IBA-DFS-UFBU -ex-gratia fiasco.*

*IBA-DFS-UFBU -ex-gratia fiasco.*

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1). During the mid  forties when there was a spurt in bank failures in India which led to erosion in public faith on banking system, the then MDs of various banks decided to form a common platform to interact, extend mutual help to  restore public trust on banks . Consequently, IBA came into existence , originally like a bankers’ club but gradually turned into a body to bring uniformity and commonality in the functioning of banks . It was registered in 1946 but the registration was never renewed deliberately after expiry of one year . It remained unregistered till this date.

2). Over the years, IBA, though a private and unregistered body ,  became an “ intermediary” of the MoF. It’s being used as a “ shield”, a “ see- through” and an “ act- through” of the Ministry. Perhaps it’s the only private and unregistered body which is used by the MoF for all sorts of interaction and instruction relating to  banks. 

3). The CIC ( Central Information Commissioner ) once ruled that IBA is definitely amenable to RTI Act-2005. It infuriated IBA and immediately this was challenged in Delhi High Court in 2017 . The case thus went into cold storage. But what is the fear ? Why to hide under curtain ? 

4). The MoF and IBA are inter- woven to such an extent that the replies to Parliamentary questions on pension issue are provided by IBA and the same is reproduced by the ministers in the parliament in entirety including punctuations and interjections. The minister even said in the reply , “ as informed by IBA”! 

5). Now, the latest uproar is pertaining to MoU signed by IBA and UFBU on 12 th BPS including a new chapter for introducing ex- gratia to retirees instead of pension updation. 

As a natural outcome, it created a lot of disappointment amongst retirees and their outbursts is visible in social media. Retirees associations too jumped into the sea of protests. 

 Everybody was expecting an updation this time on RBI line after suffering for decades whereas it is updated twice in RBI within four years having identical pension schemes . 

6). IBA-UFBU-DFS combine definitely burnt midnight oil to perpetuate their stance against the retirees and devise an opaque to defuse the aspirations of retirees. No doubt, this combine has equivocated and coined a word to circumvent the anger. And that  is  the word, “ex- gratia” coined to display feigning love for retirees. 

7). Certain  retirees group from the South is enormously ecstatic with the hope for getting the exgratia and is so jubilant and dancing wildly  that even the UFBU leaders would be awed !! Like all others they also do not know how much would be the exgrstia but that didn’t deter them from showering heap of praise on UFBU ! However , let them rejoice , we know sometimes fools laugh when kicked from behind ! But what is condemnable is their use of indecent language against those who are angry with this exgratia. They have displayed their distasteful language  in their magazine ! Let us ignore such guys. 

😎. Some others have gone into the dictionary/ google to find out the origin of the word exgratia and found it in Latin . They say,  it does not carry  a derogatory meaning but means ‘ grace’ and not pity . So, retirees should not get upset with this word exgratia because it shows a good gesture !! 

I’m to say in reply that this word ‘ exgratia’ is not a new thing for bank retirees , we need not go for searching its origin in Latin or Greek or Hebrew ! It’s very much there in our pension scheme. 

Let me remind that the pre-1986 retirees are getting exgratia from beginning and some of the pre-2002 retirees have started getting exgratia after 100% DA neutralisation because they were already getting 100% DA due to their basic pension being at the 1st or 2nd slab of DA. This exgratia they are getting as a good gesture .  They cannot get  DA on this exgratia because it is an additional payment as a “grace”! 

*But it may be mentioned that the pre-1986  retirees get exgratia and along with DR on it.* whereas the proposed exgratia for all  retirees now in the MoU is sans DR. That is the difference between exgratia and updated pension and there lies our discontent. Had it been attracting DR , we could think it as a step towards updation. 

9). The MoU for regular employees is complete in the sense that it has earmarked an outlay of Rs.12349 crore at 17% increase and 3% load . It is also effective from 1.11.2022 entailing arrear for one year and valid for five years. On the contrary , for exgratia , everything is kept in the dark, we do not know how much would be the amount for an individual, when it will become effective and how much will be the cost to the bank. We also do not know exactly when it will be implemented. There lies the crux of this bluff. 

10). The wordings of the MoU is craftily prepared. It says, without prejudice to the demand for updation…”. This is done solely to avoid  contempt of court. Cases for updation are pending at Supreme Court and Delhi High Court , it is in final stage now . If the IBA agrees updation as prayed for in the cases , there will not be any contempt but if it does anything contrary to the demand of the petitioners , it will tantamount to contempt. So, IBA- UFBU played the tricks as if they agreed for payment exgratia outside the case . It means, they are skeptic that the case would go in favour of the retirees and then exgratia can be withdrawn . 

That’s why they kept six months time in hand The Supreme Court case is scheduled in March-2024 and Parliament election is also expected to be held during that time. 

Till that time everything will be fluid.

Biswanath Bandyopadhyay

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