AIBEA (All India Bank Employees Association) held meeting of private bank employees recently. In the meeting several demands were introduced. Next meeting is scheduled to be held on 9th and 10th November at Nainital. One of the most important demands includes the nationalization of all private banks. AIBEA General Secretary C.H.Venkatachalam has urged on social media platform X (formerly Twitter) to nationalize all private banks.
Currently, India has 12 public sector banks, and the government is considering privatizing some of them. Plans have already been announced to reduce the number of PSU banks to just 4 or 5. What are your thoughts on the AIBEA’s decision in this regard? Share your views in the comments below.
The Kerala High Court recently made a significant ruling regarding an employee’s right to freedom of speech in the workplace. In a case involving an employee of Fertilisers and Chemicals Travancore Ltd. (FACT), the court declared that the employee’s messages in a private WhatsApp group expressing concerns about the company’s safety practices cannot be considered harmful to the company’s reputation.
Upholding the Right to Freedom of Speech
Justice Satish Ninan, who presided over the case, emphasized that charging the employee with harming the company’s reputation based on their messages infringes upon their right to freedom of speech, which is guaranteed under Article 19(1)(a) of the Indian Constitution. The court maintained that expressing concerns about safety should not be misconstrued as an intention to damage the company’s reputation.
Employee’s Concerns about Safety
The petitioner, an employee of FACT, had sent messages to a private WhatsApp group comprised of technicians from the company. These messages addressed safety concerns related to the handling of ammonia. However, during a company inquiry, the petitioner was accused of spreading false information and making defamatory statements that allegedly harmed the company’s reputation. The charge claimed that the petitioner’s messages could create the perception that the company has an unsafe working environment and may incite workers to protest against the company.
Mere Expression of Concern Cannot Be Considered Harmful
The court ruled that the mere expression of concern for safety cannot be grounds for charging an employee with harming the company’s reputation. The petitioner’s right to freedom of speech was deemed to have been infringed upon, leading the court to declare that the charge against the employee was not valid.
Lack of Formal Inquiry and Disciplinary Action
The petitioner argued that no formal inquiry was conducted before disciplinary action was taken against them. The punishment imposed on the petitioner was a “WARNING,” the lowest category of disciplinary action. However, the petitioner expressed concern that even a warning would negatively impact their service record and future career prospects.
No Admission of Guilt
The court clarified that the petitioner’s admission to sending the messages did not imply that they admitted to the messages being objectionable. The court emphasized that the petitioner’s apology should not be misconstrued as an admission of guilt. Therefore, the court held that there was no waiver of the necessity for a formal inquiry.
Unauthorized Entry Charge
Additionally, the petitioner was charged with unauthorized entry into the ammonia handling section of a division. The court noted that the petitioner had unambiguously admitted to this charge, and it acknowledged that such an entry would contravene safety rules.
No Interference with the Punishment Imposed
Lastly, the court stated that the company was not obligated to hold a hearing on the punishment imposed. Given that the petitioner was found guilty of one charge and the punishment was of the lowest category, the court saw no need to interfere with the disciplinary action.
In summary, the Kerala High Court’s ruling upholds the employee’s right to freedom of speech and emphasizes that expressing concerns about safety should not be considered harmful to a company’s reputation. The court also emphasized the importance of conducting a formal inquiry before imposing disciplinary action and clarified that an admission of certain charges does not imply guilt for all charges.
The Enforcement Directorate (ED) conducted raids on June 20 at 35 different locations across Delhi-NCR, Mumbai, and Nagpur in connection with an alleged bank loan fraud involving the Amtek Group and its directors. The fraud is said to amount to over Rs 20,000 crore.
Details of the Raids
The raids were carried out on the Amtek Group and its directors, including Arvind Dham and Gautam Malhotra. They targeted approximately 35 business and residential premises in Delhi, Gurugram, Noida, Mumbai, and Nagpur.
Background of the Investigation
The investigation was triggered by a Central Bureau of Investigation (CBI) FIR against a group entity of Amtek, ACIL Limited, on allegations of a bank fraud of over Rs 20,000 crore. The fraud involved a number of listed companies that were eventually taken over in National Company Law Tribunal (NCLT) proceedings at a nominal price, resulting in minimal recovery for the consortium of banks.
The ED believes that the loan funds were siphoned off for investments in real estate, foreign ventures, and new ventures. The Amtek Group allegedly engaged in bogus sales, manipulated capital assets, debtors, and profits to obtain higher loans and avoid non-performing asset (NPA) classification. Additionally, assets worth thousands of crores were allegedly parked in the name of shell companies, and foreign assets were created. Money is believed to be still parked under new names through benami directors and shareholders.
Impact of the Fraud
According to sources, the fraud has caused a loss of approximately Rs 10,000 to Rs 15,000 crore to the exchequer.
Conclusion
The Enforcement Directorate conducted raids at multiple locations in Delhi-NCR, Mumbai, and Nagpur as part of an investigation into an alleged bank loan fraud involving the Amtek Group. The fraud is estimated to be over Rs 20,000 crore. The investigation was triggered by a CBI FIR, and the ED believes that loan funds were siphoned off for various purposes. The fraud has caused a significant loss to the exchequer.
According to annual data from Switzerland’s central bank, funds parked by Indian individuals and firms in Swiss banks decreased by 70% in 2023, reaching a four-year low of 1.04 billion Swiss Francs (Rs 9,771 crore). This decline marked the second consecutive year of decreasing aggregate funds of Indian clients with Swiss banks after reaching a 14-year high of CHF 3.83 billion in 2021. The decline was primarily driven by a sharp decrease in funds held through bonds, securities, and various other financial instruments. The data also showed a significant decline in the amount held in customer deposit accounts and funds held through other bank branches in India.
It’s important to note that these figures reported by banks to the Swiss National Bank (SNB) do not indicate the amount of alleged black money held by Indians in Switzerland. Additionally, these figures do not include funds held by Indians, NRIs, or others in Swiss banks under the names of third-country entities.
Breakdown of Funds and Total Liabilities
At the end of 2023, the total liabilities of Swiss banks towards their Indian clients amounted to CHF 1,039.8 million. This figure included CHF 310 million in customer deposits (down from CHF 394 million at the end of 2022), CHF 427 million held via other banks (down from CHF 1,110 million), CHF 10 million through fiduciaries or trusts (down from CHF 24 million), and CHF 302 million as other amounts due to customers in the form of bonds, securities, a
It’s worth mentioning that the total amount reached a record high of nearly 6.5 billion Swiss francs in 2006 and has mostly been on a downward path since then, with a few exceptions in 2011, 2013, 2017, 2020, and 2021.
Data from the Bank for International Settlement (BIS)
The Bank for International Settlement (BIS) provides data on deposits by Indian individuals in Swiss banks through its “locational banking statistics.” According to this data, there was a decline of nearly 25% in such funds during 2023, amounting to USD 70.6 million (Rs 663 crore). The funds had previously dropped by 18% in 2022 and over 8% in 2021, following a nearly 39% increase in 2020.
The BIS data takes into account deposits and loans of Indian non-bank clients of Swiss-domiciled banks. It showed an increase of 7% in 2019, following declines of 11% in 2018 and 44% in 2017. The peak amount recorded was over USD 2.3 billion (over ₹ 9,000 crore) at the end of 2007.
Dear friends As informed to you meeting was held today in the IBA office regarding 2 issues. Shri Rajneesh Karnataka Sir MD & CEO BOI
Shri B K Mishra Sir DMD SBI
Shri SL Jain Sir MD & CEO Indian Bank.
Shri Nidhu Saxena Sir MD & CEO BOM
Shri Gopal Bhagat Sir IBA
Shri Brajeshwari Sharma Sir IBA were present for the meeting.
*Finalisation of the PLI Matrix* :-
Broad 8 parameters were finalised. CASA,NPA,SMA,Non interest income, Total business, profitability,ROA/ROE, and Government schemes.out of which 4-5 parameters can be finalized by individual Bank at its own level in their respective Board meeting.
Secondly a new bracket of 11 ranges from 5% to 15% were finalised (if your banks profit in fixed parameters is 8% you will get 8 days PLI if it's 14% it would be 14 days and so on ) which was not the case earlier as it was 5% 10% and 15% .Now this scheme will be applicable from 2023-24, IBA will inform the 12 Banks accordingly, Banks would approve the same in their Board meeting and then release the amount.
*Medical*scheme* few points were principally agreed.
*1.combined policy* for both employees and retirees to ensure less premium for retirees.
2.choice to be given to Banks if they wish to be a part of this policy or not
3.schemes are the same for all banks.
4 Float RFP after Banks consent
5 critical illness separate quotes for working employees. and the same medical scheme will be discussed in the next meeting in a few days time once mandate from all Banks is received.
With the formation of the new government and the assignment of ministries to Union Cabinet Ministers, the BFSI (Banking, Financial Services, and Insurance) industry in India is eagerly voicing its expectations and industry needs from the newly formed government.
Expectations of Top Bankers in India
PSB Divestments: Top bankers in India are eagerly awaiting the government’s final view on the divestment of Public Sector Banks (PSBs). They hope for clarity on this matter, which will have a significant impact on the banking sector.
Fiscal Deficit and Interest Rates: Bankers expect the new government to take measures to lower the fiscal deficit and interest rates. Lowering the fiscal deficit will reduce the government’s borrowing program, thus freeing up more resources for lending to the private sector. It will also contribute to keeping interest rates lower.
Credit Growth for SMEs: Enhancing credit growth, especially for Small and Medium Enterprises (SMEs), is another expectation of the banking sector. Bankers believe that targeted credit schemes, risk mitigation strategies, and supportive policies can help boost credit growth in critical sectors of the economy.
Tax Benefits and Savings Growth: Bankers suggest that tax benefits, such as increasing savings in time deposits as part of income deductibles, can stimulate savings growth. These benefits will not only support individual savings but also help banks gather more deposits.
Financial Inclusion and Digital Infrastructure
Bankers emphasize the importance of the government’s support for various financial inclusion activities, particularly in aspirational districts. They believe that measures to enhance credit growth for SMEs and critical sectors of the economy, along with risk mitigation strategies and supportive policies, are necessary.
Additionally, continued investment in digital infrastructure is crucial for banks to better serve their customers and improve operational efficiency.
Boosting Consumption and Investments
Bankers expect the government to implement measures to boost consumption through tax breaks. They also suggest the introduction of schemes similar to the Production-Linked Incentive (PLI) for SMEs to encourage investments. Initiatives for ease of doing business, enhancing transparency, and promoting a business-friendly environment are also sought after by the banking fraternity.
Focus on Infrastructure, Rural Development, and Digitalization
Bankers emphasize the need for increased government spending on infrastructure and development projects, particularly in rural areas. They believe that this will not only contribute to economic growth but also ensure more equitable distribution of development benefits across the country.
Moreover, the continuation of the government’s digital push is deemed imperative. Expanding digital infrastructure and promoting digital literacy are seen as important steps towards modernizing the Indian economy and making it more resilient and globally competitive.
Other Expectations
Bankers also call for measures to boost consumption, maintain capital expenditure (capex) at the current rate, forge Free Trade Agreements (FTAs) to improve export growth, and focus on improving farm productivity in general.
Overall, the BFSI industry has high hopes for the newly formed government to address critical areas such as fiscal deficit, interest rates, credit growth, financial inclusion, digital infrastructure, consumption, investments, ease of doing business, and rural development. The industry believes that these measures will contribute to the overall growth and prosperity of the Indian economy.
Union Minister for Petroleum & Natural Gas, Hardeep Singh Puri, announced on Tuesday that the plans to privatize Bharat Petroleum Corporation Ltd (BPCL), a state-owned company, have been put on hold. Puri stated in an interview with BT TV that high revenue-earning public sector undertakings like BPCL should not be sold.
“BPCL has generated more profit in the first three quarters than the expected amount from the stake sale,” Puri said upon assuming charge of the Petroleum and Natural Gas ministry. In the first half of the financial year 2024, BPCL recorded a net profit of over Rs 19,000 crore.
During the third quarter of FY2024, BPCL’s consolidated net profit experienced an 82% surge, amounting to Rs 3,181.42 crore, compared to Rs 1,747.01 crore in the same period of FY23. The company’s revenue from operations in Q3 FY24 was Rs 1.30 lakh crore, slightly lower than the Rs 1.33 lakh crore from the previous year.
BPCL reported a consolidated net profit of Rs 4,789.57 crore for the fourth quarter of the financial year 2023-24, which marked a 30% decline from the previous year. In the same period last year, the profit was Rs 6,870.47 crore. The decrease in profit can be attributed to weakening margins and crude oil price volatility during the quarter. Additionally, BPCL’s revenue from operations declined marginally to Rs 1.32 lakh crore in the quarter ended March 31, compared to Rs 1.33 lakh crore in the previous year.
The privatization of BPCL, along with the privatization of Air India, was part of the NDA government’s disinvestment program in FY22. The government planned to sell its entire stake of 52.98% in BPCL, estimated to fetch Rs 45,000 crore in FY22. Expression of Interest (EoI) for the sale was invited in March 2020, with the process initially scheduled to be completed by March 2021.
Initially, global majors such as Saudi Aramco, Abu Dhabi National Oil Co, and Exxon Mobil showed interest in purchasing BPCL. However, none of them submitted initial bids to acquire the state-owned oil refiner.
Currently, BPCL is in the planning stages of establishing a new 12 million metric tonnes per annum (MMTPA) refinery in India, as reported by the Economic Times. The state-run oil marketing company is expected to invest around Rs 50,000 crore in the project and is currently evaluating potential locations in Andhra Pradesh, Uttar Pradesh, and Gujarat.
Over the next five years, BPCL aims to invest Rs 1.7 trillion in various sectors, including oil refining, fuel marketing, petrochemicals, and clean energy. This investment includes Rs 75,000 crore for refineries and petrochemicals, Rs 8,000 crore for pipelines, and over Rs 20,000 crore for marketing.
According to the Gallup 2024 State of the Global Workplace report, only 14% of Indian employees feel they are “thriving” in life. This is in stark contrast to the global average of 34% of employees who feel the same way. The report examines the current state of employee mental health and wellbeing globally, and it classifies respondents into three categories of wellbeing: thriving, struggling, or suffering.
Classification of Wellbeing
Gallup classified respondents based on their life evaluation index, which takes into account their present life situation and outlook for the future. Here’s how they classified the respondents:
Thriving: These are respondents who have a positive view of their present life situation, rating it 7 or higher, and also have a positive outlook for the next five years.
Struggling: Respondents in this category have an uncertain or negative view of their present life situation, experience more daily stress and financial worries.
Suffering: This category includes respondents who feel miserable in their present life situation (rating of 4 or below) and have a negative view of the future.
Employee Wellbeing in India
In India, only 14% of employees feel they are thriving, while the remaining 86% admit to struggling or suffering. This low percentage of thriving employees is not unique to India alone. In fact, the whole of South Asia reported the lowest percentage of thriving employees, with only 15% of respondents from the region classifying themselves as thriving. This is 19 percentage points lower than the global average.
Additional Findings from the Report
The Gallup report also revealed some interesting insights about employee wellbeing in India and South Asia as a whole:
Daily Anger: 35% of respondents from India reported experiencing daily anger, which is higher than any other country in South Asia.
Daily Stress: In terms of daily stress, India ranked lowest among South Asian countries, with only 32% of respondents experiencing daily stress. In comparison, Sri Lanka and Afghanistan reported higher percentages of daily stress at 62% and 58%, respectively.
Employee Engagement: Despite the low percentage of employees feeling they are thriving, India maintained a high employee engagement rate of 32%, which is well above the global average of 23%.
These findings provide valuable insights into the state of employee wellbeing in India and South Asia, highlighting areas of opportunity for organizations and policymakers to focus on improving the overall wellbeing of their workforce.
The economic reforms in India have been closely tied to the Narendra Modi government, and this connection has been influenced by the elections. In recent months, the pace of economic reforms has slowed down due to the electoral process. The outcome of the elections has set the tone for the Modi regime, as it lost the majority mandate it previously enjoyed.
The Composition of the Modi Cabinet
Following the election results, Narendra Modi returned to Parliament as the Prime Minister for the third time. However, this time he led a diverse group of 71 ministerial colleagues from various political affiliations. This was necessary because the Bharatiya Janata Party (BJP) failed to secure a majority in the elections. As a result, the Modi Cabinet includes eleven ministers from non-BJP parties who have formed a coalition with the BJP under the National Democratic Alliance banner. Key BJP allies such as JDU, TDP, Shiv Sena, and LJP have secured ministerial berths, with the TDP and JD(U) being particularly crucial for maintaining the coalition.
The Onus of Economic Reforms on the New Leadership
With the new government in place, the responsibility for accelerating economic reforms now lies with the new leadership. To ensure a smooth transition, Nirmala Sitharaman has retained the position of the Finance Minister. In the banking sector, the government needs to focus on three key areas to drive larger reforms: insolvency law reforms, bank privatization, and fiscal consolidation to support effective monetary policy for managing inflation.
Challenges in the Bankruptcy Process and the Need for Effective Resolution
One crucial reform that needs attention is the fine-tuning of the bankruptcy process. While the Insolvency and Bankruptcy Code (IBC) has introduced a better mechanism for resolving bad loans, there are certain inefficiencies that need to be addressed. Factors such as litigations, dissenting creditors, and poor infrastructure have contributed to a slow resolution process. In the financial year 2023-24, recoveries through the IBC were only 32 percent, and creditors lost 68 percent of their claims. The resolution process also took much longer than the stipulated 330 days, with an average of 863 days. It is crucial to shorten the time taken for an efficient resolution process.
Importance of Fiscal Consolidation for Inflation Management
Fiscal consolidation is critical to support the central bank’s fight against inflation. The government needs to prioritize fiscal discipline and avoid excessive spending on populist measures, as it can disrupt the Reserve Bank of India’s (RBI) efforts to manage inflation. The RBI has been maintaining key lending rates for the eighth consecutive policy review, indicating the challenges it faces in containing inflation.
Prospects of Bank Privatization in the Modi Government
Bank privatization has been a challenging task and an unfulfilled promise in India. While previous governments have expressed intentions to dilute the government’s stake in public sector banks (PSBs), little progress has been made. The current government, however, is preparing to push for PSB privatization in 2024. However, political and cultural challenges remain significant obstacles to this endeavor.
Legacy Issues and Political Considerations in Bank Privatization
Privatizing PSBs involves addressing legacy issues and navigating political considerations. These banks are still heavily influenced by politicized employee trade unions, and they operate in a culture that differs from that of private banks. Moreover, bank privatization is a politically sensitive matter, as it involves regional interests and risks political backlash.
Improved Financial Health of Indian Banks
Despite the challenges, there are reasons to believe that bank privatization may have better prospects this time. Indian banks have improved their financial health in recent years. The gross non-performing assets ratio has declined to a multi-year low of 3.2 percent, and the net non-performing assets ratio has eased to 0.8 percent. The capital levels of scheduled commercial banks are also comfortable, as indicated by the capital-to-risk-weighted assets ratio and the common equity tier 1 ratio.
Overcoming Challenges for Successful Privatization
To successfully privatize PSBs, the government needs to address the dominance of employee unions and their opposition to privatization. Additionally, changing the bureaucratic culture within these banks and fostering a more professional and board-driven approach will be crucial. The government must demonstrate strong political will and resolve to follow through on privatization plans.
The First Union Budget and Clues for Privatization
The upcoming Union Budget, scheduled to be presented next month, may provide some clues about the government’s approach to bank privatization. It will be an important indicator of the government’s commitment to economic reforms and the privatization agenda.
State-run banks in India are optimistic about receiving improved performance-linked incentives (PLI) for their employees under the new coalition government. Additionally, they are likely to advocate for a five-day banking week. Both bank unions and employee associations have been requesting a review of the current PLI scheme and approval for a shorter workweek. There is hope that the government will consider their demands and prompt the Indian Banks’ Association (IBA) to revise the existing structure.
The PLI was initially introduced in 2020 as part of the 11th Bipartite Agreement between the IBA, officers associations of banks, and employee unions. According to this agreement, bankers were eligible for a maximum of 15-days salary as PLI if the year-on-year growth exceeded 15%. However, there is a desire to modify certain parameters governing the PLI, such as basing the final settlement not solely on operating profit but also considering performance on other financial indicators.
Last year, the IBA secured an agreement with unions for the 12th bipartite wage hike settlement, which entailed a 17% increase in bankers’ salaries. This settlement will be in effect for the next five years, starting from November 1, 2022, and will result in an expenditure of ₹12,589 crore for 12 public sector banks (PSBs), including the State Bank of India.
While banks have made provisions for the PLI outgo according to the existing matrix, it has been decided that further discussions will be held to establish a revised PLI structure, and payments will be made accordingly. Additionally, the approval of the government will be required for the revised PLI.
In the recently concluded wage settlement between unions and the IBA, an agreement was reached on implementing a five-day banking week, contingent upon government approval. The cumulative profit of PSBs exceeded ₹1.4 lakh crore in the financial year ending in March 2024, marking a growth of 35%. The 12 PSBs together earned a net profit of ₹1,04,649 crore in 2022-23.
Last month, Finance Minister Nirmala Sitharaman stated that the government will continue taking decisive measures to strengthen and stabilize the banking system, ensuring that banks support India’s growth trajectory towards “Viksit Bharat” by 2047.
In a post on X, Sitharaman acknowledged that India’s banking sector has experienced a turnaround under the strong and decisive leadership of Prime Minister Narendra Modi. She further highlighted that the banking sector recently achieved a significant milestone by recording its highest-ever net profit of over ₹3 lakh crore
On Saturday morning in Mohali, Punjab, a woman employed in a bank was tragically murdered in broad daylight. The police suspect that it was a crime of passion. The accused, who has not been identified at this time, has been apprehended by the authorities.
The victim, identified as Baljinder Kaur, was a 31-year-old resident of Fatehpur Jattan village near Morinda town. She had been working at the bank in Phase-V for the past nine years.
According to the preliminary investigation, Baljinder Kaur arrived at the office in the morning via an autorickshaw. As she was walking towards her office, the accused, who was already present at the scene, attacked her multiple times with a sword, causing critical injuries.
Despite the attack taking place in a busy area, no one came to the woman’s rescue. Tragically, she was later pronounced dead at the civil hospital. The incident has resulted in a murder case being registered at Phase-1 police station. The investigation is ongoing, and further details will be provided as they become available.
Baljinder Kaur was attacked at 9:30 am when she was going to the office with her friends. The police arrested the perpetrator and took him for medical examination. The accused has been identified as 36-year-old Sukhchain Singh, a resident of Samrala. According to police, he killed the woman because she rejected his advances.
The police have made an arrest in a case of fraud involving a bank manager in the Kotwali area of Unnao city. The arrest was made following a complaint filed by Dinesh Kumar Mishra of Srinagar Manikot village, on the orders of the court, on May 10, 2023. The bank manager in question, Nitesh Kumar Shukla, who is a resident of Kidwai Nagar Kanpur, was posted at the Punjab National Bank in the city since February 2023.
Allegations and Investigation
Nitesh Kumar Shukla was accused of tampering with a loan account in the name of Kanti Devi. The complaint was made by Kanti Devi’s son, Dinesh Mishra, who reported the incident to the police station back in February. When no action was taken, Dinesh Mishra sought refuge in the court, which subsequently ordered the filing of a First Information Report (FIR) in May 2023.
Upon registering the FIR, the city police initiated an investigation into the matter. City Kotwal Shailesh Singh has stated that despite the allegations being confirmed, the bank manager did not cooperate with the investigation. As a result, a team comprising Sub-Inspector Arjun Singh and Ajit Tripathi from the police station was deployed to apprehend the accused bank manager.
Arrest and Legal Proceedings
After conducting their investigation, the team discovered that the accused bank manager was currently working at the Punjab National Bank branch in Indemou, Unnao. The team proceeded to the location and successfully arrested the accused. Following the arrest, the bank manager was sent to jail.
This arrest marks an important step in the ongoing investigation into the alleged fraud committed by the bank manager. The legal proceedings will now continue as the case moves forward.
State Bank of India invites Online application from Indian citizen for engagement of retired officers of SBI & erstwhile Associates (e-ABs) to the following post on contractual basis. Candidates are requested to apply Online through the link given below. The name of post is: Support officer – Trade Finance Revamp Project & YONO Business. There are a total of 7 vacancies released for this recruitment.
Important Dates:
Start date of application: 07.06.2024
Last date of application: 27.06.2024
Education Qualifications: Since, the applicants are retired officers of SBI & erstwhile Associates (e-ABs), no specific educational qualifications are required.Experience: An officer of the Bank retired in scales III, IV, V having 5 years’ experience of Working in Trade Finance/International Banking/Forex domain.
Age Limit: The engagement shall be up to the maximum age of 65 years, subject to other conditions regarding renewal of contract. As such, maximum age as on date of advertisement i.e., on 07.06.2024 should not be more than 63 years.
Selection Process: The selection will be on the basis of shortlisting and Interview.
The Baroda UP Bank Employees Union, which is affiliated with the All India Regional Rural Bank Employees Association (AIRRBEA), has issued an urgent request to the bank management to install air conditioners in branches throughout Uttar Pradesh. This plea comes as the region grapples with a severe heat wave that is significantly impacting the health and productivity of bank employees.
The union’s letter highlights the extreme discomfort and health risks faced by employees due to soaring temperatures. Bankers are experiencing headaches, migraines, vomiting, and other heat-related illnesses, which make it challenging for them to perform their duties effectively. The union argues that air conditioning is not a luxury but a necessity for maintaining a safe and efficient work environment.
The heatwave this summer has become a life-threatening issue for both government officials and the general public. During the 2024 Lok Sabha elections, several polling officials in Bihar and Uttar Pradesh lost their lives due to heat-related conditions. In Uttar Pradesh alone, 33 poll personnel succumbed to the extreme heat during the seventh phase of the Lok Sabha election held in 13 constituencies.
Another issue raised in the letter is the discrimination in the installation of air conditioners. While some branches have had air conditioners installed, they are primarily located in officers’ cabins, neglecting the clerical workforce. A union member expressed concern and stated that this unequal treatment within the same bank is unfair and needs to be rectified immediately. The union insists that the issue should be resolved promptly to ensure fair and equal working conditions for all employees.
In their appeal, the union commended the dedication and resilience demonstrated by bank employees, who have continued to provide exceptional service despite the harsh working conditions. This commitment was evident in the recent FY24 annual results, where the bank achieved impressive financial performance. The union believes that providing a conducive work environment, including the installation of air conditioners, is vital for sustaining this high level of service and employee morale.
Public-sector banks (PSBs) are set to launch customized financial schemes specifically designed for women, particularly entrepreneurs and startup founders. These schemes aim to address the challenge faced by women in accessing funding through existing channels. The department of financial services has instructed banks to develop strategies to support women customers as part of the Enhanced Access and Service Excellence (EASE 7.0) reforms agenda. EASE 7.0 focuses on various aspects such as risk assessment, management of non-performing assets, financial inclusion, customer service, and digital transformation.
Recognition of Women’s Influence in General Elections
Women played a significant role in the recent general elections, with approximately 312 million women voters. According to pollsters, more women turned out to vote than men, and a larger number of women voted for the National Democratic Alliance (NDA), which is poised to form the new government.
Key Features of EASE 7.0 Reforms
The latest EASE reforms include the introduction of special banking services for women entrepreneurs and the organization of ‘loan melas’ (loan fairs) for those seeking financial support for their ventures. PSBs will also facilitate programs to connect women founders with startup incubators to assist them in scaling their ventures. Additionally, banks will organize camps to provide financial education to women, encourage them to become part of the banking system, help them access the benefits of various government schemes, and educate them about investing and financial planning.
Focus on Empowering Women Entrepreneurs
The head of a public sector bank, speaking on the condition of anonymity, stated that women support programs would be the central theme of EASE 7.0. They expressed confidence in the potential of their female customer base to advance and become successful entrepreneurs. Public-sector banks are eager to provide support through new and innovative financial products.
Importance of EASE Reforms
The EASE reforms have been a significant priority for the banking industry since FY19. Managed by the EASE steering committee of the Indian Banks’ Association, these reforms aim to enhance the capabilities of PSBs and meet the evolving demands of the industry. The reforms also establish a common platform for large and mid-size banks to adopt and reinforce best practices to improve customer service at PSBs.
Evolution of EASE Reforms
The EASE reforms have progressed through several versions. The initial versions focused on establishing a strong foundation and addressing operational and capability gaps. Subsequent versions focused on building new capabilities through digital innovations and analytics, improving performance through data and technology, and enhancing the digital customer experience. EASE 6.0 (FY24) concentrated on delivering excellence in customer service through technology and capability building.
EASE 7.0: Exclusive Focus on Women
EASE 7.0 will exclusively concentrate on women empowerment, ensuring that PSBs provide comprehensive financial support to women. The aim is to enable women to thrive as entrepreneurs and achieve success in their ventures. Efforts will be made to facilitate women’s access to financial services and empower them through various financial products and support mechanisms.
The District Consumer Disputes Redressal Commission has imposed a fine on HDFC Bank for insuring a consumer without his consent. The bank has been ordered to return the premium amount along with interest, as it was considered wrong to deduct the premium amount and transfer it to the insurance company. Additionally, both the bank and the insurance company have been asked to deposit Rs. 25,000 each in the Consumer Welfare Fund.
Background of the Case
Rajkumar Saini of Jagguka Wali Dhani had opened an account in the Nawalgarh branch of HDFC Bank. The bank insured him without taking his consent. When Rajkumar Saini found out about the insurance policy, he requested to cancel it within the allowed time frame. However, the bank and the insurance company did not pay attention to his request. After 48 days, even though there was only Rs. 49 in his account, the bank transferred Rs. 15,675 of the premium amount to Aditya Birla Capital Sunlife Insurance Company. As a result, the account holder’s balance went into the negative and the account was put on hold.
Decision of the Consumer Commission
Rajkumar Saini filed a complaint with the District Consumer Disputes Redressal Commission. The commission, presided over by Manoj Meel (District Commission President) and Neetu Saini (member), considered the bank’s actions unfair. They ordered HDFC Bank and the insurance company to deposit Rs. 25,000 each in the Consumer Welfare Fund. Furthermore, they directed the bank to return the premium amount of Rs. 15,675 with interest to Rajkumar Saini. Additionally, the bank was ordered to pay Rs. 7,500 for mental agony and Rs. 3,300 for complaint expenses.
Commission’s Directive for Compliance
The commission also directed HDFC Bank and the insurance company to clearly display the terms and conditions of insurance policies and the claim process in bold letters at their workplaces. This is to ensure that customers are well-informed and can easily understand the policies. The commission requested that a compliance report be sent to them within 15 days.
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