, but ultimately nothing happened.

Mr. Dutta should have thrown light on then difficulties and brought to focus as to WHO opposed that. Bank Pensioners are yet to know as to who was villain to sabotage Pension Revision last time. All were tight lipped. Visibly, they all signed Joint Notes on 25.5.2015- a death warrant of the sort. So, all Unions are right culprits, till the actual names are not revealed.

Pensioners know, what they are. They know, their pension pittance, financial distress and plights on account of no Pension Revision.

They don't need oral sympathy. One shouldn't try to be smart to shed crocodile tear.

Look to future days in lap, when sitting people will plunge in same pathetic conditions.

One should'nt become high-head God and behave in sinical manner with swollen mind.

Pensioners know, its bilateral issue. They know, thousands had died in quest of pension revision. They know, they are tired, old, bent, left in lurch by their own parent Unions, anyway surviving & counting days, while inching towards finality.

They know, they worked & retired gracefully, obeyed Unions first and then the management.

However, at all, if they dont know anything, they don't know the art of treachery.  They, really, dont know their faults or the culprits & villains who killed their rights & privilege to have revised Pension which is not bounty.

Mr. Dutta, pensioners look beyond words of assurance. Your words are taken just as rolling stones, which have no count.

Why today, you are very categorical, Pensioners know well. Anyway, under dead darkness of tunnel a ray is of some indication, we hold your words as very important, in right earnest and await your immediate return to table, where you can do better not only to officers, but to entire banking fraternity.

-J. N. Shukla,
Prayagraj,
6th Feb.19



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In the UFBU meeting held today( 20th February, 2019), we, on behalf of AIBOC, have  presented our  views clearly and in no  uncertain terms . We have stated  that unless unconditional and full  mandate is offered by IBA, we will not take part in further talks. Additionally, we also have informed that the talks should be based on Charter of Demands only! The important issues of  Updation/ Revision of Pension & Family pension, Scrapping of NPS etc. should also be addressed meaningfully.
Sunil Kumar, Chairman
Debasis Ghosh, President
Soumya Datta, General Secretary

UFBU MEETING UPDATE AS ON 20.02.2019

Today all the constituents of UFBU are meeting to discuss the issues confronting the UFBU with regards to the media reports on wage revision attributed to AIBEA from Kanpur meeting and also to discuss on AIBOC and NOBO joint letter to IBA not to hold talks with UFBU. These developments were not in tune with UFBU decision to hold talks with IBA on 02.02.2029.

The inside fighting appears to be very tense and shows negative on the utterances of AIBEA to participate in the talks and sign the settlement even if AIBOC does not participate in the talks as per media reports.

On the other hand AIBOA has taken a stand and has stated their issues to be taken up for discussion. But there is no evidence of the Retirees demands of even Pension Updation and Family Pension in the issues listed by AIBOA in today's discussion. 

AIBOC has already made their stand clear after publically declaring that they will not sign the wage revision settlement until the Retirees demands of Pension Updation and Family Pension are resolved. Kudos to them.

On the other hand Shri CHV of AIBEA has conveyed us that the main demand of Pension updation is not possible at present due to no money or fund crisis in our Pension Trust Funds having negative balance. He clearly stated that Pension Updation will be taken up only when funds in the Pension Trust Funds will suffice to bear the substantial amount. However the demand of Family Pension may figure in this BPS negotiations.

It's really surprising to note that Shri CHV view and version about Pension Trust fund is far behind truth besides there is enough proof and evidence that money in Pension Trust Funds is more than sufficient to meet the increased cost of Pension Updation and Family Pension. We can't accept these lame excuses.

Hence we have to keep our fingers crossed to see the outcome of today's meeting of all UFBU constituents before going in for BPS negotiations on 21.02.2019.
Let's hope that some good sense will prevail upon our leaders and they take up the issues Retirees tomorrow else we are fighting and will fight for finish.

With warm regards,

Jugal Kishore Julka
Team AIBRAF
NEW DELHI.

AIBOC LETTER TO UFBU

RBI IMPOSED MONETARY PENALTY ON 14 INDIAN BANK INCLUDING SBI

The Reserve Bank of India has imposed a monetary penalty of ₹2 crore on Corporation Bank and ₹1 crore each on Bank of Baroda, State Bank of India and Union Bank of India.

The central bank has imposed monetary penalty on 14 banks this month so far for violating various directions issued by it.

The penalty has been imposed on Corporation Bank, BoB, SBI and Union Bank for non-compliance with various directions issued on monitoring of end use of funds, exchange of information with other banks, classification and reporting of frauds, and on restructuring of accounts.

In the case of all these four banks, the RBI, in a statement, said: “These penalties have been imposed in exercise of powers vested in RBI under the provisions of …the Banking Regulation Act, 1949, taking into account failure of the above banks to adhere to the aforesaid directions issued by RBI.

“This action is based on deficiencies in regulatory compliance, and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.”

On Tuesday, the RBI said it has imposed monetary penalties on four banks – Allahabad Bank, Bank of Maharashtra and Indian Overseas Bank (₹1.50 crore each) and Andhra Bank (₹1 crore) for the reasons outlined above.

Along with the aforementioned banks, the central bank had also imposed a monetary penalty of ₹20 lakh each on HDFC Bank, IDBI Bank and Kotak Mahindra Bank for non-compliance with various directions issued by the RBI on Know Your Customer (KYC) norms / anti-money laundering (AML) standards.

On February 5, the RBI said it has imposed a monetary penalty of ₹2 crore each on UCO Bank and Axis Bank, and ₹1 crore on Syndicate Bank.

IF YOUR BASIC PAY 31540 AFTER BIPARTITE YOUR BASIC WILL BE 47000 AND GROSS WILL BE MORE THAN 1 LAKH SAY AIBEA GEN SEC CHV

AIBOC sounds the War Bugle against AIBEA instead of against IBA////

At the Ernakulam & Kanpur Meetings(Felicitation to the retiring Office Bearers of CBEU), the Gen.Secy of AIBEA Com CHV made it clear that "given the prevailing political climate and the existential crisis being suffered by the PSBs, boycotting the 11th BPS Negotiations is suicidal and an act of dereliction of duty!

Financial implications on account of 10% Increase , in absolute Terms is more than R5600Cr well above the 10th BPS/s Rs4000Cr+. Still, there is a hope for further improvement over 10% . In addition to this 5% PLP (Performance Linked Pay) is also offered by IBA."

This information appeared in the Hindi NewsPaper Kanpur-Jagran (10th) .

Today, AIBOC and its Leaders of Bank-wise affiliates have openly appealed to the Cadres and Members of AIBEA to REVOLT against Com CHV. Inciting the common Members of a fellow TU and that too brazenly interfering with the Workmen Union is a heinous crime and totally unwarranted and avoidable!

Remember, boycott serves no purpose and it enables the Gov't to impose unilateral Wage revision which will end the Time-tested and hard-earned Right of Bipartite Settlements.

Without Bipartite Mechanism, One More Option would not have been achieved in 2009-10.

Without BPS, Protection of Service Conditions will be a mirage!

The Long Pending Issues of Pensioners will be the FIRST CASUALTY!

Same AIBOC played havoc in 1993 by misleading Lakhs of Officers to reject Pension.

Again, in 2009, then GS of AIBOC Mr Nadalf played the BLACKMAIL game threatening IBA not to sign the MOU for One More Option on 27/11/2009.

Those who suffered without Pension KNOW better how historically AIBOC played havoc with the interest of the Bankmen! ///

An example to illustrate the Increase....

A Spl. Asst. with a basic pay of Rs31540/ will get revised Basic Pay of above Rs47000/ and his Gross Pay is likely to exceed Rs1Lac if he is working in Cities like Chennai. He will get a commutation lump-sum of Rs18Lacs (from the present Rs12Lacs). This increase of Rs.6 Lacs and Increase in Gratuity are not reckoned for the 10% . Hence, actual Increase in terms of SEEN & UNSEEN on Pay-Slip components will be much more than the 10% offered which may be increased to 12%+ (If PLP 5% is taken into account then the Gross Pay will still go higher!).

Most of the Members of this Forum were once members of AIBEA. I hope that we would not have received our assured monthly Pension but for its HISTORICAL decision on 29/10/1993 to sign the Pension Settlement when all other Unions (except AIBOA) OPPOSED the DA-Linked Central Pension Scheme!

After 25years, History is repeating with the same DIVIDE & DENY BLACKMAIL Game being played by the same Anti-Pension AIBOC!

Let the Bank Pensioners not fall prey to the FALSE, MALICIOUS AND SELF-DESTRUCTING WAR CRY OF THE STOOGES AND TIME-SERVERs!

AIBEA IS THE ONLY HOPE FOR THE DEPRIVED PENSIONERS.

IF WE DO NOT STANDBY IT AND SUPPORT IT IN THE CRUCIAL HOUR OF NEED, WE WILL BE FAILING IN OUR DUTY AND HISTORY WILL NEVER FORGIVE US !

Notice To Secretary Banking Division PLEASE READ

 BENSON BABY
Advocate
NSS Building, St. Germain Road, North Paravur, Kerala– 683 513 Mob:9495254308
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13th February, 2019
To

S/Shri. Rajiv Kumar, Secretary (Banking),
Ministry of Finance, Government of India,
Jeevan Deep Building, Parliament Street, New Delhi-110 001


Sir,

This notice is issued to you at the behest of Shri. C N Venugopalan, Vice President, Common Cause Consortium, Kerala, N Paravur – 683 513 for putting you to notice that:-

01. Ministry of Finance caused a notification in the Gazette of India dated 06.11.2017 amending Union Bank of India (Employees’) Pension Regulations, 1995 by promulgating Union Bank of India (Employees’) Pension (Amendment) Regulations, 2017.

02. Vide clause 4 of the notification, regulation 28 on “Superannuation Pension” was amended, by inserting the proviso viz.:

“Provided further that employees who ceased to be in service on or after the 29th September, 1995 on account of voluntary retirement before attaining the age of superannuation but after rendering service for a minimum period of 15 years in accordance with the Scheme framed in this regard by the Board with the approval of the Government, shall be entitled to join the Pension Fund, subject to the compliance of the terms and conditions mentioned in the Scheme”


03. Vide clause 8 (a) of the notification, regulation 52 (1) was amended by substituting the pre-existing proviso “Except in the case of an employee to whom provisions of regulation 43 and regulation 46 apply, a pension other than family pension shall become payable from the date following the date on which an employee retires”  with a new proviso viz.“Except in the case of an employee to whom provisions of regulation 34 and regulation 46 apply, a pension other than family pension shall become payable from the date following the date on which an employee retires”

04. Vide clause 3 (b) of the notification, regulation 3 was amended by inserting new sub regulations 11 to 14 in it relating to the contributions which the Bank had raised on the basis of a Settlement/Joint Note dated 27.04.2010 which were inconsistent with regulations 5 (3) and 11 and hence impermissible under section 19.1 and 19.4 of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970/1980 (the Act).

05. Vide clause 8 (b) of the notification, a new sub regulation 3 with the proviso “Provided that pension including family pension to those who opted to join the Bank Employees’ Pension Scheme on or after 27th April, 2010 shall be payable with effect from 27th November, 2009.” relating to commencement of pension was inserted under regulation 52 {where another sub regulation with the same number 3 relating to the date of cessation of pension is pre-existing}, which was inconsistent with regulation 52 (1) and hence impermissible under section 19.1 and 19.4 of the Act.

06. In terms of clause 4 of the notification, superannuation pension became payable to employees who ceased to be in service of the bank on account of Voluntary Retirement from the date following the date of their retirement, by making them eligible to join Pension Fund with retrospective effect from 29.09.1995 and to the consequential benefit of superannuation pension from the date following the date of retirement.

07. In terms of clause 8 (a) of the notification, pension became payable from the date following the date of their retirement to employees to whom provisions of regulations 34 and regulation 46 are inapplicable.

08. My client requested you by marking to you a copy of the letter No.203:18 dated 24.12.2018 addressed to Shri. T Subbarami Reddy, Chairman, Committee on Subordinate Legislation to grant the benefits notified under clause 4 and 8 (a) of the notification. But in gross dereliction of duty, your office forwarded the letter to Union Bank of India instructing it to give a reply to the letter, making them reply vide its letter No.HR:ERD:0831 dated 18th January, 2019, though my client did not mark a copy of the said letter to it.

09. The Bank has informed my client that “the amendments to the Pension Regulations were as per the directives issued by the Indian Banks’ Association (IBA) to all PSBs based on industry level Bipartite Settlements” when the Pension Regulations, 1995 are statutory and the industry level settlement cannot meddle with it.

10. The Bank was informing my client that the date of commencement of pension is 27.11.2009 and not the date of retirement as per the Pension Option Scheme, ignoring that in terms of regulation 52 (1), pension was payable from the date following the date of retirement and clause 4 and clause 8 (a) of the notification dated 06.11.2017 were in supersession of any Pension Option Scheme made prior to that and reiterated that pension shall become payable from the date following the date of retirement.

11. It is very much clear that though the Bank has autonomy of operation with an independent Board of Directors and also a separate Pension Regulations, which is statutory and binding, you are forcing the Bank to circumvent the statutory regulations and preventing it from carrying out the statutory obligations arising out of the Pension Regulations when payment of the vested benefits is out of the Pension Fund and involves no cost either to the Bank or to the Government.

12. The notification is making it explicit that there were no provisions for the Bank to raise the contributions to the Pension Fund on the basis of the Joint Note which are sought to be authenticated through the new sub regulations 11 to 14 under regulation 3 vide clause 3 (b) of the notification and to deny pension from the date following the date of retirement to  27.11.2009 in defiance of regulation 52 (1) for which purpose the new sub regulation 3 was brought under regulation 52 till the date of the notification and these provisions, being inconsistent with the Pension Scheme cannot evolve as amendments to regulations  forever by operation of sections 19.1 and 19.4 of the Act.  

13. Clause 3 (b) and 8 (b) of the notification were nefarious to the extent they are aiming at looting the terminal benefit pension of the senior citizens retired from the Bank, out of their own deferred wages held in Pension Fund.

14. You are aware through the ruling dated 13.02.2018 of the Hon’ble Supreme Court in Civil Appeal No.5525 of 2012 viz. Bank of Baroda & Anr. Vs. G Palani & Ors. that the Joint Note dated 27.04.2010, which is akin to the Joint Note dated 14.12.1999 cannot supplant any of the provisions of the Pension Regulations with retrospective effect and the Regulations that are in force in 2003 shall continue to apply and hence the act on your part is also in contempt of the law laid down by the Hon’ble Supreme Court.

In the circumstances enumerated above, you are hereby called upon to look into the matters expeditiously and to direct the Bank to be compliant with the Pension Regulations in force by releasing the benefits notified under clause 4 in terms of amended regulation 28 viz. superannuation pension from the date following the date of retirement to employees who retired through Voluntary Retirement and pension from the date following the date of  retirement notified vide clause 8 (a) of the notification and to refund the unlawful contributions raised to Pension Fund sought to be authenticated wrongfully through the sub regulations 11 to 14  under regulation  3 and  to pay the pension denied from the date of retirement to 27.11.2009 sought to be  authenticated  vide  clause 8 (b) of the notification, which being inconsistent with the Pension Scheme of the Bank are impermissible under sections 19.1 and 19.4 of the Act, failing which, you may take notice that my client will be constrained to initiate legal remedies at your cost, risk and responsibility.

ADVOCATE