BANK OFFICERS’ CONFEDERATION
Submitted to the
ALL INDIA BANK
OFFICERS‘ CONFEDERATION (AIBOC)
ALL INDIA BANK
OFFICERS’ ASSOCIATION (AIBOA)
NATIONAL BANK OFFICERS’ CONGRESS (INBOC)
ORGANISATION OF BANK OFFICERS (NOBO)
Indian Banks’ Association,
C/o IDBI Towers,
– 400 005.
CHARTER OF DEMANDS
The Banking Industry has
witnessed a spectacular growth during the last decade
shedding its earlier protective control and close scrutiny by Reserve Bank in
the form of strict regulatory guidance. The banks have now become totally
commercial enterprises with a fiercely competitive environment calling for an
excellent balancing act on the part of the employees and officers of the
industry, breaking away from their traditional path of the last 4 decades. This
task has been performed by bank officers exceedingly well despite heavy odds
The globalization impact was felt
initially in the financial sector. Its so-called advantages and adverse
features are borne by the banking industry in the name of financial reforms
which commenced over one and a half decades
back. Since then, the banking industry particularly the Public Sector Banks and
the Old Generation Private Sector banks with over 95% of business coverage
under their jurisdiction faced the threat of extinction and loss of their
identity through planned attacks from different agencies including Government,
the Foreign and New Generation Private Sector Banks, with the able support of
Reserve Bank of India, the Banking Department and all the agencies involved in
the regulatory mechanisms of the banking industry. The industry survived
these pressures. However, the new initiatives in the matter of
technological advancement, mushrooming of new
generation private sector banks and also the foreign banks posed a
serious challenge to the workforce in the industry in terms of compensation
package, perquisites and other facilities. As a result, the compensation
system varies widely between the new generation private sector banks, foreign
banks and the Public Sector Banks as well as the Old Generation Private Sector
Having adopted all the business
strategies of the new generation private banks in order to perform
competitively, the expectations of the officers across the country are that the
compensation package available in these banks should constitute the minimum
benchmark for officers in PSBs.
The increasing shortage of staff
due to VRS and Exit policies and a high rate of attrition
with no matching recruitment has created a tremendous pressure on the
existing officers’ community with unlimited working hours and, appalling
working conditions. Work-life balance is sadly missing in the case of officers
in Public Sector Banks.
It is in this background, the
current salary negotiations assume added importance and should be a turning
point in the history of our bipartite settlements.
ASPIRATIONS AND EXPECTATIONS
COMPREHENSIVE CHARTER OF
a) Bank Officers aspire for a comprehensive review of the
compensation package and expect the revised package to attract the best talent
and to retain the existing officers. It should enable every officer to
derive adequate satisfaction so as to effectively compete in the hostile environment with utmost devotion and dedication. The
salary revision should be at the industry level only. A decent and reasonable
compensation package which provides not only the basic requirements but also
elevates the standard of life of the officers’ community for their increased
responsibility is the need of the hour. Negotiations are to be time-bound on
all demands in a comprehensive manner.
b) The Compensation
should ensure periodical up-gradation and protection against erosion in
real wages due to inflation with a definite career progression for each and
every officer to ensure their loyalty to the institution and take care of the
c) The Compensation package should be divided into 3 parts:
i) Salary and Dearness allowance: (Basic Pay
and DA) to be worked out on the basis of actual
ii) Perquisites and other allowances including Welfare and
Superannuation - ( Medical, P.F., Pension, Gratuity,
Leave Encashment,. LFC etc.,) the cost of which should be
de-linked from the cost of wages.
iii) Issues like regulated working hours, 5 days a week, compensation
for Extra Hours of work including working on weekly off days and holidays.
These issues have to be negotiated and settled as an integral part of the wage
d) The Bank employees should be treated on par with Government employees for the purpose of income tax and
e) The compensation package should be net of tax. The respective
banks should pay all the taxes that the employee is assessed for, as also the taxes on vehicles etc.,
f) The present scheme of recruitment of officers should remain
undisturbed. The contract labour either
directly or through outsourcing should not be resorted to.
g) The Salary Revision should be applicable to all Public Sector
Banks, Private Sector, RRB Sector. Uniformity
and parity of salary and service conditions to be ensured.
The 4 Officers’ organizations
namely AIBOC, AIBOA, INBOC and NOBO have jointly prepared the Charter on the
basis of the above principles and are submitting the same to the Indian Banks’
Association/Government of India for their consideration.
The Charter is divided into
Part I - Salary
Part II - Perquisites,
allowances, Welfare facilities including Superannuation benefits.
III - (a) Non monetary
Concerns of Lady Officers
Part IV - General
PART - I
The Basic Pay should be
constructed on the basis of merger of D.A. Index
at September ‘07 Index figure.
The Scales should be merged and
constructed on a running pattern upto Scale V and
thereafter continuation of increments payable once in every year.(The allowances should be treated as part of the BP for
superannuation purposes etc). The existing scales upto
Scale V may be merged into 2 scales.
The other scales namely , VI and VII should be drawn keeping in view the
structure of scales upto scale V.
The rising cost of living is
adversely affecting the ‘take home pay’ on day to day basis. The payment
of Dearness Allowance does not reflect the correct compensation. There is
a need to revise and increase the rate of compensation. Hence, the
existing rate of compensation for every 4 points should
be retained even after the merger of Index. The neutralisation
level should be raised to 125% in order to ensure adequate protection against
inflation as also to accommodate the loss the officers’ community has suffered
due to lesser neutralization in the earlier dispensation.
At present, the revision in
Dearness Allowance takes place on quarterly basis calculated on the previous 3
months’ average index. The revision in Dearness Allowance should be
automatic on the basis of monthly figures, since the salary payment is now
centralized and is automatic through technological advancement.
This is necessary to arrest the erosion in real wages.
PROFESSIONAL QUALIFICATION PAY
1. Increments for CAIIB should be granted in the following manner:
- I One additional
- II Two additional
On reaching the maximum, the
increment which is converted into PQP should be
Part-I The PQP should be equal to the
amount of last increment in the new scale.
Part-II The PQP should be equal to 3
times the increment in the last stage of the scale. (Part-I - one increment and Part II - two increments - total 3)
The increments as well as PQP
should be granted in respect of qualifications such as Diploma in Business
Management, Certified Information System Audit etc.,
FIXED PERSONAL PAY (FPP)
The FPP should be treated on par
with PQP in respect of fitment of Basic Pay on promotion and payment of all
other allowances. The fixed character or freezing should be done away with,
to avoid anomalous situation like a Senior Officer drawing a lower FPP than a Junior Officer, and officers drawing HRA etc.
(a) House Rent
The Banks are obliged to provide
quarters or leased accommodation to all the Officers. The Officers should
also have a choice to opt for HRA in lieu of
The Rate of HRA payable should
be as follows:-
of the revised Basic Pay at Major Metros
of the revised Basic Pay at Area I Centres
D 20% of the revised Basic Pay at all other Centres without any
HRA ON CAPITAL COST BASIS
a) The existing facility of HRA payable on capital cost basis at
150% should be increased to 200%
(b) SELF LEASING
Benefit of self lease to be
extended to officers who are willing to offer
their own houses for lease to the bank.
The existing rate should be
raised to 10% of B.P. without any ceiling. The minimum period of 7 days
should be removed.
CITY COMPENSATORY ALLOWANCE
The existing classification
should be reviewed into the following
I. Major Metro Kolkata, Delhi,Mumbai, Chennai, Bangalore,
Hyderabad, Ahmedabad, Pune, etc.,
II. Metros (Area I) All centres with more than 12 lakh
population and State Capitals
III. Centres with population of 1 lakh, and all District Head
RATES OF CITY COMPENSATORY ALLOWANCE
- 20% of Basic Pay
- 15% of Basic Pay
10% of Basic Pay
INCENTIVES FOR RURAL POSTINGS
( Rural Allowance at 10% B.P.
Weightage for promotions
Choice of posting after completion of term etc.,
The Closing Allowance should be
increased to Rs. 2500/- per quarter and payable to all officers including those
working at administrative offices.
HALTING / BOARDING / TRAVELLING EXPENSES
(a) Review and rationalization of Halting/Boarding/Travelling expenses.
(b) The Boarding expenses should be linked to
(c) The existing system of allowing banks
to fix the rates of reimbursement periodically should continue with a
provision to review them annually.
(d) All officers should be eligible for travel by Air, with Executive
Class entitlement for Senior Management.
(e) The minimum of 1000/- k.m. restriction
to be removed.
(f) For places not connected by Air, Officers should be permitted
to travel by AC-Ist Class.
PROTECTION OF ANNUAL INCREMENTS
An allowance equal to the amount
of last drawn increment should be granted every year
after reaching the maximum in the scale. The allowance so granted should
be treated as B.P. for all purposes.
PART - II
The Provident Fund should be at
the rate of 12% of Pensionable Pay, DA and all other
allowances reckoned for the purpose of fixation of pension.
Service Gratuity rules should be
modified. The Gratuity payable should be one month’s gross salary for
every year of service without any ceiling from the date of appointment to the
date of retirement. The provisions in the service rules as
regards restriction on payment of gratuity to be removed. The IBA should
take up with the Government for enhancement of ceiling on statutory Gratuity to Rs. 10 lacs.
Pension should be applicable to
RATE OF PENSION
Regular Pension : 50%
of pay and allowances drawn at the time of retirement
Family Pension : 40%
of pay and allowances drawn by the deceased employee at the time of retirement.
Pension Rules should be reviewed
to make provision for payment of 50% of pay and allowances drawn at the time of
retirement. The Voluntary Retirement provisions applicable to Pension
Regulations, should be made identical with Officers’ Service Regulations so as
to remove discrimination between Pension optees and P.F. optees as regards
number of years of service.
The Pension should be
automatically upgraded as and when the index rises by 50% of the number of
index already merged. For example, if the merger of points is at 600
points, and if the DA rises by 300 points over and above the merged level, the
Pension payable should be automatically revised.
Rule no 13 as regards addition
to qualifying service in respect of earlier recruits, conditions in recruitment
policy should be made applicable from prospective date.
WELFARE FACILITIES TO RETIREES
medical facilities and LFC to be introduced for the retirees also.
ENCASHMENT OF LEAVE
Encashment of entire leave at
credit should be permitted on retirement, resignation, removal and compulsory
The existing restriction on
encashment of leave on resignation should be removed. Maximum encashment at the
time of retirement, resignation etc., to be
increased to 360 days.
(a) Commutation should be allowed upto 40%
of the Basic Pension
(b) Commutation should be restored after 10 years.
(i) 25% of the Basic Pay should be paid as
post allowance to all designated officers viz. Branch Managers,
Divisional Managers etc.,
(ii) at 20% of the Basic Pay to all other
The allowance is necessary for
the reason that with technology innovation, the accountability and
responsibilities of all the officers have multiplied manifold.
The expenditure incurred for
Medical treatment, both on account of hospitalization and non-hospitaliation, for self as well as the dependent family members, should be reimbursed in full without any ceiling.
IBA should take up with
Government for enhancement of ceiling on income of dependent family members.
The definition of family should include, unemployed sons, unmarried daughters,
deserted or widowed sisters, daughters,
The Medical Scheme should be
available to all retired officers on the same terms and conditions under which
they were enjoying the facilities while on duty as in the case of the CMDs and EDs of Banks. Hospitalisation for major ailments and cost thereon are a
nightmare to bank officers. Therefore IBA on participatory basis with banks
should set-up multi facility hospitals at Metros and State capitals to start
with for catering to the retired officers and their families.
DIFFERENTIAL ON PROMOTION
The differential on promotion
from one scale to another scale should be equal to a minimum of 2 increments. A suitable fitment formula to be evolved to protect the emoluments
drawn in the previous grade on promotion from one grade to another grade in the
LEAVE FARE CONCESSION
The existing scheme of LFC
should be reviewed comprehensively. The mode of travel by Air
within the entitlement and without insisting on touching the designated place
to be permitted; officers to be permitted to travel anywhere on LFC. The
encashment should be related to the actual entitlement of mode of travel.
Allowances to be granted to all officers working in Sikkim, J
& K, N.E., H.P. A & N Islands, Lakshadweep
and other Centres.
The Hardship allowance already paid
at some centres for those who are posted to these
centers from other centres should be extended to the
locally recruited officers as well.
The rate of allowance in centers
which are already eligible for the allowance should be revised appropriately.
EX-GRATIA IN LIEU OF BONUS
A portion of Profits should be
shared with all the officers in the form of ex-gratia
1. Computer allowance to all officers.
2. All other allowances not specified above, but
payable as per the industry settlement as well as bank level
understandings should be raised by 100%.
PART - III
WORKING ENVIRONMENT AND WORKING
The Banks should provide to all
the officers an appropriate ambience and environment at all centres
to work at their cabins. The Officers should also be provided with all
the amenities such as supply of refreshment, beverages etc., inside the branch
premises in view of pressure of work.
The environment should be
hygienic and should take care of the vision etc., in view of
technology advancement, continuous exposure to computers etc., at the
Wherever the Dress Code is
insisted by the Bank, the managements should provide appropriate reimbursement
of expenses incurred.
The Banking Industry deals with
economic issues and handles huge financial resources of the community.
The working hours should be such that it should not lead to fatigue and result
in loss of health or upset the officers’ routine. Hence, the
working hours should be defined.
5 DAYS WEEK
The working hours should not be more than 36 hours
in a week. The daily working hours should not be more than 7 hours in the
Any working for more than 7
hours a day should be compensated monetarily to the extent of twice the actual
hourly salary in the normal course.
The Officers required to work on weekly-off days and holidays should be
compensated as above and in addition be permitted a compensatory off on a date
convenient to them or their leave account should be credited with the number of
The existing Leave Rules should
be reviewed and comprehensively rationalized.
The Officers should be free to
avail the leave as per their requirement. There should be provision for
availing the same on the basis of hours, half-day, full-day and longer periods
as is the practice in several corporates.
TYPES OF LEAVE
The existing system of
maintaining separate leave account should be done away with.
The entire leave available to an
officer should be credited to one leave account every year on the following
Leave: 15 days in a year.
leave: one month in a year.
Leave: 15 days in a year (on full Pay) without any
Holidays: 6 days in a year for festivals not declared as holidays
under the Negotiable Instruments Act.
5. Leave-bank to be introduced.
The leave so calculated should
be credited to the leave account of the Officer on a consolidated basis. The
Officer should be eligible to avail the leave on the basis of his requirement.
The intermediate holidays and weekly-off should not be counted as leave.
The Officer should have the
opportunity of encashing the balance available in the
consolidated leave account once in a year to the extent of 50% of the leave
available in his account at the beginning of the subsequent year. Further, an
officer should be permitted to encash the entire
leave at his credit at the time of retirement and no ceiling should be imposed
for accumulation of leave.
The existing Disciplinary
Proceedings need a review to ensure uniformity. Details will be furnished
during the negotiations. The areas requiring immediate attention are:-
At present, officers have to
knock the doors of Courts for justice after exhausting the appeal system.
The litigation is time consuming and costly. Hence, for
speedy justice, there should be exclusive Administrative Tribunals for
The Vigilance cases should be
dealt with at Bank level. There is no need to make any reference to the
Central Vigilance Commission. The Bank Boards should be authorized to
forward a list of all Vigilance Cases dealt with by the respective banks for
the information of the CVC.
The misconduct should be
redefined in the background of changes that have taken place in the area of
accountability and responsibility of the officers with particular reference to
Classification of Misconduct be defined.
The restriction of 2-3 cases for
defence at a time to be removed.
Ground rules for suspension to
be on par with CCS Rules and rigour period should not
exceed more than one year. The subsistence allowance should be full pay after
The Service Rules regarding
termination without opportunity to hear and continuation of service after 60
years for the purpose of departmental enquiry to be abolished.
APPEAL & REVIEW PROCEDURE
The Disciplinary Authority,
while imposing the penalty, should specifically indicate the period within
which the appeal has to be submitted. The imposition of the penalty
should be kept pending till the final disposal of the appeal.
The processing of all Review
Petitions by the Reviewing Authority must be made mandatory with a time limit
of 3 months.
UNIFORMITY IN PROCEDURE
The existing systems and
procedures vary from bank to bank. The systems should be made
uniform. The areas in which modifications are required are:-
a) Interpretation of Punishment - The Disciplinary Authority
should advise the effect of punishment and his order should contain an annexure
giving the practical effect of the order along with the restoration of original
position in the BP, rigour period etc.,
b) The suspension
should be restricted to the barest minimum.
Detailed guidelines should be formulated providing for inter-alia, (i) the time limit for the
conduct and completion of the enquiry proceedings., (ii) payment of Subsistence
Allowance; restoration of full payment after one year of suspension etc.
c) The suspension period, in case of minor penalty should be
treated as on duty and full salary allowance should be released after
d) The issue of memo/ show cause notice should be made mandatory
before the issue of charge-sheet.
e) The penalty of reduction in grade/scale should not be below the
grade/scale at entry point.
LOANS AND ADVANCES:
Housing Loan - The existing
ceiling on Housing Loan should be enhanced to Rs. 30 lacs
with the repayment period spanning upto 30 years.
Rate of Interest -
Simple rate of 2% p.a on the
entire Housing Loan.
Re-payment of Loan - Schedule should be fixed in
such a way that the Officers are not put to hardship with a provision for
re-payment from their pension even after their retirement, upto
the age of 75 years.
The premium on insurance of loan
should be met by the banks.
- An Interest-free Festival Advance of 3 months’ gross
salary should be granted. The repayment schedule can be extended from 12
months to 18 months.
The quantum of conveyance loan
to all officers to be raised to Rs. 10/- lacs at 2% p.a.
The quantum of clean O.D. should
be doubled, at 2% interest p.a.
The wards of officers should be
eligible for grant of education loans, free of interest during their study
period. The loans may be recovered after their employment at 2% p.a. In view of
transferability of officers, lack of priority in central schools etc., IBA
should start schools al least in Metros to ensure uninterrupted education of
children of bank officers.
On the death of officer, all
loans should be waived.
CONCERN OF LADY OFFICERS
The Banking Industry was in the
forefront in encouraging Lady Officers to accept promotions and take up higher
responsibilities. There are a number of Lady employees who are reluctant
to come forward and shoulder higher
responsibilities due to absence of exclusive facilities for their well being.
The Officers’ Organizations have been demanding for a long time certain
specific facilities to them keeping in view their dual responsibility. The
following are some of the issues:
a) PLACEMENT AND
A separate Transfer Policy
taking into account the difficulties of Lady Officers should be formulated by
IBA in consultation with the Officers’ organizations and forwarded to all the
Member Banks. The lady officers
should be exempted from mandatory rural assignments .
The Lady Officers need to be
extended the benefit of flexi-time and flexi-place concept. They should
be given choice of their place at the time of transfer and placement keeping
their difficulties in view. The Banks should be advised to keep one
exclusive Lady Officer in charge of Personnel Administration in all the
Banks to attend to their exclusive issues including transfer, placement
The Lady Officers whose spouses
are working elsewhere should be accommodated at the same place.
Similarly, where the wife and husband are employed in the same bank, they
should also be accommodated at the same centre.
b) PROVISION OF CRECHE FACILITY
The Banks should provide Creche facility for the benefit of children of Lady
Officers who are required to attend to office
and their children need parental attention.
The existing Maternity Leave
should be enhanced to 6 months at a time, from 90 days as at present. The
facility should also be extended in case of adoption of a child.
months’ additional sick leave after attaining the age 45 years.
The Paternity leave of 15 days
should be introduced for officers on 3 occasions.
employed in the same bank to be permitted to avail LFC
separately as per individual eligibility . The lady
officers to be permitted to take their dependent parents alongwith
them on LFC/LTC.
DEFINITION OF FAMILY
father-in-law & mother-in-law, depending on an officer to be treated
as member of family for the purpose of LFC/HTC and medical facility.
PART - IV
GENERAL BILATERAL RELATIONSHIP
The Officers’ Organizations
alone are entitled to settle the issues related
to the Service Conditions in respect of those who are promoted from clerical
cadre to officer cadre and also the Officers recruited directly from the
market. The issues such as promotion policy, transfer policy, fitment
formula etc., will have to be discussed and settled with the Officers’
organizations both at Bank and industry levels.
At present, there is no
structured forum at IBA level to interact with the Officers’ organizations on
service conditions. We have been requesting for setting up of a standing
body for holding periodical meetings with the officers’ organizations on all
the issues related to the banking industry, apart from the issues concerning
the service matters. The meetings can be held at quarterly intervals and
may also be utilized for the purpose of sharing the latest trends in the
banking industry along with corporate concerns to elicit the views of the
organizations on all such matters.
The recruitments should be taken
up on an ongoing basis. With the exit of a large chunk of the experienced
workforce, there is a dearth of experienced work force in the industry.
The training and updating of skills should be taken up on a war footing.
In view of shortage of manpower,
the retirement age should be re-fixed. We have the following
Completion of 20 years of pensionable service.
AGE OF SUPERANNUATION
age of superannuation to be raised to 65 years for all officers.
WITHHOLDING OF GRATUITY ON
The gratuity should not be
withheld on account of pending cases.
Present Ceiling of 3% of net
profits to be increased to 5% without any ceiling.
view of All India transferability of officers. The
Road tax on vehicles of different States should be paid by the bank on
DATE OF RETIREMENT
who were born on the 1st of a month to be retired on the last day of the same
month, and not the previous month.
PROTECTION OF EMOLUMENTS
The emoluments drawn by an
Officer should be protected on his transfer from a higher CCA centre to a lower centre.
TRANSPORTATION OF PERSONAL BELONGINGS
The Banks should take the
responsibility for shifting the personal effects of the officers on transfer
from one place to another. In the absence of such facility, the Officers
should be reimbursed the full expenditure on certificate basis.
INCIDENTAL EXPENDITURE ON
meet additional expenditure towards education of children, housing etc.,
officers to be paid two months’ salary to compensate incidental expenses on
transfer. In case of transfer outside the State, 3 months‘ salary to be paid towards incidental
OTHER ALLOWANCES SUCH AS HILL AND FUEL ETC.,
All the allowances other than
what have been covered in Part I and II should be enhanced appropriately.
AREAS DECLARED AS SEZ/NEZ/EPZ
The branches coming under the
above areas should be treated on par with Metro Centres
for all allowances and perquisites.
IMMUNITY FROM TRANSFER POLICY
Office-bearers of Associations to be extended immunity from transfer/placement. The Central/State level office-bearers to be given duty-off on par
with workmen organizations.
THE LOAD FACTOR
The negotiations should be
confined only for the purpose of deciding the load factor in respect of Basic
Pay and Dearness Allowance. The expenditure
towards other perquisites has to be delinked from the
DATE OF EFFECT
The date of effect for implementation
of the settlement on the basis of the charter of demands should be from
RIGHT TO SUBMIT SUPPLEMENTARY
The Officers’ Organizations
reserve the right to include, amend or alter the demands, as made out in the
Charter during the course of bilateral discussions.
All anomalies arising out of Salary Revision should be resolved irrespective of the cost factor
Sd/- Sd/- Sd/- Sd/-
Secy. Gen. Secy. Gen. Secy. Gen. Secy.
(AIBOC) (AIBOA) (INBOC) (NOBO)