Saturday, November 9, 2019

Letter to Hon PM and Hon FM regarding role of IBA

Copy of a letter dt 8.11.19,sent to Hon.PM and FM by Forum of bank pensioner activists on IBA is reproduced below :
Sri Narendra Modi ji,
Hon'ble Prime Minister,
Govt.of India,
New Delhi

Sister Nirmala Sitharaman,
Hon'ble Finance Minister,
Govt.of India
New Delhi

Respected Sir/ Sister,

           भारतीय बैंक संघ की भूमिका से
            बैंकिंग उद्योग में गहराता संकट !

             इसे प्रतिबंधित किया जाये तथा
               इसकी जगह कोई प्राधिकरण
            बना समस्याओं का निराकरण हो!!

In our letter dated 2nd Nov.,2019, we have had dealt at length on subject cited above. We do not know, as to what's the view that govt holds about Indian Banks' Association. According to IBA, as they have admittedly stated in their circular letter dated 30.9.2019, they have no legal/ constitutional status or authority to act on behalf of govt or Banks. For your ready reference, we quote below point 4 of IBA circular under reference:

"4. Hence, this circular to clarify IBA's status as follows:

● IBA is merely a voluntary association of banks and other financial services players.

● IBA is neither Government/ govt department nor a regulator and not even self-regulator/ self regulatory organization.

● IBA has no authority over Banks & other financial services players.

● IBA does not issue directive to Banks & financial services players, and

● IBA at a times, as directed by its members, merely facilitate matters of common purpose for its members and even then does not make any decision..."

2. Looking to facts & records, we find, govt has been assigning many tasks to IBA. PSBs have also been assigning entire HR related issues to IBA to discuss, negotiate and inter into agreement under ID Act/ MOU or advise. If they have no legal identity or status, how could they have been doing it all these years on behalf of govt or PSBs? They do not acclaim themselves as even Consultants. We do not know them registered under any Act of the land. They just say, they are 'voluntary association' of Banks and other financial services players.

IBA was established in 1946, when Banks were in private hands. It was their Club to take care of their business interests. According to IBA stand, it's same even today. How could it be? How such entity can deal with govt/ PSBs affairs without any legal status, authority and accountability?

Here, the government is required to take a call on IBA in the changed scenarios, which warrant a speaking and decisive Authority to act on behalf of government & PSBs. Apparent view is, IBA is more powerful than DFS, without any power, authority, accountability etc. IBA can ignore and set a side DFS directives/advices. It behaves like super-cop of Banking.

3. IBA collect fabulous amounts in crores as fees, subscriptions and donations from it's members every year. PSBs are major contributors and their executives preside over IBA, spend lavishly for cross purposes. Pertinent question is: whether PSBs can divert such huge amounts to a 'voluntary association' and facilitate it to finance cross purpose?

4. IBA apparently works on behalf of govt/ PSBs, obviouly it's acts and behaviours have far teaching impacts & consequences in govt name. PSBs employees are under govt. Any behaviour with them tantamount to govt behavior. IBA offered 2% wage increase that spread anger against govt at first insurance. Now, it is 12%. What does it speak of, if not, the wreckless, irresponsible and provocative act of IBA? It provoked banking fraternity against govt. IBA has been behaving as street vendor, not an institution, dealing in Govt of India affairs.

5. Govt made very good feel image among bankers by giving instruction in Jan.2016 to start next wage settlement , some 22 months in advance, so as to clinch settlement before 1.11.2017. But, IBA destroyed govt good will and gesture, by maintaining stoic silence, sitting for long & did not wake up despite several reminders from DFS. It's shocking, how PS Banks/ IBA could dare to undermine govt directives!.

6. Looking to host of unbecoming acts and behaviour of IBA and mounting resentment, frustration, anger and anguish of entire banking fraternity, for govt immediate need is to take stock of IBA roles & functions, legal status and identity and find out solution to provide an Authority in place to deal with Banking issues with sense of responsibility and accountability. IBA had failed and it must be abondoned and it's assets taken over by govt, since created out of funding of Banks. It should not remain a mery making point for top Bank Executives. Banking need a competent Authority, which may take pragmatic decisions to resolve HR issues to restore the shaken confidence of banking fraternity in govt as ideal employer.

We, therefore, reiterate our request to stop IBA from dealing in any matter of bank employees/officers. Also, please ask Banks to stop funding and withdraw their executives from IBA. IBA may please be abandoned and in place an independent & autonomous Authority please be appointed comprising eminent bankers, economists, financial & business experts to guide & superwise policy matters and HR issues of Banking. It's due to enept handling of HR issues by IBA that countless court cases are pending in various courts and banks are wasting crores in this regard.

We hope, you consider it sympathetically and take a decision in the interest of Banking Industry. Creation of an Authority is only way to bring normalcy, stability and better productivity in Banking. It will revitalize, energize & motivate banking workforce.

Awaiting your kind consideration & decision.

Respectful Regards,

(J. N. Shukla)
National Convenor,
Prayagraj, Bharat


Friday, September 27, 2019


We are reproducing here under the letter  addressed to Hon’ble Finance Minister, Govt of India on above subject by joint convenor, CBPRO and GS, AIBRF. 

Mrs. Nirmala Sitharaman                                                  Date:24.09.2019
Hon’ble Finance Minister
Ministry of Finance
Government of India
North Block
New Delhi
Respected Madam,
Department of Financial Services, Ministry of Finance, Govt of India advised IBA vide its        communication dated 24th February 2012 to evolve a Medical Insurance Scheme for Serving and Retired Employees of the Banks. IBA in turn put up this proposal as management issue before United Forum of Bank Unions (UBFU) at the time of wage negotiations which  concluded in April/May 2015. As a result a new medical insurance scheme got introduced both for Serving Employees and Retired Employees with effect from October 2015 and November 2015 respectively. After introduction of IBA’s Medical Insurance Scheme during the year 2015 there has been multifold increase in the premium thereby compelling many of the retirees to opt out of this scheme for the reasons of un-affordability, more particularly those who are family pensioners drawing as low as Rs.4000 per month pension. The entire amount of annual pension in such cases would not be sufficient to meet out the medical insurance premium. The sky rocketing premium has robbed many pensioners of the benefit under IBA policy which has been otherwise largely helpful to the retirees. Such situation calls for the improvements/modifications in the scheme for retired employees. It is with this view in mind the following requests are made for kind consideration:
a. Since Government communication dated 24.02.2012 did not envisage payment of medical insurance by the Retirees, it should be borne by the Bank as in the case of Serving Employees. It is pertinent to mention that the Executive Directors/Managing Directors/ Chairman and Managing Directors are extended the benefit of medical expenses reimbursement even after retirement without any charge to them on similar lines as they were entitled during their service. It is therefore discriminatory on the part of the Banks to create a class within the class
with regard to extension of medical benefit facility to retired bank employees vis-à-vis the top Retired functionaries of the Bank on one side and the Serving Employees on the other side. There is an urgent need to remove this anomaly urgently.
b. Since all the retirees are senior and super senior citizens, their medical insurance/hospitalization reimbursement are social security measures and are the responsibility of the employer as in the case of Government and PSUs. It assumes greater significance after introduction of AYUSH Health Care for other sections of society by the Government without charging any cost to the beneficiaries. Alternatively, the Retired Employees of the Banks which are instrumentalities of the Government and hence fall within the meaning of State under Article 12 of the Constitution of India should be covered under CGHS after charging a fixed lump sum amount at the time of retirement or at the time of extending the cover to all those who have already retired.
c. It is requested to include specially challenged dependent children in the definition of family to provide Medical Insurance benefit.
d. It is pertinent to mention here that United India Insurance Company being the Insurer for Serving and Retired Bank Employees had quoted a moderate premium of Rs. 7,500/- as a penetrating price in the first year (2015) but has been increasing the premium every year in such a manner that the premium for Retirees is far more than the premium which is applicable for Serving Employees. The fact that Retirees are forced to bear the premium while for Serving Employees it is borne by the Banks, makes the discrimination a case of double jeopardy and unbearably harsh. Such steep increase in the premium has been compelling the Retired Employees to exit the Scheme for affordability reasons. It has resulted in a pitiable situation for such of those Retirees who are forced to exit IBA’s Medical Insurance Scheme as they had discontinued their Individual Medical Insurance cover and are barred from taking Individual cover afresh either on account of crossing the threshold age or on the ground of having pre-existing diseases.
It is in this background, we request that those who have exited IBA’s Group Medical Scheme may be permitted to rejoin the Scheme with the suggested improvements.
We earnestly request you to give suitable instructions to DFS/IBA/Member Banks to consider our request and suggestions favourably for the ensuing renewal which is due on 01.11.2019 and thus provide much deserved relief to the Bank Retirees who were an integral part of Nation building by implementing the Policies and Programmes of the Government for 30-40 prime years of their life. The Government under the dynamic and caring leadership of our Hon’ble Prime Minister has been applauding the contributions of Public Sector Bank Employees and Officers for implementing various Schemes with a total sense of commitment and devotion. We are therefore earnestly requesting for a small reward for the good work done for the Government and the society.
Kindly consider our request favourably and oblige.
With regards,
Yours Faithfully,
(K.V. Acharya)                                (S.C.Jain)
Joint Convener, CBPRO       General Secretary, AIBRF


Thursday, September 5, 2019

Supreme Court Judgment on Contempt Petition filed by retirees of erstwhile SBM

Hon Supreme Court has delivered judgement favourable to retirees of erstwhile SBM in the contempt petition case filed by them. Please click on the following link to view text of the Judgement
 Supreme Court Judgement

Thursday, August 1, 2019

D.A. payable to bank pensioners.w.e.f.Aug'19 to Jan'20

     D.A. payable to bank pensioners.w.e.f.Aug'19 to Jan'20

D.A calculator is available for calculating revised D.A. and difference. For calculating D.A , enter basic ( original basic without reducing commutation amount) and click on the calculate button. Revised D.A , Present D.A. and difference will be displayed on the calculator. Select appropriate retirement date range according to the date of retirement.

Click on the following link for  D A Calculator. 

D.A. Calculator