NEWS FOR BANKERS
IMPORTANT BANKERS NEWS
EXCLUSIVE NEWS FOR BANKERS
BANK PENSIONERS NEWS /BANK RETIREES NEWS
BANK OFFICERS ASSOCIATION PROPOSES STRIKE IN FEBRUARY :
Date 11.01.2025: All India Bank Officer Confederation ( AIBOC ), a leading bank officers association in India, has proposed to go on a two-day strike tentatively on February 24th and 25th, 2025, in support of their various demands. Their demands include
Adequate recruitment of staff in all the cadres
Implementation of 5 days banking
Withdrawal of DFS instruction on PLI scheme
Resolution of pending residual issues of bipartite agreements
Appointment of workmen / officers directors
Safety measures against assault / attack by the customers
Increase gratuity limit to Rs 25 lakhs.
Source : AIBOC CIRCULAR
PUBLIC SECTOR BANKS STAFF STRENGTH SHRINKS :
Dated 06.01.2025 : The recent RBI Report on Trend and Progress of Banking in India 2023-24 highlights the following key points regarding bank staff numbers:
Private Sector Dominance: Private sector banks have significantly increased their workforce in the past decade, surpassing public sector banks in terms of employee strength . The head count in private sector banks have increased from 303, 856 in FY 2014 to 846, 530 in FY 2024 . These banks have seen significant business growth and have also increased their workforce. This suggests that business growth per person might be higher in private-sector banks compared to public-sector banks. Private sector banks have witnessed a substantial increase in the "officers" category of employees. The report notes high employee attrition rates in some private sector banks and small finance banks, posing potential operational risks.
Public Sector Banks: The head count in public sector banks have declined from 842, 813 from FY 2024 to 746, 649 in FY 2024 . While they have shown strong business growth in recent years, their workforce has been declining. This could potentially lead to higher business growth per person, but it's important to consider the potential impact on employee workload and productivity. Public sector banks have seen a decline in employees, particularly in the "clerks" category.
Report tells that the reduction in the employee strength of the state-owned banks has been in the “clerks” category while the private sector banks have added employees in the “officers” category. Since FY14, employees in the “clerks” category of public sector banks have decreased from 333,583 to 246,965. In contrast, employees in the “officers” category of private banks have gone up from 225,805 in FY14 to 796,809 in FY24
To read RBI's report , CLICK HERE
Why decline in PSB HEADCOUNT ?
The decline in Public Sector Bank (PSB) employee strength can be attributed to several factors:
Mergers and Consolidations: The Indian government has undertaken several rounds of mergers and consolidations among PSBs. This has led to the reduction of redundant positions and streamlining of operations
Automation and Technology: PSBs have been investing heavily in technology and automation. This has led to the automation of many routine tasks, reducing the need for manual labor.
Focus on Efficiency: PSBs are under pressure to improve their efficiency and profitability. Reducing employee costs is seen as a way to achieve this goal.
Retirement and Attrition: Natural attrition due to retirements and resignations has also contributed to the decline in employee strength.
Shifting Focus: PSBs are increasingly focusing on digital banking and other new-age banking services. This requires a different skill set and may lead to a reduction in traditional roles.
It's important to note that while the number of employees has declined, PSBs are still major employers in India. They are also investing in training and development to equip their employees with the skills needed for the changing banking landscape.
The leading trade union in the banking industry All India Bank Employees Association ( AIBEA ) has demanded an increase in recruitments of PSB Staff .
It's also to be noted that some Public Sector Banks (PSBs) have undertaken recruitment drives in recent times to improve their staff strength .
State Bank of India (SBI): Recently announced the recruitment of 600 Probationary Officers (POs).
Bank of Baroda: Announced the recruitment of 1267 Specialist Officers (SOs).
Other PSBs: Many other PSBs have also conducted recruitment drives for various positions, including clerks, specialist officers, and other roles.
These recruitment drives indicate that PSBs are still hiring to meet their operational requirements and address the evolving needs of the banking sector.
TOO LITTLE SALARY HIKE FOR TOO LONG :
Inflation adjusted salary turns negative for Indian workers Including BFSI workers
Dated 17.12.2024 : A recent unpublished , but reported by various media outlets , survey report prepared by M/S Quess corp Ltd for FKCCI suggests that wages of Indian workers have grown very nominally during five period of 2019 to 2023 . If we adjust for the inflation rates during the same five year period , salary growth becomes negative .
The report suggests that the compound annual growth of Indian workers was a mere 0.8 % while annual inflation rates were much higher during the period. The retail infltion was 4.8 % in 2019-20 , 6.2% in 2020-21 , 5.5 % in 2021-22 , 6.7 % in 2022-23 & 5.4 % in 2023-24 . Compared to the inflation rates , Wages grew total of mere 2.8 % for the entire period in BFSI sector ( Banking , Financial services & Insurance ) . Growth in wages in other sectors was also subdued . EMPI sector growth was lowest at 0.8 % during the five year period . In other sectors , growth of wages was 4 % in IT industry , FMCG 5.4 % , Logistics 4.2 % and retail wage growth was 3.7 % for the five year period .
The nominal growth of wages which has resulted in poor demand is said to be one of the reasons for subdued GDP growth of the econmy .
In contrast to the low growth of wages for employees , profits for the corporates grew four times for the private corporates during the four year period .
AIBEA OPPOSES NEW PERFORMANCE LINKED INCENTIVE SCHEME MOOTED BY THE FINANCE MINISTRY
Dated 24.11.2024 : It is reported that the Finance Ministry has instructed the State Bank of India and other nationalized banks to formulate board-approved policies under the framework of a new scheme for grantng Performance Linked Incentives (PLI) for Whole Time Directors, which will also extends to officers from Scale IV to Scale VIII. .
The Performance Linked Incentive for employees (clerical and subordinate staff) and officers (Scale I to Scale VII) has already been determined and settled through bilateral agreements between the Indian Banks' Association (IBA) and United Forum of Bank Unions consisting of all Employees Unions and Officers Associations at the industry level. These agreements, based on mandates provided by member banks' boards, also encompass officers in Scale VIII.
In view of the bilateral agreement already settled , AIBEA is opposing the new revised scheme mooted by the Finance Ministry . AIBEA contends that the selective approach of the government to incentivise only officers from Scale IV to VIII (counting less than 5% of the total workforce), while excluding over 95% of employees who primarily drive business at the field level, is inequitable.
AIBEA contends " The current directive, which prescribes how senior officers should perform and prioritize their work to earn incentives, surely infringes upon the autonomy of public sector banks. It disregards their governance structures and imposes centralized control, which could stifle strategic decision-making aligned with individual banks' unique challenges. Such micro-management by the government sets a dangerous precedence, undermining the independence of functions of the boards of the public sector banks. "
Further AIBEA questions introduction of Individual incentive as it would result into everyone pressuring the system for individual gain.
Hence , in a letter written to the finance ministry has urged the Department of Financial Services to respect the autonomy of public sector banks and entrust the Indian Banks' Association, along with bank managements, with the responsibility to design compensation mechanisms taking the Unions/ Associations along as hitherto.
To read the f letter of AIBEA addressed to the secretary DFS , CLICK HERE
BANKERS DA TO INCREASE BY 2.63 % FROM NOVEMBER 2024
Dated 04 .11.2024 : The Dearness Allowance on salary of bankers is set for an increase of 2.63 % from November 2024, as the Dearness Allowance ( DA ) payable to bank employees/officers has increased to 19.83 % .
As per 12th bipartite settlement, DA rate will increase 1 % over 123.03 average points index CPI 2016 = 100 . The average points for July 2024 to September 2024 is 142.87 and it works out to be 19.83 % . Earlier DA was 17.20 % .
The new DA rate is valid up to January 2025 and will be reviewed thereafter.
AIBEA OPPOSES NEW REVIEW SYSTEM OF BANK EMPLOYEES / OFFICERS
Dated 28.10.2024 : It is reported that the Finance Ministry has instructed the State Bank of India and other nationalized banks to undertake periodic review of the performance of employees and officers and prematurely retire those found to be inefficient.
According to these instructions, such a review of performance will be applicable as follows :
STATE BANK OF INDIA :
A. Officers: 50 years of age or 25 years of service
B. Sub -Staff and Clerks : 58 years and above
NATIONALIZED BANKS :
A. Officers : 55 years of age or 30 years of service
B. Sub -Staff and Clerks : 57 years and above
The instruction is to review the performance and efficiency of the above-covered officers and employees and RETIRE THEM PREMATURELY in the public interest if their performance and efficiency is not to the satisfaction of the management. An Officer can be prematurely retired by giving 3 months' Notice or pay in lieu thereof. A clerk or sub staff can be prematurely retired by giving 2 months Notice.
Banks have been instructed to undertake this review process every month and send the Report to the Government regarding the number of officers and employees reviewed and the number of persons who retired prematurely after the review.
The leading bank trade union ALL INDIA BANK EMPLOYEES ASSOCIATION ( AIBEA ) has opposed the move of the Government of India and has contended that the present provisions in the Bipartite Settlements/Awards/Officers Service Regulations to take action against any employee or officer wherever warranted. is sufficient .
Source : AIBEA CIRCULAR
AIBEA WITHDRAWS STRIKE CALL :
Dated 24.08.2024 : As the management of Bank of India have agreed not to take disciplinary actions against the office bearers / members of AIBEA ( All India Bank Employees union ) , the union has called off its strike call on the Wednesday 28th, August 2024
The grouse of the union against the management of Bank of India was that 13 office bearers of Bank of India Staff Union , Kerala had been suspended .
For Circular issued by AIBEA on the matter , CLICK HERE
AIBEA CALLS FOR A DAY'S BANK STRIKE :
Dated 20.08.2024 : The leading trade union of bank employees , AIBEA ( All India Bank Employees union ) has called for an all India Bankers strike on the Wednesday 28th, August 2024 to protest against the harassment of their members of Bank of India Staff Union , Kerala .
The grouse of the union against the management of Bank of India is that 13 office bearers of Bank of India Staff Union , Kerala have been suspended and disciplinary action taken against them quoting Gross indiscipline .
It is reported that other trade unions of banks like AIBOC , NCBE , BEFI , AIBIA , INBOC and INBEF have supported the strike call of AIBEA .
BANKERS DA TO INCREASE FROM AUGUST 2024
Dated 06.08.2024 : The salary of bankers is set for an enhancement from the month of August 2024 , as the Dearness Allowance ( DA ) payable to bank employees / officers has increased by 1.23 points .
As per 12th bipartite settlement , DA rate will increase 1 % over 123.03 average points index CPI 2016 = 100 .
The earlier average was points up for the quarter ended March 2024 was 139.00 and the average index points for the quarter ending June 2024 is 140.23 points and hence an increase of 1.23 points . Accordingly , new DA rate will be 17.20 % .
The sub- staff DA is set for an increase between Rs 313.87 to Rs 829.04 while clerical staff can expect a hike between Rs 384.66 to Rs 1,472.43
To read AIBEA CIRCULAR on the subject , CLICK HERE
BANKERS DA TO MARGINALLY INCREASE FROM MAY 2024
Dated 10 .06.2024 : The salary of bankers is set for a marginal enhancement from the month of May 2024 , as the Dearness Allowance ( DA ) payable to bank employees / officers has increased by 0.24 points .
As per 12th bipartite settlement , DA rate will increase 1 % over 123.03 average points index CPI 2016 = 100 .
The earlier average was points up for the quarter ended December 2023 was 138.76 and the average index points for the quarter ending March 2024 is 139 points and hence an increase of 0.24 points . Accordingly , new DA rate will be 15.97 % .
The sub- staff DA is set for an increase between Rs 61.24 to Rs 161.76 while clerical staff can expect a hike between Rs 75.96 to Rs 287.30
To read AIBEA CIRCULAR on the subject , CLICK HERE
CENTRAL GOVERNMENT RAISES GRATUITY LIMIT FOR ITS EMPLOYEES :
Dated 01.06.2024 : On the recommendation of the Seventh Central Pay Commission , the maximum limit of retirement Gratuity and Death Gratuity under the Central Civil Services is increased by 25% i.e.from Rs 20.00 Lakh to Rs 25.00 Lakh,with effect from 1 January 2024.
Department of Pension &Pensioners' Welfare of Government of India has issued an office memorandum dated 30.05.2024 and has asked all ministries to being it to the notice of Controller of Accounts/Pay and Accounts Offices and attached or subordinate offices under them.
To read the Office Memorandum dated 30.05.2024 , CLICK HERE
BENEFITS UNDER INTEREST FREE LOANS TO BANK STAFF ARE TAXABLE : SUPREME COURT
Dated 09.05.2024 : In a land mark judgment , A bench of Justices Sanjiv Khanna and Dipankar Datta have said the that interest-free or concessional loans provided by banks to their staff has to be treated as fringe benefits or amenities and are subject to taxation .
The bench also noted that the fixation of SBI’s rate of interest as the benchmark is neither an arbitrary nor unequal exercise of power, as the rule-making authority has not treated unequal as equals.
Section 17(2)(viii) of the Income Tax Act, 1961 and Rule 3(7)(i) of the Income Tax Rules, 1962 were challenged by various bank employees unions and officers associations . They had argued that the said legislations were arbitrary and actual interest rate charged by the banks to its customers had to be taken as benchmark .
Banks generally extend various loans like housing loans , educational loans and Festival advance at concessional interest rates .
Complete details can be had in the link in the article of Times of India attached
Source : Various media houses
DEFINITION OF A FAMILY FOR BANK EMPLOYEES :
Dated 24.03.2024 : In the recently signed bipartite agreement between UFBU and IBA , the definition of a family for bank staff is as follows :
FAMILY of a Bank employee shall include the following family members :
i Employee's spouse,
ii. Wholly dependent unmarried children (including step children and legally adopted children)
iii. wholly dependent physically and mentally challenged brothers I sisters with 40% or more disability,
iv. widowed daughters and dependent divorced I separated daughters,
v. sisters including unmarried/ divorced/ abandoned or separated from husband/ widowed sisters,
vi. parents wholly dependent on the employee.
In the case of physically and mentally challenged children irrespective of age, they shall be construed as dependents even after their marriage subject to however fulfilling the income criteria for dependent .
Dependent's income criteria :
Wholly dependent family member shall mean such member of the family having a monthly income not exceeding Rs.18,000/ (It was Rs. 12,000 under 11th BPS). If the monthly income of the parents exceeds Rs.18,000/- or the aggregate of monthly income of both the parents exceeds Rs.18,000/-, both the parents shall not be considered as wholly dependent on the employee.
Note: For the purpose of medical expenses reimbursement scheme, and Leave Fare Concession, for all employees, any two of the dependent father, mother, father-in law, mother- in-law shall be covered. The employee will have the choice to substitute either of the dependents or both once in a calendar year.
The above criteria for a family member and dependent family member will be applied only
1) for the purpose of availing LFC and
2)for reimbursement hospitalization expenses/coverage under the Medical Insurance Policy,
IMPROVEMENT IN LEAVE RULES
Dated 16.03.2024 : In the recently signed bipartite settlement , following changes / improvements have been made under the leave rules for the staff :
1. When leave is applied by an employee and the same is declined by the Manager, the valid reason for such decline of leave will be informed to the employee so that the employee can take up the matter with higher authorities or with the Union.
2. 2 days of Casual leave may be availed for half a day on 4 occasions in a year out of which 2 occasions would be in the morning and 2 occasions in the afternoon. Note: Casual Leave under this category can be availed after applying 24 hours in advance.
3.A single male parent can avail sick leave for the sickness of his child of 8 years and below by production of medical certificate about child's sickness.
4. Employees can avail sick leave for the sickness of their Special Child of 15 years and below for a maximum period of 10 days in a calendar year by production of medical certificate about child's sickness.
5. Women employees shall be allowed to take one day Sick Leave per month without production of any medical certificate.
6. In case of employees of the age of 58 years and above, if wife or husband falls sick and hospitalized in another centre than the place of work, he/she need not avail privilege leave and they will be granted sick leave (maximum of 30 days in a calendar year). This will help the employee to conserve his/her privilege leave which can be encashed at the time of retirement.
7. Employees shall be granted sick leave at the rate of one month for each year of service subject to a maximum of 720 days. (24 years x 30 days). (now it is 540 days for 18 years, then another 90 days after 24 years and another 90 days after 30 years, i.e. 720 days in 33 years)
8. In case of delivery of more than two children in one single delivery, Maternity Leave shall be granted upto 12 months continuously.
9. Maternity Leave shall be granted to a female employee for a maximum period of 9 months, for legally adopting a child who is below one year of age.
10. Maternity Leave will be granted for In vitro fertility (IVF) treatment subject
to production of medical certificate, within the overall limit of 12 months.
11. Special maternity leave upto 60 days shall be granted in case of still born or death of the infant within 28 days of birth.
12. Employees shall be granted Bereavement Leave on the demise of the family members (spouse, children, parents and parent-in-law) and number of days of such leave shall be decided by each Bank at their level.
13. For calculating privilege leave, casual leave and mandatory leave will not be excluded.
14. Principal Office bearers of All India Workmen Unions/Associations (AIBEA, NCBE, etc) shall be granted Special Leave upto 25 days in a calendar year. 15. Advance notice of 10 days for availing privilege leave will be waived for office bearers and Executive Committee members of a registered trade union.
16. Employees who are Defence Representatives in departmental enquiry proceedings will be granted one day special leave for the purpose of preparing the defence submissions of an employee. Such special leave shall be granted for a maximum of ten occasions in a year.
17. Leave Encashment: Accumulated privilege leave can be encashed upto 255 days now 240 days) at the time of retirement or upon unfortunate death of an employee while in service.
18. Introduction of Leave Bank Scheme: Looking to the contingencies where some of the employees get affected with very major ailments like cancer, cerebral stroke, paralysis, major organ transplantation, end stage liver disease, kidney failure, etc., or on account of major accidents, where the hospitalization, treatment and convalescence is prolonged and where in such cases, employees are absent from office on medical grounds for prolonged periods and have exhausted all the leave to their credit and hence are under compulsion to seek grant of extraordinary leave without pay, it has been agreed to evolve a staff welfare scheme under which provision would be made for voluntary encashment of Privilege Leave by the employees and the monetized value of such leave would be pooled under a Leave Bank system in each Bank out of which, special leave would be sanctioned to the employees affected by such contingencies. A Scheme would be formulated within 90 days.
Source : AIBEA CIRCULAR
NO CHANGE IN BANKERS DA
Dated 01 .02.2024 : No change in bankers DA as the average consumer index points have decreased in the quarter ending December 2023 to 9122.33 points from earlier average of 9124.51 points . Accordingly the DA slabs have remained same at 693 .
The next review of DA will be for the month of May 2024 salary
To read AIBEA CIRCULAR on the subject , CLICK HERE
AIBEA WITHDRAWS STRIKE NOTICE :
Dated 18.01.2024 : AIBEA had planned strikes on 19th & 20th, January 2024 to press for their demand for stopping outsourcing of manpower and more recruitment of staff in banks . it had also issued strike notice .
A reconciliation meeting between AIBEA and bank managements was initiated by the chief labour commissioner ( CLC ) , Delhi yesterday . In the meeting IBA reiterated that the above issues are part of charter of demands submitted by the unions and it would be discussed in the on-going 12 th bipartite negotiations . Further IBA will issue circulars to banks to maintain status quo in the matter of outsourcing .
In view of te above development , AIBEA has decided to withdraw the notice / call for the strike .
STRIKE CALL BY CENTRAL BANK OF INDIA EMPLOYEES / OFFICERS WITHDRAWN :
Date 19.12.2023 : Various employee unions and officers associations of Central Bank of India affiliated to AIBEA , AIBOA , INBEF , BEFI & NOBW had given a strike call on 26th , December 2023 pressing their demands for stopping harassment of officers and violation of agreements .
Yesterday discussion between unions and management representatives of CBI took place in the Dy CLC office on all the issues mentioned Strike notice given by the trade unions and an Understanding has been reached . In view of the developments Unions have withdrawn the proposed Strike on 26th December .
BANK EMPLOYEES STRIKE DEFERRED :
Dated 25.11.2023 : After AIBEA served notice of strike , a reconciliation meeting between AIBEA and bank managements was initiated by the chief labour commissioner ( CLC ) , Delhi . CLC advised the banks that ID act and settlements should not be violated by banks.
With regard to outsourcing of man power , managements agreed to maintain status quo on outsourcing. With regard to demand for recruitment of adequate staff , it was agreed that manpower policy will be discussed at IBA level. Hence AIBEA agreed to defer the bankwise and statewise strikes and continue the discussions. However all India Strike on 19 and 20 January 2024 is not withdrawn .
Next Conciliation meeting with CLC is scheduled on 12th January 2024 .
To read AIBEA circular on the issue , CLICK HERE
BANKERS DA SET FOR AN INCREASE FROM NOVEMBER 2023
Dated 31 .10.2023 : The salary of bankers is set for enhancement from the month of November 2023 , as the Dearness Allowance ( DA ) payable to bank employees / officers from November 2023 to January 2024 will go up by 61 slabs .
The average consumer index points have increased in the quarter ending September 2023 to 9124.51 points from earlier average of 8881.28 points . Accordingly the DA slabs have gone up by 61 slabs from 632 slabs to 693 . DA as % of Basic pay will increase by 2.52 % from 44.24 % to 48.51 % .
To read AIBEA CIRCULAR on the subject , CLICK HERE
IBA Circular dated 01.11.2023
BANKERS DA SET FOR AN INCREASE FROM AUGUST 2023
Dated 31 .07.2023 : The salary of bankers is set for enhancement from the month of August 2023 , as the Dearness Allowance ( DA ) payable to bank employees / officers from August 2023 to October 2023 will go up by 36 slabs .
The average consumer index points have increased in the quarter ending June 2023 to 8881.28 points from earlier average of 8736 points . Accordingly the DA slabs have gone up by 36 slabs from 596 slabs to 632 . DA as % of Basic pay will increase by 2.52 % from 41.72 % to 44.24 % .
To read AIBEA circular , CLICK HERE
Official circular is yet to be issued .
BANKERS DA SET FOR A SLIGHT INCREASE FROM MAY 2023
Dated 29 .04.2023 : The salary of bankers is set for enhancement from the month of May 2023 , as the Dearness Allowance ( DA ) payable to bank employees / officers from May 2023 to July 2023 will go up by 8 slabs .
The average consumer index points have increased in the quarter ending March 2023 to 8763 points from earlier average of 8704 points . Accordingly the DA slabs have gone up by 8 slabs from 588 slabs to 596 . DA as % of Basic pay will increase by 0.56 % from 41.16 % to 41.72 % .
To read AIBEA circular , CLICK HERE
BANKERS DA SET FOR A INCREASE FROM FEBRUARY 2023
Dated 31 .01.2023 : The salary of bankers is set for enhancement from the month of February 2023 , as the Dearness Allowance ( DA ) payable to bank employees / officers from February 2023 to April 2023 will go up by 32 slabs .
The average consumer index points have increased in the quarter ending December 2022 to 8705 points from earlier average of 8576.69 points . Accordingly the DA slabs have gone up by 32 slabs from 556 slabs to 588 . DA as % of Basic pay will increase by 2.10 % from 38.92 % to 41.16 % .
Official circular is yet to be issued .