UK introduced 4 Day Work Week for Employees

In a significant shift toward improving work-life balance, at least 200 companies in the United Kingdom have signed up for a permanent four-day working week for their employees, with no reduction in pay. This groundbreaking move, which has gained widespread attention, involves over 5,000 employees across various sectors, including charities, marketing, and technology, as reported by The Guardian, citing the 4 Day Week Foundation.

Joe Ryle, the campaign director of the 4 Day Week Foundation, shared his thoughts with The Guardian, describing the traditional five-day work week as “outdated” and “no longer fit for purpose.” He emphasized that the 9-5, five-day work structure was established more than a century ago and is in need of an update. According to Ryle, the new four-day work week would allow employees to have more than 50% of their time free, giving them the opportunity to live happier, more fulfilling lives.

Ryle believes that adopting a four-day work week with no pay reduction could be a “win-win” for both employees and companies. He highlighted that the change could help businesses attract and retain talent while improving productivity by achieving the same output in fewer hours

Among the 200 companies making the switch, 30 are in marketing, advertising, and press relations. Another 29 companies are from the charity, NGO, and social care sectors, while 24 belong to technology, software, and IT industries. Additionally, 22 firms in business, consulting, and management are also participating.

The move is seen as a positive step towards enhancing productivity and employee well-being. It is expected that the four-day work week will help companies create a more appealing work environment while ensuring employees remain motivated and engaged.

The four-day work week initiative was originally tested in the UK in 2022 as part of a pilot program with around 70 companies. The trial, which included research from prestigious institutions like the Universities of Cambridge and Oxford, Boston College, and think-tank Autonomy, showed promising results. By the middle of the trial, 88% of companies reported that the change was working well, and nearly 95% said that productivity either stayed the same or improved after the policy was implemented.

This move is gaining momentum as a new way of working that could reshape the future of work in the UK and beyond

CBI and Public Sector Banks will Hold Regular Meetings to Tackle Loan Fraud Cases

In a significant move to strengthen the fight against bank loan fraud, the Central Bureau of Investigation (CBI) and the Chief Vigilance Officers (CVOs) of public sector banks have decided to hold regular meetings. These meetings aim to improve cooperation and resolve any issues related to ongoing fraud cases. The decision was made during a coordination meeting held on Thursday, January 30, 2025, in Mumbai.

The meeting was attended by top officials from the CBI’s Banking Fraud Investigation Zone, the Department of Financial Services under the Finance Ministry, and CVOs from various public sector banks. During the day-long discussions, officials reviewed pending matters related to ongoing investigations and prosecutions in bank fraud cases. Several issues were resolved, and a plan was put in place to ensure smoother cooperation between the agencies involved.

A CBI spokesperson said, “Today’s meeting has established a formal platform for regular discussions between the CVOs and the CBI, as decided in the earlier meeting on December 4, 2024. This platform will now be used to carry forward our efforts in tackling bank fraud cases effectively.”

This meeting was a follow-up to a high-level discussion held on December 4, 2024, between the Department of Financial Services, the CBI, and public sector banks. The main agenda was to enhance interdepartmental cooperation and speed up investigations into bank fraud cases. Both the CBI and the banks presented detailed reports on various operational aspects, many of which were addressed during the meeting.

The move comes as part of a broader effort to combat financial fraud and ensure accountability in the banking sector. By fostering better communication and collaboration between the CBI and public sector banks, authorities hope to expedite the resolution of fraud cases and prevent such incidents in the future.

Loan write off 10 top PSU BANK

Govt launched MCGS MSME Fund to provide Free Loans upto Rs.100 crore

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On Wednesday, the government introduced a new credit guarantee scheme aimed at supporting the growth of Micro, Small, and Medium Enterprises (MSMEs) in line with the FY25 Budget announcement. The new scheme, called the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), is designed to provide loans up to Rs 100 crore for MSMEs to purchase equipment and machinery.

Key Features of the MCGS-MSME

The scheme offers 60% guarantee coverage by the National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for credit facilities sanctioned to eligible MSMEs. The loans can be used for the purchase of plant and machinery, which is a significant cost for manufacturing businesses.

To qualify for the scheme, MSMEs must meet certain requirements:

• The borrower must have a valid Udyam Registration Number.
• The loan amount cannot exceed Rs 100 crore.
• While the project cost may be higher, at least 75% of the project cost must be for equipment or machinery.

Guarantee Fee and Duration

Under the scheme, there will be no guarantee fee during the year the loan is sanctioned. However, for the next three years, the guarantee fee will be 1.5% per year of the outstanding loan amount as of March 31 of the previous year. After that, the fee will be reduced to 1% annually.

The scheme will remain in effect for four years from the date of the operational guidelines or until a total guarantee of Rs 7 lakh crore is issued, whichever comes first.

Boost to Manufacturing Sector

The MCGS-MSME is expected to have a significant impact on the manufacturing sector, which currently contributes about 17% to India’s GDP and employs over 27.3 million workers. The scheme is designed to facilitate easier access to credit for MSMEs, particularly for purchasing equipment and machinery. This, in turn, will support the growth of manufacturing and contribute to the ‘Make in India’ initiative.

As global supply chains shift, India’s low labor costs, abundant raw materials, and growing manufacturing expertise are positioning the country as a competitive alternative in global markets. The availability of affordable credit for plant and machinery will allow MSMEs to expand their manufacturing capacity, leading to faster industry growth.

Collateral-Free Loans for Expansion

One of the major benefits of this scheme is that it will allow collateral-free loans from banks and financial institutions. This is particularly helpful for medium-sized enterprises that may face difficulties securing traditional financing for expansion and growth.

Overall, the MCGS-MSME scheme is expected to significantly boost manufacturing in India by ensuring that MSMEs have the necessary financial support to invest in equipment and machinery, ultimately enhancing their competitiveness in both domestic and global

Bank of Baroda Officers Association protests against Undue Pressure on Staff

Bank of Baroda Officers’ Association Ernakulam has strongly protested against Undue pressure for improvement of the GEMS Score of the Zonal Head and Deputy General Manager (Business Development) and Unparliamentary conduct by Ernakulam Regional Head.

Fraud Bank Manager sentenced to Three Years Jail in Bank Fraud Case

The Special Judge for CBI Cases, Court-1, Patna, sentenced five individuals, including former bank officials, to three years of rigorous imprisonment and imposed a fine of ₹50,000 each in a bank-cum-insurance fraud case.

The convicted individuals are Indresh Mishra, then Branch Manager of Kshetriya Gramin Bank, Munger; Om Prakash Sharma, then Field Supervisor of Munger Gramin Bank, Barahia; Vinod Kumar Singh, Development Officer of Oriental Insurance Co., Munger; and two private individuals, Badan Singh and Sadan Singh.

Case Background

The Central Bureau of Investigation (CBI) registered the case on March 29, 1997, against Indresh Mishra and nine others. Investigations revealed that between 1983 and 1988, Indresh Mishra, while serving as Branch Manager, abused his official position by opening 76 fictitious loan accounts. He misappropriated ₹3,92,429 by creating false documents.

Further investigations uncovered a conspiracy between bank officials and private individuals pretending to be suppliers. They prepared fake documents showing the supply of materials to borrowers.

Fraudulent Loan Scheme

The accused, led by then Branch Manager Indresh Mishra, sanctioned and disbursed cattle loans to 25 fictitious borrowers. Payments were made to these so-called suppliers without any actual supply of cattle or materials. After a few months, false claims were filed with Oriental Insurance Company, alleging the cattle had died. In reality, no animals were ever purchased or supplied.

Charges and Trial

After completing its investigation, the CBI filed a chargesheet on March 19, 1997. Following the trial, the court found the accused guilty of the charges, which included criminal conspiracy, abuse of power, and misappropriation of funds.

The Special Judge sentenced the five individuals to three years of rigorous imprisonment, concluding a decades-long legal process.

NPA may increase by 25% in Unsecured Retail Loan Sector

Rising stress levels in unsecured retail loan books could pose significant risks to asset quality, with non-performing assets (NPAs) projected to increase by 25% over the previous fiscal’s levels in the financial years 2025 and 2026, warns Fitch Ratings.

The international rating agency highlighted concerns regarding the rapid growth in retail, agriculture, and microfinance institution (MFI) lending by private sector banks, including HDFC Bank and Kotak Mahindra Bank, as reported in their Q3 earnings.

“We forecast the banks’ impaired-loan ratio to decline by 40 basis points (bps) to approximately 2.4% for the current financial year and by an additional 20 bps in the next fiscal. However, we expect new bad loans in FY25 and FY26 to rise by about 25% compared to FY24 levels,” Fitch Ratings stated in a report released on Thursday.

Medium-Term Risks on the Rise

The report pointed out that the rapid expansion of retail lending in recent years has increased medium-term risks. Unsecured personal loans and credit card borrowings, which grew at an annual rate of 22% and 25%, respectively, in the three years leading up to FY24, have shown a slowdown in the first half of the current fiscal, with growth rates of 11% and 18%, respectively.

Impact of Regulatory Measures

The slowdown comes in the wake of the Reserve Bank of India (RBI) increasing the risk weights attached to unsecured lending by 25 percentage points in November 2023. This regulatory measure was aimed at curbing excessive risk-taking in the unsecured lending segment.

Implications for Banks

Fitch emphasized that while the impaired-loan ratio is expected to improve in the near term, the growing stress in unsecured retail loans could challenge the sustainability of this trend. The agency warned that the aggressive lending strategies adopted by private sector banks could exacerbate asset quality concerns in the medium term.

With unsecured lending remaining a key focus area for many banks, the coming years are expected to test their ability to manage risks effectively and maintain robust financial health.

TDS on perqusites kept hold.

how to calculate gratuity for bank employees

 To calculate the gratuity for a bank employee, you can use the formula:

https://stableinvestor.com/wp-content/uploads/2023/06/Gratuity-Calculator-in-Excel.xlsx

$Gratuity=(Lastdrawnsalary\times 15/26)\times Numberofyearsofservice$

 

Explanation

• Last drawn salary: This is the employee's basic salary plus dearness allowance (DA) 
• 15/26: This is the gratuity payable, which is 15 days' wages per year 
• Number of years of service: This is the total number of years the employee has worked for the bank 

Example 

If an employee's last drawn salary is Rs. 40,000 and they have worked for the bank for 15 years, then their gratuity would be Rs. 3,46,153.
This is calculated as: 

$15\times 40,000\times 15/26=3,46,153$




Any excesses would be treated as ex-gratia. If the number of years you have worked in the last year of employment is more than six months, then it will be rounded to the nearest figure. Suppose your tenure of service is 16 years 7 months, then you receive the gratuity for 17 years.


To qualify for gratuity, an employee must have completed a minimum of five years of continuous service with the company. The computation of gratuity aligns with the formula prescribed by the Payment of Gratuity Act,


according to the Payment of Gratuity Act, a bank employee cannot receive more than Rs 20 lakh as gratuity, as this is the maximum limit set by law for tax-exempt gratuity for all employees in India, including bank employees; any amount exceeding this is considered taxable ex-gratia payment.