This Booklet is for the use of the unit

CBEU MANUAL ON
SERVICE CONDITIONS
(Updated till January, 2013)

(23rd Triennial Conference Publication)

CORPORATION BANK EMPLOYEES’ UNION (Regd.)

(Central Office : Mumbai)
Mangalore Office: CBEU Golden Jubilee Hall,
Opp. Sharada Vidyalaya,
Kodialbail, MANGALORE - 575 003
 FOREWORD
Conference is an avenue to have an insight into the past activities and reassert
the ideologies with updates of latest trends, to present mandate to a new setup.
It is a forum of evaluation and orientation. In the course of evaluation, the derivation
of addendum to the service conditions delivered by the leadership to the
membership, updating the records becomes a necessity.
The service conditions through Sastry Award modified into settlements, through
joint talks with the Bank management by our Union, through welfare measures of
the Bank, through clarifications of IBA and Government guidelines, have been
assembled in one book. This would be a ready reference for redressal of
grievances. This volume should aid the members as a solution to problems at
the branches.
Although the 10th Bipartite is now due to employees and revision would alter for
better, the tradition of imparting the knowledge to members during Conference
has become the culture of our Union. The sole motive of this publication is to
educate the members about the available rights and privileges of the employees.
The knowledge is power and this heightens the leadership stature at the branch.
The problems, which arise at the branch suddenly turn the employees to leaders
for clarification. At that time, scrolling the eyes on few lines in this book, with the
direction of index, elate for accrual of the available benefit. It may not be possible
to retain the knowledge of service conditions all the time in memory and this
publication would unburden assimilation of those difficulties.
It is an advise to every delegate to keep this book at the branch and this has to be
in custody of the Branch Secretary. The Branch Secretary shall liaison with the
Branch Manager in case of problems arising out of confusion and lack of
clarification. If it leads to misinterpretation, for a right understanding, the leaders
may be contacted.
I commend this book for a thorough reading for better perception. The 23rd
Conference of our Union held at the birth place of our Bank - Udupi, should lay a
foundation for genesis of revising further better service conditions to the employees
of Corporation Bank. Com. Vincent D’Souza, the Vice President and Workman
Director of our Union has strained every nerve to make this publication a reality.
Best way to thank him is to make use of this book as a ready referral and utilize
this regularly by reducing grievances of employees at branches. The noble
purpose of the Union is to spread the benefits to all and ease the employees from
the burden and deceit of grief.
With Best wishes,

Mangalore, (K. S. Joshi)

24th February, 2013 General Secretary, CBEU
 NOTE
The Service Conditions of bank workmen are governed by various Awards, Industry
level Settlements, Central Government notifications/guidelines, Bank level
Settlements/Agreements etc.
PART- I OF THIS BOOK CONTAINS THE PREVAILING CLAUSES OF
FOLLOWING AWARDS, ACTS, CENTRAL GOVERNMENT NOTIFICATION
AND INDUSTRYWISE BI-PARTITE SETTLEMENTS.
1. The Sastry Award (1953)
2. The Labour Appellate Tribunal Decisions (1954)
3. The Industrial Disputes (Banking Companies) Decisions Act, 1955
incorporating the recommendations of Bank Award Commission.
4. The Industrial Disputes (Banking Companies) Decisions Amendment Act,
1957 in respect of the then ‘C’ Class Banks.
5. The Central Government’s notification, dated the 13th February, 1960 in the
matter of provision relating to calculation of dearness allowance.
6. The Desai Award (1962)
7. The First Bi-partite Settlement dt. 19-10-1966 - Covering A,B,C Class Banks
& Exchange Banks and their workmen represented by AIBEA.
8. The Second Bi-partite Settlement dt. 21-10-1970 - Covering A,B,C Class
Banks and their workmen represented by AIBEA.
9. The Bi-partite Settlement dt. 23-07-1971
10. The Bi-partite Settlement dt. 08-11-1973
11. The Third Bi-partite Settlement dt. 01-08-1979 & 31-10-1979 - A Class Banks
12. The Third Bi-partite Settlement dt. 22-11-1979 - B & C Class Banks
13. The Bi-partite Settlement dt. 21-04-1980
14. The Bi-partite Settlement dt. 08-09-1983 - Residual Issues
15. The Fourth Bi-partite Settlement dt. 17-09-1984 - A Class Banks
16. The Bi-partite Settlement dt. 28-02-1985 - B Class Banks
17. The Bi-partite Settlement dt. 05-01-1987
18. The Bi-partite Settlement dt. 29-03-1987
19. The Bi-partite Settlement dt. 23-02-1989
20. The Fifth Bi-partite Settlement dt. 10-04-1989 - A Class Banks
21. The Bi-partite Settlement dt. 03-02-1990 - B Class Banks
22. The Fifth Bi-partite Settlement (Supplementary Settlement) dt. 29-06-1990 -
A Class Banks
23. The Bi-partite Settlement dt. 13-10-1990 - B Class Banks
24. The Bi-partite Settlement dt. 16-07-1991 - Residual Issues.
25. Settlement on Pension & Computerisation dt. 29-10-1993.
26. Minutes on HRA - Surat, Jaipur and Lucknow dt. 22-06-1994.
27. The Sixth Bi-partite Settlement dt. 14-02-1995
28. MOU on Relativity issues dt. 30-09-1996
29. Settlement dt. 14-12-1996.
30. Settlement on Residual Issues dt. 28-11-1997
31. The Seventh Bi-partite Settlement dt. 27-03-2000.
32. The Bi-partite Settlement dt. 10-04-2002 on Disciplinary Matters.
33. The Eighth Bi-partite Settlement dt. 02-06-2005.
34. Joint Note dt. 22-06-2005 on Pension Matters.
35. The Ninth Bi-partite Settlement dt. 27-04-2010

LIST OF ABBREVIATION USED IN THIS BOOK

L.A.T. : Labour Appellate Tribunal

S.A. : Sastry Award
D.A. : Desai Award
I.B.A. : Indian Banks’ Association
B.P.S. : Bi-partite Settlement
MOU : Minutes of Understanding

PART - II OF THIS BOOK CONTAINS VARIOUS BANK LEVEL SETTLEMENTS/

AGREEMENTS, CENTRAL GOVERNMENT GUIDELINES ETC.
 INDEX
PART - I : AWARDS/BIPARTITE SETTLEMENTS
CHAPTER SUBJECT PAGE No.
I SCALE OF PAY 1 - 10
Pay Scales 1
Increment/Stagnation Increment 2
Definition of Pay 3
Increments for Educational Qualifications 3
Graduation Pay 4
Granting, Stoppage & General withholding of increments 7
Additional Increment 8
Fixed Personal Pay 9
FPP Table 10

II SPECIAL PAY 11 - 37
General Rules 11
Special Pay 13
Special Pay for clerical staff upto 30.4.2010 17
Special Pay for subordinate staff upto 30.4.2010 18
Special Pay for clerical and subordinate staff w.e.f. 1.5.2010 19
Duties of clerical and subordinate staff w.e.f. 1.5.2010 20
Graduation Pay/Professional Qualification Pay 21
Special Pay duties for Clerical cadre 22
Duties of erst-while special posts in clerical cadre 25
Special Pay duties for subordinate staff 30
Special Pay duties for discontinued posts 33

III DEARNESS ALLOWANCE 38 - 41

IV HOUSE RENT ALLOWANCE 42 - 45
HRA Rates 42
HRA in Project Area 43

V CITY COMPENSATORY ALLOWANCE 46

VI OTHER ALLOWANCES 47 - 62
Washing Allowance/Cycle Allowance/Hill & Fuel Allowance 47
Officiating Pay 48
Water Scarcity Allowance 49
Split Duty Allowance/Pass Book Allowance 50
Paradip Port Allowance/Special Area Allowance 51
Hindi incentive Allowance 51
CHAPTER SUBJECT PAGE No.
Halting Allowance 58
Halting Allowance Rates 60
Project Area Compensatory Allowance/Project Area Allowance 61
Conveyance Allowance/Transport Allowance 62
Deputation Allowance 62

VII LEAVE RULES 63 - 73

General 63
Privilege Leave 65
Encashment of PL 66
Casual Leave 67
Sick Leave 68
Extra-ordinary Leave 69
Maternity Leave 70
Special Leave/Quarantine Leave 71
Leave preparatory to retirement/Special Leave in case of
injuries on duty 72
Special CL for Blood Donation/Exercising
Franchise/ Non attendance of office due to curfew 72
Family Planning/ Special Leave for attending courts or
enquiries 73
VIII LEAVE FARE CONCESSION 74 - 81
Eligibility/Part-time Employees 74
Travel-Purpose/Distance & Option/Mode of Travel 75
Reimbursement of expenses on road travel 77
Travel & availment by dependents 78
Encashment of PL 79
Evidence of Travel/Journey Tickets - Advance/
Salary Advance 80
Encashment of LFC Facility/ Definition of Family 81
IX MEDICAL AID & EXPENSES 82 - 119
Quantum 82
Guidelines for reimbursement of Hospitalisation Expenses 84
Hospitalisation Expenses/Definition of Family 85
Hospitalisation Expenses - Table 86
Visit at the chamber - Consultating Physician/ Visit by
Physician at the residence/Visit by Specialist at Hospitals 87
Hospitalisation charges - Maternity 88
Ambulance charges/Domiciliary Treatment 89
CHAPTER SUBJECT PAGE No.
System of Medicine/Package charges 90
Schedule of charges for tests & investigations 92
Operation Charges 101
Treatment of injuries sustained on duty 102
IBA clarification on system of Medicine 103
List of Hospitals for specialised treatments 105

X HOURS OF WORK, OVERTIME, WEEKLY OFF,

STAGGERING, SPLIT DUTY 120 - 124
Hours of work 120
Staggering of working hours/ Change in the weekly
holiday/Overtime 121
General 123
Business hours 124

XI DISCIPLINARY ACTION AND PROCEDURE

THEREFOR 125 - 137
Gross Misconduct - Acts 126
- Punishments 128
Minor Misconduct - Acts 129
- Punishments 130
General 130
Utilisation of proceeds of fine/ Suspension &
Subsistence allowance 135
Voluntary cessation of employment 136

XII RULES REGARDING RECRUITMENT 138 - 139

XIII RULES REGARDING TRANSFER 140 - 145

Transfer on requests/Clarification on policy 140
Deployment of staff 141

XIV JOINING TIME ON TRANSFER 146

XV TRAVEL ON DUTY/TRANSFER/TOUR 147 - 150

General 147
Reimbursement of expenses on road travel/
Travel by dependents on transfer 148
Transportation of personal effects/
Compensation on transfer breakages 149
Employees on tour/duty 150
CHAPTER SUBJECT PAGE No.
XVI UNIFORMS AND LIVERIES 151
XVII CLASSIFICATION OF EMPLOYEES 152
XVIII PROBATIONERS 153 - 154
XIX PART-TIME EMPLOYEES 155 - 158
XX DRIVERS 159 - 160
XXI WATCH AND WARD STAFF 161 - 163
XXII AGE OF RETIREMENT 164
XXIII RETIREMENT BENEFITS 165 - 177
Provident Fund 165
Gratuity 170
Gratuity Chart 173
Encashment of PL/Pension 174

XXIV COMPUTERISATION / MECHANISATION AND

TECHNOLOGICAL UPGRADATION 178 - 179
XXV MISCELLANEOUS PROVISIONS 180 - 190
Improvement in working in Bank’s Branches/Offices etc. 180
Improvement in Customer Service/Godown Inspectors 181
Conversion of Cashiers & Typists/Night Clearing/Business
Hours/Combined Designations 182
Standing orders/Retrenchment of superfluous workmen 183
Search/Temporary Stoppage of work/Maintenance of
service books 184
Redressal of grievances/Service certificate/ Issue of
Notices & Orders 185
Procedure for termination of employment 186
Temporary Godown Keepers 187
Implimentation of 9th BPS 188
Interpretation of Bipartite Settlement 190
XXVI RESTRICTIVE PRACTICES 191 - 193
XXVII IBA CIRCULARS AND GUIDELINES 194 - 216
Stagnation increment on reversion/House Rent Recovery 194
Special Allowance/H & FA/PTEs 195
Gratuity/Business Hours/Sick Leave/Hospitalisation
Expenses/Reimbursement of HRA 196
Hospitalisation Scheme/LFC Reimbursement 197
Incentive for small family/Increment for period of suspension
upon reinstatement 198
CHAPTER SUBJECT PAGE No.
Special / Special Casual Leave 199
Reimbursement of TA/DA to defence representatives/witnesses 200
HRA at semi-special places 201
Ex-servicemen-Refixation of Pay/Payment of Gratuity 202
Refixation of Pay of Ex-Servicemen Re-employed 203
IT Exemption - Air Travel 203
Appointment on Compassionate Grounds - Case of Suicide 204
Definition of Family/Payment of Gratuity 204
Subsistence Allowance / Payment of HRA, CCA 205
Ex-servicemen Pay fixation / Compensatory facility -
Kashmir valley / Hospitalisation Expenses - New Technologies 206
Benefits of 7th BPS/Payment of Gratuity - Definition of Pay 207
Computation of FPP / Maternity Leave 208
PTEs-Encashment of Leave 209
Milestone Award/Payment of Gratuity - Computation of wages 210
Clarifications on 8th BPS 211
Reimbursement of Hospitalisation Expenses 212
Deputation Allowance - RRBs/DICs/DRTs 213
Reimbursement of Hospitalization Expenses 214
Reimbursement of TA/DA to Serving / Retired / Dismissed
Employees 215

XXVIII BANK EMPLOYEES’ PENSION REGULATIONS,

1995 - NOTIFICATION 217 - 259
Preliminary 217
Application and Eligibility 220
The Fund 224
Qualifying Service 226
Classes of Pension 230
Rate of Pension 233
Family Pension 235
Commutation 242
General Conditions 246
Appendixs 253

XXIX IBA CIRCULARS ON PENSION 260 - 301

Option/Withdrawal of option for Pension/Netting 260
Family Pension - Pensioners’ whereabout not known 261
CHAPTER SUBJECT PAGE No.
Option / Netting 262
Definition of Pay 263
Pension to Retirees settled outside India 264
Strike Clause 265
Pension on VRS-PL Encashment/Updation of Pension 266
Illegal Strike 267
Voluntary Retirement 268
Part-time Employees - Refund of PF 269
Computation of Family Pension /Updation of Pension 270
Family Pension / Pension to Employees on Deputation 271
Dearness Relief on Ex-gratia 272
Broken Period of Service 273
Departmental/Judicial Proceedings 274
Military Family Pension 275
Release of Provisional Pension 276
Ex-gratia to serviving Pre 1.1.1986 Retires/
Computation of Pension - Wage Revision 278
Reckoning of DA at 1616 points 283
Amendments to Pension Regulations 284
Calculation of Average Emoluments -Strike with loss of pay/
Payment of Pension - Redefintion of Pay in BPS 288
Pension for Employees retired between 1.11.2007
and 31.7.2008 298

XXX PENSION UNDER 8TH BIPARTITE SETTLEMENT 302 - 317

XXXI ONE MORE OPTION FOR PENSION AND
NEW PENSION SCHEME 318 - 342
A) One more option for pension 318
B) New Pension Scheme 326
 PART - II : BANK LEVEL SETTLEMENTS / AGREEMENTS /
GUIDELINES ETC.
CHAPTER SUBJECT PAGE No.
I APPOINTMENTS 345 - 364
Temporary/Permanent Subordinate Staff 345
Appointment of Temporary / Permanent Sweepers 350
Appointment of Armed Guards 352
Recruitment of Single Window Operators 354
Appointment of Special Assistants 357
Recruitment of General Probationary Assistant Managers 362
II PROMOTIONS 365 - 382
Policy on promotion of Sub-staff to Clerical Cadre 365
Policy on promotion from Clerical to Officer’s Cadre 373
III FITMENT FORMULAE 383 - 394
On promotion from Sub-staff to Clerical cadre 383
On promotion from Clerical to Officer’s cadre 385
On re-employment of Ex-servicemen Award staff 388
IV FRINGE BENEFITS 395 - 412
Briefcase 395
Closing Allowance 395
Conveyance Expenses 396
Conveyance Allowance to Blind/OPH Employees 396
Cost of Newspaper 397
Concession on Locker Rent 397
Concession on Educational Loan Interest 398
Daily Conveyance 398
Entertainment Expenses 398
Fixed Personal Pay on Promotion 398
Incidental Expenses on Training / Deputation 399
Leave Fare Concession - Service Charges 400
Leave Fare Concession - Travel by Taxi 400
Leave Fare Concession - Travel by Own Car 401
Leave Fare Concession - Local Sight seeing 402
Leave Fare Concession - Conducted Tour 402
Lodging Expenses to Clerical Staff 403
Medical Expenses for Dog/Snake bite 403
Memento to Retirees 403
Permission to use two wheeler for cash remittance 404
Physically handicapped employees-Companion 404
Sabbatical Leave to Women Employees 404
Shifting expenses on superannuation 405
CHAPTER SUBJECT PAGE No.
Sub-staff employees - Payment of Daftary 405
Salary in advance towards Festivals 405
Study Leave 405
Supply of Uniform - Arm Guards 406
Supply of Uniform - Sub-staff / PTS 408
Raincoats / Umbrellas 409
Shoes and Socks 409
Uniform Maintenance Expenses 410
Reckoning of past service (20.8 of BPS) 410
Special Assistant Allowance for Key Holding 410
Telephone / Mobile Expenses 410
Transfers - Reimbursement of Expenses 411
TA & other expenses on request transfer 411
TA on Transfers for Second Time 411
Transfers - Joining Time 411
Travelling Expenses while on official work 412
Unavailed Casual Leave without Medical Certificate 412
Unblemished Service - Silver Jubilee Award 412
Wishing members of the staff on their birthdays 412
V LOANS & ADVANCES 413 - 439
Festival Advance (FADL) 413
Employee Demand Loan (EDL) 413
Special Demand Loan 413
Employee Consumer Instalment Loan Scheme (CIL-Old) 414
Employee Consumer Instalment Loan Scheme (CIL-New) 414
Employee Secured Cash Credit Facility (ESCC) 414
Employee Clean Overdraft Facility (ECOD) 415
Employee Clean Term Loan (ECTL) 416
Conveyance Loan Scheme (EHPL) 416
Conveyance Loan to PTS for purchase of Bicycle 416
Additional Conveyance Loan for Award Staff (ASHPL) 417
Motor Car Loan for Clerical employees (EMCL) 417
Loan to employees under Corpmobile Scheme 418
Housing Loan Scheme for Award Staff (SHL) 419
Staff Supplementary Housing Loan Scheme (SSHL) 420
Enhanced Staff Housing Loan Scheme-New (ESHL-N) 421
New Staff Housing Loan Scheme (NSHL) 422
Corphome Scheme in lieu of SSHL 429
Corphome Scheme for acquiring second house/flat 430
Corphome Loan for extension of the house 430
Corphome Loan alongwith SHL 430
CHAPTER SUBJECT PAGE No.
Loans against term deposits of the Bank 431
Cheque Discounting Facility 432
Corp Vidya Scheme 432
Staff Provident Fund - Temporary Withdrawal 438
Staff Provident Fund - Non-repayable Withdrawal 439
VI STAFF WELFARE SCHEMES 440 - 482
Scholarship to Meritorious children of employees 440
Incentive for excellence in education 444
Financial relief to PH/MR children of employees 446
Educational grant to children of deceased employees 448
Medical Check up 449
Hospitalisation expenses to PTS 454
Pre-natal Medical expenses 455
Hospitalisation relief 456
Death Relief 459
Subsidised Canteen Subsidy 460
Holiday Home 462
Encouragement in the fields of Sports, Arts & Culture 466
Honouring Senior Ex-servicemen employees 468
Hospitalisation expenses of retirees
- For major opertions 470
- Other medical expenses 472
Financial Relief to the surviving spouse
of pre-1986 retirees 474
Group Term Insurance Scheme 475
Scheme for Physically handicapped and visually
impaired employees 477
Savings Linked Insurance Scheme 478
Reimbursement of Cost of Spectacles 480
Holiday Home Facility to Retirees 481
VII SOCIAL SECURITY SCHEMES 483 - 535
Corporation Bank Employees’ Gratuity
Funds Regulations 483
Corporation Bank Staff Provident Fund Regulations 492
Scheme for payment of ex-gratia amount
and compassionate appointment 510
Insurance Cover for employees who have
availed Staff Housing Loans 522
Corporation Bank Employees’ Voluntary
Contribution Scheme for Death Relief 527
Personal Accident Insurance to the Employees
of the Bank. 530
CHAPTER SUBJECT PAGE No.
Compensation to the family of the persons
killed in Bank Robberies / Terrorist Incidents 534
VIII SCHEMES OF RECOGNITION 536 - 563
Support to Self Development Scheme 536
Facilities/concessions for learning Hindi 544
Incentives for promoting small family 551
Scheme for honouring senior employees on their
completing 25 years of unblemished service 552
Scheme for promotion of outstanding sportsmen /
sportswomen employees of the Bank 553
Training 563
IX OTHER SERVICE CONDITIONS 564 - 597
Guidelines on Transfer 564
Special Leave/ Special Casual Leave 566
Grievances Redressal Committee 569
Rotation of Duties at Branches 571
Monthly Staff meeting at Branches/Offices 573
Customer Service Committee 574
Constitution of Official Language Implementation
Committee at Branches/Offices 576
Chief Liaison Officer for SC/ST employees 578
Chief Liaison Officer for OBC/Minority
Community Employees 578
Felicitation on retirement 579
Sports Council of the Bank 579
Bringing External Pressure on Service Conditions 580
Gist of facilities/ relief available to Award staff on
retirement/ available to spouse/ legal heirs of award
staff who die in harness 581
Preventive Vigilance Leave 583
Officiating Allowance to SWO & Special Assistants 583
Identity cards to Employees 584
Check-off facility 585
Bonus 586
Presentation and Enforcement of Right to
Gender Quality of Working women 590
Cash Remittance orders on Escorts,
Quantum of cash and mode of transport 593
Terminal benefits to Workmen Employees’ 596
X MISCELLANEOUS 598 - 602
Recognition to Corporation Bank Employees’ Union 598
CBEU Welfare Fund 601
Notice Board to CBEU at Branches / Offices 603
 PART - I

AWARDS
&
BIPARTITE SETTLEMENTS
 CHAPTER - I
SCALE OF PAY
Scales of Pay
4/27-04-2010
(a) In supersession of Clause 4 of Bipartite Settlement dated 2nd June 2005, with
effect from 1st November, 2007 the scales of pay shall be as under:
Clerical Staff
6200 400 7400 500 8900 600 11300 700
3 3 4 7
16200 1300 17500 800 18300 (20 years)
1 1
Subordinate Staff
5500 200 6300 250 7550 300 8750 350
4 5 4 3
9800 400 11000 (20 years)
3
(b) With effect from 1st May 2010, the scales of pay shall be as under:
Clerical Staff
7200 400 8400 500 9900 600 12300 700
3 3 4 7
17200 1300 18500 800 19300 (20 years)
1 1
Subordinate Staff
5850 200 6650 250 7900 300 9100 350
4 5 4 3
10150 400 11350 (20 years)
3
Note:
(a) Fitment in the new scales of pay shall be on a stage to stage basis.
(b) There shall be no change in the dates of annual increments because of the fitment.

1
 INCREMENTS
INCREMENT, STAGNATION INCREMENT, INCREMENTS FOR EDUCATIONAL
QUALIFICATIONS, GRANTING, STOPPAGE & GENERAL WITHHOLDING OF
INCREMENT
INCREMENT
2/08-09-1983
In supersession of Clause 4.11 of the Settlement dated 19-10-1966 between IBA and
AIBEA, parties agree that the increment specified in the various scales of pay applicable
to workmen shall accrue on an annual basis and shall be given effect to on the first
day of the month in which it falls due.
However, where for any reason whatsoever the date of increment has to be postponed
under the service conditions, such postponement will be notionally made in the actual
date on which the increment accrues. If on such postponement either in the first
instance or on a cumulative basis such date of accrual of increment shifts to any
subsequent calendar month, the increment will be released on the first day of that
subsequent month.
STAGNATION INCREMENTS
5/27-04-2010
In partial modification of Clause 5 of Bipartite Settlement dated 2nd June 2005 both
clerical and subordinate staff (including permanent part-time employees on scale
wages) shall be eligible for seven stagnation increments w.e.f. 1st November 2007 at
the rate and frequency as stated herein under:
The clerical and subordinate staff including permanent part-time employees on scale
wages on reaching the maximum in their respective scales of pay, shall draw seven
stagnation increments at the rate of 800/- and 400/- (pro rata in respect of part-
time employees) each due under this settlement, and at frequencies of 3 years and
2 years respectively, from the dates of reaching the maximum of their scales as
aforesaid, except that the seventh stagnation increment in clerical cadre will be
released after two years of receiving the sixth stagnation increment.
Provided that a clerical/subordinate staff (including permanent part-time employees
on scale wages) already in receipt of six stagnation increments shall be eligible for
the seventh stagnation increment on 1st November 2007 or two years after receiving
the sixth stagnation increment, whichever is later.

2
5(d)/27-03-2000

In supersession of Clause 1 (ii) (b) of Bipartite Settlement dated 8th September, 1983
read with ‘Note’ to Clause 4B of Bipartite Settlement dated 10th April, 1989,

(i) Refusal to accept promotion at any stage or reversion within a year of promotion,
wherever permissible under Bank’s rules will not dis-entitle an employee from
getting stagnation increment/s.

(ii) An employee shall not be eligible for stagnation increment/s, if he, after accepting
promotion seeks, and is granted, reversion after one year from the date of
promotion.

DEFINITION OF ‘PAY’

6(i)/27-03-2000

Allowances hitherto termed as Special Allowance, Graduation Allowance, Professional

Qualification Allowance and Officiating Allowance which are in the nature of ‘pay’,
attracting Dearness Allowance and ranking for superannuation benefits shall
henceforth be termed as Special Pay, Graduation Pay, Professional Qualification
Pay and Officiating Pay, respectively.

6/27-04-2010

In reiteration of Clause 6 of the Bipartite Settlement dated 2nd June 2005, ‘Pay’ for the
purpose of D.A., HRA and superannuation benefits shall mean Basic Pay, Stagnation
increments, Special Pay, Graduation Pay, Professional Qualification Pay and
Officiating Pay, if any.

Note:

The increment component of Fixed Personal Pay as given in column 2 of Schedule

IV shall rank for superannuation benefits.

INCREMENTS FOR EDUCATIONAL QUALIFICATIONS

23/12-10-1970
(A) Graduates and/or holders of
National Diploma in Commerce 2 increments
(B) Part I of CAIB/CAIIB Examinations 1 increment in the scale

(C) Part II of CAIB/CAIIB Examinations 2 increments

3
IX(a)/08-11-1973

In the case of a member of non subordinate staff, the acquisition of Diploma in Rural
Service of the National Council for Rural Higher Education is recognised as equivalent
to graduation for all purposes under the settlements.

4/29-06-1990

On and from 1st July 1990 Clause 10 of the Fifth Bi-partite Settlement shall stand
deleted and employees who are in receipt of graduation allowance in terms of this
clause shall be granted two additional increments in lieu of the allowance without
affecting their future date of annual increment. Graduate employees recruited or
promoted to clerical cadre or non graduates who acquire such qualification on or
after 1st July 1990 shall also be granted two additional increments, as per the provision
existing prior to the Fifth Bi-partite Settlement.

Consequently, with effect from 1st July 1990 Note (a) to Schedule II(A) of the Fifth
Bi-partite Settlement on ‘Special Allowances’ for Clerical Staff, shall stand deleted.
While the provisions under Note (b) shall remain operative, the serial number thereof
i.e. (b) shall stand deleted.

11/10-04-1989

For the sake of clarity and to distinguish it from Graduation Allowance, the increments/
educational allowance now paid to the clerical staff for passing Part-I or both parts of
CAIIB/CAIB shall be called Professional Qualification Increments or Allowance as
the case may be.

GRADUATION PAY

34/02-06-2005

Non-Subordinate employee who acquire graduation / post graduation qualification

from Universities / Open Universities which are recognized by the University Grants
Commission will be considered as having acquired graduate qualification and would
be eligible for being granted the two additional increments for graduation or graduation
pay, as the case may be, as provided hereinabove subject however to the following
conditions:

i) Employees who registered under the Graduation / Post-Graduation courses

of Open University have either passed the foundation course or attended the
Bachelor’s Preparatory Programme; and

4
 ii) They pursue the same course and take the same examination as the formal
stream students.

This provision shall take effect from the date of the Settlement.

11 (xvi) 27.04.2010

Graduation Pay/Additional Increment for Direct Post Graduation:

In partial modification of Clause 34 of Bipartite Settlement dated 2nd June 2005,

while non-subordinate employees who acquire graduation qualification from
Universities/Open Universities which are recognized by University Grants Commission
will be eligible for being granted two additional increments for graduation / graduation
pay as the case may be, those who acquire post graduate qualification without being
a graduate will be granted two additional increments for graduation / graduation pay
as the case may be subject to the following conditions:

(i) Employees who are registered under the Post Graduation courses of Open
University have either passed the foundation / entrance course or attended the
Bachelor’s preparatory Programme ; and

(ii) They pursue the same course and take the same examination as the formal
stream students.

These provisions shall have effect from the date of this settlement.

CLARIFICATIONS

(Refer AIBEA Circular letter no. 25/CLTR-48/2005 37 dated 19th July, 2005)

1. PQP / Graduation Pay

Ref: Clause 11 (2) of 8th Bipartite Settlement dated 2nd June, 2005

a) A clerk on 19th Stage passing Graduation or CAIIB Part II will be granted

the 20th Stage increment immediately along with first instalment of PQP/
Graduation Pay of Rs. 180/- and Balance PQP - 4 instalments will be
released in one year interval thereafter.

Example:

In November, 2002, a clerk in 19th Stage passed Graduation or CAIIB Part II.
He will be immediately given one increment (20th Stage) and PQP-1 from
November, 2002 and balance 4 PQP in one year interval in November, 2003,
November, 2004, November, 2005 and November, 2006.

5
 b) A clerk on 20th Stage in November, 2002 passed Graduation or CAIIB.
He will be given PQP-1 from the date of passing and remaining 4 PQP
from one year thereafter in the next 4 years.

Example:

A clerk who reached 20th Stage in say November, 2002, passed Graduation/
CAIIB in November, 2002. He will be immediately given PQP-1 from November,
2002 and balance 4 PQP in one year interval in November, 2003, November,
2004, November, 2005 and November, 2006.

c) A clerk has already reached 20th stage and later acquires qualification
like Graduation/JAIIB, he will be given in PQP-1 immediately on passing
such graduation /JAIIB and balance 4 PQP in one year interval in
November, 2003, November, 2004, November, 2005 and November, 2006.

Example:

A clerk (matriculate) who reached 20th Stage say in November, 2002, passed
Graduation/CAIIB in December, 2002. He will be Immediately given PQP-1
from December, 2002 and balance 4 PQP in one year interval in December,
2003, December, 2004, December, 2005 and December, 2006.

2. ADDITIONAL TWO INCREMENTS OR GRADUATION PAY ON PASSING

DIRECT GRADUATION / POST GRADUATION

Ref: Clause 34 of 8th Bipartite Settlement dated 2nd June, 2005.

a) From 02-06-2002, a Clerk who passes / acquires direct Graduation/Post

Graduation from universities / Open Universities which are recognized by
the UGC will be granted the 2 additional increments or Graduation Pay is
they have reached 20th stage of the pay scale subject to having passed
the foundation course or attended the Bachelor’s Preparatory Programme.

b) Cases prior to 02-06-2002, Clarifications of IBA vide their Circular no.

534 dt. 07-06-2005

A provision for release of increment for graduation or graduation pay to

non-subordinate employees who acquire graduation/post-graduation
qualifications from Universities/Open Universities has been incorporated
in Clause 34 of the Settlement. Although this provision takes effect from
the date of Settlement, it has been agreed that cases of all non-subordinate
employees who have acquired graduation/post-graduation qualification

6
 from Universities / Open Universities recognised by the University Grants
Commission prior to the date of settlement may also be considered for
release of increment for graduation or graduation pay, subject to the
conditions of having passed the foundation course or attended the
Bachelor’s Preparatory Programme.

c) It has been agreed in principle to extend this benefit of 2 increments for

those who have in the past passed direct graduation/post graduation
without the above conditions.

GRANTING, STOPPAGE AND GENERAL WITHHOLDING OF INCREMENTS

85/S.A. AND 5.122/D.A.

Increments should normally be given and stoppage of increments by managements

should be only by way of punishment for proved misconduct or gross inefficiency.
As a working rule, if in the previous year there are three adverse remarks in the
service register of the workman entered against him as a result of the management’s
enquiry into his conduct and after consideration of any explanation given by him, it
may be taken as a prima facie case for stopping the increment at the next stage and
for the next year. If an employee’s increment is to be withheld it should only be done
after a proper charge sheet has been framed against him and he has been given
adequate opportunity to defend himself. The order in writing withholding the increment
should also mention whether it will have the effect of postponing future increments.

86/S.A. 183/LAT/5.122/D.A.

Annual increments for any particular year may be stopped at the discretion of the
Bank if the ratio of its gross profits to the working funds during the previous year is
less than 75% of the average of similar ratios for the four years immediately preceding
that previous year provided however:-

(1) No discrimination is made amongst the employees of the bank in the matter of
withholding the annual increment and that withholding of the increment applies
to the entire staff of the bank consisting of all its officers and the clerical staff
(subordinate staff being excluded)

(2) There shall not be any withholding of increments more than once in any
consecutive period of four years.

122/S.A.

It is desirable to make clear that the scale of pay and dearness allowance and special

7
allowance which we are laying down in our award represent only the minimum to
which a workman will be entitled. It is not our intention to fetter the discretion or
power of any bank to give its workmen or any of them higher salaries or wages or
higher dearness allowance or additional allowance or benefits not mentioned in our
award. Similarly even with reference to increments, the banks will have the liberty to
give more than one increment in any particular year.

ADDITIONAL INCREMENT FOR EMPLOYEES IN SERVICE AS ON 01-11-1993

10/29-10-1993

(i) This settlement is in supersession of all previous Industry level bipartite

settlements on computerisation and mechanisation referred to in para(a)
of the preamble of this settlement but will not affect any subsistent bank
level agreements/settlements/understandings entered on computerisation
and mechanisation between the concerned banks and their bank level
unions unless specifically agreed between the concerned banks and bank
level unions.

(ii) The banks and the unions which have entered into bank level agreements/
settlements/understandings on computerisation and mechanisation and are
also party to this settlement may computerise/mechanise as per the
provisions of this Settlement by terminating jointly the bank level agreement/
settlement/understanding. In such cases all the monetary benefits available
under the bank level settlements shall be substituted by the benefits available
under this settlement with effect from 1st November, 1993. Under no
circumstances dual monetary benefits shall be extended to the employees
of such banks.

Note: It is clarified that the following benefits available under this settlement
shall be available to employees in banks which terminate the bank level
settlements and adopt the industry level settlement with effect from 1st
November, 1993 notwithstanding anything contrary to it provided in the
bank level settlement.

INCREMENT

XIV 29-10-1993

All workmen employees who are in the bank’s permanent service and permanent
part-time employees drawing scale wages as on 1st November 1993 will get one

8
advance increment in the scale of pay with all consequential benefits, e.g. DA, HRA,
CCA, PF, Gratuity, Pension, etc., in terms of the Bipartite Settlements. Employees
who are on probation on 1st November, 1993 will get one advance increment one
year after confirmation.

There shall be no change in the date of annual increment because of the advance
increment. Annual increment will fall due on the normal anniversary date of increment.

An employee who is at the maximum of the scale or who is in receipt of stagnation

increment(s) as on 1st November, 1993 will draw a Fixed Personal Allowance from
1st November, 1993 which is equivalent to an amount of one increment of 120/- for
clerks and 50/- for subordinate staff plus dearness allowance payable thereon as
on 1st November, 1993 plus house rent allowance, at the rates and ceilings as
applicable in terms of Bipartite Settlement dated 29th June, 1990 and 13th October,
1990 in case of ‘A’ class banks and ‘B’ class banks respectively. The increment
shall also rank for super annuation benefits.

FIXED PERSONAL PAY

11/14-02-1995

In partial modification to Clause XIV of Bipartite Settlement dated 29th October, 1993
Fixed Personal pay shall be released one year after reaching maximum of the scale
in respect of those employees who were in service of the bank as on 1-11-1993 and
have drawn one advance increment on account of industry level settlement on
Computerisation.

13/27-03-2000

The nomenclature of Fixed Personal Allowance shall be henceforth termed as Fixed

Personal Pay. There shall be no shifting in the date/s of release of Graduation Pay/
Professional Qualification Pay on account of payment of Fixed Personal Pay in the
same year.

13/27-04-2010

In partial modification of clause XIV of the Bipartite Settlement dated 29th October,
1993 and clause 13 of Bipartite Settlement dated 27th March, 2000, the Fixed Personal
Pay shall be revised with effect from 1st November, 2007 as per schedule IV.

9
 Schedule IV
27-04-2010
FIXED PERSONAL PAY

Area of Posting Total FPP payable Total FPP payable Increment

where Bank’s where Bank’s component
accommodation accommodation of FPP
is not provided is provided
( ) ( ) ( )
1 2 3 4

CLERICAL STAFF
(i) Places with population of more
than 45 lakhs. 940 860 800

(ii) Places with population of more

than12 lakhs and above including
State of Goa 930 860 800

(iii) Places with population of 5 lakhs

and above, State Capitals and
Capitals of Union Territories and
other than places mentioned in
(i ) and (ii) above 920 860 800

(iv) Places with population below

5 lakhs not covered in (i), (ii)
and (iii) above. 915 860 800

SUBORDINATE STAFF
(i) Places with population of more
than 45 lakhs. 470 430 400

(ii) Places with population of 12 lakhs

and above including State of Goa 465 430 400

(iii) Places with population of 5 lakhs

and above, State Capitals of Union
Territories and other than places
mentioned in (i) and (ii) above 460 430 400

(iv) Places with population below 5 lakhs

not covered in (i), (ii) and (iii) above 460 430 400

10
 CHAPTER - II
SPECIAL PAY
1. GENERAL RULES
5.5/19-10-1966
Where a workman falls within more than one category, he shall be entitled to receive
the special allowance at the highest rate applicable to him provided however, that
special allowance(s) for educational qualifications, if any, shall be payable in addition
to any other special allowance to which he may be entitled.
5.6/19-10-1966
The special allowances prescribed are intended to compensate a workman for
performance or discharge of certain additional duties and function requiring greater
skill or responsibility, over and above the routine duties and functions of a workman
in the same cadre. In order to be entitled to a special allowance such additional
duties and functions should constitute the normal part of the duties and functions
performed or discharged by a workman. Special allowances are not intended to be
paid for casual or occasional performances or discharge of such duties/functions. It
would, however, not be necessary that a workman should continue to perform such
duties or discharge such functions, whole time, in order to be entitled to such allowance.
5.7/19-10-1966
The additional duties and functions involving greater skill or responsibility, which would
entitle a workman to special allowance are more particularly enumerated for each
category of workmen. Special allowances will be payable for all or any of the duties
listed except where it is specially provided therein that for a particular category the
additional duties entitling him to a special allowance, include or involve all the duties
listed under that category.
5.8/19-10-1966
A workman will be entitled to a special allowance if he is required to perform duty/
duties and/or undertake the responsibilities listed against the category, irrespective
of his designation/nomenclature or any general authority vested in him.
5.9/19-10-1966
A workman will be entitled to a special allowance only so long as he is in charge of
such work or the performance of such duties which attract such allowance. Whether
a workman can be asked to cease to do such work or discharge such duties and

11
consequently cease to draw such allowance will depend upon the terms of his
employment. For instance a workman who is employed permanently as a Head
Clerk or Stenographer cannot be deprived of his special allowance by asking him to
work as an ordinary clerk or asking him not to work as Head Clerk or Stenographer.
If however, a recipient of special allowance wants to give up the work or duties which
entitle him to the special allowance, he shall if his request is granted, cease to draw
the special allowance.
5.10/19-10-1966
The special allowance would continue to be drawn by a permanent incumbent while
on leave. A workman who is asked to work temporarily in a post carrying a special
allowance would be entitled to such a special allowance prorata for such period during
which he occupies that post.
5.11/19-10-1966
Wherever a bank requires a workman to work in post carrying a special allowance it
will normally be done by an order in writing.
5.12/19-10-1966
Bank will, as early as possible use, in all their records, correspondence etc., the
nomenclature used hereto for the appropriate duties.
5.13/19-10-1966
In specifying the duties it is not the intention that in each office/branch post should be
created in each category for which special allowance has been agreed to.
5.14(ii)19-10-1966
The duties and responsibilities now agreed to for special assistants shall not be
regarded as supervisory duties and the employees required to perform these duties
and discharge these responsibilities shall be regarded as ‘Workmen’ for all purposes
irrespective of their emoluments, designations or nomenclatures in different banks.
20.2/19-10-1966
An employee with combined designations will be entitled to the appropriate special
allowance if an allowance is provided for in this settlement for either of his designations.
VI/17-09-1984
Without prejudice to Clause 5.14(ii) of the First Bi-partite Settlement, dated 19th
October, 1966, with effect from the date of this Settlement, in the matter of filling up
posts of Special Assistants in the Clerical Cadre, suitability be determined in member

12
banks having the post of Special Assistants by interview of senior employees with
weightage for qualifications. Where such suitability is assessed only on the basis of
interview, there shall be a period of probation for 6 months. Where the written test
system already exists in any bank on the date of Settlement the same may continue.
XVII/29-10-1993
For computer related allowances carrying positions selection will be made from
amongst the clerical cadre staff as per the existing or future policy/settlements in
different banks which shall include passing of an aptitude test. The Management will
provide training facilities as deemed necessary.
XVIII/29-10-1993
It is clarified that the Computer Operators may be assigned any other routine duties
of their cadre as already provided in subsisting bipartite settlements.
XIX/29-10-1993
Where a female operator who is in the family way desires to discontinue working on
Computer during the period of her pregnancy, she will be exempted at her written
request from operating the Computer. The special allowance shall not be paid to her
for the period during which she is on duty but exempted from operating the Computer,
but shall be paid during the period of her leave of any kind subject to her acceptance
to perform duties as Computer Operator on resumption.
SPECIAL PAY
11/27-04-2010
(i) In supersession of Clause 11 of the Bipartite Settlement dated 2nd June 2005,
with effect from 1st November 2007 and upto 30th April, 2010, the Special Pay
payable to the clerical staff and subordinate staff in banks other than State
Bank of India shall be as mentioned under Part A(a), (b), (c) and (d) in Schedule
II to this Settlement.
(ii) With effect from 1st May, 2010, posts attracting Special Pay in Clerical cadre as
mentioned in Part A (a) of Schedule II to this agreement shall stand modified
and members of clerical staff performing the said duties shall be treated as those
assigned with duties of Single Window Operator ‘B’.
With effect from 1st May, 2010, posts attracting Special Pay in Subordinate
cadre as mentioned in Part A (c) of Schedule II to this agreement shall stand
modified and members of Subordinate Staff performing the said duties shall be
assigned with the duties of Cash Peon/Liftman, Cyclostyle Machine operator /
Relieving Liftman according to their suitability.

13
(iii) With effect from 1st May, 2010, posts attracting Special Pay and Special Pay
thereon shall be as provided in Part B of Schedule II to this Settlement.
(iv) With effect from 1st May, 2010, Clerical staff who are drawing Special Pay for
posts mentioned in Part A(a) in Schedule II to this Settlement as on 30th April,
2010 shall continue to discharge the Special Pay duties as hitherto and as
provided in Schedule III of Bipartite Settlement dated 2nd June, 2005. In addition,
upon their re-designation as Single Window Operator ‘B’ w.e.f. 1st May 2010 as
provided in Clause (2) above, they shall also be liable to discharge the duties of
Single Window Operator ‘B’.
W.e.f. 1st May 2010, Subordinate staff who are drawing Special Pay for posts
mentioned in Part A (c) in Schedule II to this Settlement as on 30th April 2010
shall continue to discharge the Special Pay duties as hither to and as provided
in Schedule III of Bipartite Settlement dated 2nd June 2005. In addition, w.e.f.
1st May 2010, they shall also be liable to discharge the duties of Cash Peon/
Liftman/Relieving Liftman/Cyclostyle Machine Operator according to their
suitability.
(v) (a) With effect from 1st May 2010, all existing clerical staff who are not drawing
any Special Pay as on 30th April 2010 shall be paid a Special Pay of
Rs. 1000/- per month which shall be merged in their Basic Pay with effect
from that date. They shall be designated as Single Window Operator ‘A’
and shall be liable to discharge the duties as provided in Part C in
Schedule II to this Settlement.
(b) With effect from 1st May 2010, all existing Subordinate staff who are not
drawing any Special Pay as on 30th April, 2010, shall be paid a Special
pay of 350/- per month and they shall be liable to discharge the duties
as provided in Part C in Schedule II to this Settlement.
(vi) With effect from 1st May 2010, all Clerical and Subordinate Staff joining the
Banks on and from 1st May 2010 shall be liable to discharge the duties as provided
in Part C in Schedule II to this Settlement. Duties which require special skill
such as Stenographer, Telephone Operator, Liftman, etc. shall be assigned
only to those who possess the required skills.
(vii) With effect from 1st May 2010, clerical staff recruited in the Banks on and from
1st May 2010 may be required to perform, in addition to the duties provided
herein under Part C of Schedule II, specialized duties like Stenographer,
Telephone Operator etc. if their terms of recruitment so provides.
(viii) With effect from 1st May 2010, for all the existing Clerical staff as on 30th April
2010 and continuing in service on 1st May 2010, out of the Special Pay payable

14
 to them, an amount of 1,000/- shall be merged into Basic Pay and balance
amount shall be payable as Special Pay. Basic Pay shall stand increased
accordingly on and from 1st May 2010. Special Pay payable thereafter shall be
as provided in Part B of Schedule II to this Settlement.
(ix) With effect from 1st May 2010, for all the existing Subordinate Staff as on
30th April 2010 and continuing in service on 1st May 2010, out of the Special Pay
payable to them, an amount of 350/- shall be merged into Basic Pay and
balance amount shall be payable as Special Pay. Basic Pay shall stand
increased accordingly on and from 1st May 2010. Special Pay payable thereafter
shall be as provided in Part B of Schedule II to this Settlement.
(x) With effect from 1st May 2010, the duties and responsibilities of Clerical and
Subordinate Staff other than in State Bank of India shall be as set out in Schedule
III to this Settlement.
(xi) In all other aspects, the general rules and provisions contained in Chapter V of
the Bipartite Settlement dated 19th October 1966 relating to special pay carrying
posts, as modified from time-to-time, shall continue to apply.
(xii) With effect from 1 st November 2007, Graduation Pay and Professional
Qualification Pay payable to the clerical staff in banks shall be as mentioned in
Part D of Schedule II to this Settlement.
(xiii) The special pay, graduation pay and professional qualification pay as mentioned
in Schedule II shall rank for superannuation benefits.
(xiv) The rates of Special Pay and the duties of Special Pay carrying posts for workmen
staff in State Bank of India may be reviewed and settled at the bank
level. While deciding the rates of Special Pay, the merger of 1,000/- and
350/- in the Basic Pay in respect of clerical and subordinate staff respectively,
w.e.f. 1st May 2010 shall be implemented as in the case of other banks.
(xv) In reiteration of sub-clause (2) of clause 11 of the Bipartite Settlement dated
2nd June 2005, a member of the non-subordinate cadre acquiring a Graduate /
National Diploma in Commerce or a JAIIB/CAIIB (either or both parts)
qualification/s at a time when he/she does not have the requisite number of
increments in the scale to be earned as advance increments shall in the first
instance be released increments for such qualification/s acquired to the extent
available in the scale and in lieu of the remaining increments(s) not available
for being so released as advance increments be granted / released the first
instalment of Graduation Pay or PQP, as the case may be. Release of
subsequent instalments of Graduation Pay or PQP shall be with reference to
the date of release of Graduation Pay or PQP under this clause.

15
 Provided that in the case of an employee acquiring such qualifications after
reaching the maximum of the scale of pay, he shall be granted from the date of
acquiring such qualification the first instalment of Graduation Pay or PQP, as
the case may be and the release of subsequent instalments of Graduation Pay
or PQP shall be with reference to the date of release of Graduation Pay or PQP
under this clause.
Provided further that in a case where the employee as on 27th April 2010, has
already acquired any of the said qualifications and has not earned any increment
or Graduation Pay / Professional Qualification Pay on account of acquiring such
qualification, he may be, with effect from 1st November 2007 or the date of
acquiring any of the said qualifications, whichever is later, released increment/
s or Graduation Pay / PQP as provided herein above.
(xvi) Graduation Pay / Additional increment for Direct Post Graduation:
In partial modification of Clause 34 of Bipartite Settlement dated 2nd June 2005,
while non-subordinate employees who acquire graduation qualification from
Universities / Open Universities which are recognized by University Grants
Commission will be eligible for being granted two additional increments for
graduation / graduation pay as the cases may be, those who acquire post
graduate qualification without being a graduate will be granted two additional
increments for graduation / graduation pay as the case may be subject to the
following conditions:
(i) Employees who are registered under the Post Graduation courses of Open
University have either passed the foundation / entrance course or attended
the Bachelor’s preparatory Programme ; and
(ii) They pursue the same course and take the same examination as the
formal stream students.
These provisions shall have effect from the date of this settlement.

16
 Schedule II
SPECIAL PAY 27-04-2010
PART A (a)
For Clerical Staff (from 1.11.2007 upto 30.4.2010)
Sl.No. Post Special Pay ( )
1. Relieving Telephone Operator 110
2. Telephone Opeerator 210
3. Audit Clerk - Category “A” 360
4. Audit Clerk - Category “B” 670
5. Comptist 420
6. Agricultural Assistant 510
7. Telex Operator 530
8. Punch Card Operator 580
9. Assistant Head Cashier Units of 4 clerks and below 450
10. Assistant Head Cashier Units of 5 Clerk & above 650
11. Teller - Category A 690
12. Cashier in Charge of Cash in Pay Offices 690
13. Head Cashier - Cat. A - Units of 4 clerks & below 690
14. Head Cashier - Cat. B - Units of 5 clerks & above 910
15. Head Cashier - Cat. B - Units of 4 clerks & below 820
16. Head Cashier - Cat. B - Units of 5 clerks & below 1020
17. Encoder Operator 740
18. Data Entry Operator 860
19. Accounting Machine Operator 910
20. IBM / CT Machine Operator 1020
21. Stenographer 1020
22. Head Clerk 1020
23. ALPM Operator 1060
24. Teller 1150
25. Head Cashier Category C 1150
26. Computer Operator - A 1250
27. Head Cashier Category I 1270
Note: W.e.f. 1st May, 2010, all the above posts attracting Special Pay stand modified
and re-designated as Single Window Operator ‘B’.

17
 PART A (b)
Sr.No. Post Special Pay ( )
1. Computer Operator - B (with passing powers) 1500
2. Head Cashier Category II 1780
3. Special Assistant 2180

PART A (c)
For Subordinate Staff (from 1.11.2007 upto 30.04.2010)
Sr.No. Post Special Pay ( )
1. Relieving Liftman 210
2. Cyclostyle Operator 280

Note: W.e.f. 1st May, 2010, the above posts shall stand modified and re-designated as
Cash Peon-cum Liftman and Cash peon-cum-Cyclostyle Machine operator.

PART A (d)
Sr.No. Post Special Pay ( )
1. Cash Peon 350
2. Watchman 350
3. Liftman 350
4. Armed Guard 590
5. Bill Collector 590
6. Daftary 690
7. Head Peon 800
8. Head Messenger in IOB 1350
9. Electrician 1600
10. A/C Plant Operator 1600
11. Driver 1800

18
 SPECIAL PAY
PART B
For Clerical Staff (w.e.f. 1.5.2010)

Sr. Post Special Pay To be merged Special Pay

No. (Rs.) with Basic Pay payable from
on and from 1-5-2010
1-5-2010 ( ) ( )
1. Single Window Operator ‘B’ 1500 1000 500
2. Head Cashier - II 1780 1000 780
3. Special Assistant 2180 1000 1180

For Subordinate Staff (w.e.f. 1.5.2010)

Sr. Post Special Pay To be merged Special Pay

No. ( ) with Basic Pay payable from
on and from 1-5-2010
1-5-2010 ( ) ( )
1. Cash Peon 350 350 0
2. Watchman 350 350 0
3. Liftman 350 350 0
4. Armed Guard 590 350 240
5. Bill Collector 590 350 240
6. Daftary 690 350 340
7. Head Peon 800 350 450
8. Electrician 1600 350 1250
9. AC Plant Operator 1600 350 1250
10. Driver 1800 350 1450
11. Head Messenger in IOB 1350 350 1000

19
 PART C

[Refer to Clause 11 (v) (a) and (b) and 11 (vi) of this Settlement]

(a) Duties of Clerical Staff w.e.f. 1st May, 2010

All members of the clerical staff who do not get aany special pay as on 30th April
2010 on regular basis shall be designated as Single WIndow Operator ‘A’. The following
duties shall inter alia form part of their normall duties:

(i) Acknowledgements of inward mail received.

(ii) Receipt of cheques, drafts, dividend warrants, pay orders and other like
instruments other than bills and giving acknowledgements in the counterfoil.

(iii) Delivery of cheque books subject to authorisation by competent authority.

(iv) Issue of cash receipts.

(v) Issue of E.S.I. stamps wherever applicable or many become applicable.

(vi) Recounting of currency notes by cash department staff.

(vii) Ensuring the proper contents in covers and envelopes including registered ones
before despatch.

All clerks shall also perform all duties and functions of their cadre, either online or
manually, which does not involve any passing or supervisory function of an officer of
the bank. He will, wherever required, function as a single window operator where he
will also receive and pay cash.

In addition, his duties will include -

a. Passing and cash payment of all cheques/withdrawal forms/bankers’ cheques/
gift cheques, etc. upto and including 10,000/-
b. Passing independently clearing and transfer cheques, vouchers, etc. (whether
credits or debits) upto and including 15,000/-
c. Receipts of cash and issuance of pre-signed drafts / gift cheques / travellers’
cheques / pay orders / bank orders, etc. upto and including 15,000/-
(b) Duties of Subordinate Staff w.e.f. 1st May, 2010
All the normal and routine duties of the subordinate staff cadre and for performance
of which no speecial pay shall be payable. In addition they shall also be required to
perform the following duties.

20
1) To take money orders, to buy stamps etc., which involves carrying of cash not
exceeding 5,000/- and to carry insured letters, etc. to post office
2) To stitch currency note bundles
3) To stitch and seal parcels and packets containing currency notes ;
4) To transit cash from the bank to an office outside or vice versa, if unaccompanied
by a watchman / Armed Gurad.
PART D

GRADUATION PAY/PROFESSIONAL QUALIFICATION PAY

For those workmen who hereafter reach or have already reached 20th stage of the
scale and have got increments in consideration of educational qualification(s),
Graduation Pay/Professional Qualification Pay shall be payable as under:
1. Those who are graduates and/or NDC -
250/- p.m. after they complete 1 year
490/- p.m. after they complete 2 years

2. Those who have passed JAIIB or Part I of CAIB/CAIIB -

250/- p.m. after they complete 1 year

3. Those who have passed JAIIB and CAIIB or Both Parts of CAIB/CAIIB-
250/- p.m. after they complete 1 year
490/- p.m. after they complete 2 years
740/- p.m. after they complete 3 years

4. Those who are graduates /NDC and have passed JAIIB or

Part I of CAIB/CAIIB -
250/- p.m. after they complete 1 year
490/- p.m. after they complete 2 years
740/- p.m. after they complete 3 years

5. Those who are graduates/NDC and have passed JAIIB or Both Parts of
CAIB/CAIIB -
250/- p.m. after they complete 1 year
490/- p.m. after they complete 2 years
740/- p.m. after they complete 3 years
990/- p.m. after they complete 4 years
1230/- p.m. after they complete 5 years
Note: Refer to Clause 11(xii) of this Settlement.

21
SPECIAL PAY DUTIES
Schedule III/27-4-2010
GENERAL
The special pay duties do not include the routine duties of the cadre (clerical/
subordinate) which a workman has to normally perform; but merely refer to those
special pay duties which if performed in addition to the routine duties will entitle a
workman to a special pay on the terms and conditions provided in Chapter V of the
First Bipartite Settlement as modified.
For removal of doubts it is clarified that the workman entrusted with duties attracting
special pay can be required to perform routine duties of his cadre and that the following
duties shall inter alia form part of the normal duties of the clerical cadre and for the
performance of these duties no special pay shall be payable.
i. Acknowledgements of inward mail received.
ii. Receipt of cheques, drafts, dividend warrants, pay orders and other like
instruments other than bills and giving acknowledgements in the counterfoil.
iii. Delivery of cheque books subject to authorisation by competent authority.
iv. Issue of cash receipts.
v. Issue of E.S.I. stamps wherever applicable or may become applicable.
vi. Recounting of currency notes by cash department staff.
vii. Ensuring the proper contents in covers and envelopes including registered
ones before despatch.
DUTIES OF SPECIAL PAY CARRYING POSTS IN CLERICAL CADRE
Schedule III/27-04-2010
Single Window Operator ‘B’
In addition to the duties of Single Window Operator ‘A’, their duties will include -
(a) Passing and cash payment of all cheques/withdrawal forms/bankers’ cheques
gift cheques, etc. upto and including 20,000/-
(b) Passing independently clearing and transfer cheques, vouchers, etc. (whether
credits or debits) upto and including 25,000/-
(c) Receipts of cash and issuance of pre-signed drafts/gift cheques/travellers’
cheques/pay orders / bank orders, etc. upto and including 25,000/-

22
Head Cashier II
Their duties involve:
Holding the bank’s cash, key and/or other valuables in safe custody jointly with an
officer and being accountable for them and being responsible for the running of the
cash department;
1. Opinion compilation ;
2. Verification of vernacular signature/endorsements ;
3. Countersigning cheques and / or drafts (on selves or correspondents), payment
orders, deposit receipts etc.,
4. Attending to Government Treasury work ;
5. Discharging/endorsing bills, cheques etc. ;
6. Being in charge of clearing and godown departments, etc. ;
7. Passing independently clearing and transfer cheques, vouchers, etc. (whether
credits or debits) upto and including 50,000/- and cash vouchers upto
50,000/- jointly with an authorized person.
Special Assistants
Special Assistants will be accountable and responsible for running of the department/
section under them and their duties will involve looking after and checking the work of
other clerk or clerks and substaff and will include:
1) Passing independently, manually or online, cash instruments upto 35,000/- and
clearing and transfer cheques vouchers etc., (whether credits or debits) upto
and including 1,50,000/-. Passing will include verification of signatures and
scrutiny as to the correctness of endorsements on and other particulars of such
instruments. There shall be no limits for verification of signatures, passing of
authenticated credit vouchers/entries and for verifying authenticated vouchers
in the ledgers, books, computer print-outs etc.
2) Accept, verify and post cash/ transfer/clearing cheques and other instruments,
as the case may be, in appropriate books of accounts/ledgers, either manually
or online, and give due acknowledgements.
3) Signing vouchers, cheques, drafts, mail transfers, pay orders, advices, bill
schedules, demand notices, statements, certificates etc.
4) Checking all vouchers, advices, statements, cheques, drafts etc., bills and books
of accounts including current savings and other ledgers, cash postal and revenue
stamps, franking machine balances, exchange, discount, brokerage calculations
and initialing by way of authenticating them for accuracy /correctness.

23
5) Checking, manually or online, current, savings and other accounts.
6) Checking the coding and decoding of telegrams (excluding check symbols or
cyphers).
7) Discharging, endorsing cheques, bills, etc.,
8) Perform, when required in a computerised set up, system control functions,
either jointly with an officer or independently, upon specific authorisation in this
regard;
9) Briefly explain, the features of Bank’s various products and services to customers,
to reply their queries and to refer interested customers to appropriate personnel;
10) Inspecting godown (only in banks where such work is already being done by
workmen).
For the purpose of efficient and effective functioning of the section or department the
special assistant shall ensure that all acts, things and steps necessary therefor are
taken by himself or by the clerks placed under him and shall ensure that, wherever
necessary :
a) Reminders are sent on time and followed up
b) Pass sheets/books are filled up and issued promptly
c) Deposits are renewed on due dates or reminders sent to the parties
d) Standing instructions are complied with
e) Bills are accepted and due dates diarised/advised and followed up
f) Interest, commissions and service charges are collected
g) Proceeds of bills are received or remitted promptly;
h) Confirmation of balance of accounts of the customers and its follow up..
i) All securities relating to the department/section of which the special assistant is
in charge are secured and/or kept in proper custody and properly handed to the
authorized person at the close of the day.
j) Balances promptly taken, tallied and reported and followed up and also returns
submitted;
k) Advices and/or duplicate advices/summaries are issued/responded promptly,
whenever called for;
l) Checking the proper recording of entries and all relevant particulars in regard to
accounts opened under due authorisation.

24
Notes:-
(i) In respect of the above special pay carrying posts in clerical cadre–
✦ Countersigning would mean signing in a manner whereby the primary
responsibility for ensuring that all the formalities are complete rests with
the other signatory.
✦ Checking/verifying would mean verifying that the instrument/material
checked is in order in all respects and also includes verification of signature
irrespective of the amount of the instrument and authenticating the same
on the instrument/material, initialing the relative entries in the respective
books of accounts, manually and/or on line.
✦ Passing includes verification of signatures and scrutiny as to the
correctness of endorsement on and other particulars of such instruments.
It will also include checking and authenticating the relative entries in the
respective books of accounts / ledgers / computer sheets and/or on line.
(ii) Henceforth, selection of staff for being entrusted with special pay carrying posts
shall be on the basis of their suitability for the specialised function, norms for
which shall be decided at the bank level.
DUTIES OF SPECIAL POST IN CLERICAL CADRE (ERSTWHILE POSTS)
REF. CLAUSE 11 (IV)/27-04-2010
Schedule III/02-06-2005
TELEPHONE OPERATORS:
Their work involves operating a Telephone PBX/EAPBX Board with a minimum of
three external lines on regular assignment.
AUDIT CLERKS - CATEGORY ‘A’:
Clerks in the Internal Audit Department whose work involves audit checking of
completed vouchers, entries, statements, balance, books of accounts, etc., with a
view to confirming their correctness and ascertaining whether office procedures and
rules are being correctly followed. The irregularities detected by them are reported to
the head of the Audit Department and/or his immediate superior, who is responsible
for taking necessary action.
Note: Checking of returns and statements from branches by other than Internal
Audit Department clerks would not be covered by ‘Audit checking’.

25
AUDIT CLERKS CATEGORY ‘B’ :
Audit clerks Category ‘B’ would be audit clerks attached to inspectors on tours and
will perform all routine checking functions and generally assist the inspector in the
functions including preparation and typing of reports.
Their duties include:
1. Assisting in the counting of cash balances, securities, etc., in the presence of
the inspecting officials;
2. Assisting the inspecting officers in checking the quantities and values of the
securities charged to the Bank;
3. Checking the balancing of various deposit account ledgers and verifying the
outstandings in inter-branch/sub-office(s) items-in-transit, suspense sundry
deposits, draft payable, term deposits and deposits at call accounts;
4. Checking items of stationery and marking off vouchers and acknowledgements
and assisting in the examination of vouchers other than those of inter-branch/
sub-office(s) items-in-transit, suspense charges, sundry deposits and stationery
accounts;
5. Assisting in preparing the audit returns/reports and typing and generally assisting
the inspecting officer in his functions as may be required.
TELLER - CATEGORY ‘B’:
Passing and cash payment of all cheques/withdrawal forms/travellers’ cheques/gift
cheques/demand drafts/pay orders/bank orders, etc., upto and including 10,000/-.
Receipt of cash and issuance of pre-signed drafts/ gift cheques/travellers’ cheques,
pay orders, bank orders, etc. both against cash and transfer upto and inclusive of
15,000/-.
STENOGRAPHERS:
Employees required to take dictation in shorthand and/or type letters, statements,
documents etc., and attend to secretarial work.
ASSISTANT HEAD CASHIER:
Their job is to assist the head cashier in looking after and checking the work of clerks
in the cash department.

26
HEAD CASHIER - I
Their duties involve:
(1) Holding the Bank’s cash, key and/or other valuables in safe custody jointly with
an officer and being accountable for them and being responsible for the running
of the cash department;
(2) Opinion compilation;
(3) Verification of vernacular signatures/endorsements;
(4) Countersigning cheques and/or drafts (on selves or correspondents), payment
orders, deposit receipts, etc.;
(5) Attending to Government Treasury work;
(6) In banks where the practice of discharging bills/hundies, for payment received
only, is in existence, it may be continued to be done by this category.
AGRICULTURAL ASSISTANT:
(i) To assist in the Bank’s lending and/or operations for agricultural development
and/or financial assistance to small enterprises (other than small scale industries)
such as vegetable/fruit vendors, artisans, self-employed persons including
beneficiaries under the Differential Rate of Interest scheme;
(ii) To distribute and collect application forms and assist the farmers/small borrowers
in filling up the forms;
(iii) To scrutinise application forms, title deeds, farm plans etc. to ensure that
application are complete in all respects and the particulars furnished in the form
are prima facie in order and for this purpose he may be required to visit the
farms for verification and for collection of relevant data.
(iv) To take necessary steps to ensure that the periodical details, as called for, are
received from the farmers/small borrowers in time;
(v) To keep in constant touch with farmers and to bring any adverse features to the
management’s notice.
(vi) To verify farms/all farms machinery/equipments, live stock/tractors, etc.;
(vii) To verify proper utilisation of the Bank’s loans or the progress in work in respect
of which loans are granted and to furnish reports on such verifications.

27
(viii) To make efforts and effect recoveries upto amounts not exceeding
Rs. 15,000/- from farmers/small borrowers from their place of work/residence,
subject to the necessary arrangements being made with regard to fidelity and
transit insurance and personal risk insurance by the Bank;
Note: Bank will evolve appropriate procedure about issuance of provisional receipts,
etc., of the cash not exceeding 15,000 collected on a day by an agricultural assistant
from the agricultural/small borrowers/depositors.
(ix) To assist in the deposit mobilisation efforts by encouraging farmers/small
borrowers to deposit their savings in the Bank;
(x) To collect information about the conditions of crops in the villages;
(xi) To collect necessary data for determination of village adoption for financing of
agriculture like farmers’ land holdings, availability of infrastructure facilities,
source of irrigation, use of tractors, pump sets, etc., credit facilities available in
village, recovery performance and the like;
(xii) To maintain liaison with Land Record and Registration Officers and other
Governmental/Developmental agencies for expeditious handling of the Bank’s
work.
Note: With a view to making optimum use of the technical skill of the agricultural/
development assistant, normally he may not be entrusted with usual clerical work,
but where necessary, he may be asked to do the clerical work.
COMPUTER OPERATOR ‘A’ (without passing powers):
Computer Operator will perform all duties and functions of clerical cadre, either online
or manually, which does not involve any passing or supervisory function of an officer
of the bank. He will, wherever and whenever required, function as a single window
operator where he will also receive and pay cash.
COMPUTER OPERATOR ‘B’ (with passing powers):
In addition to the duties of Computer Operator ‘A’, their duties will include -
(a) Passing and cash payment of all cheques/withdrawal forms/bankers’ cheques,
etc. upto and including 20,000/-.
(b) Passing independently clearing and transfer cheques, vouchers, etc. (whether
credits or debits) upto and including 25,000/-.

28
(c) Receipts of Cash and issuance of pre-signed drafts/gift cheques/travellers’
cheques/pay orders/bank orders, etc. upto and including 25,000/-.
Notes:
(i) In respect of the above special pay carrying posts in clerical cadre -
• Countersigning would mean signing in a manner whereby the primary
responsibility for ensuring that all the formalities are complete rests with
the other signatory.
• Checking/verifying would mean verifying that the instrument/material
checked is in order in all respects and also includes verification of signature
irrespective of the amount of the instrument and authenticating the same
on the instrument/material, initialing the relative entries in the respective
books of accounts, manually and/or online.
• Passing includes verification of signatures and scrutiny as to the
correctness of endorsement on and other particulars of such instruments.
It will also include checking and authenticating the relative entries in the
respective books of accounts/ledgers/computer sheets and/or online.
(ii) Henceforth, selection of staff for being entrusted with special pay carrying posts
shall be on the basis of their suitability for the specialised function, norms for
which shall be decided at the bank level.

29
DUTIES OF SPECIAL PAY CARRYING POSITIONS IN SUBORDINATE CADRE
Schedule III/27-04-2010
POST DUTIES
Cash Peon Persons required
1) To take money orders, to buy stamps etc.,
which involves carrying of cash not exceeding
5,000/- and to carry insured letters, etc., to
post office

2) To stitch currency note bundles

3) To stitch and seal parcels and packets

containing currency notes ;

4) To transit cash from the bank of an office

outside or vice versa, if unaccompanied by a
watchman / Armed Guard.

Liftman Persons required to operate the lifts on regular

assignment.

Watchman Persons other than “Armed Guards” who are

required to perform watch and ward duties i.e. to
watch or look after the premises or a department,
for the purposes of its safety, security and guard
against infiltration and against removal of the
bank’s property by any unauthorised person AND/
OR to watch and guard as above, the movement
of cash from one place to another inside the bank
premises or outside where an Armed Guard is not
employed at the Branch / Office.

Armed Guard Persons required to perform watch and ward duties

i.e. to watch or look after the premises or
department for the purposes of its safety, security
and guard against attack or assault or infiltration
and against removal of the bank’s property by any
unauthorized persons AND/OR to watch and guard
as above the movement of cash from one place to

30
 another whether inside or outside the Bank, for
which purpose they are required by the bank to
carry any of the following weapons:
(i) Gun, Pistol or any other fire arm ; or
(ii) Dagger, sword, khukri or spear ; or
(iii) any other licensed weapon
Note: ‘Retainers’ Peons (other than watchman)
whose names are registered in the Bank’s licence
as Retainers will, when they perform “Armed
Guard” duties, be entitled to special pay for “Armed
Guards” pro rata.

Bill Collector Their work involves:

1) Obtaining acceptance of bills of exchange,
hundies etc., drawn on local parties or banks
and / or collecting payments thereof.
2) Collecting payments for cheques or postal
order etc. from banks or post office counters.
They may also be required to collect cash not
exceeding 4,000/- at a time against various
instruments.

Daftary Their work involves:

1) Obtaining acceptance of bills of exchange,
hundies etc., drawn on local parties or banks
and / or collecting payments thereof.
2) Collecting payments for cheques or postal
order etc., from banks or post office counters.
They may also be required to collect cash not
exceeding 5,000/- at a time against various
instruments.
3) Simple binding of books and registers;
4) Press coping ;
5) Filing independently letters and other papers
in respective files as per indications marked
thereon;

31
 6) Assisting in issuing stationery ;

7) Stacking under guidance old records in orderly

manner and assisting in giving them out when
required; and

8) Undertaking the whole process and sorting,

arranging, numbering, tallying the total number
or stitching the vouchers

Head Peon Persons required to assist in supervision of various

matters pertaining to subordinate staff like:

(i) Cleanliness of the office premises ;

(ii) Cleanliness of uniforms ;

(iii) Leave arrangements ;

(iv) Arrangements for safekeeping of keys ; and

(v) Distribution of duties amongst the subordinate

staff

Air-Conditioning Semi skilled persons who under the supervision of

Plant Helper the technician attend to routine maintenance of and
minor repairs to air conditioning plants.

Electrician Their work involves carrying out semi-skilled

electrical work like routine maintenance of electrical
equipments, effecting minor repairs of electrical
fixtures and appliances.

Drivers Persons required to drive, maintain and effect

minor repairs (not requiring a technician’s skill) to
motor cars, motor vans, station wagons, scooters,
motor cycles or other motor vehicles.

Head Messenger As per bank level agreements.

in IOB

32
DUTIES OF DISCONTINUED SPECIAL PAY CARRYING POSITIONS IN
NON-SUBORDINATE CADRE IN TERMS OF CLAUSE 11(iii)/02-06-2005
SCHEDULE III/PART I/17-09-1984
II. RELIEVING TELEPHONE OPERATORS:
Persons who on regular assignment are required to relieve full time operators
referred to above during the recess period or to work in their place during
their absence on leave or otherwise, provided they themselves are not regular
full-time operators. Such persons will not be entitled to the special pay for full
time operators on a pro rata basis at any time.

V. COMPTISTS:

Their work involves operating a comptometer on regular assignment.

VI. TELEX OPERATORS:

Their work involves operating Telex Machine on regular assignment.

TELLER CATEGORY ‘A’ :

Sch. III Part-I / 14-02-1995 and Sch. III/17-09-1984

Passing and cash payment of all cheques/withdrawal forms/travellers’ cheques/

gift cheques etc. upto and including 7,000/-.

VIII. PUNCH CARD OPERATORS (DATA ENTRY OPERATORS):

Sch. III/17-09-1984

Persons who on regular assignment, are required to operate punches for

preparing punch cards or verifying punched cards or similar operations for use
on the I.B.M. or the I.C.T. (Hollerith - Power Samas) machines or any other
similar machines.

IX. ACCOUNTING MACHINE OPERATORS:

Persons who on regular assignment, are required to operate Ledger Accounting

Machines like National Cash Register Machines, Remington Rand Accounting
Machines, Blue Star Accounting Machines etc. These machines can be used
for the purposes of ledger and statement posting of Current Accounts, Savings
Bank Accounts, Deposit Accounts, General Ledger Accounts, interbranch/
agency Accounts, Salary and Provident Fund Accounts.

33
X. I.B.M., I.C.T. (Hollerith-Power Samas) MACHINE OPERATORS:
Persons who, on regular assignment are required to operate I.B.M. or I.C.T.
(Hollerith-Power Samas) Machines (other than Punches) which sort, analyse
and tabulate the punched cards. These machines can be used for the purpose
of maintaining interbranch/agency accounts for reconciliation purposes as also
salary and provident fund accounts, at Head Offices or offices where Bank’s
centralised accounts are maintained.
XII. HEAD CLERKS:

Sch. III Part I / 14-02-1995 and Sch. III/17-09-1984

Their duties involve:

(1) Passing independently cash cheques, vouchers etc. upto and including
7,000/- and passing, clearing and transfer cheques, vouchers etc.
(whether credits or debits) upto and including 15,000/-. Passing will
include verification of signature and scrutiny as to correctness or
endorsements on and other particulars of such instruments. It will also
include checking and initialling the relative entries in the respective books
of accounts (including ledgers). (Sch. III-Part I/14-02-1995)

(2) Checking of vouchers, drafts, pay orders, bill schedules, advices, pass
books, statements of accounts, books of accounts (excluding ledgers)
and interest, exchange discount, brokerage calculations and initialling them
by way of authenticating them for accuracy/correctness. Any eventual
authorisation of this work wherever necessary under an existing procedure,
shall be done by a superior. (Sch. III 17-09-1984)

(3) Primary coding and decoding of telegrams (except cyphers or symbols)

subject to eventual authentication by a superior and checking and/or
marking off confirmation/s acknowledgements of telegrams.

XIII. ASSISTANT HEAD CASHIER

(Units of 4 clerks and below)
(Above the level of routine clerks)
Their job is to assist the Head Cashier in looking after and checking the work of
clerks in the cash department.

34
XIV. CASHIER-IN-CHARGE OF CASH IN PAY OFFICE OR BRANCHES:

Single cashier in pay office or branches holding cash and valuables in joint
custody with an officer, accountable for them and responsible for the running of
the cash department.

XV. HEAD CASHIER - CATEGORY ‘A’:

(For Banks other than the Subsidiary Banks of the State Bank of India)

Their duties involve:

(1) Holding the Bank’s cash, keys, and/or other valuables in safe custody
jointly with an officer and being accountable for them and being responsible
for the running of the cash department;

Note: In banks where such practice is in existence the opinion compilation

work and verification of vernacular signatures/endorsements may, if the Bank
so desires, be continued to be done by the employees under this category
without disturbance, in which case the head cashier shall be entitled for an
additional special allowance of 5/- p.m.

XVI. HEAD CASHIERS - CATEGORY ‘B’:

(For the Subsidiary banks of the State Bank of India)

Their duties involve:

(1) holding the Bank’s cash, keys and/or other valuables in safe custody jointly
with an officer and being accountable for them and being responsible for
the running of the cash department; and

(2) opinion compilation; and

(3) verification of vernacular signatures/endorsements.

XVII. HEAD CASHIERS - CATEGORY ‘C’:

(For Banks other than the Subsidiary Banks of the State Bank of India)

Their duties involve:

(1) holding the Bank’s cash, key and/or other valuables in safe custody jointly
with an officer and being accountable for them and being responsible for
the running of the cash department; and

35
 (2) countersigning cheques and/or drafts (on selves or correspondents),
payment orders, deposit receipts, etc.

Notes: (a) In banks where such practice is in existence, the opinion compilation
work and verification of vernacular signatures/endorsements will
continue to be done by employees under this category without
disturbance.

(b) “Countersigning” means signing in a manner where by the primary

responsibility for ensuring that all the formalities are complete, rests
with the other signatory.

(c) In banks where the practice of discharging bills/hundies, for

payment received only, is in existence it may be continued to be
done by this category.

XXI. DATA ENTRY OPERATORS:

Sch. III Part I Dt. 14-02-1995 and Sch III/XXII/17-09-1994

Data Entry Operators shall be required to key in not less than 10,000 key
depressions per hour. In the cases of those asked to officiate temporarily, the
norm of minimum 10,000 key depressions per hour may not be rigidly enforced.
Any norm over 10,000 key depression per hour on a regular basis, shall be
subject to bank level settlements.

DUTIES OF SPECIAL PAY CARRYING POSITIONS IN SUBORDINATE CADRE

IN TERMS OF CLAUSE 11(iii)/02-06-2005

SCHEDULE III/PART II/17-09-1984

(i) CYCLOSTYLE MACHINE OPERATORS:

Operating Cyclostyle Machines whether manually or electrically on regular

assignment.

(iii) RELIEVING LIFTMAN:

Persons who on regular assignment are required to relieve full time liftmen
referred to above during the recess period or to work in their place during their
absence on leave or otherwise provided they themselves are not regular full

36
 time liftmen. Such persons will not be entitled to the special pay for full time
liftmen on a pro rata basis at any time.

(vii) BILL COLLECTORS:

Their work involves:
(1) Obtaining acceptance of bills of exchange, hundies, etc., drawn on local
parties or banks and/or collecting payments thereof:
(2) Collecting payments for cheques or postal order, etc. from banks or post
office counters.
They may also be required to collect cash not exceeding 4000/- at a time
against various instruments. (Sch. III Part II Dt. 14-02-1995).

37
 CHAPTER - III
DEARNESS ALLOWANCE

7/27-04-2010
In substitution of Clause 7 of Bipartite Settlement dated 2nd June 2005 with effect
from 1st November 2007, the dearness allowance shall be payable as per the following
rates:-
Clerical Staff and Subordinate Staff
0.15% of ‘pay’
Note:
Dearness Allowance in the above manner shall be paid for every rise or fall of
4 points over 2836 points in the quarterly average of the All India Average Working
Class Consumer Price Index (General) Base 1960 = 100.
(a) It is clarified that there shall be no ceiling on Dearness Allowance.
(b) Dearness Allowance shall be calculated and paid on Basic Pay, Special
Pay, Graduation Pay, Professional Qualification Pay and Officiating Pay, if
any, payable under this settlement in respect of both clerical and subordinate
staff.
(c) All other existing provisions relating to Dearness Allowance Scheme shall
remain unchanged.
Clause II/17-09-1984
(ii) Note: Such of those members of the Clerical staff who are in receipt of a “non-
adjustable personal allowance” of 19.80 at the maximum of the scale of pay
on or prior to 1st August, 1979 will continue to draw the same allowance which
shall rank for such benefits as Dearness Allowance shall rank. (Refer IBA circular
No. PD/CIR/76/90/937).
(iii) For the purpose of calculating dearness allowance ‘Quarter’ shall mean the
period of three months ending on the last day of March, June, September or
December.

(iv) Final index figures as published in the Gazette of India or the Indian labour
Journal, whichever is earlier, shall be the index figures which shall be taken for
the purpose of calculation of dearness allowance;

38
(v) For the purpose of calculating the dearness allowance for any particular month, the
quarterly average for the last quarter for which the final index figures are available
on the 15th day of that month should be taken. Thus if the dearness allowance for
the month of August is to be calculated, the quarterly average for the last quarter for
which final index figures are available on the 15th August should be taken.
ALL INDIA CONSUMER PRICE INDEX (Annual Average)
Base year 1960 - 100
1960 - 100 1985 - 608
1961 - 104 1986 - 661
1962 - 107 1987 - 719
1963 - 110 1988 - 787
1964 - 125 1989 - 841
1965 - 137 1990 - 918
1966 - 151 1991 - 1045
1967 - 172 1992 - 1169
1968 - 177 1993 - 1243
1969 - 175 1994 - 1371
1970 - 177 1995 - 1510
1971 - 190 1996 - 1645
1972 - 202 1997 - 1764
1973 - 236 1998 - 1997
1974 - 304 1999 - 2090
1975 - 320 2000 - 2174
1976 - 298 2001 - 2258
1977 - 321 2002 - 2352
1978 - 329 2003 - 2445
1979 - 350 2004 - 2534
1980 - 389 2006 - 2808
1981 - 440 2007 - 2990
1982 - 475 2008 - 3234
1983 - 532 2009 - 3584
1984 - 576
Note :
The consumer Price Index is published as per revised series 2001=100.
To convert the 1982=100 series of consumer price index into 1960=100 series, the consumer
price index points notified under 1982=100 series has to be multiplied by 4.93.
EX: For year 2000 Average index for as per new series (1982-100) is 440.97 points
To convert this into 1960=100 series multiply 440.97 by 4.93 i.e. 440.97 x 4.93 = 2174 points
To convert the 2001=100 series of consumer price index into 1960=100 series the consumer
price index notified under 2001=100 series has to be multiplied by 4.63 and again by 4.93.
EX: Index for August, 2010 as per new series (2001=100) is 178 points
To convert this into 1960=100 series multiply 178 by 4.63 and again by 4.93
i.e., 178x4.63x4.93 = 4063.01

39
 All India Consumer Price Index (1960 = 100)
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average
1970 177.00 177.00 179.00 181.00 183.00 185.00 186.00 187.00 188.00 189.00 189.00 186.00 183.92
1971 184.00 184.00 184.00 184.00 184.00 187.00 190.00 194.00 196.00 196.00 197.00 195.00 189.58
1972 194.00 193.00 194.00 195.00 196.00 201.00 205.00 207.00 208.00 209.00 210.00 210.00 201.83
1973 210.00 213.00 216.00 221.00 228.00 233.00 243.00 247.00 248.00 254.00 259.00 260.00 236.00
1974 264.00 267.00 275.00 283.00 294.00 301.00 311.00 321.00 334.00 335.00 331.00 326.00 303.50
1975 326.00 325.00 321.00 323.00 327.00 328.00 324.00 321.00 319.00 316.00 315.00 306.00 320.92
1976 298.00 290.00 286.00 289.00 290.00 291.00 297.00 298.00 302.00 304.00 306.00 306.00 296.42
1977 307.00 310.00 312.00 313.00 318.00 320.00 325.00 327.00 331.00 330.00 330.00 330.00 321.08
1978 325.00 320.00 321.00 322.00 323.00 327.00 330.00 331.00 336.00 340.00 340.00 335.00 329.17
1979 332.00 329.00 332.00 337.00 339.00 345.00 353.00 360.00 363.00 365.00 368.00 374.00 349.75

40
1980 371.00 369.00 373.00 375.00 382.00 386.00 394.00 397.00 402.00 406.00 411.00 408.00 389.50
1981 411.00 418.00 420.00 427.00 433.00 439.00 447.00 454.00 456.00 460.00 462.00 460.00 440.58
1982 459.00 458.00 457.00 459.00 462.00 470.00 478.00 488.00 489.00 491.00 496.00 497.00 475.33
1983 495.00 500.00 502.00 508.00 521.00 533.00 541.00 549.00 554.00 558.00 561.00 559.00 531.75
1984 563.00 561.00 558.00 559.00 562.00 574.00 585.00 586.00 589.00 592.00 595.00 588.00 576.00
1985 588.00 585.00 586.00 594.00 600.00 606.00 615.00 618.00 619.00 625.00 630.00 630.00 608.00
1986 629.00 633.00 638.00 643.00 651.00 658.00 668.00 672.00 676.00 685.00 692.00 688.00 661.08
1987 688.00 686.00 686.00 691.00 703.00 715.00 724.00 736.00 745.00 750.00 755.00 752.00 719.25
1988 753.00 749.00 753.00 763.00 771.00 782.00 795.00 800.00 806.00 823.31 828.24 818.38 786.83
1989 813.45 813.45 818.38 823.31 833.17 838.10 847.96 857.82 867.68 867.68 867.68 862.75 842.62
1990 857.82 862.75 872.61 887.40 897.26 912.05 931.77 936.70 941.63 961.35 976.14 981.07 918.21
 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average
1991 995.86 995.86 990.93 995.86 1005.72 1030.37 1055.02 1069.81 1089.53 1099.39 1109.25 1109.25 1045.57
1992 1124.04 1128.97 1128.97 1138.83 1153.62 1163.48 1193.06 1193.06 1197.99 1202.92 1202.92 1197.99 1168.82
1993 1188.13 1188.13 1197.99 1207.85 1212.78 1232.50 1247.29 1262.08 1276.87 1291.66 1306.45 1301.52 1242.77
1994 1296.59 1306.45 1316.31 1326.17 1340.96 1365.61 1385.33 1400.12 1419.84 1424.77 1434.63 1424.77 1370.13
1995 1424.77 1434.63 1444.49 1454.35 1479.00 1508.58 1543.09 1552.95 1562.81 1572.67 1582.53 1562.81 1510.22
1996 1552.95 1557.88 1572.67 1597.32 1617.04 1641.69 1671.27 1690.99 1695.92 1705.78 1720.57 1725.50 1645.80
1997 1725.50 1725.50 1730.43 1745.22 1735.36 1750.15 1764.94 1769.87 1779.73 1799.45 1804.38 1833.96 1763.71
1998 1893.12 1883.26 1873.40 1888.19 1917.77 1967.07 2026.23 2036.09 2070.60 2134.69 2159.34 2114.97 1997.06
1999 2070.60 2045.95 2041.02 2045.95 2065.67 2070.60 2090.32 2100.18 2114.97 2154.41 2159.34 2124.83 2090.32
2000 2124.83 2119.90 2139.62 2159.34 2169.20 2179.06 2193.85 2183.99 2188.92 2213.57 2218.50 2198.78 2174.13

41
2001 2193.85 2183.99 2193.85 2208.64 2223.43 2253.01 2282.59 2297.38 2292.45 2307.24 2326.96 2312.17 2256.30
2002 2302.31 2297.38 2307.24 2312.17 2326.96 2346.68 2371.33 2386.12 2391.05 2400.91 2410.77 2386.12 2353.25
2003 2381.19 2386.12 2400.91 2430.49 2435.42 2450.21 2469.93 2460.07 2460.07 2479.79 2484.72 2474.86 2442.82
2004 2484.72 2484.72 2484.72 2484.72 2504.44 2524.16 2548.81 2573.46 2578.39 2593.18 2588.25 2568.53 2534.84
2005 2593.18 2588.25 2588.25 2607.97 2598.11 2607.97 2652.34 2662.20 2672.06 2701.64 2726.29 2711.50 2642.48
2006 2716.28 2716.28 2716.28 2739.11 2761.93 2807.59 2830.41 2830.41 2853.24 2898.89 2898.89 2898.89 2805.68
2007 2898.89 2921.72 2898.89 2921.72 2944.54 2967.37 3013.02 3035.84 3035.84 3058.67 3058.67 3058.67 2984.49
2008 3058.67 3081.50 3127.15 3149.97 3172.80 3195.63 3264.10 3309.76 3332.58 3378.23 3378.23 3355.41 3233.67
2009 3378.23 3378.23 3378.23 3423.89 3446.71 3492.36 3652.14 3697.80 3720.62 3766.27 3834.75 3857.58 3585.57
2010 3926.05 3880.40 3880.40 3880.40 3926.05 3971.71 4063.01 4063.01 4085.83
 CHAPTER - IV
HOUSE RENT ALLOWANCE
9/27-04-2010
HOUSE RENT ALLOWANCE
In substitution of Clause 9 of the Bipartite Settlement dated 2 nd June 2005
with effect from 1st November, 2007 the House Rent Allowance payable shall be as
under:
Rate as
AREA percentage of Pay
(No Minimum/
No Maximum)
(i) Places with population of more than 45 lakhs 10.00
(ii) Places with population of 12 lakhs and above
including State of Goa 9.00
(iii) Places with population of 5 lakhs and above,
State Capitals and Capitals of Union Territories
other than places mentioned in (i) and (ii) above 7.50
(iv) Places with population below 5 lakhs not covered in
(i), (ii) and (iii) above. 7.00
Note:
(1) Where quarters are provided, HRA shall not be payable, and the rent to be
recovered shall be 0.5% of the first stage of the Scales of Pay.
(2) All other existing provisions relating to House Rent Allowance shall remain
unchanged.

PAYMENT OF HOUSE RENT ALLOWANCE

3/15/16-04-1980
For the purpose of payment of house rent allowance, parties agree that all places
constituting an urban agglomeration will be taken as a unit and the house rent
allowance will be paid on the basis of population of urban agglomeration given. e.g.,
Dehradun, Urban Agglomeration has a population of 2,03,464 and all places coming
within the urban agglomeration will be taken as part of Dehradun for house rent
allowance payable at the rate of 6 per cent. Similarly, house rent allowance payable
at Cuttack - population 2,65,759 is 6 per cent.

42
It is also agreed that when a Government by notification declares a place as forming
part of the town municipality on the basis that the place (as per 1971 Census) is
above 10,000 all places coming within such town municipality will be taken together
for the purpose of payment of house rent allowance.
DEFINITION OF ‘PAY’
6/02-06-2005
‘Pay’ for the purpose of D.A., HRA and Superannuation benefits shall mean Basic
Pay, Stagnation increments, Special Pay, Graduation Pay, Professional Qualification
Pay and Officiated Pay, if any.
HOUSE RENT ALLOWANCE IN PROJECT AREAS
9. (1) It is clarified that w.e.f. 01-01-1990
(i) House Rent allowance at project area centres Group ‘A’ and ‘B’ shall be
paid at the following rate:-
(Revised as per IBA Cir. No. PD/CIR/76/E(iv) 2529 dt. 14-3-1991)
3 Revised House Rent Allowance payable from 1-11-1999 at Project Area Centres
shall be as under:-
(i) Project Area : 8.5% of pay
Centres - Group A (No Minimum/No Maximum)
(ii) Project Area : 7.5% of pay
Centres - Group B (No Minimum/No Maximum)
(Revised as per IBA Cir. PD/CIR/76/90/2018 dt. 30-3-2000 - Annexure-G
para 3 (i), (ii) & para 4)
(Consequent upon 9th Bipartite Settlement, IBA has clarified that in respect of
HRA to Workmen posted in Project Areas, pending review of the list of centres
presently classified as Project Areas and the Project Area Compensatory
Allowance and HRA payable at these centres, the Workmen Employees posted
in Project Area Centers Group ‘A’ and Group ‘B’ may be paid HRA at 10% and
9% of Pay respectively, w.e.f. 1st November, 2007)
9(ii)/05-01-1987
(ii) If at a centre both City Compensatory Allowance and Project Area
Allowance are payable, only the higher of the two shall be paid.

43
6.25/D.A.
Where employees occupy residential quarters provided by the bank they will not be entitled
to any house rent allowance.
6.26/D.A.
Where an employee is on leave of any kind without pay, he will not be entitled to draw any
house rent allowance. Where an employee is on leave/other than leave of any kind
without pay, he will be entitled to be paid house rent allowance provided he satisfies the
bank that he has continued to retain the residential accommodation occupied by him. Incase
where separate residential quarters are not provided by the bank, but an employee is allowed
to sleep on the bank’s premises he will be entitled to receive house rent allowance.
8.3/19-10-1966
House Rent Allowance in project areas is agreed on the basis that residential
accommodation is not available in these areas. Accordingly, house rent allowance in
these areas shall be payable until such time as a bank is in a position to offer residential
accommodation. The continuance of house rent allowance in project areas after the
expiry date of this settlement will be subject to fresh review of the housing situation in
these places.
(Refer IBA Cir. PD/CIR/76/90/937 Dt. 16-08-1989)
8.4/19-10-1966
In supersession of paragraph 6.27 of the Desai Award, for the purpose of house rent
allowance, the latest available official figures of the All India Census shall be taken
into account effectively. (e.g. 01-03-1971, 01-03-1981, 01-03-1991.............)
8.1/19-10-1966
(d) “Project Areas” - Group ‘A’ shall comprise of (i) Jamshedpur (ii) Bhilai (iii) Bokaro
(vi) Rourkela and (v) Durgapur.
(e) “Project Areas” - Group ‘B’ shall comprise of (i) Nangal Township (ii) Talwara
(iii) Khetri (vi) Nagarjunasagar and (v) Neyveli
II/08-11-1973
(c) In addition to the places mentioned in Clause 8.1 (d) of the Bipartite Settlement
dated 19-10-1966, the following places shall be treated as Project Areas Group
‘A’ with effect from the date mentioned against their names:
1. Burnpur (W.Bengal) ..... From 01-01-1969
2. Durg (M.P.) ..... From 01-08-1971
3. Visakhapatnam (A.P.) ..... From 01-07-1971

44
(d) In addition to the places mentioned in Clause 8.1(e) of the Bipartite Settlement
dated 19-10-1966, the following places shall be treated as project areas Group
‘B’ with effect from the dates mentioned against their names.
1. Bhopal Heavy Electricals (M.P.) ..... From 01-01-1969
2. Ankleshwar (Gujarat) ..... From 01-01-1969
3. Cambay (Gujarat) ..... From 01-01-1970
4. Mandi (Himachal Pradesh) ..... From 01-01-1970
5. Ranchi (Bihar) ..... From 01-08-1971
6. Pophali (Maharashtra) ..... From 01-08-1971
7. Kargal (Mysore) ..... From 01-07-1971
8. Pochampadu (A.P.) ..... From 01-07-1971
9. Sileru (A.P.) ..... From 01-07-1971

45
 CHAPTER - V
CITY COMPENSATORY ALLOWANCE
8/27-04-2010
City Compensatory Allowance
Clause 8 of the Bipartite Settlement dated 2nd June 2005 stands superceded and
accordingly no City Compensatory Allowance shall be payable w.e.f. 1st November
2007.

46
 CHAPTER - VI
OTHER ALLOWANCES
WASHING ALLOWANCE

25/27-04-2010

In supersession of Clause 24 of Bipartite Settlement dated 2nd June 2005, with effect
from 1st May, 2010, washing allowance shall be payable at Rs. 100/- p.m., where the
washing of livery is not arranged by the bank.

VII 1/17-09-1984

(ii) No washing allowance would be payable ....

(a) Where washing arrangements are made by the bank;
(b) For the period of leave where such leave exceeds 30 days.
(iii) All members of the staff who are supplied with uniform shall wear them
while on duty and in clean condition.

CYCLE ALLOWANCE

26/27-04-2010

In supersession of Clause 25 of Bipartite Settlement dated 2nd June 2005, w.e.f.

1st November, 2007, cycle allowance is payable to the members of the subordinate
staff who are required to use a cycle on regular assignment for outdoor duties at
75/- p.m. at all centers.

Cycle allowance would not be paid to a workmen member of the subordinate staff
entitled to the allowance for the period of leave where such leave exceeds 30 days.

HILL & FUEL ALLOWANCE

9.3 & 9.4/19-10-1966/Clause 15/10-04-89/6(i)/27-03-2000

Pay for this purpose will mean basic pay and will include special pay and officiating
pay, if any.

12/27-04-2010

In partial modification of Clause 12 of the Bipartite Settlement dated 2nd June 2005,
the Hill and Fuel Allowance shall be payable at the following rates with effect from
1st November 2007:

47
 a. At places situated at a height of 3000 metres and 8% of pay
above (Max. 1295/- p.m.)
b. At places situated at a height of and over 1500 metres 4% of pay
but below 3000 metres (Max. 510/- p.m.)
c. At places situated at a height of over 1000 metres 3% of pay
but less than1500 metres and Mercara Town (Max. 410/- p.m.)
Note: All other existing provisions shall remain unchanged.
15/10-04-1989
(b) At places which have a height of not less than 750 metres and which are
surrounded and accessible only through hills with a height of 1000 metres and
above, the Hill & Fuel Allowance shall be paid as is payable at places situated
at height of 1000 meters and above but less than 1500 metres.
(c) Hill & Fuel Allowance paid at any place not covered by (a) (i), (ii), (iii) and
(b) above in terms of existing provisions, decisions, orders, bank level/local
settlements or practices shall cease to be payable with effect from 10-04-1989
irrespective of the reason for or name by which it is now paid. The employees
at such places presently in receipt of such an allowance, however shall continue
to draw the then allowance as was drawn by them with their March, 1989
salary by way of a Fixed Personal Allowance so long they are posted at that
places as workmen employees.
OFFICIATING PAY
9.10/19-10-1966
Wherever a bank requires a workmen to officiate in a post in a higher cadre, it will do
so by an order in writing.
29/02-06-2005
In partial modification of paragraph III (f) of Bipartite Settlement dated 8th November,
1973, if a workman other than subordinate staff officiates in a post in higher cadre
either for a continuous period of 7 days or more or an aggregate of 7 days in a
calender month. He shall be paid with effect from 1st June, 2005 officiating pay at the
rate laid down in Clauses 9.11(a) (i) or 9.11(a) (ii) of the Bipartite Settlement dated
19th October, 1966.

48
9.11/19-10-1966 Modified by III (f) / 08-11-1973/6(i)/27-03-2000
(a) (i) Where the basic pay of the permanent incumbent exceeds the basic pay
of the person officiating, the officiating pay shall be 15% of the basic pay
of the person officiating or difference between the two basic pays whichever
is less, provided that in no case will the officiating pay be less than 72% of
the basic pay of the person officating.
(ii) Where the basic pay of the permanent incumbent is equal to or less than
that of the person officating, the officating pay shall be 72% of the basic
pay of the person officiating.
(b) If a member of the subordinate staff officiates in the clerical cadre he shall be
paid the officiating pay at the rates mentioned in sub clause (a) above or the
difference between his basic pay and starting basic pay of the clerical scale in
that area, whichever is higher. Such officiating pay will be payable pro-rata for
each day of work in the clerical cadre without any limitation as to the number of
days for which he officiates.
(Refer IBA Cir. PD/CIR/76/90/2018 dt. 30-03-2000 - Annexure-G Para 5)
WATER SCARCITY ALLOWANCE
9.9/19-10-1966 modified by III (e)/08-11-1973
In partial modification of 9.9 of Bipartite Settlement dated 19-10-1966 water scarcity
allowance of 10/- for non-substaff and 8/- p.m. for subordinate staff will be payable
subject to the following conditions from 01-01-1972 wherever it is payable.
(i) the allowance will be paid by banks to such of their workmen who have
actually been working in the areas for which water scarcity allowance is
paid by Central or State Government to their employees. The period of
payment of such allowance being the same as in the case of such
Government employees.
(ii) Workmen who have actually been working in the following places will be
paid water scarcity allowance for the period from April to July (both inclusive)
each year, if they are not already covered under sub-clause (i) above. The
continuance of the water scarcity allowance at these places will be subject
to fresh review, by banks, of the water supply situation after the expiry date
of this settlement.
In Punjab & Haryana Sonepat, Bhatinda, Rohtak, Hissar, Kaithal
In Rajasthan Jaisalmer, Marwar, Degana, Makrana, Lachhmangarth,
Nawalgarh, Sri Madhopur and Jhunhunu
In Gujarat Ghandhidham, Surendranagar, Dharangadhra
In Andhra Guntakal, Adoni, Cuddapah.

49
SPLIT DUTY ALLOWANCE
9.7/19-10-1966
In supersession of paragraph 6.44 of the Desai Award a Split Duty Allowance will be
payable as under:-
(i) At branches where business hours are split with a minimum break of two
hours all full time workmen (Excluding (a) watch and ward staff (b) drivers,
(c) sweepers, (d) those who reside in the premises of such branch and
(e) any workman whose hours of work, apart from normal lunch recess are
not split) are entitled for split duty allowance.
(ii) At other branches all full time pass-book writers, day book writers and
despatchers if their working hours are in two shifts with a minimum break of
two hours are entitled for split duty allowance.
13/31-10-1979
Provided that no such allowance will be payable to workmen, who subsequent to the
date of this settlement are, at their request, transferred to Branches where business
hours are split as in item (i) above.
It is also clarified that even where business hours are not split, banks are free to split
the duty hours of (a) watch and ward staff and (b) sweepers without payment of
allowance. In respect of drivers where the duty hours are split, they shall be eligible
for payment of split duty allowance.
27/27-4-2010
In partial modification of Clause 4 of the Bipartite Settlement dated 28th November,
1997 and Clause 24 of the Bipartite Settlement dated 27th March, 2000,
w.e.f.1st November, 2002, Split Duty Allowance shall be payable at all centres at
90/- p.m.
XI (2) 17-09-1984
It is confirmed and clarified that the provisions contained in clause 13 of the third
Bipartite Settlement, dated 31st October, 1979 relating to staggering of working hours
and split duty allowance will continue to apply to Drivers also.
PASS BOOK ALLOWANCE
9.8/19-10-1996
Status quo in respect of the duties and any allowance paid to full-time workmen of
this category will be maintained in each bank concerned.

50
PARADIP PORT ALLOWANCE
29/27-03-2000
In supersession of Clause 7 of the Bipartite Settlement dated 28th November, 1997
employees posted and working in branches situated in Paradip Port Town shall be
paid with effect from 1st November, 1999 Paradip Port Town Allowance @ 5% of
Basic Pay.
(Note: There is no change or modification of the above in the 8th Bipartite Settlement.
Hence Paradip Port Allowance shall continue to be payable at 5% of the basic pay
based on the revised basic pay w.e.f. 01.11.2002)
(House Rent Recovery: Refer IBA Circular No. PD/CIR/76/90/937)
HINDI INCENTIVE ALLOWANCE FOR TYPISTS/STENOGRAPHERS.
(Refer IBA Cir. PD/CIR/76/597/1344 dt. 07-12-1998)
COMPENSATORY FACILITIES - EMPLOYEES WORKING IN KASHMIR VALLEY
(Refer IBA Cir. PD/Cir/76/746/1491 dt. 04-01-1999)
SPECIAL AREA ALLOWANCE
27-04-2010
In supersession of all earlier provisions related to Special Area Allowance, w.e.f.
1st November, 2007, Special Area Allowance shall be payable at places specified in
column 2 of the Schedule VI hereto, as per the quantum indicated in column 3 thereof
against each such place, subject to the condition that if at any of the places mentioned
in column 2 of Schedule VI hereto, Hill and Fuel Allowance is payable in terms of this
Settlement, then at such places only higher of the two allowances shall be payable.

51
 SCHEDULE - VI
27-04-2010
SPECIAL AREA ALLOWANCE FOR WORKMEN
Sl. Area Allowances ( )
No.
Pay below Pay above
14,700/- 14,700/-

1 2 3 4

1. Mizoram

a) Chimptuipui District and Areas beyond

25 kms. from Lungeli Town in Lunglei District 2000 2600
b) Entire Lunglei District excluding Areas
beyond 25 kms from Lunglei Town 1600 2100
c) Entire Aizawl District 1200 1500

2. Nagaland 1600 2100

3. Andaman & Nicobar Islands:

„ North Andaman, Middle Andamans, 2000 2600

Little Andaman, Nicobar & Narcondum
Islands
„ South Andaman (including Port Blair) 1600 2100

4. Sikkim 2000 2600

5. Lakshadweep Islands 2000 2600

6. Assam 320 400

7. Meghalaya 320 400

8. Tripura

a) Difficult areas of Tripurra 1600 2100

b) Throughout Tripura except difficult areas 1200 1500

9. Manipur 1200 1500

52
Sl. Area Allowances ( )
No.
Pay below Pay above
14,700/- 14,700/-

1 2 3 4

10. Arunachal Pradesh

a) Difficult areas of Arunachal Pradesh 2000 2000
b) Throughout Arunachal Pradesh other
than difficult areas 1600 2100

11. Jammu & Kashmir

1) Kathu District: Niabat Bani, Lohi, Malhar 2000 2000

and Machhodi
2) Udhampur District:
a) Dudu Basantgarh, Lander Bhamag, Illaqa,
Thakrakote and Nagote, all areas 2000 2600
in Mahore Tehsil other than those
included in Part 2(b)
b) Areas upto Goel from Kamban Side 1600 2100
and areas upto Arnas from Keasi side
in Tehsil Mohre

3) Doda District:
Illaquas of Padder and Niabat Nowgam 2000 2000
in Kishwar Tehsi
4) Leh District:
All places in the District 2000 2000
5) Barmulla District
a) Entire Gurez-Nirabat, Tangdar
Sub-Division and Keran Illaqua 2000 2000
b) Matchill 1600 2100

6) Poonch and Rajouri District:

Areas in Poonch and Rajouri District
excluding the towwns of Poonch and
Rajouri and Sunderbani and other urban
areas in the two Districts.

53
Sl. Area Allowances ( )
No.
Pay below Pay above
14,700/- 14,700/-

1 2 3 4

7) Areas not included in (1) to (6) above,

but which are within the distance of 8 kms.
from the line of Actual Control or at places
which may be declared as qualifying for
border allowance from time-to-time by the
State Government for their own staff. 1200 1500

12. Himachal Pradesh

(1) Chamba District

a) Pangi Tehsil, Bharmour Tehsil,
Panchayats : Badgaum, Bajol,
Deol Kugti, Nayagam and Tundah,
Villages: Ghatu of Gram Panchayat
Jagat, Kanarsi of Gram Panchayat
Chauhata 2000 2000
b) Bharmour Tehsil, excluding
Panchayatsand Villages included
in (a) above. 1600 2100

(2) Kinnaur District:

a) Asrang, Chitkul and Hango Kuno/
Charang Panchayats, 15/20 Area
comprising the Gram Panchayats of
Chhota Khamba, Nathpa and Rupi,
Pooh Sub-Division, excluding the
Panchayat Areas specified above 2000 2000
b) Entire District other than Areas
included in (a) abovvve 1600 2100

(3) Kullu District:

a) 15/20 Area of Nimand Tehsil,
comprising the Gram Panchayats
of Kharga, Kushwar and Sarga 2000 2000

54
Sl. Area Allowances ( )
No.
Pay below Pay above
14,700/- 14,700/-

1 2 3 4

b) Outer-Saraj (excluding villages of

Jakat - Khana and Burrow in
Nirmand Tehsil) and wentire District
excluding outer Seraj area and Pargana
of Pandrabis but including villages Jagat-
Khana and Burrow of Tehsil Nirmand 1200 1200

(4) Lahaul and Spiti District :

Entire area of Lahaul and Spiti 2000 2600

(5) Shimla District:

a) 15/20 area of Rampur Tehsil
comprising of Panchayats of Koot,
Labana-Sadana, Sarpara and
Chadi-Branda 2000 2600
b) Dora-Kawar Tehsil, Gram
Panchayat of Darkali in Rampur,
Kashapath Tehsil and Munish,
Ghori Chaibis of Paargana Sarahan 1600 2100
c) Chopal Tehsil and Ghoris, Panjgaon,
Patsnau, Naubis and Teen Koti of
Pargana Sarahan, Deothi Gram
Panchayat of Taklesh Area, Pargaana
Barabis, Kasba Rampur and Ghori
Nog of Pargana Rampur of Rampur
Tehsil, Simla Town and its
suburbs (Dhalli, Jatog Kasumpti,
Mashobbra, Taradevi and Tutu) 1200 1500

(6) Kangra District:

(a) Areas of Bara Bhangal and

Chhota Bhangal 1600 2100

55
Sl. Area Allowances ( )
No.
Pay below Pay above
14,700/- 14,700/-

1 2 3 4

b) Dharmshala Town of Kangra

District and the following offfices
but included in Dharamshala Town-
Women’s ITI, Dari, Mechanical
Workshop, Ramnagar, Child
Welfare and Town and Country
Planning Offices, Sakoh, CRSF
Office at lower Sakoh, Kangra Milk
Supply Scheme, Dugiar, HRTCC
Workshop, Sadher, Zonal Malaria
Office, Dari, Forest Corporation
Office, Shamnagar, Tea Factory,
Dari, I.P.H. Sub-Division, Dan,
Settlement Office, Shamnagar,
Hinwa Project, Shamnagar 1200 1500
Palampur Town of Kangra District
including HRKVV Campus at
Palampur and the following offices
located outside its municipal limits
but included in Palampur Town
H.P. Krishi Vishwavidhalaya Campus,
Cattle Development Office/Jersey
Farm, Banuri, Sericulture Office/Indo-
German Agriculture Workshop/
HPPWD Division, Bundla, Electrical
Sub-Division, Lohna, D.P.O.
Corporation, Bundla, Electrical
HESEE Division, Ghuggar

(7) Mandi District:

Chhuhar Valley of Jogindernagar Tehsil,
Panchayats in thunag Tehsil-of-Bagraa,

56
Sl. Area Allowances ( )
No.
Pay below Pay above
14,700/- 14,700/-

1 2 3 4

Chatri, Chhotdhar, Garagushain, Gatoo,

Garyas, Janjehli, Jargar, Johar, Kalhani,
Kalwan, Kholanal, Loth, Silibagi,
Somachan, Thachdhar, Tachi, Thana 1200 1500
Panchayats of Dharampur Block-Binga,
Bagra, Gopalpur, Khajol, Mahog, Mehudi,
Manj, Pekhi, Sainj, Sarahan and Teban,
Panchayats of Sundernagar Tehsil - Bohi,
Batwara, Dhanyara, Paura-Kothi, Seri
and Shoja
(8) Simaur District :
Panchayats of Bani, Bakhali (Pachhad
Tehsil), Bharog Bheneri (Paonta Tehsil),
Birla (Nahan Tehsil), Dibber (Pachhad 1200 1500
Tehsil) and Thana Kasoga (Nahan Tehsil)
and Thansgin Tract
(9) Solan District:
Mangal Panchayat 1200 1500
(10)Remaining areas of Himachal Pradesh
not included in (1) to (9) above 320 400

13. Uttarakhand

Area under Chamoli, Pithoragarh, Uttar Kashi,

Rudraprayag and Champavat Districts 2000 2600

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HALTING ALLOWANCE
549/SASTRY AWARD
Halting Allowance is a payment made to an employee in addition to other emoluments
for any day during which an employee is absent from headquarters on duty and is
intended to cover the ordinary daily expenses incurred by him consequence of such
absence.
6.84 (2)/D.A.
For the purpose of halting allowance ‘a day’ shall mean each period of 24 hours or
any part thereof reckoned from the time the employee leaves his headquarters,
provided the duration of absence from headquarters covers at least one night.
6.84(3)/D.A.
Halting Allowance is payable in addition to the class of fare to and fro to which the
employee is entitled for travel as on tour
III(h)/08-11-1973
Provided further that drivers required to drive the vehicles on outstation duty shall be
paid overtime wages for the period of actual driving beyond normal working hours in
addition to batta/halting allowance at the rates payable to them.
III(g) B, C, D/08-11-1973
B-In partial modification of Clause 9.13 of the Bi-partite Settlement dated
19-10-1966, where the workman is required to travel within the municipal limits,
municipal Corporation including cantonment or panchayat limits, no Halting Allowance
is payable. Where the place is outside such limits, the workman will be entitled to
batta, provided the place of outstation duty is more than 5 kilometers from the Branch
or Office where he is working.
C- For the purpose of entitlement of Halting Allowance, it is herby clarified that, places
covered under Clause 3.2A(i) to (viii) of Bipartite Settlement, dated 19-10-1966, which
consist of more than one municipality/panchayat limits no halting allowance/batta is
payable for travel within such places.
Illustration: Delhi comprises of New Delhi, Old Delhi, Delhi Shahdra, Delhi Cantonment
and Loni. Though New Delhi and Delhi are different municipal areas, no halting
allowance/batta will be payable for travel from New Delhi to old Delhi or vice versa as it
is one place under Clause 3.2A (iii) of Bi-partite Settlement dated 19-10-1966.

58
7/16-07-1991
In partial modification of Clause 3.1 of the Memorandum of Settlement dated
19th October, 1966, with effect from 1st June, 1989, Delhi will also comprise of areas
covered by Gurgaon Urban Agglomeration.
Note:
For all administrative purposes including payment of halting allowance all places
forming part of Delhi including Gurgaon (U.A.) shall be treated as one composite
area.
III (g)D/08-11-1973
If a workman is temporarily transferred to a nearby place where batta is payable as
per sub-clause ‘B’ above and can return to his place everyday, he will be entitled to
travelling expenses as per entitlement under rules in addition to batta.
DEPARTMENTAL ENQUIRY-DEFENCE REPRESENTATIVE - HALTING
ALLOWANCE
4/08-09-1983
If the representative defending the employee is an employee of the same bank at an
outstation branch within the same state, he shall be relieved on special leave (on full
pay and allowances) to represent the employee and be paid one to and fro fare. The
class of fare to which he will be entitled would be the same as while travelling on duty.
In case of any adjournment at the instance of the bank/Enquiry Officer, he may be
asked to resume duty and if so, will be paid fare for the consequential journey. He
shall also be paid full halting allowance for the period he stays at the place of the
enquiry for defending the employee as also for the days of the journeys which are
undertaken at the Bank’s cost.
EXPLANATION
“State” for the purpose, shall mean the area which constituted a political state as on
19th October, 1966, but this explanation will not apply to SBI. (Reimbursement of
TA/DA-Ref: IBA Cir. No. PD/CIR/76/E(ix) /797 Dt. 02-09-1993)

59
HALTING ALLOWANCE
24/27-04-2010
In modification of Clause 23 of the Bipartite Settlement dated 2nd June 2005, with
effect from 1st May 2010, halting allowance shall be payable at the following rates for
the days spent on duty outside the headquarters:
(A) (B) (C)
Places with Places ith
population of population
12 lakhs and of 5 lakhs and above,
above and State State Capitals/ Other Places
of Goa Capitals of Union
Territories
not covered
in (A)
Clerical 500/- per diem 375/- per diem 300/- per diem
Subordinate 375/- per diem 250/- per diem 185/- per diem
JOURNEY COMPLETED ON THE SAME DAY
9.13/19-10-1966
In supersession of paragraph 6.84(4) of the Desai Award, where the work entrusted
to a workman is such that it does not involve night stay and enables him to return to
headquarters the same day he shall be entitled:-
(i) If he is not a member of the subordinate staff:
(a) to a single second class (now first class) fare to and fro for himself, and
(b) to batta at one-half the rates set out as applicable to him, and
(ii) If he is a member of the subordinate staff:
(a) to a single third class (now second class) fare to and fro for himself, and
(b) to batta at one-half the rates set out as above applicable to him.
Provided, however, that where the period between the time when a workman
commences work on that day and the time at which he returns to his place of work
from outstation duty exceeds his normal working hours plus recess interval, full halting
allowance at the above rates, applicable to him shall be paid. In such cases the
workman concerned shall not be entitled to any overtime allowance.

60
PROJECT AREA COMPENSATORY ALLOWANCE
28/27-04-2010
In partial modification of Clause 27 of the Bipartite Settlement dated 2nd June 2005,
w.e.f. 1st November 2007, workmen in project areas shall be paid a project area
compensatory allowance as under:
(i) Project Area Group ‘A’
Clerical Staff : 205/- p.m.
Subordinate Staff : 180/- p.m.
(ii) Project Area Group ‘B’
Clerical Staff : 180/- p.m.
Subordinate Staff : 150/- p.m.
BASIS TO FINALISE PROJECT AREAS
12(2)/31-10-1979
(iii) Parties agree to discuss and finalise additions/deletions to the list of Project
areas. This will be on the basis of the following 4 principles being satisfied.
(a) Place is declared as a project area by Government;
(b) The branch of the Bank is situated in the project area;
(c) It should be far away from a town/city; and
(d) All the land is acquired by the project authorities as a result of which housing
is not available.
PROJECT AREA ALLOWANCE
2/15/16-04-1980
Parties agree that the project area allowance payable for Group ‘B’ under the Bipartite
settlement dated 31st October, 1979 will be paid at the following places:
i. Ambika Nagar (Karnataka)
ii. Donimalai (Karnataka)
iii. Srisailam (Andhra Pradesh)
iv. Haldia (West Bengal)
v. Jog Falls (Karnataka)
vi. Maithon (Bihar - DVC Project)
vii. Dandeli (Karnataka)
viii. Chattargarh (Rajasthan - Rajasthan Canal)
ix. Mahi (Rajasthan - Dam Project)

61
Continuation of the payment of Project Area Allowance at these and other places
under the Bipartite Settlement will be reviewed periodically.
9(iii)/05-01-1987
If at a centre both City Compensatory Allowance and Project Area Allowance are
payable, only the higher of the two shall be paid.
CONVEYANCE ALLOWANCE
548/S.A. & 6.39/D.A.
Conveyance Allowance meaning thereby the expenses for going from employee’s
residence to office or vice versa must be deemed to be included in our pay scale.
The only direction that we give is that where an employee incurs expenditure in the
performance of bank’s work he should be reimbursed to the extent that the expenditure
is fairly and legitimately incurred.
TRANSPORT ALLOWANCE
10/27-04-2010
In partial modification of Clause 10 of the Bipartite Settlement dated 2nd June 2005,
Transport Allowance shall be paid as under with effect from 1st November, 2007.
Clerical and Subordinate Staff
Upto 15th stage of the scale of Pay - 225/- per month
16th stage of scale of Pay and above - 275/- per month
Note:
(i) All permanent part time employees including those on probation and drawing
scale wages shall be paid transport allowance on pro rata basis as under:
Upto 15 years of service - Pro rata @ 225/- per month
Above 15 years of service - Pro rata @ 275/- per month
DEPUTATION ALLOWANCE
Consequent upon the 8th Bipartite Settlement dated 2nd June, 2005, the rates of
Deputation Allowance payable to workmen employees deputed to RRBs/
District Industrial Centres/Debt Recovery Tribunal has been revised as below w.e.f.
01-11-2005.
For Deputation within the 4% of Basic Pay
same station Max. 375
For Deputation to an 7.75% of Basic Pay
Outstation Max. 775
(Refer IBA Circular no. CIR/PAD/76/E15/2005-06/813 dt. 09-01-2006)

62
 CHAPTER - VII
LEAVE RULES
GENERAL
13.1 to 13.7/19-10-1966
13.1 From the date of operation of this settlement the following leave rules shall
apply uniformly to all workmen.
13.2 An employee who desires to obtain leave of absence other than casual leave,
shall apply in writing to the manager or any other officer appointed for the
purpose. Such application for leave shall be made not less than one month
before the date from which the leave is to commence, except in urgent cases or
unforeseen circumstances including illness when it is not possible to do so.
The Manager or the Officer empowered by him in this behalf shall issue orders
on such application as soon as practicable and in cases of an urgent nature
immediately. If the leave asked for is granted, an order showing the date of
commencement of the leave and the date on which the employee will have to
resume duty shall be issued to him.
13.3 If an employee after proceeding on leave desires an extension thereof, he shall
make an application in writing to the Manager or other officer appointed for the
purpose. Such application shall state the full postal and telegraphic address of
the employee and shall be made in sufficient time to enable the management
to consider the application and send a reply to him before the expiry of the
leave desired to be extended. A written reply either of the grant or refusal of
extension shall be sent to the employee at the address given by him, if such
reply is likely to reach him before the expiry of the leave originally granted to
him.
13.4 If the leave is refused or postponed, the reason for the refusal or postponement,
as the case may be, shall be mentioned in the order, and a copy of the order
given to the applicant.
13.5 No leave or extension of leave shall be deemed to have been granted unless
an order to that effect is passed and communicated to the employee concerned.
13.6 Leave of all kinds cannot be claimed as of right. When the exigencies of the
service so require, discretion to refuse or revoke leave on any description is
reserved to the authority granting it, and an employee already on leave may be
recalled by that authority when it considers this necessary in the interest of the

63
 service. When an employee is called back from leave, the bank will pay his
travelling expenses to and from the place where he was spending is holidays.
The employee will also be entitled to claim travelling expenses of his wife and
children provided they have accompanied him while going to such place or
have gone to such place within a week of his going there and have accompanied
him whilst returning from such place or have returned to the place of work
within a week of his return to that place.
13.7 Gazetted holidays [that is Bank Holidays under the Negotiable Instruments Act]
other than Sundays shall not be prefixed or suffixed to any leave without the
sanction of the competent authority having been first obtained.
12/05-01-1987
An employee who overstays his leave (except under circumstance beyond his control
for which he must tender explanation) shall not be paid his pay and allowance for the
period he over stays and shall further render himself liable to such disciplinary action
as the management may think fit to consider.
13.8 to 13.16/19-10-1966
13.8 Leave earned by an employee lapses on the date on which he ceases to be in
service. Where an employee’s services are terminated owing to retrenchment
he shall be paid his pay and allowances for the period of privilege leave at his
credit.
13.9 Unless he is permitted to do so by the authority which granted him leave, an
employee will not be entitled to return to duty before the expiry of the period of
leave granted to him.
13.10 The first day of an employee’s leave is the working day succeeding that upon
which he makes over charge. The last day of an employee’s leave is the
working day proceeding that upon which he reports his return to duty.
13.11 An employee shall, before proceeding on leave, intimate to the competent
authority his address while on leave and shall keep the said authority informed
of any change in the address previously furnished.
13.12 An employee on leave shall, unless otherwise instructed to the contrary, return
for duty to the place at which he was last stationed.
13.13 The competent authority may require an employee who has availed himself
of leave for reasons of health to produce a medical certificate of fitness before
he resumes duty even though such leave was not actually granted on a Medical
Certificate.

64
13.14 Leave may not be granted to an employee under suspension or against whom
proceedings are pending.
13.15 For the purposes of this Chapter the term “Substantive Pay” wherever it occurs
means the aggregate of (i) basic pay, (ii) dearness allowance, (iii) House rent
allowance, (iv) Special and other allowance, if any (but excluding special pay
drawn as locum tenens and officiating pay, if any) which the workman would
have drawn had he been on duty.
13.16 For the purpose of the chapter, calendar year means the period 1st January
to 31st December, each year.
PRIVILEGE LEAVE
13.17/19-10-1966
The amount of privilege leave earned which shall be on substantive pay, shall be one
month for completed service of 11 months for banks in classes A and B.
V(i)08-11-1973
In partial modification of Clause 13.17 of the Bi-partite Settlement, dated 19-10-1966
calculation of privilege leave earned shall be done @ one day for 11 days of active
service. Provided that fraction of a day of earned leave if any shall be taken as full
day. Such calculation has to be done only for the limited purpose of calculation of
entitlement. The workmen will be eligible for such leave only after the completion of
11 months’ service as laid down in Clause 13.17 of the Bi-partite settlement, dated
19-10-1966 and for calculating privilege leave, all types of leave availed except casual
leave will be excluded.
25/27-03-2000
The following proviso may be added to Clause V(i) of Bipartite Settlement dated 8th
November, 1973:-
Provided that fraction of a day of earned leave, if any, shall be taken as a full day.
The above provision will apply for crediting privilege leave from the Calendar Year
2001.
13.18 to 13.21/19-10-1966
13.18 If leave applied for by an employee has been refused such employee will be
entitled to accumulate leave in excess of the maximum prescribed until such
time when the bank is in a position to grant him leave.

65
13.19 The privilege leave due to an employee is the period which he has earned
diminished by the period of leave actually taken.
13.20 An employee other than a member of the Executive Committee of a registered
trade union of bank employees will not be entitled to take privilege leave on
more than 3 occasions in a calendar year, but there will be no limitations as to
the minimum number of days for which leave may be taken on these occasions.
In determining the number of such occasions the following occasions shall
not be included.
(i) When an employee has proceeded on privilege leave and is recalled to
duty by the bank;
(ii) When an employee has been granted privilege leave on grounds of
sickness in terms of Clause 13.21 below.
13.21 In special circumstances an application may be made for the grant of such
leave on more than three occasions in a calendar year and it will then be in
the absolute discretion of the bank concerned whether to grant such leave or
not.
An employee may avail of privilege leave for a period of more than 4 days at
a time on grounds of sickness on production of medical certificate.
8/29-06-1990
In partial modification of Clause 21 of the Settlement dated 31st October 1979 privilege
leave accruing to an employee on or after 1st January, 1990 shall be allowed to be
accumulation beyond 180 days upto a maximum of 240 days.
ENCASHMENT OF PRIVILEGE LEAVE
15/31-10-1979
(i) Parties agree that workmen would be entitled to encash the accumulated
leave to his credit at the time of retirement.
(ii) Parties further agree that if a workman dies in service, his heirs will be paid
salary for the leave accrued to him at the time of the death.
9/29-06-1990
It is clarified that with effect from 1st January 1990 in terms of clause 15 of the
settlement, dated 31st October, 1979 a workman at the time of his retirement, or his
heirs, in the event of his death would be entitled to encash the accumulated privilege
leave upto the maximum of 240 days.

66
(Note: IBA guidelines -
(i) The benefit of PL Encashment is extended to workmen employees resigning from
the Bank’s service after complying with rules/regulations governing resignation with
effect from 01-04-2004 to the extent of half of such PL standing to the credit of the
employees as on date of cessation of service subject to a maximum of 120 days.
While arriving at half of such PL the fraction so arrived is to be rounded off to preceding
lower number of full days.
(ii) Workmen employees imposed with the punishment of compulsory retirement
interms of the Bipartite Settlement would not be entitled for the benefit of encashment
of accumulated PL to his / her credit with effect from 01-12-2002.)
6 (iii)/16-07-1991
In partial modification of Clause 23(iv) of the Memorandum of settlement, dated
31st October 1979 encashment of privilege leave while proceeding on leave fare
concession shall be permitted as under:-
(a) for availment of LFC under 2 year block - Maximum 15 days either in each block
or 30 days in one block.
(b) for availment of LFC under 4 year block - Maximum 30 days.
(Refer IBA Cir. PD/CIR/76/90/2018 dt. 30-03-2000)
CASUAL LEAVE
13.22/19-10-1966
An employee shall be entitled to casual leave upto a maximum of 12 days in each
calendar year provided that not more than 4 days may be taken continuously and
provided that holidays and Sundays may not be combined with such leave in such a
way as to increase the absence at any one time beyond six days, but if extended
beyond these limits it shall be treated as privilege leave in respect of the entire period.
Casual leave may not be granted in combination with any other leave.
13.23/19-10-1966
Casual leave shall be non-cumulative except as provided in Clause 13.31 under sick
leave. Ordinarily the previous permission of the sanctioning authority shall be obtained
before taking such leave. When this is not possible, the said authority shall be informed
as soon as practicable, in writing or if writing is not possible orally or through any
person of the employee’s absence from work, reason thereof and of the probable
duration of such absence. In any event a written application shall be submitted to
such authority latest on the day the employee resumes duty. In no case will an
employee take casual leave on frivolous grounds.

67
13.24/19-10-1966
Casual leave is only intended to meet special or unforeseen circumstances for which
provision cannot be made by exact rules. Holiday except Saturdays and Sundays
shall not be prefixed or suffixed to casual leave without the previous permission of
the officer granting such leave.
13.25/19-10-1966
Holidays and weekly offs falling within the period of casual leave will not be treated as
a part of casual leave.
13.26/19-10-1966
Casual leave may be taken on grounds of sickness without production of a medical
certificate, provided the total period of sickness does not exceed 4 days.

13.27/19-10-1966

Any absence from duty without satisfying the requisite conditions under which leave
may be taken or obtaining such leave on false grounds would justify any bank, after
giving the employee an opportunity to explain, in not treating the employee as on
casual leave but as being absent without leave on loss of pay and allowances.

13.28/19-10-1966

A workman on casual leave shall be entitled to pay and allowances as if he was on

duty.

4/31-10-1979

It is hereby clarified that casual leave shall be earned by an employee during the first
calendar year of his service on a pro-rata basis at the rate of one day for each
completed month or part thereof.

SICK LEAVE
IX/17-09-1984
In supersession of Clauses 13.29, 13.30, 13.31, 13.32 and 13.33 regarding provision
of Sick Leave in the First Bi-Partite Settlement, dated 19th October 1966 and in
supersession of similar provisions, if any regarding sick leave that are existing in banks,
the following provisions of sick leave shall apply with effect from 1st July 1983.
(1) An employee shall be granted sick leave at the rate of one month for each year
of service subject to a maximum of 18 months during his entire service provided

68
 that where an employee has put in service of 24 years, he shall be eligible to
additional sick leave at the rate of one month for each year of service in excess
of 24 years, subject to three months of additional sick leave

6/28-11-1997

In partial modification of Clause (IX) (2) of the Memorandum of Settlement dated

17th September, 1984, with effect from 1st April, 1997 sick leave admissible for service
in excess of 24 years of service shall be on half substantive pay but shall be permitted
on request on full substantive pay, such leave on full substantive pay being entered
as twice the amount of leave taken in his sick leave account.

27/27-03-2000

In partial modification of Para IX (3) of Bipartite Settlement dated 17th September,

1984, the following provisions shall apply with effect from the date of this
Settlement.

Casual leave not availed by an employee in a Calendar Year shall be converted into
Sick Leave on full substantive pay and such leave shall be over and above the
maximum period provided in Para IX Sub-Paras (1) and (2) of Bipartite Settlement
dated 17-9-1984.

Such leave not exceeding a day if availed on grounds of sickness, shall be allowed
without production of medical certificate.

IX/17-09-1984

(4) All sick leave shall be granted on production of a medical certificate acceptable
to the bank. “An employee may be sanctioned sick leave if the medical certificate
is given by a practitioner of medicine other than allopathic provided he is a
registered medical practitioner”

(IBA Circular No: PD/CIR/76/90/937 Dated 16-08-1989)

EXTRAORDINARY LEAVE

13.34/19-10-1966

Extraordinary leave may be granted to an employee when no ordinary leave is due to

him. Except in exceptional circumstances the duration of extraordinary leave shall
not exceed 3 months on any one occasion and 12 months during the entire period of
an employee’s service.

69
13.35/19-10-1966
A competent authority may grant extraordinary leave in combination with or in
continuation of leave of any other kind admissible to the employee.
13.36/19-10-1966
No pay and allowances are admissible during the period of extraordinary leave and
the period spent on such leave shall not count for increments.
Provided that in cases where the sanctioning authority is satisfied that the leave was
taken on account of illness or for any other cause beyond the employee’s control it
may direct that the period of extraordinary leave may count for increments. Provided
further that in the case of employees who are office bearers of registered trade unions,
increments may be deferred only to the extent that extraordinary leave exceeds
2 months in any incremental year.
MATERNITY LEAVE
30/27-04-2010
Clause 26 of Bipartite Settlement dated 27th March 2000 shall be substituted by the
following:
(a) Maternity leave, which shall be on substantive pay, shall be granted to a female
employee for a period not exceeding 6 months on any one occasion and 12
months during the entire period of her service.
(b) Within the overall period of 12 months, leave may also be granted in case of
miscarriage/abortion/MTP.
(c) Within the overall period of 12 months, leave may also be granted in case of
hysterectomy upto a maximum of 45 days.
(d) Leave may also be granted once during service to a childless female employee
for legally adopting a child who is below one year of age for a maximum period
of two months or till the child reaches the age of one year, whichever is earlier
subject to the following terms and conditions:-
(i) Leave will be granted for adoption of only one child.
(ii) The adoption of a child should be through a proper legal process and the
employee should produce the adoption-deed to the Bank for sanctioning
such leave.
(iii) The temporary and part-time employees are not eligible for grant of leave
for adoption of a child.

70
13.38/19-10-1966
A competent authority may grant leave of any other kind admissible to the employee
in combination with or in continuation of maternity leave if the request for its grant is
supported by sufficient medical certificate.
SPECIAL LEAVE
35/02-06-2005
In supersession of para 13.39 of the 1st Bipartite Settlement dated 19-10-1966, with
effect from the date of the Settlement, Special leave will be allowed to certain
employees for attending meetings and conferences of trade unions of bank employees
as provided below:
a) Principal Office Bearers of All India Upto 21 days in a
Workmen Unions / Associations calendar year
subject to a maximum of -
i) 20 such members in the case of
unions having more than 25% membership.
ii) 15 such members in the case of unions
having less than 25% membership
b) Central Committee Members of All India Upto 17 days in a
Unions / Associations calendar year
subject to a maximum of -
i) 40 such members in the case of
unions having more than 25% membership
ii) 30 such members in the case of unions
having less than 25% membership
c) Office Bears of the executive Committee of the Upto 7 days in a
State or Regional Level Units of All India Workmen calendar year
Unions/ Associations subject to a maximum of -
i) 20 such members in the case of unions
having more than 25% membership.
ii) 15 such members in the case of unions
having less than 25% membership

The benefit of special leave as above shall be available only to those office bearers
nominated for the purpose by the All India Workmen Unions / Associations who are
parties to the Settlement and signing it.

71
QUARANTINE LEAVE
13.41/19-10-1966
In case an employee is absent from duty on account of quarantine, the bank may, at
the request of the employee, treat such absence upto a maximum of three months as
privilege or sick leave if such leave is otherwise permissible.
LEAVE PREPARATORY TO RETIREMENT
13.42/19-10-1966
An employee shall be paid on retirement the pay and allowance for such period for
which the privilege leave was withheld.
SPECIAL LEAVE IN CASE OF INJURIES ON DUTY
18(IV) 31-10-1979
In case of injuries sustained by a workman in course of his duty he shall be fully
reimbursed the medical cost and treatment and / or hospitalisation over and above
his normal entitlement. He shall also be treated on special leave for the period of his
absence required for treatment.
NOTE: PL Encashment to Part-time Employees : Refer Chapter XIX
SPECIAL/SPECIAL CASUAL LEAVES AS PER IBA GUIDELINES (Refer IBA Cirs
PD/MISC/41 dt. 14-09-1982 & PD Cir/76/II(v)2101 dt. 17-01-1991)
A) FOR BLOOD DONATION
One day special casual leave on the day of donation. Employee has to produce a
certificate from the medical officer of the hospital where he has donated blood.
B) FOR EXERCISING FRANCHISE - ELECTION
Where ever the Central or State Government has advised granting of special casual
leave to its employees for exercising their franchise in connection with Parliamentary
or Assembly Elections, special casual leave on the same terms and conditions may
be allowed to the employees of the banks.
C) FOR NON-ATTENDANCE OF OFFICE DUE TO CURFEW
i) Where an employee was not able to attend the Office on account of imposition
of curfew either at the place of residence or at the place of work, the absence
should be treated as special casual leave.
ii) If the curfew was imposed only for a part of the working hours either at the
place of residence or at the place of work, the employees who attended the
office during the non-curfew part of working hours should be treated as having

72
 attended for the full day and the absence of those employes who did not attend
during the non-curfew hours should be adjusted against their usual leaves.
iii) This special casual leave is provided only where it is physically impossible to
attend office. This leave is also granted when it is impossible to reach office
from curfew bound area which falls between the route from residence and
office of the employees and it is also not possible to reach office even avoiding
such route and the Government authorities have not permitted employees to
travel through curfew bound areas.
D) FOR FAMILY PLANNING
Special casual leave is granted in the following cases as per Govt. directives to promote
family planning:
i) 6 days special casual leave to male employees for undergoing sterilisation
(Vasectomy Operation)
ii) 14 days special casual leave for female employees who undergo non puperal/
puperal tubectomy operation.
iii) 1 day special leave to female employees who had IUD insertions.
iv) 7 days special casual leave to male employee whose wife undergoes non-
puperal tubectomy operation subject to the production of medical certificate
from the doctor who has performed the operation, to the effect that the presence
of the employee is essential for the period of leave to look after the wife during
her convalescence after the operation.
v) An employee developing post-operative complication after sterilisation may
be granted special casual leave to the extent of the period for which he or she
is hospitalised for such post operative complications, subject to production of
necessary certificate from the concerned hospital authorities/authorised
medical attendant.
vi) An employee is not entitled to special casual leave after maternity leave, if the
sterilisation operation/recanalisation was done during the maternity leave.
vii) The special casual leave connected with sterilisation, recanalisation under family
welfare programme may be suffixed as well as prefixed to regular leave or
casual leave. However special casual leave cannot be prefixed both to casual
leave and regular leave. Special casual leave may either be prefixed to regular
or to casual leave and not both. Similarly, special casual leave may be suffixed
either to regular leave or to casual leave and not both. The intervening holidays
and/or Sundays be prefixed/suffixed to regular leave as the case may be.
E) FOR ATTENDING COURTS OR ENQUIRIES
Special leave should be granted to employee who is summoned to attend Courts or
departmental enquiries outside the Bank for giving evidence on behalf of the Bank.

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 CHAPTER - VIII
LEAVE FARE CONCESSION
ELIGIBILITY
10.1/19-10-1966
In supersession of paragraph 6.94 of the Desai Award. ‘A’ and ‘B’ Class Banks will
give to full time permanent workmen employed by them leave Fare Concession,
provided they have completed at least 11 months’ active service.
18.2(d)/10-04-1989
Permanent part-time employees drawing scale wages shall be eligible for
leave fare concession and leave encashment on pro-rata basis with effect from
01-04-1989.
PART-TIME EMPLOYEES
The block for leave Fare Concession should begin from 01-11-1987 or date of joining
the service whichever is later. The concept pro rata should apply with reference to
the scale wages at the time of availment.
Leave Fare Concession on Pro rata basis to permanent part-time employee drawing
scale wages would mean prorata distance and not pro rata period of time.
Leave encashment for part-time employee in scale wages will be the same as the
wages drawn by him, i.e. 1/3, 1/2 or 3/4 of the full pay and allowances for the period
the leave is encashed as the case may be
(AS PER IBA CIRCULAR NO : PD/CIR/76/90/937 DATED 16 08-1989)
10.13 (iii)/19-10-1966
If a workman and his wife are employed in the same bank, although each will be
entitled to Leave Fare Concession in his/her own right, the ‘family’ including the
husband and wife taken together shall not be eligible for Leave Fare Concession
more than once in (block period) period.
6(a)/08-11-1983
For the purpose of leave fare concession, the condition of 15 days leave will not be
applicable and it is clarified that the concession will be permitted to the eligible
employees even when they proceed on leave of any kind.

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TRAVEL-PURPOSE
10.2/19-10-1966
Actual return railway fare and steamer fare incurred by the workman for himself and
members of his family (as defined in clause below) for:-
(a) travel from the place of work to the place of his domicile if situated within India
(provided, however, that in the case of those subordinate workmen on the watch
and ward staff, whose domicile is situated in Pakistan, Bhutan, Sikkim or Nepal,
the Leave Fare Concession payable will be the actual return railway fare or
steamer fare from his place of work to the place on the Indian borders nearest
to his place of domicile)
(b) Travel for rest and recuperation from the place of work to any place in India
situated at not more than the under mentioned distances.
DISTANCE AND OPTION
8(i) iv/05-01-1987
(i) An employee shall be permitted to avail of Leave fare concession only once in
every two years to his place of domicile.
(ii) An employee shall be given an option to avail of the LFC once in every 2 years
or 4 years.
Leave Fare Concession
19/ 27-04-2010
(i) In supersession of Paragraph 19 of Bipartite Settlement dated 2nd June 2005,
with effect from the date of this Settlement, leave fare concession payable will
be actual return railway fare or steamer fare incurred by the workman and
members of his family subject to the following:
a) For availment of leave fare concession under a 2 year block for visit to
any place within India, the maximum permissible distance shall be 2500
km. for subordinate staff and 2000 km. for non-subordinate staff.
b) For availment of leave fare concession under a 4 year block for visit to
any place in India, the maximum permissible distance shall be 5000 km.
for subordinate staff and 4000 km. for non-subordinate staff.
(ii) With the effect from the date of settlement, the class of fare to which the workman
and the members of his family would be entitled, shall be as follows:
Subordinate Staff:
AC III Tier for the journey by mail/express train.

75
 Non-subordinate Staff:
AC II Tier for the journey by mail/express train.
Provided further that where the non-subordinate employee and / or members of
his family undertake travel by air either to his place of domicile or to any other
place for rest and recuperation within India, he shall be entitled to be reimbursed
the actual air fare so incurred or the AC II Tier class fare by train by a direct
route in case of travel to place of domicile or to the extent of the maximum
admissible distance in case of travel to any other place for rest and recuperation,
during the two year / four year block respectively, whichever is less.
(iii) An employee and/or members of his family, when availing leave fare concession
may undertake travel by any mode of surface transport between places and the
employee will be eligible to claim in respect of such journey his actual expenditure
or the notional train fare by the entitled class for the distance so travelled,
whichever is less, within his overall entitlement.
For the purpose of this sub-clause, travel by any approved mode of surface
transport would mean such travel undertaken through any public transport or
transport (including taxi) operated by agencies / tour operators approved by
appropriate Government authorities or motorcar owned by the employee with
permission of the Bank.
(iv) By exercising an option anytime during a block of 2 years or 4 years, as the case
may be, an employee can either undertake travel availing of leave fare concession
and claim reimbursement upto his entitlement or to encash the facility for the
concerned block. The option so exercised shall be irrevocable for thhe block
concerned. On opting to encash the facility, he will be entitled to receive a lump
sum equivalent to 75% of notional train fare for the admissible distance (depending
on a 2 year or 4 year block) by the entitled class, subject to deduction of admissible
tax at source. Leave Fare Concession for travel to place of domicile is not
encashable. An employee opting to encash his LFC shall prefer the claim for
himself and his family members only once during the block / term in which such
encashment is availed of. The facility of encashment of privilege leave while availing
of Leave Fare Concession is also available while encashing the facility of LFC.
Provided, however that an employee so encashing the facility of leave fare
concession shall proceed on leave for a minimum period of one day.
(v) All employees will be given an opportunity to exercise an option within 90 days
from the date of this Settlement to avail LFC under two years/four years block
as the case may be. If no option is exercised within the stipulated period, the
earlier option will continue to be operative.

76
6/29-06-1990
From 1st July 1990 a member of subordinate staff may travel by First Class Rail,
while availing of the Leave Fare Concession; reimbursement for the same, however,
shall be restricted to the overall entitlement calculated on the basis of second class
fare for the eligible distance.
10.3/19-10-1966
Provided that if the place of destination is accessible by train or steamer, the cheapest
fare shall be payable, and if it is accessible partly by train or steamer and partly by
road then the cheapest over all fare shall be payable.
IV(iv)/08-11-1973
“Provided further that workmen travelling between Goa, Cochin and Mumbai may
travel by rail or road at their option, even if sea route is available, in which case he will
be paid at the appropriate rate”.
REIMBURSEMENT OF EXPENSES ON ROAD TRAVEL
31/27-04-2010
In substitution of Clause 30 of Bipartite Settlement dated 2nd June 2005 w.e.f.
1st May 2010, where an employee has to travel on duty / LFC between two places he
shall be reimbursed actual road mileage cost or at Rs. 3/- per k.m., whichever is less.
6(b)/08-09-1983
It is clarified that where the children below the age of 12 years are charged bus fares,
the bank may reimburse to the employee full train fares for the journey of such children
by the class to which the employee is entitled upto the permissible distance or the
actual bus fare incurred or road mileage @ Rs. 1.20 per km. whichever is less.
(Now @ Rs. 2/- per km., as per Clause 30/02-06-2005.)
6(vi)/16-07-1991
Conveyance expenses within the prescribed rates, from residence to nearest railway
station/bus stand/airport/docks and vice-versa as also similar expenses at the place
of destination shall be reimbursed under leave fare concession facility within the
overall entitlement of the employee.
10.5/19-10-1966
If a Workman incurs, in case of a journey by train, any reservation or sleeping berth
charges, these will be reimbursed to him in addition to his other entitlements under
Leave Fare Concession.

77
IV(v)/08-11-1973
Clause 10.7 of the Bipartite Settlement, dated 19-10-1966 is modified to read as
follows:
A member of the non-subordinate staff and/or his family when availing of the Leave
Fare Concession laid down under 10.2(b) as modified herein, may travel beyond the
maximum permissible distance laid down therein by a class lower than that to which
he is entitled, in which case he will be paid the actual fare incurred including reservation
and sleeping berth charges, if any (irrespective of the number of stages in which the
journey is undertaken) or the first class fare for the distance permissible under Clause
10.2(b) as modified herein, whichever is less.
(Refer IBA Circular No:- PD/CIR/76/F/1267 dt. 16-11-1994)
TRAVEL AND AVAILMENT BY DEPENDENTS
8(iii)/05-01-1987
Leave Fare Concession may be availed of by the workman’s family for travel without
the attendance of workman. The workman and/or members of his family may visit
the same place or different places of their choice within the permissible distance
(Refer: IBA Cir No. PD/CIR/76/90/187/27-04-1991)
10.8/19-10-1966
Leave Fare Concession may be availed of by the workman’s family for travel prior to
or after the date on which the workman himself avails of the Leave Fare Concession;
provided that, the period between the date of commencement of the journey by the
family and the date on which the workman himself commences his journey does not
exceed four months. On expiry of such period of four months and Leave Fare
Concession not availed of by the workman for himself (unless in the meantime his
leave is refused by the bank) or his family, will lapse.
6(c) 08-09-1993
The Leave Fare Concession may be availed of by the workman’s family for travel
without attendance of workman on either journey, provided that the period between
the date of commencement of the journey and that of return journey shall not exceed
four months. The entitlement of the workman to avail of Leave Fare Concession in
such event of independent journey by the family shall continue to operate.
10.9/19-10-1966
A Workman may claim leave fare concession for members of his family (if they do not
ordinarily reside with him at the place of work) for travel from his place of domicile to
the place of work and return with the workman and vice-versa.

78
6(vii)/16-07-1991
In terms of Clause 5(A) (i) of the Memorandum of Settlement dated 5th January,
1987, it is clarified that the dependent parents, inter alia, shall ordinarily reside with
the employee to be eligible for availment of LFC. An employee may, however, claim
LFC in respect of dependent parents not ordinarily residing with the employee by
giving a suitable declaration and satisfactory evidence of such dependency.
23(e)/31-10-1979
An employee may undertake the whole or part of the journey by air either to his place
of domicile or to a place for rest and recuperation and he will be eligible to claim his
actual expenditure, provided it is less than or equivalent to actual fares by his
entitlement in case of journey to his place of domicile by a direct or regular route or to
the extent of the permissible maximum distances.
10.4/19-10-1966
Each workman shall, if he has not already done so, furnish to the Bank a written
declaration of his place of domicile.
8(iv)/05-01-1987
In case of physically handicapped employee who is appointed under such category
and is eligible for payment of conveyance allowance in terms of the Government
guidelines, a companion may accompany the employee provided he/she does not
have any member of the family in respect of whom he/she can claim the LFC.
(LFC - Tax Exemption - Refer IBA Cir. PD/CIR/76/746/1839 dt. 18-02-1998)
ENCASHMENT OF PRIVILEGE LEAVE
6(iii)/16-07-1991
In partial modification of Clause 23 (d) of the Memorandum of Settlement dated 31st
October, 1979 encashment of privilege leave while proceeding on leave fare
concession shall be permitted as under
(a) For availment of LFC under 2 year block maximum 15 days either in each block
or 30 days in one block.
(b) For availment of LFC under 4 year block maximum 30 days.
8(v)/05-01-1987
It is clarified that encashment of privilege leave upto a maximum limit of one month,
while proceeding on Leave Fare Concession once in four years is a travelling
concession intended to augment cost of Leave Fare Concession otherwise payable.

79
EVIDENCE OF TRAVEL
10.10/19-10-1966
For the purpose of availment of Leave Fare Concession the workman shall produce
satisfactory evidence of the actual expenditure incurring either by way of tickets or
money receipts giving full details.
5/31-10-1979
It is hereby clarified that an employee claiming reimbursement under Leave Fare
Concession shall produce money receipts as evidence and if the money receipts are
not available, any other satisfactory evidence to travel along with a suitable explanation
for the non-production of money receipts.
JOURNEY TICKETS-ADVANCE
10.11/19-10-1966
The fare permissible under Leave Fare Concession will be advanced to the workman
on the following conditions:-
i) In the case of outward journey on his undertaking to produce tickets before
the commencement of the journey or within 7 days from the date of advance,
whichever is earlier. On such evidence being produced the fare for the
return journey will also be advanced subject to the condition that evidence
of the return journey shall be produced to the Bank within 7 days of the
resumption of duties by the workman.
ii) In case members of the workman’s family avail of the Leave Fare Concession
before or after he himself avails of the concession, the appropriate outward
fares will be advanced against his undertaking to produce evidence of travel
within 30 days from the date of the advance. The return fare will also be
advanced subject to the condition that evidence of the return journey is
produced to the bank not later than 30 days from the date of the advance.

SALARY ADVANCE

10.12/19-10-1966

A workman availing of the Leave Fare Concession will, if he so requests, be advanced

any salary falling due during his leave period.

80
ENCASHMENT OF LFC FACILITY

19(iv)/27-04-2010

By exercising an option anytime during a block of 2 years or 4 years, as the case may
be, an employee can either undertake travel availing of leave fare concession and
claim reimbursement upto his entitlement or to encash the facility for the concerned
block. The option so exercised shall be irrevocable for the block concerned. On
opting to encash the facility, he will be entitled to receive a lump sum equivalent to
75% of notional train fare for the admissible distance (depending on a 2 year or
4 year block) by the entitled class, subject to deduction of admissible tax at source.
Leave Fare Concession for travel to place of domicile is not encashable. An employee
opting to encash his LFC shall prefer the claim for himself and his family members
only once during the block / term in which such encashment is availed of. The facility
of encashment of privilege leave while availing of Leave Fare Concession is also
available while encashing the facility of LFC.

Provided, however that an employee so encashing the facility of leave fare concession
shall proceed on leave for a minimum period of one day.

DEFINITION OF FAMILY

18/27-04-2010

a. In substitution of Clause 18 of the Bipartite Settlement dated 2nd June 2005, for
the purpose of medical facilities and for the purpose of leave fare concession,
the expression ‘family’ of an employee shall mean the employee’s spouse, wholly
dependent unmarried children (including step children and legally adopted
children), wholly dependent physically challenged brother / sister with 40% or
more disability, as also parents ordinarily residing with and wholly dependent
on the employee.
b. The term wholly dependent child/parent, physically challenged brother / sister
shall mean such member of the family having a monthly income not exceeding
3500/- p.m.
If the income of one of the parents exceeds 3,500/- p.m. or the aggregate
income of both the parents exceeds 3,500/- p.m., both the parents shall not
be considered as wholly dependent on the employee.
c. A married female employee may include her natural parents or parents - in -
law under the definition of family - but not both - provided that the parents /
parents-in-law are ordinarily residing with and wholly dependent on her.

81
 CHAPTER - IX
MEDICAL AID & EXPENSES
MEDICAL AID (Quantum)
17/27-04-2010
In substitution of Clause 17 of the Bipartite Settlement dated 2nd June 2005, with
effect from 1st November 2007, the reimbursement of medical expenses under medical
aid scheme shall be restricted to an amount of 2,000/- per annum.
For the year 2007, the reimbursement of medical expenses under the medical aid
scheme shall be enhanced proportionately for two months i.e. November and
December 2007.
MEDICAL AID FOR PART TIME EMPLOYEES
XI(c) 08-01-1973
It is agreed that permanent part-time workmen whose normal total hours of work per
week are 6 hours or more will be granted full medical aid with effect from 01-01-1972.
18(2)(a)10-04-1989
Permanent part-time employees drawing scale wages are eligible for leave, medical
aid & uniforms.
20(ii)/27-03-2000
In partial modification of Clause 18.2 of the Bipartite Settlement dated 10th April,
1989, with effect from 1st November, 1999, Part Time employees drawing scale wages
shall also be eligible for reimbursement of Hospitalisation Expenses on pro-rata basis.
15.1 (b)/19-10-1966
In supersession of sub-clause (8) of paragraph 450 of the Sastry Award all workmen
shall submit any bills, etc., against which medical aid is claimed, within six weeks of
the expenses being incurred or of the workmen’s return to duty from sickness,
whichever is later. Banks shall make payment of the bills, if otherwise in order and
within the workman’s entitlement, within four weeks of their presentation to the bank.
18(iii)/31-10-1979
Employees on suspension will be entitled to reimbursement of medical expenses
under medical aid scheme.
XII. 1/17-09-1984
The amount of total expenses from January to December of each calendar year will
be allowed to be accumulated so as not to exceed at any time three times the maximum

82
amount provided under this settlement, subject to explanation below:
EXPLANATION
(i) A workman will qualify for medical aid at the higher rate effective from the same
calendar year if he completes fifth year of service on or before 30th June of that
year and with effect from the next calendar year if he completes the fifth year of
service on or after the 1st July of the year.
For Ex-servicemen employee, their past service is to be added to qualify for the
higher amount
(IBA Circular dated 16-04-1985)
XII. 2/17-09-1984
In partial modification of the Sastry Award paragraph 450(9) and paragraph 11.20 of
the Desai Award and Clause 15.1(b) of the First Bipartite Settlement dated 19th
October 1966, reimbursement of medical expenses of a workman and his family may
be made on the strength of the concerned workman’s certificate of having incurred
such expenses duly supported by a Statement of accounts for the amounts claimed.
11.17/D.A.
It was urged that provisions relating to medical aid and expenses should be available
not merely when a workman falls ill but also when he meets with any accident. In
order to avoid any controversy on the subject, I direct that the provisions of this award
in connection with medical aid and expenses will extend to cases where a workman
meets with an accident and is in need of medical aid.
450 - S.A.
2) Wherever existing facilities in any bank or banks are superior to the provisions
hereinafter made, such facilities should be continued.
3) Wherever possible, banks should appoint or nominate a whole time or part-
time medical practitioner (hereinafter called “authorised doctor”) who shall be
available for consultation and for treatment at stated hours either in his
dispensary or in the premises made available to him by the bank.
4) An employee claiming the benefit of these facilities shall go to an authorised
doctor or such other doctor as he may recommend in writing, providing that
where there is no such authorised doctor appointed by the bank for any place,
the employee can choose any registered medical practitioner practising in the
locality or nearby.

83
5) Except where an authorised doctor treats the workman, all medical bills shall,
in the first instance, be paid by the workman. He can thereafter recover whatever
amounts are permissible from the bank. Bills of authorised doctor shall be paid
by the bank itself.
6) Banks are at liberty to have the bills for treatment submitted by other medical
practitioner where authorised doctor’s are not available for scrutiny and approval
by the banks’ doctors and only the amounts so recommended by them need be
paid.
7) Every workman shall during illness (whether he is on duty or on leave) be entitled
free of charge and upto the limits (provided) to attendance and treatment by the
bank’s authorised doctor or where there is no such doctor, by a registered
medical practitioner of his choice as stated above.
8) All bills submitted for payment shall be accompanied by a certificate from the
doctor concerned for the treatment.

GUIDELINES FOR REIMBURSEMENT OF

HOSPITALISATION EXPENSES
HOSPITALISATION CHARGES
17/14-02-1995
In substitution of Clause 13 of Bipartite Settlement dated 10th April 1989 read with
Clause 5(1) of Bipartite Settlement dated 29th June, 1990, Clause XV of Bipartite
Settlement dated 29th October, 1993, and Clause No. 17 of Bipartite Settlement
dated 14th February 1995 with effect from 1st November, 1994 the reimbursement of
hospitalisation expenses shall be as given in Schedule of this settlement.
Note:
1. Employee shall submit the Bills, etc., against which medical aid is claimed
within 6 weeks of the expenses being incurred or the workman’s return to
duty from sickness which ever is later. Banks shall make payment of the Bills,
if otherwise in order and within the workman’s entitlement within four weeks
of their presentation to the Bank. (15.1(b) Settlement dated 19-10-1966)
2. Cost of Kidney paid to the donor by the employee is not reimbursable. As
regards expenses on hospitalisation of the donor, the same may be considered
only if the donor is a member of the employee’s family as per the definition of
the term family in the Settlement. However, in exceptional cases, the bank
may consider reimbursement of hospitalisation expenses of donor even if he

84
 is not covered by the definition to the extent the same would be reimbursible
in case the donor is a family member. (IBA clarification).
3. Employees on suspension will be entitled to hospitalisation expenses
reimbursement (Clause 18(iii) of Settlement dated 31-10-1979)

4. It would be in order to consider reimbursement of expenses incurred on tests

required to be carried out at pre-post hospitalisation stage under the
hospitalisation scheme. (IBA clarification)

5. For Ex-servicemen employees, their past services is to be added to qualify

for the higher amount (IBA Circular dated 16-04-1985).

6. Workmen on probation are eligible for medical aid and hospitalisation.

SCHEDULE FOR REIMBURSEMENT OF HOSPITALISATION EXPENSES

SCHEDULE V/27-04-2010

1. Hospitalisation expenses will be reimbursed to Award Staff in the bank to the

extent of 100 percent in case of self and 75 percent in case of dependent
members of family subject to the procedures for reimbursement of hospitalisation
expenses as enumerated hereunder:
(a) Hospitalisation Charges to the extent stated above will be reimbursed in
case of all ailments and major accidents which require hospitalisation.
(b) A workman or his dependent family member(s) will be considered to have
been hospitalised only if they are admitted as indoor patient(s) in the
hospital in respect of diseases/accidents as mentioned above in sub-para
(a). However, cases where the patient is admitted as an out-patient and
discharged on the same day after surgical procedures involving advanced
techniques may also be considered for reimbursement of hospitalisation
expenses.
(c) Medical expenses incurred for the hospitalisation will be reimbursed
on the strength of bills/vouchers to the extent of 100% in case of self
and 75% in case of family members subject to limits prescribed here
under.

DEFINITION OF FAMILY

2. For the purpose of medical facilities:

The expression ‘family’ of an employee shall mean the employee’s spouse,
wholly depdendent unmarried children (including step children and legally

85
 adopted children), wholly dependent physically challenged brother/sister with
40% or more disability, as also parents ordinarily residing with and wholly
dependent on the employee.
a) The term wholly dependent child/parent, wholly dependent brother/sister
shall mean such member of the family having a monthly income not
exceeding 3500/- p.m. If the income of one of the parents exceeds
3500/- p.m. or the aggregate income of both the parents exceeds
3500/- p.m., both the parents shall not be considered as wholly dependent
on the employee.
b) A married female employee may include her natural parents or parents-in-
law under the defintiion of family-but not both-provided that the parents /
parents-in-law are ordinarily residing with and wholly dependent on her.
HOSPITALISATION
20/27-04-2010
In substitution of Clause 20 of the Bipartite Settlement dated 2nd June 2005, with
effect from the 1st May 2010, the reimbursement of the hospitalisation expenses shall
be as detailed in Schedule V to this Settlement.
Schedule V/27-04-2010
3. The reimbursement of hospitalisation expenses will be restricted to the
following charges:
Sr.No. Details Extent of reimbursement
3.1 (a) Hospital Registration Fees 100% for self and 75% for
dependent family members
of the amount actually incurred
or 250/- whichever is lower.
(b) Surcharge/tax on hospital bills Proportionate to the extent of the
bill passed by the bank
3.2 Charges for bed per day 100% for self and 75% for
(excluding boarding charges) dependent family members
of the amount actually incurred
or 450/- whichever is lower
3.3 ICU/CCU/Neo-natal Nursery 100% for self and 75% for
dependent family members
of the amount actually incurred
or 550/- per day, whichever
is lower. This is in addition to
bed charges.
86
Sr. No. Details Extent of reimbursement
3.4 Diagnostic material charges, X-rays, As per Annexure-I hereto
Pathological tests, ECGs, etc.
3.5 Medicines, drugs, injections 100% or 75% as the case may
(including disposable syringes) be of actual expenses
bandage and dressing materials,
etc. except tonics/vitamins.
(However, tonics/vitamins which
are prescribed by the attending
doctor and certified as essential
for the period of hospitalisation, may
be considered for reimbursement.)
3.6 Operation charges, etc. As per Annexure-II hereto

3.7 Physician’s and Consultant’s fees per visit:

100% for self and 75% for dependent family members of
the amount actually incurred or the amount as mentioned
below against each item, whichever is lower
Major ‘A’ Class cities viz.
Mumbai, Chennai, Delhi,
Kolkata, Ahmedabad,
Bangalore & Hyderabad, Other Places
per visit per visit
VISIT AT THE CHAMBER
First Consultation 220/- 130/-
Subsequent Consultations 85/- 70/-
VISIT AT RESIDENCE
In case of emergency
leading to Hospitalisation 330/- 210/-
Second Consultation 250/- 165/-
Subsequent Consultations 165/- 110/-
VISIT MADE BY SPECIALISTS AT THE HOSPITAL :- SPECIAL VISIT
During the day time 140/- 95/-
During the night time 330/- 165/-
Routine visits 140/- 95/-

87
4. The workmen or members of their families (as the case may be) are expected
to secure admission in a Government/Municipal Hospital or any ‘private’ hospital
(i.e. hospitals under the management of a trust, Charitable Institution or a religious
mission). The reimbursement will be restricted to the percentage applicable to
the workman/dependent family member, i.e. 100% or 75% of the charges
applicable to the lowest paying bed in such hospitals according to hospital rules
or the maximum amounts mentioned above, whichever is lower.
5. Normally, the workman and members of his family should avail of services of
hospital as mentioned in paragraph 4 above. However, if he feels, that it is un-
avoidable to seek services of a private nursing home/hospital, he can do so in
one of the hospitals/nursing homes, approved by the bank. Reimbursement in
such cases will, however, be restricted to the extent of the amount which would
have been reimbursable in case of admission to a public or private hospital as
mentioned in paragraph 4 above.
6. Medical expenses incurred within 30 days of ‘pre’ and post hospitalisation period
on medical advice, on account of the ailment/disease for which the person was
hospitalised, will be considered as hospitalisation expenses for reimbursement
purpose. However, in cases of hospitalisation involving special or major operations,
medical expenses incurred for a period not exceeding 45 days of post-
hospitalisation will be considered for reimbursement, subject to medical advice.
7. Charges for engaging a nurse/attendant will not be reimbursed. However,
nursing charges, if any charged by hospital authorities in respect of days spent
in ICU/CCU/neo-natal nursery may be considered for reimbursement on the
basis of certificate issued by the hospital authorities and in consultation with
bank’s Medical Officer. Reimbursement in such cases shall be 100% for
workmen and 75% for family members of the actual charges.
HOSPITALISATION CHARGES IN CONNECTION WITH MATERNITY
8. Hospitalisation charges in connection with maternity will not be reimbursable.
However, the expenditure incurred by an employee in cases involving operative
interference because of complicated labour and caesarean operation and
subsequent hospitalisation thereto will be reimbursed under the hospitalisation
scheme to the extent of expenditure incurred in excess of normal maternity
charges and consequent hospitalisation thereto subject to the condition that
such reimbursement shall be 70% of the amount actually incurred or the limits
as per Annexure II hereto, whichever is less.
9. The purchase of drugs/medicines will be restricted to approved chemists and
arrangements will be made by banks wherever possible to make direct payments
to the chemists.

88
10. Banks will have discretion to refuse payment of bills in cases where they are
not satisfied about the genuineness of the bills.
11. AMBULANCE CHARGES
Ambulance charges for removing the workman or his dependent family members
from residence to the hospital/nursing home or from hospital/nursing home to
residence on discharge or from one hospital/nursing home to another hospital/
nursing home within the urban agglomeration or municipal limits may be
reimbursed in full.
Actual expenses incurred on conveyance by mode other than ambulance shall
be reimbursed subject to the maximum as under:-
(i) By public taxi - Actuals subject to maximum of 165/- per trip.
(ii) By autorickshaw - Actual subject to maximum of 85/- per trip.
In case the patient is to be moved to a hospital/nursing home outside the urban
agglomeration/municipal limits, then the expenses incurred on conveyance may
be reimbursed at the rate of 6.00 per kilometer, with a maximum of 1100/-
per trip or the amount actually incurred, whichever is the least.
Normally, services of an ambulance should be availed of. Where ambulance is
not available or the facility of ambulance is not established, public mode of
transport i.e. taxi/autorickshaw could be used. The bank shall consider such
claims on merits and facts.
Abuse of the facility will be dealt with treating such claims as acts of gross
misconduct.
12. DOMICILIARY TREATMENT
Medical Expenses incurred in respect of the following diseases which need
domiciliary treatment as may be certified by the recognised hospital authorities
and bank’s medical officer shall be deemed as hospitalisation expenses and
reimbursed to the extent of 100% in case of a workman and 75% in the case of
his family.
Cancer, Leukaemia, Thalasamea, Tuberculosis, Paralysis, Cardiac Ailment,
Pleuresy, Leprosy, Kidney Ailment, Epilepsy, Parkinson’s Disease, Psychiatric
disorder, Diabetes. Hepatitis-B, Hepatitis-C, Haemophilia, Myaestheniagravis,
Wilson’s disease, Ulcerative Colitis, Epidermolysis bullosa, Venous Thrombosis
(not caused by smoking), Aplastic Anaemia, Psoriasis and Third Degree Burns,
Rheumatoid Arthritis, Hypothyroidism and Hyperthyroidism.

89
 Note:-
(i) The cost of medicines etc. in respect of domiciliary treatment shall be
reimbursed for the period stated in the Specialist’s prescription. If no
period is stated, the prescription for the purpose of reimbursement shall
be valid for a period not exceeding 90 days.
(ii) Expenses incurred on radiotherapy and chemotherapy in the treatment of
cancer and leukaemia shall be considered for reimbursement under
domiciliary treatment to the extent of 100% in case of a workman and
75% in the case of his family.
SYSTEM OF MEDICINE
13. The medical aid and reimbursement of expenses under the hospitalisation
scheme under this Settlement will also be available for medical treatment under
the recognised systems of medicines, viz. Ayurvedic, Unani, Sidha, Homeopathy
and Naturopathy if such treatment is taken in a clinic/hospital recognised by the
Central/State Government. Further, reimbursement shall be limited to such
expenses within the prescribed ceilings as would have been reimbursable in
case the treatment was taken in a Government/Municipal Hospital, subject to
the overall limits under the scheme, i.e. 100% of approved expenses for self
and 75% in case of family.
14. PACKAGE CHARGES
Some hospitals are charging on the basis of ‘package’ for specialised treatment
for diseases pertaining to heart, kidney, coronary, etc. These package charges
generally include all charges pertaining to a particular treatment/procedure
including admission charges, accommodation charges, ICU/ICCU charges,
monitoring charges, operation charges, anesthesia charges, operation theater
charges, procedural charges/Surgeon’s fee, cost of disposables, cost of
consumables like catheters, guide wires, etc., surgical charges and cost of
medicine used during hospitalisation, related routine investigations,
physiotherapy charges etc.
In the following cases, package charges will be reimbursed to the extent of
100% in the case of self and 75% in the case of dependent members of family,
subject to the limits specified here below:
(a) Coronary Bypass Surgery 1,60,000/-
(b) Coronary Angiography 16,500/-
(c) Angioplasty/Stentoplasty 80,000/-
(d) Kidney Transplant 1,80,000/-
(e) Liver Transplant 2,20,000/-

90
Note:
(i) For the above ailments, workmen employees can claim either as per
schedule of expenses prescribed or package charges whenever the
treatment is taken under package charges scheme.
(ii) In the case of stentoplasty, cost of medicated stents(s), wires/balloon,
implanted during surgery may be reimbursed at the rate of 75% for family
members and 100% for workman himself at rates not exceeding the rates
applicable to lowest paying bed of AIIMS, New Delhi, in addition to the
package charges indicated above.
(iii) Liver transplant charges are not reimbursable in cases where damage to
the liver has been caused by alcoholism.

91
 ANNEXURE - I

SCHEDULE FOR REIMBURSEMENT OF CHARGES INCURRED BY

WORKMEN FOR PATHOLOGICAL ETC. INVESTIGATIONS

100% for self and 75% for dependent family

NAME OF THE PROCEDURE members of the amount actually incurred
or the amount as mentioned below against
each item, whichever is lower (Rupees)
CLINICAL PATHOLOGY
URINE EXAMINATION
Urine Routine 45
Urine for Albumin 45
Urine for 17 Ketosteroids 400
Urine Culture 125
Urine for Column Count Test 125
Sensitivity Test 165
Urine for Acid Fast Bacilli (T B Culture) 115
Urine Bile Pigment and Salt 45
Urine Urobilinogen 45
Urine Occult Blood 45
Urine Total Proteins 90
Urine Sodium 90
Urine Chloride 90
Bence Jones Protein 55
STOOL EXAMINATION
Stool Routine 45
Stool Occult Blood 45
Smear Analysis 65
Body Fluids-C.S.F./Plural/Ascitic, etc.
Chemistry, Sugar, Protein, etc. 185
Malignant Cells 150

92
 100% for self and 75% for dependent family
NAME OF THE PROCEDURE members of the amount actually incurred
or the amount as mentioned below against
each item, whichever is lower (Rupees)
HAEMATOLOGY
Blood Count with Indices (Hb, TLC, DLC) 80
Blood Count without Indices (Hb, TLC, DLC) 75
RBC and Hb with Indices 80
RBC and Hb without Indices 60
Total WBC and Differential Count (TC/DC) 60
Blood Smears for parasites (MP, etc.) 45
Peripheral smear examination 50
Blood for Microfilaria 110
Platelet Count 80
Bleeding and Coagulation time (BT CT) 75
Clot Retraction Time 75
Prothrombin Time 85
Erythrocytes Sedimentation Rate
(Westergren’s method) 35
Sedimentation Rate (Both Methods) ESR 35
Hb, TLC, DLC, ESR 95
Blood Culture 175
Clot Culture 175
Glucose Phosphate Dehydrogenase (G & PD) 165
Reticulocyte Count 50
Absolute Eosinophil Count 45
Packed Cell Volume (PCV) 45
R.B.C. Fragility Test 80
L.E. Cell 105

93
 100% for self and 75% for dependent family
NAME OF THE PROCEDURE members of the amount actually incurred
or the amount as mentioned below against
each item, whichever is lower (Rupees)
Haemogram 95
Bone Marrow Smear Examination 225
Partial Thromboplastin 150
BLOOD BANK
Coomb’s Test direct (for coating antibodies) 165
Coomb’s Test (for complete and incomplete
indirect antibodies) 220
Blood Grouping and Rh Factor only
(not for matching) for Non-maternity cases 75
Blood Transfusion per Bottle and Donor’s
fees (including Pathologist’s
attendance and cross-matching) 400
Packed Cell Preparation 280
BIOCHEMISTRY
Blood Urea / Calcium / Phosphorus /
Phosphatase / Sodium / Potassium each 110
Blood Urea Nitrogen 110
Urea Clearance Test 190
Creatinine Clearance Test 190
Serum Proteins or Plasma Proteins 110
Serum Proteins Electrophoresis 220
Blood for Fibrinogen 120
Blood for Creatinine 85
Blood Uric Acid 110
Blood Sugar Curve (Glucose Tolerance Test)
GTC or GTT 310

94
 100% for self and 75% for dependent family
NAME OF THE PROCEDURE members of the amount actually incurred
or the amount as mentioned below against
each item, whichever is lower (Rupees)
CO2 Combining Power of Plasma 145

Blood Cholesterol 85

Blood Protein Bound Iodine (PBI) 330

Blood Chlorides (S Cl) 110

Serum Sodium (S Na) 95

Serum Potassium (S K) 95

Serum Iron (S Fe) 145

Serum Iron Studies 240

Serum Calcium (S Ca) 95

Serum Phosphorous (S.P.) 95

Serum Alkaline Phosphatase 85

Serum Acid Phosphatase 150

Serum Glutamic Oxalic Transaminase

(SG OT) 85

Serum Lipase 145

Serum Glutamic Pyruvic Transaminase

(SG PT) 85

Serum Anylase 215

CPK 345

Glucose 6 Phosphate Dehydrogenase 185

Serum Lactic Dehydrogenase (LDH) 160

Serum Lactic Dehydrogenase with Isoenzyme 415

SMA 12-2 (14 Blood Chemistry) 690

95
 100% for self and 75% for dependent family
NAME OF THE PROCEDURE members of the amount actually incurred
or the amount as mentioned below against
each item, whichever is lower (Rupees)
BACTERIOLOGY & SEROLOGY
Brucella Agglutination Test* 145
Cold Agglutination Test for Virus Pneumonia 145
Paul Bunnel Test 165
C Reactive Proteins** 150
Smear Gram-Strain Examination 55
Sputum Smear A.F.C. Stain 55
V.D.R.L. 85
Widal Test 85
R.A. Test 110
Culture & Sensitivity (other specimens) 165
Vibro Cholera Culture 145
Conjunctival Swab for Microscopic and
Culture Examination 155
Smear Examination for Micro Organism 105
Fluids or Exudates for Malignant Cells 155
* For hospitalised patients only
** For Rheumatic disease to be reimbused for hospitalised patient

X-RAY
Fluroscopy Chest 135
Abdomen AP Erect (One Film) 150
Abdomen Lateral View (One Film) 150
Abdomen for Pregnancy 150
Chest PA View (One Film) 135
Chest Oblique or Lateral (One Film) 150

96
 100% for self and 75% for dependent family
NAME OF THE PROCEDURE members of the amount actually incurred
or the amount as mentioned below against
each item, whichever is lower (Rupees)
Mastoids 150
Extremities, Bones and Joints (One Film) 150
Pelvis (One Film) 150
Paranasal Sinuses (One Film) 150
T.M. Joins (One Film) 150
Abdomen & Pelvis for K.U.B. 250
Skull A.P. & Lateral 250
Spine AP & Lateral 250
Barium Swallow 580
Sinography/Sialography 660
Cystography/Urethrography 990
Arthography 745
Retrograde Pyelography 825
Oral or I.V. Cholecystography 825
Barium Enema 1075
Barium Meal Upper or Lower 1075
Bronchography 1155
I.V. Urography 1155
Myelography 1320
Pneumo Encephalography 990
Barium Meal Complete 1320
Cerebral/Femoral Angiography 1570
C T SCAN / MRI
CT Scan 2750
CT Scan (with contrast) 4400
MRI 5500

97
 100% for self and 75% for dependent family
NAME OF THE PROCEDURE members of the amount actually incurred
or the amount as mentioned below against
each item, whichever is lower (Rupees)
MRI (with contrast) 7200
ULTRA SONOGRAPHY AND ECHOCARDIOGRAPHY
Electro Cardiogram (ECG) 150
Indual Test 155
U C G (Phono-cardiography, Telemetry C,
Cardiac Ex Test, Stress Test) 760
Echo Cardiography 870
Cardio Version 560
Ultra Sonography 435
US Guided Biopsy 580
SKIN
Tuberculin Test (Mantaux) TT or MT 115
Scraping for Fungus 60
Skin Clipping & Smear for Leprosy 115
Nasal smear for Leprosy 95
LIVER FUNCTION TESTS
Thymol Turbidity Test 100
Cephalin Cholesterol Floculation Test 100
Vanden Berghn Reaction and Icterus Index
(Quantitative Bilirubin) 165
Takata Ara Reaction 110
Bromsulphalein Excretion Test
(Excluding injection charges) 240
PLEURAL AND PERICARDIAL AND ASCITIC FLUIDS
Pleural Fluid for Routine Examination 155
Pleural Fluid for Cultural Pericardial
and Ascitic Fluids 155
98
 100% for self and 75% for dependent family
NAME OF THE PROCEDURE members of the amount actually incurred
or the amount as mentioned below against
each item, whichever is lower (Rupees)
SPUTUM EXAMINATION
Sputum Routine 100
Sputum for Acid Fast Bacilli only
(Sputum AF B) 100
Sputum for Culture (Culture for TB) 155
CSF for Diptheria 140
Culture for Diptheria 115
GASTRIC ANALYSIS
Gastric Contents for Routine Analysis
(Gastic Analysis or Fractional Test Meal) 240
Sternal Marrow Routine Cytology
(Bone Marrow) 310
Basal Metabolic Rate (BMR) 275
Lung Function Test 275
PSYCHIATRY TEST
ECT 150
CO2 90
Psychology Testing 150
RIA
TSH, LH, FSH, Prolactin
(for each test) 180
Testosterone 470
Parathyroid 470
Estrogen (Total) 470
ACTH 470

99
 100% for self and 75% for dependent family
NAME OF THE PROCEDURE members of the amount actually incurred
or the amount as mentioned below against
each item, whichever is lower (Rupees)
HBsAg by RIA or EIA 550
FOR SURGICAL INVESTIGATION
& TREATMENT OF CANCER
Scopies and Biopsies 550
CHEMOTHERAPY
Single Drug Therapy per day 1100
Multiple Drug Therapy per day 2200
Infusional Chemotherapy 3300
OXYGEN CHARGES

Oxygen charges shall be reimbursed at the rate of Rs. 40/- per hour subject to a
maximum of Rs. 400/- per day.

Note: Any test/investigation prescribed by the Hospital/Doctor but not included in

the Schedule may be reimbursed at 100% / 75% of the cost of such tests or
the rates of CGHS, whichever is lower.

100
 ANNEXURE - II

OPERATION CHARGES
100% of self and 75% for dependent family members of the amount actually incurred
or the amount as mentioned below against each item, whichever is lower
Special Major Minor
Operation Operation Operation

(a) Operation Theatre Charges 3,300/- 2,200/- 715/-

(b) Anaesthetist’s Charges 3,300/- 2,200/- 715/-
(c) Surgeon’s Fees for Operation
(including Fees for Assistants) 11,000/- 7,150/- 2,310/-
(d) Expenses for dialysis, blood transfusion, Heart valve replacement, angiography,
implanted items during surgery wherever they do not form part of package
charges and pace-maker may be reimbused at the rate of 75% for family
members and 100% for workman himself at rates not exceeding the rates
applicable to lowest paying bed of AIIMS, New Delhi.
Indicative list of Special, Major and Minor operations is appended below:
SPECIAL OPERATIONS:
Cardiac including By-Pass Surgery, Brain, Lung and Cancer Operations, Kidney/
Liver Transplantation Operation, Bone Marrow Transplant and Multiple Fractures
(time taken is more than 3 hours).
MAJOR OPERATIONS:
Kidney Stone (including lithotripsy), Prostate, Thyroid, Caesarean Delivery,
Gastrectomy, Hysterectomy, Fractures, Amputations, S.P. Nailing, Discoidectomy,
Retina Detachment, Liver & Gall Bladder, Plastic Surgery (not for beautification),
Cataract (with IOL), Hernia subject to Bank’s discretion (Time taken approximately
1 to 3 hours).
MINOR OPERATIONS:
D & C, Fissure, Circumcision, Small Hydrocele, Dilatation, Vasectomy, Abscess, Bilat,
Hydrocele, Appendix, Tubectomy, Piles, Fistula, Minor Operations of the Eye, Nose
and Ear (Time taken approximately 60 minutes or less).
Note:- Operative interference done using state-of-the-art medical techniques taking
less than the time indicated as above will not alter the nature of the operations.

101
TREATMENT OF INJURIES - SUSTAINED WHILE ON DUTY
18(iv) 31-10-1979
In case of injuries sustained by a workman in the course of his duty he shall be fully
reimbursed the medical cost and treatment and/or hospitalisation over and above the
normal entitlement. He shall be treated on special leave for the period of his absence
required for treatment.

102
 CIRCULAR LETTER NO. PD/CIR/76/J/1146 DATED 30.9.2000
OF INDIAN BANK’S ASSOCIATION MUMBAI
TO:
DESIGNATED OFFICERS OF ALL MEMBER BANKS WHICH ARE PARTIES TO
THE BIPARTITE SETTLEMENT:
Dear Sirs,
Reimbursement of expenses in case of treatment under Indian System of
Medicine
In terms of the Bipartite Settlement, medical aid and reimbursement of expenses
under the Hospitalisation Scheme are available for medical treatment under other
recognised systems of medicine, viz., Ayurveda, Unani, Homoeopathy and
Naturopathy in addition to Allopathy, provided such treatment is taken in a clinic/
hospital recognised by the Central/State Government.
We enclose, for your ready reference, a list of hospitals/clinics providing treatment
under the above systems of medicine and recognised by the Central Government for
the benefit of its employees (List 1).
Hospitalisation expenses such as charges for bed, doctor’s visits, consultation at the
hospital and residence etc. incurred under these systems of medicine may be
reimbursed subject such percentages and monetary limits for these services as given
in Schedule V of our circular No. PD/CIR/76/J/541dated 20th June, 2000 for workmen
staff.
Similarly if any surgery is done under these systems of medicine, operation charges
upto percentages and monetary limits as given under Annexure II of Schedule V of
the said circular would be admissible in case of workmen.
Since the line of treatment under these traditional/indigenous systems is different
from the Allopathic system for various ailments, the nomenclature/forms used in the
medical record/report/certificate/prescription for pathological tests, investigations etc.
may not equate with those mentioned in annexure I of Schedule V of our circular. In
such cases the bank may have to consult one of the recognised hospitals providing
services under the particular system of medicine, for the purpose of ascertaining the
nature of treatment and tests vis-a-vis those mentioned in the Annexure/Schedule in
Hospitalisation Scheme and consider reimbursement within the prescribed limits.
Hospitalisation scheme permits reimbursement of 100% of the cost of medicines
actually incurred in case of employee and 75% for the dependents of the employee
even in case of treatment under Unani, Homoeopathy, Ayurveda and Naturopathy.

103
Physician’s prescriptions and bills of the pharmacy/drug store will be insisted upon.
In case of any doubt regarding the price of the drugs/medicines for which
reimbursement is claimed, the bank may independently ascertain the maximum price
prescribed for the medicine/drugs as per the latest price list of the pharmacies/drug
manufactures concerned. We understand that price catalogues can be had from the
Government approved Pharmacies. Alternatively they may be required to certify that
the price charged is as per catalogues of manufacturers. A list of such Pharmacies
recognised/approved by the Central Government for its employees, is enclosed
(List II).
The Central Government has issued detailed guidelines in respect of the above for
the benefit of its employees opting for treatment under Ayurveda, Homoeopathy,
Unani, etc. and these have been published in “Swamy’s Compilation of Medical
Attendance Rules”. Banks may like to obtain a copy of the same for more details and
reference, if they so desire, from the following address. It is currently priced at around
Rs. 120/- (1999 edition).
Swamy’s Publishers(P) Ltd. Swamy’s Publishers(P) Ltd.
164, R.K. Mutt Road 4855, 24, Ansari Road
Post Box 2468 Daryaganj
Chennai - 600 028 New Delhi - 110 002
Ph: 044-4938365 Ph: 011-3259256
Fax : 044-4938363 Fax : 011-3281697
The procedure given above shall also be applicable in respect of officer staff.
Yours faithfully,

Sd/-
Allen C.A. Pereira
Personnel Adviser

104
 LIST OF APPROVED AYURVEDIC, UNANI
PHARMACIES/FIRMS
Ahmedabad
Raka Laboratories, Relief Road, Ahmedabad-1
Shri Shankar Ayurvedic Pharmacy, Raipur, Ahmedabad-1
Ahmednagar
Aphali Pharmaceutical Ltd., Station Road, Ahmednagar,
Aphali Pharmaceutical Ltd., Ahmednagar.
Ajmer
Krishnan Gopal Ayurved Bhawan, Kalera, Ajmer
Ram Dayalu Ayurvedic Pharmacy, Ajmer
Aligarh
Dawakhana Tibia College, Muslim University, Aligarh
Alleppey
Ayurvedic Co-operative Pharmacy, Alleppey
Kerala State Homoeopathic Co-operative Pharmacy, Alleppey PO.
Opal Pharmaceuticals, Thondamkulangara, Alleppey
Rani Drug House, Trichur, C/o Martinet Pharmaceuticals, Alleppey,
S.S. Pharmacy, Alleppey.
Alwar
Lokepakarak Ayurvedic Pharmacy, Alwar.
Alwaye
Sanjeeva Pharmacy, Palace Road, Alwaye.
Sh. Varghese J. Kallarakkal, Alwaye.
Thundiyil Pharmacy, Alwaye, Ernakulam.
Kerala Ayurveda Pharmacy Ltd., Aluva, Kerala - 683 101
Amaravathy
Dhanvantharivilasom Vaidyasala, Amaravathy, Cochin.
Ambalapuzha
Vinod Chemicals, Ambalapuzha
Amritsar
Bharat Ayurvedic Pharmacy, Akali Market, Amritsar.
Dhanvantari Ayurvedic Pharmacy, Katra Bhaghian, Amritsar, Kashmir Ayurvedic
Works, Street No. 3, Putligarh, Amritsar.
Shri Krishna Pharmacy Pvt. Ltd., Hall Bazar, Amritsar.
Swastick Drugs Pharmacy, Kerala Moti Ram Lohgarhgate, Amritsar.

105
Aymanam
Jay Pharmaceuticals, Aymanam Village, Kottayam District.
Bangalore
Abhaya Ayurvedic Research Ltd., Kengiri PO, Bangalore South Taluk.
Chandur Pharmacy, No. 8, 7th Cross, Azard Nagar, Bangalore - 18.
Dhoota Papeshwar Ltd., Old Madras Road, Bangalore - 49.
Dr. P.S. Narayan, Jayanagar, Bangalore - 11.
Era Pharma, No. 67, Industrial Areas, Rajajinagar, Bangalore - 10.
Eros Pharmacy, 61, Industrial Areas, Rajajinagar, Bangalore - 10.
Ghousia Dava Khana, No. 3, Veerapilay Street, Bangalore - 11.
Government Central Pharamacy, Jayanagar, Bangalore - 11.
Ideal Indigenous Pharmaceuticals Pvt. Ltd. Yeshwanthpur, B’lore.
Ideal Indigenous Pharmaceuticals, HMT Layout, Bangalore - 54.
Indian Medicine Centre, Kalasipalayam, Bangalore.
Jeevantone Products, NAL, II Stage, Indiranagar, Bangalore - 38.
Mahalaxmi Drug House, Gavipuram Extension, Bangalore - 19.
Makerel Pharmaceuticals, Rajajinagar, Bangalore - 10.
Mruthyunjaya Clinic, No. 34, Maruthiseva Nagar, Bangalore - 53.
Sagar Pharmaceuticals, NR Colony, Bangalore.
Sanjeevini Pharmaceuticals, Madiwals, Bangalore - 29.
Belgaum
Amrut Pharmaceuticals, No. 1554, Maruthi Galli, Belgaum - 2.
Karnataka Ayurvedic Vidyapeetha Pharamacy, Khashagh, Belgaum.
Bavachethana Pharmaceuticals, 390, Station Road, Belgaum.
Berhampur
Utkal Co-operative Ayurvedic Pharmacy, PO Berhampur.
Bhagalpur
Dhanvantari Laboratories, Bhagalpur.
Bhilwara
Sudharshan Ayurvedic Pharmaceuticals, Bhilwara.
Bhopal
Makesh Ayurveda Aushadalaya, Marwari Road, Bhopal.
Bhusaval
Bavashkti Ayurvedic Pharmacy, Bhusaval.
Bijapur
The Nutan Ayurveda Karyalay (P)Ltd., bli-Sholapur Road, Bijapur.

106
Bikaner
Mohta Ayurvedic Rashyanshala, Bikaner.
Sree Narayan Laboratories, Chikitsa Sadan, Bikaner.
Trimoorti Pharmacy, Bikaner.
Bombay
Dhoot Paveshwar Ayurvedic Pharmacy, Panwal, Bombay.
Dhutta Papeshwar Industries(P) Ltd., Panaval.
Zandu Pharmaceutical Works Ltd., Gokhale Road South, Bombay - 25.
Calcutta
Central Research Institute of Homoeopathy, Calcutta.
Dabur (Dr. S.K. Burman) Private Ltd., Calcutta.
Dhanvantari Laboratories, Calcutta.
Sadhana Aushadhalaya (36, B.K. Paul Avenue), Calcutta-5.
Shri Baidyanath Ayurved Bhavan(P) Ltd., Calcutta.
Calicut
See Kozhikode.
Cannanore
Ashoka Pharamacy Ayurvedic Medicines, Cannanore-1.
Sree Sadan Ayurvedic Pharmacy, Cannanore.
Chalakudy
Combined Pharmaceuticals, East Chalakudy, Trichur.
Drug Research Laboratories, Chalakudy, C/o Globe Pharmaceutical.
Indian Ayurvedic Pharmacy, Chalakudy, Trichur.
Jasco Pharma, Chalakudy.
Kandamkulathy Vaidyasala, Chalakudy, Trichur.
New Udaya Pharmacy, XX/358, Market Road, Chalakudy.
Sandal Pharmaceuticals, West Chalakudy, Trichur.
Chelad
Drammavilasom Ayurveda Vaidyasala, Chelad P.O., Kothamangalam.
Chenganacherry
Amba Ayurveda Vaidyasala, Chenganacherry - 1.
Sree Sankara Ayurveda Vaidyasala, Chenganacherry - 2.
Chikmagalur
The Taranatha Rao Aushadhi Works(P) LTd., M.G. Road, Chikmagalur.
Chintaluru
Ventateswara Ayurveda Nilayam, Chintaluru, East Godavari District.

107
Chittilancherry
Narayanan Vaidyan’s Ayurveda Chitkitsalayam, Chittilancherry.
Chowghat
M. M. Balakumaran Arya Pharmacy, Chowghat.
VVK Pharmacy, Chowghat, Trichur.
Chura
Ambejee Laboratories, Sadar Sahar, Chura.
Hanumann Ayurvedic Rasayanashala, Kottargarh, Chura.
Cochin
See Ernakulam.
Coimbatore
The Arya Vaidya Pharmacy Coimbatore Ltd., Coimbatore.
The Arya Vaidya Pharmacy Limited, Trichy Road, Coimbatore.
Herbal Drug House, 31-A, Nehru Street, Ram Nagar, Coimbatore.
Coonoor
Shornur Ayurvedic Pharmacy, Coonoor (Nilgiris).
Dasanapura (Nelamangala Taluk)
The Himalaya Drug Co., Survey No. 11, Mahaligrama, Dasanapura, Hubli.
Delhi/New Delhi
Ambico Pharmaceutical (P) Ltd., Gali Mandir, Delhi.
Arvind Drug House Pvt. Ltd., 104, Ring Road, New Delhi.
Ayurveda Rasayana Pharmacy (Regd.), Karol Bagh, New Delhi.
Bhoshaj Bhawan, 1-21, Krishna Nagar Extension, Delhi.
Dwankhana Bagai, 1470-71, Bazar Chitli Qubar, Delhi-6.
Dev Chemical Works, 47-D, Adarsh Nagar, Delhi.
Hamdard Dawakhana, Lal Kuan, Delhi-6.
Hindustan Dawakhana, Balhi Marna, Delhi-6.
Hindustan Dawakhana, Ballimaran, Gali Quasim Jan, Delhi.
Indian Remedies, 18/868, Dr. Joshi Lane, New Delhi.
Janatha Ayurveda Bhavan, Village and P.O. Dirari, Delhi.
Joggi Ayurvedic Pharmacy, Pahar Ganj, New Delhi.
Kalyan Karni Pharmacy (Regd.), Tis Hazari, Delhi.
Kamal Pharmacy Ayurvedic, 14, Najafgarh, New Delhi.
Maxo Laboratories, 579, Shivaji Marg, New Delhi - 43.
Modern Chemical Works (P) Ltd., Kashmeri Gate, Delhi.
Modgal Pharmaceuticals Dayalpur, Shahdara, Delhi.

108
Multani Ayurvedic Pharmacy, 36-H, Connaught Circus, New Delhi.
Quality Pharma, WZ-41, Manasarovar Garden, New Delhi.
Rajvaid Shital Prasad & Sons, G.T. Road, Shadhdara, Delhi.
Sadar Dawakhana, 855, Kartra Hindu Farash Khana, Delhi.
Shama Laboratories, Lal Kuan, Delhi-6.
The Kaya Maya Ayurvedic Pharmaceutical Works, Karol Bagh, New Delhi.
The Unani & Co., Rahullah Khan Street, Darya Ganj, New Delhi-2.
Unani Products, Jamma Masjid, Delhi-6.
Dindigul
Jaya Pharmacy, Madurai Road, Dindugal.
Ernakulam
Chandra Ayurveda Medical Store, VIII/918, Palace Road, Cochin.
Cochin Arya Vaidyasala, Head Office, Froor, Ernakulam District.
Cochin Arya Pharmacy, VI/95/B, Thiruvarankulam, Ernakulam.
Kalady Pharmacy, Ernakulam.
Karthikeya Pharmacy, Ernakulam.
K.N.S. Products, Ernakulam.
Lal Products, Ernakulam.
Madhava Ayurvedic Pharmacy, Ernakulam.
Mookambika Pharmaceuticals, Ernakulam.
New Udaya Pharmacy and Ayurvedic Lab, Kadvanthara, Cochin.
Princy Pharma, XX/450-A, Karcherrypady West, Palluruthy, Cochin.
Swami Ramananda Memorial Vaidyasramam, Cochin.
Swaraj Pharmacy, 47/1678, Kaloor, Ernakulam.
Swaraja Pharmacy (E.K.M.), HO Broadway, Ernakulam.
Ettumanoor
Ashtanga Ayurveda Chikistsalayam, Ettumanoor, Kottayam District.
Faridabad
Dabur (Dr. S.K. Burman) Private Limited, Faridabad.
Gauhati
Assam Ayurvedic Product, Gauhati-21.
Government Ayurvedic College Rashashala Dept., Gauhati-14.
Guruvayoor
Kadakkat Pharmacy, Guruvayoor, Trichur.
Prakash Pharmacy, Guruvayoor.
Gwalior
Deen Dayal Aushadhalaya, Daulatganj, Gwalior.

109
Haidarpur
Unexo Laboratories, 9/42A, Shalmar PO, Haidarpur.
Hardwar
Risikul Ayurvedic Pharmacy, Hardwar.
Hyderabad
Central Research Institute for Unani, Hyderabad.
Deccan Ayurvedashram Pharmacy, Hyderabad.
Deccan Homoeopathy Pharmacy, Abid Road, Hyderabad.
Irinjalakuda
Deens Medicals, Irinjalakuda.
Udaya Pharmaceutical and Chemical Laboratory, Irinjalakuda.
Jaipur
Ashwani Ayurvedic Bhavan, Jaipur.
Dhanvantry Ayurvedic Pharmacy, Jaipur.
Hind Ayurvedic Pharmacy, Jaipur.
Jagdamba Ayurvedic Bhavan, Jaipur.
Jai Ayurvedic Research Laboratories, Jaipur.
Manmohan Aushdh Bhandar, Tripolia Bazaar, Jaipur.
Sree Ramdev Shidh Harde Pharmacy, Brehmpuri, Jaipur.
Sreeram Basayanshala, Kotputi, Jaipur.
Swami Laxmi Ram Ayurvedic Pharmacy, Jaipur.
Jhansi
Shri Baidyanath Ayurved Bhavan (P) Ltd., Jhansi.
Jodhpur
Sree Madhav Ayurvedic Bhavan, Jodhpur.
Jullunder
D.A. College Pharmacy, Jullunder.
Kailash Ayurvedic Pharmacy (Regd.), Preet Nagar, Jullunder.
Junagadh
Ayurved Vikas Mandal Pharmacy, Junagadh.
Kalady
Aswathy Ayurveda Chikitsalayam, Kalady.
Kancheepuram
Sri Narayana Shevasrama Ayurvedic Pharmacy, Big Kancheepuram.

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Katpadi
Nayak Ayurvedashram, Katpadi.
Kilasevalpatti
Dhanvantary Ayurvedic Pharmacy, Kilasevalpatti.
Kizhakkambalam
Ayurveda Vaidyasala, Kizhakkambalam, Ernakulam District.
Koorkancherry
Mother India Pharmaceuticals, Kookancherry, Trichur.
Kota
Jain Digambar Ayurvedic Pharmacy, Kota.
Sree Vardhman Ayurvedic Pharmacy, Kota.
Kottakal
Arya Vaidyashala, Kottakal.
Kottayam
Balakrishna Pharmacy, Pulimoodu Junction, Kottayam.
Bion Pharmaceuticals, Kottayam.
Panagudy Ayurveda Vaidyasramam, Kottayam.
Sreedhari Vaidyasala, Kurichithanam PO, Kottayam.
Vayaskara Ayurveda Pharmacy, Kottayam.
Kozhikode
Arya Ayurved Pharmacy Pvt. Ltd., Kozhikode.
Arya Vaidya Vilasini Vaidyasala, Kozhikode.
Deesseya Ayurvedic Pharmacy, Poonoor, Unnikulam, Kozhikode.
Kerala Ayurveda Co-operative Pharmacy, Kozhikode.
Kozhikode Ayurvedic Pharmacy & Stores, Manidhira, S. Battery.
Kumbakonam
K.S. & Sons, 66, Manikkaraj Street, Kumbakonam.
Lalitha Pharmacy, Kumbakonam.
Kundal
Swadesh Oushada Bhandara, 1-18, Kundal, South Kanara.
Kunnamangalam
Narayana Ayurvedic Pharmacy, Karantur PO, Kunnamangalam.
Kunnamkulam
Marmani Pharmacy, Korattikarra, Kunnamkulam, Trichur.
Narayaneeyam Vaidyasala, Kunnamkulam, Trichur.

111
Kurukshetra
Shri Krishan Adarsh Ayurvedic Pharmacy, Kurukshetra.
Machilipatnam
Sri Channakesava Ayurvedic Pharmacy, Machilipatnam.
Madras
Ambal Company, 21, Soorammal St., Egmore, Madras - 8.
A.S.M. Pharmacy, Kellys, Madras - 10.
Aryavaidya Pharmacy, Kellys, Madras - 10.
Bahola Agencies, 18, Stringers St., Madras - 1.
Central Research Institute for Siddha, Madras.
Guru Siddha Vaidyasalal, 106, Pondy Bazaar (upstairs), Madras-17.
Indian Medical Practitioners Co-op. Pharmacy Ltd., Madras-41.
Jammi Pharmaceuticals, Madras - 26.
Mashan Homoeopathy, 763, Purusawalkam High Road, Madras - 7.
Swamy Deenddoss Siddha Pharmacy, Pattinathar St., Madras - 19.
Thottam Pharmaceuticals, 52, Sterling Road, Nungambakkam, Madras - 34.
Madurai
Aryavaidya Nilayam, 24, Kakatope Street, Madurai-1.
Bodar Pharmaceuticals, 1, Sarojini St., Ram Nagar, Madurai - 16.
Raja Medicals, 16, Sambandamoorthy St., Madurai-1.
Raja Siddha Marunthagam, 302, Usilai Road, Thirumangalam, Madurai-6.
Mamandoor
Sri Rajeswari Siddha Pharmacy, Mamandoor, Chengalpattu District.
Malamelkavu
Malamel Products, Malamelkavu PO.
Malappuram
Viswakeerthy Ayurvedic Pharmacy, Malappuram.
Mangalore
Bhandarkar Pharmaceuticals, Falnir, Mangalore - 2.
Dhanwantri Medical Hall No. 1-343 (A), Ashoknagar, Mangalore - 6.
Dr. B.V. Mathais, Kavur Cross Road, Bijai, Mangalore.
Ganapaya & Sons, Car Street, Mangalore - 1.
Pandit Ayurvedic Pharma, Lee-well, Mangalore - 1.
Sastries Pharmecuticals M.V. Shastri Sons, Kadri, Mangalore - 2.
Shah and Company (Regd.), Mangalore.

112
Mohan
The Indian Medicines Pharmaceutical Corporation Ltd., Mohan Dist., Almora.
Moovattupuzha
Divakara Pharmacy, Moovattupuzha, Ernakulam District.
Keral Ayurvedic Pharmacy, Moovattupuzha, Ernakulam District.
Pittapillil Vaidyasala, Moovattupuzha.
Mulakuzha
Jyothipharma, Mulakuzha PO, Chengannoor.
Mysore
Charities International (Regd.), Krishnamurthipuram, Mysore-7.
Indomed Laboratories, Industrial Suburb, Mysore-8.
S.N. Pandit & Sons., Mysore Ayurvedic Pharmacy, Mysore-4.
Sree Sitataghava Vaidhyasala, Chamaraja Double Road, Mysore.
The Indian Drug House, 234, Brindavan Extension, Mysore.
The Managing Director of NKCA Pharmacy Ltd., College Road, Mysore-1.
Unani Drug House, Md. 16, New Namboo Bazar, Mysore-1.
Nadia
Petlad Mahal Ayurvedic Pharmacy, Nadia.
Nagercoil
M. Gopalan Asan, 27/241, Brothers Street, Ramavamapuram, Nagercoil.
Nagpur
Shri Baidvanath Ayurveda Bhavan (P) Ltd., Nagpur.
Naini
Shri Baidyanath Ayurveda Bhavan (P) Ltd., Naini (Allahabad).
Nanjangud
The Sadvaidyasala (P) Ltd., Rashtrapathi Road, Nanjangud-1.
Navaikulam
Brothers Pharmaceuticals, Navaikulam, Trivandrum District.
Nedumangad
Bhaskaravilasam Vaidyasala, Nedumangad, Trivandrum District.
Kairaly Ayurvedanilayam, Nedumangad.
Neerkunnam
Sine Pharmaceuticals, Neerkunnam, Alleppey.
North Parur
Aryamrutha Pharmacy, North Parur, Ernakulam.

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Jyothy Ayurveda Pharmacy, VIII/365-A, North Parur, Ernakulam
Sudha Pharmacy, North Parur.
Udhaya Ayurveda Pharmacy, Temple Road, North Parur.
Palai
Aryam Pharmaceuticals, Palai, Kottayam.
Aswini Oushadalayam, Palai, Kottayam.
Palani
Dr. S. Kalimuthu, Old Dharapuram Road, Palani.
Sri Malayappaswami Vaidyasalai, Palani.
Thandaani Vaidyasalai, Palani.
Palghat
Ayurveda Industrial Co-operative Pharmacy Ltd., Palghat.
Herbal Export, CBE, C/o. Aryavaidya Pharmacy Ltd., Palghat.
Kerala Vaidyasala, Palghat.
Malabar Drug House, Kalathil House, Palghat-1.
Pathinettam Kendathil A.V.A. Vaidyasala, Palghat-2.
Sankar Research Pharmacy, Palghat.
Sipha Pharma, Palghat.
Sreelakshmi Pharmaceuticals, Court Road, Palghat-1.
Suresh Products, Palghat District.
Vaidyamadham Vaidyasala and Nursing Home Makhathur, Thrithala, Palghat.
Paprola
Baijinath Pharmaceuticals, Paprola Dist. Kangra.
Parappanangadi
Puthiya Ottayil Abdurahiman IX/580-A, Ullanam PO, Mallapuram Dist.
Patiala
Amar Krishna Pharmacy, Sabzi Mandi, Patiala.
Central Research Institute of Ayurveda, Patiala.
Patna
Shri Baidyanath Ayurveda Bhavan (P) Ltd., Patna.
Pattambi
Amrutha Pharmaceuticals, Pattamni, Palghat District.
Karuna Ayurveda Pharmacy, Pattambi, Palghat.
Mini Pharma, Mini Industrial Estate, Pattambi.
Payyannoor
Sree Sathya Sai Baba Stoes, Payyannoor, Cannanore Dist.

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Peridopi
P.C.A. & Co., Peridopi, Prakasam District.
Perinthalamanna
Lakshmivilasam Aryavaidyasala, Melattur Panchayat, Malapuram Dist.
Perumbavoor
Vijayabharatham Ayurveda Pharmacy, Perumbavoor
Pilani
Shimco Pharmacy, Pilani
Poonithura
Pyary Products, Poonithura, Ernakulam.
Punalur
Jaya Bharatham Arya Vaidyasala, Punalur.
Pune
Ayurveda Rasashala, Pune.
Poona Ras Shala, Pune.
Punkunnam
Gilfa Pharmaceuticals, V/405, Punkunnam, Trichur District.
Velikkattu Ayurvedics, XXX/22, Punkunnam, Trichur District.
Quilandy
Rasmi Pharma, Quilandy, Kozhikode.
Quilon
Aiyyakkara Pharmaceuticals East Kallada, Quilon.
Ayurvedic Co-operative Pharmacy, Quilon.
Govardhan Drug and Pharmaceuticals, Quilon.
Jaya Pharmaceuticals, Quilon-12
M.B.S. Arya Vaidyasala, Edava, Kappil, Quilon.
Sivasadana Medical Trust, Perinadu
Sree Chithra Ayurveda Pharmacy, Quilon
Ranikhet
Co-operative Drugs Factory, Ranikhet.
Ranni
Curomed Pharmaceuticals, Ranni, Quilon District.
Saharanpur
Gurukul Kangri Pharmacy, Hardwar, Saharanpur.

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Salem
Agasthiar Pharmaceuticals, Veterinary Division, Sivathapuram S.O., Salem.
Raja Siddha Vaithiyasalai, 66, Thamanna Chetty Street, Salem.
Shahdara
The Ayurvedic Pharmaceutical Co. Ltd., Shadhdara.
Sherthalai
Durga Industries, Sherthalai, Alleppey.
South Indian Pharmaceuticals, Kesava Garden Estate, Pattanankad.
Sreenikehtan Aryavaidyasala, Sherthalai.
United Pharmaceutical Laboratories, Arookutty, Sherthalai.
Shirhind
Patiala Ayurvedic Pharmacy, Shirhind.
Shoranur
Keraleya Ayurveda Samajam Hospital Pharmacy, Shoranur.
Madhava Pharmacy, Shoranur.
Sikar
Sreevishnu Ayurvedic Pharmacy, Riongs, Sikar.
Solan
Himachal Ayurvedic Pharmaceutical Works, The Mall, Solan.
Surat
Chi Chi Pharmacy, Rani Talao, Surat.
Tellicherry
Malayala Ayurveda Pharmacy, Tellicherry.
Thanjavur
Deen Pharmacy Co., Ayyampet, Thanjavur.
Panchayat Union Central Pharmacy, Thanjavur.
Sri Shanmugananda Siddha Pharmacy, Thanjavur.
Thattarukonam
A.V. Grant-in-Aid Qushadhasala, Thattarukonum, Quilon.
Thodupuzha
Nagarjuna Herbal Concentrates Ltd., Thodupuzha
Thrippunithura
C.K.K.M. Pharmaceuticals, Hill Palace Road, Thrippunithura.
Treato Pharmaceuticals, Cochin Palace Road, Thrippunithura.

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Thiruvalla
Aswathy Pharmaceuticals, Thiruvalla
Tiruchirappalli
Tiruchy Ayurvedic Union (P.) Ltd., 28-A, Tennur Road, Tiruchirappalli-17.
Tirunelveli
Bharathi Pharmacy, Pettai, Tirunelveli.
Jeevan Pharmacy, Tirunelveli.
Seori Laboratories, 46-A, Sivapuram, Tirunelveli.
Trissur
Agada Thanthralayam, Chevur, Trissur-7.
Amba Pharmacy, Trissur.
E.T.M. Vaidyasala, Trissur.
Everest Pharma, Chiyyaram, Trissur.
J.J. Kalan Pharmacy, Trissur.
K.M.A. Oushadasala, Trissur.
K.S.K. Oushadasala, Chempucavu, Trissur.
Keraleeya Ayurveda Sanjam Hospital and Nursing Home, Trissur.
Rajendra Pharmacy, Ayyanthole, Trissur.
S.N.A. Oushadhasala, Trissur.
Sitaraman Anglo-Ayurvedic Pharmacy Limited, Trissur-1.
The Keralavarma Ayurvedic Co-op. Pharmacy Ltd., Trissur.
Vaidyaratnam Oushadasala, Oilur, Trissur.
Veluvaidyar Memorial Vaidyasala, Trissur.
Trivandrum
Central Research Institute for Ayurveda, Chertuthuruthy, Trivandrum.
Gurudeva Ayurveda Pharmacy, Pattom, Trivandrum.
Hindustan Pharmacy, Puthenchantha, Trivandrum.
Jolly Siddha Pharmaceuticals, Cheriyathope, Trivandrum.
Kalpadrumam Ayurvedic Pharmacy, Pazhavangadi, Trivandrum.
Lakshmivilasam Vaidyasala, Trivandrum.
Santhigiri Ayurveda Vaidyasala, Koliyakkodel, Trivandrum.
Saroja Pharmacy, Medical College, P.O. Trivandrum.
Shri Dhanwantari Matam Ayurvedic Pharmacy, Trivandrum.
Sreekumar Pharmaceuticals, Mukkalakkal, Kazhakuttam P.O., Trivandrum.
Sunrise Ayurveda Pharmacy, Vazhuthakkad, Trivandrum.
Trivandrum Ayurvedic Co-operative Pharmacy, Trivandrum.
Vasudeva Vilasam Ayurveda Pharmacy, Fort, Trivandrum.
Vasudeva Vilasam Nursing Home, Trivandrum.

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Tuni
Sri Bhogalingeswara Ayurveda Nilayam, Tuni, East Godavari Dt. Suri Pharmaceuticals,
Tuni, East Godawari Dt.
Tuticorin
IIango Siddha Vaidyasala, Tuticorin.
Udaipur
Ayurvedic Sewashram, Udaipur.
Ras Shala Aushadhashram, Gandal Sadhna Chemicals, Udaipur,
Sadhna Chemicals, Udaipur.
Udupi
Indian Pharmaceuticals Company, Near City Bus Stand, Udupi.
Ulsoorpet
Cartolex Co., No. 86/99, Venloba Rao Lane, UIsoorpet.
Unjiha
Unjiha Pharmacy, Unjiha.
Vadakkancherry
Madhava Anglo Ayurvedic Pharmacy, Vadakkancherry, Trichur.
Valancherry
P.K. Vaidyan’s Vaidyaratnaprabha Vaidyasala, Valancherry.
Valapad
Sehya Ayurveda Products, Valapad, Trichur District.
Varapurzha
S.V.S. Pharmacy, Varapuzha, Ernakulam
Vettiyoorkavu
K.V.M. Pharmacy, Vattiyoorkavu, Trivandrum.
Vattoli
Mini Arya Vaidyasalai, Vattoli, Palghat District.
Vellore
Central Drug and Medical Stores, Vellore
Vijayawada
Indian Medical Practitioners Co-op. Pharmacy and Stores, Vijayawad.
Indian Medicine House, Dhoobagunta Nivas, Vijayawada.
Indian Medicine House, P.B. No. 353, Eluru Road, Vijayawada.
Indian Medicine Industries, Varanasi Street, Vijayawada.

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Indian Medicine Industries, Babaguntanivas, Karl Marx Road, Vijayawada
Man Pharma, Eluru Road, Vijayawada.
National Ayurvedic Pharmacy, Gandhinagar, Vijayawada.
Sri Rammohana Ayurveda Dharma Vaidya Sala Sangham, Viajaywada.

LIST OF HOMOEOPATHIC PHARMACIES

1. L.R. Bhandari & Sons, Hanging Bridge, Darya Ganj, Chowk, Delhi-6.

2. Ramakrishna Pharmaceuticals, 2-2-647/125, Bag Amberpet, Hyderabad (AP).

3. Father Mullers Charitable Institutions, 17-804, Father Muller Road, Kankanady,

Mangalore-3.

4. St. George’s Homoeopathic Pharmacy, Padil, Mangalore.

5. Economic Homoeo Pharmacy, 89, Nethaji Subhas Road (Ground Floor),

Calcutta-1.

6. Hahnemann Publishing Co. (P) Ltd., 169, B.B. Ganguly Street, Calcutta-12.

7. M. Bhattacharya & Co. (P) Ltd., 73, Netaji Subhas Chander Road, Calcutta-12.

8. National HomoeoLaboratory, 110, Acharya Jagdish Bose Road, Calcutta-14.

9. Sunder Homoeo Sadan, 113, Netaji Subhas Road, Calcutta-1.

10. Ganapathi Homoeo Stores and Laboratory, D.No. 9-2-9th Block Maruteru, West
Godavari Dt.
11. New Indian Pharmaceuticals, No. 17-2-1136/2, Madannapet, Hyderabad.

FOREIGN PHARMACISTS

1. Willnian Schivabe (West Germany).

2. Boerioke and Tafel (USA).
3. Dr. Madaus & Co. (West Germany).

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 CHAPTER - X
HOURS OF WORK, OVERTIME, WEEKLY OFF,
STAGGERING, SPLIT DUTY
HOURS OF WORK
14.2/19-10-1966
Subject to the provisions of Clauses 14.3 and 14.12 below, the actual hours of work
of full-time workmen exclusive of recess period shall be as specified below:
Week days
(excluding
Saturdays) Saturdays
(Hours per day)
(a) Workmen other than members of he
Subordinate staff (excluding Category
(b) below) 62 4
(b) Godown-keepers engaged solely
for that work other than those
required to remain in attendance
at the bank during office hours 8 8
(c) Members of the subordinate staff
other than Drivers and Watch and
Ward Staff 7 42
(d) Drivers 72 5

14.3/19-10-1966
(a) The provisions regarding hours of work and overtime shall not apply to godown-
keepers and godown-watchmen who are similarly excluded by the Labour
Appellate Tribunal in paragraphs 194 and 195 of its Decision dated 28th April,
1954. Such workman shall be paid an “Other Allowance” of 25/- per month, if
he is a godown-keeper and 15/- per month, if he is a godown-watchman.
(b) At places where an enactment governing working hours and over time of godown-
keepers and godown-watchmen is in force, or subsequently comes into force,
such workmen shall be governed by the provisions of such enactment and the
“Other Allowance” mentioned is sub-clause (a) of this Clause shall not be payable
to them.

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14.5/19-10-1966
(c) The hours of work of a member of the watch and ward staff shall be 8 hours in
a period 24 hours PROVIDED that the hours of work of a ‘Watchman-cum peon’
for the period during which he is required to work as a peon, as also of a peon,
for the period during which he is required to work as a ‘Watchman’ or ‘Armed
Guard’ shall be the same as those laid down in Clause 14.2(c) above.
STAGGERING OF WORKING HOURS/CHANGE IN THE WEEKLY HOLIDAY
11.1/17-09-1984 and 14.5/19-10-1966
The banks will be at liberty to fix at their discretion the actual timings of work, provided
the maximum number of hours of work applicable are being observed. It is agreed
that any change made by the bank in the actual timings of work of any workman for
staggering purposes as also any change in the weekly holiday of any workman
consequent upon a change made by the bank in the weekly holiday of a branch/office
will not require a notice of change under Section 9-A of the Industrial Disputes Act,
1947. Sufficient advance intimation of such change in actual timings of work will,
however, be given to the workman concerned.
OVERTIME
14.6/19-10-1966
The banks can require a workman, without his consent, to work beyond the aforesaid
hours of work prescribed for him (called overtime work for the purposes of this
Settlement) subject, however that such overtime work shall not exceed 175 hours in
any calendar year. As far as possible, prior intimation for overtime work will be given
to the workman concerned, before overtime work is to begin.
14.7/19-10-1966
To regulate the proper distribution of such overtime work the management may in
their discretion, prescribe from time to time, within aforesaid overall annual limit of
175 hours, a monthly or quarterly limit beyond which a workman shall not be required
to do overtime work. No bank shall pay to any workman Overtime Allowance in
excess of 175 hours.
14.10/19-10-1966
For the first one-quarter of an hour of overtime work (herein after called the cushioning
period) on any working day, there shall be no payment for the workmen other than
members of the Subordinate staff. If, however, the overtime work extends beyond
the cushioning period, overtime payment shall be made for the whole period of overtime

121
work including the cushioning period. There will be no such cushioning period for
work done on Sundays and holidays, there will be no such cushioning period for
members of the subordinate staff.
14.11/19-10-1966
The first quarter of an hour of overtime work, if not paid for as provided above, shall
not be taken into account for the purpose of the prescribed annual overtime limit of
175 hours.
14.12/19-10-1966
Part-time workmen, bank workmen engaged in domestic service, gardeners and
sweepers are excluded from the scope of the provisions regarding working hours
and overtime contained in this Chapter.
14.14/19-10-1966
Overtime work shall be paid for at the rates mentioned below:-
% of hourly emoluments
Weekdays Saturdays
(excluding Saturdays (excluding
and holidays) holidays)
Workmen other than members
of Subordinate Staff:
First two quarter hours of overtime work @100 @100
next four quarter hours of overtime work @170 @170
next four quarter hours of overtime work @200 @170
rest of the overtime work @200 @200
Subordinate Staff:
First four quarter hours of overtime work @150 @150
next four quarter hours of overtime work @200 @170
rest of the overtime work @200 @200

14.15/19-10-1966 and XI.1/17-09-1984

For the work done on Sundays or any other weekly off day and holidays, to which he
may be entitled, a workman (including a peon who is asked to work as a watchman
on such days) will be paid for the entire period of work at 200% of his hourly
emoluments, unless any such day happens to be a working day for him.

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14.16/19-10-1966
For the purpose of calculating the amount payable for overtime work
(a) Work done for less than full quarter of an hour shall be deemed to be work done
for quarter of an hour;
(b) the expression “emoluments” shall mean aggregate of basic pay, special pay (if
any), officiating pay (if any) and dearness allowance.
(c) every month shall be deemed to consist of 150 working hours so that the monthly
emoluments payable per hour will be deemed to be 1/150th of the monthly
emoluments for all workmen.
14.17/19-10-1966
A workman who is guilty of any mistake which has resulted in his doing overtime work
will not be entitled to receive payment for such overtime work. Before, however, a
workman is held not to be so entitled, he must be given an opportunity at a suitable
time to explain his lapse and to show cause why he should not be considered to be
disentitled to receive such payment.
14.18/19-10-1966
Where the work entrusted to a workman on outstation duty is such that it does not
involve night stay and enables him to return to headquarters the same day, but the
“spread-over” of his work (i.e. the period between the time when he commences
work on that day and the time at which he returns to his place or work from outstation
duties) exceeds his normal working hours including the recess interval, appropriate
allowance has been provided in the proviso to Clause 9.13 of this Settlement.
In such cases the workmen concerned shall not be entitled to overtime allowance.
GENERAL
14.4/19-10-1966
There shall be a recess for lunch which shall not be less than half an hour and not
more than one hour on week days (excluding Saturdays) subject, however, to the
requirements of any statutory provisions like the Shops and Commercial
Establishments Act. Primarily it will be for the workmen to decide the actual length of
recess within the limit fixed as aforesaid and the majority decision of the workmen in
any branch or establishment shall be adopted in case of difference of opinion with the
management. Where, by any arrangement with the Bank, recess is availed of by any
workman or workmen on Saturdays, such recess shall be duly marked in the
Attendance Register.

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14.8/19-10-1966
Normally, the total period of work including overtime shall not, on any day, exceed, in
the case of workman other than members of the subordinate staff, 82 hours, and in
the case of the members of the subordinate staff, 9 hours, excluding the period of
recess. In the case, however, of an emergency, of which a responsible officer of the
bank concerned shall be the sole judge, or when in the case of the subsidiaries of the
State Bank of India, the exigencies of Government work at the close of the financial
year so require, a workman can be required to work in excess of the aforesaid hours.
The provisions herein shall be subject to the provisions of any law relating to the
ceiling on the hours of work or overtime applicable to the establishment concerned.
14.9/19-10-1966
Any days declared as holidays under the Negotiable Instruments Act, 1881 for half-
yearly and yearly closing of accounts shall be deemed to be normal working days for
all workmen employed in all banks.
14.19/19-10-1966
The provisions of this Chapter shall be subject to the provisions made by or under
any enactment applicable to the establishment concerned.
PAYMENT OF OVERTIME ALLOWANCE
14/27-04-2010
The overtime allowance paid to the employees for the overtime work performed uptil
the date of this settlement shall not be recalculated on account of this Settlement.

BUSINESS HOURS

31/27-03-2000

In supersession of clause 22(b) of the Bipartite Settlement dated 10th April, 1989, it is
agreed that it is the managements’ prerogative to introduce extended business hours,
shift system in branches, and seven day banking modules depending upon business
potential, the needs and aspirations of the customers, etc. without affecting the total
working hours of employees subject to statutory provisions of Shops and
Establishments Act, wherever applicable.

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 CHAPTER - XI
DISCIPLINARY ACTION AND PROCEDURE THEREFOR

MOS/10-04-2002
I. The provisions of the said Awards, the First Bipartite Settlement dated 19.10.1966
and/or other subsequent Settlements dated 11.11.1966, 14.12.1966, 23.12.1966,
31.10.1979, 22.11.1979, 28.11.1981, 8.9.1983, 17.9.1984 and 14.2.1995
hereinafter collectively referred to as the said Settlements shall stand superseded
and substituted by and in the manner detailed hereunder :-
DISCIPLINARY ACTION AND PROCEDURE THEREFOR
1. A person against whom disciplinary action is proposed or likely to be taken
shall in the first instance, be informed of the particulars of the charge against
him and he shall have a proper opportunity to give his explanation as to such
particulars. Final orders shall be passed after due consideration of all the relevant
facts and circumstances. With this object in view, the following shall apply.
2. By the expression “offence” shall be meant any offence involving moral turpitude
for which an employee is liable to conviction and sentence under any provision
of Law.
3. a) When in the opinion of the management an employee has committed an
offence, unless he be otherwise prosecuted, the bank may take steps to
prosecute him or get him prosecuted and in such a case he may also be
suspended.
b) If he be convicted, he may be dismissed with effect from the date of his
conviction or be given any lesser form of punishment as mentioned in
Clause 6 below.
c) If he be acquitted, it shall be open to the management to proceed against
him under the provisions set out below in Clauses 11 and 12 infra relating
to discharges. However, in the event of the management deciding after
enquiry not to continue him in service, he shall be liable only for termination
of service with three months’ pay and allowances in lieu of notice. And he
shall be deemed to have been on duty during the period of suspension, if
any, and shall be entitled to the full pay and allowances minus such
subsistence allowance as he has drawn and to all other privileges for the
period of suspension provided that if he be acquitted by being given the

125
 benefit of doubt he may be paid such portion of such pay and allowances
as the management may deem proper, and the period of his absence
shall not be treated as a period spent on duty unless the management so
directs.
d) If he prefers an appeal or revision application against his conviction and is
acquitted, in case he had already been dealt with as above and he applies
to the management for reconsideration of his case, the management shall
review his case and may either reinstate him or proceed against him under
the provisions set out below in Clauses 11 and 12 infra relating to discharge,
and the provision set out above as to pay, allowances and the period of
suspension will apply, the period up-to-date for which full pay and
allowances have not been drawn being treated as one of suspension. In
the event of the management deciding, after enquiry not to continue him
in service, the employee shall be liable only for termination with three
months’ pay and allowance in lieu of notice, as directed above.
4. If after steps have been taken to prosecute an employee or to get him prosecuted,
for an offence, he is not put on trial within a year of the commission of the
offence, the management may then deal with him as if he had committed an act
of “gross misconduct” or of “minor misconduct”, as defined below; provided that
if the authority which was to start prosecution proceedings refuses to do so or
comes to the conclusion that there is no case for prosecution it shall be open to
the management to proceed against the employee under the provisions set out
below in Clauses 11 and 12 infra relating to discharge, but he shall be deemed
to have been on duty during the period of suspension, if any, and shall be
entitled to the full wages and allowances and to all other privileges for such
period. In the event of the management deciding, after enquiry, not to continue
him in service, he shall be liable only for termination with three months’ pay and
allowances in lieu of notice as provided in Clause 3 above. If within the pendency
of the proceedings thus instituted he is put on trial such proceedings shall be
stayed pending the completion of the trial, after which the provisions mentioned
in Clause 3 above shall apply.
GROSS MISCONDUCT
5. By the expression “gross misconduct” shall be meant any of the following acts
and omissions on the part of an employee:
a) engaging in any trade or business outside the scope of his duties except
with the written permission of the bank;

126
b) unauthorised disclosure of information regarding the affairs of the bank or
any of its customers or any other person connected with the business of
the bank which is confidential or the disclosure of which is likely to be
prejudicial to the interests of the bank;
c) drunkenness or riotous or disorderly or indecent behavior on the premises
of the bank;
d) willful damage or attempt to cause damage to the property of the bank or
any of its customers;
e) willful insubordination or disobedience of any lawful and reasonable order
of the management or of a superior;
f) habitual doing of any act which amounts to “minor misconduct” as defined
below, “habitual” meaning a course of action taken or persisted in,
notwithstanding that at least on three previous occasions censure or
warnings have been administered or an adverse remark has been entered
against him;
g) willful slowing down in performance of work;
h) gambling or betting on the premises of the bank
i) speculation in stocks, shares, securities or any commodity whether on his
account or that of any other persons;
j) doing any act prejudicial to the interest of the bank or gross negligence or
negligence involving or likely to involve the bank in serious loss;
k) giving or taking a bribe or illegal gratification from a customer or an
employee of the bank;
l) abetment or instigation of any of the acts or omissions above mentioned.
m) Knowingly making a false statement in any document pertaining to or in
connection with his employment in the bank.
n) Resorting to unfair practice of any nature whatsoever in any examination
conducted by the Indian Institute of Bankers or by or on behalf of the bank
and where the employee is caught in the act of resorting to such unfair
practice and a report to that effect has been received by the bank from the
concerned authority.
o) Resorting to unfair practice of any nature whatsoever in any examination
conducted by the Indian Institute of Bankers or by or on behalf of the bank
in cases not covered by the above Sub-Clause(n) and where a report to

127
 that effect has been received by the bank from the concerned authority
and the employee does not accept the charge.
p) Remaining unauthorisedly absent without intimation continuously for a
period exceeding 30 days.
q) Misbehaviors towards customers arising out of bank’s business.
r) Contesting election for parliament / legislative assembly / legislative council
/ local bodies / municipal corporation / panchayat, without explict written
permission of the bank.
s) Conviction by a criminal Court of Law for an offence involving moral
turpitude.
t) Indulging in any act of ‘sexual harassment’ of any woman at her workplace.
Note : Sexual harassment shall include such unwelcome sexually determined
behaviour (whether directly or otherwise) as
a) physical contact and advances;
b) demand or request for sexual favours;
c) sexually coloured remarks;
d) showing pornography; or
e) any other unwelcome physical verbal or non-verbal conduct of a
sexual nature.
u) (For State Bank of India)
The giving or taking or abetting the giving or taking of dowry or demanding
directly or indirectly from the parents or guardians of a bride or bridegroom,
as the case may be, any dowry.
Explanation - For the purpose of sub-clause (u) the word ‘dowry’ has the
same meaning as in the “Dowry Prohibition Act, 1961”
6. An employee found guilty of gross misconduct may:
a) be dismissed without notice; or
b) be removed from service with superannuation benefits i.e. Pension and /
or Provident Fund and Gratuity as would be due otherwise under the Rules
or Regulations prevailing at the relevant time and without disqualification
from future employment; or
c) be compulsorily retired with superannuation benefits i.e. Pension and / or

128
 Provident Fund and Gratuity as would be due otherwise under the Rules
or Regulations prevailing at the relevant time and without disqualification
from future employment; or
d) Be discharged from service with superannuation benefits i.e. Pension and
/ or Provident Fund and Gratuity as would be due otherwise under the
Rules or Regulations prevailing at the relevant time and without
disqualification from future employment; or
e) be brought down to lower stage in the scale of pay up to a maximum of
two stages; or
f) have his increment/s stopped with or without cumulative effect; or
g) have his special pay withdrawn ; or
h) be warned or censured, or have an adverse remark entered against him;
or
i) be fined.
MINOR MISCONDUCT
7. By the expression “minor misconduct” shall be meant any of the following acts
and omissions on the part of an employee:
a) absence without leave or overstaying sanctioned leave without sufficient
grounds;
b) unpunctual or irregular attendance;
c) neglect of work, negligence in performing duties;
d) breach of any rule of business of the bank or instruction for the running of
any department;
e) committing nuisance on the premises of the bank;
f) entering or leaving the premises of the bank except by an entrance provided
for the purpose ;
g) attempt to collect or collecting moneys within the premises of the bank
without the previous permission of the management or except as allowed
by any rule or law for the time being in force;
h) holding or attempting to hold or attending any meeting on the premises of
the bank without the previous permission of the management or except in

129
 accordance with the provisions of any rule or law for the time being in
force;
i) canvassing for union membership or collection of union dues or
subscriptions within the premises of the bank without the previous
permission of the management or except in accordance with the provisions
of any rule or law for the time being in force;
j) failing to show proper consideration, courtesy or attention towards officers,
customers or other employees of the bank, unseemly or unsatisfactory
behaviour while on duty;
k) marked disregard of ordinary requirements of decency and cleanliness in
person or dress;
l) incurring debts to an extent considered by the management as excessive;
m) resorting to unfair practice of any nature whatsoever in any examination
conducted by the Indian Institute of Bankers or by or on behalf of the bank
in cases not covered by sub-clause (n) under ‘Gross Misconduct’ and
where a report to that effect has been received by the bank from the
concerned authority and the employee accepts the charge;
n) refusal to attend training programmes without assigning sufficient and valid
reasons;
o) Not wearing, while on duty, identity card issued by the bank;
p) Not wearing, while on duty, the uniforms supplied by the bank, in clean
condition.
8. An employee found guilty of minor misconduct may :
a) be warned or censured ; or
b) have an adverse remark entered against him; or
c) have his increment stopped for a period not longer than six months.
9. A workman found guilty of misconduct, whether gross or minor, shall not be
given more than one punishment in respect of any one charge.
10. In all cases in which action under Clauses, 4, 6 or 8 may be taken, the
proceedings held shall be entered in a book kept specially for the purpose, in
which the date on which the proceedings are held, the name of the employee
proceeded against, the charge or charges, the evidence on which they are

130
 based, the explanation and the evidence, if any, tendered by the said employee,
the finding or findings, with the grounds on which they are based and the order
passed shall be recorded with sufficient fullness, as clearly as possible and
such record of the proceedings shall be signed by the officer who holds them,
after which a copy of such record shall be furnished to the employee concerned
if so requested by him in writing.
11. When it is decided to take any disciplinary action against an employee such
decision shall be communicated to him within three days thereof.
12. The procedure in such cases shall be as follows:-
(a) An employee against whom disciplinary action is proposed or likely to be
taken shall be given a charge-sheet clearly setting forth the circumstances
appearing against him and a date shall be fixed for enquiry, sufficient time
being given to him to enable him to prepare and give his explanation as
also to produce any evidence that he may wish to tender in his defence.
He shall be permitted to appear before the Officer conducting the enquiry,
to cross-examine any witness on whose evidence the charge rests and to
examine witnesses and produce other evidence in his defence. He shall
also be permitted to be defended -
(i) (x) by a representative of a registered trade union of bank employees
of which he is a member on the date first notified for the
commencement of the enquiry.
(y) where the employee is not a member of any trade union of bank
employees on the aforesaid date, by a representative of a
registered trade union of employees of the bank in which he is
employed :
OR
(ii) at the request of the said union by a representative of the state
federation or all Indian Organisation to which such union is affiliated;
OR
(iii) with the Bank’s permission, by a lawyer.
He shall also be given a hearing as regards the nature of the proposed
punishment in case any charge is established against him.,
(b) Pending such inquiry or initiation of such inquiry he may be suspended,
but if on the conclusion of the enquiry it is decided to take no action against

131
 him he shall be deemed to have been on duty and shall be entitled to the
full wages and allowances and to all other privileges for the period of
suspension; and if some punishment other than dismissal is inflicted the
whole or a part of the period of suspension, may, at the discretion of the
management, be treated as on duty with the right to a corresponding portion
of the wages, allowances, etc.
(c) In awarding punishment by way of disciplinary action the authority
concerned shall take into account the gravity of the misconduct, the
previous record, if any, of the employee and any other aggravating or
extenuating circumstances, that may exist. Where sufficiently extenuating
circumstances exist the misconduct may be condoned and in case such
misconduct is of the “gross” type he may be merely discharged, with or
without notice or on payment of a month’s pay and allowances, in lieu of
notice. Such discharge may also be given where the evidence is found to
be insufficient to sustain the charge and where the bank does not, for
some reason or other, think it expedient to retain the employee in question
any longer in service. Discharge in such cases shall not be deemed to
amount to disciplinary action.
(d) If the representative defending the employee is an employee of the same
bank at an outstation branch within the same State, he shall be relieved
on special leave (on full pay and allowances) to represent the employee
and be paid one return fare. The class of fare to which he will be entitled
would be the same as while travelling on duty. In case of any adjournment
at the instance of the bank/enquiry officer, he may be asked to resume
duty and if so, will be paid fare for the consequential journey. He shall
also be paid full halting allowance for the period he stays at the place of
the enquiry for defending the employee as also for the days of the journeys
which are undertaken at the bank’s cost.
Explanation;
‘State’ for the purpose, shall mean the area which constitutes a political State,
but this explanation will not apply to SBI.
(e) An enquiry need not be held if:
(i) the bank has issued a show cause notice to the employee advising
him of the misconduct and the punishment for which he may be
liable for such misconduct;

132
 (ii) the employee makes a voluntary admission of his guilt in reply to the
aforesaid show cause notice; and
(iii) the misconduct is such that even if proved the bank does not intend
to award the punishment of discharge or dismissal.
However, if the employee concerned requests a hearing regarding the nature
of punishment, such as hearing shall be given.
(f) An enquiry need not also be held if the employee is charged with minor
misconduct and the punishment proposed to be given is warning or
censure. However,
(i) The employee shall be served a show cause notice advising him of
the misconduct and the evidence on which the charge is based ;
and
(ii) The employee shall be given an opportunity to submit his written
statement of defence, and for this purpose has a right to have access
to the documents and material on which the charge is based;
(iii) If the employee requests a hearing such a hearing shall be given
and in such a hearing he may be permitted to be represented by a
representative authorised to defend him in an enquiry had such an
enquiry been held.
(g) Where an employee is charged with a minor misconduct and an enquiry is
not held on two previous occasions, an enquiry shall be held in respect of
the third occasion.
13. Where the provisions of this Settlement conflict with the procedure or rules in
force in any bank regarding disciplinary action, they shall prevail over the latter.
There may, in such procedure, or rules, exist certain provisions outside the
scope of the provisions contained in this Settlement enabling the bank to dismiss,
warn, censure, fine an employee or have his increment stopped or have an
adverse remark entered against him. In all such cases also the provisions set
out in Clauses 10 and 11 above shall apply.
14. The Chief Executive Officer or the Principal Officer in India of a bank or an
Alternate Officer at the Head Office or Principal Office nominated by him for the
purpose shall decide which officer (i.e. the disciplinary authority) shall be
empowered to take disciplinary action in the case of each office or establishment.
He shall also decide which officer or body higher in status than the officer
authorized to take disciplinary action shall act as the appellate authority to deal

133
 with or hear and dispose of any appeal against orders passed in disciplinary
matters. These authorities shall be nominated by designation, to pass original
orders or hear and dispose of appeals from time to time and a notice specifying
the authorities so nominated shall be published from time to time on the bank’s
notice board.
It is clarified that the disciplinary authority may conduct the enquiry himself or
appoint another officer as the Enquiry Officer for the purpose of conducting an
enquiry.
The appellate authority shall, if the employee concerned is so desirous, in a
case of dismissal, hear him or his representatives before disposing of the appeal.
In cases where hearings are not required, an appeal shall be disposed of within
two months from the date of receipt thereof. In cases where hearings are required
to be given and requested for, such hearings shall commence within one month
from the date of receipt of the appeal and shall be disposed off within one
month from the date of conclusion of such hearings. The period within which
an appeal can be preferred shall be 45 days from the date on which the original
order has been communicated in writing to the employee concerned.
15. Every employee who is dismissed or discharged shall be given a service
certificate, without avoidable delay.
16. Any notice, order, charge sheet, communication or intimation, which is meant
for an individual employee, shall be in a language understood by the employee
concerned. In the case of an absent employee notice shall be sent to him by
registered post with acknowledgment due. If an employee refuses to accept
any notice, order, charge-sheet, written communication or written intimation in
connection with disciplinary proceedings when it is sought to be served upon
him, such refusal shall be deemed to be good service upon him, provided such
refusal takes place in the presence of at least two persons including the person
who goes to effect service upon him. Where any notice, order, charge-sheet,
intimation or any other official communication which is meant for an individual
employee is sent to him by registered post acknowledgement due at the last
recorded address communicated in writing by the employee and acknowledged
by the bank, the same is to be deemed as good service.
DATE OF EFFECT
The provisions under this Memorandum of Settlement shall come into effect from the
date of the Settlement and shall continue to govern and bind the parties until the
Settlement is terminated by either party giving to the other a statutory notice as
prescribed in law for the time being in force.

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UTILISATION OF PROCEEDS OF FINE
565/SA
1. No fine shall be imposed on a workman until he has been given an
opportunity of showing cause against the fine.
2. Every Bank must keep a register of fines and make the appropriate entries
therein. Such register shall contain a brief note of the charge against the
employee, the explanation offered by him, the finding and the amount of
the fine levied on him.
3. The total amount of fine which may be imposed in any one calendar month
on any workman shall not exceed an amount equal to Rs. 1/2 anna in the
rupee of the salary and allowances payable to him in respect of that period.
Explanation - Punishment in the form of stoppage or postponement of
increments does not fall under this head.
SUSPENSION AND SUBSISTENCE ALLOWANCE DURING SUSPENSION
SUSPENSION
14.3/17-09-1984
Pending or initiation of such enquiry, an employee may be suspended, but if on the
conclusion of the enquiry it is decided to take no action against him he shall be
deemed to have been on duty and shall be entitled to the full wages and allowances
and to all other privileges for the period of suspension; and if some punishment other
than dismissal is inflicted, the whole or a part of the period of suspension, may, at the
discretion of the management, be treated as on duty with the right to a corresponding
portion of the wages allowance, etc.
18/31-10-1979
(iii) It is also agreed that employees on suspension will be entitled to the facility of
medical aid and hospitalisation.
SUBSISTENCE ALLOWANCE DURING SUSPENSION
05/08-09-1983
In Partial modification of Para 557 of the Sastry Award and Para 17.14 of the Desai
Award, the following provisions shall apply in regard to payment of subsistence
allowance to workmen under suspension.

135
a. Where the investigation is not entrusted to or taken up by an outside agency
(i.e. Police/CBI), subsistence allowance will be payable at the following rates:
i. For the first 3 months 1/3 of the pay and allowance which the workman
would have got but for the suspension.
ii. Thereafter 2 of the pay and allowances.
iii. After one year full pay and allowances if the enquiry is not delayed for
reasons attributable to the concerned workman or any of his
representatives. Where the investigation is done by an outside agency
and the said agency has come to the conclusion not to prosecute the
employee, full pay and allowances will be payable after 6 months from
the date of receipt of report of such agency, or one year after suspension,
whichever is later and in the event the enquiry is not delayed for reasons
attributable to the workman or any of his representatives.
(Subsistence Allowance upon salary revision Refer IBA Cir. PD/CIR/76/528/586/
Dt. 11-08-1998)
VOLUNTARY CESSATION OF EMPLOYMENT
33/02-06-2005
i) When an employee absents himself from work for a period of 90 or more
consecutive days without prior sanction from the Competent Authority or beyond
the period of leave sanctioned originally including any extension thereof or
when there is satisfactory evidence that he has taken up employment in India
or outside, the management at any time thereafter may give a notice to the
employee at his last known address as recorded with the Bank calling upon
him to report for work within 30 days of the date of notice.
Unless the employee reports for work within 30 days of the notice or gives an
explanation for his absence within the period of 30 days satisfying the
management inter alia that he has not taken up another employment or
avocation, the employee shall be given a further notice to report for work within
30 days of the notice failing which the employee will be deemed to have
voluntarily vacated his employment on the expiry of the said notice and advised
accordingly by registered post.
In the event of the employee submitting a satisfactory reply, he shall be permitted
to report for work thereafter within 30 days from the date of expiry of the aforesaid
notice without prejudice to the bank’s right to take any action under the law or
rules / conditions of service.

136
 If the employee fails to report for work within this 30 days period, then he shall
be given a final notice to report for work within 30 days of this notice failing
which the employee will be deemed to have voluntarily vacated his employment
on the expiry of the said notice and advised accordingly by registered post.
ii) If an employee again absents himself for the second time within a period of 30
days without submitting any application and obtaining sanction thereof, after
reporting for duty in response to the first notice given after 90 day’s of absence
or within the 30 days’ period granted to him for reporting to work on his submitting
a satisfactory reply to the first notice, a further notice shall be given after 30
days of such absence giving him 30 days’ time to report. If he fails to report for
work or reports for work in response to the notice but absents himself a third
time from work within a period of 30 days without prior sanction, his name shall
be struck off from the rolls of the establishment after 30 days of such absence
under intimation to him by registered post deeming that he has voluntarily
vacated his appointment.
iii) Any notice under this clause shall be in a language understood by the employee
concerned. The notice shall be sent to him by registered post with
acknowledgement due. Where the notice under this clause is sent to the
employee by registered post acknowledgement due at the last recorded address
communicated in writing by the employee and acknowledgement by the bank,
the same shall be deemed as good and proper service.

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 CHAPTER - XII
RULES REGARDING RECRUITMENT

493/S.A.

We direct that in the case of all permanent vacancies the candidate must produce a
satisfactory medical certificate before the appointment is made.

498/S.A.

We direct that for ordinary clerical work no bank should employ part time workers
except for the writing of pass books in Banks in which this practice now prevails.

20.4/19-10-1966

Notwithstanding anything contained in paragraph 498 of the Sastry Award for

pass-book writing, all banks will be free to employ part-time clerks as pass-book
writers. Apart from such persons already in employment, in future only students and
retired persons (but in any case no person already in employment elsewhere) will be
engaged by banks for this purpose. Their hours of work will not exceed 12 hours in a
week.

23.20/D.A.

On a candidate’s appointment as a temporary employee, a probationer or a permanent

member of a staff, the bank shall give him a written order specifying the kind
of appointment and the pay and allowances to which he would be entitled and that
such a written order shall be given on the appointment of a part time employee also.
I further direct that wherever possible the bank should, except in the case of permanent
employees, specify the period of employment.

23.22/D.A.

The Sastry Tribunal in paragraph 497 of its Award has directed that “the period of
apprenticeship, except in the case of those who work in banks so as to qualify
themselves for the examination of the Institute of Bankers, should not exceed
12 months”. The direction is a statutory one. I gave a direction similar to the one
given by the Sastry Tribunal.

20.6/19-10-1966
Subject to a bank’s recruitment rules, if any, part-time employees will be given
preference for filling of full-time vacancies, other things being equal.

138
20.12/19-10-1966
Other things being equal, temporary workmen (other than godown keeper) will be
given preference for filling permanent vacancies and if selected they may have to
undergo probation.
20.16/19-10-1966
Bank work like transmitting cash, clearing or stationery will not be entrusted to
private drivers employed by bank officers. If as a result the services of a driver are
required for doing such bank work the existing private driver, if he was already doing
bank work, shall be given preference for appointment of a peon cum-driver. Such
peon cum-driver shall, whenever called upon to do so, drive any motor vehicle being
used for the bank’s work.
20.18/19-10-1966
Members of the subordinate staff whose names are registered in the bank’s licences
for weapons, as “Retainer” shall be given preference for filling up vacancies of “Armed
Guards”.

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 CHAPTER - XIII
RULES REGARDING TRANSFER

20.17/19-10-1966
TRANSFERS ON REQUEST:
Any request by an employee for transfer on compassionate grounds will be considered
sympathetically subject to exigencies and requirements of the Bank, but such request will
not be rejected only on the ground that he will have to be paid emoluments of higher rates.
20(d)/12-10-1970
Where a workman is transferred from one Area to another temporarily for a specified
period, he shall be entitled only to the halting allowance applicable to the area to
which he is transferred and no adjustment in his salary will be made.
535/S.A.
Policy regarding transfers is a constant source of friction between the banks and the
workmen now organised into unions. The cry of victimization of office bearers and
“Activists” of trade unions is raised wherever such transfers are mooted. We have
found that such allegations are easily made but not so easily substantiated. Transfers
are rendered necessary by the exigencies of administration. The proper view to take is
that transfers are normal incidents of the working of a bank and they must be left to the
discretion of those who guide the policy of the Bank and manage its affairs. It is possible
that the discretion may be abused and transfers effected on considerations other than
the needs of administration. The percentage of transfers as shown by figures furnished
by some of the Banks in the course of arguments leads us to the conclusion that the
question of transfer, even as it affects only a very small number of persons. This is
conceded by the workmen also. Still wherever an activist of the trade union movement,
as yet in its formative stage and liable to be crippled easily, is transferred, a suspicion
naturally arises that it is inspired by ulterior motives and the consequence thereof may
be an Industrial dispute. In order that such suspicions may be avoided as far as possible,
we, adopting the Sen Award in this respect, give the following directions :
(1) Every registered bank employees’ Union, from time to time shall furnish
the bank with the names of the President, Vice-President and Secretaries
of the Union;
XV/17-09-1984
CLARIFICATION ON POLICY REGARDING TRANSFER:
In Paragraph 535(i) of the Sastry Award the words “Registered Bank Employees

140
Union” shall mean and refer to a union registered under the Trade Unions Act, 1926,
and not to branch/regional/zonal level units thereof.
535/S.A.
(2) Except in very special cases, whenever the transfer of any of the above
mentioned office bearers is contemplated, at least five clear working days’
notice should be put up on the notice boards of the Bank of such
contemplated action;
(3) Any representations, written or oral, made by the Union shall be considered
by the bank;
(4) If any order of transfer is ultimately made, a record shall be made by the
bank of such representations and the Bank’s reasons for regarding them
as inadequate; and
(5) The decision shall be communicated to the Union as well as to the
employee concerned.
536/S.A.
We direct that in general the policy should be to limit the transfers to the minimum
consistent with banking needs and efficiency. So far as members of the subordinate
establishment are concerned there should be no transfers ordinarily and if there are
any transfers at all they should not be beyond the language area of the person so
transferred. We further direct that even in the case of workmen not belonging to the
subordinate staff, as far as possible there should be no transfer outside the State or
the language areas in which an employee has been serving except of course, with
his consent. In all cases the number of transfers to which a workman is subject
should be strictly limited and normally it should not be more that once in a year. We
are unable to accept the demand that residential accommodation should be provided
by the bank at the new station. The demand for special house allowance is also
rejected.
32/27-03-2000
DEPLOYMENT OF STAFF
It is generally perceived that there is scope for redeployment of staff in banking industry.
There are pockets of surplus/deficit in areas of operation in different centres in different
banks. It is desirable that these imbalances in deployment of staff are corrected. As
it will not be possible/practicable to arrive at a uniform policy in this regard, having
regard to the situation varying from bank to bank, the parties hereby agree that the
matter be resolved at the level of each bank. Bank level agreements, if any, as of
now may require appropriate amendments which shall be mutually settled.

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32/02-06-2005
In continuation of clause 32 of 7th Bipartite Settlement dated 27th March 2000, it is
agreed between the parties that deployment of non-subordinate staff in banks which
are parties to this settlement shall be in accordance to the terms and conditions set-
forth in Schedule VI to this Settlement.
Note:
In case of State Bank of India, the extant provisions of Settlement dated 22nd July
2003 arrived at Bank level with the All India State Bank of India Staff Federation on
Technology, Redeployment / Transfer of Staff and Other Issues shall remain
unchanged and shall remain operative.
SCHEDULE - VI
02-06-2005
DEPLOYMENT OF STAFF
i) A workman in the non-subordinate cadre is liable to be deployed anywhere
within a ‘District’, irrespective of the distance involved.
ii) In cases necessitating deployment outside the District, the workman concerned
may be deployed to any branch/office of the bank situated outside the District
upto a distance not exceeding 100 km. from his present place of posting.
iii) Bank may Identify, based on length of stay at the centre/branch/office, the
number of workmen employees, to be redeployed from each centre/ branch
/ office to meet its requirements.
iv) The period of deployment shall be 2 years in a difficult centre decided by the
bank in accordance with the Government guidelines and 3 years in other
centres.
v) Repatriation to the original centre shall be after serving in the deployed centre
for period as in (iv) above. In case it is not administratively possible for the
bank to repatriate the employee to his original centre after the above period,
the employee may be required to give 3 centres of his choice so that he can
be transferred to any one of the 3 centres opted by him.
vi) Female employees above the age of 55 and male employees above the age
of 56 shall be exempt from redeployment. However, if the required and eligible
number of employees are not available to be deployed in terms of the
Settlement, the age norms as above may be suitably relaxed upto the age of
58 years so as to ensure that the required and eligible number of employees
are deployed to be identified centres.

142
vii) Employees having mentally retarded / spastic children, certified as such by
the attending Doctor, may be deployed only at centres where specialised
treatment for such children and special facilities their schooling are available.
viii) Employees affected by serious ailments requiring specialised treatment, as
certified by the attending Doctor, will be deployed only at centers where
medical facilities for treatment of such ailments are available.
ix) Redeployment of physically handicapped/challenged employees shall be in
accordance with the extant Government guidelines.
x) A workman in the non-subordinate cadre so long as he serves in the deployed
centre shall draw a lump sum amount of 400/- p.m. (not ranking for any
other benefit) besides protection of emoluments drawn at the original centre.
These shall cease on the employee’s repatriation to the original centre.
xi) The above lump sum amount is not payable in case of transfers made at the
request of the employee.
xii) In North-Eastern States, banks may decide on the level and extent of
deployment having regard to their requirements within the above norms.
xiii) The above provisions on deployment are without prejudice to the provisions
of paragraphs 535 and 536 of the Sastry Award relating to transfer of workmen.
xiv) The above provisions on deployment shall be the minimum applicable to all
the banks which are parties to this Settlement. Parties agree that any existing
bank-level settlement on transfer or deployment whose provisions are
restrictive and not upto the minimum provisions on deployment as mentioned
above will be modified / terminated as per procedure under the Industrial
Disputes Act so as to give effect to the above-mentioned provisions on
deployment.
xv) Any bank which is a party to this Settlement and having bank-level Settlement
on transfer or deployment may, however, modify and improve upon the above
provisions to suit the needs of the bank ensuring, however, that the norms
relating to the geographical minimum area of deployment, period of stay at
the deployed centre, conditions for repatriation as mentioned hereinabove
are not relaxed or diluted in any manner.
xvi) In banks which are parties to this Settlement where bank level settlements/
policies on transfer or deployment of workmen exist which provide for
transferability of employees over a larger geographical area, such bank level
settlements on transfer or deployment shall remain operative.

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CLARIFICATIONS
(Refer AIBEA Circular letter no. 25/CLTR-39/2005/28 dated 29-06-2005)
1. This industry level agreement on mobility deals only with transfer of employees
from surplus to deficit areas, if any. This is in continuation of Clause 32 of
7th Bipartite Settlement, which provided for Bank level agreements on
deployment of staff from surplus to deficit areas.
2. In this agreement we have evolved some industry level norms for deployment
of employees from surplus to deficit areas. Hence this Settlement does not
cover any other case of mobility like rotational transfers, general transfers,
periodical transfers, request transfers, mutual transfers, etc.
3. These norms are only applicable to Clerical employees AND NOT FOR
SUBSTAFF.
DEPLOYMENT NORMS
a) If there is surplus staff in a centre, an employee can be deployed to a
deficit centre anywhere within the District.
b) If vacancies are not there within the District, deployment can be upto a
maximum distance of 100 Kms.
c) In such an event, the emoluments will be protected (i.e. same HRA, CCA
drawn at a higher centre will be continued even at a lower centre).
d) Additional compensation will be paid at 400 per month.
e) Repatriation to original centre after 2 years from difficult centres & 3 years
from other centres.
f) If after this 2/3 years, immediate vacancy is not available for repatriation,
employee may go to another nearby center by giving 3 options. But still
the compensation of 400 will continue till repatriated to this original
centre.
g) Ladies above 55 years & gents above 56 years will not be disturbed on
deployment.
h) If in a contingency, adequate number is not available, the same day be
relaxed upto 58 years.
i) For physically handicapped employees, there will be no deployment as
per Government guidelines.

144
 j) Parents of mentally handicapped/spastic children & employees with
serious ailments will not be disturbed on deployment unless equivalent
medical facilities are available at the deployed centre.
k) For North East State, Bank level norms can be worked out within the
above norms.
1. Where there is no settlement in a Bank on deployment from surplus to deficit,
or where the norms are less than the above, the Industry level norms i.e. Clause
(a) to (k) will apply.
- If the distance is less, it will be upgraded to District/100 Kms.
- If facilities like compensation, protection of emoluments, repatriation are
not presently available in a particular bank level agreement on deployment
from surplus to deficit, the same will be extended in that Bank.
2. Where the existing norms in any Bank are more than this, the same will continue.
3. Other Bank level agreements/policies on other types of transfers will continue
as it is.

145
 CHAPTER - XIV
JOINING TIME ON TRANSFER

551/S.A.

We give the following directions:-

1. Joining time shall be granted to an employee to enable him;

a) to join a new post to which he is appointed while on duty in his old post; or

b) to join a new post on return from leave.

2. An employee in respect of joining time shall be entitled to the pay and

allowances of the old or the new post whichever is less.

3. Joining time which shall be allowed to an employee shall not exceed six days,
exclusive of the number of days spent on travelling.

4. In calculating joining time admissible to an employee, the day on which he is

relieved from his old post shall be excluded but public holidays following the
day of his relief shall be included in the joining time.

5. An employee who does not join his post within the joining time allowed to him
shall be deemed to have committed a breach of discipline.

550/S.A.

No joining time shall be admissible when the transfer does not involve a change in
the situation of his office and a joining time of not more than one day (inclusive of a
holiday or Sunday) is permissible when the new appointment takes place in the same
town or station.

552/S.A.

In laying down the above directions we are quite aware that we are not providing for
every conceivable case that may arise under the above heads. In fact it is not our
purpose to lay down a detailed code. We can only indicate in this as well as in
other issues the broad principles leaving it to the banks to interpret our directions
liberally so that they may cover every other case which has not been possible for us
to consider.

146
 CHAPTER - XV
TRAVEL ON DUTY / TRANSFER / TOUR

GENERAL
6.70/D.A.
It is desirable that members of the clerical staff when they travel by train should have
sleeping accommodation at night. It is therefore necessary to modify the provisions
of the Sastry Award, and I do so by providing that whenever a workman, who is not a
member of the subordinate staff, is transferred from one station to another or has to
travel for inspection or other duty in the interests of the bank and in the course of
such journey, has to travel by train by night, he shall be paid, in addition to that is
provided under the Sastry Award as modified, reproduced above, a further amount
equivalent to the difference between one second class fare by train and one first
class fare by train for the full journey for himself provided he has travelled throughout
the journey in the first class. When he is transferred from one station to another and
is entitled to claim travelling allowance for his family and the family has to travel by
night he will be entitled to be paid the difference between the second class fare and
first class fare and first class fare for the members of his family also provided that
they have actually travelled in the first class.
X/17-09-1984
2. In partial modification of para 540 of the Sastry Award, para 6.70 of the
Desai Award and Clause 10.3 of the First Bipartite Settlement dated 19th
October 1966, an employee other than a member of the subordinate staff
and his family while travelling from one station to another, on transfer or on
duty, will be entitled to travel by first class by train for the journey during day
and/or night. If the travel is by steamer, he will be entitled to the lowest
cabin class or appropriate class equivalent to the fares payable by first class
railway fare, whichever is higher.
541/S.A.
An employee who is a member of a subordinate staff shall for similar journeys be
paid as follows:
1. One and a half (third class) fares by rail or steamer for himself and further
(third Class) fares for his family if taken. (now second class)
2. Actual expenses incurred on cartage, ghari, mazdoor hire, etc. established
to the satisfaction of the sanctioning authority.

147
REIMBURSEMENT OF EXPENSES ON ROAD TRAVEL
31/27-04-2010
In substitution of Clause 30 of Bipartite Settlement dated 2nd June 2005 w.e.f.
1st May 2010, where an employee has to travel on duty / LFC between two places he
shall be reimbursed actual road mileage cost or at 3/- per k.m., whichever is less.
547/S.A.
1. Where an employee travels by a class lower than the one allowed to him,
he shall be entitled to claim travelling allowance only at the rate actually
paid. The banks may however, pay on the scale allowed where they are
satisfied that travel by a lower class is unavoidable and due to circumstances
beyond the control of the employee.
2. All claims should be supported by a certificate from the employee concerned.
3. The claim for journeys can ordinarily be only for the shortest route.
TRAVEL BY DEPENDENTS (ON TRANSFER)
543/S.A.
2. When, for any reason, the family of any employee does not travel with him but
joins with him within a period of six months from the date of his transfer, an
employee shall be entitled to draw the further fares and the cost of transporting
luggage, payable for the family, subject to the limits fixed.
3. Where the family in consequence of transfer travels from a place to another
than that from which an employee is transferred, an employee may draw the
actual travelling expenses incurred by his family to join the employee at the
new station but the amount so drawn shall not exceed the travelling allowance
admissible to the employee where the employee’s family stationed at the place
where the employee was transferred.
4. If the family of an employee in consequence of transfer travels to a station
other than that to which the employee is transferred, an employee may draw
travelling expenses for his family subject to the condition that the amount so
drawn shall not exceed the travelling allowance admissible to the employee
had the family proceeded to the station to which the employee was transferred.
540/S.A.
5. Any other expenditure unavoidably incurred such as packing, crating, tonga,
coolie hire etc. established to the satisfaction of the sanctioning authority and
subject to any new rules made by the bank in this behalf shall be paid.

148
TRANSPORTATION OF PERSONAL EFFECTS:
COMPENSATION ON TRANSFER
22/27-04-2010
In supersession of Clause 10 of Bipartite Settlement dated 5th January 1987, with
effect from 1st May 2010, compensation on transfer, shall be as under:-
An employee on transfer shall be paid the cost actually incurred for transporting his
personal effects, as under:
By Train:
Non Sub-Staff Sub-Staff
a. For married persons 3000 k.g. 2000 k.g.
b. For unmarried persons 2000 k.g. 1150 k.g.
By Road: If the places are not connected by rail/out agency, actual expenses will be
reimbursed for transporting the personal effects by road upto the stipulated weights
by an IBA approved Transport Operator.
543/S.A.
In respect of personal property carried upto the limits specified above to and from the
place of transfer, the employee shall be entitled to the actual expenses incurred by
him in transporting the same through and “out agency” if available. In other cases he
shall be entitled to the actual cost of transporting the same through an authorised
transport company.
5. An employee shall be entitled to draw the actual expenditure incurred by him
for transporting his personal property irrespective of the mode of conveyance
engaged by him provided he does not exceed the maximum amount admissible
to him for the transport of personal property by goods train except where it is
otherwise provided for in the paragraph.
COMPENSATION FOR LOSSES DUE TO BREAKAGE OR DAMAGE TO GOODS
ON TRANSFER
23/27-04-2010
In supersession of Clause 22 of Bipartite Settlement dated 2nd June 2005, with effect
from 1st May 2010, compensation on transfer, shall be as under:-
(a) Where an employee produces receipts or a statement of loss in respect of
breakages subject to a maximum of -
Clerical Staff : 1,120/-
Subordinate Staff : 745/-

149
(b) Where no receipt/statement of loss are produced a lumpsum payment of -
Clerical Staff : 745/-
Subordinate Staff : 560/-
EMPLOYEES ON TOUR / DUTY
544/S.A.
(3) The actual cost, if any of freight of his personal belongings.
(4) Any other expenditure unavoidably incurred such as tonga, cooly hire etc.
established to the satisfaction of the sanctioning authority and subject to
any rules made by the bank in this behalf.
545/S.A.
An employee of the subordinate staff shall be entitled to one (third class) fare to and
fro for himself by rail or steamer. Clauses (3) and (4) supra would equally apply to
him also. (Now sleeper class)

150
 CHAPTER - XVI
UNIFORMS AND LIVERIES
17.3/19-10-1966
If prior to the enforcement of the Desai Award, any bank had the practice, at any
place, of supplying woolen uniforms once in two years, such practice shall be
reintroduced/continued at that place.
17.4/19-10-1966
Watchmen, Armed Guards, Electricians, Air-Conditioning Plant Helpers and Drivers
shall be supplied with a pair of shoes once in two years.
17.5/19-10-1966
Where under the existing practice, part-time workmen working for less than six hours
per week are already getting any uniforms, they shall continue to be supplied with
such uniforms.
2/05-01-1987
(i) All permanent full time members of the subordinate staff as well as permanent
part time workmen in subordinate cadre working for not less than six hours
per week, shall be supplied with three sets of terry khadi uniforms once in two
years and one set of woollen uniform once in three years;
(ii) At hill stations one set of woollen uniform every year and one set of terry
khadi uniform once in three years shall be supplied in lieu of the uniform
stated in (i) above.
(iii) If the majority of subordinate staff of all offices of a bank in a place request the
management sufficiently in advance, one additional set of terry khadi uniform
may be supplied every eighteen months to the entire subordinate staff in lieu
of the set of woollen uniform to be supplied once in three years.
(iv) If in a place, terry khadi cloth is not available, uniforms of terry cotton cloth
shall be supplied.
(v) It is reiterated that all members of the staff who are supplied uniforms
shall wear them while on duty and in clean condition and not wearing
such uniforms while on duty shall constitute a minor misconduct.
Except to the extent modifications are made as aforesaid the other terms
and conditions for supply of uniforms and liveries as contained in earlier
Settlements would continue.

151
 CHAPTER - XVII
CLASSIFICATION OF EMPLOYEES
508/S.A. and 23.15/D.A.
We direct that employees shall be classified as ...
(a) permanent employee;
(b) probationer;
(c) temporary employee; and
(d) part-time employee
These expressions having the following meanings:
(a) “permanent employee” means an employee who has been appointed as
such by the bank,
(b) “probationer” means an employee who is provisionally employed to fill a
permanent vacancy or post and has not been made permanent or confirmed
in service,
(c) “temporary employee” ... as modified ... 20.7 & 20.8/19-10-1966
20.7/19-10-1966
In supersession of paragraph 21.20 and subclause (c) of paragraph 23.15 of the
Desai Award, “temporary employee” will mean a workman who has been appointed
for a limited period for work which is of an essentially temporary nature or who is
employed temporarily as an additional workman in connection with a temporary
increase in work of a permanent nature and includes a workman other than a
permanent workman who is appointed in a temporary vacancy caused by the absence
of a particular permanent workman.
20.8/19-10-1966
A temporary workman may also be appointed to fill a permanent vacancy provided that
such temporary appointment shall not exceed a period of 3 months during which the
bank shall make arrangements for filling up the vacancy permanently. If such a temporary
workman is eventually selected for filling up the vacancy, the period of such temporary
employment will be taken into account as part of his probationary period.
(D) PART-TIME EMPLOYEE
508/S.A.
“Part-time employee” means an employee who does not or is not required to work for
the full period for which an employee is ordinarily required to work and who is paid on
the basis that he is or may be engaged in doing work elsewhere.

152
 CHAPTER - XVIII
PROBATIONERS

PERIOD OF PROBATION
495/SASTRY AWARD
The Sen Award fixed the period of probation at 6 months, which in certain cases
would be extended by 3 months. We respectfully agree with the said direction and
direct that ordinarily the period of probation should not exceed 6 months. However,
in case of persons whose work is not found to be quite satisfactory during the said
period but who are likely to improve and give satisfaction if a further opportunity
is given to them, the period may be extended by three months provided due notice
in writing is given to them (and their consent in writing is obtained before the
extension of their period of probation). In all other cases probationers after the expiry
of the period of six months should be deemed to have been confirmed, unless their
services are dispensed with on or before the expiry of the period of probation. We
further direct that on a candidate’s appointment as a temporary employee, a probationer
or a permanent member of the staff, the bank shall give him a written order specifying
the kind of appointment and the pay and allowances to which he would be entitled
and that such a written order shall be given on the appointment of a part-time
employee also.
496/SASTRY AWARD
Probationers should be paid the same emoluments as are fixed for confirmed
workmen.
EFFECT ON CONFIRMATION OR PERMANENT APPOINTMENT
512/SASTRY AWARD
We direct that on confirmation or permanent appointment an employee shall be
entitled to all the privileges enjoyed by, and shall be subject to all the liabilities passed
upon, the other permanent members of the staff and that he should further be entitled
to have the period of his probation added to the years of his permanent service for
the purpose of the grant to him of any gratuity. We make a similar recommendation
in respect of pension also.
504/SASTRY AWARD
The period of probation should be added to the years of permanent service for the
purpose of the grant of gratuity or pension through Provident Fund contribution on
both sides will commence only from the date of confirmation.

153
EXTENSION OF PROBATIONARY PERIOD
21.18/DESAI AWARD
There is considerable force in the argument advanced on behalf of the bank that
where the period of probation is sought to be extended by three months, it should
be sufficient for the bank to give a notice in writing to the employee to that effect.
If an employee does not desire to continue in the employment of the Bank as a
probationer for the further period, he is at the liberty not to continue further and leave
the service of the bank. I do not see any necessity for a provision to the effect that
he must consent in writing before his period of probation can be extended for a further
period of three months as provided in the Sastry Award. I direct that in the case
of a person whose work was not found to be quite satisfactory and whose probation
period, in the opinion of the bank, should be extended for a further period of 3 months
in order to afford to him an opportunity to improve and give satisfaction to the bank,
it would be open to the bank before the expiry of his period of probation to extend
the period of probation for a further period of 3 months by giving notice in writing
to him to that effect. If he does not desire to continue as a probationer for such
further period, it would be open to him to intimate to the bank to that effect and
leave the service of the bank.

154
 CHAPTER - XIX
PART - TIME EMPLOYEES
WORKING HOURS AND WAGES

20/27-03-2000

The codified service conditions of part-time employees with such modifications as

are considered necessary are as follows;

(1) CLERICAL STAFF

One third of the scale wages and one third of the annual increments, payable to
full time employees where the total working hours do not exceed 12 hours per
week.

(2) SUBORDINATE STAFF

Part-Time Employees

21/27-04-2010

In substitution of Clause 21 of the Bipartite Settlement dated 2nd June 2005, with
effect from 1st November 2007, Part-Time employees who are members of the
subordinate staff on consolidated wages and whose normal working hours per week
are ‘upto 3 hours’ and ‘more than 3 hours but less than 6 hours’ shall be paid one
third scale wages w.e.f. 1st May 2010. From 1st November 2007 to 30th April 2010,
they shall be paid consolidated wages as under:

a. Upto 3 hours : at bank’s discretion with a minimum of

1030/- p.m.

b. More than 3 hours but less

than 6 hours : at bank’s discretion with minimum of
1440/- p.m.

The employees recruited on or after 1st May 2010 in part-time scale wages shall be at
minimum of one third scale wages

155
WAGES OF PTEs (SUBORDINATE STAFF)
20/27-03-2000

If their normal total working hours per week are -

More than 6 hours to One third of the scale wages

13 hours with proportionate annual increment
More than 13 hours to One half of the scale wages
19 hours with proportionate annual increment
More than 19 hours to Three fourth of the scale wages
29 hours with proportionate annual increment
Beyond 29 hours Full scale wages
EXPLANATION:
“Scale wages” shall mean basic pay, city compensatory allowance, if any, special/
house rent/other allowances, if any, and dearness allowance payable to full time
workmen.
Part-time employees not drawing scale wages shall be eligible for only fixed monthly
payment made to them by the bank. Other part-time employees drawing scale wages
shall get only such benefits as are specifically provided hereunder:
Part-time employees should be paid wages as per the provisions of the Settlement
which will supersede any local arrangements for payment of wages to part-time
employees. Minimum, Quantum stipulated for CCA, HRA will apply to part-time
employees in scale wages on pro-rata basis (As per IBA Circular No. PD/CIR/76/90/
937 dated 16-8-1989).
OTHER SERVICE CONDITIONS
18.2/10-04-1989
(a) Permanent part-time employees drawing scale wages are eligible for leave,
medical aid and uniforms.
(b) In partial modification of Clause 18.2 of the Bipartite Settlement dated
10th April, 1989, with effect from 1st November, 1999, Part Time employees
drawing scale wages shall also be eligible for reimbursement of
Hospitalisation Expenses on pro-rata basis.
(c) Permanent part-time employees drawing scale wages are eligible for
Provident Fund with effect from 01-09-1978.

156
 (d) Permanent part-time employees drawing scale wages in banks other than
State Bank of India will be eligible for Gratuity.
(e) Permanent part-time employees drawing scale wages shall be eligible for
leave fare concession and leave encashment on pro-rata basis with effect
from 01-04-1989.
(Refer: IBA Cir. PD/CIR/76/90/1937)
ENCASHMENT OF P.L. - SUPERANNUATION
(Refer IBA Circular No.: PD/CIR/76/H7/V/356 dt. 26-05-2000)
FITMENT ON FULL TIME CONVERSION
18.3/10-04-1989
For fitment of part-time employees consequent on their appointment on full time basis
the pro-rata increments earned by them in the course of their part-time service shall
be converted (notionally and only for the purposes of fitment) into full increments and
their salary fitted from the date of their appointment as full time employees after
taking into account such notionally added increments, the fraction of an increment, if
any, being granted to them by advancing the date of their next increment suitably.
The advanced date of increment, will in such cases, become the date of their annual
increment in future years.
When wages of part-time employees are refixed from 1/3 to 1/2 or 3/4 or from 1/2/to
3/4 in the wage scales, the pro-rata increments earned by them in the course of their
service in the lower proportionate wage scale shall be taken into account for the
purpose of fitment in the higher proportionate wage scale together with the benefit of
advancing the date of increment where the fraction of increment is involved as in the
case of their absorption as full time employees.
GENERAL
18.4/10-04-1989
Subject to the bank’s recruitment rules, preference will be given to permanent part-
time employees drawing scale wages in filling up full time vacancies in the same
cadre, other things being equal.
19/12-10-1970
Part-time workmen shall also be entitled to receive proportionate annual increment in
the new scales, on the same date on which the increments in the existing scales
would have fallen due if the existing scales were continued, so that the period of

157
service since the date of the last increment in the existing scales shall be available for
the purpose of calculating the period of earning an increment in the new scales of
pay.
498/Sastry Award
For ordinary clerical work no bank should employ part-time workers except for the
writing of pass books in banks in which this practice now prevails.
20.4/19-10-1966
Notwithstanding anything contained in paragraph 498 of the Sastry Award for pass-
book writing, all banks will be free to employ part-time clerks as pass-book writers.
Apart from such persons already in employment, in future only students and retired
persons (but in any case no person already in employment elsewhere) will be engaged
by banks for this purpose. Their hours of work will not exceed 12 hours in a week.
(Refer IBA guidelines also)

158
 CHAPTER - XX
DRIVERS
DUTIES:

SCHEDULE III/27-04-2010

Persons required to drive, maintain and effect minor repairs (not requiring a technician’s
skill) to motor cars, motor vans, station wagons, scooters, motor cycles, or other
motor vehicles.

OTHER SERVICE CONDITIONS:

SPLIT DUTY/STAGGERING

XI/17-09-1994

2. It is confirmed and clarified that the provisions contained in Clause 13 of the

Third Bipartite Settlement dated 31st October 1979 relating to staggering of
working hours and split duty allowance will continue to apply to drivers
also.

OVERTIME ALLOWANCE TO DRIVERS IN ADDITION TO HALTING ALLOWANCE:

III/08-11-1973

(h) “Drivers required to drive the vehicles on out-station duty shall be paid Overtime
Wages for the period of actual driving beyond normal working hours in addition
to batta/halting allowance at the rates payable to them.”

HOURS OF WORK

14.2/19-10-1966

(d) Week days (excluding Saturdays) : 72 hours

Saturdays : 5 hours

LIVERIES

17.4/19-10-1966

Watchmen, Armed Guards, Electricians, Air-conditioning Plant Helpers and Drivers

shall be supplied with a pair of shoes once in two years.

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UNIFORMS (REFER SEPARATE CHAPTER - ‘UNIFORMS’)

ALLOWANCE

SCHEDULE II - Part A (d) and Part B / 27-04-2010

Special Pay : 01.11.2007 to 30.04.2010 : 1,800/-

w.e.f. 01.05.2010 : 1,450/-

PRIVATE DRIVERS

20.6/19-10-1966

Bank work like transmitting cash, clearing or stationery will not be entrusted to private
drivers employed by bank officers. If as a result the services of a driver are required
for doing such bank work, the existing private drivers, if he was already doing the
bank work, shall be given preference for appointment as a peon-cum-driver shall,
whenever called upon to do so, drive any motor vehicle, being used for the bank’s
work.

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 CHAPTER - XXI
WATCH AND WARD STAFF
14.13.(a)-19-10-1966
Every member of the watch and ward staff shall be given a weekly off, on a day
convenient to the bank, in cases where such weekly off are not already being given
to them either under any enactment or under any arrangement made by Bank.
PROVIDED that in the state of Uttar Pradesh this concession will not be available
to the workmen concerned until such time as they are excluded from the purview
of Section 10(1) and other relevant provisions of the U.P. Shops and Commercial
Establishments Act, 1962 whereby 60 days privilege leave per year has been
provided for members of the watch and ward staff.
[This Proviso will also apply to the workmen concerned in other areas if the statutory
provisions applicable to them are similar to the above named provisions of the U.P.
Act.]
14.13(c)/19-10-1966
A Watchman cum peon, will, for the period during which he works as peon, be entitled
to any intervening holidays observed by the Bank.
HOURS OF WORK AND OVERTIME
14.3 (C)/19-10-1966
The hours of work of a member of the Watch and Ward Staff shall be 8 hours in
a period of 24 hours PROVIDED that the hours of work of a ‘Watchman-cum-Peon’
for the period during which he works as a peon, as also of a peon, for the period
during which he is required to work as ‘Watchman’ or ‘Armedguard’ shall be the
same as those laid down in Clause 14.2(c) (7 hours. -- weekdays, 42 hours --
Saturdays)
NATIONAL/FESTIVAL/GAZETTED HOLIDAYS FOR WATCH AND WARD STAFF
VI/08-11-1978
In partial modification of Clause 14.13 (b) of the Bipartite Settlement dated
19-10-1966, the members of the Watch and ward Staff will be granted (10 holidays
for the year 1972). From 01-11-1973, the members of the Watch and Ward Staff
will be given (12 holidays in a calender year). The members of the watch and Ward
Staff will be granted National/Festival/Gazetted holidays calculated at the rate of one
day per month of service, in the first year of employment.

161
9/28-11-1997
(i) In partial modification of Clause 14.13(b) of Memorandum of Settlement
dated 19th October, 1966 and Clause 20 of Memorandum of Settlement dated
31st October, 1979 the members of Watch and Ward staff shall be given as
many number of holidays in a year as there are public holidays as declared
by the respective State Governments/Union Territories under the Negotiable
Instruments Act, 1881 in that year.
(ii) It is reiterated that member of the watch and ward staff will be given above
holidays on days convenient to the bank.
Note:
The above provisions shall be effective from the calendar year 1998.
SECURITY STAFF:
22(c)/10-04-1989
Armed Guards and Watchmen shall be exempted by the Union from participating
in strike/work stoppage.
OTHER PROVISIONS
SPECIAL PAY
SCHEDULE II/Part A (d) and Part B/27-04-2010
01.11.2007 to w.e.f.
30.04.2010 01.05.2010
2. Watchman 350/- 0
4. Armed Guard 590/- 240/-
DUTIES
SCHEDULE III/27-04-2010
WATCHMAN
Persons other than ‘Armed Guards’ who are required to perform watch and ward
duties, i.e., to watch or look after the premises or a department for the purposes
of its safety, security and guard against infiltration and against removal of the bank’s
property by any unauthorised person AND/OR to watch and guard as above the
movement of cash from one place to another inside the bank premises, or outside
where an Armed Guard is not employed at the Branch/Office.
ARMED GUARDS
Persons required to perform watch and ward duties, i.e., to watch or look after the
premises or department for the purposes of its safety, security and guard against

162
attack or assault or infiltration and against removal of the bank’s property by any
unauthorised persons AND/OR to watch and guard as above the movement of cash
from one place to another, whether inside or outside the Bank for which purpose
they are required by the Bank to carry any of the following weapons:
(i) Gun, Pistol or any other fire arm; or
(ii) Dagger, sword, khukri or spear; or
(iii) any other licensed weapon.
RETAINERS
SCHEDULE III/27-04-2010
Note: Retainer Peons (other than watchmen), whose names are registered in the
Bank’s licence as ‘Retainers’ will, when they perform ‘Armed Guard’ duties, be
entitled to special pay for ‘Armed Guards’ pro rata.
20.18/19-10-1966
Members of the subordinate staff whose names are registered in the Bank’s licence
for weapons, as ‘Retainers’ shall be given preference for filling up vacancies of
‘Armed Guards’.
GENERAL PROVISIONS
37(i)/02-06-2005
In supersession of clause 22(c) of Bipartite Settlement dated 10th April 1989, watch
and ward staff and employees manning installations which require round-the-clock
maintenance and surveillance on duty on days of agitation / strike action are exempt
from participating in such action.

163
 CHAPTER - XXII
AGE OF RETIREMENT

XIII/17-09-1984

In reiteration of Chapter XVIII of the First Bipartite Settlement dated 19th October
1966 and similar provisions in the Settlements of other member Banks who are parties
to this Settlement, it is stated as under:

(i) FOR BANKS OTHER THAN STATE BANK OF INDIA

“After a workman has reached the age of 57 years, he may be retired after giving him
two months’ notice in writing in case his efficiency is found by the employer to have
been impaired. Subject to this rule and also subject to any rule under existing pension
fund, a workman shall not be compelled to retire before he is 60 years old nor will it be
necessary to give a workman a letter extending his services till he is sixty years old.”

(ii) FOR STATE BANK OF INDIA

“A workman shall normally retire on reaching the age of 58 years. The Bank will,
however, grant to workman who continues to be physically fit and efficient an extension
of service upto 60 years of age, but service beyond 58 years of age will not be countered
for any purpose with or in relation to pension.”

2. DATE OF RETIREMENT

3/08-09-1983

Parties agree that for the purpose of retirement as envisaged in the said provisions,
the retirement shall take effect on the last date of the month in which he completes
such age.

164
 CHAPTER - XXIII
RETIREMENT BENEFITS
PROVIDENT FUND
10/29-10-1993
Employees who opt for pension scheme shall only contribute to the provident fund at
the rate of 10% of basic pay only with effect from 1st November, 1993 with no
contribution by the employer.
14(i)/31-10-1979
Parties agree that permanent part-time employees who are required by the Bank to
work for more than 6 hours a week will be eligible for Provident Fund. Provident
Fund Provisions will come into effect from 01-09-1978.
PROBATION PERIOD
504/S.A.
The period of probation should be added to the years of permanent service for purpose
of grant of gratuity or pension though Provident Fund contribution on both sides will
commence only from the date of confirmation.
368/SASTRY AWARD
(1) The provident fund should obtain recognition under the Indian Income Tax
Act, 1922 and for this purpose the rules under the provident fund should not
be contrary to any rules laid down under the Indian Income-Tax Act. When
a Bank for reasons of its own does not choose to get the Provident Fund
recognised under the provisions of the Indian Income-Tax Act the burden of
the Income Tax to the extent to which the employees would not have to
bear if the fund were a recognised fund must be borne by the banks and not
passed on to the employees.
(2) All whole-time employees of the Bank other than personal or domestic
servants, if any, should be allowed the benefit of the fund as and from the
date of confirmation in service.
(3) There should be no minimum amount of salary or remuneration fixed for
any employee to become eligible to join the provident fund.
(4) Every eligible employee shall be required to subscribe to the fund in
accordance with the rules.

165
(5) The rules should provide for every subscriber to the fund nominating a person
or persons either belonging to the subscriber’s family or dependant on him
to receive the amount that may stand to the credit of his fund in the event of
his death occurring before the amount has become payable.
(6) Each subscriber shall be given a pass book in which shall be entered the
amounts to his credit, made up of his contribution and the Bank’s contribution
and the interest earned on the total money in his account. The advances
taken, if any, and the repayments made should also be entered therein.
The subscription due from each subscriber shall be realised by monthly
deductions from his emoluments.
(7) Every subscriber shall subscribe monthly to the fund when on duty. The
payment of subscription during leave shall be optional. Pay means basic
pay, special allowance and officiating allowance, if any.
(8) The Bank shall make a monthly contribution to the account of each subscriber
equal to the amount subscribed by the workman and such contribution shall
be credited to the fund not later than fifteen days after the subscription is
deducted from his emoluments.
(9) The fund shall be administered by a Board of Trustees on which the workmen
also should have representation to the extent of 1/4th of the total strength of
the Board.
(10) Moneys of the fund not immediately required for purpose of the fund and
held in a Bank account shall be invested by the Board in any securities for
the time being authorised under the Indian Income-Tax Act, 1922 and the
Trusts Act 1882 and the rules made thereunder in respect of the investments
of moneys of the provident fund recognised under the Indian Income Tax
Act, 1922. Compound interest with half yearly rests will be allowed. Interest
earned on the moneys of the fund shall be credited to the account of the
individual subscriber. The Banks however shall have the liberty to contribute
other amounts at their discretion.
(11) Withdrawals by workmen and repayments by them shall be governed by
the rules relating to such matters framed under the Indian Income-Tax Act,
1922, as conditions for recognition of Provident Funds under Section 58(c)
of the Act.
(12) If a subscriber dies or for other reasons ceases to be a subscriber, the
amount standing to his credit in the Fund including interest upto date shall
become payable to him or his nominee, subject to any withdrawal made
under rule 11.

166
 (13) No claim shall be entertainable against the Fund if made more than three
years after the date on which the amount due became payable.
(14) Any amount due from the fund shall cease to bear interest after three months
from the date on which the amount became payable.
(15) Payments under rule 12 to the employee or his nominees in the event of his
death, shall be made within one month of the date on which they fall due. In
the case of death of an employee who has no subsisting nomination it shall
be competent for the Board to pay the amount due to the natural heir or
heirs of the deceased employee provided the Board is satisfied as to the
heirship of the claimant or claimants.
(16) (i) Subject to the provisions of sub-rule (ii) no deduction shall be made
from the amount standing to the credit of a subscriber when final payment
is made to him or his nominees except as otherwise provided for in this
scheme.
(ii) a) A subscriber who has put in ten years of service and over shall be
paid the full amount of the Bank’s contribution with interest.
b) Those who have served five years and more but less than ten years
shall be entitled to the bank’s contribution at the rate of ten per cent
of such contribution with interest for each completed year of service.
7.32/DESAI AWARD
The Labour Appellate Tribunal has referred to “Certain undesirable features” in
connection with the provisions contained in the Sastry Award laying down that those
who had served the bank for less than five years would not be entitled to any portion
of the bank’s contribution or interest thereon. Where an employee dies before the
completion of the period of five years or where he is retrenched by the employer
within the aforesaid period, or where his services are terminated on account of illness
or physical disability or for reasons beyond his control, it is but fair that he or his heirs
or legal representatives or nominees should receive the full amount standing to his
credit in the provident fund including the employer’s contribution therein with interest
thereon, and I direct accordingly. Except to the extent indicated above, provision
relating to five years’ service is not required to be altered.
368/SASTRY AWARD
(17) There shall be no forfeiture of any amount due to a workman under this
scheme excepting in such cases where he is dismissed for misconduct
causing financial loss to the employer, and in such cases, limited only to the
extent of such financial loss.

167
369/SASTRY AWARD
The banks are directed to have an appropriate scheme on the above lines with liberty
to add such other provisions as are necessary and not repugnant to the provisions
laid down by us.
7.38/DESAI AWARD
I direct that the banks will supply to each workman either a pass book or an annual
statement of account in connection with the workman’s provident fund account.
7.39/DESAI AWARD
It is fair that every employee who is subscribing to a provident fund should be
supplied with a copy of Provident Fund Rules by the bank concerned, and I direct
accordingly.
DEFINITION OF ‘PAY’
6(i)/27-03-2000
Allowances hitherto termed as Special Allowance, Graduation Allowance, Professional
Qualification Allowance and Officiating Allowance which are in the nature of ‘pay’,
attracting Dearness Allowance and ranking for superannuation benefits shall
henceforth be termed as Special Pay, Graduation Pay, Professional Qualification
Pay and Officiating Pay, respectively.
6/02-06-2005
‘Pay’ for the purpose of D.A., HRA and Superannuation benefits shall mean Basic
Pay, Stagnation increments, Special Pay, Graduation Pay, Professional Qualification
Pay and Officiating Pay, if any.
Note:
The increment component of Fixed Personal Pay as given in column 2 of Schedule
IV shall rank for superannuation benefits.
6/27-3-2000
Note:
(ii) For workmen who were in service in Area I as on 31st December, 1969,
and entitled to receive CCA, only that amount of CCA which would
have been payable to them as per the terms and conditions as applicable then,
shall rank for Provident Fund to the extent of 50% subject to a maximum of
Rs. 30/- p.m.

168
III/17-09-1984
(B) (i) For workmen who were in service in Area 1 (other than Nagpur and Pune)
as on 31st December, 1969 and entitled to receive CCA, only that amount
of CCA which would have been payable to them as per the terms and
conditions applicable prior to this settlement, shall rank for calculation of
overtime, bonus and provident fund as under:
100% for overtime;
100% for bonus : and
50% subject to a maximum of 30/- per month for provident fund
contributions.
15/02-06-2005
In supersession of Clause 15 of the Bipartite Settlement dated 27th March, 2000,
w.e.f. 1st November, 2002 the rate of Provident Fund shall be at 10% of pay.
15/27-04-2010
(a) While the employees who are presently covered under the Pension Scheme
and those who will join the Pension Scheme in terms of option being made
available under Settlement dated 27th April, 2010 shall continue to contribute
10% of the Pay towards Provident Fund, there shall be no matching contribution.
(b) Employees of State Bank of India will continue to be covered by Contributory
Provident Fund Scheme as hitherto.
(c) Employees who are presently covered under Contributory Provident Fund
Scheme who do not opt for Pension Scheme being made available under the
Settlement dated 27th April, 2010 shall continue under the Contributory Provident
Fund Scheme as hitherto.
(d) There shall be no Provident Fund to employees joining the services of banks on
or after 1st April 2010. They shall be covered by a Defined Contributory Pension
Scheme, where the employee will contribute 10% of Pay plus Dearness
Allowance and the bank will make a matching contribution. The Scheme shall
be governed by the provisions of the Contributory Pension Scheme as introduced
for employees of Central Government with effect from 1st January 2004 and
modified from time to time.

169
 GRATUITY
8.31/DESAI AWARD
Gratuity shall become payable (i) on the death of an employee whilst in service of the
bank, the amount of gratuity being payable to the heirs, executors, administrators or
assigns of the employee or, in case he has executed a nomination paper in the form
prescribed by the bank to the nominee of the employee; (ii) on an employee becoming
physically or mentally incapable of further service or on termination of his service by the
employer; (iii) on voluntary retirement or resignation, after ten years’ continuous service.
8.32/DESAI AWARD
In connection with an employee serving in ‘A’ Class bank the amount of gratuity shall
be equal to one month’s pay for each completed year of service subject to a maximum
of fifteen months’ pay. In connection with an employee serving in a ‘B’ Class bank,
the amount of gratuity shall be equal to one month’s pay for each completed year of
service subject to a maximum of 12 months’ pay where however a workman employee
in any of the aforesaid banks has put in the service of over thirty years, an extra
amount by way of additional gratuity will become payable at the rate of additional half
month’s pay for each completed year of service beyond thirty years. To that extent
the maximum provided under the aforesaid clauses will stand increased.
8.33/DESAI AWARD
The length of service shall be calculated as the total period from the day of initial
appointment (whether permanent, temporary or on probation) in the bank to the day
of cessation of the bank’s service. In cases where employees formerly employed in
areas now forming part of Pakistan have been re-employed in India after 15th August
1947, even though there might be a break in their service the aggregate of the period
of service in both areas should be taken as the total period of service.
8.36/DESAI AWARD
Gratuity should be paid to a workman even if he enters the service of another bank,
notwithstanding any condition to the contrary in any scheme.
8.37/DESAI AWARD
The banks will be at liberty to pay gratuity in excess of what is herein provided.
8.38/DESAI AWARD
Income-Tax and Super-Tax, if any, payable on the amount of gratuity will not be
borne by the bank.

170
8.39/DESAI AWARD
Where there is a pension scheme in existence the workmen will have to choose
between the scheme of gratuity under this award and the bank’s pension scheme
unless any bank desires to give the benefit of both to the workmen. It is not the
intention of this Tribunal to replace a more favourable pension scheme wherever it
exists by the scheme of gratuity under this award or provide compulsory gratuity in
addition to pension as a third retiring benefit.
8.40/DESAI AWARD
The Bombay Exchange Banks’ Association has submitted that I should not give any
directions as regards the Exchange Banks regarding pension and gratuity “save that
at the time of retirement an employee shall have the right to opt for the bank’s pension
or retiring allowance scheme or the award prescribed gratuity” I direct that so far as
Exchange Banks are concerned an employee will have the right to opt for banks
pension or retiring allowance scheme or the gratuity prescribed under this award at
the time of cessation of his employment with the bank. As regards banks other than
the Exchange Banks which have pension or retiring allowance scheme, an employee
will have a right to exercise the option in accordance with such rules as may be
provided by the bank concerned and in the absence of any rules at the time of cessation
of employment. In the case of the death of an employee the option will be liable to be
exercised by his legal representative.
12.1/19-10-1966
The provisions of the Desai Award on Gratuity shall continue except that in
supersession of paragraphs 8.34 and 8.35 thereof, pay for the purpose of calculating
the gratuity shall be the average of the basic pay (100%) and special allowance and
officiating allowance payable during the 12 months next preceding death, disability,
retirement, resignation or termination of services, as the case may be.
12.2/19-10-1966
There will be no forfeiture of gratuity for dismissal on account of misconduct except in
cases where such misconduct causes financial loss to the bank and in that case to
that extent only.
14(i)/31-10-1979
Parties agree that permanent part-time employees who are required by the bank to
work for more than 6 hours a week will be eligible for Gratuity.
20/10-4-1989
The existing Gratuity Schemes of the banks shall be modified to the extent that service
rendered beyond the completed years of service shall also be reckoned for gratuity

171
purposes if it is 6 months and more but less than 1 year.
(Min. Service - 10 years but not 9 years 6 months - Refer IBA circular)

GRATUITY AS PER AWARD / BIPARTITE SETTLEMENT

Payable on - Death of an employee

- Employee becoming incapacitated
- Termination of Service
- Retirement on superannuation
- Voluntary Retirement/Resignation after 10 years service
Amount - One month pay for each completed year of service (max)
15 months’ pay plus 2 month pay for each year beyond 30
years of service
Pay = Average of Basic pay + Special Pay + Officiating Pay +
PQA + Increment portion of FPP of the last 12 months.

Example : 10 Years Service 10 Months’ Pay

15 Years Service 15 Months’ Pay
20 Years Service 15 Months’ Pay
30 Years Service 15 Months’ Pay
32 Years Service 15 + (2 X 2) = 16 Months’ Pay
40 Years Service 15 + (10 X 2) = 20 Months’ Pay
Note: 1. Service of 6 Months and above will be reckoned as one year service.
2. Gratuity cannot be forfeited even in case of dismissals. But if there is any
loss to the bank on account of the misconduct, the loss can be recovered
from the gratuity payable.
3. Part - time employees (3rd and above) are eligible for gratuity.
GRATUITY AS PER GRATUITY ACT: 1972
PAYABLE ON - Retirement on superannuation
- Resignation after 5 years service
- Death
- Disablement
AMOUNT - 15 Days’ wages x Number of years of service
(w.e.f. 24-05-2010) Maximum 10,00,000/-
NOTE - Wages=Basic Pay + DA + Spl. Pay + PQP + Officiating
Pay + FPP (Increment portion)
- 1 day Wage = Monthly Wage Divided by 26

172
 FORFEITURE - Gratuity can be forfeited for termination of service due to
riotous or disorderly conduct, violence or moral turpitude

Section 2(e) of the Gratuity Act has been amended removing the ceiling of
Rs. 3,500/- for wages. Similarly, Section 4, Sub Section (3) has been amended
increasing the ceiling on Gratuity payable to 10,00,000/-.
In terms of Section 4(5) of the Gratuity Act, an employee has the right to receive
Gratuity either under the Act or under any Award/Settlement/Rules whichever is
more beneficial.
(Refer IBA Cir - PD/CIR/76/G3/162 dt.3-5-2000, PD/CIR/76/G(iii)/563 dt. 4-08-1998,
IBA Cir. PD/Cir/76/g(iii)/1471 dt. 28-11-1996 & IBA Cir. HR & IR/Cir/76/G (iii)/ 417 dt.
28-05-2010)
GRATUITY CHART
PAYMENT OF GRATUITY FOR CLERKS & SUBSTAFF FROM 01-11-2007
(Gratuity under Gratuity Act or BPS provisions whichever is higher is payable)
Gratuity Amount under the Act Gratuity amount under BPS
Pay x No. of years of service

{ Pay+DA
26 } x 15 days x No. of
years of service
i) One month pay for one year of service
ii) Max. 15 months’ Pay upto 30 years service
Max.: (i) 3.50 lacs (till 23.05.2010) iii) Above 30 years, 1/2 month’s pay per year
(ii) 10.00 lacs (w.e.f. 24.05.2010) of service
iv) No ceiling
Payable under the Act Payable under BPS
From 01-11-2007
New Basic Pay New Basic Pay
New PQP New PQP
New Spl. Pay New Spl. Pay
New Officiating Pay New Officiating Pay
New DA DA - not eligible
New FPP (increment portion) New FPP (increment portion)
Gratuity under BPS provisions are also applicable from 01-11-2007.
Gratuity for all employees who have retired from 01-11-2007 onwards will be
recalculated both under the Gratuity Act and as per the BPS on the revised
emoluments/ wages and arrears wherever payable will be paid.

173
 ENCASHMENT OF PRIVILEGE LEAVE
15(i)31-10-1979
Parties agree that workman would be entitled to encash the accumulated leave to his
credit at the time of retirement.
15(ii)/31-10-1979
Parties further agree that if a workman dies in service, his heirs will be paid salary for
the leave accrued to him at the time of death.
(9)/29-06-1990
It is clarified that with effect from 1st January, 1990, in terms of clause 15 of the
Settlement dated 31st October, 1979, a workman at the time of his retirement; or his
heirs, in the event of his death would be entitled to encashment of the accumulated
privilege leave upto the maximum of 240 days.
PENSION
Refer Chapter XXVIII on Pension Regulations
[Note: Pension Settlement was signed on 29th October, 1993]
16/27-03-2000
In relation to an employee who retires or dies while in service on or after the 1st day
of April, 1998 ‘Pay’ for the purpose of Pension shall be the aggregate of the pay
drawn by the member of the award staff in terms of the Sixth Bipartite Settlement
dated 14th February, 1995 and the dearness allowance thereon calculated upto index
number 1616 points in the All India Average Consumer Price Index for Industrial
Workers in the series 1960=100. This shall be subject to the necessary amendments
to be made to the relevant provisions of Bank (Employees’) Pension Regulations,
1995.
Note :
(i) The increment component of FPA as given in column 2 of Schedule IV
shall rank for superannuation benefits.
(ii) For workmen who were in service in Area - I as on 31st December 1969,
and entitled to receive CCA, only that amount of CCA, which would have
been payable to him as per the terms and conditions as applicable then,
shall rank for Provident Fund to the extent of 50% subject to a maximum
of 30/- p.m.

174
16/02-06-2005
In respect of an employee other than the employee in State Bank of India, who is a
member of the Pension Fund, who retires or dies while iin service or otherwise ceases
to be in employment on or after the 1st May, 2005, ‘Pay’ for the purpose of pension
shall be the pay as in clause 6 of this settlement. This shall be subject to the necessary
amendments to be made to the relevant provisions of Bank (Employees’) Pension
Regulations, 1995.
Note: The Bank (Employees’) Pension Regulations, 1995 does not apply to the
employees of State Bank of India.
PENSION (IN BANKS OTHER THAN STATE BANK OF INDIA) W.E.F. 01-04-2010
16/27-04-2010

1. It is agreed between the parties that the terms of the Bank Employees’
Pension Regulations, 1995 dated 29th September 1995/26th March 1996 shall
not apply to the employees who join the services of Banks on or after 1st April
2010 ; and they shall be covered by a Defined Contributory Pension Scheme,
which shall be governed by the provisions of the Contributory Pension Scheme
introduced for employees of the Central Government w.e.f. 1st January 2004,
and as modified from time to time. Necessary amendments to the relevant
provisions of the Bank Employees’ Pension Regulations, 1995 dated 29th
September 1995/26th March 1996 shall be carried out following the procedure
in this regard.

2. Further to Clause 6 of the Bipartite Settlement dated 2nd June 2005, it is agreed
between the parties as under:

(i) With effect from 1st May 2005, the pension of employees who retired or
died while in service during the period 1st April 1998 to 31st October 2002
will be re-fixed based on the definition of ‘Pay’ as defined in Clause 6(iii)
of the Bipartite Settlement dated 27th March 2000. No arrears of pension
and commuted value of pension will be payable on account of such
re-fixing of pension.

(ii) With effect from 1st May 2005, the pension of employees who retired or
died while in service during the period 1st November 2002 to 30th April
2005 will be re-fixed based on the definition of ‘Pay’ as defined in Clause
6 of the Bipartite Settlement dated 2nd June 2005. No arrears of pension
or commuted value of pension will be payable on account of such re-
fixation of pension.

175
3. Further to Clause 7(2) of the Bipartite Settlement dated 2nd June 2005, it is
agreed between the parties as under:

(i) On and from 1.5.2005, in the case of employees who retired during the
period 1.4.1998 to 31.10.2002, dearness relief shall be payable for every
rise or be recoverable for every fall, as the case may be, of every 4 points
over 1684 points in the quarterly average of the All India Average Consumer
Price Index for Industrial Workers in the series 1960=100. Such increase
or decrease in dearness relief for every said four points shall be calculated
in the manner given below:

Scale of Basic Pension The rate of Dearness Relief payable

Pension per month as a percentage of Basic

(i) Upto 3550 0.24 per cent

(ii) 3551 to 5650 0.24 per cent of pension exceeding 3550
plus 0.20 per cent of the basic pension in
excess of 3550
(iii) 5651 to 6010 0.24 per cent of 3550 plus 0.20 per cent
of the difference between 5650 and
3550 plus 0.12 per cent of basic pension
in excess of 5650
(iv) Above 6010 0.24 per cent of 3550 plus 0.20 per cent
of the difference between 5650 and
3550 plus 0.12 per cent difference between
6010 and 5650 plus 0.06 per cent of
basic pension in excess of 6010

(ii) In respect of retirees for the period 1.11.2002 to 30.4.2005 for whom pension
has been revised w.e.f. 1.5.2005 based on definition of pay in terms of
Clause 6 of the Bipartite Settlement dated 2nd June 2005, dearness relief
shall be payable w.e.f. 1.5.2005 for every rise or be recoverable for every
fall as the case may be of every four points over 2288 points in the quarterly
average of All India Average Consumer Price Index for Industrial Workers
in the series 1960=100 @ 0.18% of the basic pension.
(iii) In respect of employees who retire on or after 1.5.2005, dearness relief
shall be payable for every rise or be recoverable for every fall, as the case
may be, of every four points over 2288 points in the quarterly average of
the All India Average Consumer Price Index for Industrial Workers in the
series 1960=100, at the rate of 0.18 per cent of basic pension.

176
 (iv) In respect of employees who retired or died while in service on or after
1.05.2005 Dearness Relief shall be payable at 0.18% of the basic pension
or family pension or invalid pension or compassionate allowance as the
case may be. Dearness Relief in the above manner shall be paid for
every rise or fall of 4 points over 2288 points in the quarterly average of
the All India Average Consumer Price Index for industrial workers in the
series 1960=100.
Note:
The Dearness Relief as above shall be payable for the half year commencing
from the 1st day of February and ending with 31st day of July on the quarterly
average of index figures published for the months October, November and
December of the previous year and for the half year commencing from 1st day
of August and ending with the 31st day of January on the quarterly average of
the index figures published for the months of April, May and June of the same
year.

6/27-04-2010

DEFINITION OF PAY:

In reiteration of Clause 6 of the Bipartite Settlement dated 2nd June 2005, ‘Pay’ for the
purpose of D.A., HRA and superannuation benefits shall mean Basic Pay, Stagnation
increments, Special Pay, Graduation Pay, Professional Qualification Pay and
Officiating Pay, if any.

Note:
The increment component of Fixed Personal Pay as given in column 2 of Schedule
IV shall rank for superannuation benefits.

ANOTHER OPTION FOR PENSION (IN BANKS OTHER THAN STATE BANK OF
INDIA)

32/27-04-2010

Workmen employees in the service of the bank as on 27th April 2010 and who exercise
their option to join the Pension Scheme in terms of the Settlement dated 27th April
2010 will contribute from their arrears on account of wage revision in terms of this
Settlement an amount of 878 crores towards their share in the amount of
1800 crores offered by UFBU towards 30% of the estimated funding gap of
6000 crores. The said amount is worked out @ 2.8 times of the revised pay
payable for the month of November 2007.

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 CHAPTER - XXIV
COMPUTERISATION / MECHANISATION AND
TECHNOLOGICAL UPGRADATION
31/02-06-2005

In supersession of all subsisting industry level settlements relating to Computerisation

and Mechanisation for the time being in force it is hereby agreed between the parties
as follows:

a. In the matter of computerisation of banks’ business and technological upgradation

of its operations, banks may decide on the level, type, scope and extent of
application, function and location of state-of-the-art technology and equipments
to the extent necessary.
b. Arising out of business process re-engineering necessitated by introduction of
state-of-the-art technology and equipments, banks may redesign and assign role,
duties and responsibilities to their staff within the provisions of the settlement.
c. Banks may utilise the services of staff for marketing and selling of different products
of Banks / their subsidiaries / joint ventures or any other product of any agency /
entity with whom the banks may have arrangements, based on their business
needs and requirements,
d. Banks may acquire/modify/change or discontinue businesses and business
processes, wherever necessary.
e. Banks may, arising out of technology, review the existing jobs, and work
processes, systems and procedures and re-engineer them,
f. Banks may switch to the single window and such other system of operations
wherever so decided.
g. Banks may adopt new systems and procedures which are demanded/facilitated
by latest technology solutions such as networking of branches and centralised
accounting, shared operations centres, call centers, processing centres, acting
on electronically communicated messages, dependence on digital/electronic
signatures and the like.

h. While it shall be the banks’ endeavour to retain/re-skill staff and to develop in-
house competencies, they may outsource IT and its related activities in respect
of specialised areas where in-house capability is not available.

178
i. The selection and/or placement of staff for work to make the fullest and most
efficient use of the computerised systems/ devices/ equipments etc. will be based
on combination of skill tests, aptitude test, hands-on test and suitability, to be
determined by the bank.

j. The bank may, depending upon its requirements, resort to round-the-clock and
seven-days-a-week working and staggering of working hours at its branches/
offices/service units.

k. It is clarified that the Computer Operators may be assigned any other routine
duties of their cadre as already provided in subsisting Bipartite Settlements.

l. Where a female operator who is in the family way desires to discontinue working
on Computer during the period of her pregnancy, she will be exempted at her
written request from operating the Computer, The special pay shall not be paid to
her for the period during which she is on duty but exempted from operating the
Computer, but shall be paid during the period of her leave of any kind subject to
her acceptance to perform duties as Computer Operator on resumption.

m. There will be no retrenchment on account of computerisation. Staff displaced at

a centre/ place as a result of computerisation / mechanisation shall be deployed
in terms of this settlement.

Note:

In case of State Bank of India, the extant provisions of Settlement dated 22nd July
2003 arrived at Bank level with the Al! India State Bank of India Staff Federation on
Technology, Redeployment/Transfer of Staff and Other Issues shall remain
unchanged and shall remain operative.

179
 CHAPTER - XXV
MISCELLANEOUS PROVISIONS

IMPROVEMENT IN WORKING IN BANK’S BRANCHES/OFFICES ETC.

XVIII/17-09-1984
1. Having regard to the vital role of the banking industry in the national
economy and the various social and economic responsibilities including
implementation of National programmes they have been entrusted with from
time to time, parties agree that there is a need to improve housekeeping
in the offices/branches of banks throughout the country, to ensure efficient
cordial and speedy customer service at all times in the banking industry and
to promote harmonious industrial relations and better discipline at all levels.
2. (1) Every Workman shall take all possible steps to ensure and protect the
interest of the bank and discharge his duties with utmost integrity,
honesty, devotion, and diligence.
(2) Every workman shall be at his place of work, commence the allotted
work at the time fixed and notified, work for the full prescribed hours
of work and give maximum output.
(3) Unions agree that the authority of the branch manager/officer-in-charge
in matters like deployment of staff from time to time and enforcement
of rules of the bank in the matter of discipline, customer service and
the like, shall be respected by all the workmen so as to ensure the day-
to-day smooth and efficient functioning of the branch/office/department
is not adversely affected. If however, there be any grievance or
dissatisfaction in regard to the handling of such matters by the Branch
Manager or any other authority or in regard to the exercise of such
authority, the matter shall be resolved expeditiously and amicably
through mutual discussions with the Branch Manager or the authority
concerned either by the aggrieved workman himself or by the office-
bearer (s) of the concerned union or its unit avoiding dislocation of
customer service.
Managements discourage abuse of authority on the part of any branch
manager or other authority concerned.
Unions deprecate use of any violence or abusive language or
vulgar slogans by name against individual officers or their family
members.

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22/14-02-1995
(i) Every workman shall take all possible steps to ensure and protect the
interest of the bank and discharge his duties with utmost integrity, honesty,
devotion and diligence. Further, the unions exhort their members to make
all out endeavours for betterment of customer service and to contribute
towards bank’s efforts for enhancing customer satisfaction.
(ii) The Unions reiterate that every workman, without exception, (except where
exempted specifically under any written communication/order of the bank
management), shall be at his place of work, commence the allotted work at
the time and give maximum output.
(iii) The unions discourage any type of borrowings by the employees from the
Bank’s clients.
(iv) Management shall take necessary measures to provide effective customer
service. The management and the Unions jointly shall take expeditious steps
for resolving legitimate grievances of the employees in the interest of
harmonious industrial relations.
(v) In furtherance of the objective towards improvement in working, parties
reiterate that what has been stated in Annexure 1 to the Settlements dated
31st October 1979, and 17th September, 1984, form part of service conditions.
Any observance of any restrictive practice mentioned therein, shall constitute
a misconduct. The delinquent employee shall be liable for disciplinary action
for gross or minor misconduct depending upon the circumstances in each
case.
The gross/minor misconduct as stated in this Clause shall be in addition to gross/
minor misconduct listed under Clause 21(ii) and (iii) of this Settlement.
(A) IMPROVEMENT IN CUSTOMER SERVICE:
22/10-04-1996
Both the managements and the unions appreciate the need to improve the customer
service and the working of the offices of the banks. To achieve this, both sides agree
to maintain cordial industrial relations. The unions also appeal to the employees to render
full day’s work and extend courteous and prompt customer service.
GODOWN INSPECTORS
2.14/19-10-1966
In future godown inspection duty shall not be entrusted to any one lower than a

181
“Head Cashier Category E” or “Special Assistant”. Consequently, it will be open to
withdraw the godown inspection duty from a workman who is at present performing
it, if his status is lower than a “Head Cashier Category E” or “Special Assistant”.
This, however, will not preclude a bank requiring a workman to accompany and assist
the person inspecting godown(s).
CONVERSION OF CASHIERS AND TYPISTS
20.15/19-10-1966
Requests from clerks in Cash Departments for transfer out of the Cash Department
(where such workmen, by the terms of their employment, are not liable to such
transfers) and the requests of typists for transfer to non-typing clerical work will be
considered sympathetically on merits.
NIGHT CLEARING
6/31-10-1979
The parties to the Settlement are agreeable in principle to the introduction of a night
shift for the clearing departments for night clearance of cheques in the major cities
in the country. The details of the scheme along with the allowances to be paid to
the employees who attend the night shift will be discussed further and settled
between the parties.
BUSINESS HOURS
21/27-03-2000
In supersession of Clause 22(b) of the Bipartite Settlement dated 10th April, 1989,
it is agreed that it is the managements’ prerogative to introduce extended business
hours, shift system in branches and seven day banking modules depending upon
the business potential, the needs and aspirations of the customers etc. without
affecting the total working hours of employees subject to statutory provisions of
Shops and Establishments Act, wherever applicable.
COMBINED DESIGNATIONS
20.2/19-10-1966
An employee with combined designations will be entitled to the appropriate special
allowance if an allowance is provided for in this Settlement for either of his designations.
20.3/19-10-1966
In banks where it is the practice to appoint only godown keepers for attending to
godown work, it is understood that in the Area III offices having a complement of

182
not more than three clerks (other than the in-charge of the office), any person who
is not a member of the subordinate staff may be required, in leave arrangements
to perform godown-keepers duties.
1/31-10-1979
(i) There should be no restriction on combination of designations at rural
branches. A rural branch will be an office situated at a centre with a
population of less than 10,000. Having regard to the special characteristics
of these branches, the management shall be free to work out the staffing
pattern based on the needs of the organisation.
It is hereby clarified that
a. Where a person has been appointed as a ‘clerk-typist’ it will be a combined
designation.
b. Entrustment of duties attracting special allowance will not amount to
granting an additional designation.
19/14-02-1995
In partial modification of Clause 20.1 of Bipartite Settlement dated 19-10-1966,
Clause VIII of Bipartite Settlement dated 08-11-1973 and Clause IX (1) of Bipartite
Settlement dated 31-10-1979.
(i) As in the case of rural branches there shall be no restrictions on combination
of designations at semi-urban branches.
(ii) In case of workman employees recruited hereafter, restriction of designation
shall not apply and they shall be required to perform any duty of the cadre
as per vacancies advertised or appointment letters issued.
STANDING ORDERS
561/S.A.
The directions given by us in various matters that fall under “Standing Orders” taking
the term in its wider significance should be understood as being subject to the
provisions of any law for the time being in force. Thus the provisions of Section 33
of the Industrial Disputes Act, 1947 will apply if there be an industrial dispute and
the dispute is referred to conciliation or to a tribunal for adjudication.
RETRENCHMENT OF SUPERFLUOUS WORKMEN
507/S.A.
1. Retrenchment of superfluous workmen should be on the principle of “last

183
 to come and first to go” subject to the qualification that the junior-most
also happens to be the least efficient.
2. In deciding who is the junior-most among the superfluous, A and B class
banks should take the town as the unit.
3. To avoid all suspicion of victimization no employee who has been
transferred and working in the new place for less than six months may
be retrenched.
SEARCH
510/S.A.
We direct that an officer appointed for the purpose by the Manager shall have the
power to search or cause to be searched, an employee when the latter leaves
the premises of a bank, provided that the person of a female employee shall not
be searched by or in the presence of a male, and that every search shall be
conducted in the presence of not less than two persons.
TEMPORARY STOPPAGE OF WORK
511/S.A.
1. In the event of a fire, catastrophe, an epidemic, civil commotion or other
cause beyond the control of the bank, it may at any time, without notice
or compensation in lieu of notice, close down, as the event may require,
the bank or any branch, department or part thereof for a reasonable period.
2. An employee affected by a stoppage under Clause (1) above shall be
deemed to be on privilege leave to the extent such leave is admissible;
and for the balance of period, except where his services, are dispensed
with he shall be deemed to be on leave without pay.
MAINTENANCE OF SERVICE BOOKS
516/S.A.
We think that in the case of every employee except on who is engaged on a part-
time basis, whether he is temporary employee, a probationer or a permanent
employee, a service book should be maintained, containing atleast the following
particulars; name, date of birth, identification marks, entry into service as a temporary
employee or probationer, confirmation or permanent appointment, pay on such
occasions, promotion, pay on promotion, disciplinary action, if any, taken, any
remarks about his efficiency or character made by his superiors, leave taken or

184
absence from duty, officiating or acting appointments and deputation, if any with
dates wherever possible, resignation or retirement. When adverse remarks are made
against an employee, a gist thereof should be communicated to him in writing with
the least possible delay. We direct accordingly.
REDRESSAL OF GRIEVANCES
517/S.A.
1. An employee desirous of the redress of a grievance relating to unfair
treatment or wrongful exaction on the part of the bank or a superior shall
either himself or through a representative of registered union, submit a
complaint to the Manager or any officer appointed by the manager in his
behalf. The employee, shall also have the right to endorse a copy direct
to the head of the department for information.
2. The manager or such officer shall, as soon as possible investigate the
complaint at such times and places as he may fix. The employee concerned
or the representative of the union shall have the right to be present at such
investigation. A copy of the proceedings shall be supplied to him if he asks
for one.
Provided that complaints relating to assault or abuse by any person holding
a supervisory position or refusal of any application for urgent leave shall
be enquired into immediately by the manager or by such officer as he may
appoint in his behalf.
SERVICE CERTIFICATE
518/S.A.
Every employee who leaves service or retires or is dismissed or discharged shall
without avoidable delay be given a service certificate.
ISSUE NOTICES AND ORDERS
519/S.A.
Notices which are required to be given shall be served individually on the employees
affected and their acknowledgments taken, and shall also be exhibited on the notice
boards of the bank at the offices or establishments concerned. Such notices as are
so exhibited shall be in English and also in the principal language of the district or
locality in which each such office or establishments is situated. Any notice, order,
charge-sheet, communication, or intimation which is meant for an individual employee
shall be in a language understood by the employee concerned. In the cases of an

185
absent employee notice shall be sent to him by registered post, with acknowledgment
due.
XIV (4)/17-09-1984
In partial modification of clause 19.16 of the First Bipartite Settlement dated 19th
October 1966 and corresponding provision in any Award or Settlement of any bank,
where any notice, order, charge-sheet, intimation or any other official communication
which is meant for an individual employee is sent to him by registered post
acknowledgement due at the last recorded address communicated in writing by the
employee and acknowledged by the bank, the same is to be deemed as good
service.
PROCEDURE FOR TERMINATION OF EMPLOYMENT
522/S.A.
1) In case not involving disciplinary action for misconduct and subject to
Clause (6) below, the employment of a permanent employee may be
terminated by three months’ notice or on payment of three months’ pay
and allowances in lieu of notice. The services of a probationer may be
terminated by one month’s notice or on a payment of a month’s pay and
allowances in lieu of notice.
2) A permanent employee desirous of leaving the service of the bank shall
give one month’s notice in writing to the manager. A probationer desirous
of leaving the service of the bank shall give 14 days’ notice in writing to
the manager. A permanent employee or a probationer shall, when he
leaves service, be given an order of relief signed by the manager.
3) If any permanent employee leaves the service of the bank without giving
notice, he shall be liable to pay the bank one month’s pay and allowances.
A probationer, if he leaves service without giving notice, shall be liable for
14 days’ pay and allowances.
4) The services of an employee other than a permanent employee or probationer
may be terminated and he may leave service, after 14 days’ notice. If such
an employee leaves service without giving such notice, he shall be liable
for a week’s pay (including all allowances).
5) An order relating to discharge or termination of service shall be in writing
and shall be signed by the manager. A copy of such order shall be supplied
to the employee concerned.
6) In cases of contemplated closing down or retrenchment of more than five
employees, the following procedure shall be observed:-

186
 (a) Two months’ notice of such proposed action shall be given individually
to all the employees concerned, with statement of the reasons for such
proposed action;
(b) The manager or an officer empowered in this behalf shall within the
period of such notice hear any representation from the employees
concerned or any registered union of bank employees;
(c) After the hearing of such representation and receipt of a report in the
matter, if necessary by the management, if it decides to give effect
to the contemplated closing down or retrenchment in the original or
an amended for, the services of the employee may be terminated by
giving notice or payment in lieu thereof for the periods prescribed
above.
524/S.A.
We have already provided for gratuity being given in the case of termination of the
services of a workman who has put in 10 years service and more. For other cases,
we direct that compensation should be paid on the following scale:-
(1) Temporary employees who are engaged for indefinite periods shall be
entitled to one months pay and allowances. Where, however, temporary
employees are engaged for definite periods which are mentioned in their
appointment letters, no compensation will be payable.
(2) Permanent employees will be entitled to half a month’s pay and allowances
for every completed year of service, subject to minimum payment of two
months’ pay and allowances.
(3) Income-tax and Super-tax, if any, on compensation under Clause (1) and
(2) above shall be borne by the bank.
(4) These payments will be in addition to such pay and allowances as may be
due to lieu of previous notice of termination where such notice is not given.
TEMPORARY GODOWN-KEEPERS
20.13/19-10-1966
Temporary godown-keepers and godown-watchmen who are required to look after one
or more godowns belonging generally to one party and whose salary and allowances
are generally borne by the parties who are owners of the goods in the godowns, shall,
if their work has been found satisfactory and if their services can be utilised to look after
other godowns in the same place or other places or in the clerical establishment of the
bank, on completion of one year’s service, be given preference for absorption in the
permanent services of the bank, subject to the bank’s recruitment rules, if any.

187
SPECIAL PROVISION FOR STATE BANK OF INDIA

33/27-04-2010

(i) The provisions of Settlements dated 30th January 1995 and 22nd July 2003
relating to Special Compensatory Allowance (SCA) as prevailing in the Bank
shall be continued unchanged.

(ii) The disposal of the balancing cost of pension in respect of State Bank of
India arising out of this Settlement shall be decided by the bank with the
concurrence of Government of India.

GENERAL PROVISIONS

37/02-06-2005

(i) In supersession of clause 22(c) of Bipartite Settlement dated 10th April 1989,
watch and ward staff and employees manning installations which require
round-the-clock maintenance and surveillance on duty on days of agitation /
strike action are exempt from participating in such action.

(ii) A member of the award staff shall submit details regarding his assets and
liabilities to the bank as and when sought for. Failure to do so shall be treated
as a gross misconduct.

FITMENT ON PROMOTION

28/14-02-1995

Fitment of a workman employee, on promotion to the next higher cadre, may be

determined by the parties through mutual discussion.

IMPLEMENTATION

34/27-04-2010

The various provisions of this Settlement shall take effect from the dates specified
hereunder, unless provided to the contrary and the financial benefits emanating
therefrom shall be given effect to within a period of 90 days from the date of this
Settlement.

188
 With effect from
1. Scales of Pay:
As per Clause 4 (a) 1st November, 2007
As per Clause 4 (b) 1st May, 2010
2. Stagnation Increment including 7th stagnation increment
Dearness Allowance, Professional Qualification Pay/
Graduation Pay, House Rent Allowance, Provident Fund,
Gratuity, Fixed Personal Pay, Transport Allowance,
Annual Medical Aid, Special Area Allowance,
Hill & Fuel Allowance, Split Duty Allowance,
Cycle Allowance, Project Area Compenstatory Allowance 1st November, 2007
3. Part-time employees:
a) Increase in lumpsum wage: 1st November, 2007
b) Elevation to one third scale wages 1st May, 2010
4. Special Pay:
a) Clause 11 (i) and Clause 11 (xi, xii, xiii & xv) 1st November, 2007
b) Clause 11 (ii) to Clause 11 (x) & 11 (xiv) 1st May, 2010
c) Clause 11 (xvi) Date of Settlement
(27th April, 2010)
5. Halting Allowance, Washing Allowance, Road mileage 1st May, 2010
Hospitalisation
6. LFC, Definition of Family, Date of Settlement
Special Leave for Hysterectomy (27th April, 2010)
DATE OF EFFECT AND OPERATION
35/27-04-2010
i. This Settlement shall be binding on the parties for five years from 1st November
2007.
ii. The terms and conditions hereof shall continue to govern and bind the parties
even thereafter until the Settlement is terminated by either party giving to the
other a statutory notice as prescribed in law for the time being in force.
iii. The All India Bank Employees’ Association, the National Confederation of Bank
Employees, the Bank Employees’ Federation of India, the Indian National Bank

189
 Employees Federation and the National Organisation of Bank Workers on behalf
of the workmen agree that during the operation of this Settlement, the workmen
will not for any reason whatsoever, raise any demand of any nature whatsoever
on any of the banks in respect of matters, monetary or otherwise, covered by this
Memorandum of Settlement.
iv. Copies of the Memorandum of Settlement will be jointly forwarded by the parties
of the authorities listed in Rule 58 of the Industrial Disputes (Central) Rules,
1957 so that terms and conditions thereof are binding on the parties as provided
in law.
INTERPRETATION
36/27-04-2010
If there is any difference of opinion regarding interpretation of any of the provision of
this Settlement the matter will be taken up only at the level of the Indian Banks’
Association, the All India Bank Employees’ Association, the National Confederation
of Bank Employees, the Bank Employees’ Federation of India, the Indian National
Bank Employees Federation and the National Organisation of Bank Workers for
discussion and settlement.

190
 CHAPTER - XXVI
RESTRICTIVE PRACTICES

SCHEDULE III/31-10-1979 Annexure 1/17-09-1984

PREAMBLE
The IBA, AIBEA and NCBE are in full agreement that no efforts should be spared
by them to ensure efficient courteous and speedy customer service in the banking
industry. With this common objective in view, some “restrictive practices” were gone
into jointly. The Unions do not accept that there are any such practices. It is admitted
by both sides that the details of situations or circumstances in which certain incidents
might have taken place are not available and hence they cannot be gone into in
detail. The Unions, however, make it clear that it has never been the intention of
the unions to indulge in any restrictive practices. The IBA concedes that in view of
the size of the industry, there are difficulties in attaining perfection in the matter of
control of the large work force and also of regulation and distribution of work at all
the offices in the country. Both IBA and the Unions agree that much depends on
the climate that develops and the relations that are built at the various offices by
mutual understanding and respect for each other’s difficulties.
Accordingly, the IBA, AIBEA and NCBE jointly express themselves on the issue as
under:
(1) It is for the management to distribute the work equitably amongst the employees
with a view to ensuring that everyone has a full day’s work. Adjustments would,
however, become necessary in the day-to-day working of the offices and, in
the interest of smooth working, the workmen should carry out all reasonable
orders of the local management. The workmen would, however, be free to take
up with the management any genuine difficulty in this behalf. The question of
fixing any arbitrary ceiling on quantum of work by the employees themselves
does not, however, arise.
(2) While the services of senior employees would generally be utilised on desks
requiring experience and knowledge, no one should refuse to work on any desk
in exigencies that may arise.
(3) The allotment of ledger/s to ledger keepers would depend on the number of
transactions and the volume of work and not on the number of ledgers.
Accordingly it may be justifiable and necessary to allot more than one ledger
whether in Current Account, Cash Credit, Demand Loan, etc.

191
(4) Employees with double designations such as clerk-typist, cashier-cum-clerk,
etc. may be asked to perform both the duties on the same day. It would,
however, be ensured that they are not subjected to frequent changes of work
on the same day. Where the employee who is handling cash is asked to work
outside cash section, he should be given time to tally and hand over his cash.
(5) Where volume of cash work is not heavy, a cashier may be required to work
both as a Paying and Receiving Cashier.
(6) Godown-Keepers attached to branches, may be required to perform clerical
duties whenever they are free from godown work.
(7) The system of checking payment made by an employee by another employee
and of entrusting the job of issuing tokens exclusively to an employee, are
prevailing only in certain banks at certain centres. The Management may
decide on their own about necessity of continuance or otherwise of these
systems.
(8) On special occasions it might be necessary to attend to cash transactions
outside business hours. However, due care and caution should be exercised
by managements in entertaining such late transactions. Such late transactions
should be duly authorized by a competent official.
(9) Normally cash should be accepted/paid at the cash counter. But employees
should accept/make payment of cash other than at cash counters under
instructions from a competent official in special circumstances and in such
cases the concerned employee would be granted immunity from attended risks.
(10) The work of clerks posted in administrative offices includes drafting letters,
dealing with correspondence, etc. Similar work of a routine nature should also
be performed by clerks posted in branches/departments and offices other than
administrative offices.
(11) The balancing of ledgers/registers and calculations of monthly products/interest,
etc. should not be claimed as work to be necessarily and essentially performed
only outside normal working hours.
(12) An employee who is assigned special allowance duties must, subject to
availability of time, also perform routine duties of his cadre.
22(v)/14-02-1995
In furtherance of the objective towards improvement in working, parties reiterate that
what has been stated in Annexure 1 to the Settlements dated 31st October 1979,

192
and 17th September, 1984, form part of service conditions. Any observance of any
restrictive practice mentioned therein, shall constitute a misconduct. The delinquent
employee shall be liable for disciplinary action for gross or minor misconduct depending
upon the circumstances in each case.
The gross/minor misconduct as stated in this Clause shall be in addition to gross/
minor misconduct listed under Clause 21(ii) and (iii) of this Settlement.
RESTRICTIVE PRACTICES
(1) Fixing any arbitrary ceiling on quantum of work by the employees themselves.
(2) Refusal to work on any desk in exigencies that may arise.
(3) Refusal to accept allotment of more than one ledger whether in Current
Account, Cash Credit, Demand Loan etc. The allotment of ledger/s to ledger
keepers would depend on the number to transactions and the volume of the
work, and not the number of ledger.
(4) Refusal by an employee with double designations such as clerk-typist, cashier-
cum-clerk, etc., to perform both the duties on the same day.
(5) Refusal by a cashier to work both as a Paying and receiving Cashier.
(6) Refusal by Godown-keepers attached to branches to perform clerical duties,
whenever they are free from godown work.
(7) Insistence, for checking payment made by an employee by another employee
and for entrusting the job of issuing tokens exclusively to an employee.
(8) Refusal to attend to cash transactions outside business hours when duly
authorised by a competent official.
(9) Refusal to accept/make payment of cash, other than at cash counters when
instructed by a competent official.
(10) Refusal to perform work of a routine nature including drafting letters, dealing
with correspondence, etc., by clerks posted in branches/departments and
offices including administrative offices.
(11) Refusal to perform work relating to the balancing of ledgers/registers and
calculations of monthly products/interest, etc. within working hours claiming
that the same is meant for completion outside normal working hours.
(12) Refusal by an employee who is assigned special allowance duties to perform
routine duties of his cadre.
(Refer: IBA Cir. PD/CIR/76/90/147 dt. 02-05-1995)

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 CHAPTER - XXVII
IBA CIRCULARS AND GUIDELINES
(CLARIFICATIONS)
1. IBA Circular No: PD/CIR/76/90 dated 16-08-1989
An Officer reverted to clerical cadre shall draw stagnation increment unless the
reversion is at his request.
If an employee refuses to accept an allowance carrying post, he may still be
allowed to earn stagnation increments. Only when he refuses the offer of
promotion made to him in writing, he should not be given any stagnation
increment which accrues to him thereafter.
If the offer of promotion was made before 08-09-1983 but refusal to accept
promotion was conveyed on or after 08-09-1983 by the concerned employee,
he shall not be eligible for stagnation increments, which become due thereafter.
The same shall apply in regard to cases where promotion was accepted prior to
08-09-1983, but the reversion was sought and granted on or after 08-09-1983.
Refusal to appear for a promotional examination does not deprive a workmen
employee from earning stagnation increments as per the provisions made in
the 1983 settlement. There is no change in the provision in the Fifth Bipartite
Settlement. The stagnation increment once released to the employee need not
be withdrawn even if he refuses the offer of promotion made to him thereafter.
Eligibility for promotion is not the same as offer for promotion. Similarly, refusal
to appear for a promotion examination is not the same as refusal to accept
promotions. As such, employees who fall in the former category shall be eligible
for stagnation increment.
The non-adjustable personal allowance of Rs. 19.80 as provided in the Third
Bipartite Settlement will continue to be paid, as it has not been deleted in the
Fifth Bipartite Settlement.
The Settlement provides that pay for the purpose of DA shall include officiating
allowance, if any. The reference to officiating allowance in the Settlement is
officiating allowance payable which is in terms of the First Bipartite Settlement,
and which remains unchanged.
HOUSE RENT RECOVERY
If a bank has provided accommodation to its employees in a Project Area and
has been recovering 6% of basic pay as house rent apart from not paying the

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House Rent Allowance, the same should continue in terms of the Fifth Bipartite
Settlement also. The banks should not pay any house rent subsidies in Project
Areas. If some banks have been paying so, it should be withdrawn and in any
case, should remain frozen at the existing levels till such time it is withdrawn.
Where an accommodation has been provided by the Bank, the recovery of full
rent as per the provisions of the Fifth Bipartite Settlement should be made
disregard of the fact that the employee in a particular month was on half-pay or
loss of pay.
SPECIAL ALLOWANCE
Special Allowance will not rank for the purpose of City Compensatory Allowance.
It shall, however, rank for Hill & Fuel Allowance in the same manner as it ranks
for superannuation benefits.
HILL AND FUEL ALLOWANCE
The fixed personal allowance payable to employees who were drawing Hill and
Fuel Allowance at centres not included in the Fifth Bipartite Settlement should
be equivalent to the Hill and Fuel Allowance actually drawn by them under old
provisions on old basic pay.
Personal Allowance payable to employees equivalent to the quantum of Hill
and Fuel Allowance they actually received under old provisions with their March,
1989 salary, will not be payable to any employee who is posted at that branch
on or after 10th April 1989. The protection is given only to such employees till
they remain posted at the same branch in the same cadre.
PART-TIME EMPLOYEES
The block for Leave Fare Concession should begin from 01-11-1987 or date of
joining the service whichever is later. The concept pro rata should apply with
reference to the scale wages at the time of availment.
Leave Fare Concession on pro rata basis to permanent part-time employees
drawing scale wages would mean pro rata distance and not pro rata period
time.
Leave encashment for part-time employee in scale wages will be the same as
the wages drawn by him, i.e. 1/3, 1/2 or 3/4 of the full pay and allowances for
the period the leave is encashed as the case may be.
Part-time employees should be paid wages as per the provisions of the
Settlement which will supersede any local arrangements for payment of wages
to part-time employees.

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 Minimum quantum stipulated for CCA, HRA, will apply to part-time employees
in scale wages on pro rata basis.

GRATUITY

Clause 20 of the Fifth Bipartite Settlement does not affect the condition in regard
to the minimum service required for payment of gratuity. In other words, the
minimum service required for eligibility for gratuity would be 10 years and not 9
years and six months or more but less than 10 years.

BUSINESS HOURS

The provision in regard to fixing of business hours in the settlement is only a

clarificatory provision. For any change or increase in business hours permission
will have to be obtained from the Reserve Bank of India in the usual manner.

SICK LEAVE

An employee may be sanctioned sick leave if the medical certificate is given by

a practitioner of medicine other than allopathic provided he is a registered medical
practitioner.

HOSPITALISATION EXPENSES

The time factor indicated for minor and major operation is incidental. For
reimbursement purpose, the type of operation specified under minor, major or
special should be the guiding factor.

Reimbursement of expenses incurred on tests required to be carried out at pre-

hospitalisation stage may be reimbursement along with reimbursement of other
hospitalisation expenses.

If hospitalisation is required for treatment under a medical branch other than

allopathic, the expenses can be imbursed as per the scheme, with the approval
of the bank’s medical officer/approved doctor of the bank.

2. REIMBURSEMENT OF HOUSE RENT ALLOWANCE

IBA Circular No. PD/CIr/76/E (iv)/850 dated 10-08-1990

An award staff employee whose spouse has been provided with residence by
the bank, may be paid HRA in terms of the provisions of Bipartite Settlement.

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3. CLARIFICATIONS TO THE PROVISIONS OF THE BIPARTITE
SETTLEMENTS

IBA Circular No. PD/CIR/76/90/187 dated 27-04-1991

REIMBURSEMENT OF EXPENSES UNDER THE HOSPITALISATION

SCHEME
In Annexure II of the ‘Guidelines of Reimbursement of Hospitalisation Expenses’
(Schedule III) of the Fifth Bipartite Settlement dated 10th April 1989, classification
of operations as falling under ‘special’, ‘major’ and ‘minor’ has been given.
Accordingly, reimbursement of expenses has to be considered. It is therefore
understood, that even if the time taken for an operation which is classified as
‘major’ is less than the stipulated, reimbursement of expenses as applicable for
‘major’ operation will be considered. In other words, the time factor indicated in
the schedule is to be treated as only ‘incidental’ or ‘indicative’. Further, where
an operation which is classified as ‘minor’ under the Scheme is certified by the
hospital authorities to be a major one-having regard to the circumstances leading
to the operation, etc. - reimbursement application for ‘major’ operation could be
considered.
Cost of kidney paid to the donor by the employee is not reimbursable.
As regards expenses on hospitalisation of the donor, the same may be
considered only if the donor is a member of the employee’s family as per the
definition of the term ‘family’ in the Bipartite Settlement.
However, in exceptional cases, the bank may consider reimbursement of
hospitalisation expenses of donor even if he is not covered by the definition of
the term ‘family’ to the extent the same would be reimbursable in case of donor
is a family member.
It would be in order to consider reimbursement of expenses incurred on tests
required to be carried out at pre/post hospitalisation stage under the
hospitalisation scheme.
REIMBURSEMENT OF EXPENSES UNDER LEAVE FARE CONCESSION
Journey under leave fare concession should commence before the expiry of
the block. However it is not a pre-condition that an employee/his family members,
should complete the return journey also before the expiry of the block.
Where the employee is due for retirement, the journey under LFC should
generally be completed before the expiry of the block itself. However in

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 exceptional circumstances where the bank is not in a position to relieve the
employee well in advance, to enable the employee to complete both to and fro
journey prior to retirement, it may permit him to avail the same even if the
employee is to return after the date of retirement.
In such cases, banks may permit a reasonable period of time within which the
employee should complete the return journey. The family members however,
must avail LFC before the superannuation of the employee.
INCENTIVE FOR SMALL FAMILY
In terms of the guidelines issued by the Government, incentive for promoting
small family is payable where the couple has not more than three living children.
However, it would be in order, to consider payment of incentive even in cases
where a couple who has two living children gets twins at a subsequent delivery.
4. RELEASE OF INCREMENTS FOR THE PERIOD UNDER SUSPENSION
UPON REINSTATEMENT
IBA Circular No: PD/CIR/76/B/M/384 dated 11-06-1993
Please refer to our Circular No. PD/CIR/76/B/M/376 dated 13-06-1992 advising
the decision of the Personnel Committee regarding release of increments for
the period under suspension, upon reinstatement. The member banks were
advised as under:
“The Disciplinary Authority should invariably specify while passing orders
regarding the punishment, as to whether the increment/s for the period of
suspension are to be released or withheld. If the order is silent in this regard
then it should be construed that increment/s fallen due during the period of
suspension are to be released from the date suspension is lifted.”
Pursuant to the above decision, many banks have made enquires with IBA
whether past cases have to be reopened and fixation of pay done accordingly.
The personnel Committee of the Association at its meeting held on 20-05-1993
decided as under:
“Penalties awarded on or after 13-06-1992 (date of issue of IBA Circular No.
PD/CIR/76/B/M/376) should be interpreted in terms of clarifications given by
the Personnel Committee. Decisions taken on past cases (penalties awarded
prior to 13th June, 1992) as per the prevalent practice in the respective banks
should not be re-opened, for practical considerations.”

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SPECIAL /SPECIAL CASUAL LEAVES AS PER IBA GUIDELINES
A) FOR BLOOD DONATION
One day special casual leave on the day of donation. Employee has to
produce a certificate from the medical officer of the hospital where he has
donated the blood. If the employee donated blood after office hours he
may be granted 1 day special casual leave provided the next day does
not happen to be a holiday or weekly off.
B) FOR EXERCISING FRANCHISE - ELECTION
Wherever the Central or State Government have advised granting of special
casual leave to its employees for exercising their franchise in connection
with Parliamentary or Assembly Elections, special casual leave on the
same terms and conditions may be allowed to the employees of the banks.
(Ref: IBA’s Circular No. PD/MISC/41 Dt. 14-09-1982)
C) FOR NON-ATTENDANCE OF OFFICE DUE TO CURFEW
i) Where an employee was not able to attend the Office on account of
imposition of curfew either at the place of residence or at the place
of work, the absence should be treated as special casual leave.
ii) If the curfew was imposed only for a part of the working hours either
at the place of residence or at the place of work, the employees who
attended office during the non-curfew part of working hours should
be treated as having attended for the full day and the absence of
those employees who did not attend during the noncurfew hours
should be adjusted against their usual leaves.
iii) This special casual leave is provided only where it is physically
impossible to attend office. This leave is also granted when it is
impossible to reach office from curfew bound area which falls between
the route from residence and office of the employees and it is also
not possible to reach office even avoiding such route and the
Government authorities have not permitted employees to travel
through curfew bound areas.
D) FOR FAMILY PLANNING
Special causal leave is granted in the following cases as per Govt. directives
to promote family planning:
i) 6 days special casual leave to male employees for undergoing
sterilisation (Vasectomy Operation)

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 ii) 14 days special casual leave for female employees who undergo
non puperal/puperal tubectomy operation.
iii) 1 day special casual leave to female employees who had IDU
insertions.
iv) 7 days special casual leave to male employee whose wife undergoes
non-puperal tubectomy operation subject to the production of medical
certificate from the doctor who has performed the operation, to the
effect that the presence of the employee is essential for the period
of leave to look after the wife during her convalescence after the
operation.
v) An employee developing post-operative complication after sterlisation
may be granted special casual leave to the extent of the period for
which he or she is hospitalised for such post operative complications,
subject to production of necessary certificate from the concerned
hospital authorities/authorised medical attendant.
vi) An employee is not entitled to special casual leave after maternity
leave, if the sterlisation operation/recanalisation was done during
the maternity leave.
vii) The special causal leave connected with sterlisation, recanalisation
under family welfare programme may be suffixed as well as prefixed
to regular leave or casual leave. However, special causal leave
cannot be prefixed both to casual leave and regular leave. Special
casual leave may either be prefixed to regular or to casual leave and
not both. Similarly, special casual leave may be suffixed either to
regular leave or to casual leave and not both. The intervening
holidays and/or Sundays may be prefixed/suffixed to regular leave
as the case may be.
E) FOR ATTENDING COURTS OR ENQUIRIES
Special leave should be granted to employee who is summoned to attend
Courts or departmental enquiries outside the Bank for giving evidence on
behalf of the Bank.
5. REIMBURSEMENT OF TA/DA TO DEFENCE REPRESENTATIVES/
DEFENCE WITNESSES AT THE TIME OF ENQUIRY PROCEEDINGS
IBA CIRCULAR NO. PD/CIR/76/E (ix) 797 dated 02-09-1993
1) Every bank employee/officer who is called to give evidence in a
departmental inquiry either by the bank or the employee against whom
the inquiry is being held will be entitled to payment of TA/DA.

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 2) The officer or authority holding the inquiry shall furnish a certificate, as per
format enclosed, to every person appearing before him to give evidence.
The number of witnesses to be called may be left to the judgement of the
enquiry officer.
3) Where a prosecution witness is an employee of the bank, he shall be
entitled to receive, in respect of the attendance before the authority holding
the departmental inquiry, payment of a travelling allowance, halting
allowance as if he was on tour. If such witness is an officer then he shall
be considered reimbursement of hotel expenses in lieu of halting allowance,
as per his eligibility.
4) The defence witnesses whether workmen employee or officer may be
paid TA/DA as per entitlement. Reimbursement of lodging and boarding
expenses in lieu of halting allowance should not be considered.
5) Where a bank official is called to the departmental inquiry to give evidence
as to the facts which came to his knowledge in the discharge of his duties,
the minimum time required to be spent by him on the journey to and from
the place where the inquiry is held and the days on which he is required to
remain present before the authority holding the inquiry, shall be treated
as duty. However, if the bank official is on leave, the entire time spent by
him shall be treated as a part of the leave and he shall not be deemed to
have been recalled on duty.
6) Where the bank official is called by an authority holding the departmental
inquiry to give evidence as to the facts which have come to his knowledge,
at the time when he was not in the bank’s service, he may be paid travelling
allowance as provided in sub-para (1).
6. HOUSE RENT ALLOWANCE AT SEMI-SPECIAL PLACES
IBA Circular No. PD/CIR/76/E (IV)/431 DT. 23-06-1994
Please refer to our circular letter No. PD/CIR/76/E(iv)/E(xi)/1600 dated 7th
February, 1994 enclosing therewith, among others, population figures of Semi-
Special Places as per 1991 census.
We enclose for your information a copy of the minutes of the meeting held
between Indian Banks’ Association and all India Bank Employees’ Association,
National Confederation of Bank Employees, Bank Employees’ Federation of
India and Indian National Bank Employees’ Federation on 22nd June, 1994. It
has been agreed between the parties that pending revision of the Settlement
Surat, Jaipur and Lucknow shall be treated as Semi-Special Places for the

201
 purpose of house rent allowance to workmen employees. Consequently
workmen employees working at these places shall be eligible for house rent
allowance at the rate of 12% of pay with a minimum of Rs. 120/- p.m. and
maximum of Rs. 350/- p.m. w.e.f. 1st March, 1991.
7. REFIXATION OF PAY OF EX-SERVICEMAN RE-EMPLOYED IN BANKS ON
OR AFTER 1-11-1992
IBA Circular No. PD/CIR/76/589/2376 Dt. 19-02-1996
The ‘pay’ of ex-servicemen re-employed in banks’ service on or after 01-11-
1987 but before 14-02-1995 was fixed with reference to the pay scale of Fifth
Bipartite Settlement so as to protect the pay plus dearness allowance drawn by
them at the time of release from Armed Forces. Upon implementation of the
Sixth Bipartite Settlement with effect from 01-11-1992, the pay of such ex-
servicemen who joined the Banks’ service after 01-11-1992 but before
implementation of wage revision will have to be refixed with reference to the
new scale of pay.
We have since been advised by the Government that it has been decided that
in cases of all ex-servicemen who have joined the bank on or after 01-11-1992,
in their case the pay fixation has to be done as per the Sixth Bipartite Settlement.
Accordingly, the pay of ex-servicemen has to be refixed under the Sixth Bipartite
Settlement.
Over payments, if any, on account of pay fixation to an ex-serviceman who
joined between 01-11-1992 and 14-02-1995 should be recovered and if re-
fixation of pay in the revised pay scales in the bank leads to fixation at a higher
stage the arrears may be paid to an ex-servicemen.
8. COMPUTATION OF WAGES FOR THE PURPOSE OF GRATUITY UNDER
PAYMENT OF GRATUITY ACT, 1972
IBA Circular No. PD/CIR/76/G(iii)/1471 Dt. 28-11-1996
In terms of Section 4(2) of the Payment of Gratuity Act, 1972, the employer
shall pay Gratuity to an employee at the rate of fifteen days’ wages for every
completed year of service or part thereof in excess of six months, based on the
rate of wages last drawn by the employee concerned.
Section 2(s) of the above Act defines wages as under:
“Wages” means all emoluments which are earned by an employee while on
duty or on leave in accordance with the terms and conditions of his employment
and which are paid or are payable to him in cash and includes dearness
allowance, but does not include any bonus, commission, house rent allowance,
overtime wages and any other allowance.
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 The High Court had observed that the Bipartite Settlement provisions to treat
special allowance as “Pay” cannot override the provisions of law viz., Payment
of Gratuity Act, 1972.
In view of the above decision of the Court, Banks may note to exclude special
allowance while computing “wages” for the purpose of calculating gratuity under
the Payment of Gratuity Act. However, special allowance is to be reckoned
while computing wages for calculation of gratuity in terms of Awards/Bipartite
Settlements.

9. REFIXATION OF PAY OF EX-SERVICEMEN RE-EMPLOYED IN BANKS ON

OR AFTER 1ST JULY, 1996 ON ACCOUNT OF GRANT OF SPECIAL PAY
IBA Circular no. PD/CIR/76/589/2228 dt. 21-02-1997

Special Pay granted with effect from 1-7-1996 in terms of Bipartite Settlement
dated 14th December, 1996, which has been treated as basic pay for all purposes
should also be reckoned for refixation of pay of ex-servicemen re-employed in
banks on or after 1-7-1996.

10. REFIXATION OF PAY OF EX-SERVICEMEN RE-EMPLOYED IN BANKS

IBA Circular No. PD/CIR/76/589/1245 Dt. 06-11-1997

The Sixth Bipartite Settlement expired on 31-10-1997. As such pay fixation of

ex-servicemen who are re-employed in banks on or after 01-11-1997 may be
done only provisionally subject to final fitment based on revised pay scales at a
later date.

Similarly, pay fixation of ex-service officer pensioners and Ex-emergency

Commissioned Officers/Short Service Commissioned Officers who are
re-employed in banks on or after 01-11-1997 may also be done on the above
lines.

11. EXEMPTION FROM INCOME-TAX ON AIR TRAVEL/AIR-CONDITIONED

FIRST CLASS BY TRAIN UNDER LEAVE TRAVEL CONCESSION - CBDT
NOTIFICATION DATED 12TH JANUARY, 1998

IBA Circular No. PD/CIR/76/F/746/1839 Dt. 18-02-1998

The Central Board of Direct Taxes (CBDT), New Delhi, vide their Notification
No. 142/85/97-TPL/No. 10502 dated 12th January, 1998 has amended the
clauses (i), (ii) and (iii) of sub-rule 1 of Rule 2B of Income-Tax Rules, 1962 and
inserted a new sub-rule 4 under the said Rule 2B, providing, among other things,

203
 exemption from income-tax on air-travel under Leave Travel Concession upto
an amount not exceeding the air economy fare of the National Carrier by the
shortest route to the place of destination if the journey is performed by air, and
upto an amount not exceeding the air-conditioned first class rail fare by shortest
route to place of destination, if journey is undertaken by any mode of transport
other than by air, between connected by rail.

The amendments to the above provisions of Income-tax Rules have come into
force with effect from 01-10-1997.

12. APPOINTMENT ON COMPASSIONATE GROUNDS - CASE OF SUICIDE

IBA Circular No. PD/CIR/60/531/590/Dt. 01-03-1998
The matter was considered by the Personnel Committee at its meeting held on
24th February, 1998. The committee decided as under:-
“There is no objection to extend the benefit of compassionate appointment to
the dependant of an employee who commits suicide while in service, where
the Board of Directors of the Bank is satisfied that the condition of the family is
indigent and in great distress.”
13. DEFINITION OF FAMILY FOR PURPOSE OF LEAVE FARE CONCESSION/
MEDICAL AID
IBA Circular NO. PD/CIR/76/F/J/1925 Dt. 04-03-1998
The facility of leave fare concession and medical aid may be allowed in case of
a married daughter of the employee only in exceptional circumstances, such as
where she has been divorced, abandoned, or separated from the husband, and
is residing with and is wholly dependent on the employee.
14. THE PAYMENT OF GRATUITY (AMENDMENT) ACT, 1998 (NO. 11 OF 1998)
IBA Circular No. PD/CIR/76/G(iii)/563 Dt. 04-08-1998
The Payment of Gratuity Act, 1972 has been since amended by an Act of
Parliament which received the Presidential assent on 22nd June, 1998. In terms
of this amendment, the ceiling on the amount of gratuity payable under Section
4 of The Payment of Gratuity Act, 1972 has been raised from “Rs. one lakh” to
“Rs. three lakhs and fifty thousand” w.e.f. 24 th September, 1997.
This amendments Act repeals the earlier ordinances dated 24-09-1997 and
25-12-1997.

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15. EFFECT OF REVISION IN PAY SCALES ON COMPUTATION OF
SUBSISTENCE ALLOWANCE IN THE CASE OF WORKMEN EMPLOYEES
IBA Circular No. PD/CIR/76/528/586 Dt. 11-08-1998
The Workmen employees under suspension will be eligible to be paid
subsistence allowance reckoning the revised scales of pay on account of salary
revision even if the date of suspension is prior to the date of salary revision
which will be in line with the decision of Madhya Pradesh and Haryana High
Courts relating to payment of subsistence allowance to workmen employees in
banks. Cases of workmen employees, who are under suspension and in whose
case salary revision has taken place, subsequent to their suspension, may be
reviewed in view of the above decision and paid arrears of subsistence
allowance.
However, there shall be no change in the Committee’s decision dated 11th
September, 1989 as regards subsistence allowance payable to officers under
suspension.
16. PAYMENT OF HRA/CCA TO EMPLOYEES
IBA Circular No. PD/CIR/76/E(xi)/715 Dt. 08-09-1998
In terms of Bipartite Settlements/Officers’ Service Regulations governing the
service conditions of bank employees, House Rent Allowance/City
Compensatory Allowance are payable on the basis of the population figures
published as per latest Census Report only, which at present is 1991 Census
Report. The population of the place/urban agglomeration as available during
‘mid-census’ period is not to be taken for the purpose of HRA/CCA. However,
if the respective Government issues a notification regarding formation of new
Urban Agglomeration, inclusion of additional areas in the existing urban
agglomeration, such notification may be considered for change in the rates of
HRA/CCA. However, nothing short of Government notification in this regard
should be relied upon.
Instances have come to the notice of the Government, that some banks are not
strictly adhering to the said provisions while making payment of HRA/CCA, and
more violation have been noticed at branch level. The Government has
examined the matter and has advised IBA to suitably advise banks to strictly
follow the classification of areas for the purpose of HRA/CCA, as per the extant
provisions.
In view of the above, banks are requested to ensure strict adherence to the
above provisions by eliciting required particulars form their branches and verifying

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 the corrections of payment of HRA/CCA. In cases where it is found that the
branch(es) has/have not followed the existing provisions and eventually have
paid HRA/CCA at higher rate than what is eligible, the banks may take steps to
effect recovery from the officers/employees drawing such higher HRA/CCA.
The concerned drawing officer/branch manager shall be personally responsible
for effecting recovery immediately.
Banks are requested to ensure strict compliance of the aforesaid instructions.
17. PAYMENT FIXATION ON EX-ECOs/SSCOs RE-EMPLOYED IN PUBLIC
SECTOR BANKS ON OR AFTER 01-11-1992/01-07-1993 - EX-SERVICEMEN
IBA Circular No. PD/CIR/76/589/823 Dt. 26-09-1998
In cases of all Ex-ECOs/SSCOs who have joined the bank in workmen cadre or
officers’ cadre, on or after 01-11-1992/01-07-1993 but before 14-02-1995/23-
06-1995, pay fixation may be done as per the Sixth Bipartite Settlement/revised
Pay scales of officers as per Joint note dated 23-06-1995.
The Government has also advised that in future whenever any bipartite
settlement/wage revision of officers become due, the pay fixation of Ex-ECOs/
SSCOs in respect of recruitment/employment made on or after the due date
may be done provisionally subject to refixation after revised pay scale is made
applicable retrospectively.
18. COMPENSATORY FACILITIES FOR EMPLOYEES WORKING IN KASHMIR
VALLEY
IBA Circular No. PD/Cir/76/746/1491 Dt. 04-01-1999
Please refer to Government of India, Ministry of Finance (Banking Division)
letter No. 11/7/90/VIG dated 12th June, 1998 regarding extension of the facilities/
concessions to the employees working in Kashmir upto 30-09-1998.
We now reproduce overleaf for your information and necessary action a copy of
Government of India letter No. 11/7/90/VIG dated 15th December, 1998
extending the facilities/concessions to the employees working in the Kashmir
Valley upto 31-03-1999.
19. REIMBURSEMENT OF HOSPITALISATION EXPENSES - NEW
TECHNOLOGIES
IBA Circular No. PD/CIR/76/J/605 Dt. 16-07-1999
As per the extant scheme, reimbursement of hospitalisation expenses for
treatment of employees and their dependents is restricted to the ceiling

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 prescribed in the schedule of charges in the Bipartite Settlement/Service
Regulations/Service Rules
With the advancement in medical technology, innovative and highly sophisticated
techniques are now available for treatment of various diseases/ailments with a
high success rate. Most hospitals are now applying such new techniques in
treatment of certain diseases, e.g. Lithotripsy for treatment of Kidney Stone,
Laser Surgery for cataract, etc. These treatments are very expensive and are
not included in the schedule of charges under the hospitalisation scheme.
We have been receiving queries from the member banks regarding the extent
to which reimbursement of expenses can be made treatments undertaken
applying such advanced techniques. We have examined the matter. We are to
advise that in such cases reimbursement of hospitalisation expenses be restricted
to what is otherwise available for conventional type of treatment under the existing
scheme under Bipartite Settlement/Service Regulations/Service Rules.
20. BENEFITS OF 7TH BIPARTITE SETTLEMENT
IBA Circular No. PD/CIR/76/90/2018 Dt. 30-03-2000
It is clarified that, as in the case of past settlements signed by the IBA on behalf
of its member banks, the benefits and obligations in terms of the Bipartite
Settlement signed on 27th March, 2000 shall be extended by all member banks,
on whose behalf the Settlement has been signed, to all their employees
irrespective of their union affiliation.

21. DEFINITION OF PAY FOR PAYMENT OF GRATUITY

IBA Circular No. PD/CIR/76/G3/162 Dt. 03-05-2000

Please refer to our circular letter No. PD/CIR/76/G(iii)/1471 dated 28th November,
1996 on the captioned subject (copy reproduced overleaf for ready reference).
Banks were then advised that in view of a decision of the Patna High Court
upheld by the Supreme Court of India they may not reckon special allowance/s
while computing ‘wages’ for the purpose of calculating gratuity under The
Payment of Gratuity Act, 1972.

Allowances hitherto termed as Special Allowance, Graduation Allowance,

Professional Qualification Allowance and Officiating Allowance which are in the
nature of ‘Pay’ attracting dearness allowance and ranking for superannuation
benefits shall henceforth be, in view of clause 6(i) of the Bipartite Settlement
dated 27th March, 2000, termed as Special Pay, Graduation Pay, Professional

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 Qualification Pay and Officiating Pay respectively. Also, in view of clause 13 of
the said Settlement, the Fixed Personal Allowance shall be henceforth termed
as Fixed Personal Pay.

While the Special Pay, Graduation Pay and Professional Qualification Pay have
been revised w.e.f. 1st April, 1998 the Fixed Personal Pay has been revised
w.e.f. 1st November, 1999. As the officiating pay is linked to basic pay, the
same has to be paid on the revised basic pay with effect from 1st November,
1997.

Keeping in view the above and the definition of ‘pay’ as in clause 6(ii) of the
Settlement, we are to advise that banks may hereinafter reckon Special Pay,
Graduation Pay, Professional Qualification Pay, Officiating Pay and increment
component of Fixed Personal Pay for computation of wages for the purpose of
calculating gratuity payable under The Payment of Gratuity Act, 1972 keeping
in view the effective dates of revision of the said components of wages.
In this connection, we wish to clarify that there is no charge in the procedure for
computing gratuity in terms of Awards/Bipartite Settlements.
22. COMPUTATION OF FIXED PERSONAL PAY
IBA Circular No. PD/Cir/76/E12/204 Dt. 05-05-2000
Fixed Personal Pay revised with effect from 01-11-1999 has been indicated in
schedule III of the Bipartite Settlement dated 27th March, 2000.
In this connection we wish to clarify that workmen employees who are in receipt
of Fixed Personal Allowance before 01-11-1999 and continue to be in service
of the Bank on or after 01-11-1999 are also eligible for revised Fixed Personal
Pay from the month of November, 1999 at the rates and the corresponding
dearness allowance indicated in Schedule III together with house rent allowance,
if any. The quantum of house rent allowance will undergo a change depending
on the basis on which house rent allowance component, as per the area of
posting and the rate at which it was computed, was included when Fixed Personal
Allowance was first released.
Members of the subordinate staff and clerical staff who after receipt of Fixed
Personal Allowance were promoted to clerical and officers’ cadre respectively
shall also draw the revised Fixed Personal Pay as mentioned above.
23. MATERNITY LEAVE
IBA Circular No. PD/CIR/76/H5/286 Dt. 16-05-2000

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 In terms of Clause 26(a) of the Bipartite Settlement dated 27th March, 2000
maternity leave shall be granted to a female employee for a period not exceeding
6 months on any one occasion and 12 months during the entire period of service.
As we are receiving queries from member banks regarding its date of effect,
we may clarify that the provision is effective from the date of settlement i.e.,
27th March, 2000. In other words, only those employees would be eligible who
apply for such leave on or after 27th March, 2000.
In this connection, however, we further advise that banks in their discretion,
subject to production of sufficient medical certificate may grant maternity leave,
in terms of the revised provisions to female employees in continuation of the
maternity leave originally sanctioned to them prior to the date of settlement i.e.,
27th March, 2000 in terms of the then prevailing provisions provided the leave
so sanctioned has not expired before 27th March, 2000.
The benefit of the revised provisions may also be extended in those cases
where the maternity leave sanctioned in terms of the then prevailing provisions
has not expired before 27th March, 2000 and leave of any other kind admissible
to the employee is granted supported by sufficient medical certificate in
continuation of maternity leave already sanctioned. In such cases the extended
leave may be treated as maternity leave.
Please note that in both the above situations total leave so sanctioned should
not exceed six months and would be subject to Clause 13.6 of the Bipartite
Settlement dated 18th October, 1966.
We, however, wish to further clarify that the benefit of the revised provisions of
Bipartite Settlement dated 27th March, 2000 are not to be extended to employees
whose maternity leave has expired before 27th March, 2000.
24. ENCASHMENT OF PRIVILEGE LEAVE TO PART-TIME EMPLOYEES AT
THE TIME OF SUPERANNUATION
IBA Circular No. PD/CIR/76/H7/V/356 Dt. 26-05-2000
In terms of Clause 18(2) of Bipartite Settlement dated 10th April, 1989, permanent
part-time employees drawing scale wages are eligible for leave fare concession
and leave encashment on pro-rata basis. However, they are not permitted
encashment of Privilege Leave at the time of superannuation as it has not been
specifically provided for under the Bipartite Settlement.
The Working Group of the IBA at its meeting held on 18th April, 2000 considered
that when the permanent part-time employees drawing scale wages are allowed

209
 encashment of Privilege Leave at the time of availing Leave Fare Concession
on pro-rata basis, the same may be allowed at the time of superannuation.
It has, therefore, been decided that the permanent part-time employees drawing
scale wages may be allowed encashment of accumulated Privilege Leave up to
a maximum of 240 days on pro-rata basis of the scale wages drawn by them, at
the time of superannuation.
25. SCHEME FOR GRANT OF SILVER JUBILEE AWARD/OTHER MILESTONE
AWARDS TO THE EMPLOYEES OF PUBLIC SECTOR BANKS
IBA Circular No. PD/CIR/76/537/366 Dt. 26-05-2000
Please refer to our circular letter No. PD/CIR/76/537/456 dated 16th June, 1995.
In terms of present scheme for grant of Silver Jubilee Award/Other Milestone
Awards to employees of public sector banks, the cost of award shall not exceed
Rs. 1,500/- for uniform application by banks.
It was represented that in view of increase in prices of the gift items and
depreciation of rupee since the monetary ceiling was revised in 1995, there
was a need for enhancing the amount of the Award.
The Working Group of IBA, at its meeting held on 18th April, 2000 decided that
the quantum of the Award may be decided by the banks within an overall ceiling
of Rs. 2,000/-.
26. COMPUTATION OF WAGES FOR THE PURPOSE OF GRATUITY UNDER
THE PAYMENT OF GRATUITY ACT, 1972.
IBA Circular No. PD/CIR/76/G3/773 Dt. 02-08-2000
Designated officers of member banks which are parties to the bipartite settlement.
Please refer to our circular letter No. PD/CIR/76/G3/162 dated 3rd May, 2000.
In terms of Clause 35(a) of the Bipartite Settlement dated 27th March, 2000
gratuity computed on the revised scales of pay and allowances is payable with
effect from 01-11-1999.
We have been receiving queries from member banks regarding the effective
dates from which the various components of wages as revised by the Seventh
Bipartite Settlement is to be reckoned for computation of gratuity as per The
Payment of Gratuity Act/Awards and Bipartite Settlements.
We have to advise that as per the procedure in vogue, Gratuity is computed
both as per The Payment of Gratuity act, 1972 and as per the Awards/Bipartite

210
 Settlement and the workmen employee concerned is paid whichever of the two
is more beneficial. Accordingly, while computing gratuity as per the The Payment
of Gratuity Act in respect of employee who have retired after 01-11-1997, revised
basic pay, officiating pay and Dearness Allowance shall be reckoned from 01-
11-1997, revised special pay, graduation pay and professional qualification
pay shall be reckoned from 01-04-1998, and revised increment component of
Fixed Personal Pay shall be reckoned from 01-11-1999. However, while
computing gratuity as per Awards/Settlement in respect of employees who
have retired on or after 01-11-1997 but before 01-11-1999 basic pay, special
pay, officiating allowance, graduation allowance, professional qualification
allowance and increment components of fixed personal allowance drawn as
per Bipartite Settlement dated 14-02-1995 and the Supplementary Settlement
dated 14-12-1996 shall be reckoned for computation of gratuity. Higher of the
amounts computed as above is then payable to the retiree as gratuity.
Further, in respect of employees who retire after 01-11-1999 gratuity admissible
under the act and Bipartite Settlement shall be computed on the basis of the
pay and allowance drawn as per Bipartite Settlement dated 27th March, 2000.

27. CLARIFICATIONS ON 8TH BIPARTITE SETTLEMENT

IBA circular No.PD/76/90/2005-06/534 dated 07-06-2005 (Annexure G)
1. Item No. (iii) of the Chart relating to House Rent Allowance under Clause
9 of the Settlement may be read as under:
“Places with population of 2 lakhs and over (other than places in (i) and
(ii) above) and State Capitals and Capitals of Union Territories”.
2. In the note under Clause 6 of the Bipartite Settlement “Schedule III” may
be read as “Schedule IV”.
3. In Clause 40 of the Settlement signed with the representatives of Bank
Karmachari Sena Mahasangha, the words “and Bank Karmachari Sena
Mahasangh” may be added after “the National Organisation of Bank
Workers”.
4. On and from 1st February, 2005 Dearness Allowance will be payable at
0.18% of pay to all employees for every rise or fall of 4 points over CPI
2288 points in the quarterly average of the All India Average Working
Class Consumer Price Index (Base 1960 = 100).
5. A new category of places with population of more than 45 lacs has been
incorporated for the purpose of payment of HRA. In the following places

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 which have population of more than 45 lakhs as per census 2001, HRA is
payable at 8.5% of pay:
Ahmedabad, Bangalore, Chennai, Delhi, Greater Mumbai, Hyderabad and
Kolkata.
6. Permanent part-time employees on scale wages are also eligible to draw
stagnation increments pro rata to the scale in which they are, at frequencies
of two years from the date of reaching the maximum of the scale.
7. Workmen employees are entitled to avail of leave fare concession in a two
year block or four year block, as the case may be, according to the option
exercised by them earlier. In view of certain modifications/improvements
made to the provisions relating to leave fare concession, employees may
be given another opportunity to exercise their option for two year/four year
block, on expiry of the current operative block of four years.
8. The consequential difference in cash equivalent on encashment of privilege
leave availed of during the period 1.11.2002 to 31.5.2005 on account of
wage revision may be paid to the employees.
9. Employees who have officiated in higher cadre between 1.11.2002 and
31.5.2005 may be paid the difference in officiating pay on account of wage
revision. The provisions of Clause 29 of the Settlement will, however, take
effect from the date of Settlement vide item (i) (7) of Clause 38 of the Settlement.
10. A provision for release of increment for graduation or graduation pay to
non-subordinate employees who acquire graduation/post-graduation
qualifications from Universities / Open Universities has been incorporated
in Clause 34 of the Settlement. Although this provision takes effect from
the date of Settlement, it has been agreed that cases of all non-subordinate
employees who have acquired graduation/post-graduation qualification
from Universities/Open Universities recognised by the University Grants
Commission prior to the date of settlement may also be considered for
release of increment for graduation or graduation pay, subject to the
conditions as at (i) and (ii) of Clause 34 of the Bipartite Settlement.
11. Bonus entitlement for the accounting years ended March 2003, March
2004 and March 2005 may be re-calculated and payment of arrears be
made to eligible employees accordingly. Similarly, if on account of the
revision, some employees fall out of the purview of the payment of Bonus
Act, recovery of bonus already paid shall be made from such employees.

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28. REIMBURSEMENT OF HOSPITALISATION EXPENSES TO OFFICERS AND
EMPLOYEES
IBA CIRCULAR NO. PD/76/90/J/2005-06/667 DT. 28-09-2005
In the recently signed Bipartite Settlement, improvements have been made in
the Scheme for reimbursement of hospitalization expenses incurred by
employees and eligible members of their families. In the course of discussions
preceding the Settlement, the representatives of Officers’ Associations and
Workmen Unions had raised the issue relating to the procedure to be followed
in a case where an employee is covered by a Mediclaim Policy and the extent
of reimbursement to be made by the Bank under hospitalisation scheme in
such cases. The Unions and Associations were then informed that a separate
advisory in this regard would be issued by IBA.
We are now to advise that the Personnel Committee of the Association, in the
past had deliberated on what should be the extent of reimbursement of
hospitalization expenses in a case where an employee has received
reimbursement from an insurance company. The Committee had then decided
that if the employee has taken any insurance policy for reimbursement of
hospitalisation expenses incurred, reimbursement received from the insurance
company together with the reimbursement from the Bank should not exceed
100% of the hospitalisation expenses incurred by him/her. Banks may be guided
by the above decision of the Personnel Committee while setting claims for
reimbursement of hospitalisation expenses under the Scheme of Hospitaliszation
subject to production of the entire bill relating to hospitalisation alongwith a
certificate from the Insurance Company concerned for the amount paid by them
to the employee under the policy.
29. PAYMENT OF DEPUTATION ALLOWANCE TO WORKMEN STAFF
IBA CIRCULAR NO. CIR/PAD/76/E15/2005-06/813 DT. 09-01-2006
We refer to our circulars No. PD/CIR/76/E15/695 dated 19th July, 2000 and No.
PD/CIR/76/E15/703 dated 22nd October, 2003 regarding payment of Deputation
Allowance to workmen staff.
Consequent upon the 8th Bipartite Settlement dated 2nd June, 2005, the
Personnel Committee at its recent meeting reviewed the rates of deputation
allowance payable to workmen staff. The Personnel Committee decided that
the rates of deputation allowance payable to the workmen employees with effect
from 01-11-2005 will be as under:
(a) 4% of Pay - Maximum 375/- p.m. for deputation to Regional Rural Banks/
District Industries Centres/Debt Recovery Tribunals at the same station.
(b) 7.75% of Basic Pay - Maximum 750/- p.m. for deputation to Regional
Rural Banks/District Industries Centres/Debt Recovery Tribunals at an
outstation center.
Member Banks may be guided accordingly.

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No.CIR/HR&IR/665/J/2010-11/3005 dated April 25, 2011

Reimbursement of Hospitalisation Expenses to Award Staff/Officers - Clearance

of Bills by Bank’s doctor

IBA has been receiving queries from member banks regarding reimbursement of
hospitalisation expenses while processing the Bills submitted by employees. The
following two issues were discussed at the Personnel Committee’s Meeting held on
25.3.2011 and decisions were taken:

a) Refering the medical bills submitted by the employees to the bank’s doctor
for scrutiny

The Committee after deliberations vis-à-vis the provisions obtaining in this regard,
was of the view that a reference of the medical claims of the employees to the
bank’s doctor, is required only to certify the requirement of a domiciliary treatment
for the diseases mentioned in the Bipartite Settlement provisions and about the
duration of the treatment. Banks may also refer the bills submitted for
reimbursement to banks’ Panel doctor for scrutiny only in case the genuineness
of the bills is suspected.

b) Clarification sought on the cost of implanted items used during surgery,

i.e., whether such reimbursement can be permitted only when the bills
are claimed on package basis and implanted items are not included in the
package or in cases of bills submitted whether on the basis of package or
otherwise.

The Committee after deliberations was of the view that the cost of implanted
items used during the surgery shall be reimbursed subject to the rates prescribed
for lowest paying bed at AIIMS, New Delhi, irrespective of whether the bill is on
a package basis or otherwise.

The Managing Committee of IBA at its meeting held on 29.3.2011 has also
endorsed the above decisions taken by the Personnel Committee. The above
proposal comes into effect from 1.4.2011.

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No.CIR/HR&IR/665/E-10/2010-11/3004 dated April 25, 2011

Reimbursement of TA/DA to Serving Employees/Ex-employees

(including retired, dismissed) of the Bank

IBA has been receiving queries from Member Banks on payment of TA/DA to serving
employees/ex-employees of banks, including retired or dismissed employees, in case
he has to attend proceedings before a Court of Law/Tribunal/Inquiring Authority so
as to depose as a prosecution witness or as a management witness.

The Personnel Committee of IBA at its meeting held on 25.3.2011 had a detailed
discussion in the matter and recommended payment of TA/DA for the above purpose
as per enclosure, covering various circumstances. The Managing Committee of IBA
at its meeting held on 29.3.2011 had approved the recommendations put forth by
the Personnel Committee.

You may adopt the above guidelines with effect from 1.4.2011 and these guidelines
supersede all the earlier guidelines in this regard issued by IBA.

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 TA/DA payable to serving employees/retired employees of banks
attending the following cases
S.No. Circumstances Award Staff Officer
In service Retired In service Retired
1 Attending departmental enquiry as
a. Defense Representative Yes No * Yes No
b. Charge sheeted employee including Yes Yes Yes Yes
suspended employee
c. Defence witness No No No No
2 Attending CBI / Court cases
a Cases filed by As accused No No No No
Police/CBI **
against employee As witness on Yes Yes Yes Yes
for official acts behalf of bank
As witness on No No No No
behalf of
employee
b Cases filed As a petitioner No No No No
by employee As witness on Yes Yes Yes Yes
against the behalf of bank
bank As witness on No No No No
behalf of
employee
c Cases filed by As accused Yes Yes Yes Yes
outsiders / As witness on Yes Yes Yes Yes
customers, etc. behalf of the
pertaining to bank
official acts As witness on No No No No
behalf of others
* however, if the enquiry is held at place other than the place where the incident occurred at
the behest of the Management, TA/DA will be paid to the Defense Representative as per
rules.
** however, if the employee is acquitted honourably, the TA/DA will be reimbursed as per
rules.
P.S. For attending Personal Hearing, TA/DA may be paid, if the Appellate Authority grants a
personal hearing, as part of the process of disciplinary proceedings.

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 CHAPTER - XXVIII
BANK EMPLOYEES’ PENSION REGULATIONS, 1995
NOTIFICATION
29th September 1995
In exercise of the powers conferred by Clause (f) of sub section (2) of section 19 of
the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of
1970) the Board of Directors of .............. after consultation with the Reserve Bank of
India and with the previous sanction of the Central Government hereby makes the
following regulations, namely:-
PRELIMINARY
1. Short title and commencement:
(1) These regulations may be called .................. (Employees’) Pension
Regulations, 1995.
(2) Save as otherwise expressly provided in these regulations, these
regulations shall be deemed to have come into force on the date of their
publication in the Official Gazette.
2. Definitions: In these regulations, unless the context otherwise requires;
(a) “Act” means the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970 (5 of 1970);
(b) “Actuary” Shall have the meaning assigned to it in clause (1) of section 2
of the Insurance Act, 1938 (4 of 1938);
(c) “Appendix” means, an Appendix annexed to these regulations;
(d) “Average emoluments” means the average of the pay drawn by an
employee during the last ten months of his service in the Bank;
(e) “Bank” means mentioned under Column 2 of THE FIRST SCHEDULE of
the Act.
(f) “Board” means the Board of Directors of the Bank;
(g) “Child” means a child of the employee, who, if a son, is under twenty-five
years of age and if a daughter, is unmarried and is under twenty-five years
of age and the expression “children” shall be construed accordingly;
(h) “Competent Authority” means the authority appointed by the Board for
the purposes of these regulations;

217
 (i) “Consolidated wages” means lump sum amount payable to part-time
employee belonging to the subordinate staff who is not drawing scale
wages;
(j) “Contribution” means any sum credited by the Bank on behalf of
employee to the Fund, but shall not include any sum credited as interest;
(k) “Date of retirement” means the last date of the month in which an
employee attains the age of superannuation or the date on which he is
retired by the Bank or the date on which the employee voluntarily retires;
or the date on which the employee is deemed to have retired;
Note: After this chapter on “Bank Employees’ Pension Regulations, 1995” several
clarifications given by IBA have been annexed. All these to be taken as part of
the scheme.
(l) “Deemed to have retired” means cessation from service of the Bank on
appointment by Central Government as a whole-time Director or Managing
Director or Chairman in the Bank or in any other Bank specified in column
2 of the FIRST SCHEDULE of the Act or Banking Companies (Acquisition
and Transfer of Undertakings) Act, 1970 (5 of 1970) or in any public financial
institution or State Bank of India established under State bank of India
Act, 1955 (23 of 1955)
(m) “Discipline and appeal Regulations” means the Officer Employees’
(Discipline and Appeal) Regulations, 1976 made under section 19 of the
Act;
(n) “Employee” means any person employed in the service of the Bank on
full time work on permanent basis or on part-time work on permanent
basis on scale wages and who opts and is governed by these regulations,
but those not include a person employed either on contract basis or daily
wage basis or on consolidated wages;
(o) “Family” in relation to an employee means:-
(a) wife in the case of a male employee or husband in the case of a
female employee;
(b) a judicially separated wife or husband, such separation not being
granted on the ground of adultery and the person surviving was not
held guilty of committing adultery;
(c) son who not attained the age of twenty-five years and unmarried
daughter who has not attained the age of twenty-five years, including
such son or daughter adopted legally;

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(p) “Financial year” means a year commencing on the 1st day of April;
(q) “Fund” means the (Employees’) Pension Fund constituted under
Regulation 5;
(r) “Notified date” means the date on which these regulations are published
in the Official Gazette;
(s) “Pay” includes, -
(a) in relation to an employee who has either retired or died on or after
the 1st day of January, 1986 but before the 1st day of November,
1993, -
(i) the basic pay including stagnation increments, if any, and
(ii) all allowances counted for the purposes of making contribution
to the Provident Fund and for the payment of dearness
allowance;
(Refer IBA Circular No. PD/CIR/76/G(ii)/1109 dt. 18-11-1998)
(b) in relation to an employee who retires or dies while in service on or
after the 1st day of November, 1993, -
(i) the basic pay including stagnation increments, if any; and
(ii) all allowances counted for the purpose of making contribution to
the Provident Fund and for the payment of dearness allowance;
and
(iii) increment component of Fixed Personal Allowance; and
(iv) dearness allowance calculated upto Index number 1148 points
in the All India Average Consumer Price Index for industrial
workers in the series 1960 = 100;
(Refer IBA Circular No. PD/CIR/76/G(II)/630 dt. 20-7-1996, PD/CIR/76/G2/163
dt. 3-5-2000 & PD/76/D/G2/2005-06/557 dt. 28.06.2005)
(t) “Pension” includes the basic pension and additional pension referred to
in Chapter VI of these regulations;
(u) “Pensioner” means an employee eligible for pension under these
regulations;
(v) “Public Financial Institution” means of financial institution regarded as
a public financial institution for the purpose of section 4A of the Companies
Act, 1956, (1 of 1956);
(w) “Qualifying service” means the service rendered while on duty or
otherwise which shall be taken into account for the purpose of pension
under these regulations;
219
 (x) “Retired” includes deemed to have retired under clause (I);
(y) “Retirement” means cessation from Bank’s service; -
(a) on attaining the age of superannuation specified in Service
Regulations or Settlements;
(b) on voluntary retirement in accordance with provisions contained in
regulation 29 of these regulations;
(c) on premature retirement by the Bank before attaining the age of
superannuation specified in Service Regulations or settlement;
(z) “Scale wages” in relation to part-time employees means the basic pay,
City Compensatory Allowance, Special allowances, House Rent Allowance
and other allowances, if any, and dearness allowance payable from time
to time under the settlement;
(za) “Service regulations” means (Officer’s) Service Regulations, 1979 made
under section 19 of the Act;
(zb) “Settlement” means memorandum of settlement agreed between the
management of the Bank represented by the association authorised by
them and workmen of such Bank represented by trade unions authorised
by them;
(zc) “Trust” means the trust of the (Employees’) Pension Fund constituted
under sub-regulation (1) of Regulation 5;
(zd) “Trustee” means the trustees of the ..................... (Employees’) Pension
Fund constituted under regulation 5;
(ze) “Trustee of the Provident Fund” means the trustees of the Provident
Fund of the Bank;
(zf) all other words and expressions used in these regulations but not defined,
and defined in the Act or the Service Regulations or Settlements shall
have the same meanings respectively assigned to them in the Act, the
Service Regulations or Settlement, as the case may be.
APPLICATION AND ELIGIBILITY

3. APPLICATION: These regulations shall apply to employees who, --

(1) (a) were in the service of the Bank on or after the 1st day of January,
1986 but had retired before the 1st day of November, 1993; and

220
 (b) exercise an option in writing within one hundred and twenty days
from the notified date to become number of the Fund; and
(c) refund within sixty days after the expiry of the said period of one
hundred and twenty days specified in clause (b) the entire amount of
the Bank’s contribution to the Provident Fund including interest
accrued thereon together with a further simple interest at the rate of
six percent per annum on the said amount from the date of settlement
of the Provident Fund account till the date of refund of the aforesaid
amount to the Bank; or
(2) (a) have retired on or after the 1st day of November, 1993 but before the
notified date and
(b) exercise an option in writing within one hundred and twenty days
from the notified date to become member of the Fund; and
(c) refund within sixty days after the expiry of the said period of one
hundred and twenty days specified in clause (b) the entire amount of
the Bank’s contribution to the Provident Fund and interest accrued
thereon together with a further simple interest at rate of six percent
per annum on the said amount from the date of settlement of the
Provident Fund account till the date of refund of the aforesaid amount
to the Bank; or
(3) (a) are in the service of the Bank before the notified date and continue
to be in the service of the Bank on or after the notified date; and
(b) exercise an option in writing within one hundred and twenty days
from the notified date to become member of the Fund; and
(c) authorise the trust of the Provident Fund of the Bank to transfer
the entire contribution of the Bank along with the interest accrued
thereon to the credit of the Fund constituted for the purpose under
Regulation 5; or
(4) join the service of the Bank on or after the notified date; or
(5) were in the service of the Bank during any time on or after the 1st day of
November, 1993 and had died after retirement but before the notified date,
their family shall be entitled for the amount of pension payable to them
from the date on which they would have been entitled to pension under
these regulations, had they been alive till the date on which they died, if
the family of the deceased:-

221
 (a) exercise an option in writing within one hundred and twenty days
from the notified date to become member of the Fund; and
(b) refund within sixty days after the expiry of the said period of one
hundred and twenty days specified in clause (a) above the entire
amount of the Bank’s contribution to the Provident Fund and interest
accrued thereon together with a further simple interest at the rate of
six percent per annum from the date of settlement of the Provident
Fund account till the date of refund of the aforesaid amount to the
Bank; or
(6) joined the service of the Bank on or after the 1st day of November, 1993
but who have died while in the service of the Bank before the notified
date, their family shall be entitled to the family pension under these
regulations; Provided that the family of such a deceased employee refunds
within one hundred and eighty days from the notified date the entire amount
of the Bank’s contribution to the Provident Fund, if any, and interest accrued
thereon together with further simple interest at the rate of six per cent per
annum from the date of settlement of the Provident Fund account till the
date of refund of the aforesaid amount to the Bank;
Provided further that the family of such a deceased employee shall apply
in writing for grant of family pension; or
(7) were in the service of the Bank during any time on or after the 1st day of
January, 1986 and had died while in service on or before the 31st day of
October, 1993 or had retired on or before the 31st of October, 1993 but
died before the notified date in which case their family shall be entitled to
the pension or the family pension as the case may be under these
regulations, if the family of the deceased:-
(a) exercise an option in writing within one hundred and twenty days
from the notified date to become member of the Fund; and
(b) refund within sixty days of the expiry of the said period of one hundred
and twenty days specified in clause (a) above the entire amount of
the Bank’s contribution to the Provident fund and interest accrued
thereon together with a further simple interest at the rate of six percent
per annum from the date of settlement of the Provident Fund account
till the date of refund of the aforesaid amount to the Bank; or
(8) joined the service of the Bank on or before the 31st day of October, 1993
and who died while in service on or after the 1st day of November, 1993,

222
 but before the notified date in which case their families shall be entitled to
family pension under these regulations if the family of the deceased
employee,-

(a) exercise an option in writing within one hundred and twenty days
from the notified date to become a member of the Fund; and

(b) refund within sixty days of the expiry of the said period of one hundred
and twenty days specified in clause (a) above the entire amount of
the Bank’s contribution to the Provident Fund, including interest
accrued thereon together with a further simple interest at the rate of
six percent per annum from the date of settlement of the Provident
Fund account of the employee till the date of refund of the aforesaid
amount to the Bank;

(9) Notwithstanding anything contained in sub-regulations (1), (2), (3), (5) and
(8) an option exercised before the notified date by an employee or the
family of a deceased employee in pursuance of the settlement shall be
deemed to be an option for the purpose of this chapter if such an employee
or the family of deceased employee refund within Sixty days from the
notified date, the amount of the bank’s contribution to the Provident Fund
including interest accrued thereon together with a further simple interest
in accordance with the provisions of this chapter and in case employer’s
contribution of Provident Fund has not been received from Provident Fund
Trust, has authorised or authorises within Sixty days from the notified
date the Trustees of the Provident Fund of the Bank to transfer the entire
contributions of the Bank to the Provident Fund including interest accrued
thereon in accordance with the provisions of this Chapter to the credit of
the Fund constituted for this purpose under Regulation 5.

(Waiver of Interest to be paid by retired employees on P.F. to be refunded

Refer IBA Circular No. PD/CIR/76/G(ii)/391 dtd: 11-06-1996)

4. Option to Subscribe to the Provident Fund - (1) Notwithstanding anything

contained in sub-regulation (4) of regulation 3, an employee who joins the service
of the Bank on or after the notified date at the age of thirty-five years or more,
may, within a period of ninety days from the date of his appointment, elect, to
forego his right to pension, whereupon these regulations shall not apply to him.

(2) The option referred to in sub-regulation (1) and regulation 3, once

exercised, shall be final.

223
THE FUND

5. Constitution of the Fund:-

(1) The Bank shall constitute a Fund to be called the (Employees’) Pension
Fund under an irrevocable trust within one hundred twenty days from the
notified date.
(2) The fund shall have for its sole purpose the provision of the payment of
pension or family in accordance with these regulations to the employee or
his family.
(3) The Bank shall be a contributor to the Fund and shall ensure that sufficient
sums are placed in it to enable the trustees to make due payments to
beneficiaries under these regulations.
6. Liability of the Provident Fund Trust:-
The Provident Fund trust shall, immediately after the constitution of the Fund,
transfer to the ............................ (Employees’) Pension Fund the accumulated
balance of the contribution of the Bank to the Provident Fund and interest accrued
thereon upto the date of such transfer in respect of every employee.
7. Composition of the Fund:-
The Fund shall consist of the following, namely:-
(a) the contribution by the Bank at the rate of ten per cent per month of the
pay of the employee;
(b) the accumulated contributions of the Bank to the Provident Fund and
interest accrued thereon upto the date of such transfer in respect of the
employees;
(c) the amount consisting of contributions of the Bank along with interest
refunded by the employees who had retired before the notified date but
who opt for pension in accordance with the provisions contained in these
regulations;
(d) the investment in annuities or securities purchased out of the moneys of
the Fund and interest thereon;
(e) amount of any capital gains arising from the capital assets of the Fund;
(f) the additional annual contribution made by the Bank in accordance with
the provisions contained in regulations 11 of these regulations.
(g) any income from investment of the amounts credited to the Fund;
(h) the amount consisting of contribution of the Bank along with interest
refunded by the family of the deceased employee.
224
8. Board of Trustees:-
(1) The Board of trustees shall consist of such number of persons not less
than three and not more than nine, as may be determined by the Board, to
be appointed by the Bank.
(2) The power to appoint the trustees shall be vested with the Bank and all
such appointments shall be made in writing.
(3) The Bank shall nominate one of the trustees to be the Chairman of the
Board of trustees. The Bank shall also nominate a trustee to be an alternate
Chairman who shall act as Chairman in the absence of the Chairman.
9. Trustees to carry out the directions of the Bank:-
The trustees shall comply with all such directions as many be given by the Bank
for the proper functioning of the Fund.
10. Books of accounts of the Fund:-
(1) The accounts of the Fund, shall contain the particulars of all financial
transactions relating to the Fund in such form as may be specified by the
Bank.
(2) Within one hundred and eighty days from the closing of each financial
year, the trust shall prepare a financial statement of the trust indicating
therein the general account of assets and liabilities of the trust and forward
a copy of the same to the Bank.
(3) The account of the Fund shall be audited in accordance with the provisions
of section 10 of the Act.
11. Actuarial investigation of the Fund:-
The Bank shall cause an investigation to be made by an Actuary into the financial
condition of the Fund every financial year, on the 31st day of March, and make
such additional annual contributions to the Fund as may be required to secure
payment of the benefits under these regulations:
Provided that the Bank shall cause an investigation to be made by an Actuary
into the Financial condition of the Fund, as on the 31st day of March immediately
following the financial year in which the Fund is constituted.
12. Investment of the Fund:-
All moneys contributed to the Fund or received or accruing after that date
by way of interest or otherwise to the Fund, may be deposited in a Post
Office Savings Bank account in India or in a current account with any scheduled
bank or utilised in accordance with the provisions of the Indian Trust Act, 1882
(2 of 1882)

225
13. Payment out of the Fund:-
The payment of benefits by the trust shall be administered for grant of pensionary
benefits to the employees of the Bank or the family pension to the families of
the deceased employees of the Bank.

QUALIFYING SERVICE

14. Qualifying Service:-

Subject to the other conditions contained in these regulations, an employee
who has rendered a minimum of ten years of service in the Bank on the date of
his retirement or the date on which he is deemed to have retired shall qualify for
pension.
(Refer IBA Circular No. PD/CIR/76/G(ii)/1638 dt. 19-1-1998)

15. Commencement of qualifying service:-

Subject to the provisions contained in these regulations, qualifying service of
an employee shall commence from the date he takes charge of the post to
which he is first appointed on a permanent basis.

16. Counting of service on probation:-

Service on probation against a post in the bank if followed by confirmation in
the same or any other post shall qualify.

17. Counting of periods spent on leave:-

All leave during service in the Bank for which leave salary is payable shall count
as qualifying service;
Provided that extraordinary leave on loss of pay shall not count as qualifying
service except when the sanctioning authority has directed that such leave not
exceeding twelve months during the entire service, may count as service for all
purpose including pension.

18. Broken period of service of less than one year:-

If the period of service of an employee includes broken period of service less
than one year, then if such broken period is more than six months, it shall be
treated as one year and if such broken period is six months or less it shall be
ignored.
(Refer IBA Circular No. PD/CIR/76/G2/797 dt. 14-8-1999)

226
19. Counting of period spent on training:-
Period spent by an employee on training in the Bank immediately before his
appointment shall count as qualifying service.
20. Counting of past service in the erstwhile Bank:-
In the case of an employee who is permanently transferred to a service in the
bank from any other Bank on merger, amalgamation of any other Bank with
the bank to which these regulations apply, the continuous service rendered by
such an employee in any other Bank on permanent basis, if any, followed without
interruption, by permanent appointment or the continuous service rendered under
that Bank in a permanent capacity, as the case may be, shall qualify.
Provided that nothing contained in this regulation shall apply to any such
employee who is appointed on contract basis or on daily wage basis or on
consolidated wages.
21. Period of suspension:-
Period of suspension of an employee pending enquiry shall count for qualifying
service where, on conclusion of such enquiry, he has been fully exonerated or
the suspension is held to be wholly unjustified and in other cases, the period of
suspension shall not count as qualifying service unless the Competent Authority
passing the orders under the Service Regulations or Discipline and Appeal
Regulations or Settlements governing such cases expressly declares at the
time that it shall count to such extent as such authority may declare.
22. Forfeiture of service:-
(1) Resignation or dismissal or removal or termination of an employee from
the service of the Bank shall entail forfeiture of his entire past service and
consequently shall not qualify for pensionary benefits;
(2) An interruption in the service of a Bank employee entails forfeiture of his
past service, except in the following cases, namely :-
(a) authorised leave of absence;
(b) suspension, where it is immediately followed by reinstatement,
whether in the same or a different post, or where the bank employee
dies or is permitted to retire or is retired on attaining the age of
compulsory retirement while under suspension;
(c) transfer to non-qualifying service in an establishment under the control
of the Government or Bank if such transfer has been ordered by a
competent authority in the public interest;
(d) joining time while on transfer from one post to another.
227
 (3) Notwithstanding anything contained in sub-regulation (2), the appointing
authority may, by order, commute retrospectively the periods of absence
without leave as extraordinary leave.
(4) (a) In the absence of a specific indication to the contrary in the service
record, an interruption between two spells of service rendered by a
bank employee shall be treated as automatically condoned and the
pre-interruption service treated as qualifying service;
(b) Nothing in clause (a) shall apply to interruption caused by resignation,
dismissal or removal from service or for participation in a strike;
(Refer IBA Circular No. PD/CIR/76/G(ii)/943 dt. 07-09-1996 and Circular
No. PD/CIR/76/G(ii)/1545 dt. 02-01-1998)
23. Period of deputation to foreign service:-
An employee deputed on foreign service to the United Nations or any other
foreign body or organisation may at his option,
(a) pay pension contribution in respect of his foreign service and count such
service as qualifying service under these regulations;
or
(b) avail of the retirement benefits admissible under the rules of the foreign
employer and not count such service as qualifying service under these
regulations:
Provided that where an employee opts for clause (b) retirement benefits shall
be payable to him in India in rupees from such date and in such manner as the
Bank may, by order specify.
24. Military Service:-
An employee who has rendered military service before appointment in the Bank
shall continue to draw the military pension, if any, and military service rendered
by the employee shall not count as qualifying service for pension.
25. Period of deputation to an organisation in India:-
Period of deputation of an employee to another organisation in India will count
as qualifying service :
Provided the organisation to which he is deputed or the employee pays the
pensionary contributions at the rates specified in sub regulation (a) of regulation
7 of these regulations or at the rates specified by the Bank at the time of
deputation, whichever is higher to the Bank.
228
26. Addition to qualifying service in special circumstances:-
An employee shall be eligible to add to his service qualifying for superannuation
pension (but not for any other class of pension) the actual period not exceeding
one fourth of the length of his service or the actual period by which his age at
the time of recruitment exceeded the upper age limit specified by the Bank for
direct recruitment or a period of five years whichever, is less, if the service or
post to which the employee is appointed is one -

(a) for which post graduate research, or specialist qualification or experience

in scientific, technological, or professional fields is essential and

(d) to which candidates of age exceeding the upper age limit specified for
direct recruitment are normally recruited;

(c) for which the candidate was given age relaxation over and above the
maximum age limit fixed by the Bank on account of his possessing higher
qualifications or experience:

Provided that this concession shall not be admissible to an employee unless

his actual qualifying service at the time he quits the service in the Bank is not
less than ten years:

Provided further that this concession shall be admissible if the recruitment rules
in respect of the said service or post contain specific provision that the service
or post is one which carries benefit of this regulation:

Provided also that the recruitment rules in respect of any service or post which
carries the benefit of this regulation shall be made with the approval of the
Central Government.

27. Counting of service rendered on permanent part-time basis:-

(1) In case of an employee who was employed on scale wages and on a
permanent part-time basis in the service of Bank and was contributing to
the provident Fund, such service rendered by him on a permanent
part-time basis from the date he became a member of the Provident Fund
shall be counted as qualifying service.

(2) The length of qualifying service of the employee referred to in sub regulation
(1) for the purpose of calculating the amount of pension shall be determined
in accordance with Appendix (iv)
229
CLASSES OF PENSION

28. Superannuation pension:-

Superannuation pension shall be granted to an employee who has retired on
his attaining the age of superannuation specified in the Service Regulations or
Settlements.
29. Pension on Voluntary Retirement:-
(1) On or after the 1st day of November, 1993 at anytime after an employee
has competed twenty years of qualifying service he may, by giving notice
of not less than three months in writing to the appointing authority retire
from service;
Provided that this sub-regulation shall not apply to an employee who is on
deputation or on study leave abroad unless after having been transferred or
having returned to India he has resumed charge of the post in India and has
served for a period of not less than one year;
Provided further that this sub-regulation shall not apply to an employee who
seeks retirement from service for being absorbed permanently in an autonomous
body or a public sector undertaking or company or institution or body, whether
incorporated or not to which he is on deputation at the time of seeking voluntary
retirement.
Provided that this sub-regulation shall not apply to an employee who is deemed
to have retired in accordance with clause (1) of regulation 2
(2) The notice of voluntary retirement given under sub-regulation (1) shall
require acceptance by the appointing authority :
Provided that where the appointing authority does not refuse to grant the
permission for retirement before the expiry of the period specified in the
said notice, the retirement shall become effective from the date of expiry
of the said period.
(3) (a) An employee referred to in sub-regulation (1) may make a request in
writing to the appointing authority to accept notice of voluntary
retirement of less than three months giving reasons therefor.
(b) On receipt of request under clause (a), the appointing authority, may,
subject to the provisions of sub-regulation (2), consider such request
for the curtailment of the period of notice of three months on merits
and if it is satisfied that the curtailment of the period of notice will not
cause any administrative inconvenience, the appointing authority may

230
 relax the requirement of notice of three months on the condition that
the employee shall not apply for commutation of a part of his pension
before the expiry of the notice of three months.
(4) An employee, who has elected to retire under this regulation and has
given necessary notice to that effect to the appointing authority, shall be
precluded from withdrawing his notice except with the specific approval of
such authority;
Provided that the request for such withdrawal shall be made before the
intended date of his retirement.
(5) The qualifying service of an employee retiring voluntarily under this
regulation shall be increased by a period not exceeding five years, subject
to the condition that the total qualifying service rendered by such employee
shall not in any case exceed thirty-three years and it does not take him
beyond the date of superannuation.
(6) The pension of an employee retiring under this regulation shall be based
on the average emoluments as defined under clause (d) of regulation 2 of
these regulations and the increase, not exceeding five years in his qualifying
service, shall not entitle him to any notional fixation of pay for the purpose
of calculating his pension.
(Refer IBA Circular No. PD/KVK/85/G(ii)/2037 Dt. 04-01-1998 and Circular
No. PD/CIR/76/G(ii)/296 dt. 31-05-1996)
Encashment of Leave: Refer IBA Circular No: PD/CIR/76/G(ii)/296 dt. 31-05-1996
30. Invalid Pension:-
(1) Invalid pension may be granted to an employee who :-
(a) has rendered minimum ten years of service, and
(b) retires from the service on or after the 1st day of November 1993, on
account of any bodily or mental infirmity which permanently
incapacitates him for the service.
(2) An employee applying for an invalid pension shall submit a medical
certificate of incapacity from a medical officer approved by the Bank.
(3) Where the Medical Officer approved by the Bank has declared the
employee fit for further service of less laborious character than that which
he had been doing, he should, provided he is willing to be so employed,
be employed on lower post and if there be no means of employing him
even on a lower post, he may be admitted to invalid pension.
231
 (4) No medical certificate of incapacity for services may be granted unless
the applicant produces a letter to show that the Competent Authority is
aware of the intention of the applicant to appear before the medical Officer
approved by the Bank.
(5) The medical officer approved by the Bank shall also be supplied by the
Competent Authority in which the applicant is employed with a statement
of what appears from official records to be the age of the applicant.
31. Compassionate Allowance:-
(1) An employee, who is dismissed or removed or terminated from service,
shall forfeit his pension:
Provided that the authority higher than the authority competent to dismiss or
remove or terminate him from service may, if
(i) such dismissal, removal, or termination is on or after the 1st day of
November, 1993, and
(ii) the case is deserving of special consideration, sanction a
compassionate allowance not exceeding two-thirds of the pension
which would have been admissible to him on the basis of the qualifying
service rendered up to the date of his dismissal, removal or
termination.
(2) The Compassionate Allowance sanctioned under the proviso to sub-
regulation (1) shall not be less than the amount of minimum pension
payable under regulation 36 of these regulations.
32. Premature Retirement Pension:-
Premature Retirement Pension may be granted to an employee who :-
(a) has rendered minimum ten years of service ;
(b) retires from service on account of orders of the Bank to retire prematurely
in the public interest or for any other reason specified in service regulations
or settlement; if otherwise he was entitled to such pension on
superannuation on that date.
33. Compulsory Retirement Pension:-
(1) An employee compulsorily retired from service as a penalty on or after 1st
day of November, 1993, in terms of Discipline and Appeal Regulations or
settlement by the authority higher than the authority competent to impose
such penalty may be granted pension at a rate not less than two-thirds

232
 and not more than full pension admissible to him on the date of his
compulsory retirement if otherwise he was entitled to such pension on
superannuation on that date.
(2) Whenever in the case of a bank employee the Competent Authority passes
an order (whether original, appellate or in exercise of power of review)
awarding a pension less than the full compensation pension admissible
under these regulations, the Board of Directors shall be consulted before
such order is passed.
(3) A pension granted or awarded under sub-regulation (1) or, as the case
may be, under sub-regulation (2), shall not be less than the amount of
rupees three hundred and seventy five per mensem.

34. Payment of pension or family pension in respect of employees who retired

or died between 01-01-1986 and 31-10-1993:-
(1) Employees who have retired from the service of the Bank, between the
1st day of January, 1986 and the 31st day of October, 1993 shall be eligible
for pension with effect from the 1st day of November, 1993.
(2) The family of a deceased employee governed by the provisions contained
in sub-regulation (7) of regulation 3 shall be eligible for family pension
with effect from the 1st day of November, 1993.

RATE OF PENSION

35. Amount of Pension:-

(1) In respect of employees who retired between the 1st day of January, 1986
but before the 31st day of October, 1987, basic pension and additional
pension will be updated as per the formula given in Appendix - I.

(2) In the case of an employee retiring in accordance with the provisions of

the Service Regulations or Settlement after completing a qualifying service
of not less than thirty three years the amount of basic pension shall be
calculated at fifty per cent of the average emoluments.

(3) (a) Additional pension shall be fifty per cent of the average amount of
the allowances drawn by an employee during the last ten months of
his service;
(b) no dearness relief shall be paid on the amount of additional pension.

233
 Explanation:-
For the purpose of this sub-regulation “allowances” means allowances
which are admissible to the extent counted for making contributions to the
Provident Fund.
(4) Pension as computed being aggregate of sub-regulations (2) and (3) above
shall be subject to the minimum pension as specified in these regulations.
(5) An employee who has commuted the admissible portion of his pension as
per the provisions of regulation 41 of these regulations shall receive only
the balance of pension, monthly.
(6) (a) In the case of an employee retiring before completing a qualifying
service of thirty-three years, but after completing a qualifying service
of ten years, the amount of pension shall be proportionate to the
amount of pension admissible under sub-regulations (2) and (3) and
in no case the amount of pension shall be less than the amount of
minimum pension specified in these regulations.
(b) Notwithstanding any thing contained in these regulations, the amount
of invalid pension shall not be less than the ordinary rate of family
pension which would have been payable to his family in the event of
his death while in service.
(7) The amount of pension finally determined under this regulation shall be
expressed in whole rupee and where the pension contains a fraction of a
rupee, it shall be rounded of to the next higher rupee.
36. Minimum pension:-
The amount of minimum pension shall be,
(a) rupees three hundred and seventy five per month in respect of an
employee other than a part-time employee who had retired before the 1st
day of November, 1993.
(b) rupees one hundred and twenty five per month in respect of a part-time
employee who had retired before the 1st day of November 1993;
(c) rupees seven hundred and twenty per month in respect of an employee
other than part-time employee who retires on or after the 1st day of
November, 1993; and
(d) rupees two hundred and forty per month in respect of a part-time employee
who retires on or after the 1st day of November, 1993.

234
37. Dearness Relief:-
(1) Dearness relief shall be granted on basic pension or family pension or
invalid pension or on compassionate allowance in accordance with the
rates specified in Appendix - II.
(2) Dearness relief shall be allowed on full basic pension even after
commutation.
38. Determination of the period of ten months for average emoluments:-
(1) The period of the preceeding ten months for the purpose of average
emoluments shall be reckoned from the date of retirement.
(2) In the case of voluntary retirement or premature retirement the period of
the preceeding ten months for the purpose of average emoluments shall
be reckoned from the date on which the employee voluntarily retires or is
prematurely retired by the Bank.
(3) In the case of dismissal or removal or compulsory retirement or termination
of service the period of the preceeding ten months for the purpose of
average emoluments shall be reckoned from the date on which the
employee is dismissed or removed or compulsorily retired or terminated
by the Bank.
(4) If during the last ten months of the service an employee had been absent
from duty on extraordinary leave on loss of pay or had been under
suspension and the period whereof does not count as service, the aforesaid
period of extraordinary leave or suspension shall not be taken into account
in the calculation of the average emoluments and an equal period before
the ten months shall be included.
FAMILY PENSION

39. Family Pension:-

(1) Without prejudice to the provisions contained in these regulations where
an employee dies :-
(a) after completion of one year of continuous service; or
(b) before completion of one year of continuous service provided the
deceased employee concerned immediately prior to his appointment
to the service or post was examined by a medical officer approved
by the Bank and declared fit for employment in the Bank; or

235
 (c) after retirement from service and was on the date of death in receipt
of a pension, or compassionate allowance;
the family of the deceased shall be entitled to family pension,
the amount of which shall be determined in accordance with
Appendix - III.
(2) The amount of family pension shall be fixed at monthly rates and be
expressed in whole rupees and where the family pension contains; a
fraction of a rupee, it shall be rounded off to the next higher rupee;
Provided that in no case a family pension in excess of the maximum
prescribed under these regulations shall be allowed.
(3) (a) (i) Where an employee, who is not governed by the Workmen’s
Compensation Act, 1923, (8 of 1923), dies while in service after
having rendered not less than seven years’ continuous service,
the rate of family pension payable to the family shall be equal to
fifty per cent of the pay last drawn or twice the family pension
admissible under sub-regulation (1), whichever is less, and the
amount so admissible shall be payable from the date following
the date of death of the employee for a period of seven years or
for a period up to the date on which the deceased employee
would have attained the age of sixty five years had he survived,
whichever is less;
(ii) In the event of death of an employee after retirement, the family
pension as determined under clause (a) or clause (b) of this
sub-regulation shall be payable for a period of seven years or
for a period up to the date on which the retired deceased
employee would have attained the age of sixty five years had
he survived, whichever is less;
(b) (i) Where an employee, who is governed by the Workmen’s
Compensation Act, 1923 (8 of 1923), dies while in service after
having rendered not less than seven years’ continuous service,
the rate of family pension payable to the family shall be equal to
fifty per cent, of the pay last drawn or one and half times the
family pension admissible under sub-regulation (1), whichever
is less;
(ii) the family pension so determined under sub-clause (1) shall be
payable for the period mentioned in clause (a);

236
 (c) after the expiry of the period referred to in clause (a), the family,
in receipt of family pension under that clause or clause (b) shall
be entitled to family pension at the rate admissible under
sub-regulation (1).
(4) Notwithstanding anything contained in these regulations where the family
of a deceased employee opts for pension in accordance with sub-regulation
(5) of regulation 3 or is governed by the provisions contained in
sub-regulation (6) or (7) or (8) of regulation 3, such family of the deceased
shall be eligible for family pension under these regulations.
(Refer IBA Circular No. PD/CIR/76/G(ii)/495 dt. 28-07-1998 and Circular
No. PD/CIR/76/G(ii)/1492 dt. 04-01-1999)
40. Period of payment of family pension:-
The period for which family pension is payable shall be :-
(a) in the case of a widow or a widower, up to the date of death or re-marriage,
whichever is earlier;
(b) in the case of a son, until he attains the age of twenty-five years; and
(c) in the case of an unmarried daughter, until she attains the age of
twenty-five years or until she gets married, whichever is earlier;
Provided that if the son or daughter of an employee is suffering from any
disorder or disability of mind or is physically crippled or disabled so as to
render him or her unable to earn a living even after attaining the age of
twenty-five years, the family pension shall be payable to such son or
daughter for life subject to the following conditions, namely :-
(i) if such son or daughter is one among two or more Children of the
employee, the family pension shall be initially payable to the minor
children in the order set out in clause (e) of sub-regulation (1) until
the last minor child attains the age of twenty-five years and thereafter
the family pension shall be resumed in favour of the son or daughter
suffering from disorder or disability of mind or who is physically
crippled or disabled and shall be payable to him or her for life;
(ii) if there are more than one such children suffering from disorder or
disability of mind or who are physically crippled or disabled, the family
pension shall be paid in the order of their birth and the younger of
them will get the family pension only after the elder next above him
or her ceases to be eligible;

237
 Provided that where the family pension is payable to such twin
children it shall be paid in the manner set out in clause (f) of
sub-regulation (1);

(iii) the family pension shall be paid to such son or daughter through the
guardian as if he or she were a minor except in the case of a physically
crippled son or daughter who has attained the age of majority;
(iv) before allowing the family pension for life to any such son or daughter,
the Competent Authority shall satisfy that the handicap is of such a
nature as to prevent him or her from earning his or her livedlihood
and the same shall be evidenced by a certificate obtained from a
medical officer approved by the Bank, setting out, as far as possible,
the exact mental or physical condition of the child;
(v) the person receiving the family pension as guardian of such son or
daughter or such son or daughter not receiving the family pension
through a guardian shall produce every three years a certificate from
a medical officer approved by the Bank to the effect that he or she
continues to suffer from disorder or disability of mind or continues to
be physically crippled or disabled.

Explanation :-

The grant of family pension to disabled children beyond the age limit
specified in this regulation is subject to the following conditions,
namely -

(i) a daughter shall become ineligible for family pension under this
sub-regulation from the date she gets married;
(ii) the family pension payable to such son or daughter shall be
stopped if he or she starts earning his or her livelihood. In such
cases it shall be the duty of the guardian or son or daughter to
furnish a certificate to the Bank every month that -

(A) he or she has not started earning his or her livelihood;

(B) in case of daughter that she has not yet married;
(d) If a deceased employee or pensioner leaves behind a widow or
widower, the family pension shall become payable to the widow or
widower, failing which to the eligible child;

238
 (e) family pension to the children shall be payable in the order of their
birth and the younger of them shall not be eligible for family pension
unless the elder next above him or her has become ineligible for the
grant of family pension;
Provided that where the family pension is payable to twin
children it shall be paid in the manner set out in clause (f) of the
sub-regulation (1);

(f) Where the family pension is payable to twin children it shall be paid
to such children in equal shares;
Provided that where one such child ceases to be eligible, his or her
share shall revert to the other child and where both of them cease to
be eligible, the family pension shall be payable to the next eligible
single child or twin children, as the case may be.
(2) Where a deceased employee or a pensioner leaves behind more children
than one, the eldest eligible child shall be entitled to the family pension for
the period mentioned in clauses (b) or (c) of sub-regulation (1), as the
case may be, and after the expiry of that period the next child shall become
eligible for the grant of family pension.
(3) Where family pension is granted under this regulation to a minor, it shall
be payable to the guardian on behalf of the minor.
(4) In case both wife and husband are employees of the Bank and are
governed by the provisions of this regulation and one of them dies while in
service or after retirement, the family pension in respect of the deceased
shall be payable to the surviving husband or wife and in the event of death
of the husband or wife, the surviving child or children shall be granted the
two family pensions in respect of the deceased parents subject to the
limits specified below, namely :-
(a) if the surviving child or children is or are eligible to draw two
family pensions at the rates mentioned in sub-clause (1) of clause
(a) and sub-clause (i) of clause (b) of sub-regulation (3) of regulation
39 the amount of both pensions shall be limited to two thousand five
hundred rupees only per mensem in respect of employees who
retired or died while in service prior to the 1st day of November, 1993
and four thousand eight hundred rupees per mensem only in
respect of employees who retired or died on or after the 1st day of
November, 1993;

239
 (b) if one of the family pensions ceases to be payable at the
rates mentioned in sub-clause (i) of clause (a) or sub-clause (i) of
clause (b) of sub-regulation (3) of regulation 39 and in lieu thereof
the family pension at the rate mentioned in sub-regulation (1) of
regulation 39 becomes payable, the amount of both the pensions
shall also be limited to two thousand five hundred rupees per mensem
in respect of employees who retired or died while in service prior to
the 1st day of November; 1993 and four thousand eight hundred
rupees per mensem in respect of employees who retired or died on
or after the 1st day of November, 1993;
(c) if both the family pensions are payable at the rate mentioned in sub-
regulation (1) of regulation 39 the amount of the two pensions shall
be limited to one thousand two hundred and fifty rupees per mensem
in the case of employees who retired or died while in service prior to
the 1st day of November, 1993 and two thousand four hundred rupees
per mensem in respect of employees who retired or died on or after
the 1st day of November, 1993.

(5) (a) Where family pension is payable to more widows than one, the family
pension shall be paid to the widows in equal shares;
(b) on the death of a widow, her share of the family pension shall become
payable to her eligible child;
Provided that if the widow is not survived by any child, her share of
the family pension shall not lapse but shall be payable to the other
widows in equal shares, or if there is only one such other widow, in
full, to her;
(c) where the deceased employee or pensioner is survived by a widow
but has left behind eligible child or children from another wife who is
not alive, the eligible child or children shall be entitled to the share of
family pension which the mother would have received if she had
been alive at the time of the death of the employee or pensioner;
Provided that on the share or shares of family pension payable to
such a child or children or to a widow or widows ceasing to be payable,
such share or shares shall not lapse, but shall be payable to the
other widow or widows or to other child or children otherwise eligible,
in equal shares, or if there is only one widow or child, in full, to such
widow or child;

240
 (d) where the family pension is payable to twin children it shall be paid to
such children in the manner specified in clause (f) of sub-regulation
(1) above;
(e) except as provided in this sub-regulation the family pension shall not
be payable to more than one member of the family at the same time.

(6) Where a female employee or male employee dies leaving behind a judicially
separated husband or widow and no child or children, the family pension
in respect of the deceased shall be payable to the person surviving:
Provided that where in a case the judicial separation is granted on the
ground of adultery and the death of the employee takes place during the
period of such judicial separation, the family pension shall not be payable
to the person surviving if such person surviving was held guilty of
committing adultery.

(7) (a) where a female employee or male employee dies leaving behind a
judicially separated husband or widow with a child or children, the
family pension payable in respect of the deceased shall be payable
to the surviving person provided he or she is the guardian of such
child or children;
(b) where the surviving person has ceased to be the guardian of such
child or children, such family pension shall be payable to the person
who is the actual guardian of such child or children.

(8) if the son or unmarried daughter eligible for the grant of family pension
has attained the age of eighteen years, the family pension may be paid to
such son or unmarried daughter directly.
(9) (a) if a person who, in the event of death of an employee while in service,
is eligible to receive family pension under these regulations, is charged
with the offence of murdering the employee or for abetting in the
commission of such an offence, the claim of such a person, including
other eligible member or members of the family to receive the family
pension, shall remain suspended till the conclusion of the criminal
proceedings instituted against him;
(b) if on the conclusion of the criminal proceedings referred to in clause
(a), the person concerned -
(i) is convicted for the murder or abetting in the murder of the
employee, such a person shall be debarred from receiving the

241
 family pension which shall be payable to the other eligible
member of the family, from the date of death of the employee;
(ii) is acquitted of the charge of murder or abetting in the murder of
the employee, the family pension shall be payable to such a
person from the date of death of the bank employee;
(c) the provisions of sub-clauses (a) and (b) shall also apply for the family
pension becoming payable on the death of an employee after his
retirement.

Military Family Pension

(Refer IBA Circular No. PD/CIR/76/G2/1218 dt. 30-10-1999)

COMMUTATION

41. Commutation:-
(1) An employee shall be entitled to commute for a lump sum payment of a
fraction not exceeding one-third of his pension:
Provided that in respect of an employee who is governed by sub-regulation
(5) of regulation 3 of these regulations, the family of such employee shall
also be entitled to commute for a lump sum payment a fraction not
exceeding one-third of the pension admissible to the employee.
(2) An employee shall indicate the fraction of pension which he desires to
commute and may either indicate the maximum limit of one-third pension
or such lower limit as he may desire to commute.
(3) If fraction of pension to be commuted results in fraction of rupee, such
fraction of a rupee shall be ignored for the purpose of commutation.
(4) The lump sum payable to an applicant shall be calculated in accordance
with the Table given below:-

242
 TABLE
Commutation values for a pension of Re. one per annum
Age next Commutation Age next Commutation
birthday value expressed as number birthday expressed as number
of year’s purchase of year’s purchase
17 19.28 51 12.95
18 19.20 52 12.66
19 19.11 53 12.35
20 19.01 54 12.05
21 18.91 55 11.73
22 18.81 56 11.42
23 18.70 57 11.10
24 18.59 58 10.78
25 18.47 59 10.46
26 18.34 60 10.13
27 18.21 61 09.81
28 18.07 62 09.48
29 17.93 63 09.15
30 17.78 64 08.82
31 17.62 65 08.50
32 17.46 66 08.17
33 17.29 67 07.85
34 17.11 68 07.53
35 16.92 69 07.22
36 16.72 70 06.91
37 16.52 71 06.60
38 16.31 72 06.30
39 16.09 73 06.01
40 15.87 74 05.72
41 15.64 75 05.44
42 15.40 76 05.17
43 15.15 77 04.90
44 14.90 78 04.65
45 14.64 79 04.40
46 14.37 80 04.17
47 14.10 81 03.94
48 13.82 82 03.72
49 13.54 83 03.52
50 13.25 84 03.32
85 03.13
243
Note: The Table above indicates the commuted value of pension expressed as number
of year’s purchase with reference to the age of the pensioner as on his next birthday.
The commuted value in the case of an employee retiring at the age of fifty eight years
is 10.46 years’ purchase and, therefore, if he commutes rupees one hundred from
his pension within one year of retirement, the lump sum amount payable to him works
out to Rs. 100 x 10.46 x 12 = Rs. 12,552.
(5) An employee who had commuted the admissible portion of pension is entitled
to have the commuted portion of the pension restored after the expiry of a
period of fifteen years from the date of commutation.
(6) An applicant who is authorised to receive a superannuation pension, voluntary
retirement pension, premature retirement pension, compulsory retirement
pension, invalid pension or compassionate allowance shall be eligible to
commute a fraction of his pension under these regulations.
(7) In the case of a pensioner eligible for superannuation pension or pension on
voluntary retirement or premature retirement pension, no medical examination
shall be necessary, if the application for commutation is made within one year
from the date of retirement. However, if such a pensioner applies for commutation
of pension after one year from the date of his retirement, the same will be
permitted subject to medical examination.
(8) An applicant who -
(i) retires on invalid pension under regulation 30 of these regulations, or
(ii) is in receipt of compassionate allowance under regulation 31 of these
regulations; or
(iii) is compulsorily retired by the Bank and is eligible for compulsory retirement
pension under regulation 33.
shall be eligible to commute a fraction of his pension subject to the limit specified
in sub-regulation (1) after he has been declared fit by a medical officer approved
by the Bank.
(9) The commutation of pension shall become absolute in the case of an employee -
(a) retiring on superannuation or voluntary retirement who submits an
application for commutation of pension before the date of retirement, on
the date following the date of retirement;

Provided that the employee governed by sub-regulation (3) of regulation

29 shall not apply for commutation of a part of his pension before the

244
expiry of the notice of three months and the commutation of pension shall
become absolute only on the expiry of the period of notice referred to in
sub-regulation (1) of regulation 29;

(b) retiring on superannuation or on voluntary retirement or on premature

retirement, if he applies for commutation of pension after the date of
retirement but before the completion of one year from the date of
retirement, on the date the application for commutation is received
by the Competent Authority;

(c) retiring on superannuation or on voluntary retirement or on premature

retirement, if he applies for commutation of pension after one year
from the date of retirement, on the date of the medical certificate
given by a medical officer approved by the Bank;

(d) who has retired prior to the 1st day of November, 1993 and who opts
to be governed by these regulations, on the 1st day of November,
1993, where the application for commutation is made within the period
specified by the clause (b) of the sub-regulation (1) of regulation 3;

(e) who was in the service of the Bank on or after the 1st day of
November, 1993 but who retired prior to the publication of these
regulations on the day immediately following the date of his retirement,
where the application is made within the period specified by clause
(b) of sub-regulation (2) of regulation 3;

(f) who retired on or after the 1st day of November, 1993 but died prior
to the notified date, on the day immediately following the date of his
retirement, where the application for commutation is made by the
family of the deceased within the period specified by clause (a) of
sub-regulation (5) of regulation 3;

(g) in respect of whom invalid pension under regulation 30 or compulsory

retirement under regulation 33 is admissible, commutation shall
become absolute on the date of the medical certificate given by a
medical officer approved by the Bank.

245
GENERAL CONDITIONS
42. Pension subject to future good conduct:-
Future good conduct shall be an implied condition of every grant of pension and
its continuance under these regulations.
43. Withholding or withdrawal of pension:-
The Competent Authority may, by order in writing, withhold or withdraw a pension
or a part thereof, whether permanently or for a specified period, if the pensioner
is convicted of a serious crime or criminal breach of trust or forgery or acting
fraudulently or is found guilty of grave misconduct:
Provided that where a part of pension is withheld or withdrawn, the amount of
such pension shall not be reduced below the minimum pension per mensem
payable under these regulations.
44. Conviction by court:-
Where a pensioner is convicted of a serious crime by a Court of Law, action
shall be taken in the light of the judgement of the court relating to such conviction.
45. Pensioner guilty of grave misconduct:-
In a case not falling under regulation 44 if the Competent Authority considers
that the pensioner is prima facie guilty of grave misconduct, it shall, before
passing an order, follow the procedure specified in Officer Employees’ (Discipline
and Appeal) Regulations, 1976 or in Settlement as the case may be.
46. Provisional Pension:-
(1) An employee who has retired on attaining the age of superannuation or
otherwise and against whom any departmental or judicial proceedings
are instituted or where departmental proceedings are continued, a
provisional pension, equal to the maximum pension which would have
been admissible to him, would be allowed subject to adjustment against
final retirement benefits sanctioned to him, upon conclusion of the
proceedings but no recovery shall be made where the pension finally
sanctioned is less than the provisional pension or the pension is reduced
or withheld etc., either permanently or for a specified period.
(Refer IBA Circular No. PD/CIR/76/G2/1136 dt. 12-10-1999)
(2) In such cases the gratuity shall not be paid to such an employee until the
conclusion of the proceedings against him. The gratuity shall be paid to
him on conclusion of the proceedings subject to the decision of the
246
 proceedings. Any recoveries to be made from an employee shall be
adjusted against the amount of gratuity payable.
Explanation :- In this chapter
(a) the expression ‘serious crime’ includes a crime involving an offence under
the Official Secrets Act, 1923 (19 of 1923);
(b) the expression “grave misconduct” includes the communication or
disclosure of any secret official code or password or any sketch, plan,
model, article, note, document or information, such as is mentioned in
section 5 of the Official Secrets Act, 1923 (19 of 1923) which was obtained
while holding office in the Bank so as to prejudicially affect the interests of
the general public or the security of the State.
(c) the expression fraudulently’ shall have the meaning assigned to it under
section 25 of the Indian Penal Code, 1860 (45 of 1860);
(d) the expression ‘criminal breach of trust’ shall have the meaning assigned
to it under section 405 of the Indian Penal Code, 1860 (45 of 1860);
(e) the expression ‘forgery’ shall have the meaning assigned to it under section
463 of the Indian Penal Code, 1860 (45 of 1860);
47. Commutation of pension during departmental or judicial proceedings:-
An employee against whom departmental or judicial proceedings have been
instituted before the date of his retirement or a person against whom such
proceedings are instituted after the date of his retirement shall not be eligible to
commute a fraction of his provisional pension, or pension, as the case may be,
authorised under these regulations during the pendency of such proceedings.
48. Recovery of Pecuniary loss caused to the Bank:-
(1) The Competent Authority may withhold or withdraw a pension or a part
thereof, whether permanently or for a specified period, and order recovery
from pension of the whole or part of any pecuniary loss caused to the
bank if in any departmental or judicial proceedings the pensioner is found
guilty of grave misconduct or negligence or criminal breach of trust or
forgery or acts done fraudulently during the period of his service;
Provided that the Board shall be consulted before any final orders are
passed;
Provided further that departmental proceedings, if instituted while the
employee was in service, shall, after the retirement of the employee, be
deemed to be proceedings under these regulations and shall be continued

247
 and concluded by the authority by which they were commenced in the
same manner as if the employee has continued in service;
Provided also that no departmental or judicial proceedings, if not initiated
while the employee was in service, shall be instituted in respect of a cause
of action which arose or in respect of an event which took place more than
four years before such institution.

(2) Where the Competent Authority orders recovery of pecuniary loss from
the pension, the recovery shall not ordinarily be made at a rate exceeding
one-third of the pension admissible on the date of retirement of the
employee;
Provided that where a part of pension is withheld or withdrawn, the amount
of pension drawn by a pensioner shall not be less than the minimum
pension payable under these regulations.

49. Recovery of Bank’s dues:-

The Bank shall be entitled to recover the dues to the Bank on account of housing
loans, advances, license fees, other recoveries and recoveries due to staff
co-operative credit society from the commutation value of the pension or the
pension or the family pension.

50. Commercial employment after retirement:-

(1) If a pensioner who immediately before his retirement was holding the post
of an officer and wishes to accept any commercial employment before the
expiry of two years from the date of his retirement, he shall obtain the
previous sanction of the Bank to such acceptance;

(2) Subject to the provision of sub-regulation (3), the Bank may, by order in
writing, on the application by a pensioner, grant, subject to such conditions,
if any, as it may deem necessary, permission, or refuse, for reasons to be
recorded in the order, permission to such pensioner to take up the
commercial employment specified in the application.

(3) In granting or refusing permission under sub-regulation (2) to a pensioner

for taking up any commercial employment, the Bank shall have regard to
the following factors, namely :-
(a) the nature of the employment proposed to be taken up and the
antecedents of the employer;

248
 (b) whether his duties in the employment which he proposes to take up
might be such as to bring him into conflict with the Bank;
(c) whether the pensioner while in service had any such dealing with the
employer under whom he proposes to seek employment as it might
afford a reasonable basis for the suspicion that such pensioner had
shown favours to such employer;
(d) whether the duties of the commercial employment proposed involve
liaison or contact work with Bank;
(e) whether his commercial duties will be such that his previous official
position or knowledge or experience under Bank could be used to
give the proposed employer an unfair advantage;
(f) the emoluments offered by the proposed employer; and
(g) any other relevant factor.
(4) Where within a period of sixty days of the date of receipt of an application
under sub-regulation (3), the Bank does not refuse to grant the permission
applied for or does not communicate the refusal to the applicant, the Bank
shall be deemed to have granted the permission applied for;
Provided that in any case where defective or insufficient information is
furnished by the applicant and it becomes necessary for the bank to seek
further clarifications or information from him, the period of sixty days shall
be counted from the date on which the defects have been removed or
complete information has been furnished by the applicant.
(5) Where the Bank grants the permission applied for subject to any conditions
or refuses such permission, the applicant may, within thirty days of the
receipt of the order of the Bank to that effect, make a representation against
any such condition or refusal and the Bank may make such orders thereon
as it deems fit;
Provided that no order other than an order cancelling such condition or
granting such permission without any conditions shall be made under this
sub-regulation without giving the pensioner making the representation an
opportunity to show cause against the order proposed to be made.
(6) If any pensioner takes up any commercial employment at any time before
the expiry of two years from the date of his retirement without the prior
permission of the Bank or commits a breach of any condition subject to
such permission to take up any commercial employment has been granted
to him under this regulation, it shall be competent for the Bank to declare

249
 by order in writing and for reasons to be recorded therein that he shall not
be entitled to the whole or such part of the pension and for such periods
as may be specified in the order;
Provided that no such order shall be made without giving the pensioner
concerned an opportunity of show cause against such declaration;
Provided further that in making any order under this sub-regulation, the
Bank shall have regard to the following factors, namely:-
(i) the financial circumstances of the pensioner concerned;
(ii) the nature of, and the emoluments from, the commercial employment
taken up by the pensioner concerned; and
(iii) any other relevant factor.

(7) Every order passed by the Bank under this regulation shall be
communicated to the pensioner concerned.

(8) In this regulation, the expression “commercial employment” means

(i) an employment in any capacity including that of an agent, under a
company (including a banking company), co-operative society, firm
or individual engaged in trading, commercial, industrial, financial or
professional business and includes also a directorship of such
company (including a banking company) and partnership of such
firm, but does not include employment under a body corporate, wholly
or substantially owned or controlled by the Central Government or a
State Government.

(ii) setting up practice, either independently or as a partner of a firm, as

adviser or consultant in matters in respect of which the pensioner -
(A) has no professional qualifications and the matters in respect of
which the practice is to be set up or is carried on are relatable to
his official knowledge or experience, or

(B) has professional qualifications but the matters in respect of which

such practice is to be set up are such as are likely to give his
clients an unfair advantage by reason of his previous official
position, or

(C) has to undertake work involving liaison or contact with the offices
or officers of the Bank.

250
Explanation:-
For the purpose of this clause, the expression “employment under a co-operative
society” includes the holding of any office, whether elective or otherwise, such as that
of President, Chairman, Manager, Secretary, Treasurer and the like, by whatever
name called in such society.

51. Nomination:-
(1) The trust shall allow every employee governed by these regulations to
make a nomination conferring on one or more persons the right to receive
the amount of pensionary benefits under these regulations in the event of
his death before that amount becomes payable or, having become payable,
has not been paid. Such nomination shall be made in such form as may
be specified by the Bank from time to time.

(2) If any employee nominates more than one person under sub-regulation
(1), he shall, in his nomination, specify the amount or share payable to
each of the nominees in such a manner as to cover the whole of the
amount of the pensionary benefits that may be payable in the event of his
death.

(3) A nomination made by an employee may, at any time, be modified or

revoked by him after giving a written notice to the trust of his intention of
doing so in such form as the Bank may from time to time specify.

(4) A nomination or its revocation or its modification shall take effect to the
extent it is valid on the date on which it is received by the trust.

52. Date from which pension becomes payable:-

(1) Except in the case of an employee to whom the provisions of regulation
43 and regulation 46 apply a pension other than family pension shall
become payable from the date following the date on which an employee
retires.

(2) Family pension shall become payable from the date following the date of
death of the employee or the pensioner.

(3) Pension including family pension shall be payable for the day on which its
recipient dies.

(Refer IBA Circular No. PD/CIR/76/G2/1655 dt. 15-01-2000)

251
53. Currency in which pension is payable:-
All pensions admissible under these regulations shall be payable in rupees in
India only.
(Refer IBA Circular No. PD/CIR/76/G2/1655 dt. 15-01-2000)
54. Manner of payment of pension:-
A pension fixed at a monthly rate shall be payable monthly on or after the first
day of the following month.
55. Power to issue instructions:-
The Chairman and Managing Director of the Bank may from time to time issue
instruction as may be considered necessary or expedient for the implementation
of these regulations.
56. Residuary provisions:-
In case of doubt, in the matter of application of these relegations, regard may
be had to the corresponding provisions of Central Civil Services Rules, 1972, or
Central Civil Services (Commutation of Pension) rules, 1981 applicable for
Central Government employees with such exceptions and modifications as the
Bank, with the previous sanction of the Central Government, may from time to
time determine.

252
 APPENDIX - I
(See Regulation 35)
The formula of updating basic pension and additional pension in respect of employees
who retired between the 1st day of January 1986 and the 31st day of October 1987
shall be as under :-

A. (1) Basic Pension shall be increased by an amount of :-

(a) 50 per cent of first 1000 __________

of the average emoluments
reckonable for pension.

(b) 45 per cent of next 500 __________

(c) 40 per cent of the average __________

emoluments reckonable for pension
exceeding 1500
Total of (a+b+c) __________ (A)

B. 50 per cent of the average monthly __________ (B)

emoluments for the last 10 months
in service prior to retirement

C. Dearness Relief at Index number 600 __________ (C)

in the All India Average Consumer
Price Index for Industrial Workers
in the series 1960 = 100, on basic
pension calculated at (1) above,
as per Table given below.

D. Total increased basic pension __________ (D)

= (B) + (C) x Number of years
of qualifying service (Maximum 33 years)
33

E. Basic Pension as on 01-11-1993 __________ (E)

(Rounded off to the next higher rupee)

(2) For increase in the additional pension, amount of special allowances

counted for making contributions to Provident Fund will be increased with
reference to the quantum of special allowances ranking for Provident Fund
as per the Service Regulations or Settlements, as the case may be.

253
 TABLE

Rates of dearness relief worked out at Index number 600 in the All India Average
Consumer Price Index for Industrial Workers in the series 1960=100 for all classes of
employees who retired during the period 01-01-1986 to 31-10-1987
(a) Employees in subordinate staff cadre 80.40 per cent of pension calculated
at A(1) above
(b) Employees in clerical staff cadre drawing 67 per cent of pension calculated
pension upto Rs. 756/- per month at A(1) above
(c) Employees in clerical staff cadre drawing pension of 757/- per month and
above will be eligible for dearness relief as under :

Amount of basic pension The amount of dearness

drawn per month relief admissible

757 - 796 508.00

797 - 804 534.00
805 - 824 540.00
825 - 844 553.00
845 - 864 567.00
865 - 884 580.00
885 - 904 593.00
905 - 924 607.00
925 - 944 620.00
945 - 964 634.00
965 - 984 647.00
985 - 1004 660.00
1005 - 1024 674.00
1025 - 1044 687.00
1045 - 1064 701.00
1065 - 1084 714.00
1085 & above 727.00

254
(d) Employees in officer cadre shall be eligible for dearness relief as under :
(i) For those drawing 66 per cent of the amount
basic pension upto of pension calculated as
765/- per month. at A(1) above subject to
a maximum of 500
(ii) For those drawing basic 500/-
pension from 766/-
to 1165/- per month;
(iii) For those drawing basic 42.90 per cent of amount
pension of 1166/- of pension calculated as
per month or above; at A(1) above subject to
a maximum of 715/-

APPENDIX - II
(See Regulation 37)
Dearness relief on basic pension shall be as under :-
(1) In the case of employees who retired on or after the 1st day of January, 1986,
but before the 1st day of November, 1993, dearness relief shall be payable for
every rise or be recoverable for every fall, as the case may be, of every 4 points
over 600 points in the quarterly average of the All India Average consumer
Price Index for Industrial Workers in the series 1960 = 100. Such increase or
decrease in dearness relief for every said four points shall be calculated in the
manner given below:-
Scale of basic pension The rate of dearness relief
per month as a percentage of basic pension
(1) (2)
(i) Upto 1250 0.67 per cent.
(ii) 1251 to 2000 0.67 per cent of 1250 plus 0.55
per cent of basic pension in excess of
1250.
(iii) 2001 to 2130 0.67 per cent of 1250 plus 0.55 per cent
of the difference between 2000 and
1250 plus 0.33 per cent of basic pension
in excess of 2000.

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 (iv) above 2130 0.67 per cent of 1250 plus 0.55 per cent
of the difference between 2000 and
1250 plus 0.33 per cent of the difference
between 2130 and 2000 plus 0.17
per cent of basic pension in excess of
2130.

(2) In the case of employees who retire on or after the 1st day of November, 1993,
dearness relief shall be payable for every rise or be recoverable for every fall,
as the case may be, of every 4 points over 1148 points in the quarterly average
of the All India Average Consumer Price Index of Industrial Workers in the series
1960 = 100. Such increase or decrease in dearness relief for every said four
points shall be calculated in the manner given below:-

Scale of basic pension The rate of dearness relief

per month as a percentage of basic pension
(1) (2)

(i) Upto 2400 0.35 per cent.

(ii) 2401 to 3850 0.35 per cent of 2400 plus 0.29
per cent of basic pension in excess of
2400.
(iii) 3851 to 4100 0.35 per cent of 2400 plus 0.29 per cent
of the difference between 3850 and
2400 plus 0.17 per cent of basic pension
in excess of 3850.
(iv) above 4100 0.35 per cent of 2400 plus 0.29 per cent
of the difference between 3850 and
2400 plus 0.17 per cent of the difference
between 4100 and 3850 plus 0.09 per
cent of basic pension in excess of
4100.

(3) Dearness relief shall be payable for the half year commencing from the 1st day
of February and ending with 31st day of July on the quarterly average of the
index figures published for the months of October, November and December of
the previous year and for the half year commencing from the 1st day of August
and ending with 31st day of January on the quarterly average of the index
figures published for the months of April, May and June of the Same year.

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(4) In the case of family pension, invalid pension and compassionate allowance,
dearness relief shall be payable in accordance with the rates mentioned above.
(5) Dearness relief will be allowed on full basic pension even after commutation.
(6) Dearness relief is not payable on additional pension.

APPENDIX - III
(See Regulation 39)
The ordinary rates of Family Pension shall be as under:
(a) In respect of employees other than part-time employees retired before 01-11-1993

Scale of basic pension The rate of dearness relief

per month as a percentage of basic pension
(1) (2)

Upto 1500 30 per cent of the ‘Pay’ shall be the basic

family pension plus 30 per cent of
allowances which are counted for making
contributions to Provident Fund but not for
dearness allowance shall be the additional
family pension. The aggregate of Basic
and additional family pension shall not be
less than 375 per month.
1501 to 3000 20 per cent of the ‘Pay’ shall be the basic
family pension plus 20 per cent of
allowances which are counted for making
contributions to Provident Fund but not for
dearness allowance shall be the additional
family pension shall not be less than 450
per month.
Above 3000 15 per cent of the ‘Pay’ shall be the basic
family pension plus 15 per cent of
allowances which are counted for making
contributions to Provident Fund but not for
dearness allowance shall be the additional
family pension. The aggregate of basic
and additional family pension shall not be
less than 600 per month and more than
1250 per month.

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(b) In respect of employees other than part-time employees retired or retiring on or
after 01-11-1993.

Scale of pay per month Amount of monthly Family Pension

(1) (2)

Upto 2870 30 per cent of the ‘Pay’ shall be the basic

family pension plus 30 per cent of the
allowances which are counted for making
contributions to Provident Fund but not for
dearness allowance shall be the additional
family pension. The aggregate of basic
and additional family pension shall be
subject to a minimum of 720 per month.

2871 to 5740 20 per cent of the ‘Pay’ shall be the basic

family pension plus 20 per cent of the
allowances which are counted for making
contributions to Provident Fund but not for
dearness allowance shall be the additional
family pension. The aggregate of basic
and additional family pension shall be
subject to a minimum of 860 per month.

Above 5740 15 per cent of the ‘Pay’ shall be the basic

family pension plus 15 percent of the
allowances which are counted for making
contributions to Provident Fund but not for
dearness allowance shall be the additional
family pension. The aggregate of basic
and additional family pension shall be
subject to a minimum of 1150 per month
and a maximum of 2400 per month.

Notes:-(1) Dearness relief is not payable on additional family pension.

(2) Scale of pay for the purpose of calculation of family pension as above
shall be the aggregate of “Pay” as defined in sub-clause (r) of regulation 2
and “allowances” as defined in the explanation to sub-regulation (3) of
regulation 33.

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 (3) In the case of a part-time employee, the minimum amount of family pension
and maximum amount of family pension shall be in proportion to the rate
of scale wages drawn by the employee.

APPENDIX - IV
(See Regulation 27)
Actual service on scale wages Length of corresponding qualifying
rendered on permanent part-time service for each year of service
basis in one week. rendered on permanent part-time
basis for calculating the amount of
pension.
(1) (2)
Six hours or more but one third of a year
upto 13 hours;
more than 13 hours but one half of a year
upto 19 hours;
more than 19 hours but three fourth of a year
upto 29 hours;
more than 29 hours; one year

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 CHAPTER - XXIX

IBA CIRCULARS ON PENSION

1. BANK (EMPLOYEES’) PENSION REGULATIONS, 1993
IBA. Circular NO/CIR/76/G(II)/1846 Dt. 18-2-1995
Further to our circular letter NOD/CAR/76/G(II)1905 dated 31st march, 1994
and our circular letter NO.PD/CAR/76/G(II)/587 dated 20th July, 1994, we have
to advice that the following issues have been considered by the Managing
Committee of the association at its meeting held on 25th January, 1995:
1. Netting
2. Determination of common date for making the commutation absolute for
employees who have retired between 1.1.1986 and 31.10.1993.
3. Interest rate on refund of CPF balances in case of employees who retired
after 1.11.1993 till date.
We request you to be guided by the decision of the Managing Committee, as
given below, while implementing the Pension Regulations, 1993.
1. Netting
It has been provided in the regulations that employees who retired between
the period 1.1.1986 and 31.10.1993 shall refund the CPF balances on
account of the employer together with the interest thereon to the bank. A
retiree who opts for commutation would be eligible to receive the commuted
amount of pension from the bank. In order to reduce the hardship, it has
been decided and communicated to the banks that the employee may
pay only the difference between what he has to refund to the bank and
what is due from the bank to him in the form of commuted pension. Since
the implementation of the pension regulations may take some more time,
for the purpose of netting, the amount of commuted pension and the arrears
of pension payable from 1.11.1993 to the actual date of implementation
may also be taken into account.
2. Interest rate on refund of CPF balance in case of employees who
retired after 1-11-1993 till date of effective implementation of Pension
Regulations
Under cover of our circular letter NOD/CIR/76/G/(II)/195 dated 31st March,
1994, we had communicated that in case of employees who retired on or
after 1-11-1993 the rate of interest applicable would be the prevailing rate
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 as applicable to PF. Many representations have been received that such
a rate, which differs from bank to bank is rather too high. Employees’
Unions have also been requesting that the rate of interest to be paid by
employees who retired on or after 1-11-1993 be lowered. It has been
decided by the Managing Committee that employees who retired on or
after 1-11-1993 shall also be required to refund the PF balances to the
bank with simple interest at the rate of 6% per annum.

2. GRANT OF FAMILY PENSION TO THE FAMILIES OF THE EMPLOYEES/

PENSIONERS WHOSE WHEREABOUTS ARE NOT KNOWN.
IBA LETTER NO. PD/CIR/76/G(II)/1739 DATED 05-12-1995
Please refer to Regulations 39 and 40 of Bank (Employees’) Pension
Regulations, 1995 detailing the procedure for payment of family pension.
We enclose, for your information, a copy of Office Memorandum No. 1 (17) P & PW
/ 86-E dated 18th February, 1993, containing the guidelines applicable in Central
Government for settlement of terminal dues of employees whose whereabouts are
not known.
Member Banks may adopt the procedure laid down in Office Memorandum
dated 18.02.1993 for grant of family pension to the families of the employees
whose whereabouts are not known.
Letter No. 1 (17) - P & PW / 86-E dated 18-02-1993 of Govt. of India, Ministry
of Personnel, Public Grievances & Pensions (Department of Pension &
PW)
Subject : Grant of Family Pension and Gratuity to the families etc. of the
Government employees / pensioners who disappeared suddenly and
whose whereabouts are not known.
1. The undersigned is directed to refer to this Department’s O.M. No. 1 (17)
- P & PW / 86 dated 29.08.1986 read with Office Memorandum of the
same number dated 25.01.1991 on the subject mentioned above and to
say that in accordance with the provisions contained in these Office
Memoranda, the families of the employees/pensioners whose whereabouts
are not known are paid in the first instance, the amount of salary due,
leave encashment and the amount of GPF having regard to the nomination
made by the employees and after the lapse of a period of one year other
benefits like DCRG and family pension are also paid. The period of one
year is reckoned with reference to the date on which FIR is lodged with
the police about the disappearance of the concerned employee / pensioner.

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 At present, the family pension is sanctioned and paid to the eligible member
of the family one year after the date of registering the FIR with the police
and no family pension is paid for the intervening period of one year from
the date of FIR is lodged to the date and family pension can be sanctioned.
This practice is causing hardship to the families. It has now been decided
that the family pension, which, in pursuance of the earlier orders, will
continue to be sanctioned and paid one year after the date of lodging the
FIR will accrue from the date of lodging the FIR or expiry of leave of the
employee who has disappeared, whichever is later when the sanction for
family pension is issued, the payment of pension from the date of accrual
may be authorised. The usual procedure of obtaining the indemnity bond
etc., as laid down in the O.M. dated 29.08.1996 will continue to be followed.
While sanctioning payment of family pension, it will be ensured by the
concerned authorities that family pension is not authorised for any period
during which payment of pay & allowances in respect of the disappeared
employee has been made.

2. In their application to the persons serving in the Indian Audit and Accounts
Department, these orders are issued after consultation with the Comptroller
& Auditor General of India.

3. Ministry of Finance, Department of Expenditure etc., are requested to bring

it to the notice of all concerned.

4. Hindi version of this O.M. is enclosed.

3. OPTION FOR PENSION/WITHDRAWAL OF OPTION FOR PENSION/
NETTING
IBA Circular No. PD/CIR/76/G(II)/1831 Dt. 15-12-1995
Bank (Employees’) Pension Regulations, 1995
(A) Option for pension/withdrawal of option for pension
(B) Netting
Please refer to the above regulations sent under cover of our circular
letter No. PD/CIR/76/G(II)/993 dated 19th September, 1995.
We are receiving queries from member banks whether employees who
had earlier opted for pension can be permitted to withdraw the option
exercised earlier and whether facility of netting which was permitted to
employees who retired between 01-01-1986 and 31-10-1993 could also
be extended to employees who retired on or after 01-11-1993.

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 We have examined the matter and wish to advise as under :-
(A) OPTION
(1) Those who have already exercised option for pension and wish to
continue to be members of the pension scheme need not exercise
fresh option.
(2) Those who have not exercised option for pension and now wish to
become members of the pension scheme may exercise option within
the period stipulated in Regulation 3.
(3) Those who have exercised option for pension on or before
30-11-1994 and now wish to withdraw the option exercised for any
reasons, may be permitted to withdraw the same. However, option
exercised after 29-09-1995 in terms of Regulations 3 of Bank
(Employees’) Pension Regulations, 1995, shall be final and cannot
be revoked.
(B) NETTING
All employees, who retired from the services of the Bank on or after
01-01-1986 but before the “Notified Date” and eligible for pension in terms
of pension regulations and the families of such retired employees, who
are since deceased, may be permitted the facility of “netting’ as advised in
our circular letter No. PD/CIR/76/G(ii)/1846 dated 18-02-1995.
The above has the concurrence of the Government.
4. BANK (EMPLOYEES’) PENSION REGULATIONS, 1995 - DEFINITION OF
‘PAY’
IBA Circular No. : PD/CIR/76/G(II)/630 July 20, 1996
Regulation 2(s) of the Bank (Employees’) Pension Regulations, 1995 defines
‘pay’ in terms of scales of pay prevailing in the Banks prior to 01-11-1992.
The pay scales of the award staff were revised w.e.f. 01-11-1992 as per the
Sixth Bipartite Settlement dated 14-02-1995 and that of officer employees w.e.f.
01-07-1993 as per the Joint Note dated 23-06-1995. Consequently, the definition
of ‘pay’ in the Pension Regulations needs to be amended. We had taken up the
matter with the Banking Division, Ministry of Finance, Government of India.
We have now been advised by the Banking Division, Ministry of Finance that
pending amendments to the Pension Regulations, workmen employees, who
have retired on or after 01-09-1993 and officers who have retired on or after
01-05-1994 may be permitted to draw pension as per the Sixth Bipartite
263
 Settlement/Joint Note dated 23-06-1995, provided they have drawn pay for the
last ten months in terms of revised scales of pay. Public sector banks are
requested to note the above instructions and disburse pension in terms of revised
pay to eligible workmen/officers accordingly. A copy of Government of India
letter F. No. 4/8/14/96-IR dated 28th June 1996, in this regard is enclosed for
information and necessary action.
In the case of award staff and officer employees who had drawn salary during
the preceding ten months, both under the old and new scales of pay updation
formula for conversion of pay from old to the new scales of pay, is engaging the
attention of the Government. Till such time, in such cases banks may continue
payment on the basis of ‘pay’ as defined in terms of Regulations 2(s) of Bank
(Employees’) Pension Regulations, 1995.

5. PAYMENT OF PENSION TO RETIREES SETTLED OUTSIDE INDIA

IBA Circular No. PD/CIR/76/G(ii)/928 September 5, 1996

In terms of Regulation 53 of Bank (Employees’) Pension Regulations, 1995, all

pension admissible under the regulations shall be payable in rupees in India
only.

Some member banks had requested us to inform the procedure to be followed

where the retired employees settled outside India and desire to draw pension at
the place where they have settled. In terms of Central Treasury Rules applicable
to Central Government pensioners also there is no provision for payment of
pension outside India. However, the said rules provide for drawing pension in
such cases in India.

We had recommended to the Government to permit Public Sector Banks to

adopt the said procedure in such cases. The Government has since conveyed
its approval to the proposal of the IBA. Procedure laid down in Central Treasury
Rules, Volume I (Rules 345 and 347) on the subject matter reads as under:-
“A pensioner not resident in India may, draw his pension in India through
a duly authorised agent possessing a legally valid power of attorney, who
must produce a life certificate on each occasion unless the duly authorised
agent has executed an indemnity bond to refund over-payments in which
case he has to produce the life certificate at least once a year. However,
Pension will not be paid to such authorised agents for a period of more
than a year after the date of the life certificate last received, and the

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 disbursing officer shall be on the watch for authentic information of the
death of any such pensioner and on receipt thereof, shall promptly stop
further payments.”
Public Sector Banks may be guided accordingly while dealing with requests
from pensioners settled outside India for payment of pension

6. STRIKE CLAUSE

IBA Circular No. PD/CIR/76/G(ii)/943 September 7, 1996

Regulation 22(2) of the Bank (Employees’) Pension Regulation 1995 provides

that an interruption in the service of a bank employee entails forfeiture of his
past service, except in the cases mentioned therein.

Regulation 22(4) (b) of the Bank (Employees’) Pension Regulations, 1995 reads
as under:-

“(4) (b) Nothing in clause (a) shall apply to interruption caused by resignation,
dismissal or removal from service or for participation in a strike;

Provided that before making an entry in the service record of the

bank employee regarding forfeiture of past service because of his
participation in strike, an opportunity of representation may be given
to such bank employees”.

We are informed by the Banking Division, Ministry of Finance, Government of

India vide their letter F.No. 4/8/4/95-IR dated 26th August, 1996 that the question
of substituting the word ‘Strike’ by the words ‘illegal strike’ in Regulation 22(4)
(b) of Pension Regulations has been under consideration of the Government
and it has now been decided that necessary amendments be made to Regulation
2 and 22(4) (b) of the Pension Regulations, 1995, to substitute the word ‘strike’
by the words ‘illegal strike’. Further in regulation 2, additional sub-clause may
be added as under:-
Illegal Strike - Illegal strike shall have the same meaning as assigned to it in
Section 24 of the Industrial Dispute Act, 1947.
IBA has been advised to suggest draft of amendment to public sector banks in
this regard. We observe that few more Regulations also are required to be
amended due to revision in salary etc. We shall advise the banks to draft

265
 amendments in due course.
In the meanwhile, pending amendments to the Regulations 22(4) (b) of the
Pension Regulations the banks are advised to take note of the above.

7. REGULATION 29 OF BANK (EMPLOYEES’) PENSION REGULATIONS, 1995

- PENSION ON VOLUNTARY RETIREMENT - PL ENCASHMENT
IBA Circular No. PD/CIR/76/G(ii)/296 Dt. 31-05-1996
We have been receiving representations from Unions/Organisations regarding
grant of encashment of leave to employees who seek voluntary retirement under
Pension Regulations.
We had taken up the matter with the Government of India. The Government
has since clarified that in terms of Regulation 38 of the Officers’ Service
Regulations, Officer employees who seek voluntary retirement under Pension
Regulations on or after 1st November, 1993 may also be permitted encashment
of leave.
In view of the above, similarly workmen who seek voluntary retirement under
Pension Regulations on or after 1st November, 1993 may also be permitted
encashment of leave to the extent as provided in Clause 8 and Clause 9 of the
Bipartite Settlement dated 29th June, 1990.

8. IBA Circular No. PD/CIR/76/G(ii)/490 Dt. 19-6-1997

Please refer to our circular letter No. PD/CIR/76/G(ii)/630 dated 20th July, 1996
advising, among others, that updation formula in respect of those who have
drawn partly pre-revised and partly revised pay is engaging attention of the
Government.
We are now to advise that, after examination, the Government has decided that
for updation of Pension the pay plus dearness allowance, if any, actually drawn
in the pre-revised scales of pay during the last 10 months before retirement or
the dearness allowance upto 1148 points, whichever is less, may be treated as
pay for the purpose of calculation of pensionary benefits.
The banks may arrange for re-calculation of pension and commutation of pension
consequent upon updation of pension. and recoveries on account of excess
amount of pension already paid may be adjusted against the arrears of
commutation of pension payable. The banks may inform each pensioner giving
details of the arrears of commutation of pension payable and recoveries to be
effected from pension.

266
 A letter from the pensioner may also be obtained authorising the Bank/Pension
Trust to adjust the recoveries of pension against the arrears of pension.
If in any case the updation of pension on the above lines leads to a situation
where net recoveries are to be made from the Pensioners that the recovery in
such cases may be kept in abeyance until further advice. The banks may,
however, arrange to update pension and make regular payments accordingly.
We enclose, for your information, the following formats which the banks may
use with modifications wherever necessary:-
(1) Form of advice to be given to the pensioner (Annexure-D)
(2) Form of authorisation to be filled in by the pensioner for adjustment of
excess amount of pension and dearness relief thereon from the arrears of
commutation value of pension on account of updation of pension
(Annexure-E)
Pending amendments to the Pension Regulations, member banks are advised
to take note of the above.
9. ILLEGAL STRIKE - FORFEITURE OF PAST SERVICE
IBA Circular No. PD/CIR/76/G(ii)/1545 Dt. 02-01-1998
Amendment to regulation 22(4) (b) of Bank (Employees’) pension
regulations, 1995
Regulation 22(4) (b) of the Bank (Employees’) Pension Regulations, 1995 reads
as under:-
“(4) (b) Nothing in clause (a) shall apply to interruption caused by resignation,
dismissal or removal from service or for participation in a strike;
Provided that before making an entry in the service record of the
bank employee regarding forfeiture of past service because of his
participation in strike, an opportunity of representation may be given
to such bank employees.”
The Government of India, vide their letter F.No. 4/8/4/95-IR dated 26th August,
1996 had advised us of their decision that necessary amendments be made to
the Bank (Employees’) Pension Regulations, 1995 to substitute the word ‘strike’
by the words ‘illegal strike’ in Regulations No. 22(4) (b). We had vide our circular
letter No. PD/CIR/76/G(ii)/943 dated 7th September, 1996 advised the banks
to note of the above decision of Government of India pending amendments to
the Pension Regulations.
267
 We are now informed by the Government of India (Banking Division) that
after re-examination of the matter it has now been decided that the
provision for forfeiture of past service for participation in illegal strikes
may be deleted.
10. VOLUNTARY RETIREMENT UNDER BANK (EMPLOYEES’) PENSION
REGULATIONS
IBA Circular No. PD/KVK/85/G(ii)/2037 Dt. 04-01-1998
In terms of Regulation 29 of the Bank (Employees’) Pension Regulations, 1995,
on or after 1st November, 1993, an employee governed by Pension Regulations
and who has completed 20 years of qualifying service can seek voluntary
retirement subject to the terms and conditions mentioned in the Regulations.
The Settlement regarding Pension Scheme was signed with the Workmen Unions
and minutes was signed with Officers’ Organisation on 29th October, 1993
providing for introduction of Pension Scheme with effect from 1st November,
1993. Further, the Draft Pension Regulations was circulated and the serving
employees were asked to submit their option on or before 30th November,
1994. In terms of Regulation 3(9), such option exercised by the employees are
to be treated as “deemed option”. As the adoption of Pension Regulations took
sometime and finally adopted on 29th September, 1995, during the intervening
period some of the employees who had opted for pension sought voluntary
retirement in terms of Pension Scheme already circulated. However, the banks
did not accept the request of such employees for voluntary retirement at that
time taking a view that only after adoption of the Pension Regulations, voluntary
retirement under Pension Scheme can be considered.
In view of the above, such employees have resigned from the service of the
bank or voluntarily retired in terms of the service rules as applicable to them
with a request that as and when the Pension Scheme is implemented, their
cases may be considered for Pension under Voluntary Retirement Pension in
terms of Pension Regulations. We may mention here that in the case of workmen
employees, the Settlement entered into with the Unions under Industrial Dispute
Act is a binding Settlement and the employees get the benefits of the Settlement
from the date mentioned therein, 01-11-1993. Even in respect of officers, joint
minutes have been signed providing for Introduction of Pension Scheme with
effect from 01-11-1993. Therefore, we are of the view that wherever an
employee/officer had sought voluntary retirement under Pension Regulations
after 01-11-1993, and if such request has not been considered due to reasons
that Pension Regulations are yet to be adopted, the Bank may consider such

268
 cases for granting voluntary retirement Pension provided that the employees
concerned fulfil the requirements in terms of Regulation 29, Regulation 50, etc.
Such cases have to be considered afresh by the Banks upon receipt of request
from the employees with reference to the Pension Regulations, 1995.

11. PART TIME EMPLOYEES - REFUND OF PROVIDENT FUND IN NON

ELIGIBLE CASES
BANK (EMPLOYEES’) PENSION REGULATIONS, 1995 - PART TIME
EMPLOYEES
IBA Circular No. PD/CIR/76/G(ii)/1638 Dt. 19-01-1998
In terms of Regulation 14 of the Bank Employees’ Pension Regulations, 1995
an employee, who has rendered a minimum of ten years of service in the Bank
on the date of his retirement or the date on which he is deemed to have retired,
qualifies for pension.
Some of the public sector banks had referred to us cases of employees,
particularly of part-time employees drawing scale wages who had opted for
pension while in service but find themselves ineligible for pensionary benefits
on account of their failing to meet the required minimum qualifying service of
ten years. In view of the fact that the banks would have under normal
circumstances transferred the accumulated contribution to the Provident Fund
of the pension optees to the Pension Fund, such employees stand to forfeit the
bank’s contribution to Provident Fund in view of their ineligibility for pension.
We had taken up with the Government the matter of refund of bank’s contribution
to Provident Fund in such cases, as employees have a right to receive their
terminal benefits and the same cannot be forfeited other than under
circumstances provided for in the Bipartite Settlement/Pension Regulations/
Provident Fund/Pension Fund Rules.
We have since been advised by the Government that option for pension fund is
always subject to eligibility and any option from an ineligible person is void.
The transfer of fund in respect of ineligible persons to the pension fund is an
accounting error and is subject to correction. An employee cannot be put to
loss due to such error. The bank managements may therefore take back the
amount wrongly transferred from provident Fund to pension fund to rectify the
error. A copy of the Government of India, Ministry of Finance (Banking Division)
letter F.No. 4/8/11/97-IR dated 26th December, 1997 is enclosed.

269
 We request you to kindly take note of the above and act accordingly. We are
however to advise that the Banks may ensure that the rectification as suggested
by the Government does not have any tax implications to the Pension Fund.

12. REGULATION 39 OF BANK (EMPLOYEES’) PENSION REGULATIONS, 1995

- COMPUTATION OF FAMILY PENSION
IBA Circular No. PD/CIR/76/G(ii)/495 Dt. 28-07-1998
Pension/family pension, as the case may be, is payable to eligible retires/family
of the deceased employee or retired as per provisions of Regulation 35 or at
rates as in Appendix - III to Bank (Employees) Pension Regulations, 1995.
Some of the member banks have raised queries regarding computation of family
pension when it exceeds the pension authorised to the employee on his
retirement from service.
We had taken up the matter with the Government of India, Ministry of Finance
(Banking Division) who have since advised that in case of death of an employee
after retirement from service the amount of family pension payable shall be at
the enhanced rates as in sub-regulation (3) (a) (ii) of Regulation 39 i.e., at the
rate of fifty per cent of the pay last drawn or twice the amount of family pension
admissible at the ordinary rate, whichever is less, subject to the condition that
the amount of family pension drawn at the enhanced rate shall not exceed the
pension authorised to the employee on his retirement from service. If the pension
authorised to the employee on his retirement is less than the amount of family
pension at the ordinary rates, then the family shall be allowed family pension at
the ordinary rates.
Banks are advised to take note of the above while sanctioning/paying family
pension, pending amendments in the Pension Regulations.
13. BANK (EMPLOYEES’) PENSION REGULATIONS, 1995 - UPDATION OF
PENSION
IBA Circular No. PD/CIR/76/G(ii)/1109 Dt. 18-11-1998
Regulation 2(s) (a) of the Bank (Employees’) Pension Regulations, 1995 defines
‘pay’ in terms of scales of pay prevailing in the banks prior to 01-11-1993.
The pay scales of award staff were revised w.e.f. 01-11-1992 as per the
Sixth Bipartite Settlement dated 14-02-1995 and that of officer employees
w.e.f. 01-07-1993 as per the Joint Note date 23-06-1995.

270
 In the case of employees who had drawn salary during the preceding ten months
before retirement, both under old and new scales of pay, the banks were advised
to compute pension under the old scales of pay pending receipt of updation
formula. We had, vide our circular letter No. PD/CIR/76/G(ii)/490 dated 19-06-
1997, advised updation of pension in respect of these employees.
Subsequent to our above circular member banks received representations from
pensioners that consequent upon updation of pension they were receiving less
pension plus dearness relief vis-a-vis the pension plus dearness relief prior to
updation and that they should be permitted to opt to draw pension as drawn by
them before updation.
We had taken up the matter with the Government of India, Ministry of Finance
(Banking Division) who have since advised that such of those pensioners, who
find themselves drawing less pension plus dearness relief consequent upon
updation of their pension, may be given an option to draw pension including
commuted value of pensions as if they were drawing pay as per pre-revised
scales on the date of their retirement. Such employees will be entitled to
dearness relief as per the formula in existence before 01-11-1992 or 01-07-
1993 as the case may be and they will have to refund to the Pension Fund any
additional commuted value of pension which they had received consequent
upon updation of their pension in terms of our circular dated 19-06-1997.
Banks are advised to take note of the above, pending amendments in the Pension
Regulations.
14. FAMILY PENSION
IBA Circular No. PD/CIR/76/G(ii)/1492 Dt. 04-01-1999
Wherever a pensioner has opted to draw pension reckoning pre-revised scales
of pay and has been paid accordingly, family pension in his/her case will also
have to be arrived at by reckoning the pay that has been reckoned for arriving
at average emoluments for the purpose of pension.
Banks are advised to take note of the above, pending amendments in the Pension
Regulations.

15. BANK (EMPLOYEES’) PENSION REGULATIONS, 1995 - EMOLUMENTS TO

BE RECKONED FOR THE PURPOSE OF PENSIONARY BENEFITS IN THE
CASE OF ANY EMPLOYEE WHO IS ON DEPUTATION
IBA Circular No. PD/CIR/76/G(ii)/1521 Dt. 11-1-1999

271
 In terms of Regulations 25 of the Bank (Employees’) Pension Regulations, 1995,
the period of deputation of an employee to another organisation in India will
count as qualifying service provided the borrower organisation pays to the bank
the pensionary contributions at the rate of ten percent per month of the pay of
the employee or at the rates specified by the Bank at the time of deputation,
whichever is higher.
Basic pension is calculated as a percentage of average emoluments which is
determined with reference to the emoluments drawn by the employee during
the preceding ten months from the date of retirement.
One of the public sector banks had enquired about computation of basic pension
in respect of an officer employee who was deputed to another bank on a higher
scale and had retired on attaining the age of superannuation during the period
of deputation. The issue was whether for the purpose of arriving at average
emoluments (i) the pay actually drawn by the officer in the higher scale in the
loanee organisation/ bank or (ii) the substantive pay the officer would have
drawn but for his deputation, is to be reckoned.
We had taken up the matter with the Government of India, Ministry of Finance
(Banking Division) who have since advised that the substantive pay that an
officer would have drawn in the parent bank, but for his deputation, be taken as
the pay for calculating average emoluments for the purpose of pensionary
benefits and not the pay actually drawn by the officer in the higher scale in the
loanee organisation /bank.
16. DEARNESS RELIEF ON EX-GRATIA
IBA Circular No. PD/CIR/76/G(ii)/257 Dt. 17-05-1999
Please refer to the Government of India, Ministry of Finance (Banking Division)
letter F.No. 11/3/92-IR dated 26th November, 1998 addressed to Public Sector
Banks (other than State Bank of India) on the captioned subject.
In this connection, the Government of India, Ministry of Finance (Banking
Division) has since advised as under:
(1) The dearness relief on ex-gratia amount shall become payable for every
rise or fall of four points over 600 points in the quarterly average of the
Consumer Price Index.
(2) Employees who retired prematurely as per the provisions contained in the
Officers’ Service Regulations/Bipartite Settlement as well as the employees
who retired before nationalisation are eligible for ex-gratia payment.

272
 (3) Employees who were compulsorily retired or had taken voluntary retirement
before 01-01-1986 as also employees of erstwhile private sector banks
who retired prior to amalgamation with nationalised banks are not eligible
for exgratia payment.
AMOUNT OF EX-GRATIA

Government of India, Ministry of Finance, Department of Economic Affairs

(Banking Division) F.No. 11/3/92-IR Dt. 26-11-1998

A proposal for providing ex-gratia relief to surviving pre- 01-01-1986 retirees of the
banks had been under consideration of the Government for some time. It has now
been decided that banks may provide ex-gratia relief to all such employees who
retired on or before 31-12-1985, provided they had rendered at least twenty years of
continuous service prior to their superannuation and are not getting any pensionary
benefits from the bank. The ex-gratia may be paid w.e.f. 01-11-1997 at the rate of
300/- per month with dearness relief. The dearness relief on ex-gratia amount
shall become payable at the rate of 0.67% for every rise of four points over 600
points in the quarterly average of All India Working Class Consumer Price Index
(Base 1960 = 100). Dearness relief will be adjusted twice in a year, i.e. in the months
of February and August. The amount of ex-gratia relief together with dearness relief
thereon from 1st November, 1997 onwards shall be follows:

Period Applicable Amount Rate of Amount of Total ex-gratia

CPI average of dearness dearness amount
ex-gratia relief relief including D.R.
%
November 1997 1768 300 195.64 587 887
to January 1998
February 1998 1812 300 203.01 609 909
to July 1998
August 1998 1924 300 221.77 665 965
to January 1999
17. BANK (EMPLOYEES’) PENSION REGULATIONS, 1995 - REGULATION 18
- BROKEN PERIOD OF SERVICE OF LESS THAN ONE YEAR
IBA Circular No. PD/CIR/76/G2/797 Dt. 14-08-1999
In terms of Regulation 18 of the Bank (Employees’) Pension Regulations, 1995, if
the period of service of an employee includes broken period of service less than
one year, then if such broken period is more than six months, it shall be treated as
one year and if such broken period is six months or less it shall be ignored.
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 An employee becomes eligible for pension provided he has rendered a certain
minimum number of years of service. Whereas an employee becomes eligible
for superannuation pension or invalid pension or premature retirement pension
or compulsory retirement pension after he renders a minimum of ten years of
qualifying service, to be eligible for pension on voluntary retirement an employee
has to complete a minimum of twenty years of qualifying service.
We have been receiving queries from member banks as to whether employees
are eligible for pension or pension on voluntary retirement if after deducting
non-qualifying service from the total service the net qualifying service works out
to more than 9 years and 6 months or more than 19 years and 6 months, as the
case may be.
We had advised the Government of India, Ministry of Finance (Banking Division)
that to become eligible for pension, net qualifying service after deducting the
non-qualifying service from the total service, should be 20 years or more in
respect of those who voluntarily retire and 10 years or more in respect of others
and it is only for that part of the net qualifying service beyond 10 years or 20
years that the provision of Regulation 18 can be applied. The Government of
India, Ministry of Finance (Banking Division) has since conveyed their approval
to the above proposal and for amending Regulation 18 of Bank Employees’
Pension Regulations, 1995 by adding the following proviso:
“Provided that provisions of this regulation shall not be applied for determining
the minimum service required to make an employee eligible for pension”.

18. IBA Circular No. PD/CIR/76/G2/1136 Dt. 12-10-1999

In terms of sub-regulation (1) of Regulation 46 of the Bank (Employees’) Pension
Regulations, 1995 provisional pension is allowed to an employee who has retired
on attaining the age of superannuation or otherwise and against whom any
departmental or judicial proceedings are instituted or where departmental
proceedings are continued.
We have been receiving queries from banks seeking clarifications as to what
would constitute initiation/institution of department/judicial proceedings and what
shall be the relevant date/s for the purpose of sub-regulation (1) of Regulation 46.
We are to clarify that departmental proceedings shall be deemed to be instituted
on the date a notice is issued to the employee to show-cause why disciplinary
proceedings shall not be instituted against him or on the date on which statement
of charges is issued to the employee/pensioner or if the employee has been
placed under suspension from an earlier date, on such date. Judicial proceedings
shall be deemed to be instituted in the case of criminal proceedings, on the

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 date on which the complaint or report of a Police Officer, of which the Magistrate
takes cognisance, is made, and in the case of civil proceedings, on the date the
plaint is presented in the Court.

19. REQUEST BY FAMILY PENSIONERS TO DRAW MILITARY FAMILY

PENSION FOREGOING FAMILY PENSION UNDER THE BANK
(EMPLOYEES’) PENSION REGULATIONS, 1995
IBA Circular No. PD/CIR/76/G2/1218 Dt. 30-10-1999
We had taken up the matter with the Government of India, Ministry of Finance,
(Banking Division) who have after examining the matter in consultation with
Department of Pension and Pensioners’ Welfare advised that family members
of re-employed ex-servicemen entitled for family pension under the Bank
(employees’) Pension Regulations, 1995 are not eligible to draw family pension
from Government. It has been further clarified that for drawing family pension
from Government, the family members of such persons will have to forgo their
claims for payment of family pension from the Bank in accordance with the
provisions of sub-rule (13-B) of Rule 54 of the CCS (Pension) Rules.
Sub-rule (13-B) of Rule 54 of the Central Civil Services (Pension) Rules reads
as under:-
“Family pension admissible under this rule shall not be granted to a person who
is already in receipt of family pension or is eligible therefor under any other rules
of the Central Government or a State Government and/or Public Sector
Undertaking/Autonomous Body/Local Fund under the Central or a State
Government.
Provided that a person who is otherwise eligible for family pension under this
rule may opt to receive family pension under this rule if he forgoes family pension
admissible from any other service”.
In view of the above, a beneficiary of family pension who wishes to forgo his
family pension under the Bank (Employees’) Pension Regulations, 1995 in favour
of military family pension, may apply accordingly in writing to the Bank/Pension
Fund.
The Bank/Pension Fund may take the application on record and act accordingly.
Drawing a reference to his application a certificate to the effect that family pension
in terms of Bank (Employees’) Pension Regulations, 1995 is being stopped to
the beneficiary in view of his forgoing the same to enable him to draw military
family pension as required by sub-rule (13-B) of Rule 54 of Central Civil Services
(Pension) Rules may be issued to him.
In this regard, we are also to advise as under:-
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 (i) Family pensioners, if any, who are drawing family pension from the Bank
as well as from the Government may be advised of the extant provisions
in the CCS (Pension) Rules and asked to submit their option for pension
as suggested above. If the family pensioner desires to draw family pension
from the Bank, then the concerned PPO issuing authorities may be
informed accordingly. However, if the family pensioner desires to draw
family pension from the Government, then the Bank may take steps to
stop payment of family pension following the aforesaid procedure and
inform the concerned pension authorities.
(ii) On the death of the employee/pensioner the Bank may obtain from the
eligible family pensioner in writing his/her option to draw family pension
and act accordingly.
(iii) The spouse of the deceased employee would be forgoing only his/her
right to family pension under the Pension Regulations, 1995 and would
not be relinquishing the right of others in the family. Upon his becoming
ineligible for pension either due to re-marriage or death, the other eligible
beneficiaries in the family may still exercise their right to draw family pension
under the Regulations.

20. RELEASE OF PROVISIONAL PENSION

IBA Circular No. PD/CIR/76/G2/1655 Dt. 15-01-2000
In terms of Regulation 52 of the Bank (Employees’) Pension Regulation, 1995,
except in the case of an employee to whom the provisions of Regulation 43 and
Regulation 46 apply, a pension other than family pension shall become payable
from the date following the date on which an employee retires.
A number of instances had been brought to our notice in the recent past of
retirees demanding payment of interest for delayed disbursal of commuted value
of pension and/or commencement of pension payments to them. In most cases
the delay had been administrative in nature.
To avoid such claims in future and to ensure that the retirees are not
inconvenienced due to administrative delays, we had suggested to the
Government that a system of release of provisional pension may be put in place
to take care of cases where the Authority responsible for sanction of pension
feels that a delay in processing of the pension papers is inevitable.
The Government of India, Ministry of Finance (Banking Division), has since
conveyed its approval to our proposals and desired that guidelines as in the
enclosed annexure be issued to the banks so that pensioners are not put to

276
undue hardships on account of delay in disbursal of pensionary benefits. Banks
may please note and be guided accordingly.
Please note that these guidelines are issued under Regulation 52 of Bank
(Employees’) Pension Regulations, 1995 and as such do not necessitate any
amendments to the Regulations.
Annexure to Circular No. PD/CIR/76/G2/1655 dated January 15, 2000.
In terms of Regulation 52 of The Bank (Employees’) Pension Regulations, 1995,
except in the case of an employee to whom the provisions of Regulation 43 and
Regulation 46 apply, a pension other than family pension shall become payable
from the date following the date on which an employee retires. In view of this
the Authority responsible for the preparation of pension papers may undertake
the work of preparing the pension papers including verification of service details,
getting the required clearance from the disciplinary action cell/vigilance
department, etc. at least six months in advance of the date on which the employee
is due to attain the age of superannuation so that the retired employee gets his
pension immediately after completion of one month of retirement. In other
cases of retirement like voluntary retirement, retirement on invalid grounds,
premature retirement and compulsory retirement, the above process may be
got completed within a period of 3 months from retirement of the employees.
If, for any special reasons, it has not been found possible for the Pension Cell at
the Administrative Office to complete the formalities as mentioned hereinabove
within the prescribed time schedule in a particular case, steps may by taken by
the Competent Authority authorised to sanction pension in the case, to authorise
payment of provisional pension by the first of the month in which it is due. For
this purpose such information as is readily available in the official records may
be used. The retiring employee may be asked to submit a simple statement
giving his total length of service (from the date of joining duty to the date of
retirement excluding the periods of breaks and non-qualifying service, if any)
and also the emoluments drawn during the last ten months of service and certify
that the facts stated by him are correct to the best of his knowledge and belief.
The Authority may sanction 100% of the pension calculated with reference to
the information so obtained, as provisional pension. The provisional pension
so authorised would be subject to adjustments being made after issue of final
payment authority by the Authority responsible for doing so. The provisional
pension is not intended to be continued beyond a period of six months from the
date of retirement and as such the Pension Cells may ensure the pension payable
to the retiree is finalised before this deadline. The provisions as contained
above are intended to take care of cases of very special nature only and should
277
 not be made as a rule to be followed in all cases of retirement of employees.
The Competent Authority may, therefore, before sanctioning provisional pension
as above ensure that circumstances exist for a possible delay in the sanction of
final pension to the retiree within the prescribed time schedule.
21. GRANT OF EX-GRATIA TO SURVIVING PRE 01-01-1986 RETIREES
IBA Circular No. PD/CIR/76/G2/67 Dt. 17-04-2000
In terms of the Government of India, Ministry of Finance (Banking Division)
letter F.No. 11/3/92-IR dated 26th November, 1998 on the captioned subject,
employees who retired on or before 31-12-1985 and had rendered at least twenty
years of continuous service prior to their superannuation and were not getting
any pensionary benefits from the Bank were only eligible for ex-gratia relief.
We had taken up the matter with the Government of India, Ministry of Finance
(Banking Division) who have since advised that the service rendered by an
employee in the merged bank may be reckoned for computation of minimum
continuous service of twenty years for the purpose of ex-gratia provided
retirement had taken place after merger.

22. WAGE REVISION FOR AWARD STAFF - COMPUTATION OF PENSION

IBA Circular No. PD/CIR/76/G2/163 Dt. 03-05-2000
In terms of Clause 16 of Bipartite Settlement dated 27th March, 2000 in relation
to an employee who retires or dies while in service on or after the 1st day of
April, 1998 ‘pay’ for the purpose of Pension in terms of Regulation 2(s) of Bank
(Employees’) Pension Regulations, 1995 shall be the aggregate of the pay drawn
by the member of the award staff in terms of the Sixth Bipartite Settlement
dated 14th February, 1995 and the dearness allowance thereon calculated upto
index number 1616 points in the All India Average Consumer Price Index for
Industrial Workers in the series 1960 = 100. This shall be subject to the necessary
amendments to be made to the Bank (Employees’) Pension Regulations, 1995.
In this connection, we wish to clarify that pending amendment to Bank
(Employees’) Pension Regulations, 1995 in respect of all workmen employees
in the above cases, Banks may provisionally compute pension/family pension
on the basis of the average of the pre-revised pay drawn by the employees
during the last ten months of service in the Bank/last drawn pre-revised pay
respectively. In all such cases an undertaking may be obtained to enable the
Pension Fund to make suitable adjustments at the time the normal pension is
released. The Pensioner’s Family/Nominee, should also join in such undertaking.

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23. COMPUTATION OF PENSION CONSEQUENT UPON PAY REVISION OF
WORKMEN
IBA Cir. No. PD/CIR/76/G2/938 dated 4th September, 2000.
Your kind attention is invited to Clause 16 of the Bipartite Settlement signed
with the workmen unions on 27th March, 2000. It is provided therein that in
relation to an employee who retires or dies while in service on or after the 1st
day of April, 1998 “Pay” for the purpose of pension shall be the aggregate of the
pay drawn by the member of the award staff in terms of the Sixth Bipartite
Settlement dated 14th February, 1995 and the dearness allowance thereon
calculated upto index number 1616 points in the All India Average Consumer
Price index Numbers of industrial Workers (Base 1960 = 100).
Pay for the purpose of computation of pension would include basic pay, special
pay, officiating allowance/pay, special allowance/pay, graduation allowance/
pay, professional qualification allowance/pay and increment component of Fixed
Personal Allowance/Pay.
We have been receiving queries from member banks regarding computation of
pension in respect of workmen who have retired on or after the 1st day of April,
1998. We have to advise that the following procedure may be adopted for
computing the basic pension in these cases:
I. In respect of workmen who have retired on or after the 1st day of April,
1998 but on or before the 31st day of October, 1999.,
(a) The ‘pay’ as per Bipartite Settlements dated 14th February, 1995
and 14th December, 1996 (including the various components
mentioned in para 2 above) corresponding to the pay drawn as per
Bipartite Settlement dated 27th March 2000 and the increment
component of Fixed Personal Allowance drawn as per Bipartite
Settlement dated 14th February, 1995 during the preceding ten
months prior to retirement plus the dearness allowance thereon
calculated at 1616 points over 1148 points shall be reckoned for
computation of average emoluments.
(b) The above procedure may also be adopted in cases of workmen
who retired on or after the 1st day of April, 1998 but had during the
ten months prior to retirement drawn any of the components of pay
as per pre-revised and revised rates.
II. In respect of workmen who retire on or after the 1st day of September,
2000:-
(a) The pay as per Bipartite Settlements dated 14th February, 1995
and 14th December, 1996 (including various components of Pay

279
 mentioned in para 2.) corresponding to the pay drawn as per Bipartite
Settlement dated 27th March, 2000 during the preceding ten months
prior to retirement plus the dearness allowance thereon calculated
at 1616 points over 1148 points shall be reckoned for computation
of average emoluments.
(b) The above procedure may also be adopted in cases of workmen
who retired on or after the 1st day of November, 1999 but had during
the ten months prior to retirement drawn increment component of
Fixed Personal Allowance/Pay both as per pre-revised and revised
rates.
III. Such of those workmen, who had during the preceding ten months prior
to retirement, drawn any of the components of pay both under the
provisions of Sixth and Seventh Bipartite Settlement and find themselves
drawing less pension plus dearness relief consequent upon computation
of their pension as above, may be given an option to draw pension including
commuted value of pension as if they had drawn pay as per provisions of
Sixth Bipartite Settlement on the date of their retirement.
Such employees will be entitled to dearness relief as per rates in existence
before 01-04-1998. Where a pensioner has opted to draw and has been
accordingly sanctioned pension reckoning pre-revised pay, family pension
in his/her case will also have to be arrived at by reckoning the ‘pay’ that
has been reckoned for arriving at average emoluments for the purpose of
normal pension.
IV. Dearness relief on basic pension computed as above shall be as given in
Annexure - I to this circular.
V. The ordinary rates of family pension shall be as given in Annexure - II to
this circular.
VI. The amount of minimum pension shall be Rs. 1015.00 per month in respect
of a workman other than a part-time workman and Rs. 339.00 in respect
of a part-time workman who retires on or after 1st day of April 1998 and
in respect of whom pension has been computed as per paragraphs I and
II above.
The Banks may, pending amendments to Pension Regulations,
provisionally compute the pension as above. A suitable undertaking may
be obtained form the pensioners as well as from family members/nominees
to enable the Pension Fund to make adjustments, if any, at a later date.

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 ANNEXURE - I
DEARNESS RELIEF ON BASIC PENSION
In the case of employees who retire on or after the 1st day of April, 1998, dearness
relief shall be payable for every rise or be recoverable for every fall, as the case may
be, of every 4 points over 1616 points in the quarterly average of the All India Average
Consumer Price Index for Industrial Workers in the series 1960 = 100. Such increase
or decrease in dearness relief for every said four points shall be calculated in the
manner given below:-
Scale of basic pension The rate of dearness relief as a percentage
of basic pension
(1) (2)
(i) Upto 3380 0.25 per cent
(ii) 3381 to 5420 0.25 per cent of 3380 plus
0.21 per cent of basic pension in excess of
3380
(iii) 5421 to 5770 0.25 per cent of 3380 plus
0.21 per cent of the difference between 5420
and 3380 plus
0.12 per cent of basic pension in excess of
5420
(iv) Above 5770 0.25 per cent of 3380 plus
0.21 per cent of the difference between 5420
and 3380 plus
0.12 per cent of the difference between 5770
and 5420 plus
0.06 per cent of basic pension in excess of
5770

Notes:

(1) Dearness relief shall be payable for the half year commencing from the 1st day
of February and ending with 31st day of July on the quarterly average of the
index figures published for the months of October, November and December of
the previous year and for the half year commencing from the 1st day of August,
and ending with the 31st day of January on the quarterly average of the index
figures published for the months of April, May and June of the same year.

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(2) In the case of family pension, invalid pension and compassionate allowance,
dearness relief shall be payable in accordance with the rates mentioned above.
(3) Dearness relief will be allowed on full basic pension even after commutation.
(4) Dearness relief is not payable on additional pension.
(5) Pensioner whose basic pension is less than minimum pension but the aggregate
of basic pension and additional pension is more than the minimum pension
shall draw dearness relief as applicable to minimum pension.

ANNEXURE - II
The ordinary rates of family pension in respect of employees other than part-time
employees retiring on or after 01-04-1998 shall be as under:-

Scale of pay per month Amount of Monthly Family Pension

(1) (2)

Upto Rs. 4040 30 per cent of the ‘Pay’ shall be the basic family pension
plus 30 per cent of allowances which are counted for
making contributions to Provident Fund but not for
dearness allowance shall be the additional family
pension. The aggregate of basic and additional family
pension shall not be less than Rs. 1015 per month.

Rs. 4040 to Rs. 8080 20 per cent of the ‘Pay’ shall be the basic family pension
plus 20 per cent of allowances which are counted for
making contributions of Provident Fund but not for
dearness allowance shall be the additional family
pension. The aggregate of basic and additional family
pension shall not be less than 1212 per month.

Above Rs. 8080 15 per cent of the Pay shall be the basic family pension
plus 15 per cent of allowances which are counted for
making contributions to Provident Fund but not for
dearness allowance shall be the additional family
pension. The aggregate of basic and additional family
pension shall not be less than 1616 per month and
more than 3378 per month.
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Note:

(1) Dearness relief is not payable on additional family pension.

(2) In the case of part-time employees, the minimum amount of family pension and
maximum amount of family pension shall be in proportion to the rate of scale
wages drawn by the employee.

(3) In case the aggregate of basic family pension and additional family pension
falls short of minimum pension, the pensioner may be given minimum family
pension and dearness relief may be paid on such minimum family pension.
However, no additional family pension shall be payable over and above the
minimum family pension.

24. COMPUTATION OF AVERAGE EMOLUMENTS - RECKONING OF

DEARNESS ALLOWANCE AT 1616 POINTS
IBA Circular No. PD/CIR/76/G2/1106 dated 27-09-2000
Please refer to our circular letter Nos. PD/CIR/76/G2/937 and PD/CIR/76/G2/
938 both dated 4th September, 2000 containing the procedure to be followed
for computing the basic pension in respect of officers and award staff respectively,
who retire/die while in service on or after 01-04-1998.
In terms of the above, dearness allowance payable at 1616 points over 1148
points in the All India Average Consumer Price Index Numbers Industrial Workers
(Base 1960 = 100) has to be reckoned for arriving at the ‘Pay’ for the purpose of
pension. To facilitate this calculation we give herein below the rates for
calculating dearness allowance at CPI 1616 points on re-revised basic pay,
special pay, special allowance, graduation allowance, professional qualification
allowance, fixed personal allowance, etc.
(i) For pay upto 4800 : 40.95% of pay
(ii) For pay above 4800 to 7700 : 1965.60 plus 33.93% of pay
in excess of 4800
(iii) For pay above 7700 to 8200 : 2949.57 plus 19.89% of pay
in excess of 7700
(iv) For pay above 8200 : 3049.02 plus 10.53% of pay
in excess of 8200
The above rates were with reference to the confirmed All India Average

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 Consumer Price Index Number for Industrial Workers (Base 1960 = 100) for the
quarter ended June, 1996 which were as follows:
April, 1996 =1597.32
May, 1996 =1617.04
June, 1996 =1641.69
Member banks may please be guided accordingly.
25. AMENDMENTS TO PENSION REGULATIONS
IBA Circular No. PD/CIR/76/G2/1387 Dt. 5-2-2002
To the Designated Officers of Public Sector Banks (Other than SBI)
Kindly refer to our Circular No. PD/CIR/76/G2/1387 dated 23-1-2002 to which
we had enclosed a draft of the proposed amendments to the Pension Regulations
and the Gazette Notification to be issued in that behalf.
Since mailing the draft Notification to you we have come across some
discrepancy in the wordings of Sub-regulation (3) of Regulation 27. We give in
the Annexure the corrected version of Sub-Regulations (2) and (3) of Regulation
27 which will substitute item (e) on Page No. 5 of the Notification mailed earlier.
The corrections as in the Annexure are being advised with the prior approval of
the Government of India, Ministry of Finance (Banking Division).
We request you to take note and incorporate the corrections in the draft of the
Gazette Notification mailed to you under cover of our circular dated 23-1-2002.
(e) in Regulation 27, for sub-regulation (2), the following sub-regulations shall
be substituted, namely :
(2) For the purpose of calculating the amount of pension in respect of a part
time employee who was/is initially recruited on a lower scale wage and
later fitted on higher scale wages including full scale wages, the length of
qualifying service shall be determined in accordance with Appendix IV.
(3) In respect of part time employees who continue to be in the same scale
wages since their recruitment, for the purpose of calculating the amount
of pension, the actual service put in shall be taken as qualifying service. In
such cases the actual pay drawn on scale wages at the time of retirement
shall be reckoned for the purpose of average emoluments.
Note:
The actual service/qualifying service shall be calculated from the date of
recruitment or 1-9-1978, whichever is later”.;

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26. IBA Circular No. PD/CIR/76/G2/1524 Dt. 2-3-2002
Kindly refer to our circular letter No. PD/CIR/76/G2/1317 dated 23-1-2002 and
No. PD/CIR/76/G2/1387 dated 5-2-2002 conveying Government’s approval to
amendments to Pension Regulations.
Since advising the draft of the Gazette Notification carrying the amendments to
be issued by the banks, we have noticed the following typographical errors/
omissions.
1. in the amendment to sub-regulation(s) of Regulation 2 numbered as (a-
Para iii) in the explanation to clause (c) the words ‘Fixed Personal Pay’
should read as ‘Fixed Personal Allowance’.
2. in the amendment to Regulation 40 numbered “1”, under item (ii), in the
new sub-regulation (4) the following para should precede clause (a):
“(4) In case both wife and husband are employees of the Bank and are
governed by the provisions of this regulation and one of them dies while in
service or after retirement, the family pension in respect of the deceased
shall be payable to the surviving husband or wife and in the event of death
of the husband or wife, the surviving child or children shall be granted the
two family pension in respect of the deceased parents subject to the limits
specified below, namely.”
(a) ...........................................
(b) ...........................................
(c) ...........................................
(Please note that this para is as it exists now)
3. the amendments numbered ‘o’ to ‘t’ should respectively read as ‘n’ to ‘s’.
4. in the amendment numbered (t), the first line may be read as follows:
‘after Appendix IV, the following Appendix shall be inserted namely:
5. in Appendix V in Para 1(C), ‘Appendix-III’, should be read as ‘Appendix-II’.
6. in Appendix V, in Para 1(F) the word ‘if’ appearing before (D) should read
as ‘of’
We request you to take note of the above corrections while adopting the subject
amendments and publishing it in the Official Gazette.

285
27. IBA Circular No. PD/CIR/76/G2/1558 Dt. 7-3-2002
Please refer to our Circular Letter No. PD/CIR/76/G2/1317 dated 23-1-2002
and No. PD/CIR/76/G2/1387 dated 5-2-2002 and No. PD/CIR/76/G2/1524 dated
2-3-2002.
We are to advise that in Appendix-V to the amended regulations in Para 1(C),
the reference to ‘Appendix-III’ may be taken to read as ‘Appendix-I’. To this
extent our circulars dated 5-2-2002 and 2-3-2002 shall stand modified.
We now enclose 3 illustrations on updation of family pension/additional family
pension in respect of employees who were in service of the Bank on or after 1st
day of January 1986 and had died while in service on or before 31st day of
October, 1987 or had retired on or before the 31st day of October 1987 but
died.
Subordinate Staff
Computation of Family Pension in respect of employees retired/died while
in service between 1-1-1986 and 31-10-1987
1. Pay drawn by the deceased employee at the time of
death/ retirement : 850.00
2. Basic Family Pension at the ordinary rate as per Table
(15% of 850.00 with a minimum of 166.00
and maximum of 266.00) : 166.00
3. Updating of Basic Family Pension
(a) Basic Family Pension at ordinary rate plus : 166.00
(b) Dearness Relief on (a) above as per
Table I of Appendix-I : 133.46
(c) Updated Basic Family Pension (a+b) : 299.46
(d) Updated Basic Family Pension payable (rounded off to
next higher rupee) with a minimum of 375.00 : 375.00
4. Basic Family Pension at 12 times the updated basic family
pension, wherever applicable (i.e. 375.00 x 1.5 rounded
off to next higher rupee) : 563.00
5. Basic Family Pension at twice the updated basic family pension,
wherever applicable (i.e. 375.00 x 2 rounded off to next
higher rupee) : 750.00

286
 Clerical Staff
(Special Assistant)
Computation of Family Pension in respect of employees retired/died while
in service between 1-1-1986 and 31-10-1987
1. Pay drawn by the deceased employee at the time
of death / retirement : 1,850.00
2. Special Allowance drawn by the deceased employees
at the time of death/retirement : 456.00
3. Special Allowance counted for making contributions to
Provident Fund : 271.00
4. Basic Family Pension at the ordinary rate as per Table
(12% of 1850.00 with minimum of 266.00
and a maximum of 415.00) : 266.00
5. Updating of Basic Family Pension
(a) Basic Family Pension at ordinary rate plus : 266.00
(b) Dearness Relief on (a) above as per
Table I of Appendix-I : 178.22
(c) Updated basic family pension (a+b) : 444.22
(d) Updated Basic Family Pension payable (rounded off to
next higher rupee) with a minimum of Rs. 375.00 : Rs. 445.00
6. Basic Family Pension at 12 times the updated basic family
pension, wherever applicable (i.e. 444.22 x 1.5 rounded
off to next higher rupee) : 667.00
7. Basic Family Pension at twice the updated basic family pension,
wherever applicabble (i.e. 444.22 x 2 rounded off to next
higher rupee) : 889.00
8. Additional Family Pension at ordinary rate : 32.52
(i.e. 12% of 271.00)
9. Updated Additional Family Pension rounded off : 57.00
to next higher rupee (i.e. 12% of 473.00)
10. Updated Basic Family Pension : 445.00
11. Updated Additional Family Pension : 57.00
Note
Updated Additional Family Pension shall not rank for dearness relief.
287
 Computation of Family Pension in respect of employees retired/died while
in service between 1-1-1986 and 31-10-1987
Officer Staff
1. Pay drawn by the deceased employee at the time of
death / retirement : 2,875.00
2. Basic Family Pension at the ordinary rate as per Table
(12% of 2,875.00 with a minimum of 266.00
and maximum of 415.00) : 345.00
3. Updating of Basic Family Pension
(a) Basic Family Pension at ordinary rate plus : 345.00
(b) Dearness Relief on (a) above as per
Table I of Appendix-I : 227.70
(c) Updated basic family pension (a+b) : 572.70
(d) Updated Basic Family Pension payable (rounded off to
next higher rupee) with a minimum of 375.00 : 573.00
4. Basic Family Pension at 12 times the updated basic
family pension, wherever applicable (i.e. 572.70 x 1.5
rounded off to next higher rupee) : Rs. 860.00
5. Basic Family Pension at twice the updated basic family
pension, wherever applicable (i.e. 572.70 x 2
rounded off to next higher rupee) : 1,146.00
28. CALCULATION OF AVERAGE EMOLUMENTS FOR THE PURPOSE OF
PENSION - DETERMINATION OF THE LAST 10 MONTHS PERIOD FOR
ARRIVING AT AVERAGE EMOLUMENTS - IMPACT ON ACCOUNT OF
PARTICIPATION IN STRIKE WITH LOSS OF PAY.
IBAs Clarification No. PD/GSN/SBT/G2/276 dt. 22.05.2002
We are to inform you that subject matter was an issue for consideration before
the working Group of IBA which met on 18th April, 2000. The members of the
group after deliberating on the issue then decided that the participation in strike
during the last 10 months before retirement should not affect employee’s pension
for all time to come and as such the average emoluments for the purpose of
arriving at pension payable in such cases shall be calculated as given under
regulation 38(4) of Bank Employees’ Pension, 1995.
29. CALCULATION AND PAYMENT OF PENSION CONSEQUENT UPON THE
REDEFINITION OF ‘PAY’ IN BIPARTITE SETTLEMENT/JOINT NOTE DATED
02.06.2005
IBA circular No. PD/76/D/G2/2005-06/557 dated 28-06-2005
1. In terms of Clause 16 of the Bipartite Settlement dated 02.06.2005 relating
to workmen and Paragraph 6 of the Joint Note dated 02.06.2005 relating
288
 officers, in respect of an officer or a workman employee (herein referred
to as ‘employee’), who is a member of the pension fund and retiring/retired
from service or died while in service or otherwise ceased to be in
employment (hereinafter commonly referred to as retired/retirement) on
or after, 1.5.2005, ‘pay to be reckoned for the purpose of arriving at ‘average
emoluments’ for calculating pension shall be the ‘pay’ drawn by him prior
to his retirement/death. ‘Pay’ here will have the same meaning as in Clause
6 of the Bipartite Settlement dated 02.06.2005 and Note (2) below
Paragraph 6 of the Joint Note dated 02.06.2005.
2. In view of the foregoing, in respect of an employee retiring/retired on or
after 01.05.2005 for arriving at pension to be sanctioned, ‘average
emoluments’ for the purpose shall be calculated reckoning actual ‘pay’
drawn in terms of the Bipartite Settlement/Joint Note dated 02.06.2005.
3. As a consequence of the re-definition of ‘pay’ for the purpose of pension
as stated herein above and in view of the legal position obtaining in this
regard, pension already sanctioned and being paid to retirees of the period
1st April 1998 to 31st October 2002 and of the period 1st November 2002
to 30th April 2005 is to revised with reference to the new definition of pay
as referred to in Paragraph 1 above and pension so revised paid to them
with effect from 1st May 2005. On account of such revision of pension, no
arrears of pension and/or difference in commuted value of pension is
payable to the retirees of these periods.
4. Pension in respect of the retirees of the periods mentioned in paragraph
(3) above, shall be revised as per procedure detailed herein below:
I. In respect of an employee who retired during the period from 1st
November 2002 to 30th April 2005.
(a) If such retirement has taken place on or after 1st September
2003, i.e., after drawing ‘pay’ in the last 10 months of service
in terms of Bipartite Settlement/Joint Note dated 02.06.2005,
then ‘average emoluments’ for arriving at pension shall be
calculated reckoning ‘pay’ as in Bipartite Settlement/Joint Note
dated 02.06.2005.
(b) If such retirement has taken place on or after 1st November
2002 but on or before 31st August 2003, i.e., after drawing pay
in the last 10 months of service, both in terms of Joint Note
dated 14.12.99/Bipartite Settlement dated 27.03.2000 and
Bipartite Settlement/Joint Note dated 02.06.05, then revision
of pension shall be done as per example illustrated in Annexure
- I to this circular.

289
 II In respect of an employee who retired during the period from 1st
April 1998 to 31st October 2002-
(a) If such retirement had taken place on or after 01.09.98 in the
case of a workman and 01.02.99 in the case of an officer i.e.,
after drawing pay in the last 10 months of service in terms of
Bipartite Settlement dated 27.03.2000/Joint Note dated
14.12.99, then ‘average emoluments’ for arriving at pension
may be calculated reckoning ‘pay’ as in Bipartite Settlement
dated 27.03.2000/Joint Note 14.12.99.
(b) If such retirement has taken place during the period 01.11.97
to 31.08.98 in the case of workmen and during the period
01.04.98 to 31.01.99 in the case of officers i.e., after drawing
pay in the last 10 months of service, both the terms of the
Bipartite Settlement dated 14.02.95/Joint Note dated 23.06.95
and Bipartite Settlement dated 27.03.2000/Joint Note dated
14.12.99, then revision of pension in such cases may be done
as per example illustrated in Annexure - II to this circular.
In the Bipartite Settlement dated 27.03.2000, revision in Special Pay,
Graduation Pay and Personal Qualification Pay had taken place from 01.04.98
and of Fixed Personal Pay from 01.11.99. In cases falling under (a) and (b)
above, if an employee during the last 10 months of service, had drawn the
above components of ‘pay’ at rates obtaining prior to 01.04.98 or 01.11.99, as
the case may be, then for the purpose of calculating average emoluments,
the aggregate of such component of ‘pay’ with Dearness Allowance there on
at CPI 1684 points may be reckoned.
5. Dearness Relief on basic pension computed as above shall be at rates as
given in Annexure - III to this circular.
6. The ordinary rates of family pension shall be as given in Annexure-IV to
this circular.
7. The amount of minimum pension shall be as given in Annexure V to this
circular.
8. Pending amendments to Bank Employees’ Pension Regulations, 1995,
banks may compute pension as above. Before, however, giving effect to
the revised pension, a suitable undertaking may be obtained from the
pensioners, as well as from family members/nominees, to enable the
Pension Fund to make adjustments, if any, at a later date.

290
 ANNEXURE - I

Illustrative Example:

Computation of Pension in respect of a retiree (clerk retired on 31st March 2003) who
received ‘pay’ say, for 5 months as per Seventh Bipartite Settlement and for 5 months
as per Eighth Bipartite Settlement

1. ‘Pay’ drawn as per Seventh Bipartite Settlement during the

first 5 months of the last 10 months of qualifying service

Month of Service Pay ( )

1st (June, 2002) 8,980.00

2nd (July, 2002) 8,980.00
3rd (August, 2002) 8,980.00
4th (September, 2002) 8,980.00
5th (October, 2002) 8,980.00
TOTAL 44,900.00

2. Dearness Allowance actually drawn or dearness allowance at CPI 2288 points,

whichever is less, on ‘pay’ calculated at (1) above for each month

Month of Service DA at CPI DA actually

2288 points drawn

1st (June, 2002) 3140.80 (3224.00)

2nd (July, 2002) 3140.80 (3224.00)
3rd (August, 2002) 3140.80 (3348.00)
4th (September, 2002) 3140.80 (3348.80)
5th (October, 2002) 3140.80 (3348.80)
TOTAL 15,704.00

3. Total of ‘pay’ drawn as per (1) above 60,604.00 (A)

+ dearness allowances as per (2)
above for five months (i.e. 44,900 + 15,704)

4. ‘Pay’ drawn as per 8th Bipartite Settlement during the

last 5 months of qualifying service including the month
in which the employee retired (Increment from Feb. 2003)

291
 Month of Service Pay ( )

6th (November, 2002 13,210.00

7th (December, 2002) 13,210.00
8th (January, 2003) 13,210.00
9th (February, 2003) 13,770.00 (incl. FPP)
10th (March, 2003) 13,770.00 (incl. FPP)
TOTAL 67,170.00 (B)

5. Total of ‘pay’ drawn for the last

10 months, i.e. total of (A) & (B) 1,27,774.00 (C)

6. Average emoluments for the

purpose of pension, i.e., 12,777.40

Total as per (C) above

10

7. Updated Basic Pension

50% of (6) above x Number of years of

Qualifying Service
(max. 33 years)

33

i.e. ( 6388.70 x 33) 6,388.70

33

8. Basic Pension 6,389.00

(Rounded off to Rupee)

292
 ANNEXURE - II

Illustrative Example:
Computation of Pension in respect of a retiree (clerk) of the period 01.04.1998
to 31.12.2002 who received ‘pay’ say, for 4 months as per Sixth Bipartite
Settlement and for 6 months as per Seventh Bipartite Settlement.
1. ‘Pay’ drawn as per Sixth Bipartite Settlement during the
first 4 months of the last 10 months of qualifying service:

Month of Service Pay ( )

1st (July, 1997) 5500.00
2nd (August, 1997) 5500.00
3rd (September, 1997) 5500.00
4th (October, 1997) 5500.00
TOTAL 22,000.00
2. Dearness Allowance actually drawn or dearness allowance at CPI 1684 points
on ‘Pay’ calculated at (1) above for each month.
Month of Service DA at CPI DA actually
1684 points drawn
1st (July 1997) 2523.22 (2769.98)
2nd (August, 1997) 2523.22 (2846.92)
3rd (September, 1997) 2523.22 (2846.92)
4th (October, 1997) 2523.22 (2846.92)
TOTAL 10092.88
3. Total of ‘Pay’ drawn as per (1) above 32092.88 (A)
+ dearness allowance as per (2)
above for 4 months (i.e. 22,000 + 10092.88)
4. ‘Pay’ drawn as per Seventh Bipartite Settlement during the last 6 months of
qualifying service including the month in which the employee retired (increment
from January 1998)
Month of Service Pay ( )
5th (November, 1997) 8980.00
6th (December, 1997) 8980.00
7th (January, 1998) (Annual increment) 8980.00
8th (February, 1998) 8980.00
9th (March, 1998) 8980.00
10th (April, 1998) 8980.00
TOTAL 53,880.00 (B)
293
5. (a) FPP drawn as per Sixth Bipartite Settlement
during the period Jan. 98 to April 98
@ 230.00 x 4 920.00

(b) Dearness Allowance at 1684 points on FPP

as at (a) i.e., @ 107.87 x 4 431.48

(in the 7th Bipartite Settlement FPP got revised w.e.f. 01.11.99)
TOTAL 1,351.48 (C)

6. Total of ‘Pay’ drawn for the last 10 months

i.e., total of (A) – (B) & (C) 87,324.36 (D)

7. Average emoluments for the purpose of Pension, i.e.

Total as per (D) above

10 8,732.43

8. Updated Basic Pension

50% of (7) above x Number of years of

Qualifying Service
(max. 33 years)

33

i.e., ( 4366.21 x 33)

33 = 4,366.21

9. Basic Pension 4,366.00

(Rounded off to Rupee)

294
 ANNEXURE - III

DEARNESS RELIEF ON PENSION

PART A

On and from 01.05.2005, in the case of employees who retired during the period of
01.04.98 to 31.10.2002 dearness relief shall be payable for every rise or be recoverable
for every fall, as the case may be, of every 4 points over 1684 points in the quarterly
average of the All India Average Consumer Price Index for Industrial Workers in the
series 1960 = 100. Such increase or decrease in dearness relief for every said four
points shall be calculated in the manner given below:-

Scale of Basic The rate of dearness relief as a percentage

Pension per month of basic pension

(i) Upto 3,550 0.24 per cent

(ii) 3551 to 5,650 0.24 per cent of 3,550 plus 0.20 per cent of the
basic pension in excess of 3,550

(iii) 5,651 to 6,010 0.24 per cent of 3,550 plus 0.20 per cent of the
difference between 5,650 and 3,550 plus
0.12 per cent of basic pension in excess of
5,650

(iv) Above 6,010 0.24 per cent of 3,550 plus 0.20 per cent of the
difference between 5,650 and 3,550 plus 0.12
per cent difference between 6,010 and 5,650
plus 0.06 per cent of basic pension in excess of
6,010

PART B

In respect of employees who retire on or after 01.05.2005, dearness relief shall be

payable for every rise or be recoverable for every fall, as the case may be, of every
4 points over 2288 points in the quarterly average of the All India Consumer Price
Index for Industrial Workers in the series 1960 = 100, at the rate of 0.18 per cent of
basic pension.

Note:- In respect of retirees of the period 01.11.2002 to 30.04.2005, for whom pension
will be revised w.e.f. 01.05.2005 in terms of Paragraph 4(I) of this circular, dearness
relief shall be payable at 0.18 per cent of basic pension w.e.f. 01.05.2005.

295
 ANNEXURE - IV

Rates of Family Pension

PART A

In respect of employees (other than part - time employees) who retired during the
period from 01.04.1998 to 31.10.2002, on and from 01.05.2005, the ordinary rate of
family pension shall be as under:-

Scale of pay Amount of monthly family pension

per month

Upto 4,210 30 per cent of the ‘pay’ shall be the basic family
pension plus 30 per cent of allowances which are
counted for making contributions to Provident Fund
but not for dearness allowance shall be the additional
family pension. The aggregate of basic and additional
family pension shall not be less than 1,056 per
month.

4,210 to 8,420 20 per cent of the ‘pay’ shall be basic family pension
plus 20 per cent of allowances which are counted for
making contributions to Providend Fund but not for
dearness allowance shall be the additional family
pension. The aggregate of basic and additional family
pension shall not be less than 1,262 per month.

Above 8,420 15 per cent of the ‘pay’ shall be the basic family
pension plus 15 per cent of allowances which are
counted for making contributions to Provident Fund
but not for the dearness allowance shall be the
additional family pension. The aggregate of basic and
additional family shall not be less than 1687 per
month and more than 3,521 per month.

296
 PART B

In respect of employees (other than part - time employees) who retired/retires from
service on or after 01.05.2005, the ordinary rate of family pension shall be as under:-

Scale of pay Amount of monthly family pension

per month

Upto 5,720 30 per cent of the ‘pay’ shall be basic family pension
plus 30 per cent of allowances which are counted for
making contributions to Provident Fund but not for
dearness allowance shall be the additional family
pension. The aggregate of basic and additional family
pension shall not be less than 1,435 per month.

5,720 to 11,440 20 per cent of the ‘pay’ shall be basic family pension
plus 20 per cent of allowances which are counted for
making contributions to Provident Fund but not for
dearness allowance shall be the additional family
pension. The aggregate of basic and additional family
pension shall not be less than 1,715 per month.

Above 11,440 15 per cent of the ‘pay’ shall be the basic family
pension plus 15 per cent of allowances which are
counted for making contributions to Provident Fund
but not for the dearness allowance shall be the
additional family pension. The aggregate of basic and
additional family pension shall not be less than
2,292 per month and more than 4,784 per
month.

Note:- (i) Family pension in respect of employees who retired or died while in service
on or after 01.11.02 but before 30.04.05 shall also be revised in terms of Part B
above with effect from 01.05.2005. (ii) In the case of part-time employees, the minimum
amount of family pension and the maximum amount of family pension shall be in
proportion to the rate of scale wages drawn by the employee.

297
 ANNEXURE - V

MINIMUM PENSION - WITH EFFECT FROM 01.05.2005

(a) In respect of employees, other than part - time employees, who retired on or
after 01.04.1998 but before 31.10.02, the amount of minimum pension shall be
1,060 p.m. In respect of part-time employees who retired during this period,
the minimum pension payable shall be 355 p.m. in respect of part-time
employees drawing 3 scale wages, 530 p.m. in respect of part - time drawing
2 scale wages and 795 p.m. in respect of part-time employees drawing
w scale wages.
(b) In respect of employees, other than part time employees, who retired on or
after 01.05.2005, the amount of minimum pension shall be 1,435 p.m. In
respect of part-time employees, who retired on or after 01.05.2005, the minimum
pension payable shall be 480 p.m. in respect of part - time employees drawing
3 scale wages, 720 p.m. in respect of part - time employees drawing
2 scale wages and 1,080 p.m. in respect of part - time employees drawing w
scale wages.

Note:- Minimum pension being paid to retirees of the period 01.11.02 to 30.04.05
may also be revised with effect from 01.05.2005 with reference to paragraph
(b) above.

30. PENSION FOR EMPLOYEES RETIRED BETWEEN 01.11.2007 & 31.07.2008

IBA circular No. CIR/HR & IR//G-2/2010-11/1502 Dtd. 13.10.2010

Pay for the purpose of Pension in terms of Bank Employees’ Pension
Regulations.
In terms of Clause 16 of the Bipartite Settlement dated 02.06.2005 relating to
workmen and Para 6 of the Joint Note dated 2.6.2005 relating to Officer
employees, w.e.f. 1st May 2005 ‘pay’ to be reckoned for the purpose of arriving
at “average emoluments’ for calculating pension shall be pay drawn by him
prior to his retirement / death. Pay for the purpose will have the same meaning
as in Clause 6 of the Bipartite Settlement dated 02.06.2005 and Note(2) of
paragraph 6 of Joint Note dated 2.6.2005.
We have been receiving queries from Banks as to how the average emoluments
of employees retired from 1st November 2007 to 31st July 2008 has to be
arrived at as these employees were governed by the pay scales prevalent during
01.11.2002 to 31.102.007 and 1.11.2007 onwards during the 10 months
preceding their retirement.
298
The calculation of average emoluments and basic pension in respect of the
employees retired between 01.11.2007 and 31.07.2008 is as given in Annexure A.
This adjustment is required as the employees who retired from services on or
after 01.11.2007, the Dearness Relief they will be getting alongwith Basic Pension
shall be the Dearness Relief payable over and above 2836 points in the All
India CPI 1960=100.
(Enclosure to Circular No. CIR/HR & IR/G2/2010-11/1502 dated October
13, 2010)
Computation of Average Emoluments for calculating pension of employees
retired between 01.11.2007 to 31.07.2008 for the preceding 10 months of
retirement.
(Model Calculation for an officer employee retired on 31.3.2008 having 33 years
of qualifying service with Basic Pay of 30,600/- as on the date of retirement)

(Rs)
1. For the period of service prior to 1.11.2007
(i.e., from 1.6..2007 to 31.10.2007 (5 months)
(a) ‘Pay’ as in Bipartite Settlement / Joint Note dated
02.06.2005 21660x5 = 108300.00
(b) Dearness Allowance payable @0.18% for every
slab of 4 points over and above the Index numbers
2288 points and upto 2836 points in All India CPI
1960=100 5341.35x5=26706.75
Total of (a) and (b) above 135006.75...... (A)
2. For the service rendered on or after 1.11.2007
upto the date of retirement (5 months)
(a) Pay as in Bipartite Settlement/Joint Note
dated 2.6.2005 30600xx5 = 153000.00 ......(B)
Total of (A) and (B) 288006.75 ........(C)
3. Average emoluments for the preceding 288006.75 = 28800.00 ....(D)
10 months of retirement 10
4. Basic Pension in terms of Regulation 35(2) of the = 50% of 28800 x 33 =14400.00
Bank Employees’ Pension Regulations 33

299
Note:
Calculation of Basic Pension for Employees/officers retired between
November 2007 and July, 2008
(Refer AIBEA Cir. No. 26/79//2010/29 dated 16.10.2010)
Since Basic Pension is calculated on the basis of Average Pay of last 10 months,
there have been queries about calculation of Basic Pension of employees/officers
who have retired between November, 2007 to July, 2008 in whose case the
last 10 months service covers emoluments both under pre-revised pay scales
as well as revised pay scales.
IBA has issued its Circular No. 1502 dated 13-10-2010 clarifying the method by
which the Basic Pension has to be arrived at in such cases of retirees.
Accordingly, while for the period from November, 2007, the revised Pay will be
taken, for the months covered by pre-revised scales, the Pay will be notionally
taken as actual pay under old pay scales + DA thereon at 2836 poins (i.e.
24.66%)
Example: A Special Assistant who retired on 30-11-2007 with 38 years of
service (Graduate /CAIIB with all stagnation increments)
As per 8th BPS As per 9th BPS
a) Basic Pay 16,570 23,900
b) Special Pay 1,600 2,180
c) PQP 900 1,230
d) FPP (Pay portion) 560 800
e) Total Pay 19,630 28,110
f) DA at 2836 pts @ 24.66% 4,840.76
g) Notional Pay 24,470.76
CALCULATION OF AVERAGE PAY / BASIC PENSION:
A) Pay for the period from Feb. 2007 to October, 2007
(for 9 months) 24470.76 x 9 2,20,236.84
B) Pay for the month of Nov. 2007 (1 month) 28,100.00
Total for 10 months 2,48,346.84
Average Pay 24,834
Basic Pension (50% of Average Pay) 12,417
Note: For those who have retired from August, 2008 onwards, the entire period
of last 10 months falls under 9th BP settlement and hence for the entire
10 months, revised Pay under 9th BPS is taken

300
REVISION IN PENSION / COMMUTATION:
For the Employees who have retired during the said period i.e., November,
2007 to July, 2008, the pension/commutation amount will be revised based on
the above formula.
Example : (of the aboove case)
Old Revised
Average Pay 19,630 24,834
Basic pension 9,815 12,417
Commutation (at factor 9.81) 3,85,140 4,87,243

301
 CHAPTER - XXX
PENSION UNDER 8TH BIPARTITE SETTLEMENT
RECORD NOTE OF DISCUSSIONS HELD ON VARIOUS DATES BETWEEN
INDIAN BANKS’ ASSOCIATION REPRESENTING MEMBER BANKS AND
AUTHORISED REPRESENTATIVES OF WORKMEN UNIONS AND OFFICERS’
ASSOCIATIONS IN THE MATTER OF PENSION
Issues relating to costing of pension for the purpose of wage revision in case of
serving employees and redefining pay for the purpose of pension at 50% of the Pay
last drawn, were discussed in detail and understandings reached as herein below:
1. PAY FOR PENSION
● In respect of an employee retiring on or after 01.05.2005, “average
emoluments” as defined in Pension Regulations for the purpose of pension,
be calculated reckoning pay last drawn during the last ten months of the
employees’ service in the Bank.
● Since this is an improvement over the existing provisions, in view of the
legal decisions obtaining in the matter, the pension of retirees of the period
01.04.1998 to 30.04.2005 is to be re-fixed with effect from 01.05.2005
reckoning actual ‘Pay’ drawn by them prior to retirement, i.e. during the
last ten months of service in the Bank.
● Accordingly, the pension of retirees of the period 01.04.1998 to 31.10.2002
will be re-fixed with effect from 01.05.2005 as per ‘pay’ as defined in Clause
6 of 7th Bipartite Settlement dated 27th March 2000 and Note under Clause
5 of the Joint Note dated 14th December 1999 (Refer Annexure).
● The pension of retirees of the period 01.11.2002 to 30.04.2005 will be
refixed with effect from 01.05.2005 as per ‘pay’ as defined in Clause 6 of
8th Bipartite Settlement dated 2nd June, 2005 and Note (2) under Clause
6 of the Joint Note dated 2nd June, 2005 (Refer Annexure).
● These retirees between 01.04.1998 and 30.04.2005 will have their pension
re-fixed accordingly w.e.f. 01.05.2005 but no arrears of pension and
commuted value of pension is payable on account of such re-fixing of
pension.
●l The total cost to banks on account of such re-fixation in respect of retirees
of the period 01.11.2002 to 30.04.2005 will be costed and taken together
with the additional cost of pension in respect of serving employees who
are members of the Pension Fund.
302
 ● In respect of retirees of the period 01.04.1998 to 31.10.2002, the additional
cost on account of re-fixation shall be shared equally between the banks
and the employees (officers and workmen), reckoning the annual additional
cost which has been determined at 62 crores.
2. COSTING OF PENSION
In the last wage revision settlement, the additional cost of pension to banks was
reckoned at 16.5% of the pensionable pay of each member of the Fund and for
the purpose of wage revision, the additional cost to banks on account of increase
in pay was shared equally between banks and employees at 8.25% of
pensionable pay. During the period since then, influenced by market factors,
the cost of pension to banks had gone up and IBA had placed the additional
cost of pension to banks at 20.5% of the pensionable pay. Following the
procedure adopted in the last wage revision, this would have meant sharing the
total cost at 10.25% each by both the parties. While the Unions/Associations
were not agreeable for any increase in the additional costing more than 8.25%,
however, after detailed discussions, it was agreed to reckon the total cost over
and above 16.5% to be borne by the employees (Officers and Workmen) at
36 crores p.a. This would translate to the employees sharing the incremental
additional cost at 9.25% of pensionable pay and the banks bearing the cost of
the remaining 11.25%.
(Record note was signed on 22nd June, 2005)
ANNEXURE TO RECORD NOTE DATED 22-06-2005
A. WORKMEN
(1) Clause 6(ii) of 7th Bipartite Settlement dated 27th March, 2000.
“In supersession of Clause 12 of the Bipartite Settlement dated 14th
February, 1995 and Clause 1 of the Bipartite Settlement dated 14th
December, 1996, ‘Pay’ for the purpose of D.A., HRA and Superannuation
benefits shall mean Basic Pay, Stagnation Increments, Special Pay,
Graduation Pay, Professional Qualification Pay and Officiating Pay, if any”.
(2) Clause 6 of the 8th Bipartite Settlement dated 2nd June, 2005.
“ ‘Pay’ for the purpose of D.A., HRA and Superannuation benefits shall
mean Basic Pay, Stagnation Increments, Special Pay, Graduation Pay,
Professional Qualification Pay and Officiating Pay, if any”.
Note:
The increment components of Fixed Personal Pay as given in column 2,
Schedule III shall rank for superannuation benefits.

303
IMPROVEMENT IN PENSION PAYMENT

PERIOD OF PENSION PAID AT PRESENT PENSION TO BE REVISED AS

RETIREMENT
April, 1998 to 1) Pension is paid at 50% of 1) Pension will now be
October, 2002 the pay as per 6th BPS refixed at 50% of the pay
(7th BPS period) plus DA upto 1616 points as per 7th BPS. Hence
(Note: This comes to about there will be increase in
43% of the 7th BPS Pay) the Basic Pension of
these retirees
2) DA is paid over 1616 2) DA will be paid over 1684
point at 0.25, 0.20, 0.12% points at 0.24, 0.20, 0.12%
3) This revised pension will
be paid from May, 2005
and no arrears of pension
or commutation will be
paid prior to that period.
November, 2002 1) Pension is paid at 50% 1) Pension will be refixed
to April, 2005 of the pay as per 6th BPS at 50% of the Pay as per
(8th BPS period) plus DA upto 1616 points 8th BPS
(Note: This comes to about 2) DA will be paid over 2288
43% of the 7th BPS Pay) points at 0.18% per slab
2) DA is paid over 1616 on entire pension
points at 0.25, 0.20, 0.12% This revised pension will be
paid from May, 2005 and no
Arrears on pension or
commutation will be payable.
From May, 2005 Will be Drawing 8th Bipartite 1) Pension will be fixed at
onwards Basic Pay and hence will be 50% of the pay as per
paid pension at 50% of 8th 8th BPS.
BPS basic pay 2) DA will be paid over 2288
points at 0.18% per slab
on entire pension
3) Commutation will be
payable as per the new
eligible pension as per
8th BPS.

304
Some examples which will explain the significance of the improvements are given
below:

(A) FOR PENSIONERS RETIRED FROM MAY, 2005:

In terms of Clause 16 of the 8th BPS, Pension for the employees who retire from the
Banks from May, 2005 onwards will be calculated at 50% of the new Pay under the
8th BPS. Pay will include, Basic Pay including Stagnation increments, Special Pay,
Professional Qualification Pay/Graduation Pay, Officiating Pay and increment portion
of Fixed Personal Pay.

Example (1) : A Special Asst./Graduate, CAIIB (60 years) at max. of Pay scales
with 6 Stagnation increments retiring on 30th June, 2005

Basic pay - 26th stage with 6 Stagnation increment 16570

Special Pay 1600
PQP 900
FPP (Increment component) 560
Total Pay 19,630
BASIC PENSION at 50% of Pay 9815
COMMUTATION of 3 pension - (9815 By 3 x 9.81 x 12) 3,85,140
Balance Monthly Pension 6543
DA on Rs. 9815 over 2288 points i.e., 13.14% for July, 05 1290
TOTAL PENSION FOR THE MONTH OF JULY, 2005 7,833

Example (2) : A Daftary (60 years) at max. of Pay scales with 6 Stagnation
increments retiring on 30th June, 2005:

Basic pay - 26th stage with 6 stagnation increment 9180

Special Pay 505
FPP (Increment component) 270
Total Pay 9955
BASIC PENSION at 50% of Pay 4977
COMMUTATION of 3 pension - (4977 by 3 x 9.81 x 12) 195,300
Balance Monthly pension 3318
DA on Rs. 4977 over 2288 points i.e. 13.14% for July, 05 654
TOTAL PENSION FOR THE MONTH OF JULY, 2005 3,972

305
(B) FOR THOSE WHO RETIRED BETWEEN APRIL, 1998 AND OCTOBER, 2002
In terms of the Minutes signed with the IBA, those who have retired between
April, 1998 and October, 2002 under the 7th BPS period, pension will be refixed w.e.f.
01-05-2005 as per Pay actually drawn by them under the 7th BPS. But no arrears of
pension or commuted value of pension will be payable on account of such refixation.
Example (3) : A Substaff at Max. who has retired on Jan. 2002

Basic pay on retirement under 7th BPS 5850

Pay for pension - 6th BPS basic plus DA at 1616 5088
Therefore basic pension fixed at 50% of 5088 instead of 5850 2544
(which comes to 43% of 5850)
He is given DA on this over 1616 points
DA for the month of May, 2005 @ 60.25% 1533
Pension plus DA for the month of May, 2005 4077
NOW THIS WILL BE REVISED FROM MAY, 2005 AS UNDER
Basic Pension at 50% if 5850 2925
DA on this over 1684 @ 53.76% 1572
Total of revised Pension plus DA for May, 2005 4497
INCREASE IN PENSION FOR MAY, 2005 420

Example (4) : A Clerk at Max. who has retired in Jan. 2002

Basic Pay on retirement under 7th BPS 10880

Pay for Pension - 6th BPS Basic Plus DA at 1616 9431
Therefore basic pension fixed at 50% of 9431 instead of 4716
10880 (which comes to 43% of 10880)
He is given DA on this over 1616 points
DA for the month of May, 2005 @ 60.25% 2712
Pension plus DA for the month of May, 2005 7428
NOW THIS WILL BE REVISED FROM MAY, 2005 AS UNDER
Basic Pension at 50% of 10880 5440
DA on this over 1684 @ 53.76% & 44.80% 2755
Total of revised pension plus DA for May, 2005 8195
INCREASE IN PENSION FOR MAY, 2005 967

306
(C) FOR THOSE WHO RETIRED BETWEEN NOV. 2002 AND APRIL, 2005
In terms of the Minutes signed with the IBA, those who have retired between
November, 2002 and April, 2005 under the 8th BPS period, pension will be refixed w.e.f.
01-05-2005 as per Pay payable to them under the 8th BPS. But no arrears of pension
or commuted value of pension will be payable on account of such refixation.
Example (5) : A Clerk at Max. who has retired in November, 2002
Basic pay on retirement under 7th BPS 10880
Pay for Pension - 6th BPS Basic Plus DA at 1616 9431
Therefore Basic Pension fixed at 50% of 9431 instead of 4716
10880 (which comes to 43% of 10880)
He is given DA on this over 1616 points
DA for the month of May, 05 @ 60.25/50.61% 2712
Pension Plus DA for the month of May, 2005 7428
NOW THIS WILL BE REVISED FROM MAY, 2005 AS UNDER
Revised Basic Pay from November, 2002 16570
Basic Pension at 50% of 8th BPS Basic 8285
DA on this over 2288 pts. @ 13.14% 1088
Total of Revised Pension Plus DA for May, 2005 9,373
INCREASE IN PENSION FOR MAY, 2005 1,945
Example (6) : A Substaff at Max. who has retired in November, 2002
Basic Pay on retirement under 7th BPS 5850
Pay for Pension - 6th BPS Basic Plus DA at 1616 5088
Therefore Basic Pension fixed at 50% of 5088 instead of 5850 2544
(which comes to 43% of 5850)
He is given DA on this over 1616 points
DA for the month of May, 2005 @ 60.25% 1533
Pension plus DA for the month of May, 2005 4077
NOW THIS WILL BE REVISED FROM MAY, 2005 AS UNDER
Revised Basic Pay from November, 2002 9180
Basic Pension at 50% of 8th BP Basic 4590
DA on this over 2288 @ 13.14% 603
Total of Revised Pension Plus DA for May, 2005 5193
INCREASE IN PENSION FOR MAY, 2005 1116
307
CALCULATION AND PAYMENT OF PENSION CONSEQUENT UPON THE
REDEFINITION OF ‘PAY’ IN BIPARTITE SETTLEMENT/JOINT NOTE DATED
02.06.2005
IBA circular No. PD/76/D/G2/2005-06/557 dated 28-06-2005
In terms of Clause 16 of the Bipartite Settlement dated 02.06.2005 relating to workmen
and Paragraph 6 of the Joint Note dated 02.06.2005 relating officers, in respect of an
officer or a workman employee (herein referred to as ‘employee’), who is a member
of the pension fund and retiring/retired from service or died while in service or otherwise
ceased to be in employment (hereinafter commonly referred to as retired/retirement)
on or after, 1.5.2005, ‘pay to be reckoned for the purpose of arriving at ‘average
emoluments’ for calculating pension shall be the ‘pay’ drawn by him prior to his
retirement/death. ‘Pay’ here will have the same meaning as in Clause 6 of the Bipartite
Settlement dated 02.06.2005 and Note (2) below Paragraph 6 of the Joint Note dated
02.06.2005.
2. In view of the foregoing, in respect of an employee retiring/retired on or after
01.05.2005 for arriving at pension to be sanctioned, ‘average emoluments’ for
the purpose shall be calculated reckoning actual ‘pay’ drawn in terms of the
Bipartite Settlement/Joint Note dated 02.06.2005.
3. As a consequence of the re-definition of ‘pay’ for the purpose of pension as
stated herein above and in view of the legal position obtaining in this regard,
pension already sanctioned and being paid to retirees of the period 1st April
1998 to 31st October 2002 and of the period 1st November 2002 to 30th April
2005 is to revised with reference to the new definition of pay as referred to in
Paragraph 1 above and pension so revised paid to them with effect from 1st
May 2005. On account of such revision of pension, no arrears of pension and/
or difference in commuted value of pension is payable to the retirees of these
periods.
4. Pension in respect of the retirees of the periods mentioned in paragraph (3)
above, shall be revised as per procedure detailed herein below:
I. In respect of an employee who retired during the period from 1st November
2002 to 30th April 2005.
(a) If such retirement has taken place on or after 1st September 2003, i.e.,
after drawing ‘pay’ in the last 10 months of service in terms of Bipartite
Settlement/Joint Note dated 02.06.2005, then ‘average emoluments’ for
arriving at pension shall be calculated reckoning ‘pay’ as in Bipartite
Settlement/Joint Note dated 02.06.2005.
308
 (b) If such retirement has taken place on or after 1st November 2002 but on
or before 31st August 2003, i.e., after drawing pay in the last 10 months of
service, both in terms of Joint Note dated 14.12.99/Bipartite Settlement
dated 27.03.2000 and Bipartite Settlement/Joint Note dated 02.06.05, then
revision of pension shall be done as per example illustrated in Annexure -
I to this circular.

II In respect of an employee who retired during the period from 1st April
1998 to 31st October 2002-

(a) If such retirement had taken place on or after 01.09.98 in the case of a
workman and 01.02.99 in the case of an officer i.e., after drawing pay in
the last 10 months of service in terms of Bipartite Settlement dated
27.03.2000/Joint Note dated 14.12.99, then ‘average emoluments’ for
arriving at pension may be calculated reckoning ‘pay’ as in Bipartite
Settlement dated 27.03.2000/Joint Note 14.12.99.

(b) If such retirement has taken place during the period 01.11.97 to 31.08.98
in the case of workmen and during the period 01.04.98 to 31.01.99 in the
case of officers i.e., after drawing pay in the last 10 months of service,
both the terms of the Bipartite Settlement dated 14.02.95/Joint Note dated
23.06.95 and Bipartite Settlement dated 27.03.2000/Joint Note dated
14.12.99, then revision of pension in such cases may be done as per
example illustrated in Annexure - II to this circular.

In the Bipartite Settlement dated 27.03.2000, revision in Special Pay, Graduation

Pay and Personal Qualification Pay had taken place from 01.04.98 and of Fixed
Personal Pay from 01.11.99. In cases falling under (a) and (b) above, if an
employee during the last 10 months of service, had drawn the above components
of ‘pay’ at rates obtaining prior to 01.04.98 or 01.11.99, as the case may be,
then for the purpose of calculating average emoluments, the aggregate of such
component of ‘pay’ with Dearness Allowance there on at CPI 1684 points may
be reckoned.

5. Dearness Relief on basic pension computed as above shall be at rates as given

in Annexure - III to this circular.

6. The ordinary rates of family pension shall be as given in Annexure-IV to this

circular.
7. The amount of minimum pension shall be as given in Annexure V to this
circular.

309
8. Pending amendments to Bank Employees’ Pension Regulations, 1995, bank
may compute pension as above. Before, however, giving effect to the revised
pension, a suitable undertaking may be obtained from the pensioners, as well
as from family members/nominees, to enable the Pension Fund to make
adjustments, if any, at a later date.

ANNEXURE - I

Illustrative Example:

Computation of Pension in respect of a retiree (clerk retired on 31st March 2003) who
received ‘pay’ say, for 5 months as per Seventh Bipartite Settlement and for 5 months
as per Eighth Bipartite Settlement

1. ‘Pay’ drawn as per Seventh Bipartite Settlement during the

first 5 months of the last 10 months of qualifying service

Month of Service Pay ( )

1st (June, 2002) 8,980.00

2nd (July, 2002) 8,980.00
3rd (August, 2002) 8,980.00
4th (September, 2002) 8,980.00
5th (October, 2002) 8,980.00
TOTAL Rs. 44,900.00

2. Dearness Allowance actually drawn or dearness allowance at CPI 2288 points,

whichever is less, on ‘pay’ calculated at (1) above for each month

Month of Service DA at CPI DA actually

2288 points drawn

1st (June, 2002) 3140.80 (3224.00)

2nd (July, 2002) 3140.80 (3224.00)
3rd (August, 2002) 3140.80 (3348.00)
4th (September, 2002) 3140.80 (3348.80)
5th (October, 2002) 3140.80 (3348.80)
TOTAL Rs. 15,704.00

3. Total of ‘pay’ drawn as per (1) above 60,604.00 (A)

+ dearness allowances as per (2)
above for five months (i.e. 44,900 + 15,704)

310
4. ‘Pay’ drawn as per 8th Bipartite Settlement during the
last 5 months of qualifying service including the month
in which the employee retired (Increment from Feb. 2003)

Month of Service Pay ( )

6th (November, 2002 13,210.00

7th (December, 2002) 13,210.00
8th (January, 2003) 13,210.00
9th (February, 2003) 13,770.00 (incl. FPP)
10th (March, 2003) 13,770.00 (incl. FPP)
TOTAL 67,170.00 (B)

5. Total of ‘pay’ drawn for the last

10 months, i.e. total of (A) & (B) 1,27,774.00 (C)

6. Average emoluments for the

purpose of pension, i.e., 12,777.40

Total as per (C) above

10

7. Updated Basic Pension

50% of (6) above x Number of years of

Qualifying Service
(max. 33 years)

33

i.e. (Rs. 6388.70 x 33) 6,388.70

33

8. Basic Pension 6,389.00

(Rounded off to Rupee)

311
 ANNEXURE - II

Illustrative Example:
Computation of Pension in respect of a retiree (clerk) of the period 01.04.1998
to 31.12.2002 who received ‘pay’ say, for 4 months as per Sixth Bipartite
Settlement and for 6 months as per Seventh Bipartite Settlement.
1. ‘Pay’ drawn as per Sixth Bipartite Settlement during the
first 4 months of the last 10 months of qualifying service:

Month of Service Pay ( )

1st (July, 1997) 5500.00
2nd (August, 1997) 5500.00
3rd (September, 1997) 5500.00
4th (October, 1997) 5500.00
TOTAL 22,000.00
2. Dearness Allowance actually drawn or dearness allowance at CPI 1684 points
on ‘Pay’ calculated at (1) above for each month.
Month of Service DA at CPI DA actually
1684 points drawn
1st (July 1997) 2523.22 (2769.98)
2nd (August, 1997) 2523.22 (2846.92)
3rd (September, 1997) 2523.22 (2846.92)
4th (October, 1997) 2523.22 (2846.92)
TOTAL 10092.88
3. Total of ‘Pay’ drawn as per (1) above 32092.88 (A)
+ dearness allowance as per (2)
above for 4 months (i.e. 22,000 + 10092.88)
4. ‘Pay’ drawn as per Seventh Bipartite Settlement during the last 6 months of
qualifying service including the month in which the employee retired (increment
from January 1998)
Month of Service Pay ( )
5th (November, 1997) 8980.00
6th (December, 1997) 8980.00
7th (January, 1998) (Annual increment) 8980.00
8th (February, 1998) 8980.00
9th (March, 1998) 8980.00
10th (April, 1998) 8980.00
TOTAL 53,880.00 (B)
312
5. (a) FPP drawn as per Sixth Bipartite Settlement
during the period Jan. 98 to April 98
@ 230.00 x 4 920.00

(b) Dearness Allowance at 1684 points on FPP

as at (a) i.e., @ 107.87 x 4 431.48

(in the 7th Bipartite Settlement FPP got revised w.e.f. 01.11.99)
TOTAL 1,351.48 (C)

6. Total of ‘Pay’ drawn for the last 10 months

i.e., total of (A) – (B) & (C) 87,324.36 (D)

7. Average emoluments for the purpose of Pension, i.e.

Total as per (D) above

10 8,732.43

8. Updated Basic Pension

50% of (7) above x Number of years of

Qualifying Service
(max. 33 years)

33

i.e., ( 4366.21 x 33)

33 = 4,366.21

9. Basic Pension 4,366.00

(Rounded off to Rupee)

313
 ANNEXURE - III

DEARNESS RELIEF ON PENSION

PART A

On and from 01.05.2005, in the case of employees who retired during the period of
01.04.98 to 31.10.2002 dearness relief shall be payable for every rise or be recoverable
for every fall, as the case may be, of every 4 points over 1684 points in the quarterly
average of the All India Average Consumer Price Index for Industrial Workers in the
series 1960 = 100. Such increase or decrease in dearness relief for every said four
points shall be calculated in the manner given below:-

Scale of Basic The rate of dearness relief as a percentage

Pension per month of basic pension

(i) Upto 3,550 0.24 per cent

(ii) 3551 to 5,650 0.24 per cent of 3,550 plus 0.20 per cent of the
basic pension in excess of 3,550

(iii) 5,651 to 6,010 0.24 per cent of 3,550 plus 0.20 per cent of the
difference between 5,650 and 3,550 plus 0.12
per cent of basic pension in excess of
5,650

(iv) Above 6,010 0.24 per cent of 3,550 plus 0.20 per cent of the
difference between 5,650 and 3,550 plus 0.12
per cent difference between 6,010 and 5,650
plus 0.06 per cent of basic pension in excess of
6,010

PART B

In respect of employees who retire on or after 01.05.2005, dearness relief shall be

payable for every rise or be recoverable for every fall, as the case may be, of every
4 points over 2288 points in the quarterly average of the All India Consumer Price
Index for Industrial Workers in the series 1960 = 100, at the rate of 0.18 per cent of
basic pension.

Note:- In respect of retirees of the period 01.11.2002 to 30.04.2005, for whom pension
will be revised w.e.f. 01.05.2005 in terms of Paragraph 4(I) of this circular, dearness
relief shall be payable at 0.18 per cent of basic pension w.e.f. 01.05.2005.

314
 ANNEXURE - IV

Rates of Family Pension

PART A

In respect of employees (other than part - time employees) who retired during the
period from 01.04.1998 to 31.10.2002, on and from 01.05.2005, the ordinary rate of
family pension shall be as under:-

Scale of pay Amount of monthly family pension

per month

Upto 4,210 30 per cent of the ‘pay’ shall be the basic family
pension plus 30 per cent of allowances which are
counted for making contributions to Provident Fund
but not for dearness allowance shall be the additional
family pension. The aggregate of basic and additional
family pension shall not be less than 1,056 per
month.

4,210 to 8,420 20 per cent of the ‘pay’ shall be basic family pension
plus 20 per cent of allowances which are counted for
making contributions to Providend Fund but not for
dearness allowance shall be the additional family
pension. The aggregate of basic and additional family
pension shall not be less than 1,262 per month.

Above 8,420 15 per cent of the ‘pay’ shall be the basic family
pension plus 15 per cent of allowances which are
counted for making contributions to Provident Fund
but not for the dearness allowance shall be the
additional family pension. The aggregate of basic and
additional family shall not be less than 1687 per
month and more than 3,521 per month.

315
 PART B

In respect of employees (other than part - time employees) who retired/retires from
service on or after 01.05.2005, the ordinary rate of family pension shall be as under:-

Scale of pay Amount of monthly family pension

per month

Upto 5,720 30 per cent of the ‘pay’ shall be basic family pension
plus 30 per cent of allowances which are counted for
making contributions to Provident Fund but not for
dearness allowance shall be the additional family
pension. The aggregate of basic and additional family
pension shall not be less than 1,435 per month.

5,720 to 11,440 20 per cent of the ‘pay’ shall be basic family pension
plus 20 per cent of allowances which are counted for
making contributions to Provident Fund but not for
dearness allowance shall be the additional family
pension. The aggregate of basic and additional family
pension shall not be less than 1,715 per month.

Above 11,440 15 per cent of the ‘pay’ shall be the basic family
pension plus 15 per cent of allowances which are
counted for making contributions to Provident Fund
but not for the dearness allowance shall be the
additional family pension. The aggregate of basic and
additional family pension shall not be less than
2,292 per month and more than 4,784 per
month.

Note:- (i) Family pension in respect of employees who retired or died while in service
on or after 01.11.02 but before 30.04.05 shall also be revised in terms of Part B
above with effect from 01.05.2005. (ii) In the case of part-time employees, the minimum
amount of family pension and the maximum amount of family pension shall be in
proportion to the rate of scale wages drawn by the employee.

316
 ANNEXURE - V

MINIMUM PENSION - WITH EFFECT FROM 01.05.2005

(a) In respect of employees, other than part - time employees, who retired on or
after 01.04.1998 but before 31.10.02, the amount of minimum pension shall be
1,060 p.m. In respect of part-time employees who retired during this period,
the minimum pension payable shall be 355 p.m. in respect of part-time
employees drawing 3 scale wages, 530 p.m. in respect of part - time drawing
2 scale wages and 795 p.m. in respect of part-time employees drawing
w scale wages.
(b) In respect of employees, other than part time employees, who retired on or
after 01.05.2005, the amount of minimum pension shall be 1,435 p.m. In
respect of part-time employees, who retired on or after 01.05.2005, the minimum
pension payable shall be 480 p.m. in respect of part - time employees drawing
3 scale wages, 720 p.m. in respect of part - time employees drawing
2 scale wages and 1,080 p.m. in respect of part - time employees drawing w
scale wages.

Note:- Minimum pension being paid to retirees of the period 01.11.02 to 30.04.05
may also be revised with effect from 01.05.2005 with reference to paragraph
(b) above.

317
 CHAPTER - XXXI
ONE MORE OPTION FOR PENSION
&
NEW PENSION SCHEME

(A) ONE MORE OPTION FOR PENSION

MEMORANDUM OF SETTLEMENT DATED 27TH APRIL 2010 BETWEEN THE
INDIAN BANK’S ASSOCIATION ON BEHALF OF THE MANAGEMENTS LISTED
IN THE SCHEDULE AND THEIR WORKMEN REPRESENTED BY ALL INDIA BANK
EMPLOYEES’ ASSOCIATION (AIBEA), NATIONAL CONFEDERATION OF BANK
EMPLOYEES (NCBE), BANK EMPLOYEES’ FEDERATION OF INDIA (BEFI),
INDIAN NATIONAL BANK EMPLOYEES’ FEDERATION (INBEF) AND NATIONAL
ORGANISATION OF BANK WORKERS (NOBW)

(Under Section 2(p) and Section 18(1) Industrial Disputes Act, 1947 read with Rule
58 of the Industrial Disputed (Central) Rules, 1957)
TERMS OF SETTLEMENT
(1) All workmen employees in the service of the bank as on the date if this Settlement
who exercise option to join the Pension Scheme in terms of this Settlement will
contribute from their arrears on account of wage revision in terms of the
Settlement between the parties dated 27th April 2010 an amount of 878 crores
towards their share in the amount of 1800 crores offered by UFBU towards
30% of the estimated funding gap of 6000 crores. The said amount is worked
out @2.8 times of the revised pay for the month of November 2007, for individual
workmen employees.
(2) Another option for joining the existing Pension Scheme shall be extended to
those employees who:-
(I) (a) were in the service of the bank prior to 29th September 1995 in case
of Nationalized Banks /26th March 1996 in case of Associate Banks
of State Bank of India and continue in the service of the bank on the
date of this Settlement;
(b) exercise an option in writing within 60 days from the date of offer, to
become a member of the Pension Fund and
(c) authorise the Trust of the Provident Fund of the bank to transfer the
entire contribution of the bank along with interest accrued thereon to
the credit of the Pension Fund.

318
(II) (a) were in service of the bank prior to 29th September 1995 in case of
Nationalized Banks/ 26th March 1996 in case of Associate Banks of
State Bank of India and retired after that date and prior to the date of
this Settlement;
(b) exercise an option in writing within 60 days from the date of offer to
become a member of the Pension Fund and
(c) refund within 30 days after expiry of the said period of 60 days, the
entire amount of the banks contribution to the Provident Fund and
interest accrued thereon received by the employee on retirement
together with his share in contribution towards meeting 30% of Rs.
3115 crores which is estimated and reckoned as the funding gap for
those eligible under Clause 2(II), 2(III) and 2(IV) of this agreement.
On an individual basis, the payment over and above the bank’s
contribution to Provident Fund and interest thereon has been worked
out at 56% of the said amount of bank’s contribution to Provident
Fund and interest thereon received by the employee on retirement.
(III) The family of those employees who were in the services of the bank prior
to 29th September 1995 in case of Nationalized Banks / 26th March 1996
in case of Associate Banks of State Bank of India retired after the date
and died will be eligible for family pension, provided -
(a) the family of the deceased employee exercises option in writing within
60 days of the offer to become a member of the Pension Fund and
(b) refund within 30 days after expiry of the said period of 60 days, the
entire amount of the bank’s contribution to the Provident Fund and
interest accrued thereon received by the deceased employee on
retirement together with his share in contribution towards meeting
30% of 3115 crores which is estimated and reckoned as the funding
gap for those eligible under Clause 2(II), 2(III) and 2(IV) of the
agreement. On an individual basis, the payment over and above the
bank’s contribution to Provident Fund and interest thereon has been
worked out at 56% of the said amount of bank’s contribution to
Provident Fund and interest thereon received by the employee on
retirement.
(IV) The family of those employees who were in the service of the bank prior
to 29th September 1995 in case of Nationalized Banks / 26th March 1996
in case of Associate Banks of State Bank of India, but have died while in
service of the bank after that date will be eligible for family pension, provided -

319
 (a) the family of the deceased employee exercises an option in writing
within 60 days of the offer to become a member of the Pension Fund and

(b) refund within 30 days after expiry of the said period of 60 days
mentioned above, the entire amount of the bank’s contribution to
the Provident Fund and interest accrued thereon received upon death
of the employee together with his share in contribution towards
meeting 30% of 3115 crores which is estimated and reckoned as
the funding gap for those eligible under Clause 2(II), 2(III) and 2(IV)
of this agreement. On an individual basis, the payment over and
above the bank’s contribution to Provident Fund and interest thereon
has been worked out at 56% of the said amount of bank’s contribution
to Provident Fund and interest thereon received on death of the
employee.

(3) (i) The existing pension scheme will not be applicable to those who join the
services of banks on or after 1st April 2010.

(ii) Employees joining the services of banks on or after 1st April 2010 shall be
eligible for the Defined Contributory Pension Scheme, the banks will be
introducing for them. The Defined Contributory Pension Scheme proposed
to be introduced for them will be one as governed by the provisions of
New Pension System introduced for employees of Central Government
w.e.f. 1st January 2004 and as modified from time to time. The Scheme
shall be regulated and administered by the Pension Fund Regulatory and
Development Authority (PFRDA).

(iii) The employees joining the services of the banks on or after 1st April 2010
shall contribute 10% of Pay and Dearness Allowance towards the Defined
Contributory Pension Scheme and the bank shall make a matching
contribution in respect of these employees.

(iv) There shall be no separate Provident Fund for employees joining services
of Banks on or after 1st April 2010.

(4) Employees who ceased to be in service on or after 29th September 1995 in

case of Nationalized Banks / 26th March 1996 in case of Associate Banks of
State Bank of India on account of voluntary retirement under special scheme
after rendering service for a minimum period of 15 years, shall be eligible to
exercise an option to join the Pension Scheme subject to the terms and conditions
mentioned for retiring employees opting for joining the Scheme.
320
(5) Pension / Family Pension to those who opt to join the pension scheme complying
with the terms of this Settlement shall be payable with effect from 27th November
2009, provided that employees who retired after that date shall get pension
from the respective dates of their retirement. All the Regulations of the Bank
Employees’ Pension Regulations, 1995/1996 shall be applicable to those who
opt for the Pension Scheme in terms of this Settlement except to the extent
mentioned in the foregoing Clauses of this Settlement.
(6) The terms of this Settlement shall not be applicable to State Bank of India.
(7) The terms of this Settlement shall be incorporated in the Bank Employees’
Pension Regulations, 1995 dated 29th September 1995 in case of Nationalized
Banks / 26th March 1996 in case of Associate Banks of State Bank of India
respectively by complying with the procedure for amendment of the relevant
Pension Regulations.
(8) The terms of this Settlement shall be applicable to employees of Private Sector
Banks who are parties to this Settlement in respect of those who were in the
service of the bank on date of implementation of the Pension Scheme in terms
of the Settlement dated 29th October 1993 and did not opt for pension.
(9) National Organisation of Bank Workers (NOBW), which is not a party to the
Pension Settlement dated 29th October 1993, hereby endorses all the terms of
the said Settlement.
(10) The provisions of the Bipartite Settlement dated 29th October 1993 on pension
shall stand amended/ modified or superseded to the extent and in the manner
detailed herein above.
(11) The provisions of the Bipartite Settlement dated 29th October 1993 which have
not been amended/modified or superseded by this Settlement shall continue to
be in operation.
(12) The Unions who are parties to this Settlement agree that during the operation
of this Settlement, they will not raise any demand of any nature whatsoever on
any banks in respect of matters covered by this Memorandum of Settlement.
(13) Copies of this Memorandum of Settlement will be jointly forwarded by the parties
to the authorities listed in Rule 58 of the Industrial Disputes (Central) Rules,
1957 so that terms of and conditions thereof are binding on the parties as
provided in law.
(14) Any difference of opinion regarding interpretation of any of the provisions of this
Settlement, the matter will be taken up only at the level of the Indian Banks’
Association and the Workmen Unions for discussion and Settlement.

321
Minutes of the Discussions held on 27 th November 2009 between IBA
representing the Management of Banks and UFBU consisting of 5 Workmen
Unions viz. AIBEA, NCBE, BEFI, INBEF and NOBW and 4 Officers’ Associations
viz. AIBOC, AIBOA, INBOC & NOBO on another option to join the pension
scheme

The Indian Banks’ Association and the United Forum of Bank Unions (UFBU) entered
into a Memorandum of Understanding of 25th February 2008 on various issues.
Extending another option for pension to those who did not opt for pension when Bank
Employees’ Pension Regulations, 1995 were implemented was one of the issues to
be considered. Several rounds of discussions have taken place on the issue. An
actuarial valuation of the liability was assessed through two commonly agreed actuaries
who identified the total liability for extending another option for pension to non- optees.

On receipt of the actuarial valuation of the liability, several rounds of discussions

have taken place between the parties and the following terms have been mutually
agreed.

1. Existing employees

(i) the employees who were in service of the Banks as on the date of Pension
Regulation i.e., 29.9.1995/26.3.1996 and continue in service as on the
date of settlement / Joint Note to be signed between the parties, shall be
given one more option to join the Pension Scheme.

(ii) The Banks’ contribution to Provident Fund along with interest thereon in
respect of those employees who opt for pension shall be transferred to
the Pension Funds of the respective Banks.

(iii) The gap in the pension fund identified will be shared between parties as
under:

(a) 70% of the gap by the bank.

(b) 30% by the employees who are in service of the bank as on the
date of Memorandum of Settlement / Joint Note to be signed between
the parties in this regard. This amount will be recovered from the
arrears payable on wage revision.
2. Retired Employees
(i) Those employees who were in the service of the bank as on 29.9.1995/
26.03.1996 who were eligible but, did not opt for pension and retired

322
 thereafter shall also be extended the option for joining the Pension Scheme.
Towards joining the Pension Scheme they will-
(a) Refund the bank’s contribution to the Provident Fund with interest
thereof received by them at the time of retirement.

(b) Contribute to the Pension Fund their share of 30% of the gap in the
pension fund identified.

3. The Bank Employees’ Pension Regulations,1995 will be effective upto 31.3.2010

and cease to apply to any person appointed in the services of banks on or after
1.4.2010.
4. A defined contributory retirement benefit scheme as governed by the “contributory
pension scheme introduced for employees of Central Government with effect
from 1.1.2004” will be introduced for workmen/ officers joining the services of
banks on or after 1.4.2010. There shall be no separate contributory provident
fund in respect of these workmen/officers.
5. The terms of this minutes will not be applicable to State Bank of India.
6. The Parties will meet on mutually convenient dates to draw out a detailed
Memorandum of Settlement/ Joint Note in this regard; and appropriate
modifications in the Bank Employees’ Pension Regulations will be made following
the prescribed procedure in this regard. The parties will endeavour to finalise
the Memorandum of Settlement / Joint Note within a period of ninety days from
the date of this minutes.

323
Record Note of the Discussions held on 27th November 2009 between IBA
representing the Management of Banks and UFBU consisting of 5 Workmen
Unions viz. AIBEA, NCBE, BEFI, INBEF and NOBW and 4 Officers’ Associations
viz. AIBOC, AIBOA, INBOC & NOBO on extending another option to join the
pension scheme
The Indian Banks’ Association and the United Forum of Bank Unions (UFBU) entered
into Memorandum of Understanding on 25th February 2008 on various issues,
Extending another option for pension to those who did not opt for pension when Bank
Employees’ Pension Regulations, 1995 were implemented was one of the issues to
be considered. Several rounds of discussions have taken place on the issue, An
actuarial valuation of the liability was assed through two commonly agreed actuaries
who identified the total liability for extending another option for pension to non-optees
as under.
Another Option for Pension (Serving Employees)
(Rupees in Crores)
Total Liability as on 31-3-2008 as per Actuarial Valuation
Joint Exercise - 17190.00
PF Accumulation - 11532.00
Gap - 5658.00
Add 2% of Total Liability for loss/ incomplete date - 343.80
Total - 6001.80
Another Option for Pension (Retired Employees)
Total Liability as on 31-3-2008 - 4774.29
PF Accumulation to be refunded - 1657.79
Balance - 3116.50
On receipt of the actuarial valuation of the liability, several rounds of discussions
have taken place between the parties and the following terms have been mutually
agreed.
Existing employees
1) The employees who were in service of the Banks as on the date of Pension
Regulations i.e., 29.9.1995/26.3.1996 and continued in service as on the date
of settlement / Joint Note to be signed between the parties, shall be given one
more option to join the Pension Scheme.

324
2) The Banks’ contribution to Provident Fund along with interest thereon in respect
of those employees who opt for pension shall be transferred to the Pension
Funds of the respective Banks.
3) The gap in the Pension Fund identified (Rs.6001.80 crores) is agreed to be
shared between the parties as under :
a) 70% (Rs. 4201.26 crores) by the banks.
b) 30% (Rs. 1800.54 crores) by all the employees who are in service of the
bank as on the date of the Memorandum of Settlement / Joint Note to be
signed between the parties in this regard. This amount will be recovered
form the arrears payable on wage revision.

Retired Employees

4) Those employees who were in the service of the bank as on 29.9.1995/

26.3.1996 who were eligible but, did not opt for pension and retired thereafter
shall also be extended the option for joining the Pension Scheme. Towards
joining the Pension Scheme they will -

a) Refund the bank’s contribution to the Provident Fund with interest thereof
received by them at the time of retirement.
b) Contribute to the Pension Fund their share of 30% of the gap in the Pension
identified (Rs.934.95 crores)
5) The Bank Employees’ Pension Regulations, 1995 will be effective up to
31.3.2010 and cease to apply to any person appointed in the service of banks
on or after 1.4.2010.
6) A defined contributory retirement benefit scheme as governed by the “contributory
pension scheme introduced for employees of Central Government with effect
from 1.1.2004” will be introduced for workmen/officers joining the services of
banks on or after 1.4.2010. There shall be no separate contributory provident
fund in respect of these workmen / officers.
7) The terms hereof will not be applicable to State Bank of India.
8) The Parties will meet on mutually convenient dates to draw out a detailed
Memorandum, of Settlement / Joint Note in this regard; and appropriate
modifications in the Bank Employees’ Pension Regulations will be made following
the prescribed procedure in this regard. The parties will endeavour to finalise
the Memorandum of Settlement / Joint Note within a period of ninety days from
the date of this minutes.

325
 NEW PENSION SCHEME
1. Introduction:
Indian Banksí’ Association, on behalf of the Management of Banks has signed the
minutes of the discussions held with the constituents of United Forum of Bank Unions
on 27th November 2009 in the matter, inter alia, introducing a Defined Contributory
Retirement Benefit Scheme (NPS-New Pension Scheme) instead of the present
Defined Benefit Pension Scheme to those employees who are joining the services of
banks on or after 1st April 2010.
The New Pension Scheme shall be one as governed by the “Contributory Pension
Scheme” introduced for employees of Central Government w.e.f. 1st January 2004.
There shall be no separate contributory provident fund in respect of these employees.
The Scheme shall be regulated and administered by Pension Fund Regulatory and
Development Authority (PFRDA).
2. Salient features:
2.1. The NPS in Banks is on similar lines of the ‘Contributory Pension’ introduced
for employees of Central Government w.e.f. 01.01.2004.
2.2. No separate contributory provident fund in respect of employees covered under
the new scheme.
2.3. The scheme will be regulated and administered by Pension Fund Regulatory
and Development Authority (PFRDA).
2.4. The NPS has two tiers - Tier I and II.
2.5. Contribution to Tier-1 is mandatory for all employees joining the services of the
Bank on or after 01.04.2010.
2.6. Tier - II is optional.
2.7. Under Tier - I, Employees to make contribution @ 10% of the basic pay plus
DA, which will be deducted from the salary every month.
2.8. Bank to make equal matching contribution.
2.9. Tier-I contribution (and the Investment returns) will be kept in non-withdrawable
Pension Tier-I account.
2.10. In addition, each individual may also have a voluntary Tier - II withdrawable
account at his/her option. The withdrawable account does not constitute pension
investment and would have no special tax treatment. Bank need not make any
contribution to Tier-II account.

326
2.11. At or after the age of 60 years, the Employee can exit from the Scheme. However,
40% of pension wealth to be invested to purchase annuity (from the Fund
Manager) which will provide pension for the lifetime of the employee.
2.12. Individual will have flexibility to leave the pension system prior to the age of 60.
However, in such cases, the mandatory annuitisation would be 80% of the
pension wealth.
2.13. Where an employee dies due to any cause, option will be available to the nominee
to receive 100% of the NPS pension wealth in lump sum. However, if the nominee
wishes to continue with the NPS, he/she shall have to subscribe to NPS
individually after following due KYC procedure.
2.14. Only one Permanent Retirement Account Number (PRAN) will be given to an
employee and it can be operated from anywhere in the country even if the
employee changes the Employment, City or the Fund Manager.
2.15. Recoveries towards Tier ñ 1 contribution will start from the salary of the month
following the month in which the employee joins the services of the Bank. No
recovery will be effected for the month of joining. For ex: for employees joining
service in the month of February, deductions towards Tier-I contribution will
start from the salary of March.
2.16. No deductions will be made towards PF contribution from the employees joining
the service of the Bank on after 01.04.2010 as the PF scheme is not applicable
to them.
2.17. Tax benefits would be applicable as per the Income Tax Act, 1961, under
Chapter VI, Section 80CCD, as amended from time to time.
3. NPS Architecture:
3.1 NPS Trust
Pension Fund Regulatory and Development Authority (PFRDA) is the prudential
Regulator for the NPS. PFRDA has established the NPS Trust under Indian Trust
Act, 1882 and appointed NPS Board of Trustees in whom the administration of the
ìNational Pension Systemî vests under Indian Law. The Trust is responsible for taking
care of the funds under the NPS.
3.2 Trustee Bank
The NPS Trust holds an account with the Bank of India and this Bank is designated
as the ‘NPS Trustee Bank.’
3.3 Pension Fund Managers (PFMs)
PFRDA has appointed six Pension Fund Managers (PFMs) who will manage
the retirement savings of subscribers under the NPS. They are:-
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● ICICI Prudential Pension Funds Management Company Limited
● IDFC Pension Fund Management Company Limited
● Kotak Mahindra Pension Fund Limited
● Reliance Capital Pension Fund Limited
● SBI Pension Funds Private Limited
● UTI Retirement Solutions Limited.
The PFMs are required to invest strictly in accordance with guidelines issued by the
Government/PFRDA.
3.4 Central Record Keeping Agency (CRA)
National Securities Depository Limited (NSDL) has been appointed as the CRA.
The record keeping, administration and customer service functions for all subscribers
of the NPS shall be centralized and performed by the CRA. The CRA shall also
provide periodic, consolidated PRAN statements to each subscriber.
3.5 Points of Presence (PoPs)
POPs act as the customer interface for non-government subscribers/individual citizens
who wish to open Permanent Retirement Account (PRA) with Central Record keeping
Agency (CRA) for the purpose of subscribing to the NPS.
3.6 Subscribers (Employees)
4. Functions of PoP
4.1 To receive the duly filled application form along with the KYC documentation as
may be applicable from time to time.
4.2 To verify KYC documents as may be required from time to time.
4.3 To collect and verify contributions that may be received through salary.
4.4 To collect/deduct NPS application processing fees and issue of receipt to the
subscriber against the same.
4.5 To submit complete and accepted forms on a daily basis, to CRA/CRA Facilitation
Centre (FC)
4.6 To upload the subscriber contribution files into CRA system and simultaneously
arrange to transfer the funds into the account of the NPS trust maintained with the
Trustee Bank.
4.7 To maintain and report records of all transactions in accordance with the provisions
of PML Act, 2002 and Rules framed there under, as may be applicable from time
to time.
328
4.8 Regular subscriber contribution upload
● Verify PRAN card details on the deposit slip, the format for which shall be
prescribed by PFRDA.
● Collection and verification of contributions that may be received through
cash/cheque/Demand Draft/Electronic Clearing system (ECS)
● Collection/deduction of contribution processing fee and issue of receipt to
the subscribers for the same.
● Uploading subscriber contribution details online into the CRA system, in
respect of subscribers for whom clear funds are available, on a daily basis.
● Remit clear funds into the account of the NPS trust maintained with the
Trustee Bank on atleast T+1 basis.
● Maintain hard copies of deposit slips.
4.9 Subscriber servicing
● Carry out changes in subscriber details on request by subscriber
subject to the conditions stipulated by PFRDA.
● Receiving switch request for change in PFM and/or investment option
from subscriber and transmitting the same to CRA, wherever applicable.
● Receiving withdrawal requests from subscriber and transmitting the same
to CRA in respect of withdrawal is permissible under the scheme. For
this purpose, subscriber would put in a withdrawal request to POP-SP.
The subscriberís pension wealth would be credited directly to his bank
account by trustee bank, on receiving instructions from CRA, through RTGS/
NEFT or by way of a pay order where his/her personal bank details are not
available.
● Attending to subscriberís request for shift to another PoP-SP.
● Any other NPS account related service as may be prescribed by PFRDA
from time to time.
4.10 Grievance handling
● Receiving of grievances submitted by the subscriber against PoP/
PoP-SP or any other NPS Intermediary in the format prescribed by
PFRDA and uploading of all grievances in the Central Grievance
Management System (CGMS) of CRA on a daily basis. The CGMS system
of CRA would route the grievances to respective NPS intermediaries.

329
 ● Receiving grievances raised by the subscriber against PoP-SP through
the CRA call centre/CGMS of CRA by accessing the CGMS.
5. Charges structure
Following are the charges under NPS (as prescribed by PFRDA):
Intermediary Charge head Service charges Method of deduction

Central Record Keeping Permanent Retirement 50 Through cancellation

Agency Account (PRA) of units
opening charges
Annual PRA Maintenance 2801
cost
Charge per transaction 61 To be collected upfront

Point of Presence (POP) Initial subscriber registration 40

(Maximum Permissible and contribution upload
Charge for each subscriber)

Any subsequent transactions2 20

Trustee Bank Per transaction emanating Zero Through NAV

from a RBI location deduction
Per transaction emanating 15
from a non-RBI location4

Custodian5 Asset servicing charges 0.0075%p.a. Through NAV

(on asset value for Electronic deduction
in custody) segment
& 0.05% p.a.
for Physical
segment

PFM charges Investment Management 0.0009% p.a. Through NAV

Fee3 deduction

*Service tax and other levies, as applicable, will be levied to the employee/subscriber as per the
existing tax laws.
1
When the number of accounts in CRA reaches 30 lakh the service charges, exclusive
of Service Tax and other taxes as applicable, will be reduced further to Rs.250 (Rupees
two hundred and fifty only) for annual PRA maintenance per account and Rs.4 (Rupees
four only) for charges per transaction. CRAís charge for maintenance of the Permanent
Retirement Account would include charges for maintenance of electronic information
of the balances in PRA, for incorporating changes to PRA details received by
the CRA in electronic form, for sending annual account information once a year in
printed form etc.
330
2
These includes
● Regular subscriberís contribution
● Change in subscriber details
● Change of investment scheme/fund manager
● Processing of withdrawal request
● Processing of request for subscriber shifting
● Issuance of printed Account statement
● Any other subscriber services as may be prescribed by PFRDA
3
The Investment Management Fee is inclusive of all transaction related charges
such as brokerage, transaction cost etc., except custodian charges and applicable
taxes. The Investment Management Fee is calculated on the average monthly assets
managed by the pension fund.
4
Trustee Bank charges are not charged to subscribers directly. Transaction refers
to the entire chain of activities starting from receipt of electronic instruction/receipt of
physical instrument to transfer of funds to the designated PFMs. On the outflow side,
it would include all activities leading to credit of beneficiary account.
5
Charges for Demat/Remat, Receipt of shares & SEBI charges are extra.
6. Operationalisation of NPS:
As per the guidelines of PFRDA (Pension Fund Regulatory and Development
Authority), a Bank can operationalise NPS only through a registered Point of
Presence (PoP), who will be responsible for performing all the regular activities
related to NPS on behalf of the Bank. Our Bank is currently functioning as a POP for
NPS-All Citizens of India and the existing interface with the CRA will be used to service
the employees. The Bank has already registered as Corporate with the NSDL, the
CRA.
The officers/employees who joined the services of Bank on or after 01.04.2010, need
to open a Permanent Retirement Account under NPS by filling in the ëapplication
form for subscriber registrationí, format of which is enclosed as Annexure (which is
also made available in the intranet- download path : ftp://10.10.1.10/HO- PAD/NPS).
Please go through the instructions available in the form carefully, for filling and
submitting the same.
Some of the main instructions for filling the form are
1. Form to be filled legibly in BLOCK LETTERS and in BLACK INK only.
Please do not overwrite.
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 Corrections should be made by cancelling and re-writing and such corrections
should be counter- signed by the applicant.
2. Each box, wherever provided, should contain only one character leaving a blank
box after each word.
3. The subscriber should affix a recent colour photograph (3.5cm x 2.5cm) in the
space provided on the form. The photograph should not be stapled or clipped to
the form.
4. Signature/Thumb impression (LTI in case of males and RTI in case of females)
should only be within the box provided in the form. The subscriber should not
sign across the photograph. If there is any mark on the photograph such that it
hinders the clear visibility of the face of the subscriber, the application shall not
be accepted.
5. Applications incomplete in any respect and/or not accompanied by required
documents are liable to be rejected.
6. The application is liable to be rejected if mandatory fields are left blank or the
application form is printed back to back.
7. The subscriberís thumb impression should be verified by the designated office
of the employer accepting the form.
8. The list of documents acceptable as Proof of identity and address are given in
the application form.
The proof of address mentioned in Sr.No.1 to 7 of the application should not be
more than six months old as on the date of application.
9. The duly filled application form should be submitted to the Branch Manager
along with the proof of identity and address.
10. While submitting the application the subscriber required to bring the original
documents (proof of address and identity) and two self-attested photocopies
(originals will be returned over the counter after verification.
11. Officers/Employees concerned may kindly note that Section D need not
be filled in.
12. The Branch Manager should ensure that the application is duly filled
in, verify the proof(identity/address) with the originals, should fill and certify
Section B of the application and forward the application to “SPF Section/Personnel
Administration Division, Head Office.”

332
13. On the top of the cover containing the application, it should be clearly mentioned
as ‘APPLICATION FOR NPS’.
The applications received at Personnel Administration Division, Head Office, will be
verified and forwarded to CRA through PoP.
After the account is opened, CRA will mail a ‘Welcome Kit’ to the subscriber containing
the subscriber’s unique Permanent Retirement Account Number (PRAN) Card and
the complete information provided by the subscriber in the Subscriber Registration
form. This account number will be the primary means of identifying and operating the
account. The subscriber will also receive a Telephone Password (TPIN) which can
be used to access the account on the call centre number (1-800-222080). The
subscriber will also be provided with an Internet Password (IPIN) for accessing the
account on the CRA Website (www.npscra.nsdl.co.in) on a 24x7 basis.

***

333
IBA Letter No. CIR/HR & IR/G2 (DC)/2010-11/1036 dated 23.09.2010
Designated Officers of Member Banks which are parties
to the Bipartite Settlement (other than State Bank of India)
Dear Sirs,
Introduction of New Pension Scheme for the employees recruited in Banks on
or after 1.4.2010
You are aware that in terms of the Bipartite Settlement and Joint Note on extending
another option for pension to those who did not opt for pension earlier, signed between
the IBA and the Workmen Unions and Officers' Associations respectively, employees
joining services of banks on or after 1.4.2010 are not eligible for Provident Fund and
Pension in terms of Bank Employees' Pension Regulations. These employees will be
eligible for the Defined Contributory Pension Scheme, the banks will be introducing for
them; which will be one as governed by the provisions of New Pension Scheme
introduced for employees of Central Government w.e.f 1.1.2004 and as modified from
time to time.
We are enclosing notification dated 22nd December 2003 and 4th February 2004 of the
Ministry of Finance containing the salient features of the Scheme introduced for
employees of the Government for your information. We shall be forwarding the details
of the Scheme for introduction of the Scheme in Banks as same is finalized in
consultation with PFRDA. Till the scheme is finalized, we suggest the banks may follow
the steps given below in respect of employees who joined the services on or after
1.4.2010.
(i) Recover 10% of the Pay and Dearness Allowance from the salary of the month
following the month in which the employees have joined service.
(ii) Make a matching contribution from the bank's side in regard of each employee.
(iii) Keep employee-wise records for the recovery of contribution from the salary of
the employee and matching contribution by the bank.
(iv) No recovery to be made towards Provident Fund in respect of these employees,
as they are not entitled for Provident Fund once New Pension Scheme is
introduced.
(v) Keep the funds accumulated separately so that the funds can be transferred to
the appropriate agency once the scheme is finalized.
We shall advise you further in the matter in due course.

334
 MINISTRY OF FINANCE
(Department of Economic Affairs)
(ECR & PR Division)
Notification
New Delhi, the 22nd December, 2003
F.No.5/7/2003-ECB & PR - The Government approved on 23rd August, 2003 the
proposal to implement the budget announcement of 2003-2004 relating to introducing
a new restructured defined contribution pension system for new entrants to Central
Government service, except to Armed Forces, in the first stage, replacing the existing
system of defined benefit pension system.
(i) The system would be mandatory for all new recruits to the central Government
service from 1st of January 2004 (except the armed forces in the first stage). The
monthly contribution would be 10 percent of the salary and DA to be paid by the
employee and matched by the Central Government. However, there will be no
contribution from the Government in respect of individuals who are not Government
employees. The contributions and investment returns would be deposited in a
non-withdrawable pension tier-I account. The existing provisions of defined
benefit pension and GPF would not be available to the new recruits in the central
Government service.
(ii) In addition to the above pension account, each individual may also have a
voluntary tier-II withdrawable account at his option. This option is given as GPF
will be withdrawn for new recruits in Central Government service. Government
will make no contribution into this account. These assets would be managed
through exactly the above procedures. However, the employee would be free to
withdraw part or all of the 'second tier' of his money anytime. This withdrawable
account does not constitute pension investment and would attract no special tax
treatment.
(iii) Individuals can normally exit at or after age 60 years for tier-I of the pension
system. At exit the individual would be mandatorily required to invest 40 percent
of pension wealth to purchase an annuity (from an IRDA- regulated life insurance
company). In case of Government employee the annuity should provide for
pension for the lifetime of the employee and his dependent parents and his
spouse at the time of retirement. The individual would receive a lump-sum of the
remaining pension wealth, which he would be free to utilise in any manner.
Individuals would have the flexibility to leave the pension system prior to age 60.
However, in this case, the mandatory annuitisation would be 80% of the pension
wealth.

335
 Architecture of the New Pension System
(iv) It will have a central record keeping and accounting (CRA) infrastructure, several
pension fund managers (PFMs) to offer three categories of schemes viz. option
A, B and C.
v) The participating entities (PFMs and CRA) would give out easily understood
information about past performance, so that the individual would able to make
informed choices about which scheme to choose.
2. The effective date for operationalisation of the new pension system shall be from
1st of January, 2004.
G.I., M.F. F. No.1 (7) (2) / 2003 /TA/11, dated 7-1-2004 read
with O.M. No. 1 (7) (2) / 2003/TA/67-74, dated 4-2-2004
Salient features of New Pension Scheme- Government of India have introduced a new
Defined Contribution Pension Scheme replacing the existing system of Defined
Benefit Pension System.
Vide Government of India, Ministry of Finance, Department of Economic Affairs
Notification, dated 22-12-2003. The New Pension Scheme comes into operation with
effect from 1-1-2004 and is applicable to all new entrants to Central Government
service, except to Armed Forces, joining Government service on or after 1-1-2004.
The salient features of the New Pension Scheme are as follows : -
1. The New Pension Scheme will work on defined contribution basis and will have
two tiers - Tiers-I and II. Contribution to Tier-I is mandatory for all Government
servants joining Government service on or after 1-1-2004, whereas Tier-II will be
optional and at the discretion of Government servants.
2. In Tier-I, Government servants will have to make a contribution of 10% of his
basic pay plus DA, which will be deducted from his salary bill every month by the
PAO concerned. The Government will make an equal matching contribution.
3. Tier-I contributions (and the investment returns) will be kept in a non-withdrawable
Pension Tier-I Account. Tier-II contributions will be kept in a separate account
that will be withdrawable at the option of the Government servant. Government
will not make any contribution to Tier-II account.
4. The existing provisions of Defined Benefit Pension and GPF would not be
available to new Government servants joining Government service on or after
1-1-2004.

336
5. In order to implement the Scheme, there will be a Central Record Keeping
Agency and several Pension Fund Managers to offer three categories of
Schemes to Government servants, viz., options A, B and C based on the ratio of
investment in fixed income instruments and equities. An independent Pension
Fund Regulatory and Development Authority (PFRDA) will regulate and develop
the pension market.
6. As an interim arrangement, till such time the Statutory PFRDA is set up, an
interim PFRDA has been appointed by issuing an executive order by M/o
Finance (DEA).
7. Till the regular Central Record Keeping Agency and Pension Fund Managers are
appointed and the accumulated balances under each individual account are
transferred to them, it has been decided that such amounts representing the
contributions made by the Government servants and the matching contribution
made by the Government will be kept in the Public Account of India. This will be
purely a temporary arrangement as announced by the Government.
8. It has also been decided that Tier-II will not be made operative during the interim
period.
9. A Government servant can exit at or after the age of 60 years from the Tier-I of
the scheme. At exit, it would be mandatory for him to invest 40 per cent of pension
wealth to purchase an annuity (from an IRDA, regulated Life Insurance Company),
which will provide for pension for the lifetime of the employee and his dependent
parents/spouse. In the case of Government servants who leave the Scheme
before attaining the age of 60, the mandatory annuitization would be 80% of the
pension wealth.
10. The following guidelines are issued for the implementation of the New Pension
Scheme during the interim arrangement for the guidance of the PAOs / DDOs :
(a) The new pension scheme becomes operational with effect from 1-1-2004.
(b) Contributions payable by the Government servants towards the Scheme
under Tier-I, i.e., 10% of the (Basic Pay plus DA), will be recovered from the
salary bills every month.
(c) The scheme of voluntary contributions under Tier-II will not be made
operative during the period of Interim arrangement and therefore no
recoveries will be made from the salaries of the employees on this account.
(d) Recoveries towards Tier-I contribution will start from the salary of the
month following the month in which the Government servant has joined
service. Therefore, no recovery will be effected for the month of joining. For
example, for employees joining service in the month of January, 2004,

337
 deductions towards Tier-I contribution will start from the salary bill of
February, 2004. No deduction will be made for his salary earned in January,
2004. Similarly, deductions for those joining service in the month of
February, 2004 will start from the salary bill of March, 2004 and so on.
(e) No deductions will be made towards GPF contribution from the Government
servants joining the service on or after 1-1-2004 as the GPF Scheme is not
applicable to them.
(f) It has been decided that pending formation of a regular Central Record
Keeping Agency, Central Pension Accounting Office will function as the
Central Record Keeping Agency for the above scheme.
(g) Immediately on joining Government service, the Government servant will
be required to provide particulars such as his name, designation, scale of
pay, date of birth, nominee(s) for the fund, relationship of the nominee, etc.,
in the prescribed form (Annexure-I). The DDO concerned will be responsible
for obtaining this information from all Government servants covered under
the new Pension Scheme. Consolidated information for all those who have
joined service during the month shall be submitted by the DDO concerned
in the prescribed format (Annexure - II) to his Pay and Accounts Officer by
7th of the following month. Annexure -I will be retained by DDOs.
(h) On receipt of Annexure-II from the DDOs, PAO will allot a unique 16 digit
Permanent Pension Account Number (PPAN). The first four digits of his
number will indicate the calender year of joining Government service, the
next digit indicates whether it is a Civil or Non-Civil Ministry (for all Civil
Ministries this digit will be "1"), the next six digits would represent the PAO
code (which is used for the purpose of compiling monthly accounts), the last
five digits will be the running serial number of the individual Government
servant which will be allotted by the PAO concerned. PAO will allot the
serial number pertaining to individual Government servant from '0001'
running from January to December of a calender year. The following
illustration may be followed :-
The first Government servant joining service under Ministry of Civil Aviation under the
accounting control of PAO (Sectt.), New Delhi in 2004, shall be allotted the following
PPAN :-
Calendar Year Civil Min. PAO Code Serial Number
2 0 0 4 1 0 4 0 8 6 6 0 0 0 0 1

338
(i) The Pay and Accounts Officer will maintain an Index Register for the
purpose of allotment of PPAN to new entrants to Government service.
Format of the index register is given in Annexure-VII.
(j) The PAO will return to the DDO concerned, a copy of the statement duly
indicating therein the Account numbers allotted to each individual by 10th
instant. DDO in turn will intimate the account number to the individuals
concerned and also note in the Pay Bill Register.
(k) The particulars of the Government servants received from the various
DDOs will be consolidated by the PAO in the format (Annexure-II-A) and
sent to the Principal Accounts Office by the 12th of every month.
(l) The Principal Accounts Office in turn will consolidate the particulars in the
prescribed format (Annexure-II-B) and forward the same to Central Pension
Accounting g Office by 15th instant. The CPAO will feed this information in
their computer database.
(m) The DDOs / CDDOs will prepare separate Pay Bill Registers in respect of
the Government servants joining Government service on or after 1-1-2004.
The DDOs CDDOs will have to prepare separate pay bills in respect of
these Government servants and will send the same with all the schedules
to he PAO on or before 20th of the month to which the bills relate. Cheque
Drawing DDOs may note that hereafter in respect of Government servants
joining service on or 1-1-2004, they will only prepare pay bills and not make
payment. Such bills will be sent by them to the Pay and Accounts Offices
for pre-check and payment.
(n) The DDO/CDDO will prepare a recovery schedule in duplicate in the
prescribed form (Annexure-III) for the contributions under Tier-I and attach
them with the pay bills. The amount of the Contributions under Tier-I should
tally with the total amount of recoveries shown under the corresponding
column in the pay bill.
(o) The accounting procedure for these deductions is being finalized and shall
be notified shortly.
(p) It may be noted that along with the salary bill for the Government servants
who join service on or after 1-1-2004, the DDO/ CDDO shall also prepare
a separate bill for drawal of matching contributions to be paid by the
Government and creditable to Pension account.
(q) The bill for drawal of matching contribution should also be supported by
schedules of recoveries in form (Annexure-IV).

339
(r) On receipt of the salary bills in respect of Government servants joining
service after 1-1-2004, PAO will exercise usual checks and pass the bill and
make the payments. After the payment is made and posting done in the
Detailed Posting Register, one set of schedules relating to Pension
contributions will be detached from the bills as done in the case of other
schedules such as GPF, Long - term advances. The schedules will then be
utilized for posting the credits of contributions in the Detailed Ledger
Account of the individual.
(s) The employee's contributions under Tier-I and Tier-II and Government's
contribution should be posted in different columns of the individual ledger
account (to be maintained in the format in Annexure -V) and Broadsheet
and tallied with the accounts figures as being done in the case of GPF.
(t) These accounts should not be mixed with GPF accounts and these
records/ledger accounts should be independent of GPF accounts maintained
in the case of pre 1-1-2004 entrants.
(u) The PAO will consolidate the information available in the New Scheme
schedules received from the various DDOs and forward the same in a
floppy in the prescribed form (Annexure -VI) to Principal Accounts Office by
12th of the month following the month to which the credit pertains. Principal
Accounts Office in turn will consolidate the information and send the same
in electronic form to the Central Pension Accounting Office by 15th.
(v) CPAO on receipt of this information from all the Pr. AOs (including the Non-
Civil Ministries) will update its database and generate exception reports for
missing credits, mismatches, etc., which will be sent back to the PAOs
concerned through the Pr. AOs for further action.
(w) Whenever any Government servant is transferred from one office to
another either within the same accounting circle or to another accounting
circle, balances will not be transferred by the PAO to the other Account
Office. However, the Drawing and Disbursing Officer should clearly
indicate in the LPC of the individual the unique account number, the month
up to which Government servant's contribution and Government's
contribution have been transferred to the Pension Fund.
(x) No withdrawal of any amount will be allowed during the interim arrangement.
Provisions regarding terminal payments in the event of untimely death of
an employee or in the event of his leaving the Government service during
the interim period shall be notified in due course.

340
 (y) Detailed instructions on the interest payable on Tier-I balances shall be
issued in due course.

(z) At the end of each financial year, the CPAO will prepare annual account
statements for each employee showing the opening balance, details of
monthly deduction and Government's matching contributions, interest
earned, if any, and the closing balance. CPAO will send these statements
to the Pr. A.O. for onward transmission to the DDO through the PAO.

(aa) After the close of each financial year, CPAO will have to report the
details of the balances (PAO-wise) to each Principal Accounts
Offices, who will forward the information to each PAO for the
purpose of reconciliation. The PAO will reconcile the figures of
contributions posted in the ledger account of the individuals as per
their ledger with figures as per the books of CPAO.

(bb) After the appointment of CRA an Fund Managers, this office will
issue detailed instructions on transfer of balances to CRA.

All Chief Controller of Accounts/ Controller of Accounts are requested to circulate

the above guidelines to all the PAOs/ DDOs/ CDDOs of their Ministry.

G.I., M.F., O.M. No. 5/7/2003-ECB & PR

dated the 22nd December, 2003

NOTIFICATION

(For notification refer page 326)

INTRODUCTION OF NEW PENSION SCHEME

● Come into operation with effect from 1-1-2004.

● Applicable to all new entrants to Central Government service except Armed

Forces.

● Will have two tiers - Tier-I and Tier-II.

● In Tier-I, Government servants have to make mandatory contribution of

10% of (Basic Pay plus D.A.) and Government will make an equal matching
contribution.

● Tier-I is non-withdrawable.

341
● Separate Account for Tier -II- Withdrawable - No matching contribution by
Government.

● There will be Central Record Keeping Agency. Several Pension Fund

Managers to offer 3 categories of Schemes A,B,C.
● Statutory Pension Fund Regulatory and Development (PFRDA) to regulate
and develop the pension market.
● Government servant can exit at or after 60 years of age from Tier-I.
● 40% of pension wealth mandatory for investment at exit.
● This will provide for pension for lifetime and his/her dependant.

342
 PART - II

BANK LEVEL SETTLEMENTS/

AGREEMENTS/
GUIDELINES ETC.
 CHAPTER - I
APPOINTMENTS
BANK’S RECRUITMENT POLICY – PROCEDURE FOR FILLING UP THE
PERMANENT VACANCY OF PEON / PTS & EMPANELMENT OF
TEMPORARY PEON/TEMPORARY PTS
1. In view of ruling of the Hon’ble Supreme Court and the instructions given by the
Ministry of Finance to fall in line with the advice of Department of Personnel and
Training (DOPT), the Board of Directors of the Bank has approved adoption of
the following procedure for empanelling temporary Peons/temporary PTS or for
filling up the permanent vacancy of Peons / PTS in the Bank:
2.1 In the case of New Branches/Offices, or existing branches where there is no
temporary panel:
(i) Selection of permanent sub- To place indent with the local
staff/Part-time Sweeper. Employment Exchange, Employment
Notice to be advertised in any one
(ii) Constitution of temporary panel local newspaper (preferably in
of sub-staff/Part-time sweeper. vernacular language) covering the
area of the operation of the Branch,
besides exhibiting Employment
Notice on the Notice Board of the
branch concerned.
2.2 In the case of Branches/Offices where there is a temporary panel of sub-staff
and PTS already in existence:
(i) Selection of permanent The existing panel of temporary sub- staff/
sub - staff / Part-time temporary part-time sweepers, wherever
Sweeper. duly constituted in accordance with the
recruitment rules at relevant point of time,
be utilised and appointment be made from
among the persons who are working on
temporary/part-time basis by conducting
interviews as hitherto followed in
accordance with Paragraph 20.12 of the
First Bipartite Settlement. In such an
event, there is no requirement to issue
an open advertisement /notification to
Employment Exchange and follow the
procedure once again.

345
3. Age of the Candidate: In the case of temporary sub staff/temporary part time
sweeper already empanelled, the age of the candidate be reckoned with
reference to the age as on the date of initial engagement. Wherever, notification
/open advertisement is being issued, the age of new candidates be reckoned
with reference to the age as on the date of notification of the vacancy.
4. General Guidelines:
4.1 In case of recruitment of permanent sub staff / PTS and empanelment of
temporary sub staff/temporary PTS for new Branches/Offices, or in case of
existing branches where there is no temporary panel in the city:
(i) Notify vacancies (permanent / temporary as the case be) to the District
Employment Exchange concerned by Branch/Office with prior approval
of HO/ZO provided there is sanctioned strength. Employment Exchange
should be informed clearly that in case the Employment Exchange list is not
received within 15 days, the candidates sponsored by them would be rejected.
(ii) Put up a Notice (preferably in vernacular language) on the Notice Board
of the Branch/office concerned where the vacancy has arisen. The Branch
Manager shall exhibit notice on the Notice Board, only with the prior
approval of Zonal Head.
(iii) Simultaneously, issue an advertisement (preferably in vernacular language)
in a local daily newspaper covering the area of operation of the Branch,
not exceeding the column size of 10 cms x 8 cms (black and white)
preferably in the classified advertisement page.
(iv) Release of advertisement will be done by ZO only.
(v) Process the applications received from the eligible candidates in response
to the paper advertisement/notice displayed on Bank’s Notice Board and
the names received from Employment Exchange.
(vi) Conduct interviews as per the existing guidelines to empanel / select eligible
candidates. Wherever, the concept of pooling of candidate is prevalent,
we may select and empanel temporary candidates in the ratio of 1:2 (for
every one permanent sub staff, two temporary sub staff). In stand alone
cases, the temporary sub staff may be empanelled in the ratio of 1:3 (for
every one permanent sub staff, three temporary sub staff). In the case of
PTS, it is advisable to maintain a ratio of 1:2.
In the case of Branches/Offices where there is a temporary panel of sub-staff and
PTS already in existence, selection of permanent sub staff / part time sweeper may
be done as per the prevailing procedure.
The recruitment will be subject to the Reservation Policy of Government of India.

346
APPOINTMENT OF TEMPORARY / PERMANENT SUBORDINATE STAFF

Branches/Offices have to constitute/maintain a panel of candidates duly recruited,

for engagement as temporary employees in Subordinate Staff Cadre. Such temporary
engagement could be for a limited period of work which is of an essentially temporary
nature or due to temporary increase in work of a permanent nature or is a temporary
vacancy caused by the absence of a permanent Subordinate Staff/PTS. Apart from
the above three contingencies, temporary employees may also be engaged against
permanent vacancy/ies, provided that such temporary appointment shall not exceed
a period of 3 months from the date of sanction of the vacancy during which necessary
steps will have to be initiated to fill up the vacancy/ies permanently.

Action for filling up the permanent vacancy will have to be initiated immediately on
sanction of the vacancy, so that the appointments can be made within a reasonable
period from the date of creation/sanction of vacancy. The Zonal Office in consultation
with the Head Office may decide about the mode of filling up the permanent vacancy,
either through transfer or by selection of a new candidate from among the temporary
panel/appointment through proper process/the eligible part-time sweepers on graded
Scale wages working in the Branch/Center, as the case may be.

A permanent part time sweeper who has completed a minimum of 5 years of service
and fulfils the eligibility criteria as regards Educational Qualification for appointment
as peon, will be eligible for consideration for the post of peon at the Branch/Office/
Centre, where he/she is working along with other eligible temporary peons and/or
candidates sponsored by the Employment Exchange. The service weightage of a
Part Time Sweeper on graded scale wages as on the date of occurrence of the vacancy
vis-a-vis a temporary subordinate staff will be reckoned after converting the graded
scale service into proportionate full scale service. In case of a tie in service weightage
between a temporary employee and a permanent Part Time Sweeper, preference
shall be given to the latter.

For the purpose of determining service seniority, the total number of completed years
of service including the fraction of a year put in by the Part Time Sweeper on graded
scale wages shall be multiplied by the graded scale i.e. 3/4,1/2,1/3 as the case may
be on which he/she has been working during the corresponding period.

For illustration:- A Part Time Sweeper appointed on 1/3 graded scale wages with
effect from 01.01.1999 converted into 1/2 graded scale with effect from 01.01.2001,
is deemed to have put in [1/3 x 2] + [1/2 x 6] = 3 years as at 01.01.2007.

347
While opening a new Branch/Office, the concerned Zonal Manager/Manager designate
should take action for appointment of a Sub-Staff/PTS or getting a Sub-Staff/PTS
posted to the said Branch/Office simultaneously with the posting of other Staff members
with a view to get the vacancy filled immediately.

Where there is shortage/vacancy on account of the periodic manpower review, Zonal

Offices may, in consultation with the Head Office, advise the concerned branches to
initiate steps for filling up the vacancy. Before rendering such advice, Zonal Offices
should explore all possibilities of filling up the vacancy/ies through internal sources
like redeployment of surplus, or by way of transfer, etc. Wherever it is decided to
recruit candidates against permanent vacancy within the existing sanctioned strength,
till such appointment, Branches may engage temporary employees against the
permanent vacancy/ies strictly in accordance with the standing instructions. It is
reiterated that according to the standing instructions, temporary Sub-staff/PTS can
be engaged on the basis of need and not as a matter of routine. In this regard, the
following existing norms shall have to be strictly observed in the matter of engaging
temporary sub-staff:

a) Where there are 3 or more regular Sub-staff and if the absence of one of the
regular Sub-staff does not exceed 7 days, no temporary Sub-staff shall be
engaged. However, if two of the regular Sub-staff remain absent/are on leave
simultaneously, one temporary Sub-staff can be engaged, even if the absence/
leave of the regular Sub-Staff is 7 days or less. Likewise, if three of the regular
Sub-Staff remain absent/are on leave simultaneously, two temporary Sub-Staff
can be engaged even if the absence/leave of the regular Sub-Staff is for 7 days
or less. However, care should be taken not to grant/ sanction leave to more
than one regular Sub-staff simultaneously.

b) However, in existing Branches/Offices where additional vacancies are

sanctioned, it should be filled up only on regular basis and no temporary
engagement should be made against additional vacancies.

c) Further it should be ensured that: i) Appointment against temporary/permanent

vacancies be invariably made from among candidates duly recruited/
sponsored by Sainik Board/or from the approved panel. ii) Candidates
appointed against temporary/permanent vacancies, should fulfill all the eligibility
criteria for appointment in respect of age, educational Qualifications, roster
point, etc.

348
d) Eligibility criteria so prescribed in respect of Age and Educational Qualification,
is reproduced hereunder for ready reference :

i) Age:-Peon/Armed Guard/Packer-cum-Peon/Driver-cum-Peon

Category Minimum Age (Years) Maximum Age (Years)

General 18 26
SC/ST 18 31
OBC 18 29
OH 18 36
Ex-Servicemen 18 26 + 3 + Actual years of
service in the Defence force
[Maximum Age limit including all relaxations combined together should not
exceed 45 years]
NOTE: For temporary Sub-staff, the age limit prescribed above, has to be
reckoned as on the date of their initial engagement. In other words, the age
of a candidate empanelled for temporary engagement should be within the
maximum age limit prescribed on the date of his initial temporary engagement
and the age as on the date of indent with the Employment Exchange/Sainik
Board or as on the date of Interview/selection of the candidate for empanelment
should not be reckoned for determining the eligibility of a candidate for initial
temporary engagement.
ii) Educational Qualification:
Peon/Packer-cum-Peon/Driver-cum-Peon : A Pass in VIII Standard or its
equivalent but the candidate should not have passed 10+2 examination or its
equivalent (In respect of Ex-servicemen who have rendered service for 3 years
or more in defence, with reading and writing knowledge in Regional Language
is sufficient). (This amendment has been circulated vide PAD, HO Circular
No.120/2005 dated 04.03.2005 and hence the above amendment/ modification
will not be applicable to those eligible sub-staff who are already empanelled for
temporary appointment at branches/offices, as and when their permanent
appointment in the sub-staff cadre of the Bank is taken up for consideration).
It is provided where a temporary employee engaged against a permanent
vacancy continuously, is eventually selected as permanent employee, the period
of temporary service rendered would be considered as part of the period of
probation reckoned from the date of initial appointment in the Bank against
permanent vacancy and order of appointment issued accordingly.
349
APPOINTMENT OF TEMPORARY/PERMANENT SWEEPERS
1 Appointment of part time sweepers on graded scale wages are made depending
upon the floor area of the Branch/Office which requires to be cleaned regularly
by the sweepers.
2 Wages to part time sweepers shall be paid as per the following criteria:
Normal Working Total Carpet area inside Rate of wages payable
hours per week the office premises per month
Up to 13 hours Up to 2000 Sq.ft. 1/3 of the Graded scale
wages with proportionate
annual increment
More than 13 hours 2001 Sq.ft. to 3500 Sq.ft. 1/2 of the Graded scale
to 19 hours wages with proportionate
annual increment
More than 19 hours 3501 Sq.ft. to 5000 Sq.ft. 3/4 of the Graded scale
to 29 hours wages with proportionate
annual increment

Absorption of existing Part time Sweepers on consolidated wages:

The Part time Sweepers who were working on consolidated wages basis in branches/
extension counters and other offices as on 28.02.2006, as a one time measure, were
converted to regular Part time Sweepers on 1/3 graded scale wages, w.e.f. 01.04.2006.
(In substitution of Clause 21 of the Bipartite Settlement dated 2nd June, 2005, w.e.f.
01.11.2007, Part Time Sweepers on consolidated wages and whose normal working
hours per week are ‘upto 3 hours and ‘more than 3 hours but less than 6 hours’ shall
be converted to 1/3 Scale Wages w.e.f. 1st May, 2010. The Part Time Sweepers
recruited on or after 1st May, 2010 in Part Time Scale Wages shall be at minimum of
one third scale wages).

The eligibility criteria for the selection of candidates are as follows:

Educational Qualification : No minimum but the candidate should not have

completed VIII Standard.

(This amendment has been circulated vide PAD, HO

Circular No.110/2006 dated 16.03.2006 and hence the
above amendment/modification will not be applicable
to those eligible Part time Sweepers who are already
empanelled for temporary appointment at branches/
350
 offices, as and when their permanent appointment in
the Part Time Sweeper cadre of the Bank is taken up
for consideration).
Age : Minimum 18 years & maximum 45 years.
Domicile : Candidates should hail from the town/city where the
office is situated.

All graded part time sweepers (1/3, 1/2 & 3/4) are eligible for:

a) Provident Fund
b) Gratuity
c) Encashment of P.L. during L.F.C. / Retirement
d) V.C.S. (death relief scheme of the bank)
e) All kinds of leave
f) Uniform (par with full time staff)
g) Washing Allowance
h) Incentive for small family norms
i) Medical Aid (full)
j) L.F.C. (on pro rata basis)
k) Cost of Newspaper
l) Festival Advance
m) Housing Loan (on pro rata basis)
n) Employee Demand Loan (EDL)
o) Employees’ Clean Overdraft (ECOD) facility
p) Employees’ Secured Cash Credit (ESCC) facility against the security of
consumer durables/Jewellery
q) Consumer Installment Loan
r) All Staff Welfare Schemes

351
APPOINTMENT OF ARMED GUARDS
1. Armed guards in our Bank are provided only to some ‘vulnerable’ branches.
Identification of ‘vulnerable’ branches is done at the Head Office on the
recommendation of the Branch/zone. Some of the factors which are considered
for deciding the ‘Vulnerability’ of the branch are as follows:
a) Crime proneness of the area in which the branch is located
b) General law and order situation in the region
c) Proximity to police station
d) Number of times cash remittances/withdrawals made in a month, place
and distance involved
e) Cash holdings: Maximum, Minimum, Average
f) Whether the branch is catering to the substantial cash requirements of
our nearby branches
g) Whether any incidents of robbery/theft are known to have taken place in
any bank at the concerned location in the past
h) Whether the branches of other banks functioning in that centre have been
provided with armed guards
i) Whether the branch has Safe Deposit Locker facility
j) Any other relevant factor
2. After a branch has been identified as ‘Vulnerable’ and an Armed Guard
sanctioned by the Head Office, the following actions are to be initiated by the
Branches/Zones:
a) Initiate action for recruitment of Armed Guard as per guidelines issued by
Personnel Administration Division. The eligibility norms for Armed Guards
are as follows:
Educational Qualification : The candidate should have passed VIII
Standard but should not have completed
10+2 examination or its equivalent. But
minimum educational qualification should
not be insisted upon in case of Ex-
servicemen who have rendered more
than 3 years of service in Armed Forces.
Minimum height (desirable) : 5’ 8”
Chest : 33” x 36”
Domicile : Candidate should hail/be resident of the
town/ city where the branch is situated.

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Purchase of gun and ammunition
b) The Branch Manager should apply for an Arms Licence for a 12 Bore
Double Barrel Breech Loading (DBBL) shot gun and 50 rounds of
ammunition. The application should be submitted in the appropriate form
to the local arms licensing authority. The licence should be in the name of
the Branch Manager and the name of the Armed Guard should be included
as a ‘retainer’ in the licence.

c) After the arms licence has been issued, a 12 Bore DBBL shot gun and 25
rounds of ammunition may be purchased from an authorised arms dealer.
It would be preferable if a gun manufactured at Indian Ordnance Factory
is purchased. However, if the same is not available, a 12 Bore shot gun of
indigenous manufacture but tested by Indian Ordnance Factories may be
purchased.

Weapon Training of armed guard

1 The Armed Guards recruited are likely to be all ex-servicemen and are expected
to be familiar with firing a 0.303” or a 7.62mm rifle. However, they are not likely
to be familiar with firing a 12 Bore shot gun. It is therefore, necessary that
immediately on recruitment, an Armed Guard should be given a firing practice
with 12 Bore Shot Gun so that he feels confident in handling the weapon.
Thereafter, the firing practice should be given every year so that he remains in
current touch with the weapon. For this purpose, necessary liaison is to be
established with the local police authorities for the allotment of the firing range.
A minimum of 10 rounds are to be fired by the armed guard every year. The
rounds which have been carried by the guard in the cross belt should preferably
be used for firing practice and these should be replaced by new rounds from
the carton.

2 Security Officers are to ensure that the armed guards posted at branches within
their zone are given the annual firing practice with 12 bore shot gun. As far as
possible, they should supervise the conduct of the firing at the Range. A record
of the training imparted to each Armed Guard during a year is to be maintained
by the Security Officer of the Zone and communicated to the Chief Security
Officer at the Head Office for information.

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RECRUITMENT OF SINGLE WINDOW OPERATORS (SWOs – CLERKS)
The vacancies in the Single Window Operators (Clerical cadre) will be filled up by
way of direct recruitment as well as internal promotions.

1. Eligibility norms for Direct recruitment :

Age :
Minimum - 20
Maximum - 28 years*
*Relaxation of upper age limit
Sl.No Category Age relaxation
1 Scheduled Caste/Scheduled Tribe 5 years
2 Other Backward Classes (Non creamy layer) 3 years
3 Persons with Disabilities 10 years (General)
13 years (OBC)
15 years (SC/ST)
4 Ex-Servicemen/Disabled Ex-Servicemen Actual period of
service rendered in
the defence forces +
3 years (8 years for
Disabled Ex-Service-
men belonging to SC/
ST) subject to a
maximum age limit of
50 years.
5 Widows, divorced women and women legally 9 years
separated from their husbands who have not
remarried.
6 Persons ordinarily domiciled in the Kashmir 5 years
Division of the State of Jammu & Kashmir
during the period 01.01.1980 to 31.12.1989
7 Persons affected by 1984 riots 5 years
8 Regular employees of the Union Carbide 5 years
Factory, Bhopal retrenched from service
(Applicable to Madhya Pradesh State only)

354
Educational Qualifications :

Degree in any discipline from a recognized University or any equivalent qualification

recognized as such by the Central Government.

Computer Literacy :

Operating and working knowledge in computer systems is mandatory i.e., candidates

should have Certificate/ Diploma/ Degree in computer operations/ language/ should
have studied computer/ information technology as one of the subjects in the High
School/College/Institute.

Knowledge of Official Language of the State/UT :

Proficiency in the Official Language of the State/UT (candidates should know how to
read/write and speak the Official Language of the State/UT) for which vacancies a
candidate wishes to apply is preferable.
Centre of examination :
As far as possible candidates will be allotted to a centre of his/her choice, however
IBPS also reserves the right to allot the candidate to any of the Centre other than the
one he/she has opted for and a candidate may be allocated a centre of exam outside
the State/UT for which vacancies he/she is applying.
Interview :
IBPS will arrange to conduct common interviews through the panel identified with the
help of Nodal Banks in each State/UT. Weightage of CWE and Interview 80 and 20.
Maximum three times the number of vacancies will be shortlisted for interview.
Minimum qualifying marks in Interview is 40% for General and 35% for SC/ST/OBC/
PWD/EXSM.
Merit List :
IBPS will obtain preference of candidates of all the 20 PSBs after declaration of result
of CWE and Interview and the allotment will be made based on the marks obtained
by the candidates in the CWE and Interview and the Preference of Bank given. The
candidates will be allotted to only one Bank and in the event of candidate not joining
the bank, he/she will be required to compete in the next process.
Wait List :
Wait List not applicable. Bank will inform IBPS the details of candidates who do not
report by the stipulated date and to provide additional list for filling up the unfilled
vacancies left by these candidates. IBPS will draw second list and provide the details
to the Bank after receiving this information from all the banks.

355
2. Mode of Recruitment :
Institute of Banking Personnel Selection (IBPS) will conduct Common Written Exam
(CWE) online with the help of Technology Partner (like TCS) and Nodal Banks. Bank
will provide category-wise vacancies for Probationary Clerks to IBPS. Approximately
three times the number of vacancies will be shortlisted by IBPS for the common
interview. IBPS will declare the scores of candidates who have been qualified in
CWE. IBPS will co-ordinate the conduct of common interview with the help of Nodal
Banks. IBPS will declare the results of interview. Candidates will be asked to provide
their order of preference for Participating banks. Based on the merit and order of
preference of candidates, candidates will be allotted to Participating banks. IBPS will
provide the details of the selected candidates to Banks along with dossiers containing
the documents, pertaining to identity and eligibility submitted by candidates at various
stages of the process. In case vacancies are left unfilled because candidates do not
join the Bank, such candidates will have to compete for the next round of recruitment.
Additional vacancies or unfilled vacancies may be communicated to IBPS and will be
filled from the remaining pool of vacancies

356
APPOINTMENT OF SPECIAL ASSISTANTS
1 Basis: Special Assistants will be posted from among clerical cadre of the Bank
on a Statewise seniority basis.
2 Qualifying service: All employees in the clerical cadre who have put in a
minimum of seven actual years of service as on 1st January of the year in the
Bank in that cadre shall be entitled to be considered for appointment as Special
Assistants. For this purpose, no weightage for educational qualifications will be
added but the period spent by an employee as apprentice shall be included.
3 Employees of Taken-over Bank/s-weightage for past service: The services
of the employees of the taken-over Banks shall be determined by extending
them weightage for their past service in the ratio of 2 :1 i.e., for every 2 years of
actual clerical service (in the erstwhile Bank) commencing from their initial
appointment as apprentice, probationer etc., till the date of take-over as one
year of service in the Corporation Bank.
4 Eligibility: The Bank shall prepare seniority list of employees on State-wise
basis on 1st January of each year and the said list shall be circulated to all the
branches/offices by the end of February, of each year. Such seniority list shall
be based on the actual length of completed years of service of an employee in
the Bank and notional length of service of an employee of a taken - over Bank
as per Clause 3 supra; and also the notional weightage for educational
qualification as per Clause - 5 herebelow. Where two or more employees are
clubbed together in the seniority list, the employee who has longer length of
service shall be declared senior. If, however, the length of service is also equal,
then the employee senior in age shall be declared senior.
5 Notional weightage: Notional weightage for educational qualifications shall be
as under:
i) Pass in Part I of the CAIIB exam : 1 year
ii) Pass in Part II of the CAIIB exam : 2 years
iii) First Graduation or N.D. Com : 2 years
iv) Double/Post Graduation : 1 year
6. Deletion from the seniority list
a) Such of those employees who have been permanently debarred for
consideration for appointment as Special Assistant in terms of the
Settlement dated 4th August, 1981 shall not be included in the seniority
list of eligible employees.

357
 b) Such of those employees who have availed of three ‘opportunities’ will be
excluded from the seniority list and they will not be further called for
interview or be entitled for appointment as Special Assistant any longer.

Note: For the purpose of sub-clause (b) above, an “opportunity” would mean
an opportunity to participate in the Selection Process and an employee would
be deemed to have availed an opportunity when he is called for the interview
and he -

i) Having come within the zone of consideration, i.e., in the ratio of 1:2, fails
to attend the interview.
ii) Attends interview but is found unsuitable for the post. However, if a
candidate appears for the interview and is found unsuitable for the post in
three consecutive processes, he will be appointed as Special Assistant
on the fourth occasion irrespective of his performance in the interview
provided he comes within the zone of consideration for that year.
iii) Fails to accept the offer and consequential posting as Special Assistant
either as per the terms of the Settlement dated 4.8.1981 or under the
existing Settlement on being found suitable/selected in the Interview.
iv) Opts to be in the substantive post in the clerical cadre subsequently after
being selected and posted as Special Assistant.

c) Subject to Sub-clause (b) above, the names of such of those employees

who have been reverted from the Officers cadre at their request shall not
be included in the seniority list for the next two processes after the date of
reversion.

d) Subject to sub-clause (b) above, such of those employees who are posted
as Special Assistants and subsequently opt to be in the substantive post
in the clerical cadre shall not be included in the seniority list for the next
two processes.

7. Request Transfer from one state to another: It is agreed that in case of

transfers on request of clerical cadre employees other than Special Assistants
from one State/Union Territory to another State/Union Territory, the employee
so transferred including optees shall not be eligible for appointment as Special
Assistant for two years from the date of his moving into the other State/ Union
Territory even if he/she is other wise qualified on the basis of seniority.
8. Cadre Strength: The cadre strength of Special Assistants in the Bank shall be
690 as at the end of the year 2006. The future vacancies of Special Assistants
358
 for each successive year shall be determined through mutual discussions
between the parties to the Settlement on or before 30th November of the
preceeding year.
9. It has been agreed that the number of vacancies in each State/Union Territory
will be notified at the commencement of the process of appointment of Special
Assistants.
10. The parties agreed that the Chairman of the Bank shall constitute a panel of
interviewing Committee/s consisting of three Executives of the Bank to determine
the suitability of the eligible employees for filling up the posts of Special Assistants
by conducting an interview.
11. Clerical cadre employees, twice the number of vacancies in the order of seniority
in each State/Union Territory will be compulsorily called for interview for
appointment as Special Assistants and in the case of candidates who fail/refuse
to attend interview, the disqualification clauses of the settlement dated
25.06.1987 shall be applied.
Simultaneously, willingness of the candidates to appear for interview will be
ascertained from the remaining eligible employees in the ratio of 1:3 in the
order of seniority in each State/Union Territory and those candidates who have
expressed their willingness will also be called for interview; to the extent of the
number of employees who fail/refuse to attend interview from among those
compulsorily called for interview. The disqualification in Sub-clause 19 (a) of
the Settlement dated 25.06.1987 shall not be applicable to those who have the
option to appear for interview in terms of this Clause.
12. After completion of the process of interview, the employees who are found
suitable for appointment as Special Assistant shall be listed in the order of
seniority as per seniority list published and postings, effected accordingly.
13. Deleted
14. If the number of employees declared suitable are more than the total number of
vacancies in the State/Union Territory in a particular year, employees found
suitable would be appointed as Special Assistant strictly in accordance with
their seniority.
15. Such of those employees who have been declared suitable but could not be
appointed for want of vacancies in the State/Union Territory will be wait listed
for filling future replacement vacancies, if any. Such wait list will be in force till
the commencement of the next process of appointment of Special Assistants.
The process shall normally commence in March each year.

359
16. If the number of vacancies in a particular State/Union Territory is more than the
number of employees found suitable, such unfilled vacancies shall be filled in
by the employees who have been wait listed in other State/Union Territories for
want of vacancies strictly as per the seniority from among all the wait listed
employees from all States/Union Territories if they opt to go. The remaining
vacancies will be carried forward to the next process.
17. An employee appointed in terms of this Settlement as Special Assistant shall
be on probation for a period of six months from the date of his/her joining as
Special Assistant. For computing the period of six months, the period spent on
leave excluding casual leave shall be excluded.
18. Temporary Entrustment of Duties of Special Assistants: It is mutually agreed
that temporary entrustment of Special Assistant duties at the sole discretion of
the Manager of the Branch shall subject to Clause 19 be entrusted to the clerks
on the basis of seniority after giving due weightage for educational qualifications
as on 1st January of the year on the basis of Clause No. 5 above.
19. Disentitlement of Temporary Entrustment of Special Assistant Duties:
The following conditions are agreed upon between the parties:
a) If an employee who has been called for an interview does not attend the
same without reasonable cause shown in writing in response to the call
letter, he/she shall be deemed to have refused the posting of Special
Assistant and as a consequence will be disentitied for temporary
entrustment of Special Assistant duties/allowance.
b) If an employee who has been found suitable does not accept the
consequential posting as Special Assistant, such unwillingness and/or
refusal on the part of the employee shall amount to declining the offer of
posting as Special Assistant and he/she will in consequence be dis-entitled
for temporary entrustment of Special Assistant duties/allowance.
c) Such of those employees who have been permanently debarred for
consideration for Appointment as Special Assistant in terms of the
Settlement dated 4th August 1981 and under this Settlement shall not be
entitled for temporary entrustment of Special Assistant duties/ allowance.
d) An Employee whose Special Assistant duties are withdrawn for any reason
whatsoever, shall not be eligible thereafter for temporary entrustment of
Special Assistant duties/allowance. An employee who has been reverted
from Officers cadre at his/her request shall not be eligible for temporary
entrustment of Special Assistant duties/allowance for a period of 2 years
from the date of reversion.

360
 e) An employee of clerical cadre other than a Special Assistant transferred
on request/option from one State/Union Territory, to another State/Union
Territory shall not be eligible for temporary entrustment of Special Assistant
duties/allowance for two years from the date of his/her moving into the
other State/Union Territory even if he/she is otherwise qualified on the
basis of seniority.
20. Any request for transfer from one State to another made by a Special Assistant
may be considered by the Management at its discretion subject to availability of
suitable vacancies in the State applied for.
21. Disciplinary Proceedings pending against the employees-procedure to
be followed: Results of those candidates for the post of Special Assistants
who are suspended or against whom any disciplinary proceeding for gross
misconduct is pending or any criminal case for offences involving moral turpitude
is pending in a court of law shall be withheld, till the final outcome of such
proceedings. If such charge/s is/are proved and punishment is awarded for
gross misconduct/the employee convicted for the criminal offence, the
assignment of duty of Special Assistant, shall be deferred for a period of two
years from the date of awarding the punishment/date of conviction.
However, if the employee is exonerated and comes within the ranking list, he/
she will be considered for assignment of duties of Special Assistant from the
date on which he/she otherwise would have been considered but for the charge
sheet. If the punishment such as censure/warning/adverse remark is imposed,
the assignment of duties of Special Assistant shall be from the date of imposing
such punishment.
22. Removal of Doubts & Difficulties: If any doubts or difficulties arise in
interpreting or implementing any or all the terms of this Settlement, the same
shall be decided at the Bank and the Workmen Union level and if the parties
here to do not arrive at a mutually agreed decision, the Central Government
shall be moved by the parties jointly for application of Section 36A of the Industrial
Disputes Act, 1947 for reference to the Labour Court or for Tribunal for proper
interpretation of the terms under dispute.
23. Amendment: In the course of the working of this Settlement if it is found desirable
by the parties here to, to amend any of the terms relating to procedural difficulty,
it shall be open to any of the parties hereto to jointly evolve necessary guidelines
so as to remove the difficulty and further the object of this agreement. The
decision of the Bank and the Workmen Union, who are parties to this Settlement,
shall be final and binding.

361
RECRUITMENT OF GENERAL PROBATIONARY ASSISTANT MANAGERS
(OFFICERS IN JMG SCALE – I)
The number of vacancies declared in the General Probationary Assistant Managers’
cadre in Junior Management Grade Scale -I (other than specialist officers) are to be
filled by way of direct recruitment as well as by internal promotions.

1. Recruitment Directly from Market by open competition:

1.1 Eligibility norms under “by open competition” for General Probationary
Assistant Managers in Junior Management Grade Scale –I

1.2 Age : Minimum : 20 years

Maximum : 28 years*
*Relaxation of upper age limit:

Sl.No. Category Age relaxation

1 Scheduled Caste/Scheduled Tribe 5 years
2 Other Backward Classes (Non creamy layer) 3 years
3 Persons with Disabilities 10 years
4 Ex-Servicemen, Commissioned Officers including 5 years
Emergency Commissioned Officers (ECOs)/ Short
Service Commissioned Officers (SSCOs) who have
rendered at least 5 years military service and have
been released on completion of assignment (including
those whose assignment is due to be completed
within one year from the last date of receipt of
application) otherwise than by way of dismissal or
discharge on account of misconduct or inefficiency
or physical disability attributable to military service
or invalidment
5 Persons ordinarily domiciled in the Kashmir Division 5 years
of the State of Jammu & Kashmir during the
period 01.01.1980 to 31.12.1989
6 Persons affected by 1984 riots 5 years
In case of a candidate who is eligible for relaxation under more than one of the
above categories, the age relaxation will be available on a cumulative basis
with any one of the remaining categories for which age relaxation is permitted
as mentioned above.

362
1.3 Educational Qualifications :
Degree with 60% (55% for SC/ST/PWD) marks in any discipline from a
recognized University or any equivalent qualification recognized as such by the
Central Government. Computer Literacy: Operating and working knowledge in
computer systems is mandatory i.e., candidates should have Certificate/ Diploma/
Degree in computer operations/ language/ should have studied Computer/
Information Technology as one of the subjects in the High School/College/
Institute.
1.4 Mode of Recruitment :
Institute of Banking Personnel Selection (IBPS) will conduct Common Written
Exam (CWE) online with the help of Technology Partner (like TCS) and Nodal
Banks. Bank will provide category-wise vacancies for Probationary Officers to
IBPS. Approximately three times the number of vacancies will be shortlisted by
IBPS for the common interview. IBPS will declare the scores of candidates
who have been qualified in CWE. IBPS will co-ordinate the conduct of common
interview with the help of Nodal Banks. IBPS will declare the results of interview.
Candidates will be asked to provide their order of preference for Participating
banks. Based on the merit and order of preference of candidates, candidates
will be allotted to Participating banks. IBPS will provide the details of the selected
candidates to Bank along with dossiers containing the documents, pertaining to
identity and eligibility submitted by candidates at various stages of the process.
In case vacancies are left unfilled because candidates do not join the Bank,
such candidates will have to compete for the next round of recruitment. Additional
vacancies or unfilled vacancies may be communicated to IBPS and will be filled
from the remaining pool of vacancies.
2. Recruitment through Campus :
2.1 The Bank, may, in any particular year, depending upon the requirement of
Officers, recruit, by way of campus recruitment, up to 40% of the vacancies
earmarked for direct recruitment from accredited, reputed institutions/Colleges
(NAAC accredited “B+” and above) or deemed Universities.
The Chairman and Managing Director and in his absence Executive Director
shall be the competent authority to approve the operational modalities for the
process including the institutions to be visited, the subject and courses to be
included in each process etc.
2.2 Eligibility norms : Age and educational qualifications shall be as applicable in
the case of direct recruitment of General Probationary Assistant Managers,
363
 save marks scored in IBPS conducted Common Written Exam/ Bank conducted
exam. The Mode of selection shall be either Group Discussion or Written Test
based on the number of candidates and Interview. The relaxation in age,
qualification in respect of candidates belonging to reserved category shall be
as applicable to General Probationary Assistant Managers (PAM).

2.3 Merit List :

Merit list of candidates securing a minimum of 40% (35% in case of SC/ ST/
OBC/ PC candidates) in interview shall be drawn. Reservation as per extant
Govt. guidelines shall be ensured.

2.3 Wait List :

After preparing merit list of candidates equal to the number of vacancies

earmarked for campus recruitment as above for appointment, a waiting list of
remaining qualified candidates (who pass in test and interview) will be drawn.
The wait list will be valid for a period of one year from the date of declaration of
results or till the declaration of the results of next process, whichever is earlier.
The waitlist shall be utilised to fill the consequential replacement vacancies
arising out of those who have not joined, joined and resigned in the same
recruitment year, from the merit list/ wait list. Replacements in such an event
shall be from the same category due to which the vacancy arose.

364
 CHAPTER - II
PROMOTIONS
POLICY ON PROMOTION OF SUBORDINATE STAFF TO CLERICAL CADRE
1. Eligibility:
1.0 Employees in the full-time subordinate staff cadre who fulfill the criteria laid
down in Sub-Clause (a) or (b) or (c) below, shall be eligible for consideration for
promotion to clerical cadre.
a) Pass in SSLC or equivalent examination and on completion of 52 actual
years of service in the Bank as full-time subordinate staff; service reckoned
from the date of entry in the service of the Bank as subordinate staff.
b) Pass in VII Standard examination and above and on completion of seven
actual years of service in the Bank as full time subordinate staff as on the
31st day of January of the calendar year.
c) Completion of twenty actual years of service in the Bank as full-time
subordinate staff as on the 31st day of January of the calendar year.
d) Pass in Graduation from University/Open University which is recognized
by the UGC, after joining the Bank and completed 3 years service as on
1st day of January of the calendar year.
1.1 In computing the actual length of service, the period of probation as subordinate
staff in the bank shall be taken into account but not any temporary and/or part-
time service.
1.2 For employees of taken-over Banks, the actual length of service shall be
computed by giving weightage for their past service in the erstwhile Bank in the
ratio of 2:1 i.e., for every two years of actual service commencing from their
initial appointment as probationer till the date of take-over, as one year service
in Corporation Bank.
2.0 Basis for promotion:
2.0 The Bank, subject to the provisions hereinafter contained, shall promote a
subordinate staff, who is eligible in terms of clause 1 above, to clerical cadre,
provided he qualified himself as stipulated hereinafter and is not disqualified
pursuant to clause 4.3 below.
2.1 Subordinate staff who have passed SSLC or equivalent examination
and have completed the minimum prescribed length of service i.e.,
52 years of service.
365
Subordinate staff falling under this category will be promoted to the clerical cadre
without undergoing the process of written test or interview, subject to the following:
a) The number of posts for promotion to clerical cadre under this category i.e. in
respect of employees who pass in SSLC or equivalent examination and complete
52 actual years of service in the Bank as full time subordinate staff, shall be
restricted to 18 (Eighteen) per Financial year.
b) The unfilled vacancies under this category, if any, will not be carried forward to
the succeeding or subsequent years.
c) For the purpose of reckoning the seniority for such promotions, the date of
application submitted by the eligible employee, along with the certificate of having
passed the relevant examination, through the Branch/Office where he/she is
working shall be the basis. The applications so received during any particular
month would be processed by the 10th of the succeeding month strictly as per
seniority assigned in terms of date of application.
d) Applications received from eligible candidates seeking promotion after filling up
18 posts as aforesaid, would be waitlisted in the order of seniority with reference
to the date of application, to be processed during the succeeding Financial
year/subsequent financial years.
e) Their confirmation in the clerical cadre shall, however, be subject to their
satisfactory completion of probationary period and their passing a departmental
written test as laid down in Clauses 4.2.1 and 4.2.2 below.
2.2 Subordinate Staff who have passed VII standard examination and above
and have completed the minimum prescribed length of service i.e., 7 actual
years of service.
Subordinate staff falling under this category will be promoted to the clerical
cadre provided they pass the written test and secure the minimum marks
stipulated herein below under the heads - Interview and Service Record.
a) Written Test:
i) The Bank will hold a written test in March or thereabouts every year
and the centres for conducting the test will be notified in advance.
The Bank will by February every year call for applications from eligible
employees in terms of Clause 1.0(b) above to indicate their intention
to appear for the said test. Employees who are required to leave
their place of work and proceed to centres where tests are scheduled
to be conducted shall be paid travelling allowance and halting
allowance in terms of the Bipartite Settlement.

366
 ii) Subjects for the written test: The Subjects for the written test and
the maximum marks will be as under:
Maximum Marks
Paper-I : Banking Practicals 100
Paper-II : Arithmetic 100
Paper-III : General English 100
Note: Employees are permitted to answer paper I and II in Hindi, if they
so desire.
iii) Minimum marks to be scored for passing the written test: In
order to be declared as having passed the written test, an employee
shall score a minimum of 30 percent marks in each paper mentioned
in sub-clause (ii) above, and also secure an aggregate minimum of
35 percent in all the three papers.
Note: In the case of employees belonging to SC/ST category, in order to
be declared as having passed the written test, the employees shall
score a minimum of 25 percent marks in each paper specified in
sub-clause (ii) above and secure an aggregate minimum of 30 percent
in all the three papers.
b) Interview/weightage for Service Record:
Only those employees who pass the written test will qualify for interview.
The interview will be conducted by a panel constituted by the Chairman &
Managing Director/Executive Director of the Bank. Marks for interview
and service record shall be awarded under the following heads, subject to
a maximum under each head as below :
PART I - INTERVIEW
Maximum Marks
a) General Knowledge of Bank work 10
b) Personality/speech 10
TOTAL 20
PART II - SERVICE RECORD
Maximum Marks
a) General Service Record /work performance 20
b) Health / Leave Record 10
TOTAL 30

367
 In order to qualify for promotion to the clerical cadre, an employee should score
a minimum of 30 percent marks in each of the heads under Part I and Part II
above and also obtain an aggregate of 35 percent in both the parts.
Note:- In the case of employees belonging to SC/ST category, in order to qualify
for promotion to the clerical cadre, the employee should score a minimum of 25
percent marks in each of the heads under Part I and Part II above and also
obtain an aggregate minimum of 30 percent in both the parts.
2.3 Subordinate Staff, who have completed twenty actual years of service in
the Bank as on 31st January of the year.
Sub-ordinate staff falling under this category will be promoted to the clerical
cadre, provided they secure the minimum marks stipulated herein below under
the heads interview and service record. The employees who are required to
leave their place of work and proceed to centres where interviews are scheduled
to be conducted shall be paid travelling allowance and halting allowance as per
the provisions of the Bipartite Settlement.
a) Interview/weightage for service record:
The interview will be conducted by a panel constituted by the Chairman and
Managing Director/Executive Director of the Bank.
Marks for interview and service record shall be awarded under the following
heads, subject to a maximum under each head as below:
PART I - INTERVIEW
Maximum Marks
a) General Knowledge of Bank work 30
b) Personality/speech 10
TOTAL 40
PART II - SERVICE RECORD
Maximum Marks
a) General Service Record /work performance 40
b) Health / Leave Record 20
TOTAL 60
In order to qualify for promotion to the clerical cadre, an employee should score
a minimum of 30 percent marks in each of the heads under Part -I and Part - II
above and also obtain an aggregate of 35 percent in both the parts.

368
 Note: In the case of employees belonging to SC/ST category, in order to qualify
for promotion to the clerical cadre, the employee should score a minimum of 25
percent marks in each of the heads under Part - I and Part - II above and also
obtain an aggregate minimum of 30 percent in both the parts.

b) Ranking list:

Employees who have secured the minimum marks prescribed under each of
the heads shall be ranked according to the aggregate marks secured.

c) Number of posts:

The number of posts for promotion to clerical cadre under this category will be
restricted to 10 (ten only) in each calendar year by calling for interview, candidates
in the ratio of 2:1 in the order of seniority, from amongst the eligible candidates
exercising option and the posts will be filled strictly on the basis of (b) above. In
case of a tie in the Marks, inter-se seniority shall be the deciding factor.

d) Posting to Computerised Branches:

Employees promoted under this category in case they are posted to

computerised branches, shall not be eligible for entrustment of computer
operation duties in the first 2 years after promotion and that thereafter depending
upon their aptitude and suitability, they may be included for such duties on
rotation basis.

2.4 Subordinate staff who have acquired degree in Graduation from University/
Open University which is recognized by the UGC, after joining the Bank
and completed 3 years of regular service as on 1st day of January of
calendar year

a) The eligible candidates have to undergo a specified Computer Course for

3 months duration after working hours at Bank’s cost
b) Thereafter, the eligible candidates will have to undergo the process of
Interview before the panel of interviewers.

3.0 Relaxation/Weightage in respect of Ex-Servicemen Category Employees:

In the case of Ex-Servicemen employees who are recruited in the subordinate

staff cadre, relaxation in eligibility criterion will be accorded for the period of
service rendered by them in the Armed Forces in the ratio of 5:1 subject to a
maximum of 2 years. This benefit will be available to the ex-Servicemen only
once during their career.

369
4.0 General conditions applicable to all categories of promotions from
subordinate staff to clerical cadre.
4.1 Probationary Period:
An employee promoted in terms of this Settlement shall be on probation for a
period of six months. Probationary period will be extended on account of availing
leave only when:
a) employees is on leave of any kind other than Casual Leave for an aggregate
period of more than 30 days during the probationary period. In such case
the probationary period will be extended to the extent of actual period of
leave.
b) employee is on leave on loss of pay and/or extra-ordinary leave without
pay and allowances (except on medical grounds duly supported by medical
certificate). The period of probation will be extended to the extent of actual
period of such leave.

4.2.1 Confirmation:
An employee promoted to the Clerical cadre in terms of this Settlement shall be
confirmed in the service, if in the opinion of the Competent Authority, he/she
has satisfactorily completed the probationary period. Such of those employees
whose work and progress are found to be not satisfactory during the period of
probation are liable for reversion to their substantive post in the subordinate
cadre.
4.2.2 In the case of subordinate staff promoted to clerical cadre in terms of clause 2.1
above, their confirmation shall further be subject to their passing a departmental
written test to be conducted during the probationary period. If the employee
does not come out successful at the said written test, he/she will be reverted to
the substantive post in the subordinate cadre. Such reverted employees are,
however, eligible to undergo the promotion process namely, written test,
interview, etc., as prescribed for candidates eligible under clause 2.2 in the
year/s succeeding their reversion.
4.3 Disqualification:
4.3.1 In the case of an employee against whom disciplinary/court proceedings are
pending though he/she is qualified to be promoted pursuant to this Settlement:
– his/her promotion shall be kept in abeyance till the departmental/court
proceedings are completed;

370
 – If he/she is found guilty of the charges, the promotion shall not be given
effect to;
– If he/she is exonerated of the charges or is honorably acquitted by the
Courts of Law, the promotion shall be given effect to from the date on
which he/she would have otherwise been promoted, but for the pendency
of the disciplinary/court proceedings; and
– If the punishment awarded in such disciplinary proceedings is only warning
or censure or entry of an adverse remark in the Service Record, he/she
shall be promoted from the date of infliction of the punishment.
4.3.2 An employee, who has been punished for gross misconduct under the provision
of Bipartite Settlement shall not be eligible to participate in the promotion process
for a period of two years from the date of infliction of the punishment. This,
however shall not apply to cases where the punishment awarded is only that of
warning or censure or entry of an adverse remark in the Service Record of the
employee.
4.4 Declaration of Written Test marks:
An employee who has not come out successful in the Written Test may, if he/
she so desires, within 30 days of the announcement of the results of the written
test, make an application in writing to the Management to furnish him/her the
marks obtained by him/her in the written test and the Management shall furnish
the same to him/her.
4.5 Appeal:
If an employee is aggrieved that his/her claim for promotion in terms of settlement
has been overlooked he/she shall have a right to appeal to the Chairman and
Managing Director / Executive Director of the bank within 45 days of publication
of the list of promotees.
4.6 Amendments:
In the course of working of this Settlement, if it is found desirable by the parties
hereto, to amend any of the terms relating to procedural difficulties, it shall be
open to the parties hereto to jointly evolve necessary guidelines, so as to remove
the difficulty and further the object of this Settlement.
4.7 Removal of doubts and difficulties:
If any doubts or difficulties arise in interpreting or implementing any or all the
terms of this Settlement, the same shall be decided by the parties to this
Settlement and if the parties hereto do not arrive at a mutually agreed decision,
371
 the Central Government shall be moved by the parties jointly for application of
Section 36-A of the Industrial Disputes Act, 1947 for reference to the Labour
court or Industrial Tribunal for proper interpretation of the terms under dispute
within 15 days from the date of such decision.
4.8 Period of Settlement:
This Settlement shall come into operation from the date of signing and shall be
in force for a period of 3 years from the date of signing and shall continue to be
in force until the expiry of sixty days from the date of notice given in writing by
either party of their intention to terminate this Settlement.
*****

372
POLICY ON PROMOTION FROM CLERICAL TO OFFICER’S CADRE IN
JUNIOR MANAGEMENT CADRE SCALE - I
Promotion from the Clerical Cadre to Officers’ Cadre in Junior Management Grade/
Scale-I will be made on All India basis and there shall be two channels for promotion
viz., INTERVIEW CHANNEL AND TEST-CUM-INTERVIEW CHANNEL. Under the
Test-cum interview channel, there shall be a ‘FAST TRACK CHANNEL’.
The vacancies available for internal promotions as above shall be filled up as follows:
i) Interview Channel - 25%
ii) Test-cum-Interview Channel - 75%
Out of (ii) above, 40% of the vacancies will be available for the Fast Track Channel.
02. ELIGIBILITY:
Interview Channel Test-cum-Interview Channel
Employees, not exceeding the age of 58 Employees not exceeding the age of 58
years, in the Clerical Cadre including the years, in the Clerical Cadre including the
Special Assistants, who have passed Special Assistants, who have passed
SSLC or equivalent examination and SSLC or equivalent examination and
have put in a minimum of fifteen actual have put in a minimum of four actual
years of service in the Clerical Cadre years of service in the Clerical Cadre,
including the period of Apprenticeship in including the period of Apprenticeship in
the Bank as on 30th November each year the Bank as on 30th November each
shall be eligible for consideration for year, shall be eligible for consideraion for
promotion to the Officers’ cadre in promotion to the Officers’ Cadre in
Junior Management Grade/Scale I, in Junior Management Grade/ Scale-I in
accordance with the terms of this accordance with the terms of this
Settlement. For the purpose of this Settlement. For the purpose of this
clause, no weightage for educational Clause, no weightage for educational
qualification will be added. For the qualification will be added. For the
purpose of determining the eligibility, the purpose of determining the eligibility, the
period of service, if any, as a subordinate period of service, if any, as a sub-ordinate
staff shall not be taken into account. Staff shall not be taken into account.
Candidates eligible to participate and All candidates eligible to participate for
who have given their consent for such promotion and have given their consent
participation in the Interview Channel will excluding those who come within the
be considered to the extent of four times zone of consideration for participation
of number of vacancies, in the order of under Interview Channel shall undergo
seniority under each category i.e., the process under this Channel.
General, SC, ST, etc.

373
WEIGHTAGE FOR EX-SERVICEMEN

Ex-Servicemen employees who are directly recruited against posts reserved in

Clerical Cadre may avail EITHER relaxation in minimum eligibility in terms of service,
as per Sub-Clause (a), OR avail weightage for service in terms of marks as per Sub-
Clause (b) here-in-below:

(a) Weightage for eligibility in the ratio of 5:1 i.e., for every completed 5 years of
service in the defence force, 1 year of service in the Bank subject to a maximum
weightage of 2 years after they have rendered atleast 3 actual years of service
in the bank after re-employment.
OR
(b) Weightage of marks @ 1.25 marks for every completed year of service in the
defence force, subject to a maximum of 15 marks and these marks will be
added to the marks secured by the employees for the actual service in the
Clerical Cadre in the Bank provided, however, the aggregate maximum marks
for Service and qualifications shall be limited to 150 and 130 in the Interview
Channel and Test-cum-Interview Channel, respectively.
Note: An Ex-Serviceman employee who avails relaxation in minimum eligibility in
terms of service under Sub-Clause (a) above for being considered for promotion
under either channel will not be eligible for weightage for service in terms of marks
prescribed in Sub-Clause (b).

03. PROCESS OF PROMOTION :

i) The Bank shall hold Promotion process in January or thereabout every year
and the centres for conducting the promotion will be notified in advance.
ii) The Bank shall, by 15th December every year, call for applications from eligible
employees in terms of Clause 2 above to indicate their intention to appear for
promotion process.

NOTE : Employees who are required to leave their place of work and proceed
to centres where test/interview are scheduled to be conducted shall be paid
Travelling Allowance and Halting Allowance in terms of the Bipartite Settlement
in force. Reasonable Conveyance Expenses incurred by local candidates will
also be reimbursed. Employees who are appearing for the promotion test /
interview are also eligible for reimbursement of 60% of the lodging expenses
presently reimbursable to the Officers in JMG Scale I subject to the guidelines
contained in H.O. Circular No. 102/2007 dated 12.02.2007 (Index No. 19.00/
04/2007).

374
iii) Employees who are eligible to undergo promotion process under Interview Channel
and are willing to undergo the process under the said Channel, shall indicate their
preference in the relevant space provided for the purpose in the application.
iv) After scrutiny of applications, a seniority list of employees in each category i.e.,
General, SC, ST, etc., who opted for promotion under the Interview channel
shall be prepared and the list of candidates eligible to participate for promotion
under the said Channel in each category in the ratio of 4:1 (4 candidates for 1
vacancy) in the order of seniority shall be published. The remaining candidates
who have indicated their intention to appear for promotion under the said Channel
shall undergo promotion process under the Test-cum-Interview Channel.
v) The Bank shall, subject to availability of vacancies, promote an employee eligible
in terms of Clause 2 above to Junior Management Grade-Scale I, provided he/
she qualifies himself/herself, in the following manner and is not disqualified
pursuant to Clause 7 below:

Interview Channel Test-cum-Interview Channel

(A) Appears before an Interview Panel (A) Passes the prescribed Written Test
and qualifies in interview by securing in the subjects by scoring a minimum of
40% marks i.e., 20 marks out of 50 marks 35% each in Paper I & Paper II and 30%
allotted for Interview and obtain marks in Paper III and also a minimum aggregate
under the heads of weighted Service total of 110 marks in all the three papers.
& Qualification out of maximum marks NOTE:
of 200 under these heads.
For candidates from SC/ST Community,
NOTE: the qualifying marks shall stand relaxed
For candidates from SC/ST Community, to 30% each in Paper I & Paper II and
the qualifying marks for interview stand 25% in paper III and minimum aggregate
relaxed to 35% i.e., 17.5 marks out of 50 total of 90 marks in all the three papers.
marks. (B) Appears before an Interview Panel
and obtains marks under the heads of
Interview, weighted Service & Qualification
out of the maximum marks of 200 under
these heads.

375
04. Weightage for various factors:
Interview Channel Test-cum-interview Channel
(A) Interview : Maximum Marks : (50) (A) (I) Written Test: Maximum Marks: (300)
Areas of Interview Subjects Maximum No. of Duration
Marks Questions &Type
Knowledge in Practical Banking, Financial
and General Awareness, Communication Paper I 100 100 1 hour
Skills, Clarity of thought, Motivation Level, Banking Law objective
& Practice
Analytical ability, Reasoning, etc.
Paper II 100 100 1 hour
Preparation & objective
Analysis of
Balance Sheet
and Profit &
Loss Accounts;
Hand Book of
Instructions,
Circulars; Current
Banking Trends.
Paper III 100 — 1 hour
English Descriptive
Financial/Economy
related questions
consisting of all or
some of the following
Precis writing Suppressed passage Letter/
Essay writing Comprehension passage and
other short answer type questions, to test
communicative ability.
NOTE:
1. Candidates are permitted to Answer
paper I & paper II in Hindi if they desire
so.
2. There shall be an interval of 15 minutes
between each Paper.
(A) II. Interview: Maximum Marks (50)
Areas of Interview:
Knowledge in Practical Banking, Financial
and General Awareness, Communication
Skills, Clarity of thought, Motivation Level,
Analytical ability, Reasoning, etc.

376
 Interview Channel Test-cum-interview Channel
(B) Weightage for Maximum (B) Weightage for Maximum
Service and Marks Service and Marks
Qualification (150) Qualification (130)
(a) Service : (a) Service :
5 marks for each completed year of 5 marks for each completed year of
service in clerical cadre upto and service in clerical cadre upto and
including 12 years and thereafter 10 including 12 years and thereafter 10
marks for each additional completed marks for each additional completed
year of service in that cadre, subject to year of service in that cadre, subject to
a ceiling of 150 marks. a ceiling of 130 marks.
NOTE: Service of 6 months and above
NOTE: Service of 6 months and above
will be accorded weightage of one full
will be accorded weightage of one full year; service of less than 6 months will
year; service of less than 6 months will be ignored.
be ignored
(b) Educational Qualification: (b) Educational Qualification:
i) For First Graduation i) For First Graduation
or N.D.Com. 10 or N.D.Com. 10
ii) For Part I CAIIB or ii) For Part I CAIIB or
CAIB or JAIIB 10 CAIB or JAIIB 10
iii) For Part II CAIIB or iii) For Part II CAIIB or
CAIB 15 CAIB 15
iv) For Double/Post iv) For Double/Post
Graduation 10
Graduation 10
Provided however, the aggregate
Provided however, the aggregate maximum marks for service and
maximum marks for service and qualification will be limited to 130.
qualification will be limited to 150.
(C) Marks for passing Written
test on earlier occasions* 20
* Employees who have passed the
written test and were ranked but could
not be promoted in any of the preceding
seven promotion processes, would be
awarded a maximum weightage of 20
marks at the rate of 5 marks for each
occasion.

NOTE: The Interview Panel shall be constituted by the General Manager (Admn.)
of the Bank.

377
05. RANKING LIST:
a) (i) Interview Channel:
Candidates who have appeared for Interview under Interview Channel
and have secured 40% marks (35% in the case of SC/ST candidates) in
the Interview, shall be ranked according to the aggregate marks secured
in the Interview, Service & Qualification in the order of merit under each
category i.e. General, SC, ST, etc.
ii) Test-cum-interview Channel:
Candidates who have passed the Written Test and appeared for the
Interview under the Test-cum-Interview channel shall be ranked according
to the aggregate marks secured in the Written Test, Interview, Service &
Qualification and marks for passing test on earlier occasions in the order
of merit.
Initially, a common ranking list of employees who have passed the written
test by securing atleast the stipulated qualifying marks, shall be drawn up
taking into consideration the marks scored by them under the following
parameters:
[i) Written Test
[ii) Service & Qualification
[iii) Interview
[iv) Weightage for Written Test passed on earlier occasions.
Candidates who come within the ranking to the extent of vacancies
available for promotion under the Test-cum-interview Channel (i.e. within
the 60% of the total vacancies earmarked for Test-cum-Interview Channel)
shall be selected.
After the above process is completed, the ranking list for ‘Fast Track’ sub-
channel will be drawn up from the remaining successful candidates to the
balance extent of 40% of the vacancies available under the ‘Test-cum-
Interview’ channel, based on the marks secured by them in the following
parameters:
[i) Written Test
[ii) Qualification
[iii) Weightage for Written Test passed on previous occasions.
[iv) Interview
Candidates who come within the ranking to the extent of vacancies
available for promotion under the ‘Fast Track’ sub- channel, will be selected.
Thus, all the eligible employees who qualify in the Written Test are eligible
378
 for selection under the Test-cum-Interview Channel and Fast Track sub-
channel.
To illustrate:
A. Total number of vacancies available through
Internal Promotions : 100
B. No. of vacancies earmarked for Interview Channel : 25 (25% of A)
C. No. of vacancies available for Test-cum Interview
Channel : 75 (75% of A)
D. Out of ‘C’ above, number of vacancies available
for ‘Fast Track’ sub-channel : 30 (40% of C)
Assuming 500 candidates have appeared for the written test and out of
them 300 have passed the Test by securing stipulated qualifying marks,
the ranking will be initially done based on marks secured in Written Test,
Service & Qualifications, weightage for Written Test passed on earlier
occasions and Interview. Candidates ranked 1 to 45, shall be selected.
The remaining 255 candidates who had come out successful in the Written
Test, shall be ranked based on their marks in Written Test, Interview,
Qualifications and weightage for written test passed on earlier occasions.
Candidates who are ranked from 1 to 30 on the basis of these parameters
will be selected.
The number of declared vacancies earmarked under each Channel shall
be filled from time to time, strictly on the basis of ranking. If any vacancy
earmarked for promotion under Interview Channel cannot be filled under
the said Channel on account of non-availability of suitable candidates in
the ranking list/s drawn under each category i.e., General, SC, ST, etc.,
such vacancies shall be filled from the ranking list/s drawn under the Test-
cum-Interview Channel in the respective category.
b) In case of a tie in the marks, inter-se seniority shall be the deciding factor.
If the date of joining is the same, the date of birth shall be the deciding
factor.
c) The ranking list shall lapse on the day when immediate next promotion
process commences. Vacancies arising on account of refusal / failure to
accept the offer of appointment on promotion and/or voluntary reversion
by the employee during his probationary period before commencement of
the immediate next promotion process, will be filled up from the respective
ranking list.
d) Those employees whose names were in the ranking list but were not
promoted will have to undergo the promotion process afresh as per Clause
3 (v) above.
379
06. RESERVATION AND RELAXATION TO EMPLOYEES BELONGING TO
SCHEDULED CASTES/SCHEDULED TRIBES:

The guidelines/directives issued by the Government of India from time to time

in the matter of reservation of posts and/or relaxation of eligibility norms
applicable for promotion from Clerical Cadre to Officers’ Cadre in Junior
Management Grade- Scale I for SC/ST employees may be read as part of the
Policy and shall be given effect to by the Management.

07. DISQUALIFICATION :

7.1 An employee against whom disciplinary/court proceedings are pending

shall be entitled to participate in the promotion process. In case he/she is
qualified to be promoted and his ranking falls within the declared vacancies
pursuant to Clause 5 of this Settlement,
- his/her promotion shall be kept in abeyance till the departmental/
court proceedings are completed;
and
- if he/she is found guilty of charges, the promotion shall not be given
effect to;
OR
- if he/she is exonerated of the charges or is honourably acquitted
by the Court of Law, the promotion shall be given effect to from the
date on which he/she would have otherwise been promoted but for
the pendency of the disciplinary/court proceedings;
OR
- if the punishment imposed in such disciplinary proceedings is only
warning or censure or entry of an adverse remark in the Service
Record or stoppage of increment for a period not exceeding 6 months
he/she will be promoted from the date of imposing the punishment.

7.2 An employee, who has been punished for gross misconduct under the provisions
of Bipartite Settlement shall not be eligible to participate in the promotion process
for a period of two years from the date of infliction of the punishment. This,
however, shall not apply to cases where the punishment awarded is only that of
warning or censure or stoppage of increment for a period not exceeding 6 months
or entry of an adverse remark in the Service Record of the employee.

380
08. COMMENCEMENT OF PROMOTION PROCESS:

The promotion process shall be deemed to commence on the date of issue of

the Circular by the Bank calling for applications from eligible employees to
participate in the Promotion Process.

09. PROBATIONARY PERIOD:

An employee promoted in terms of this Settlement shall be on probation for one

year, which may be extended by further period not exceeding one year.

10. CONFIRMATION:

An employee promoted to the Officers’ Cadre in terms of this Settlement shall

be confirmed in the service if, in the opinion of the Competent Authority, he/she
has satisfactorily completed the probationary period. There shall, however, be
no test during the period of probation, for the purpose of confirmation.

11. REVERSION:

Such of those Probationary Officers whose work and progress are not satisfactory
during the period of probation are liable for reversion to their substantive post in
the Clerical Cadre.

As also, those probationary officers who seek reversion on their own volition
during the period of probation shall be granted reversion to their substantive
post in the Clerical Cadre.

12. APPEAL :

If an employee is aggrieved that his claim for promotion in terms of this Settlement
has been overlooked, he/she will have a right to appeal to the General Manager
(Admn.) of the Bank within 45 days of publication of the list of promotees and
the appeal shall be disposed of within 45 days from the date of receipt of the
same.

13. DECLARATION OF MARKS:

i) An employee who has not come out successful in the Written Test may, if
he/she so desires, within 30 days of the announcement of the results of
the written test, make an application in writing to the Management to furnish
him/her the marks obtained by him/her in the test and the Management
shall supply the same to him/her.

381
 ii) An employee who has been ranked but not promoted, if he/she so desires
and makes an application in writing, shall be furnished with the marks
obtained by him in different parameters except that of Interview.

14. TRANSFER:

For all employees promoted to the Officers’ Cadre, transfer to any of the Bank’s
branches in India will be a part of general service conditions.

15. DIRECT RECRUITMENT:

The Bank shall have the right to recruit every year, Officers by direct recruitment
to the extent of 25% of the declared vacancies in the Junior Management Grade/
Scale I. This direct recruitment shall be in addition to the recruitment of Specialist/
Technical Officers such as Chartered Accountants, Law Officers, Personnel
Officers, Veterinary Doctors, Technical Officers in the field of Agriculture/
Engineering, etc..

16. AMENDMENTS:

In the course of working of this settlement, if it is found desirable by the parties

hereto, to amend any of the terms relating to procedural difficulties, it shall be
open to any of the parties hereto to jointly evolve necessary guidelines, so as
to remove the difficulty and further the object of this Settlement.
17. REMOVAL OF DOUBTS AND DIFFICULTIES:
If any doubts or difficulties arise in interpreting or implementing any or all of the
terms of this Settlement, the same shall be decided by the parties to this
Settlement and if the parties hereto do not arrive at a mutually agreed decision,
the Central Government shall be moved by the parties jointly for application of
Section 36-A of the Industrial Disputes Act, 1947 for reference to the Labour
Court or Industrial Tribunal for proper interpretation of the terms under dispute,
within 15 days from the date of such decision.
18. PERIOD OF SETTLEMENT:
This settlement shall come into operation from the date of signing and shall be
in force for a period of three years from the date of signing and shall continue to
be in force until the expiry of sixty days from the date of notice in writing by
either party of their intention to terminate this Settlement.

382
 CHAPTER - III
FITMENT FORMULAE

FITMENT OF SUB-ORDINATE STAFF ON PROMOTION TO CLERICAL CADRE

1. The Basic Pay of a Sub-Staff on promotion to clerical Cadre shall be determined
on the basis of following tables:

STAGES Basic pay in the Fitment at Corresponding

Sub-ordinate Cadre Stage in the Clerical Cadre
w.e.f. w.e.f. w.e.f. 01.05.2010
01.11.2007 01.05.2010 A B C
1 5,500 5,850 8,400 9,400 9,400
2 5,700 6,050 8,400 9,400 9,900
3 5,900 6,250 8,900 9,900 9,900
4 6,100 6,450 8,900 9,900 9,900
5 6,300 6,650 8,900 9,900 10,500
6 6,550 6,900 9,400 10,500 10,500
7 6,800 7,150 9,400 10,500 11,100
8 7,050 7,400 9,900 11,100 11,100
9 7,300 7,650 9,900 11,100 11,100
10 7,550 7,900 10,500 11,100 11,700
11 7,850 8,200 10,500 11,700 11,700
12 8,150 8,500 11,100 11,700 12,300
13 8,450 8,800 11,100 12,300 12,300
14 8,750 9,100 11,700 12,300 12,300
15 9,100 9,450 11,700 13,000 13,000
16 9,450 9,800 11,700 13,000 13,000
17 9,800 10,150 12,300 13,000 13,700
18 10,200 10,550 12,300 13,700 13,700
19 10,600 10,950 13,000 13,700 14,400
20 11,000 11,350 13,000 14,400 14,400
+1 11,400 11,750 13,700 15,100 15,100
+2 11,800 12,150 14,400 15,800 15,800
+3 12,200 12,550 15,100 16,500 16,500
+4 12,600 12,950 15,800 17,200 17,200
+5 13,000 13,350 16,500 18,500 18,500
+6 13,400 13,750 17,200 19,300 19,300
+7 13,800 14,150 18,500

383
1 Fitment as per Column ‘A’ will be applicable in case of all Sub-staff other than
Electricians and Drivers; Column ‘B’ and ‘C’ would be applicable to Electricians
and Drivers respectively.

2 Where two or more stages in the subordinate scale are combined for fitment
with common stage in the clerical scale :

a) The subordinate staff members who are at the lower stage/s (of the clubbed
stages) will draw their future increments on the anniversary date of
promotion.

b) The subordinate staff members who are at the higher stage/s (of the
clubbed stages) will draw their future increments on the anniversary date
of their last increment as a member of subordinate staff.

3 So also, members of sub-staff whose basic pay is 11,350/-, 11,750/-,

12,150/-, 12,550/-, 12,950/-, 13,350/-, 13,750/-, 14,150/- and who have not
completed one year at the said stage before promotion, would receive their
future annual increments on the annual date of promotion.

4 Sub-Staff Employees who are promoted from 1.11.1993 to Clerical cadre, are
eligible for Fixed Personal Pay (FPP) applicable to the Clerical cadre on
completion of one year after reaching maximum scale of pay in the promoted
cadre and till such time he/she would continue to get FPP as applicable to pre-
promoted cadre.

384
FITMENT CHART ON PROMOTION OF CLERICAL CADRE TO OFFICER CADRE
IN JMG SCALE I

Stage Basic Pay in Clerical Revised Basic pay in Fitment at

Cadre from 01.11.2007 Clerical Cadre from Corresponding Stage
to 30.04.2010 in 01.05.2010 onwards JMG – Scale I

1 6200 7200 14500

2 6600 7600 14500
3 7000 8000 14500
4 7400 8400 14500
5 7900 8900 14500
6 8400 9400 14500
7 8900 9900 14500
8 9500 10500 14500
9 10100 11100 14500
10 10700 11700 15100
11 11300 12300 15700
12 12000 13000 16300
13 12700 13700 16900
14 13400 14400 17500
15 14100 15100 18100
16 14800 15800 18700
17 15500 16500 19400
18 16200 17200 20100
19 17500 18500 20900
20 18300 19300 21700
+1 21 19100 20100 22500
+2 22 19900 20900 23300
+3 23 20700 21700 24100
+4 24 21500 22500 24900
+5 25 22300 23300 25700
+6 26 23100 24100 25700
+7 27 23900 24900 25700

385
Note:-

1. The promotee officer after fitment as above, will draw his next increment in the
Officers’ Scale on the anniversary date of his last increment in clerical cadre
and thereafter he will draw his further increments every year on the same date.
However, in view of the clubbing of stages in the fitment table, the employee in
the lower clubbed stage of clerical scale of pay will get his next increment after
promotion on the anniversary date of promotion.

2. Those who were drawing a basic pay between the 1st and 9th stage in the
clerical scale given in the above table, will be fitted at the minimum of the
Officers’ Scale and will draw their next increment on the anniversary date of
promotion.

3. (a) Those who have completed more than one year at basic pay of 18300 /
19300, 19100 / 20100, 19900 / 20900, 20700 / 21700, 21500 /
22500 will draw their next increment on the anniversary date of their last
increment in the clerical cadre immediately following the date of promotion
and will draw their subsequent annual increment on the same date.

Those who have completed less than one year at basic pay of 18300 /
19300 / 19100 / 20100, 19900 / 20900, 20700 / 21700 & 21500 /
22500 will draw their next increment after fitment, on the anniversary
date of promotion and thereafter draw their annual increments every year
on the same date.

(b) Those who have completed more than one year at basic pay of 22300 /
23300, 23100 / 24100 and 23900 / 24900 will be given fitment in the
Officers’ Scale at 25700 and will earn their next increment on the
anniversary date of promotion subject to their crossing their Efficiency
Bar as per guidelines issued by the Government under Regulation 5 of
Officers’ Service Regulations.

(c) In all cases where promotee officers reach the maximum stage in the
substantive JMG Scale I ( 25700), further increment in the next higher
scale will be subject to their crossing Efficiency Bar as per guidelines
issued by the Government under Regulation 5 of Officers’ Service
Regulations.

4. Promotees who are drawing Fixed Personal Pay in terms of Settlement dated
27.04.2010 may continue to draw the same quantum of fixed Personal Pay

386
 even after promotion which shall remain unaltered till revised. (Please refer to
IBA circular no. CIR/HR&IR/90/665/E-12/2010-11/1416 dated 30.09.2010.)

5. If the promotee officer has passed JAIIB or CAIIB at the time of his promotion,
notional basic pay will be arrived at after reducing the increments earned
for passing JAIIB/CAIIB, from the clerical basic pay. He shall then be fitted in
the Officers’ Scale in accordance with the above table and appropriate one or
two increments in the Officers’ Scale shall be added with basic pay so fixed.
The date of increment will be determined as per (1) above, if after reduction of
increments in the clerical scale, the basic pay falls in the lower clubbed stage.
This adjustment, however, will not be made where the number of increments to
be reduced is higher than the number of increments to be granted.

6. If despite the fitment as given above, the emoluments (basic pay and dearness
allowance) drawn as an officer on promotion are less than the emoluments
(basic pay and stagnation increment if any, functional special pay on permanent
basis and dearness allowance) drawn as a clerk, the difference may be
protected by way of Temporary Personal Allowance to be wiped off, in three
years, at the rate 1/3 Temporary Personal Allowance. This allowance will not
rank of dearness allowance and superannuation benefits.

387
 PAY FIXATION OF EX-SERVICEMEN AWARD STAFF
i) Recruitment prior to 1.9.1978

Pay fixation of an ex-serviceman who has joined the Bank’s service prior to
1.9.1978 has to be made on the basis of pay plus dearness allowance.
Accordingly, an ex-serviceman will be notionally fitted at the minimum of scale
of pay applicable in the Bank’s service or at that level where new basic pay plus
dearness allowance will be equal to or just above the pay plus dearness
allowance last drawn by him in the Armed Forces less the amount of gross
pension of 50/- for those appointed from 10.6.1964 to 18.7.1978 and 125 for
those appointed from 19.7.1978 onwards.

In addition to the pay so fixed, pension and other retirement benefits may be
allowed to be drawn subject to the limitation that re-employment pay plus pension
and pension equivalent of other retirement benefits does not exceed last pay
drawn or 3000/- whichever is less.

An ex-serviceman who has joined the Bank prior to 1.9.1978 can exercise fresh
option to come over to the post 1.9.1978 pay fixation formula as if he was fresh
entrant in the Bank’s service. Arrears on account of re-fixation of pay will however,
be admissible to such optee from 1.9.1978.

The term fresh entrant relates only to the pay fixation of an ex-serviceman and
will not affect the seniority or the counting of service for any other purpose.

ii) Recruitment during the period 1.9.1978 to 24.1.1983

Pay fixation of an ex-serviceman who has joined the Bank’s service during the
period 1.9.1978 to 24.1.1983 will be made on the basis of protection of pay
(instead of Pay + DA) drawn by him prior to retirement. Accordingly, an ex-
serviceman will be notionally fitted at the minimum of the scale of pay applicable
in the Bank’s service or at the level where new basic pay will be equal to or just
above the basic pay drawn by him in the Armed Forces less amount of gross
pension including pension equivalent of gratuity in excess of 125/-.

After the fitment as above his revised basic pay will be given effect to only from
1-4-1980.

In addition to the pay so fixed, pension and other retirement benefits may be
allowed to be drawn subject to the limitation that re-employment pay plus pension
and pension equivalent of other retirement benefits does not exceed last pay
drawn or Rs. 3000/- whichever is less.

388
iii) Recruitment during the period 25.1.1983 to 30.6.1983

Pay fixation of an ex-serviceman who has joined the Bank’s service during the
period 25.1.1983 to 30.6.1983 will be made on the basis of protection of pay
(instead of pay + DA) drawn by him prior to retirement. An ex-serviceman will
be notionally fitted at the minimum of the scale of pay applicable in the Bank’s
service or at the level where new basic pay will be equal to or just above the pay
drawn by him in the Armed Forces.

Accordingly, while fixing his pay on re-employment as an ex-serviceman, who

retire from the Armed Forces before attaining the age of 55, the entire pension
would be ignored.

NOTE: An ex-serviceman who is already in re-employment may exercise his

option for re-fixation of pay on the above basis. If he so opts, his terms would be
determined afresh as if he has been re-employed for the first time from 25.1.1983.

In addition to the pay so fixed, pension and other retirement benefits may be
allowed to be drawn subject to the limitation that re-employment pay plus pension
and pension equivalent of other retirement benefits does not exceed last pay
drawn or 3,000/- whichever is less.

iv) Recruitment during the period 1.7.1983 to 31.12.1985

Pay fixation of an ex-serviceman who has joined the Bank’s service during the
period 1.7.1983 to 31.12.1985 would be through the protection of the pay plus
DA drawn by him at the time of his release from Armed Forces. The figure of
pay plus DA admissible in the Bank will be fixed with reference to this protection
and relevant stage of the basic pay in the scale will be determined after deducting
DA admissible in the bank from the figure protected.

The excess amount if any, paid to an ex-serviceman who joined between

1.7.1983 and 10.6.1986 on account of the retrospective effect being given to
the IV the Bipartite Settlement may be recovered by the Bank, as it was an
unintended benefit.

However, as a special case, the excess amount already paid for the period
1.7.1983 to 17.9.1984 may not be recovered.

Pay fixation of an ex-serviceman re-employed in the Bank during the period

1.7.1983 to 31.12.1985 be done in accordance with the above provisions with
effect from 1.7.1983 and arrears on account of refixation of pay, if any, will be
payable only from 10.6.1986.

389
 In addition to the pay so fixed, pension and other retirement benefits may be
allowed to be drawn subject to the limitation that re-employment pay plus pension
and pension equivalent of other retirement benefits does not exceed last pay
drawn or 3000/- whichever is less.

v) Recruitment during the period 1.1.1986 to 31.10.1987

Pay fixation of an ex-serviceman who joined the Bank’s service between the
period 1.1.1986 and 31.10.1987 would be through protection of pay plus D.A.
drawn by him at the time of his release from Armed Forces. The figure of pay
plus D.A. admissible in the Bank will be fixed with reference to this protection
and relevant stage of the basic pay in the scale will be determined after deducting
D.A. admissible in the Bank from the figure protected.

In addition to the pay so fixed as mentioned above, from 1.1.1986 pension and
other retirement benefits may be allowed to be drawn subject to the limitation
that re-employment pay plus pension and pension equivalent of other retirement
benefits does not exceed last pay drawn or 8000/- whichever is less.

vi) Recruitment on or after 1.11.1987

Pay fixation of an ex-serviceman who joined the Bank’s service on or after

1.11.1987 would be through protection of pay plus D.A. drawn by him at the
time of his release from Armed forces. The figure of pay plus D.A. admissible in
the Bank will be fixed with reference to this protection and relevant stage of the
basic pay in the scale will be determined after deducting D.A. admissible in the
Bank from the figure protected. Over payments, if any, on account of pay fixation
of an ex-serviceman who joined between 1.11.1987 and 10.4.1989 should be
recovered from his pay. Similarly, if re-fixation of pay in the revised pay scales
in the Bank leads to fixation at a higher stage the arrears may be paid to an ex-
serviceman.

In addition to the pay so fixed as mentioned above from 1.1.1986 pension and
other retirement benefits may be allowed to be drawn subject to the limitation
that re-employment pay plus pension and pension equivalent of other retirement
benefits does not exceed last pay drawn or 8,000/- whichever is less.

vii) From 1st June 1988 while fixing the initial pay of re-employed pensioners, the
pension equivalent of gratuity may not be deducted from the pay so fixed.

viii) An ex-serviceman retiring after 1.1.1996 and getting his pre-retirement pay in
the revised scale, on re-employment in the Bank will get his pay refixed as in

390
 para (iv) above subject however to the ceiling applicable for his pay fixed in the
Bank and the element of pension to be reckoned for this purpose taken together
shall not exceed the minimum basic pay of a General Manager in the Bank.

Refixation of pay of Ex-serviceman re-employed in Banks on or after 1-11-1992

IBA Circular No. PD/CIR/76/589/2376 Dt. 19-02-1996

The ‘pay’ of ex-servicemen re-employed in banks’ service on or after 01-11-

1987 but before 14-02-1995 was fixed with reference to the pay scale of Fifth
Bipartite Settlement so as to protect the pay plus dearness allowance drawn by
them at the time of release from Armed Forces. Upon implementation of the
Sixth Bipartite Settlement with effect from 01-11-1992, the pay of such
ex-servicemen who joined the Banks’ service after 01-11-1992 but before
implementation of wage revision will have to be refixed with reference to the
new scale of pay.

We have since been advised by the Government that it has been decided that
in cases of all ex-servicemen who have joined the bank on or after 01-11-1992,
in their case the pay fixation has to be done as per the Sixth Bipartite Settlement.
Accordingly, the pay of ex-servicemen has to be refixed under the Sixth Bipartite
Settlement.

Over payments, if any, on account of pay fixation to an ex-serviceman who

joined between 01-11-1992 and 14-02-1995 should be recovered and if
re-fixation of pay in the revised pay scales in the bank leads to fixation at a
higher stage the arrears may be paid to an ex-servicemen.

Pay fixation

The following items of emoluments admissible in the Defence Service will constitute
the pre retirement pay of retired military personnel of the rank of Junior Commissioned
Officer and below and will rank for protection on reemployment:

Army

1) Pay (including deferred pay) and rank pay.

2) Increments of pay for length of service

3) Classification pay

4) Good Service/Conduct Pay

391
Note:

‘Rank Pay’ forms part of pre-retirement pay in respect of all Ex-Service Officers
including SSCOs who retired on or after 1-1-1986 (in the revised scale) from Armed
Forces. However, in respect of those who retired/or were released before 1-1-1986,
the ‘Rank Pay’ if drawn by them would not be taken into account for fixation of pay on
their re-employment in public sector banks.

Navy:
1) Pay (including deferred pay)
2) Good Service/Conduct Pay
3) Higher Pt.II – Qualification Pay
4) Classification Pay

Note:
(a) ‘Sub-marine Pay’ admissible to officers and sailors of Indian Navy may be
reckoned towards pre-retirement pay in respect of officers/sailors who retired/
or were released from Indian Navy prior to 1-1-1986.
(b) In respect of officers/sailors who retired / or were released from Indian Navy on
or after 1-1-1986 ‘Sub-marine Pay’ as well as other elements of pay which are
not reckoned for determining pension will not count towards pre-retirement pay.
(c) Pay fixation of ex-servicemen re-employed in public sector banks prior to
1-1-1986 has to be re-opened and pre-retirement pay in such cases should
include Sub-marine Pay also.

Air Force:
1) Pay (including deferred pay)
2) Badge Pay
3) Classification Pay
4) Good Service/Conduct Pay
The pension for the purpose of these orders includes pension equivalent of
gratuity and other forms of retirement benefits.
With effect from 1-6-1988 in fixing the initial pay of re-employed pensioners,
the pension equivalent of gratuity may not be deducted from the pay so fixed.
For the purpose of fixation of pay, Dearness Allowance will include Dearness
Pay, Dearness Allowance, Additional Dearness Allowance and Interim Relief etc. but
will not include CCA, HRA and similar other allowances.

392
 For the purpose of fixation of pay on re-employment the ‘Pay’ would mean ‘the
basic pay’ plus the special allowance/special pay as the case may be attached to the
re-employed post wherever applicable plus the dearness allowance.

Re-fixation of pay to ex-servicemen re-employed in Banks on or after 1.1.2006

In respect of re-employment taking place on/or after 1.1.2006 pre-retirement

pay for those retired after 1.1.2006 means to pay in the pay band plus grade pay.
Therefore, Ex-servicemen re-employed in the banks who retired on/or after 1.1.2006
are eligible to pay fixation in banks based on the pay drawn by them at the time of
discharge from the Defence Services which would include band pay plus grade pay
and also Military Service Pay.

The basis on which the refixation of pay in the above cases is being arrived is
as follows:-

1) Basic Pay

2) Dearness Allowance

3) Grade Pay

4) Military Service Pay

5) Badge/G.S. Pay

6) Class Pay

Weightage of service:

Housing Loan/Conveyance Loan etc.

For the purpose of qualifying service, necessary to avail of housing loan,

conveyance loan etc., service rendered by the ex-servicemen in Armed Forces may
be taken into account.

For the purpose of promotion/Appointment against Special Allowance/Pay

carrying post:

(i) Bank may allow, for the purpose of seniority in promotion, to their ex-servicemen
employees recruited against reserved posts in the clerical and subordinate cadre,
weightage for the period of service rendered by them in the armed forces in the
ratio 5:1 subject to a maximum of 2 years after they have rendered at least
3 years actual service in the Bank after re-employment. This benefit will be
available to the ex-servicemen only once during the career.

393
(ii) The weightage of service in the armed forces as stipulated in para (i) above has
to be allowed after they have rendered atleast 3 years of service in that cadre
and their seniority is to be fixed as per the provisions of circular dated
13-8-1986. All other benefits flowing from seniority will follow as per circular
dated 13-8-1986.

(iii) These instructions are applicable in respect of those ex-servicemen who were
working in the clerical and subordinate staff cadres as on 13-8-1986 or who
joined subsequent to 13-8-1986. These instructions are, however, not applicable
to those ex-servicemen who have already been promoted to the officers’ cadre
before 13-8-1986 or who have been recruited directly as officers.

(iv) The benefit of weightage of defence service to ex-servicemen for promotion is

available for the first promotion only, after their re-employment in the Bank.
They will not be eligible for getting this benefit for any subsequent promotion
irrespective of the fact whether the first promotion was in the normal course or
otherwise.

(v) Ex-servicemen may be allowed to opt for availing of the benefit of weightage for
defence service either for appointment against the special allowance/ pay
carrying post within subordinate/clerical cadres or for promotion from subordinate
to clerical or from clerical to Junior Management Grade. However, once an
ex-serviceman avails of this benefit for appointment against any special
allowance carrying post, he will not be eligible for the same benefit at the time of
his consideration for promotion from one cadre to another. The ex-servicemen
are required to exercise the option for the purpose at the time of first available
opportunity and the option once exercised will be final and no change therein
would be allowed later, whether or not the ex-servicemen are successful in that
exercise.

(vi) The benefit of seniority on the basis of past service in Army has to be availed
only once in the career of ex-servicemen. However, this stipulation does not
come in the way of those who avail this benefit for the purpose of temporary
appointment to an allowance carrying post or officiating post and afterwards
considered for regular promotion to the next higher grade from the post to which
he was initially re-employed. In case the allowance carrying post is given to the
re-employed ex-servicemen on permanent basis, then this benefit will not be
allowed again for next promotion in the Bank.

394
 CHAPTER - IV

FRINGE BENEFITS

01. BRIEFCASE TO ALL THE CLERICAL AND SUB-STAFF CADRE EMPLOYEES

[Source: HO Cir.No.62/2004, 339/2004 & 245/2012]

Reimbursement of expenses incurred on purchase of Briefcase, once in three

years, upto the limits indicated below:
Special Assistants : 1,000/-
Clerks : 900/-
Sub-staff : 700/-

Lady employees will have the option to be reimbursed the expenses incurred
for purchase of a Leather Handbag in lieu of Briefcase, within the above limits.

02. CLOSING ALLOWANCE [Source: HO Cir.No.346/2003]

Award Staff working in branches where books are closed on 31st March and
30th September, would be paid Closing Allowance at the following rates for each of
the two closings:
Clerical : 200/-
Subordinate staff including permanent
Part time Sweepers on graded scale wages
} 100/-

The Closing Allowance will be paid to Clerical Staff who are either directly
engaged in the work relating to closing of books of accounts or are required to do
extra work arising out of such closing of books of accounts. The Closing Allowance
for Subordinate Staff including Part time Sweepers working in branches would be
paid for undertaking special drive for arranging records and ensuring cleanliness of
the premises. Such of the Award staff including Part time Sweepers on graded scale
wages who are on leave for an aggregate period of more than four days between
20th March/September and 10th April/October during the respective year are not
entitled for half yearly/ annual closing allowance as the case may be.

395
03. CONVEYANCE EXPENSES
[Source: HO Cir.No.321/2000, 176/2005, 260/2005,706/2008,
420/2011 & 21/2013]

All Full Time Award Staff members would be reimbursed Conveyance expenses
incurred by them upto the limits indicated below:
For Award Staff owning vehicles:
Special Assistants : Cost of 24 Litres of petrol per month
Clerks : Cost of 19 Litres of petrol per month
Subordinate Staff : Cost of 15 Litres of petrol per month
For Award Staff who do not own vehicles:
Special Assistants : 800/- p.m.
Clerks : 600/- p.m.
Subordinate Staff : 525/- p.m.
For Part time employees on Graded Scale wages:

3/4 graded scale wages : 400/- p.m.

1/2 graded scale wages : 300/- p.m.
1/3 graded scale wages : 225/- p.m.

Employees who are on leave for a full calendar month will not be eligible for the
above reimbursement for that month. The claims pertaining to a month could be
submitted before the end of the succeeding month but not thereafter.

04 CONVEYANCE ALLOWANCE TO THE BLIND AND ORTHOPAEDICALLY

HANDICAPPED EMPLOYEES.
[SOURCE : HO CIRCULAR NO.237/2009]

The rate of conveyance allowance for disabled employees (Blind and

Orthopaedically Handicapped Employees) stands revised from 200/- to 400/-.
Accordingly, the blind and orthopaedically handicapped employees are eligible for
conveyance expenses with effect from 18.02.2009 at the rate of 5% of Basic Pay
subject to a maximum of 400/- per month. In the case of Award Staff, this allowance
will be in addition to the transport allowance payable to all Workmen as per Bipartite
Settlement.

396
04. COST OF NEWSPAPER
[Source: HO Cir.No.315/2003, 320/2003 & 748/2007]

With a view to improving the general awareness and widening the horizon which
are so essential in the context of rapid changes taking place in various spheres,
which would also result in greater involvement of employees in business development
and increased productivity, all the Award Staff members including permanent Part
Time employees subscribing to a Non-financial National/Regional/ Local newspaper
will be reimbursed 100% of the cost of subscription on production of bill from an
authorised Newspaper Agent/Vendor.

05. CONCESSION IN LOCKER RENT [Source: HO Cir.No.132/2005]

The upward revision in service charges including rentals on Lockers has been
communicated vide HO Cir.No.117/2005 dated 03.03.2005. However, the enhanced
locker rentals are not applicable to staff/retired members and they will continue to
pay locker rent at the rates prescribed earlier (i.e. 25% concession in the rates
applicable to general public prior to the above revision).

Metro Urban SU / Rural

32units Cabinet
● Small 775/- 590/- 370/-
● Medium 1330/- 1130/- 775/-
● Large 2715/- 1960/- 1550/-
45units Cabinet 545/- 505/- 345/-
51units Cabinet
● Small 590/- 505/- 325/-
● Medium 1185/- 1005/- 775/-
● Large 2090/- 1730/- 1185/-
75units Cabinet
● Small 505/- 415/- 325/-
● Medium 865/- 710/- 505/-
● Large 1760/- 1370/- 1185/-
90units Cabinet 505/- 415/- 325/-

397
06. CONCESSION IN THE RATE OF INTERESGT ON EDUCATIONAL LOAN
(CORP VIDYA) [Source : HO Cir. No. 22/2013

The Educational Loan (Corp Vidya) being granted to the eligible dependent
children of employees shall be charged concessional rate of interest at Bank’s Base
Rate i.e. 10.5% p.a. at present. In such cases, no other interest concession available
under the scheme shall be extended.

07. DAILY CONVEYANCE AT THE DEPUTED PLACE

[Source: HO Cir.No.275/2008]

The Clerical staff deputed for official duties to branches outside their headquarters
would be reimbursed actual daily Conveyance expenses or 50/- per day whichever
is less.

08. ENTERTAINMENT EXPENSES [Source : Cir.No.05/2009 & 24/2013]

Keeping in view the role responsibilities attached to the post of Special Assistants,
Entertainment expenses of 2,400/- p.a. is being reimbursed to Special Assistants
on production of bills.

09. FIXED PERSONAL PAY (FPP) ON PROMOTION FROM ONE CADRE TO A

HIGHER CADRE OR FROM ONE SCALE TO A HIGHER SCALE - PAYMENT
OF ARREARS TO EMPL OYEES WHO ARE PROMOTED TO HIGHER
CADRE FROM 01.11.1993

Employees who were in the service of banks as on 1st November 1993 were
granted one advance increment on account of computerization and these employees
on reaching the maximum of respective scales of pay are eligible to be granted Fixed
Personal Pay (FPP) as per the rates fixed in the Bipartite Settlement. The FPP so
drawn by the employee is to remain frozen for the remaining period of his service, in
a particular cadre, except when the rate of FPP is revised consequent to wage revision
in the industry. The employees who were already sanctioned FPP on reaching the
maximum scale of pay in their present cadre, on promotion to higher cadre, are paid
the same amount of FPP as applicable to pre - promoted cadre.

398
 The IBA has clarified that when an employee is promoted to a next higher cadre/
scale after earning FPP in the lower cadre, then he would continue to get the same
amount of FPP in the promoted scale till such time he reaches the maximum in the
promoted cadre/scale. On completion of stipulated one year at the maximum of the
promoted cadre, he shall be sanctioned FPP as applicable to the higher cadre/scale
in which he is placed. In the light of the IBA clarification, employees who are promoted
from 1.11.1993 to higher cadre are eligible for FPP applicable to that cadre on completion
of one year after reaching maximum scale of pay.

10. INCIDENTAL EXPENSES FOR TRAINING/DEPUTATION

[Source: HO Cir.No.382/1998 & 327/2004]

Reimbursement of reasonable expenses incurred by employees on account of

deputation to a local branch/office or a Training Centre, will be made subject to the
following limits:

i. Deputation to Training Centre/Branch/Office : 30/- per day

at Mangalore
ii. Deputation to Training Centre/Branch/Office at :
a) Mumbai & other Major ‘A’ class cities : 50/- per day
b) All other CCA centres (Other Major : 30/- per day
‘A’ Class cities include Delhi, Kolkata,
Chennai, Bangalore, Hyderabad and
Ahmedabad)

Employees claiming reimbursement as above, should submit a declaration

stating that they have actually incurred the expenses claimed on account of their
deputation to another branch/office or training. Incidental charges will also be paid to
employees working in above areas who are sent on deputation to Extension Counters
from the Base Branches due to leave/training/outstation duties etc., of the employees
working in Extension Counters.

399
11. LEAVE FARE CONCESSION - REIMBURSEMENT OF SERVICE CHARGES,
INTER-STATE ENTRY TAX, PARKING FEES, SERVICE TAX
[Source : HO Cir.No.113/2001 & 15/2006]
Reimbursement of actual service charges of not more than 35/- per head
would be made for booking journey tickets in connection with LFC once for onward
and once for return journey against production of receipts/vouchers. Such receipts/
vouchers are to be submitted along with the LFC TA bill for consideration. It may be
noted that the reimbursement of such expenses would be in addition to the normal
entitlement of journey fare as admissible under the LFC rules. Subject to the production
of original bills/receipts, the following charges incurred by employees while travelling
on LFC, also would be reimbursed within the overall entitlement:
i) Actual Service Tax at the prevailing rates prescribed by the Government;
ii) Interstate Entry Tax levied by the Government for the duration of the travel
under LFC in the particular State while traveling by own car/hiring taxi;
iii) Parking charges while undertaking tour by taxi/own car subject to the condition
that such charges shall be reimbursed only in respect of the occasion of parking at
each city/town that is actually visited and for which fare is reimbursable under LFC.

12. LEAVE FARE CONCESSION-TRAVEL BY TAXI

[Source: HO Cir.No.279/2001]
An employee and/or members of his family, when availing LFC may undertake
travel by any public transport or transport (including Taxi) operated by agencies/ tour
operators approved by appropriate Government Authorities, between places not
connected by train or partly connected by Train. (As per VIIIth Bipartite Settlement
dated 02.06.2005)
In our Bank, in addition to the above Bipartite Settlement provision, all the eligible
Workmen other than Part time employees are eligible to travel by taxi while on Leave
Fare Concession (LFC). Prior permission for travel by taxi while on LFC should be
obtained by the employee and the following information should be furnished alongwith
the LFC claim :-
a) Registration number of the taxi, copy of the RC book and copy of the route permit;
b) Name and address of the owner and driver of the taxi (to be stated in the bill/
receipt also);

400
 c) Rate per Kilometer;
d) Date and place of commencement of journey, particulars of the places visited,
date and place of termination of journey, total distance covered, opening and
closing meter readings in Kilometers;
e) Name and address of persons travelled by taxi;
f) Proof of visit to the places mentioned (hotel/restaurant bills, bills for purchase
made, petrol bills, temple receipts etc.);
g) Total amount charged for the taxi, bill/stamped receipt for the amount paid;
h) A declaration to the effect that the amount claimed does not include sight
seeing charges.
The employees will be reimbursed actual road mileage cost or at 3/- per k.m.,
per person whichever is less. (As per VIIIth Bipartite Settlement dated 02.06.2005).
Taxi for this purpose shall mean car/van/Multi Utility Vehicle etc., (four wheeler),
registered as tourist vehicle but not those which have been registered as private
vehicles. In case any other person(s) accompanies the employee and/or his
dependents while on LFC and travels by the same taxi, reimbursement would be
made on a pro-rata basis.

13. LEAVE FARE CONCESSION - TRAVEL BY OWN CAR

[Source: HO Cir.No.323/2003]
On prior permission in writing from the sanctioning authority, the facility to travel
by own car while on LFC is available to workmen employees other than Part time
employees of the Bank. Employee or his/her spouse should be the registered owner
of the car in which the travel is undertaken. The following information should be
furnished for undertaking journey by own car while on LFC:
a) Registration number of the car, copy of the RC book, copy of the Driving
License of the employee/spouse;
b) Date and place of commencement of journey, places visited, date and place
of termination of journey;
c) Total distance covered by Car during LFC journey, duly indicating the distance
between the places covered;
d) Names and the employee’s relationship with the persons travelled in the car;
e) Proof of visit to the places mentioned (hotel/restaurant bills, bills of purchases
made, petrol bills, temple receipts, tollgate receipts, etc.);

401
 f) Total amount incurred towards petrol charges (Original petrol bills to be
enclosed);
g) A declaration to the effect that the amount claimed does not include sight
seeing charges.
The reimbursement in the case of travel by own car will be restricted to the
actual petrol charges incurred, supported by cash bills or @ 3.00 per Km. per
person whichever is less. In case any other person(s) accompanies the employee
and/or his dependents while on LFC and travels by the same car, reimbursement
would be made on a pro-rata basis.

14. LEAVE FARE CONCESSION - LOCAL SIGHT SEEING CHARGES

[Source : Cir.No.103/2007]
The employees while on LFC shall be reimbursed the local sight seeing charges
with the following conditions :
a. Shall be within the overall entitlement.
b. Subject to a maximum of 150/- per head per LFC.
c. Restricted to seven metros and 16 cities viz., Pune, Nagpur, Kanpur, Jaipur,
Lucknow, Vishakapatnam, Patna, Vadodara, Kochi, Indore, Bhopal, Ludhiana,
Coimbatore, Madurai, Agra and Varanasi
d. Production of original bills/vouchers/receipts as envisaged under LFC Scheme.

15. LEAVE FARE CONCESSION – TRAVEL BY CONDUCTED TOUR

An employee may avail LFC by joining conducted tours organized by ITDC / TDC
of any State / approved private travel agents. The reimbursement will be restricted to the
actual charges of the travel agents or at 3/- per km per head whichever is less, excluding
charges for boarding and lodging and other incidental charges, if any, within the entitlement.
The receipts produced by the employee in this connection shall invariably contain details
pertaining to the fare per seat, distance traveled, charges for boarding and lodging, bus
number, permit number etc. Copy of the list of passengers / copy of tour schedule along
with such other proof shall also be submitted while making the LFC claim.

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16. LODGING EXPENSES TO EMPLOYEES [Source : Cir.No.102/2007]
Reimbursement upto 60% of the lodging expenses presently reimbursable to
Officers in Scale I at respective centres or actuals, whichever is less, will be made to
those Clerical staff members who appear for promotion test/ interview to the Officer
cadre/ Special Assistant’s post. Special Assistants appearing for promotion test/
interview to the Officer cadre are also eligible for the same, subject to the following:

a. The facility would be available only to those Clerical Staff/Special Assistants

who travel from outstation places, which necessitates overnight stay at the
centre.
b. The claim should be supported by relevant bills in original.
c. The reimbursement would be normally restricted to ONE-DAY’s stay only.
Under unavoidable circumstances like non availability of public conveyance,
it may be extended to TWO days.

17. MEDICAL EXPENSES FOR DOG/SNAKE BITE

[Source: HO Cir.No.114/2001]
Medical expenses incurred by employees as out-patients for self / members
of the ‘Family’ (as defined under the “Scheme for reimbursement of Hospitalisation
Expenses”) in connection with Dog / Snake bite, on production of necessary
prescription from Doctor, bills etc., will be reimbursed. The limits for reimbursement
of expenses towards consultation fees, injections, medicines, any other related
expenses shall be as per the schedule of the Hospitalisation Scheme applicable to
Award Staff, under Bipartite Settlement.

18. MEMENTO OF 7,500/- TO ALL THE EMPLOYEES ON THE EVE OF

RETRIEMENT ON SUPERANNUATION [Source : HO. Cir. No. 16/2013]
All the employees irrespective of their cadre shall be awarded with a memento
costing 7,500/- on the eve of their retirement on superannuation. The memento may
be in any form at employee’s choice costing an amount not exceeding 7,500/-
irrespective of the cadre of the employee.

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19. PERMISSION TO USE TWO WHEELER FOR CASH REMITTANCE
The employees working in certain rural branches will be permitted to use two
wheeler vehicles for effecting cash remittance, subject to the observance of the laid
down rules and security guidelines in this regard. Such employees undertaking cash
remittance by two wheelers would be reimbursed conveyance expenses on a road
mileage basis at rates applicable to the officers using two wheelers. The escort would,
however, not be eligible to claim conveyance expenses in such cases.

20. PHYSICALLY HANDICAPPED EMPLOYEES - COMPANION

[Source : HO Cir.No.125/2000]

Considering the difficulties beings faced by the ‘physically handicapped’

employees, they are permitted to take along a companion while attending outstation
training programmes. Actual travelling expenses incurred in respect of such
companion, subject to limits at par with the entitlement of the employee concerned,
will be reimbursed. Wherever accommodation is provided by the Bank to the trainee,
such facility will also be extended to the companion. Apart from above, no other
expenses/halting allowance etc., will be reimbursed in respect of the companion.
For the purpose of this facility, ‘physically handicapped” employee shall be an employee
who is appointed under such category and is eligible for payment of Conveyance
Allowance in terms of Government guidelines.

21. SABBATICAL LEAVE TO WOMEN EMPLOYEES

[Source : HO Cir. No.529/2012]

The woman employees who have put in a minimum of 5 years of service in the
Bank are eligible for applying for Sabbatical leave for a Maximum period of 2 years
in the entire career of a woman employee and such leave shall be taken for a period
of at least 3 months at a time and the leave shall not be taken more than once in
a year. Before expiry of the sanctioned leave, employees cannot rejoin for duty
without prior permission from the Competent Authority. Such leave may be availed
for any purpose like medical grounds, care of family members or children, higher
studies, visit spouse etc. The leave shall be without Pay, Salary, Allowances
and any consequential monetary and non-monetary benefits. The sabbatical leave
period shall not be counted as service for the purpose of calculation of terminal benefits
such as gratuity / provident fund / Pension etc. Women employees on Sabbatical
Leave shall not be eligible to participate in any promotion exercises during the

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Sabbatical Leave period, even if otherwise eligible. The employees are not eligible
for facilities such as Leave Fare Concession, leave, Bonus, ex gratia, Medical,
Festival advance, Hospitalisation Expenses, Expenses under Staff Welfare measures
etc. during the leave period.

22. SHIFTING EXPENSES ON SUPERANNUATION

[Source: HO Cir.No.46/2000]
Travelling Allowance, transportation and other expenses incurred by the retiring
employees as per transfer TA rules to shift the family to the place of domicile within the
State as registered in the service records would be reimbursed. The facility would,
however, be available only for such shifting within six months from the date of retirement.

23. SUB-STAFF EMPLOYEES - PAYMENT OF DAFTARY

[Source : HO Cir.No.141/1998]
As all the Sub-staff employees are required to perform all types of duties including
Daftary, the Special Pay for Daftary on permanent basis is paid uniformly to all Peons.

24. SALARY IN ADVANCE TOWARDS FESTIVALS

Salary in advance will be granted to all employees for any one festival falling after
15th of the month to be decided on a state wise basis, and shall be disbursed one week
before the festival or on any day after 10th of that month, whichever is latter. Further,
salary for the month of December will be paid on the 20th of that month.

25. STUDY LEAVE [Source : H.O. Cir. No. 136/2000]

With a view to prosecuting certain higher studies, physical attendance is compulsory.

At the discretion of the Bank and subject to exigencies of service, applications from
employees for sanction of extraordinary leave as admissible under the Bipartite Settlement,
would be considered for the purpose of prosecuting higher studies also.

.
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26. SUPPLY OF UNIFORM & LIVERY ITEMS TO ARMED GUARDS/SUB-STAFF/ PTS

ARMED GUARDS
[SOURCE : HO CIRCULAR NO.755/2011]

Specification Rates/Authorisation

Summer Uniform

Pant & Shirt - Terry cotton Raymonds - Trovine shade No.841. Rs.255/- per meter
of dark grey colour Pant with 2 pleats, 3 belt loops like
that of Army, 18” bottom with side
pockets and one back pocket on the right.
3 sets every 2 years Shirt with half sleeves, with two
One pair of uniform every breast pockets with flap, shoulder
8 months flap like that of army.
Length - 3 meters
Stitching charges
(military pattern)
Metro Rs.550/- per pant & shirt
Urban & Port Town Rs.500/- per pant & shirt
Semi-urban & Rural Rs.450/- per pant & shirt
Winter Uniform
Pant & Shirt-Terry wool Raymonds -Sapphire shade No.293. Rs.675/- per meter
of dark grey colour Pant & shirt both of same terry wool
material (same specification of summer
uniform, but with full sleeves for shirt)
One set every three years Length - 3.25 meters
at all places*
* Two sets every three
years for armed guards in
Delhi-North & South,
Chandigarh, Ludhiana,
Lucknow, Meerut, Bhopal,
Jaipur, Kolkata & Patna Zones.
Stitching charges
(military pattern)
Metro Rs.700/- per pant & shirt
Urban & Port Town Rs.600/- per pant & shirt
Semi-urban & Rural Rs.550/- per pant & shirt
Jersey Pullover - grey colour ** Double knitted Rs.800/- per piece
(air force pattern)

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One piece every 2 years
Woollen socks - black colour ** Rs.100/- per pair
Two pairs every year
** Only for armed guards in
Delhi-North & South, Ludhiana,
Chandigarh, Lucknow, Meerut,
Bhopal, Jaipur, Kolkata, Patna,
Ahmedabad & Vadodara Zones
Woollen Battle Jacket Raymonds -Trousering (Navy blue) Rs.2,500/- including
(IAF pattern) Jacket upto waist with full sleeves, stitching charges
@ One every 3 years two breast pockets with flap, side
pockets on either side, collar,
shoulder flap, waist belt of 2” width
@ Only for armed guards secured with elastic at the back and
in Delhi-North & South, long belt (like that of pant) of 11/2
Ludhiana, Chandigarh, length with button, inner lining
Lucknow, Meerut, Bhopal, & buttons in front
Jaipur Zones, branches in
North-East and other hill &
extreme cold climate areas
to be notified from time to
time by Security Division, HO

Other items of uniform

Black leather shoe One pair per year Rs.1,200/-
(oxford pattern with 5 eyelets)
Black nylon socks Four pairs per year Rs.75/- per pair
Navy blue woollen beret Two pieces per year Rs.80/- per piece
Black leather belt One piece every 3 years Rs.225/- per piece
Black leather ammunition pouch One set of two pieces Rs.100/-
to hold 10 cartridges every 3 years
Black lanyard (double cord) Two pieces per year Rs.60/- per piece
Metal whistle (referee type) One piece every 5 years Rs.50/- per piece
Black boot polish - 40 gms tin Four tins per year Rs.40/- per tin
Boot polish brush Two brushes per year Rs.40/- each
Name plate (bilingual) with Every 2 years Rs.40/- per piece
white background and black
letters (IAF pattern)
Navy blue pugree (turban) of Four sets every 2 years Rs.75/- per meter
81/2mtrs. length for Sikh armed
guards only
Note : Belt badge, shoulder titles and cap badge are centrally procured and shall be
issued by HO to ZOs once in three years.
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SUB-STAFF / PTS
SUMMER UNIFORM
[Source : HO Cir.No.444/2011]
a) Supply of Terry Cotton / Terry Khadi Uniform
The Sub-staff employees including PTS are eligible for three sets of uniform
once in 2 years. Taking into consideration the need expressed by our Sub-staff
employees, the colour of the uniform has been changed and also the cost of cloth
material and stitching charges have been upwardly revised as below :-
Male Subordinate Staff and : Navy Blue Pant - BSL Suiting Shade/
Permanent Male PTS Raymond Navy/S Kumar’s TC Suiting
A&G at 250/- per meter
Sky Blue Shirt – Binny Mills Shade
No.120 / TC Shirting Madura Mills
(No.999-36’)-@ 125/- per meter.
Stitching Charges per set of Trousers
and Shirt – Metropolitan Cities - 450/-;
Urban/Port Town – 400/- and Semi urban/
Rural centers – 350/-
Female Subordinate Staff : Maroon Colour Saree and Blouse –
: 520/- (including stitching charges)
Female Part Time Sweepers : Terry Khadi Blue Saree with Blouse -
: 520/- (including stitching charges)

Alongwith Terry Khadi Uniform, Sub-staff members belonging to Sikh community

and observing dress code, may be supplied with 3 Nos. of voil “Pagree” (Turban) of
approximately 7 metres long each, having same colour as of the pant (Navy blue).
WINTER UNIFORM [Source : HO Cir.No.46/2013]
For Male Subrodinate staff / Male PTS
As per the provisions of the Bipartite Settlement, confirmed employees in the Subordinate
Staff cadre (full time Peons on regular scale or PTS on graded scale wages i.e. 1/3, 1/2
and 3/4 scale wages except PTS on consolidated wages) are entitled for ONE set of
Woolen Uniform once in THREE years. A set of woolen uniform consisting of a blue
coloured Trouser and buttoned-up coat. The total cost of Woolen Uniform including
stitching charges is Rs.2,500/-. In case Woolen material is not available, terry wool
cloth may be purchased within the price limit prescribed for Woolen cloth.

408
For Female Subordinate Staff/PTS
As per the provisions of the Bipartite Settlement, Branches/Offices may purchase
locally and provide ONE set of Terry Khadi/Terry Cotton/Polyester Saree with one
Blouse and ‘Wool Mark’ full sleeves Woolen Sweater of the same colour to all the
confirmed female members of the Subordinate Staff including PTS on graded scale
wages i.e. 1/3, 2 and 3/4 scale wages, at a cost not exceeding Rs.2,500/- including
Stitching charges for Blouse, once in THREE years.
RAINCOATS/UMBRELLAS
[Source : HO Cir.No.243/1999 & 139/2012]
All the Sub-staff employees will be supplied Raincoats or Umbrellas as per their
option, for use while on duty. The facility of providing Raincoats/Umbrellas will be
extended only once in two years.
Quantum : One raincoat or one umbrella to each of the sub-staff as per his/ her
option.
Rate : The cost per Umbrella should not exceed 200/- (Rupees two hundred only)
The cost per Raincoat should not exceed 750/- (Rupees seven
hundred fifty only)
SHOES & SOCKS
[Source: HO Cir.No.322/2000, 670/2006 & 68/2011]
All confirmed male employees in Subordinate staff cadre including permanent
Part time employees on graded scale wages but except those on consolidated wages,
on production of bills, would be provided one pair of shoes and two pairs of socks,
once in two years. Only leather shoes of black colour should be purchased, for the
sake of uniformity. The eligible female employees in sub-ordinate staff/PTS would be
provided two pairs of slippers (chappals) in lieu of shoes/socks, once in two years.
The cost ceiling for shoes/socks/slippers is as under:-
One pair of Shoes : 549/-
One pair of socks : 42/-
Two pairs of slippers : 591/-
For Drivers
One pair of Shoes : 1,000/-
One pair of Socks : 40/-

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27. UNIFORM MAINTENANCE EXPENSES
[Source: Cir.No.080/2010 & 25/2013]

With a view to enable Subordinate Staff and Part Time Sweepers to maintain
the Uniform clothes supplied in neat and tidy condition, a reimbursement of 75/-
p.m. towards Uniform cloth maintenance expenses shall be made to all the Subordinate
staff and Part Time Sweepers.

28. SUB STAFF - RECKONING OF PAST SERVICE (20.8 OF BPS)

The temporary employees engaged against a permanent vacancy continuously,
is eventually selected as permanent employee, the period of temporary service
rendered would be considered as part of the period of probation reckoned from the
date of initial appointment in the Bank against permanent vacancy and order of
appointment issued accordingly.

29. SPECIAL ASSISTANT’S ALLOWANCE TO THE SWO’S FOR HOLDING THE

2ND SET OF DOUBLE LOCK KEYS AT SINGLE OFFICER BRANCHES
[Source : HO. Cir. No. 23/2013]

The Single Window Operators (SWO’s) working in branches where only single Officer
(Branch Manager) is posted, shall be paid Special Assistant’s Allowance and the
concerned SWO shall apart from performing all his normal SWO duties, shall also
hold the double lock keys.

30. TELEPHONE/MOBILE EXPENSES [Source : Cir.No.081/2010]

Considering the role and involvement of Special Assistants and Clerks in the
developmental activities of the Bank, reimbursement of Telephone / Mobile charges
shall be made at 200/- p.m. and 125/- p.m. to the Special Assistants and Clerks
respectively.

410
31. TRANSFERS - EXPENSES ON PACKING / LOADING / UNLOADING
[Source: HO Cir.No.45/2000 & 747/2007]

The award staff at the time of their transfer are eligible for actual amounts (on
production of bills) upto a ceiling of 1700/- in respect of their transfers towards
expenses incurred for packing, local transportation, loading, unloading, insuring the
luggage etc., in transporting personal effects.

32. TRANSFERS ON REQUEST-TRAVELLING ALLOWANCE & OTHER

EXPENSES [Source: HO Cir.No.297/1999]

Travelling Allowance and expenses on transfers on request will be reimbursed

to the eligible extent subject to the following:
a) The facility will be available only for employees who are transferred on request
after putting in 3 years of service in the branch/office at the centre where
they are presently working;
b) The reimbursement of TA and expenses will be made only where the transfer
on request is within the State/Union Territory;
c) The reimbursement of TA and expenses will be made only in cases where
shifting of family is involved.

33. TRANSFERS – TA EXPENSES FOR THE SECOND TIME

TA expenses will be reimbursed for second time to those Award Staff members
on their transfer / posting on promotion from Sub -staff to Clerical and Clerical to Special
Assistants, who avail Joining Time to shift their family and belongingness to their place
of posting within 6 months from the date of reporting at the new place of posting.

34. TRANSFERS - JOINING TIME - CLUBBING OF CL OR PL/SICK LEAVE

[Source : HO Cir.No.521/2006]

The award staff members will be permitted to club Casual Leave or Privilege/
Sick Leave at the time of availing the Joining Time for shifting family and belongingness
to the new place of posting.
411
35. TRAVELLING EXPENSES WHILE ON OFFICIAL WORK
[Source : HO Cir.No.119/2006]
Where the Clerical employees travel actually by AC II Tier class by mail/ express
train (including Rajdhani and Shatabdi trains), while on official work/ deputation/
transfer/training, they will be reimbursed the actual AC II Tier class fare incurred for
the distance by the shortest and direct route. Where the members of Subordinate
Staff travel actually by AC III Tier class by mail/express train, while on official work/
deputation/ transfer/training, they will be reimbursed the actual AC III Tier class fare
incurred for the distance by the shortest and direct route.

36. UNAVAILED CASUAL LEAVE WITHOUT MEDICAL CERTIFICATE

[Source : HO Cir.No.107/1999]

Subject to Leave rules, an employee may avail of Unavailed Casual Leave of not
exceeding three days on grounds of sickness without production of Medical Certificate
provided that the number of occasions of availment of Unavailed Casual Leave without
production of Medical Certificate does not exceed three times in a calendar year.
Medical Certificate shall not be insisted only when UCL is availed of as above without
clubbing with any other type of leave.

37. UNBLEMISHED SERVICE - SILVER JUBILEE AWARD

[Source : H.O. Cir. No.213/200 & 735/2009]

The employees completing 25 years of unblemished service shall be awarded with a

memento worth 5,000/- on production of bills.

38. WISHING MEMBERS OF STAFF ON THEIR BIRTHDAYS

[Source: HO Cir.No.485/2006]

In the complex day-to-day life, one cherishes certain occasions and prime amongst
them is ones Birthday. As a gesture of goodwill, the management wishes members
of the staff on their birthday which will leave an indelible impression on the psyche of
all the staff members. Accordingly, the head of the Branch/Office will greet the staff
member on his/her birthday by presenting a gift in the form of a Chocolate / sweet
box / with a Birthday Greeting Card and a rose/flower from the Corp Bank family at a
cost not exceeding 100/-. The date of birth of the staff members will be conveyed
to the respective branches in advance.

412
 CHAPTER - V
LOANS & ADVANCES

01. FESTIVAL ADVANCE (FADL)

All the confirmed Award Staff employees including PTS on graded scale wages,
are eligible to avail Festival Advance to the extent of one month’s Gross Salary without
any ceiling, to enable them to celebrate any of the festivals including National Festivals.
The amount shall be repaid in 10 equal monthly instalments commencing from the
month succeeding the month in which the advance is availed.

02. EMPLOYEE DEMAND LOAN (EDL)

Employees who have completed at least one year of confirmed service and
who have not availed the ECOD facility, are eligible to avail the Demand Loan at
concessional rate of interest @9.00% p.a. The quantum of loan is determined depends
upon the length of confirmed service of the employee in the Bank, the purpose for
which the loan is sought, the gross salary and the take home salary. For special
purposes such as marriage, education, medical treatment, religious functions and
house construction, Demand Loan is restricted to the extent of 5 months’ gross salary
and for purposes other than those mentioned above, the amount of loan is restricted
to 3 months’ gross salary. The loan is repayable within a maximum period of 60
Equated Monthly Installments (EMI).

03. SPECIAL DEMAND LOAN (Special EDL)

Employees who have completed 5 years of service and who have not availed the
ECOD facility, are eligible to avail the Special Demand Loan to the extent of 5 months’
gross salary at concessional rate of interest @9.00% p.a. for meeting purposes like
hospitalisation expenses, purchase of consumer durables, vehicle, house, plot/site,
margin money for Vehicle Loan, for Religious ceremonies, marriage of self, children,
brother/sister and any other purposes (other than speculative purposes). The loan is
repayable within a maximum period of 60 Equated Monthly Instalments (EMI).

413
04. EMPLOYEE CONSUMER INSTALMENT LOAN - OLD (ECIL-OLD)
Employees who have joined the Bank prior to 1st April, 1991 and those who
have become eligible to avail the ECIL prior to 1st April, 1991, shall have the option to
avail the loan either under this scheme or under the new scheme evolved by the
Government of India for employees of all Public Sector Banks. Employees who availed
the ECOD facility and also who have availed ESCC for purchase of consumer durables
are not eligible to avail the loan under this scheme.

The purpose for granting ECIL is for meeting expenses on marriage/ religious/
social obligation. The maximum quantum of loan under this Scheme is 30,000/-
and the interest on the loan shall be charged at interest at Benchmark PLR of the
Bank (Corporation Bank Benchmark Advance Rate). The loan together with interest
thereon shall be repayable in not more than 60 Equated Monthly Instalments (EMI).

05. EMPLOYEE CONSUMER INSTALMENT LOAN – NEW (ECIL - NEW)

Employees who have joined the Bank on or after 1st April, 1991 and those who
have become eligible for grant of CIL on or after 1st April, 1991, shall be eligible to
avail ECIL (New). The purpose for granting ECIL is for meeting expenses on marriage/
religious/social obligation. Employees who availed the ECOD facility and also who
have availed ESCC for purchase of consumer durables are not eligible to avail the
loan under this scheme.

The maximum quantum of loan under this Scheme is 15,000/- and the interest
on the loan shall be charged at Benchmark PLR of the Bank (Corporation Bank
Benchmark Advance Rate). The loan together with interest is repayable in not more
than 60 Equated Monthly Instalments (EMI).

06. EMPLOYEE SECURED CASH CREDIT FACILITY (ESCC)

All confirmed employees are eligible for ESCC against the pledge/ assignment/
hypothecation of securities such as NSCs, KVPs, Gold jewellery, LIC policies, Shares/
Debentures of approved companies, Units of UTI and consumer durables. The
maximum amount granted under this scheme is 1.50 lakhs with a sub-limit of
414
 30,000/- for purchase of consumer durables and for permanent part time employees
the limit is fixed at 0.25 lakhs with a sub-limit of 0.15 lakh for purchase of consumer
durables/Jewellery. The facility for permanent part time employees shall be available
only against the security of consumer durables/ jewellery. The repayment of ESCC is
On demand - subject to annual review/ renewal and the loan is to be closed at the
time of cessation of service of the employee. The rate of interest on the Staff Secured
Cash Credit Facility is at the rate 3% below the Corporation Bank Benchmark Advance
Rate (COBAR) being charged by the Bank from time to time.

07. EMPLOYEE CLEAN OVERDRAFT FACILITY (ECOD)

Employees who have completed at least one year of confirmed service, are
eligible to avail the facility in replacement of EDL, Special EDL and Unsecured ECIL
- New/ Old. As such employees who avail the ECOD will not be eligible for such
loans. However, employees can continue to avail the existing loan facilities till they
opt for ECOD. The limits set out are as under:

a) Service upto 3 years Clerical staff 0.25 lakh

Sub-staff 0.15 lakh
b) Service 3 years & above Clerical staff 1.00 lakh
but less than 5 years Sub-staff 0.50 lakh
c) Service 5 years & above Clerical staff 1.50 lakh
but less than 10 years Sub-staff 1.00 lakh
d) Service 10 years & above Clerical staff 3.50 lakh
Sub-staff 1.50 lakh

“Service” for the purpose of this facility shall mean completed years of service
as reckoned from the date of joining the Bank, inclusive of Probationary period. In
respect of Ex-servicemen employees the period of service rendered by them in the
Defence services prior to joining the Bank shall be given weightage in the ratio of 1:4,
i.e. every four completed years of service in the Defence services would be taken as
one year of service in the Bank with a maximum of 5 years. Permanent part time
Sweepers are eligible for limits calculated on a pro-rata basis of Sub-staff limits.

The ECOD is granted for all need based purposes, repayable on demand subject
to annual review/renewal and to be closed at the time of cessaion of service of the
employee. Interest at 9.00% p.a. shall be charged.
415
08. EMPLOYEE CLEAN TERM LOAN (ECTL)
Employee Clean Term Loan (ECTL) facility is introduced to enable staff members
to switch over from the existing Employee Clean Overdraft facility (ECOD) at their
option aimed at liquidating the loan by monthly instalments over a predetermined
period as against continuing ECOD liability at the time of superannuation. Option
once exercised is irrevocable. Employees may continue to avail ECOD will they
opt for ECTL facility. After ECTL is closed, employees are eligible for Employee
Demand Loan (EDL) as per existing terms and conditions. Employees cannot avail
ECOD after closure of ECTL. The quantum of ECTL shall be the limit / balance
availed under ECOD and the interest chargeable is 9% p.a. However, the balance to
be transferred to the above said term loan will be after bringing the outstanding in the
ECOD to the level of limit if overdrawn. The ECTL should be closed in 120 EMI’s. If
the remaining service is less than 10 years, the repayment shall be fixed for 120
EMI’s, but the balance if any shall be adjusted from superannuation / terminal benefits.

09. CONVEYANCE LOAN SCHEME [EHPL]

Workmen employees will be granted a maximum loan amount 75,000/- or
90% of the cost of Two wheeler vehicle whichever is less at interest rate of 8.50%
p.a. (simple). The loan together with the interest thereon is repayable within 84 months
in equal monthly installments. The Scheme is available to all employees including
Subordinate Staff and Part Time Sweepers on graded scale wages on their
confirmation in the services of the Bank.

The employees are also eligible for conversion of outstanding loan liability under
CMOBI/CVEHI availed for purchase of two wheelers in respect of employees who
did not avail EHPL-AW / EHPL-SS earlier, to the new EHPL-AW.

10. CONVEYANCE LOAN TO PART-TIME SWEEPERS ON GRADED SCALE

FOR PURCHASE OF BICYCLE [EHPL-PTS]

Those Part-time Sweepers on Grade Scale wages, who have completed 5 years
of continuous service in the Bank, are eligible for a loan under this Scheme for purchase

416
of Bicycle. The maximum amount of loan granted under this Scheme is 3,000/- or
90% of the cost of the Bicycle, whichever is less at a simple interest at the rate of
7.5% p.a. The loan together with the interest thereon is repayable within 48 months in
equal monthly instalments.

11. MOTOR CAR LOAN FOR CLERICAL CADRE EMPLOYEES [EMCL]

Employees in the Clerical cadre who have completed 10 years of service in the
Bank, are eligible to avail the loan for purchase of a non luxury model brand new
Motor Car or second hand motor car of not more than 10 years old from the date of
first registration. In respect of Ex-servicemen employees, the eligibility criteria for
availing the Motor Car Loan is 5 years. The maximum amount of loan granted under
this scheme is 80% of the cost of the Motor Car, subject to repaying capacity of the
employees, with a repayment period of 200 Equated Monthly Installments. Interest
on the loan charged is 8.5% p.a. (simple).

12. ADDITIONAL CONVEYANCE LOAN FOR AWARD STAFF [ASHPL]

Award staff who is eligible for Conveyance Loan (EHPL) at concessional rate of
interest is also eligible for a loan under this Scheme. Loans under this scheme are
granted for purchase of a two-wheeler and the quantum of loan is 75% of the cost of
vehicle in excess of HPL Limit + Margin of 10% in case of Brand New Two wheeler
and 60% of the cost of vehicle in excess of HPL Limit + Margin of 10% in case of
Second Hand Two Wheeler. The loan together with interest thereon is repayable in
60 EMI in the case of Brand New Two Wheeler and 48 EMI in the case of Second
Hand Two Wheeler. Interest on the loan is charged at COBAR decided by the Bank
from time to time.

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13. LOAN TO EMPLOYEES UNDER THE CORPMOBILE SCHEME [CMOBI]

The employees will be permitted to avail loan under CorpMobile Scheme for purchase
of Motor Car/Two Wheeler, mainly on account of following reasons :-

a) A need for an additional vehicle (Motor Car/Two wheeler) is felt by

employees who already own a vehicle and have availed Conveyance Loan
(EHPL) or Motor Car Loan (EMCL) for the same

b) Clerical cadre employees who desire to avail loan for purchase of car but
due to non completion of the minimum prescribed length of service are
not eligible to avail the loan under the existing scheme applicable to them.

c) Employees who desire to replace their existing vehicles within a period of

4 years from the date of availment of their Conveyance Loan (EHPL) and
within a period of 5 years from the date of availment of Motor Car Loan
(EMCL).

For purchase of car, employee shall have a minimum gross annual income of
1,20,000/- and for purchase of two wheeler an employee shall have a mimumum
gross annual income of 50,000/-. The Loan shall be granted for purchase of brand
new/pre-owned vehicles not older than 3 years from the date of first registration. The
quantum of loan for purchase of two wheeler is upto 1.00 lakh and for purchase of
Motor Car upto 5.00 lakhs.

The prevailing rate of interest on Bank’s CorpMobile Scheme is applicable to the

employees also. The total deductions from the salary of the employees on account of
statutory deductions, loan installments including the EMI of the proposed loan and
the notional monthly interest on ECOD limit assuming that it is fully drawn, should not
exceed 60% of the gross monthly emoluments. In other words, the carry home pay of
an employee should not be less than 40% of his/her gross monthly emoluments. The
loan along with the interest thereon shall be repayable within a maximum of 84 equated
monthly installments in the case of loan for purchase of Car and within a maximum of
60 equated monthly installments in the case of loan for purchase of two wheeler.

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14. STAFF HOUSING LOAN SCHEME (SHL)

All Award Staff members including Part time employees who have completed
five years of continuous service in the Bank, are eligible for the Staff Housing Loan.
In the case of Ex-servicemen, their permanent continuous service in defence forces
shall be taken into account in full, subject however to the condition that the employee
should have put in a minimum of two years of continuous service in our Bank, including
service under probation/apprenticeship. Staff Housing Loans are granted for the
following purposes:
a) Construction of a house on a land already owned or purchased by the
employee or owned by the employee jointly with his/her spouse or in the name
of the spouse;
b) Purchase of land and construction of a house;
c) Purchase of ready built house/flat and making extension/renovation in it;
d) Extension/renovation of house/flat already owned by the employee;
Repayment of loan taken from identifiable sources such as HDFC, LIC, Banks
for house construction even if the construction has already commenced.
Maximum quantum of loan admissible is as under:-
For construction of a new house, purchasing a plot and construction of a house
and purchasing a ready built house/flat:

For Clerical Staff 4.50 lakhs

For Sub-staff 3.00 lakhs
PTS on 3/4 Scale wages 2.25 lakhs
PTS on 1/2 Scale wages 1.50 lakhs
PTS on 1/3 Scale wages 1.00 lakh

For enlarging/repairs/renovation of the house/flat already owned by the

employee, the amount admissible is 50 times the monthly pay (including Special Pay
ranking for PF benefits) subject to the following ceilings :-

Clerical Staff 1,20,000/-

Sub-staff 80,000/-
PTS on 3/4 scale 60,000/-
PTS on 1/2 scale 40,000/-
PTS on 1/3 scale 26,600/-

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 The loan is repayalble in not more than 180 instalments towards principal amount
and 60 instalments towards interest. The following simple rate of interest will be charged
on the loan amount:-
Upto 1.10 lakhs : 5% p.a.
Above 1.10 lakhs }
and upto 4.50 lakhs } 11% per annum.
For the loans sanctioned on or after 01.10.2001-10% p.a.)
The employees shall become eligible for the facility of substitution of property
after 5 years from the date of availment of the Housing Loan, under which they can
dispose off the existing house/flat so as to enable them to own alternate property
after complying with all the terms and conditions that are prescribed for the grant of
Housing Loan.

15. SUPPLEMENTARY STAFF HOUSING LOAN SCHEME (SSHL)

All the employees who are eligible for the Staff Housing Loan (SHL), are eligible
to avail a loan under this Scheme (SSHL) for the following purposes :-
a) Repairs, renovation and alterations to the existing house/flat;
b) For providing fixtures/amenities of permanent nature viz., staircase, wardrobe,
showcase, sump with pumpset, overhead tank and for construction of compound
wall, garage and well/bore well.
c) For repayment of private borrowings availed for construction, purchase of
house/flat, based on relevant records and bills already submitted to the Bank;
d) For meeting the cost of escalation in prices, on the basis of fresh estimates/
bills submitted.
The maximum amount of loan that can be granted under this scheme is 60% of
the limits fixed under the respective Housing Loan Scheme (SHL) with 10% margin
on the SSHL. Accordingly the following limits are in vogue under this Scheme :-

Clerical Staff 2.70 lakh

Sub-staff 1.80 lakh
PTS on 3/4 scale 1.35 lakh
PTS on 1/2 scale 0.90 lakh
PTS on 1/3 scale 0.60 lakh

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 The repayment period prescribed under this scheme is 180 Equated Monthly
Instalments (EMI) subject to the remaining service of the employee in the Bank. The
interest on the loans is charged at COBAR decided by the Bank from time to time.

16. ENHANCED STAFF HOUSING LOAN - NEW (ESHL-N)

The employees who have availed Staff Housing Loan (SHL) under pre-revised
entitlement and who have outstanding liability as on the date of application, are eligible
to avail ESHL-N for the following purposes :

a) For meeting cost of extension, additions, alterations, renovation, repairs etc., to

the existing house/flat;

b) For repayment of debts incurred from approved and verifiable sources, including
SSHL for house building purposes and in connection with substitution of property;

c) For meeting the cost of substitution of property

The maximum amount of the loan shall not exceed the difference between the
SHL/ ESHL already availed and the enhanced limit. The entire loan (ESHLN) together
with interest in the ratio 3:1 towards principal and interest shall be repaid within 240
months in the case of employees who have more than 10 years of service left for
superannuation and in the case of employees who have less than 10 years of service
left for superannuation, shall be permitted to repay the ESHLN within 120 months
from the date of initial disbursement.

The following simple rate of interest will be charged on the loan amount:-

Upto 1.10 lakhs : 5% p.a.

Above 1.10 lakhs }
and upto 4.50 lakhs } 11% per annum.
(For the loans sanctioned on or after 01.10.2001-10% p.a.)

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17. NEW STAFF HOUSING LOAN SCHEME (NSHL)

Eligibility

All confirmed employees are eligible to avail the loan. Employees who had
earlier availed Housing Loan are also eligible for the loan under the Scheme for
acquiring second house/flat, subject to the condition that the Employee can have
only one Housing Loan at concessional rate of interest. Husband and wife working in
our Bank, can avail loan individually or jointly within the total entitlement as applicable
for both put together

Purpose

(a) For construction of residential house on land already owned by the Officer/
Employee in his individual name or jointly with his/her spouse
(b) For purchase of plot and construction of residential house thereon
(c) For purchase of plot with existing house/ready built house. In case of old house
/ flat the estimated future life of the same should be at least 10 years more
than the period in which the loan is to be repaid.
(d) For enlarging / extension of residential house already owned
(e) For purchase of a plot of land under co-operative scheme and building a
house where title will vest with the Officer / Employee after the house is built
(f) Purchasing plot / flat under self-financing housing scheme and building a house
where title will vest with the Officer / Employee after the house is built
(g) For repayment / conversion of loan availed for acquiring / construction of a
house/flat from any institutional source such as housing finance institutions
/ companies, housing boards, commercial banks including loans availed like
SHL/SSHL/ESHL/ESHLN/ CHOME/Non-Repayable withdrawal from SPF, etc.
from our Bank

Quantum of Loan

The maximum amount of housing loan under the scheme is restricted to the
following limits :
(Amount in )
Clerks (Incl. Special Assistants) : 12.00 lakh
Sub-Staff : 8.00 lakh
PTS 3/4 scale wages : 6.00 lakh
PTS 1/2 scale wages : 4.00 lakh
PTS 1/3 scale wages : 2.67 lakh

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OR 90% of the cost of the project (including cost of land), whichever is lower.

Rate of Interest

Interest will be charged at 8.0 % p.a. simple; to be reviewed after 5 years from the
date of introduction of this Scheme.

Simple interest will be charged on the loan amount at monthly rests. The amount of
interest will be calculated on the balance outstanding on the last day of the month.

Interest debited shall be funded and recovered after the principal is paid in full.

Repayment

Repayment of the Loan will be within 240 months (Principal in 180 Equal
Monthly Instalments and Interest in 60 Equal Monthly Instalments). However, the
Officer / Employee may choose to repay the loan in a shorter period.

In the case where lesser repayment period is available, the principal and
interest will be repaid in the ratio of 3:1. However, in the case of Employees having
less than 20 years of remaining service, repayment will be fixed as if having 20 years
of service, subject to their undertaking to repay the loan outstanding, out of terminal
benefit at the time of retirement.

In the case of Employees above 50 years of age at the time of availing the loan,
repayment period will be upto 20 years or 75 years of age, whichever is lower. In
such case instalment should not be more than 60 % of the pension and DA thereon.
In case where such amount of pension is not sufficient to take care of the instalment,
the Employee has to provide sufficient securities by way of FD/KCC / NSC, etc., to
cover the extent of loan amount not covered by such pension amount.

The instalment repaid shall be first adjusted towards principal and thereafter towards
interest.

After liquidation of the principal loan amount, instalment should be fixed to ensure
the liquidation of interest portion within the remaining period.

Repayment Holiday

In respect of construction of new house/flat, repayment will commence after completion

of 24 months from the date of first disbursement or 6 months after completion of the
project, whichever is earlier.

In case of ready built house/flat, repayment will commence from 3rd month following
the month in which the advance is disbursed.

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The repayment holiday given is over and above the repayment period prescribed
under the scheme.

In the case of an Employee who ceases to be in the services of the Bank on account
of Resignation / Dismissal / Removal or termination, the entire loan amount and
interest outstanding on the date on which the Officer / Employee ceases to be
in the service of the Bank, shall become due and payable on such date.

In the case of death of an Employee while in service, the legal heirs may be permitted
to repay the loan on the terms and conditions governing the loan before his death
provided they keep a fixed deposit with the Bank equivalent to the amount
outstanding in loan fully discharged as security for the loan. The legal heirs should
also undertake that they are willing to repay the loan as per the terms of the loan
regularly and abide by the rules and regulations governing the loan scheme. The
interest on the fixed deposit should be credited to an account opened by the legal
heirs and the Bank should be authorised to appropriate the instalments of housing
loan by debit to this account. The interest amount if any, after deduction of the
instalment, may be permitted to be withdrawn by legal heirs. Similarly, if there is a
shortfall, the same should be paid in time by them.

Repayment Capacity

The total amount of deductions including notional interest component of ECOD /

ECTL, towards all the staff loans including Temporary withdrawal of PF and proposed
housing loan but excluding FADL shall not exceed 50% of the last drawn gross
monthly salary of the Officer / Employee.

In the case of the spouse working in our Bank, jointly availing the loan to the extent of
their individual entitlement put together, the repayment capacity should be calculated
based on the income of the both the spouses clubbed together.

Disbursement for Construction

Loan for the construction should be released only after submission of sketch / plan
approved by the Competent Authority and the construction should be according
to the approved plan and specification.

The construction should be completed within 24 months from the date of

disbursement of the first instalment. Extension of time (not more than 12 months) in
deserving cases could be permitted by the Sanctioning Authority.

In case of construction of house/flat, loan will be disbursed in a phased manner in 4

or more instalments. Each such instalment will be released only after verification of

424
end use of funds already released by the Bank, supported by the Engineer’s / Builders
certificate / bills.

In case of purchase of ready built flat/house and for purchase of plot, payment should
be made directly to the seller by way of DD/Pay order along with margin money in the
presence of the Sub-Registrar or proof of margin money paid should be held.

In the case of purchase of plot and construction of house, the amount of loan for
construction of house shall be disbursed only after the creation of mortgage of the
land in favour of the Bank. The purchase of land and mortgage thereof should be
completed within 6 months from the date of release of the loan towards purchase of
the land.

In the case of purchase of flat, the Employee should deposit with the Bank the
agreement for sale of the flat entered into between him/her and the builder. He / She
should also undertake to get the sale deed executed in his / her favour within a period
of 24 months from the date of disbursement of the loan failing which the loan will
become payable forthwith.

Security

● Equitable / Registered Mortgage of the property to be financed

● Co-obligant of the PF nominee

● In cases where the mortgage cannot be created immediately, loan should be

released after execution of Tripartite Agreement, in the prescribed format of
the Bank, requirement of execution of Tripartite Agreement can be waived by
the sanctioning authority in case of purchase from the Govt. Agencies

Location

Individual loans will be admissible for construction, acquisition of a house / plot and
construction of house thereon / flat / at any place in India where the employee would
like to own a house.

Conversion of Existing Housing Loan

Employees who have already availed housing loan as per the existing schemes viz.,
SHL, SSHL, ESHL, ESHLN, CHome, etc., will be allowed to convert the outstanding
loan to the new Scheme, if they so desire.

Such conversion will be done on a written request of the Employee and the balance

425
outstanding and interest accumulated will be allowed to be continued till the date
of coming into effect of the new scheme. Thereafter, new interest rate @ 8.0 % per
annum simple as applicable under the new scheme will be charged from the date of
effect of the new scheme.

The Employees who opt for conversion of existing loan will be entitled to avail the
balance amount under the scheme as mentioned here below :

For enlarging / extension of residential house already owned

For repayment of loan availed for acquiring / construction of a house / flat from any
institutional source such as housing finance institutions / companies, housing boards,
commercial banks including loans availed like SHL/SSHL/ ESHL/ESHLN/CHOME/
Non-Repayable withdrawal from SPF, etc. from our Bank.

Substitution of Security

The facility of substitution of security may be permitted subject to the following

conditions:

(a) Substitution may be permitted only after 5 years from the date of
availment of the loan.

(b) The Employee should seek prior permission for substitution of the property
from the sanctioning authority and also from SPF-HO (if NRW was availed)

(c) The outstanding liability in the existing Loan account will be permitted to be
cleared as per the original repayment schedule.

(d) The entire sale proceeds of the house / flat mortgaged should be
deposited with the branch where the housing loan is availed, in an in-operative
SB account opened for the said purpose. The sale proceeds should be equal
to or more than the liability under the Housing Loan including accrued / funded
interest. If the sale proceeds are less than the amount utstanding under the
loan, the Officer / Employee should bring the differential amount before the sale
is permitted.

(e) The value of the substituted property shall not be less than the value of the
original property (value of the land and cost of construction as per the records
of the branch).

Additional Housing Loan

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Purpose

The Employees who have already availed the loan for acquiring the house / flat are
also eligible for additional housing loan for repair/renovation of the existing
premises as hereunder.

Loan Limit

(Amount in )
Clerks (Incl. Special Assistants) : 3.20 lakh
Sub-Staff : 2.10 lakh
PTS 3/4 scale wages : 1.60 lakh
PTS 1/2 scale wages : 1.05 lakh
PTS 1/3 scale wages : 0.70 lakh

Rate of Interest

8% per annum simple. The Rate of Interest would be subject to review, after five
years from the date of introduction of the Scheme.

Other conditions

The margin of 10% amount at all stages must be contributed proportionately by the
borrower where disbursement is to be made in phases.

This facility will be allowed only after 5 years of sanction of loan for acquiring House/
Flat and all other relevant conditions as mentioned in SHL will also be applicable

Repayment

180 months (Principal in 120 equal monthly instalments and thereafter interest in 60
equal monthly instalments).

Insurance Cover

Insurance cover for the loan amount cannot be compulsory as per IRDA
guidelines. However the loan under NSHL will be covered under Corporation Bank
Employees (House Building Advance) Group Insurance Scheme unless the Officer /
Employee expresses otherwise in writing

Sanctioning Authority

The Branch Head of the Branch where the loan is to be availed of shall be the
Sanctioning Authority for NSHL. The present practice of disbursement of Staff Housing
Loans at the Branch situated nearest to the location of the house / flat being constructed

427
/ acquired out of the proceeds of the Loan shall continue.

Clarifications [Source: HO CIR.NO.29/2013]

Query No. 1: An employee availed NSHL for purchase of a flat / construction of a
house and closed the NSHL at a later date. While retaining the house, whether he
would be entitled to avail NSHL for the second time for purchase / construction of a
second house? If yes, how many times he can avail NSHL during his service?
Answer: Like any other staff housing loan viz. SHL/SSHL/ESHL/ ESHL(N), NSHL
can be availed only once. However, under certain exceptional circumstances, NSHL
may be availed twice as furnished below:
a) Where SHL/SSHL/ESHL/ESHL(N) was not availed earlier and only NSHL was
availed, then on closure of the NSHL, for the purpose of purchasing / construction
of a second house/flat, the same can be availed once again. But it cannot
be availed on the third occasion. Furthermore, once NSHL is availed, then
SHL/SSHL/ESHL/ESHL(N) cannot be availed.
b) Where SHL/SSHL/ESHL/ESHL(N) was availed, NSHL can be availed for
purchase / construction of a second house / flat on closure of SHL/SSHL/ESHL/
ESHL(N). However, in such a situation NSHL cannot be availed for the second
time.
c) Where SHL/SSHL/ESHL/ESHL(N) availed earlier is converted into NSHL, in
such cases also, the employee may avail NSHL for the second time for acquiring
second house subject to closure of the first NSHL. However, the facility will not
be available for the third time.
Query No. 2: On introduction of NSHL Scheme in 2011, an employee had converted
his SHL/SSHL/ESHL/ESHL(N)/CHOME etc. into NSHL as permitted under the
scheme and the balance outstanding in his NSHL account is Rs.4.50 lakh. Whether
the employee can avail the differential amount of Rs.7.50 lakh available to him under
the NSHL limit for purchase / construction of a second house without repaying/closing
the NSHL?
Answer:
i) Where SHL/SSHL/ESHL/ESHL(N)/CHOME availed earlier was converted to
NSHL, then for acquiring second house, the employee shall close the earlier
NSHL by part utilizing the proceeds of second NSHL. However, the facility
shall not be available for the third time.

428
ii) Where SHL/SSHL/ESHL/ESHL(N) is availed earlier, then for acquiring second
house, the employee shall close the earlier SHL/SSHL/ESHL/ESHL(N) by part
utilizing the proceeds of second NSHL. However, the facility shall not be available
for the third time
iii) Where only NSHL is availed earlier, then for acquiring second house, the
employee shall close the earlier NSHL by part utilizing the proceeds of second
NSHL. However, the facility shall not be available for the third time

18. CORP HOME LOAN TO THE EMPLOYEES OF THE BANK [CHOMS]

(A) CORP HOME LOAN IN LIEU OF SSHL

Due to significant differentials in the prevailing interest rates between SSHL and
Corp Home Loans applicable to public, and in order to save an interest burden, the
employees have been permitted to avail Corp Home Loan in lieu of SSHL with a
maximum of 60% of the Staff Housing Loan as applicable to them for the following
purposes:-

a) Repairs, renovation and alterations of the existing house/flat;

b) Providing amenities of permanent nature such as staircase, wardrobe,

showcases, sump with pump set and/or overhead tank;

c) Construction of compound wall, garage, well/bore well;

d) For meeting the additional cost due to escalation in prices on the basis of fresh
estimate/bills

e) Any other improvements which will result in enhancement in the value of the
property Employees who have already availed SSHL and have outstanding
balance under SSHL, are also permitted to convert the outstanding balance in
the SSHL account into Corp Home Loan.
(Employees are not required to seek ‘No Objection Certificate’ from PAD,
H.O. Mangalore to avail this facility)

429
(B) CORP HOME LOAN FOR ACQUIRING SECOND HOUSE/FLAT
In the case of employees of the Bank, Housing Loans are sanctioned at concessional
rates as per the provisions of SHL/NSHL Schemes, within the respective ceilings
stipulated for various categories of employees. Such of the employees, who have already
availed the Housing Loan at concessional rate of interest as per provisions of the Staff
Housing Loans, are also eligible to avail loans under Corp Home Scheme, on the same
terms and conditions as applicable to the public, subject to their repayment capacity, in
case they prefer to purchase/ construct another house/flat.
(Employees are required to seek ‘No Objection Certificate’ from their respective
ZO’s / PAD, H.O. Mangalore to avail this facility)

(C) CORP HOME LOAN FOR EXTENSION OF THE HOUSE

The employees are eligible for availing Corp Home Loan on terms and conditions as
applicable to public, for the purpose of extension of house and certain other purposes,
where the house/flat has been constructed/purchased by availing SHL/SSHL/ESHL,
subject to complying with the following terms :
a) Corp Home Loan shall be extended only where SHL/SSHL/ESHL/ESHL(N)/ Corp
Home Loan (in lieu of SSHL) is outstanding at the time of applying for the loan;
b) Corp Home Loan shall be granted for extension of the house constructed /
purchased out of the proceeds of Staff Housing Loan;
c) Substitution of property
d) Repayment of loans from Banks/co-operative societies/other financial
institutions, availed by the employees, for the purpose of meeting the cost of
extension extension/additional construction of the subject house;
e) The house property mortgaged as security for SHL/SSHL/ESHL/ESHL(N) shall
be taken as continuing security for the proposed Corp Home Loan;
(Employees are required to seek ‘No Objection Certificate’ from their respective
ZO’s / PAD, H.O. Mangalore to avail this facility)

(D) CORP HOME LOAN ALONGWITH STAFF HOUSING LOAN

Simultaneous sanction of Corp Home Loan alongwith the SHL/NSHL will be made to
such of those employees hereafter availing SHL/NSHL for the purpose of construction
of house/purchase of house/flat based on the estimate submitted at the time of availing
SHL/NSHL subject to his/her repaying capacity and other relevant terms and conditions
as applicable to general public.
(Employees are required to seek ‘No Objection Certificate’ from their respective
ZO’s / PAD, H.O. Mangalore to avail this facility)

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19. LOANS AGAINST TERM DEPOSITS OF THE BANK (SDLs)

Loans at a concessional rate of interest are granted to staff members against the
security of term deposits of our Bank such as FDs, KCCs and RDs etc., standing in
the name of the staff member or the retired staff member singly or jointly with any
other member or members of his/her family or the spouse of a deceased member or
a retired member of the Bank’s staff or an Association or a Fund, members of which
are the members of the Bank’s staff.

There is no ceiling on the maximum amount of loan that can be granted against staff
deposits. However it is ensured that prescribed margin is mantained. The rate of
interest chargeable on loans against staff deposits is 1% higher than the rate payable
on such deposits upto a loan limit of 3.00 lakhs. The borrower is free to repay the
loan together with the interest thereon in a lumpsum or in instalments before the due
date of the deposit.

20. CHEQUE DISCOUNTING FACILITY [SDBC]

To enable the employees to meet some urgent/unforeseen commitments, the Bank

offers the facility of discounting third party cheques drawn in favour of staff members.
Third party cheques drawn in favour of staff members may be discounted AT PAR
without levying any charges, upto a limit of 15,000/- (in respect of Drafts/Pay Orders
issued by commercial Banks and cheques issued by Government Departments upto
25,000/-).

The facility of discounting third party cheques at par upto a limit of 15,000/-
(in respect of Drafts/Pay Orders issued by commercial Banks and cheques issued by
Government Departments upto 25,000/-) may also be extended to retired staff
members of our Bank who are not gainfully employed. A ‘Retired Staff Member’ shall
mean a member of the Banks staff who has ceased to be in Bank’s service on attaining
the superannuation, but does not include a resigned staff member.

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21. CORP VIDYA SCHEME – EDUCATIONAL LOAN

a. Eligibility of the Student

Student should be an Indian national. Should have passed previous qualifying
examination. Should have secured at least 60% marks [ 55% for student belonging to
SC/ST category ] in the previous qualifying examination. Further, wherever student is
required to undergo competitive exam for professional courses such as CET, CAT,
AIEEE, COMED-K etc., in such cases, he shall secure a minimum of 55% [50% for
SC/ST] in such competitive exam. Should have secured admission to a higher
education course in recognized institutions in India or Abroad through Entrance test
/ Merit based selection process after completion of HSC [10 plus2 or equivalent].
● Securing admission through Management quota not permitted. However, in
exceptional circumstances, loan can be considered subject to the following conditions:

a] Student shall have secured a minimum marks of 60% [55% for student belonging
to SC/ST category ] in the previous qualifying exam. Further, wherever student
is required to undergo competitive exam for professional courses, in such cases,
he shall secure a minimum of 55% [50% for SC/ST] in such competitive exam.

b] The loan, irrespective of loan amount , shall be fully secured after maintaining
prescribed margin on respective security. Further, amount paid/payable towards
donation/capitation etc., to secure management quota shall not be considered
for eligible loan amount. These loans are not eligible for Central Scheme of
Interest Subsidy.

b. Eligible Courses

For Studies in India:

(a) Approved courses leading to Graduate/Post Graduate Degree, Diploma and

PG Diplomas conducted by recognized Colleges/Universities recognized by
UGC/Govt/AICTE/AIBMS/ ICMR etc..
(b) Courses like ICWA, CA/integrated CA -on virtual /video mode, CFA,etc.,
(c) Courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NID etc.
(d) Regular Degree/Diploma courses like Aeronautical, Pilot training, Shipping etc.,
approved by Director General of Civil Aviation/ Shipping , if the course is pursued
in India.

432
(e) In case of the Aircraft Maintenance Engineering /Pre Sea training courses must
be either a Degree course recognized by a competent University or Diploma
course recognized by appropriate State Body to be eligible for loan. The
employability of the students and employment potential of the course selected
has to be considered while appraising the loan application.
(f) Research course/Ph.D courses for study in India are not eligible for loan
under the scheme.
(g) Approved Courses offered in India by reputed Foreign Universities.
(h) Teachers training /Nursing/B.Ed courses provided the training institutions are
approved either by Central Govt or by State Govt and such courses should lead
to Degree or Diploma course and not to Certificate course.
(i) Employment oriented courses like Teachers training courses and 3 year technical
diploma courses in polytechnic institutions after completion of 10th standard
are also eligible provided they are offered by approved/recognized college/
institutions.

(j) Correspondence courses/Part time /Certificate/Short duration / Vocational / skill

development study courses, off-campus courses and On-site/Partnership
programme are not eligible for loan under the scheme.

For Studies abroad:

(i) Graduation: For job oriented Professional/Technical courses offered by reputed

Universities.

(ii) Post Graduation: MCA, MBA, MS etc.

(iii) Course conducted by CIMA- London, CPA in USA etc.
(iv) Degree/Diploma courses like aeronautical, pilot training, shipping etc provided
these are recognized by competent regulatory bodies in India/Abroad for the
purpose of employment in India/Abroad.
(v) Diploma courses for study abroad is not permitted. However, PG diploma
courses for study abroad is permitted.
(vi) Research course/Ph.D courses for study abroad are not eligible for loan under
the scheme.

c. Eligible Expenses.
(a) Fee payable to College./School/Hostel /Examination/ Library/ Laboratory fee.
(b) Travel expenses/Passage money for studies abroad.

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(c) Caution Deposit, Building Fund/Refundable deposit, though supported by
Institution bills/receipts, are not eligible.
(d) Purchase of books/equipments/instruments/uniforms
(e) Purchase of computer at reasonable cost, if required for completion of the
course
(f) Any other expenses required to complete the course like study tours, project
work, thesis etc.
Note: It is likely that expenditure under the above item may not be available in
the schedule of fees and charges prescribed by the college. Therefore, a realistic
assessment may be made of the requirement under these heads. However,
the maximum expenses may be restricted to 20% of the total tuition fees payable
for completion of the course.
(g) Hostel fees/expenses may be considered as an eligible item for finance under
the Scheme. Payment of hostel fees should be made directly to the hostel
authorities.

(h) Reasonable lodging and boarding charges will be considered in case the student
chooses/is required to opt for outside/private/paying guest accommodation. In
such cases, letter from the Institution regarding non availability of hostel
accommodation need not be insisted.

(i) In such cases, payment towards accommodation and food may be made directly
to the student.

(j) Insurance premium for life of student borrower.

d. Quantum of loan

Studies in India : Maximum of 10 lakhs

Studies Abroad : Maximum of 20 lakhs

Education loans extended to individual member of the family shall not be clubbed
with the education loans availed by any other member of the same family. However,
all loans availed by any individual member of the family shall be aggregated/clubbed
for the purpose of margin, security, rate of interest etc.

Existence of an earlier education loan to the brother(s) and/or sister(s) will not affect
the eligibility of another meritorious student from the same family obtaining education
loan as per this scheme from the bank.

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Repayment of the education loan is based on the future earning potential of the
student. Going by the spirit of the scheme, limit of 4 lakh collateral free loan is
student specific and not family specific. There is no restriction on giving a second
or third collateral free loan to other siblings when one of the siblings has already
taken a collateral free loan.

e. Margin

Up to 4 lakhs : -NIL-

Above 4 lakhs : Studies in India : 5%, Studies abroad : 15%

Scholarship/Assistantship to be in included in margin. Margin may be brought - in on

year - to- year basis as and when disbursement are made on a pro-rate basis.

f. Processing Charges

● No Processing Charges for studies in India

● Rs.2000/- only for studies abroad to be refunded once the loan is availed

(Charges are inclusive of service tax)

g. Prepayment Charges : -NIL-

h. Security

Up to 4.00 Lakh : Co-obligation of Parent/s, Grand Parent/s (if parents are deceased)
No other security.

Above 4.00 Lakh & up to 7.50 Lakh : Co obligation of Parent/s Grand

Parent/s (if parents are deceased) together with collateral in the form of suitable third
party guarantee with a net worth of at least equal to loan amount.

Above 7.50 Lakh : Co- obligation of Parents/Grand Parents (if Parents are deceased)
together with tangible collateral security along with the assignment of future income
of the student for payment of instalments.

i. Rate of Interest

The Educational Loan (Corp Vidya) being granted to the eligible dependent children
of employees shall be charged concessional rate of interest at Bank’s Base Rate i.e.
10.5% p.a. at present. In such cases, no other interest concession available under
the scheme shall be extended.

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● Simple interest will be charged during repayment holiday period.

j. Repayment Period

For loans upto 7.5 lakhs : 10 years - Fixed

For loans above 7.5 lakhs : 15 years - Fixed

Since prepayment penalty is not applicable under the scheme, borrower may prepay
the loan at any time during the currency of the loan.

The loan has to be repaid within a period of 10/15 years after completion of initial
repayment holiday.

Repayment holiday is the course period + 1 year OR 6 months after getting the job
whichever is earlier.

k. Other Guidelines

● In deserving cases and based on merits, the Sanctioning Authority may consider
extending second /top up education loan to the borrower, immediately after the
successful completion of the first course or at a later date, for pursuing higher
studies in India/Abroad, subject to compliance of all other Scheme guidelines
such as eligibility, security, margin etc. In such case repayment holiday period
of existing loan may be extended.

● Extension of Initial repayment holiday: If the student is not able to complete

the course for reasons beyond his control, Sanctioning Authority may at his
discretion consider such extensions as may be deemed necessary to complete
the course

● Banks can also issue the capability certificate for students going abroad for
higher studies. For this purpose financial and other supporting documents may
be obtained from applicant, if required. [some of the foreign universities require
the students to submit a certificate from their bankers about the sponsor’s
solvency/financial capability, with a view of ensure that the sponsors of the
students going abroad for higher studies are capable of meeting the expenses
till completion of studies]

● No due certificate will not be insisted upon as a pre-condition for considering

education loan. However, banks may obtain a declaration/ an affidavit confirming
that no education loans are availed by him from other banks.

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l. Central Scheme for Interest Subsidy

● Extending loan for pursuing studies where admission is secured through

Management Quota is out of the purview of IBA Model scheme. Therefore,
separate set of guidelines are stipulated for such cases. Hence, these loans
are not eligible for Central Scheme for Interest Subsidy. Branches should clarify
/inform this fact to student borrowers before considering the proposal.

(Employees are required to seek ‘No Objection Certificate’ from PAD, H.O.
Mangalore seeking permission to stand as co-obligant, in the prescribed format)

22. STAFF PROVIDENT FUND - TEMPORARY WITHDRAWAL

To meet the temporary financial needs, an employee can withdraw certain amount
from his portion of P.F. contribution. The temporary withdrawals are allowed for the
following purposes:-

(a) To meet the expenses in connection with marriages of self, children or dependent
sisters / brothers;

(b) To meet the expenses in connection with illness of self or members of the family;

(c) To meet the expenses in connection with passage of subscriber or member of

the family to a place outside India;

(d) To meet the expenses in connection with the funeral or ceremonies which by
the religion of the employee it is incumbent upon him to perform and it is obligatory
that expenditure should be incurred by him.

(e) To meet the expenses of Education of children on production of sufficient proof

The amount eligible for SPF temporary withdrawal is 6 months’ Basic pay and PF
ranking portion of permanent special allowance or member’s contribution, whichever
is less, if it is for purposes (a) and (e) given as above and for all other purposes, 3
months’ Basic pay and PF ranking portion of permanent special allowance or member’s
contribution, whichever is less. No fresh withdrawal is allowed unless the earlier one
is repaid in full with interest. The withdrawal and repayments shall be in multiples of

437
a rupee. The amount of withdrawal is to be repaid in not more than
24 instalments in cases of withdrawal upto 3 months’ salary and 48 instalments in the
case of withdrawal upto 6 months’ salary. The amount, applied for withdrawal should
be exactly divisible by the amount of each instalment to be fixed for repayment.

Employees should furnish proof of ceremony, along with the application for
withdrawal in the case of marriage, if the invitation card cannot be sent along with the
application, then an undertaking to comply with the requirement at an early date,
must be submitted. For the purpose of withdrawal, the term ‘Family’ include spouse,
children, step children, dependent parents, sisters, minor brothers residing with the
member and also close relatives of the member.

23. STAFF PROVIDENT FUND - NON-REPAYABLE WITHDRAWAL

If an employee has completed 10 years of service or is due for retirement within

next ten years, he can draw 1/2 of the amount standing to his credit if he has not
opted for Pension and if the member has opted for Pension, the amount of withdrawal
shall not exceed the amount standing to his credit. The non-refundable withdrawal is
allowed for the following purposes:

(a) For meeting the expenditure on building a house or purchase of a house or site
for residential purpose or extension of existing residential building or to repay
the debts in connection with the acquisition of land/building.

(b) To pay premia on policies of Insurance on the life of the subscriber or of his/ her
spouse.

(c) To meet the expenditure of marriage of daughter / sister / son.

In the case of construction and additions or alterations of residential house,

NRW is permissable for carrying out the same on a site owned by the member and /
or the spouse or for continuing construction of residential house already commenced
by the member or spouse or by both on such site. The amount of such withdrawal
should not exceed the actual cost of the house or the site, as the case may be. The
withdrawal is permitted only if the house or site is free from encumbrance. However,
the encumbrance created in favour of Corporation Bank is exempted from this rule.

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The member should furnish an undertaking to the trustees not to encumber or alienate
such house or site. If the withdrawal is for construction of the house, the construction
should commence within 6 months of withdrawal and should be completed within
one year from the date of commencement of the construction. If the withdrawal is for
the purchase of a house or a site, the purchase should be within 6 months of the
withdrawal. If the withdrawal is made for the repayment of loan previously raised for
the purpose of construction or purchase of a house, the repayment of the loan should
be made within 3 months of the withdrawal. In the case of acquisition of land or ready
built house, the entire withdrawal will be released at the time of registration of the
property. The NRW application ID 774 must accompany copies of plan and estimate,
latest nil encumbrance certificate for 13 years, sale agreement, legal opinion and
allotment letter in case of a flat.

If the withdrawal is for the purpose of marriage as mentioned under 02(c) above, the
application should invariably be accompanied by Invitation Card and Declaration form
duly filled in. Such withdrawal shall be allowed not more than 6 months prior to the
date of marriage on specific request by the member by submitting necessary proof of
booking the hall or invitation card along with the NRW application.

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 CHAPTER - VI
STAFF WELFARE SCHEME
1.0 SCHOLARSHIP TO MERITORIOUS CHILDREN OF EMPLOYEES

1.1 OBJECTIVE
To encourage children of employees to further their standard of education
1.2 COVERAGE
All employees on the rolls of the Bank including those drawing graded scale
wages, in respect of their wholly dependent children who are studying in 1st Standard
and onwards, subject to a maximum of 2 children per family.
Children who secure minimum marks prescribed herein below at the Final/ Annual
examination of the previous academic year/ semester / trimester as the case may be and
are promoted to next higher Standard / Class are eligible for Scholarship under the Scheme.
(For example : A child who secures stipulated minimum aggregate of marks in the annual
examination of X Standard will be eligible for grant of Scholarship for studying in
XI Standard, on admission to XI Standard during the current academic year).
Category of Employees Minimum aggregate of marks to be secured
for being eligible for the Scholarship
For children Graduation/ Post
studying in I Std Graduation including
upto XII Std Professional Courses
i) Officers and Clerical Staff
(Other than those belonging
to SC/ ST) 55% 50%
ii) Officers and Clerical Staff
(SC/ ST) 50% 45%
iii) Subordinate Staff (those belonging
to General or SC / ST) 45% 45%
Note: Scholarship in respect of Ist Standard will be reimbursed to wards of an
employee only on completion of the Ist Standard course by securing the
stipulated marks and promoted to II Standard. Eg. Ward of an employee who
was studying in I Standard during the financial year 2011 - 2012 will be
reimbursed with eligible scholarship in the Financial year 2012 - 2013 on securing
the minimum aggregate marks in the Annual Examination of I Standard and
being promoted to II Standard. The ward shall also be eligible for scholarship
for pursuing II Standard course during the current financial year 2012 - 2013.
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1.3 QUANTUM

Standard/ Course of Study Scholarship per Month

i) I to X Std 250/-
ii) XI and XII Standard 450/-
iii) Graduation and Post graduation 500/-

iv) Graduation / Post Graduation in Professional

Courses in Engineering, Medicine, Dental, Post
Graduation Diploma in Management from IIM, MBA
full time regular courses from a recognized
University, graduation courses with a minimum of 4
years duration (excluding internship apprenticeship)
leading to a degree from a recognized University &
3 years’ graduation courses in Physiotherapy, Hotel 750/-
Management, Fashion Technology & Nursing
Course provided the student does not get stipend/
other monetary benefit other than by way of merit
award.
MCA (Master of Computer Application) and Post
Graduation in Mass Communication
Journalism are considered as Professional Courses.
In the case of MBBS 42 years course, the duration
of 2nd MBBS course being 18 months, the
scholarship for the 2nd MBBS be granted for 20
months during that financial year period restricting
to maximum of 45 months during the entire course.

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1.4 TERMS, CONDITIONS AND CLARIFICATIONS

a) Scholarship is payable only for actual duration of the Standard / Course in the
Financial Year subject to a maximum of 10 months.
b) In case of fresh admission to School / Institution anywhere in the middle of the
Financial year, Scholarship is payable only from the month of admission.
c) Where a scholar is certain / expected to complete the Course / Education in
less than 10 months in the Financial Year, Scholarship is payable only for actual
number of months so remaining.
d) If a scholar is expected to be promoted to a Standard /Course having higher
rate of Scholarship anywhere in the middle of the Financial Year, Scholarship
shall be paid at the rate applicable to each Standard / Course. In such cases,
employees shall apply for II instalment only after the scholar is promoted and
admitted to the Higher Standard/ Course.
e) In such of those courses including professional courses where Semester /
Trimester examinations are held without yearly examinations, the basis for
awarding Scholarship shall be the marks obtained in the immediately preceding
Semester / Trimester examination.
f) Eligible Scholarship for the Financial Year shall be paid in lumpsum or in parts,
as the case may be only on submission of certified copy of prescribed marks
card and / or proof of admission.
g) Vocational /part-time courses including CA, ICWA, ACS, Computer Programming
and Doctoral Degrees are excluded from the purview of the scheme.
h) Scholarship may be granted for correspondence courses leading to a recognized
Degree / Diploma/Certificate from a University, recognized by the UNIVERSITY
GRANTS COMMISSION, on obtention of minimum marks stipulated in the
Scheme PROVIDED THE SCHOLAR IS NOT GAINFULLY EMPLOYED.
i) Certificate / Diploma Courses of duration of less than one year are not eligible
for Scholarship.
j) Scholarship will be granted for full time courses in evening classes leading to a
recognized Degree/ Diploma/ Certificate, provided the scholar is not gainfully
employed.
k) A course of study to be considered for grant of Scholarship should be of minimum
one academic year’s duration and should have been recognized by the
Government.

l) Scholarship will be extended only in respect of courses pursued in India.

442
 In some Institutions, marks are awarded in terms of “Grades” and not
“percentage”. In such cases, conversion of Grades into percentage should be
ascertained by the employee from the institution and a certificate of the Institution
to this effect should be submitted.
m) Where both the parents are employees of our Bank, only one of them is eligible
to make an application for Scholarship on behalf of their children.
n) Disciplinary cases:
In the case of employees under suspension or against whom disciplinary action
has been initiated, Scholarship could be granted in respect of their eligible
Children. On conclusion of disciplinary proceedings, in case the penalty imposed
results in Cessation / Termination of services of the employee, the Scholarship
would cease to be payable from the date of award of such punishment. However,
Scholarship already paid, if any, would not be recovered.
o) Cessation of service:
In the event of cessation of service including retirement of an employee, the
Scholarship would continue till the end of the Financial year.
Note: Award of Scholarship or any other benefits under Staff Welfare Schemes
will not be considered, if the claim pertains to previous Financial Year/s.

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 2.0 INCENTIVE FOR EXCELLENCE IN EDUCATION
2.1 OBJECTIVE
To motivate the children of employees to achieve excellence in education.
2.2 COVERAGE
All employees on the rolls of the Bank including those drawing graded scale
wages, in respect of their children – who secure ranks in School / College/ Board/
University as under:
2.3 QUANTUM

Criteria Amount
i) For securing first 3 places in SSLC 4,000/-
or equivalent examination with
minimum of 80% marks, in
respective School where children
of employee studied or a rank
amongst first 20 in these
examinations
ii) For securing first 3 places in PUC 6,000/-
(12th Std.) / Graduation/ Post
Graduation or equivalent/ higher
examination, combination-wise in
respective colleges where
children of employee studied.
‘Combination-wise’ shall mean, for
example, BE (Civil), B.E
(Mechanical), B.E (Chemical), etc.

2.4 SUBMISSION OF APPLICATION

Employees shall submit application along with the following documents:-

i) Certified copy of the marks card issued by the concerned Secondary /

Higher Secondary/ Pre-University Board or University.

ii) Certificate issued by the Head Master / Principal / Dean informing the
Rank secured by the student in the School / College / Board/ University,
as the case may be, on the basis of marks obtained.

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Note:
a) Separate set of applications shall be submitted in respect of each
child.
b) Ranks secured in the Intermediate Examinations like 1st year PUC /
1st year Degree class, 2nd year Degree Class etc., will not be
considered for grant of incentive.
c) Where both parents are employed in our Bank only one of them shall
submit the claim.

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 3.0 FINANCIAL RELIEF TO EMPLOYEES TOWARDS EDUCATION/
REHABILITATION OF THEIR CHILDREN WHO ARE
PHYSICALLYHANDICAPPED / MENTALLY RETARDED
3.1 OBJECTIVE

Physically / mentally disabled children need special attention and care and often
it may be necessary to send such children to Special Rehabilitation Schools /
Institutions. The objective of the Scheme is to mitigate financial hardships encountered
by employees in educating / rehabilitating their disabled children, by reimbursing
school fees or expenses towards Rehabilitation in Rehabilitation Centres / Hospitals,
of such physically handicapped / mentally retarded children or purchase of certain
artificial Aid/Accessories for physically handicapped children.

3.2 COVERAGE

Employees on the rolls of the Bank including those drawing graded scale wages,
who have Physically / mentally disabled children.

3.3 QUANTUM

Reimbursement of expenses with an overall ceiling of 6000/- p.a. per child

subject to the following sub limits:

School fees :
a) Upto SSLC - 4,000/- p.a.
b) Above SSLC - 6,000/- p.a.
c) Mentally retarded children in Rehabilitation Schools/ - 6,000/- p.a.
Centres/ Hospitals/ Domiciliary treatment etc.
d) Purchase of crutches and other accessories like - 6,000/- p.a.
wheel chair etc. for physically handicapped children
of employees

3.5 SUBMISSION OF APPLICATION :

Employees should submit their application along with the following documents
to the Sanctioning Authority duly forwarded by the Branch/Office where they are
working:

i) Attested copy of the Certificate issued by the Medical Officer/ Superintendent

of a Government Hospital indicating the nature and extent of physical / mental
disability.

446
ii) Certificate from School Authority indicating the class of study and the break-up
details of school fees collected during the Financial Year. Attested copies of the
bills/ receipts may be submitted in lieu of the break-up details.

iii) Certificate from the competent authority of Rehabilitation School /Centre /

Hospital etc., indicating the nature of treatment and break-up details of charges
collected during the Financial Year. Attested copy of bills / receipts may be
submitted in lieu of break-up details.

iv) Certificate from a Regd. Medical Practitioner containing nature of domiciliary

treatment and period of such treatment.

NOTE:

a) Separate applications shall be submitted in respect of each child.

b) Employees are advised to claim school fees paid in the Financial year in
lumpsum in the month of March of the financial year.

c) It is clarified that a child is eligible for relief only if the physical disability
is 40% or above. In the case of mentally retarded children, those with
intelligent Quotient (IQ) of 49 and below are eligible for relief.

447
 4.0 EDUCATIONAL GRANT TO CHILDREN OF EMPLOYEES
WHO DIE IN HARNESS

4.1 OBJECTIVE

Untimely demise of an employee may have a disastrous effect on education

and future of his / her children. The objective of this Scheme is to partially mitigate the
financial hardship and to encourage such children to pursue their education.

4.2 COVERAGE

Children of deceased employees who were on the rolls of the Bank at the time
of their death including children of such employees who were drawing graded scale
wages are covered under the Scheme. Educational grant will be given only for
2 children in a family. Only the cases of death which occurred on or after
01.01.1995 only are covered under this Scheme. This Scheme will not cover
cases where appointment is given to the spouse of the deceased employee
under compassionate grounds.

4.3 QUANTUM

Amount of educational grant in the financial year shall be as under:

Sl.No. Level of Education Amount

i) Upto SSLC (including LKG & UKG) 2,500/- p.a.

ii) PUC 3,000/- p.a.

iii) Graduation / Post Graduation 4,000/- p.a.

iv) Graduation / PG in specified

Professional Course as in Scholarship
Scheme 5,500/- p.a.

4.5 SUBMISSION OF APPLICATION

Application in the prescribed format (ANNEXURE-WF 07) along with a certificate

issued by the School / College authority indicating the class in which the child is
studying during the current academic year may be submitted in duplicate by the spouse/
children of deceased employee through the Branch/Office where the deceased
employee last worked.

NOTE : Separate set of application is to be submitted in respect of each child.

448
 5.0 MEDICAL CHECK UP
5.1 OBJECTIVE

The chief objective of the Scheme is to enable the employees/ spouse of

employees to get themselves medically examined so as to know their state of health
and to take timely preventive measures, if found necessary.

5.2 COVERAGE AND PERIODICITY OF CHECK UP

All employees on the rolls of the Bank including those drawing graded scale
wages, who are of more than 30 years of age and their spouses who are more than
35 years of age are covered under the Scheme. The periodicity of checkup for
employees/spouse is as under:

i) Age above 30 years up to 35 years (Employees only) - Once in 3 years

ii) Age above 35 years (Employees & their spouse) - Once in a year

5.3 QUANTUM :

Actual expenditure incurred for total Medical check-up in respect of the items
stipulated below, subject to a ceiling of 1,750/- per employee per check up OR the
contract rate agreed with the clinic / hospital, whichever is less:
i) Cardiac Profile (including lipid profile)
ii) X-Ray - Chest
iii) ECG
iv) Ultra Sound Scanning
v) Blood for TC, DC, ESR, FBS, PPBS and Cholesterol
vi) Urine Analysis
vii) Tonometry (Eye Test)
viii) Physical examination by two doctors out of which one shall be a Gynaecologist ,
for ladies
ix) Evaluation of investigations and results by a Senior Doctor

In the following 7 major ‘A’ class cities, the ceiling on cost of Medical Check up
as above would be 2,250/- per employee per check-up.

i) New Delhi
ii) Mumbai
iii) Kolkata

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iv) Chennai
v) Bangalore
vi) Hyderabad
vii) Ahmedabad

Note: An eligible employee his/her spouse can avail the facility only once in a
Financial Year.

5.5 EMPANELMENT OF HOSPITALS / CLINICS

In all those centers / places where 10 or more eligible employees can avail
medical check-up, concerned Zonal Offices shall empanel Hospitals / Clinics at the
best possible rates by obtaining competitive quotations from reputed hospitals / clinics
and negotiating the rates with them.

If all the tests / examinations stipulated in clause 5.3 above are not available at
any center /place, arrangements can be made with hospitals/ clinics to provide only
the available tests/examinations thereat with appropriate reduction in the rate ceiling
applicable at the concerned centre. The tests/ examinations so made available,
however, should be those which are included in the above stipulated list.

After selecting a hospital / clinic for providing medical check-up, a letter of

empanelment containing the terms and conditions of the arrangement between the
Bank and the Hospital/Clinic, shall be issued to them; a copy thereof, duly signed on
behalf of the Hospital/ clinic for having accepted the terms and conditions shall be
obtained from them.

5.6 PROCEDURE FOR AVAILING MEDICAL CHECK-UP

i) At centers/ places where tie up arrangement with hospitals exists :

Employees working at Centres / Places where the Bank has made arrangements
with Hospitals / Clinics for medical check-up, shall submit application in the
HRMS. If the employee / spouse of employee is eligible to avail the facility, he/
she will be refered to the hospital / clinic through a reference letter (in duplicate).
Employees/spouse of employees shall produce both copies of the reference
letter to the concerned Hospital / Clinic for availing the medical check-up.

ii) The employees stationed at Centres / Places where the Bank does not
have tie-up arrangements with any Hospital / Clinic :

Eligible employees working at centers / places where the Bank has not made
arrangements with hospitals/ clinics, may avail medical check up at any of the
450
 hospitals / clinics arranged for this purpose at other centres. For this, employees
have to submit the requisite application to the Personnel Administration Division,
Head Office / Zonal Office, as the case may be which has empanelled the
particular hospital/ clinic, where the employee desires to get the Medical Check-
up done. However, in such case ceiling limit for medical check up is as applicable
to the work place of employee.

OR

Such employees/ spouse of employees may avail medical check-up at any other
hospital / clinic by taking prior permission from the Zonal Office and request for
reimbursement from the concerned Zonal Office along with original bills / receipts
containing break up of expenses incurred on the tests / examinations along
with a copy of the evaluation report of the concerned hospital / clinic. Branch
Managers/ Officer-in-charge, shall forward the original application to the
concerned Zonal Office, while retaining the duplicate with them.

iii) Employees working at the centre near to any of the 7 metros where the Bank
does not have tie up arrangement with any hospital/ clinic may be permitted to
avail the facility at any of the hospitals / clinics empanelled for this purpose at
the most nearest Metro to his place of work. In such cases, the higher limit of
1,500/- shall be applicable for employees working in branches around these
major “A” Class Cities provided all the following conditions are fulfilled:
a) In the centre where an employee is working the Bank does not have an
empanelled hospital to Medical Check up facility.
b) The nearest centre where an empanelled hospital is available, happens
to be one among the identified Major “A” Class City.
c) The medical checkup facility is availed by the employee after obtaining
permission from the Zonal Office.
d) Medical Check up facility may be availed by the employee / his / her spouse
at any of the empanelled hospital / clinic of his / her choice in other places
on the recommendations from the concerned Zonal Office / Head Office,
purview of which he / she is working, to the Zonal Office which had
empanelled the said hospital / clinic. However, if the ceiling limit at the
place where the employee desire to avail the medical check up facility is
higher than ceiling limit at the place of his / her work, the difference shall
be borne by the employee.

451
iv) PAYMENT TO EMPLOYEES
Applications received from employees (including those on behalf of their spouse)
who have been permitted to undergo medical check-up at any other hospital /
clinic as per para 5.6(ii) above, shall be scrutinized at the Zonal office with
reference to bills / receipts / evaluation reports and if found, in order, eligible
amount shall be sanctioned to the employee with instruction to the concerned
Branch/ Office to release the amount.
On receipt of instruction from Zonal Office, the concerned Branch/Office shall
credit the amount to the SB A/c of the employee by debit to General Charges A/
C – Staff Welfare Expenses (Code No.816 of MSQ-01) at that Branch/Office
with the narration–“Amount sanctioned to Sri / Smt………… E/M.No. ………….
Under Staff Welfare Scheme – Medical Check up vide Ref.No……….…..
dated………………..

5.7 SPECIAL CLINICAL TESTS

A. Mammography Test and / or Pap Smear Test for Lady Employees and
spouse of male employees

All eligible lady employees on the rolls of the Bank including those drawing
graded scale wages and spouse of male employees are eligible for
reimbursement of actual expenditure incurred for Mammography test and / or
Pap Smear Test subject to a maximum of Rs.2,000/- (for both tests together)
per employee / spouse of male employees OR the contract rate agreed with the
hospital / clinic, whichever is less (age above 35 years).
Mammography test and / or Pap Smear Test can be undertaken only on the
advice of a qualified Doctor. While claiming reimbursement, employees shall
submit bills / receipts along with the certified copy of the reference made by the
Doctor. Reimbursement for Mammography Test and / or Pap Smear Test will
be allowed once in 3 years (age above 35 years).

B. Stress Test for employees and spouse of employees

All eligible employees on the rolls of the Bank including those drawing graded
scale wages and their spouses are eligible for reimbursement of actual
expenditure incurred for Stress Test subject to maximum of Rs.500/- per
employee / spouse of employee or contract rate agreed with the hospital / clinic
whichever is less.
Stress Test can be undertaken only on the advice of a qualified Doctor. While
claiming reimbursement, employees shall submit bills / receipts along with the

452
 certified copy of the advice given by the Doctor. Reimbursement for Stress
Test will be allowed only once in 3 years.

5.8 CLARIFICATION
i) For undergoing Medical Check up, employees are not eligible for any special
leave / traveling allowance; employee will have to avail appropriate category of
leave, if necessary.
ii) Employees are advised in their own interest to avail total medical check up
covering all the tests/ examinations mentioned under para 5.3 herein above.
iii) Expenses incurred in excess of the ceiling prescribed under the Scheme, if any,
shall be borne by the concerned employee / spouse of employee and paid by him
/ her to the hospital / clinic immediately after undergoing medical check-up.
iv) Charges incurred in excess of the ceilings prescribed above shall not be
reimbursed / ratified under any circumstances.
If employees / spouse of employee could not avail / undergo some of the tests
/ examinations stipulated in this Scheme due to their non-availability at any center/
place, difference, if any, between the applicable ceiling and actual expenditure shall
not be paid to them.

453
 6.0 REIMBURSEMENT OF HOSPITALISATION EXPENSES TO PART-
TIME SWEEPERS ON GRADED SCALE WAGES

6.1 OBJECTIVE

To provide Hospitalisation Relief to Part-time Sweepers on graded scale wages

as they are eligible for reimbursement of Hospitalisation Expenses only on pro-rata
basis in terms of Bipartite Settlements.

6.2 COVERAGE

All Part-time Sweepers on graded scale wages who are on the rolls of the Bank,
their spouse, wholly dependent children and wholly dependent parents.

6.3 QUANTUM

Ceiling for reimbursement of Hospitalisation Expenses will be the different

between reimbursement eligible for a full time Sub Staff in similar cases and
reimbursement sanctioned to part time sweeper according to his/her wage scale under
Hospitalisation Scheme under BPS with a maximum ceiling of 7,500/- p.a. for the
Financial year, in respect of Part-time Sweeper, his/her spouse, wholly dependent
children and wholly dependent parents together.

6.4 SUBMISSION OF APPLICATION

Part-time Sweepers shall submit the applications alongwith the following

documents:

i) Statement of Medical Expenses incurred and reimbursement claimed.

ii) Certified copy of Discharge Certificate from the Hospital containing the
particulars of date of admission, date of discharge, name of the ailment,
details of treatment/operation and names of the Doctors who have given
the treatment/performed the operation.

iii) Certified copies of Hospitalisation sanction letter/s of Zonal Office

containing details of itemwise sanctioned amount to Part Time Sweepers
according to his/her wage scale & corresponding eligible amount for a full
time Sub Staff.

454
 7.0 REIMBURSEMENT OF EXPENSES INCURRED IN CONNECTION
WITH PRE- NATAL MEDICAL CHECK UP OF LADY EMPLOYEES/
SPOUSE OF MALE EMPLOYEES
7.1 OBJECTIVE
To facilitate pre-natal medical care of lady employees / spouse of male
employees of the Bank.
7.2 COVERAGE
All employees on the rolls of the Bank including those drawing graded scale
wages.
7.3 QUANTUM
Ceiling for reimbursement of expenses on pre-natal medical check up is
1,000/- per pregnancy upto a maximum of two children of the employee.
NOTE:
i) Claims will be admissible only in respect of consultation and clinical /
laboratory tests / investigations and NOT for medicines.
ii) Expenses admissible under Hospitalisation Scheme are NOT covered
under this Scheme.
iii) Expenses incurred only upto the date of delivery are admissible under
the Scheme.
iv) Expenses shall be claimed in a lumpsum by submitting the original bills /
receipts duly attested by the physician who is being consulted / physician’s
prescription.
7.4 SUBMISSION OF APPLICATION
Eligible employees may submit the application alongwith the following
documents:-
i) Statement of expenses incurred and reimbursement claimed.
ii) Relevant bills and Stamped Receipts of hospital / laboratory containing the break-
up particulars of the expenses incurred on tests/ investigations.
iii) Physician’s bill/ receipt indicating the charges for consultation, etc.
iv) A certificate issued by the physician containing the particulars of tests conducted,
pre- natal period, date of delivery, etc.
Branch Manager/ Officer-in-charge shall forward the application to the concerned
Zonal Office, duly retaining a copy thereof at the concerned Branch/Office.
Employees working at Head Office shall submit applications to the Staff Welfare
Section, Personnel Administration Division, Head Office, Mangalore, through the
concerned Senior Manager / Manager of the Department / Division.
455
 8.0 HOSPITALISATION RELIEF

8.1 OBJECTIVE

To provide succor to employees who have incurred Hospitalisation Expenses

towards certain major / minor operations / domiciliary treatment of certain ailments.

8.2 COVERAGE

All employees on the rolls of the Bank including those drawing graded scale
wages, their spouse, wholly dependent children and wholly dependent parents. Married
female employees may be reimbursed claim/s under this scheme either for their
parents or parents-in-laws under the definition of family who are ordinarily residing
and are wholly dependent on her but not both.

8.3 QUANTUM

Reimbursement of difference amount between the actual expenditure incurred

and the reimbursement made by the Bank under hospitalisation scheme as per
Bipartite Settlement / OSR within overall ceiling of 2,50,000/- per employee
subject to the following prescribed ceiling under A, B & C during the financial year on
account of:

A. Major operation involving :

a) Cardiac (including Angiography)
b) Brain (Including hospitalization expenses incurred towards treatment of
brain injury / brain haemorrhage in cases where no surgery is involved
c) Lungs
d) Cancer (including Chemotherapy)
e) Kidney Failure / Transplantation
f) Multiple Fracture sustained in major accidents caused by external, violent
and visible means
g) Hip/Knee replacement
h) Domiciliary treatment for Cancer, Cardiac Ailment and Kidney Failure/
Transplantation (including hospitalization)
i) Liver Transplanation

Maximum Ceiling per financial year :

For Self ) 100% of disallowed ) 2,50,000/- p.a.

For dependent ) amount ) 2,00,000/- p.a.

456
B. Other Major operations & Domiciliary treatment for paralysis

For Self ) 75% of disallowed amount ) 75,000/- p.a.

For dependent ) 50% of the disallowed amount )

C. All other Minor operations

For Self ) 75% of disallowed amount ) 20,000/- p.a.

For dependent ) 50% of the disallowed amount )

D. Domiciliary Treatment for Rheumatoid Arthritis

Reimbursement of expenses towards domiciliary treatment for Rheumatoid
Arthritis, subject to a maximum of 5,000/- p.a. for employees, on the basis of certificate
by Bank’s approved Doctor. This Scheme is subject to review every year.
Reimbursement of expenses incurred towards Oil Massaging as prescribed
by a Registered Ayurvedic Doctor for Domiciliary treatment of Paralysis will be
made, subject to a ceiling of 150/- per occasion with an overall ceiling of
1,000/- for the financial year.

8.4 CLARIFICATION
i) If an employee has been sanctioned say 75,000/- towards ‘other major operations
for dependent he/she shall be reimbursed only upto maximum of 1,75,000/-
p.a. for self and upto maximum of 1,25,000/- p.a. for dependent towards claim
under major operations indicated in Sl.No. A above.
ii) Overall ceiling amount of 2,50,000/- p.a. (For Sl.No. A, B, & C together) should
not exceed per employee per financial year under any circumstances in any
case.

Note:
The following expenses which are not eligible (No provision) for reimbursement
under Bank’s Hospitalisation Scheme (OSR/BPS) would be eligible for reimbursement
under Hospitalisation Relief Scheme.
1 Nursing Charges
2 Pulse Oxymeter charges
3 Monitor charges
4 C Arm charges
5 Professional charges
6 Biopsy charges
7 Dressing charges
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8 Blood Screening charges
9 Diathermy charges
10 Instrument charges (on obtaining the necessary details regarding the nature of
expenses)
11 Physiotherapy – in respect of paralysis and under special operation.
12 Ventilator charges
13 Duty Doctor charges (Restricted to subsequent consultation charges)
14 Nebulisation charges
15 Traction charges (for multiple fracture cases only)
iii) Ceiling limit for sanction of claims towards Bed charges/Room rent will be :
Hospital in metro cities: 100%, or 75%, or 50% (depending upon the nature
of operation, whether for self or for dependent) of the disallowed amount as per
guidelines of the Hospitalisation Relief scheme subject to a maximum of 4 times
the eligibility of the employee concerned under OSR/ BPS, as the case may be.
Hospital in other centres: 100%, or 75% or 50% (depending upon the nature of
operation and whether for self or for dependent) of the disallowed amount as per
guidelines of the Hospitalisation Relief Scheme subject to a maximum of 3 times
the eligibility of the employee concerned under OSR/BPS, as the case may be.
iv) In respect of eligible claims under the scheme, if the employee dies in hospital
during the treatment, full hospitalization expenditure within the ceiling shall be
reimbursed.

8.5 Release of Advance Amount

In respect of special operation (Cardiac, brain, lungs, cancer & kidney

transplantation) considering the huge hospitalization expenses involved, advance
amount over and above the estimated sanction under the bank’s hospitalisation
scheme, however within the ceiling stipulated under the scheme may be released
directly to the hospital subject to obtaining of permission to this effect from the Staff
Welfare Section, Head Office, Mangalore. For the purpose, following documents/
information shall be submitted by the employee concerned:
i) Letter of request for release of advance under Hospitalisation Relief, duly
forwarded by concerned Branch/ Zonal Office with their recommendation.
ii) Nature of operation proposed, for which advance amount is sought.
iii) Estimated amount towards hospitalization expenses in respect of the proposed
operation, as given by the hospital authority concerned.

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 9.0 DEATH RELIEF
9.1 OBJECTIVE
The untimely demise of an employee, particularly when he / she is the bread
winner for the family, results in distress, uncertainty and insecurity for his/her family.
The Scheme is intended to provide immediate financial relief to the family in the
unfortunate event of death of an employee.
9.2 COVERAGE
i) All employees on the rolls of the Bank including those drawing graded
scale wages.
ii) All the Part time Sweepers on consolidated wages are covered for the
benefit under the scheme for a sum of 25,000/- w.e.f. 01-04-2006.
9.3 QUANTUM
A sum of 1.00 lakh will be released to the SPF nominee/s of the deceased
employee. Out of the above, a maximum sum of 10,000/- may be released in advance
to the SPF nominee on death of an employee to meet the immediate expenses. This
amount should be adjusted at the time of final settlement of the claim of death relief.
(In respect of PTS on consolidated wages death relief benefit advance sum of
10,000/- be released to the nominee/s immediately to meet the immediate expenses).
Nomination form in the prescribed format is to be obtained at the time of appointment
of the PTS on consolidated wages and is to be forwarded to Staff Welfare Section,
H.O. Mangalore.
9.4 SANCTIONING AUTHORITY
Senior Manager / Manager, Staff Welfare Section, Personnel Administration
Division, Head Office, shall be the Sanctioning Authority for this Scheme.
9.5 PROCEDURE FOR PAYMENT
Immediately on receipt of information about the death of an employee, the Branch
Manager / Officer-in-charge shall communicate the same to the Staff Welfare Section,
Personnel Administration Division, Head Office along with details of all outstanding
liabilities including Housing Loan/s of the deceased employee and seek instructions
in the matter.
In accordance with the instructions of the Head Office, the Branch/ Office shall
release the amount of relief to the SPF nominee/s nominee in respect of PTS on
consolidated wages as the case may be, by debiting the General Charges A/c – Staff
Welfare Expenses at the branch/ office. The amount should be released after obtaining:
i) An application (in duplicate) from the nominee/s in the prescribed format
ii) A stamped receipt as per the prescribed format from the nominee
iii) Death certificate issued by Registrar of Births & Deaths.

459
 10.0 SUBSIDISED CANTEEN FACILITY

10.1 OBJECTIVE

To subsidise expenditure incurred by employees towards food and beverages

while on duty.

10.2 COVERAGE

All employees on the rolls of the Bank including those drawing graded scale
wages.

10.3 QUANTUM

Actual expenditure incurred on food and beverages, subject to a ceiling of

250/- per employee per month.

Part time employees on consolidated wages are covered under this Scheme as
a very special case, subject to a ceiling of 75/- per employee per month.

10.4 PAYMENT

Payment will be made to the employee on production of bills / receipts duly

countersigned by him / her, on a monthly basis. OR to caterer/s on a monthly basis
(by Pay Order) on submission of bills / receipts in the name of individual employees
that are duly countersigned by the respective employees. Consolidated bills submitted
by caterer/s may also be accepted provided expenditure incurred by individual
employees is mentioned therein with names and countersigned by the employees
concerned. The bills / receipts submitted by employees/ caterer/s should be securely
attached to the concerned debit vouchers.

10.5 CLARIFICATION

i) An employee who is on leave during the entire month, will not be eligible
for reimbursement of Canteen Subsidy for that particular month.

ii) Amount pertaining to a month lapses, if the same is not claimed before
the end of the succeeding month to which it relates. In case the employee
is on leave, the amount may be claimed in the month in which he / she
resumes duty.

460
iii) Employees who are on deputation, training, inspection duty, etc. may claim
the amount from respective branch / office / STC where they are working
/ performing inspection duty / attending training programme, on the last
working day of the month. Branch Manager / Officers-in-charge of the
branches / offices/ Faculty-in-charge of the STC are authorized to make
payment to such employees.

iv) In case an employee could not claim the amount as per item No.(iii) above,
he/ she may claim the same from the branch / office where they are actually
posted on giving a declaration (on the reverse of the Cash Debit voucher)
that he had not claimed the amount for that month from the Branch/Office/
STC where he/she was deputed.

461
 11.0 HOLIDAY HOME

11.1 OBJECTIVE

Holiday Homes have been provided at select tourist centers for enabling
employees to relax, take rest and recuperate while they are on LFC/leave.
11.2 ELIGIBILITY
All employees on the rolls of the Bank including those drawing graded scale
wages and their dependent family members who are eligible for availing LFC / LTC
from the Bank.

11.3 LOCATION

At present our Bank has Holiday Homes at Goa, Mumbai, New Delhi, Shimla,
Bangalore, Hyderabad, Kochi, Kolkata, Chennai & Mysore. The address of the existing
Holiday Homes are furnished below:

BANGALORE
Sovereign The Heritage Hotel
No.19 & 20, 3rd Main, Gandhinagar
Bangalore-560 009

CHENNAI
Udupi Home
Udupi Junction Egmore
Chennai - 600 008
DELHI
TJS Royale
16/16, WEA, Arya Samaj Road,
Opp: Satbhrawan Girls’ High School, Near Bikenerwala,
Karolbagh, New Delhi – 110 005

GOA
Angels Resorts
Chogm Road, Alto de Porvorim,
Bardez, Goa – 403 501

HYDERABAD
Hotel Tulip Inn One Continent,
4-1-1001, Abids,
Hyderabad – 500 001

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 KOCHI
Hotel Presidency,
Ernakulam Town
Kochi - 682 018
KOLKATA
Hotel Panasia Continental,
41/1F, Sarat Bose Road,
Kolkata - 700 020

MUMBAI
Residency Hotel,
Suren Road, Andheri-Kurla Road,
Andheri (E)
Mumbai – 400 093

MYSORE
Shree Guru Residency,
No.10, 10/1, Jhansi Lakshmi
Bai Cross Rd., Devaraj
Mohalla, Mysore-570 005.

SHIMLA
B-201, Sector-3,
Bus Stand,
New Shimla.
TIRUPATI
Kalyan Residency
177, T.P. Area,
Tirupathi-517 501
Ordinarily employees may utilize the facilities under LFC/Leave for a maximum
of 8 days in a financial year, with a restriction to a maximum of 4 days at a stretch/per
occasion.
11.4 TARIFF
Employees applying for allotment of room/s in Holiday Home should remit tariff
at the rate of 50/- per head per day through demand draft drawn in favour of
Corporation Bank A/C Holiday Home, payable at the respective location.
Note: Children below the age of 12 years are exempted from payment of tariff.

463
11.5 INSTRUCTIONS TO EMPLOYEES ON LFC

Booking :

The holiday homes are controlled / managed by the Zonal Offices situated at
the respective places. Application in HRMS should be sent to concerned Zonal Offices,
through the concerned Branch Manager / Officer –in-charge at least one month in
advance along with applicable tariff as above. No booking shall be made more than
3 months in advance. Notice period of one month stipulated above may be relaxed
by the Zonal Office subject to availability of rooms in Holiday Home.

In respect of Holiday Homes where payments in the Hotel Management are

made on actual utilization of the rooms basis (at present at Mumbai, Kochi, Kolkata,
Mysore, Chennai), the facility may be availed by the employees for a maximum period
of 5 days in a financial year. In respect of the Holiday Home at Shimla, an employee
can avail a maximum of 3 days at a time.

11.6 CANCELLATION OF BOOKING

Full refund of the Booking amount will be made to the employee if the booking
is cancelled before 3 days prior to the date of proposed occupation. No refund will be
made if cancellation of booking is made within 3 days from the original date of
occupation. Date of receipt of intimation at the ZO/ Branch administering the Holiday
Home will be reckoned for the purpose of determining the number of days.

11.7 ALLOTMENT

Allotment of room in Holiday Home will be made by the Liaison Officer of the
concerned Zonal Office on the basis of first come first serve basis. Normally, only one
room will be allotted to an employee and his family. However, if the family of the
employee is big and can not be accommodated in a single room, a maximum of
2 rooms may be allotted subject to availability. A waiting list should be maintained for
all pending applications.

Note: In no case, Persons other than those permitted to accompany the

employee on LFC / LTC shall be admitted in the Holiday Home. Holiday Home
facility shall not be available to employees who are on official duty.

11.8 ALLOTMENT LETTER

The Zonal Office would issue allotment letter to the employee concerned in
which the details such as Room No. and the period of allotment will be specifically
stated. The employee concerned will carry with him / her the allotment letter and

464
produce it at the Hotel / Holiday Home. Thereafter, the employee would be allowed to
occupy the room allotted to him/her for the period stated therein. A copy of the allotment
letter would be issued to the Hotel/ in-charge of Holiday Home well in advance for
information. The employee may also be required to produce his/her Identity Card
issued to him/her by the bank, for identification, on demand.

11.10 OTHER CONDITIONS

i) Employees should submit a certified copy of LFC / LTC sanction letter
along with the application OR they should submit the same as and when
the sanction is received by them from the Competent Authority, before
checking in at the Holiday Home.
ii) Employees can avail this facility only on receipt of the firm allotment order.
iii) Employees have to produce the allotment order to the caretaker / in-charge
of the Holiday Home.
iv) In case of non-availability of accommodation, Zonal Office would inform
this to the concerned applicant immediately.
v) Accommodation facility only shall be provided by the Bank, subject to the
tariff payable by the employee as mentioned. All other expenses incurred
by the employee should be reimbursed to the concerned hotel / Holiday
Home before checking-out from there.

11.11 EMPLOYEES VISITING THE PLACE ON SANCTIONED LEAVE

a) No confirmed advance booking of rooms shall be made to this category of
employees.
b) Employees desirous of availing the Holiday Home facility may contact the
Zonal Office concerned along with a copy of leave sanction order.
c) The rooms may be allotted subject to availability and only when there is
no request from employees on LFC/ LTC.

11.12 DISCIPLINE AND DECORUM

Employees are expected to abide by the rules and regulations of the Hotel /
Resort and avoid inconvenience to other occupants / tourists. They shall be held
personally responsible for any loss / damage caused by them to the property /
belongings of the Holiday Home.

Employees availing this facility are required to maintain discipline and decorum
and behave properly whilst they are in the Holiday Home and are requested to
co-operate with the concerned Zonal Office. Any employee found guilty of misutilising
the facility in any manner will be debarred from using the facility with immediate effect.
Besides suitable action, may also be taken against such an employee.

465
12.0 ENCOURAGEMENT TO EMPLOYEES TO ACHIEVE EXCELLENCE
IN THE FIELDS OF SPORTS, ARTS AND CULTURE
12.1 OBJECTIVE

The objective of this Scheme is to identify the talents of employees in the fields of
sports, arts and culture and to encourage them to achieve excellence in these fields.

12.2 COVERAGE

All employees on the rolls of the bank including those drawing graded scale
wages are covered under the Scheme.

12.3 SCOPE

The Scheme covers the performance in the current financial year in the following
areas:
i) Sports
Football, Hockey, Volleyball, Basketball, Cricket, Athletics, Table Tennis,
Shuttle Badminton, Power-lifting, Body Building, Weight-lifting, Aquatics,
Kabaddi, Kho-Kho, Chess, Wrestling, Carrom.
ii) Art & Culture
Fine Arts : Dance – Indian Classical, Western Classical and Folk
Music : (Vocal / Instrumental) Indian Classical, Western Classical,
Light Classical and Folk
Theatre : Classical, Modern and Folk
Literature : Poetry and Prose

12.4 ELIGIBILITY

The employee should possess :

a) A Degree / Certificate for having undergone training / coaching from a

recognized University or an institute recognized by the State / Central
Government / Academies constituted for the promotion of Sports / Arts /
Culture.
AND / OR
b) A certificate of Excellence awarded by any of the aforesaid institutions
during the current financial year.

12.5 QUANTUM OF GRANT

A lumpsum one time grant would be awarded having regard to the level of
participation, achievement and recognition:
466
 For achieving excellence at International level : 10000/-
For achieving excellence at National level : 7000/-
For achieving excellence at State Level : 5000/-
Note: Employees who have been awarded cash grant under this Scheme in any
of the previous years, are not eligible for the award during the current financial
year. If, however, the level of achievement / recognition is at a higher level,
then the differential amount between the two levels could be granted.
12.6 PROVISION FOR GRANT OF AIR FARE
In addition to the provisions of Cash Grant detailed under para 12.5 above,
employees who are selected to represent India after undergoing a due selection
process for the same and thereafter participate in International Meets/Events in any
of the Sports/Games mentioned under para 12.3 hereinabove, will be reimbursed
actual to and fro air fare between India and a place in a foreign country where the
event is held, subject to a maximum of 25,000/-, in the financial year OR the difference
between the actual to and fro air fare and the air fare being reimbursed by the
sponsoring agency, whichever is less.
Employees are required to apply for sanction of such air fare before proceeding
to international events. Sanction will be made by the Staff Welfare Committee solely
at its discretion based on the merits of the case.
12.7 SELECTION OF CANDIDATES
i) The employees should submit application as per the format furnished along
with certified true copies of the certificates mentioned under para 12.4 above.
ii) Applications would be placed before the Staff Welfare Committee for
consideration. If sanctioned, a sanction letter in the format furnished would
be sent to the employee/s under a copy to the concerned branch/office.
12.8 SUBMISSION OF THE REPORT ON PARTICIPATION BY THE EMPLOYEE
CONCERNED
i) The employee who had been sanctioned air fare for participating in
international events / meets as mentioned in Para 12.6 above, are required
to submit a detailed report on their return from the event/ meet, duly
enclosing copies of the certificate of participation and the standing secured.
They are also required to submit the original air ticket. In case, however,
the original Air ticket is to be submitted to the sponsoring authorities, a
copy of the air Ticket is to be submitted.
ii) The report and other copies as mentioned above should be submitted
within 7 days from the date of return.

467
 13.0SCHEME FOR HONOURING EX-SERVICEMEN EMPLOYEES ON
THEIR COMPLETING 10 YEARS OF UNBLEMISHED SERVICE IN THE
BANK AND OVERALL 25 YEARS SERVICE INCLUDING THE PAST
MILITARY SERVICE
13.1 OBJECTIVE

To honour ex-servicemen employee of our Bank who have put in a minimum of

10 years of unblemished service in the Bank and a total of 25 years service including
the past service in the Armed forces.

13.2 COVERAGE

Ex-servicemen employees (both Officers & Award Staff) of our Bank who have
completed a minimum of 10 years of unblemished service in our bank and have put in
not less than 25 years of overall service (together in our Bank & in Armed forces) will
be covered under the Scheme. However, such of those Ex-servicemen employees
who are in a position to complete 25 years of service in the Bank before attaining the
age of superannuation shall be excluded from the purview of the Captioned Scheme.
Further, under the above Scheme, only such of those Ex-servicemen employees
who have been recruited under “Ex-servicemen” Category will be covered. In other
words, employees who are not recruited under”“Ex-servicemen” category though have
served in the Armed Forces prior to joining the Bank are not eligible to be covered
under the Scheme.

The term “unblemished service” would mean that `No punishment other than
censure/ warning has been imposed upon him during the immediate preceding
3 years or the rigour of penalty was in operation, whichever is longer. The award
could be released after the debarment period is over.

Also, the leave record of the ex-servicemen employee should be non-assailable.

In other words, all leave availed by the employee should have been duly sanctioned.

13.3 AWARD

The award will be in the form of an article like wrist watch, silver salver or any
other article of ex-servicemen employee’s choice, costing an amount not exceeding
5,000/- (Rupees Five thousand only).

13.4 SUBMISSION OF APPLICATION

Eligible ex-servicemen employees may submit their application indicating number

of years of service put in by them in our Bank and in Armed forces respectively.

468
13.6 PRESENTATION OF THE AWARD

1. After obtaining sanction intimation the award may be presented by the

Branch Manager in the case of ex-servicemen employees working in
branches; Zonal Head may present the award to ex-servicemen employees
working in their respective office. Eligible ex-servicemen employees
working in Head Office and other Offices may be presented with the award
by the Heads of Department / Office concerned.

2. The award may be presented by arranging a simple function at the Branch

/ Office/ Department concerned attended by all the employees working in
the Branch / Office/ Department, as the case may be.

It may, however, be noted that in the case of branches, the presentation

of the award may be made during their monthly staff meeting.

3. Light refreshments may be served during the function and for this purpose
an expenditure not exceeding 20/- per employee in the case of
metropolitan centers, 15/- per employee in the case of centers other
than rural and 10/- per employee in the cases of rural centers may be
incurred. The details of expenditure incurred for the purchase of article
presented to the ex-servicemen employee and on refreshments along with
the photocopy of the relative bills, should be furnished to the respective
Zonal Office for information and approval.

4. Cost of article presented (maximum upto 5000/-) and the expenses

incurred towards refreshment shall be debited to Staff Welfare Expenses
A/c under “General Charges”, maintained at the Branch/ Office (Code
No.816 of MSQ 01) with the narration “Amount incurred towards the cost
of memento and refreshments served in connection with felicitations to
honour Sri…………………. E/M.No………….. |ex-serviceman employee
of our Bank on completing his 10 years of unblemished service in our
Bank as per sanction vide PAD/SWS/ /200 -200 dated……………..”

5. The bills for purchase of article and expenses incurred towards refreshment
along with sanction letter shall be filed in the Staff Welfare file and made
available for inspection. The ratification letter received from the Zonal Office
shall also be filed and made available for inspection.

469
14.0 REIMBURSEMENT OF HOSPITALISATION EXPENSES (FOR
MAJOR OPERATIONS) TO EMPLOYEES RETIRED ON
SUPERANNUATION
14.1 OBJECTIVE

To provide financial relief to retired employees towards Hospitalisation Expenses

on account of certain major operations, in consideration of their service in the Bank
upto their superannuation.

14.2 COVERAGE

All ‘retired employees’ who were on the rolls of the Bank including those who
were drawing graded scale wages and their spouse are eligible, provided the
hospitalisation is in an hospital / Institute acceptable to the Bank.

Note: i) The term ‘retired employees’ for the above purpose means only those
who retired on superannuation
ii) If the spouse is gainfully employed, he/she is not eligible under the
Scheme.

14.3 QUANTUM

Aggregate ceiling for reimbursement of Hospitalisation Expenses in respect of

a retired employee and spouse together is 2.50 lakh for entire life, subject to the
renewal of the Scheme from time to time.

14.4 OPERATIONS COVERED

Only the following major operations / domiciliary treatment for specified illnesses
are covered under the Scheme:
a) Cardiac Ailment (including Angiography)
b) Cancer (Including Chemotherapy)
c) Brain
d) Kidney Failure / Transplantation
e) Major Lung Operations
f) Blood transfusion in major operations
g) Multiple fracture sustained in Major Accidents caused by external, violent
and visible means.
h) Total Hip and knee replacement
i) Domiciliary Treatment for Heart ailment, Cancer and Kidney Failure /
Transplantation.
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14.5 SANCTIONING AUTHORITY

Senior Manager / Manager, Staff Welfare Section, Personnel Administration

Division, Head Office, Mangalore.

14.6 SUBMISSION OF CLAIMS

Retired employees shall submit their claims as per the proforma ANNEXURE -
WF25 to the Sanctioning Authority along with hospital certificate, discharge summary
and original bills / receipts, through the pension paying Branch or any other Branch of
our Bank if he/she is not a pension optee.

14.7 PAYMENT

Application will be processed at Staff Welfare Section, Personnel Administration

Division, Head Office, Mangalore. If found eligible, sanctioned amount will be credited
to the account of the applicant by debit to Staff Welfare Expenses account maintained
at the Financial & Risk Management Division, Head Office, Mangalore (Code 9900)

14.8 CLARIFICATION

i) After the death of the retired employee, his/her spouse will be eligible for
the Hospitalisation Relief provided the ceiling of 2.50 lakh has not been
exhausted by them. In such cases the reimbursement shall be limited to
the extent of balance available.

ii) Claim under the Scheme is admissible, provided the retired employee/
spouse is admitted as an in-patient in a hospital acceptable to the Bank.

iii) Expenses towards food / beverages and other miscellaneous expenses,

if any, though mentioned in the hospital bill will be not be sanctioned.

iv) The hospital concerned shall invariably mention in their Certificate/

Discharge Summary the time taken for the operation and also whether
the operation / surgery is minor or major.

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 15.0 REIMBURSEMENT OF HOSPITALISATION EXPENSES/MEDICAL
EXPENSES TO EMPLOYEES RETIRED ON SUPERANNUATION
15.1 OBJECTIVE

To reimburse the Hospitalisation Expenses / Medical expenses to employees

retired on superannuation.

15.2 COVERAGE

All ‘retired employees’ who were on the rolls of the Bank (including those who
were drawing graded scale wages) and their spouse.

Note:
i) The term ‘retired employee’ for the above purpose means only those
who retired on superannuation.
ii) If spouse is gainfully employed, he / she is not eligible to claim
reimbursement under the Scheme

15.3 QUANTUM

Aggregate ceiling for reimbursement of Hospitalisation Expenses for the Financial

year, in respect of retired employee and spouse together is 12,000/- p.a.
Within the overall ceiling of 12,000/- p.a. available for reimbursement of
Hospitalisation Expenses (other than for identified major operations) reimbursement
upto 3,500/- p.a. towards Medical Expenses for self and spouse, if eligible, would
be considered for sanction on submission of a declaration to the effect that he/she
has incurred the Medical Expenses to the extent claimed. In the case of Cataract
Operation, admission as inpatient is not required and Domiciliary Treatment
for Parkinson is covered.

15.4 SANCTIONING AUTHORITY

The Senior Manager / Manager, Staff Welfare Section, Personnel Administration

Division, Head Office, Mangalore, shall be authority to sanction claims under this
Scheme.

15.5 SUBMISSION OF CLAIMS

Retired employees shall submit their claims under Hospitalisation Expenses

incurred, in the prescribed format ANNEXURE-WF25 to the Staff Welfare Section,
Personnel Administration Division, Head Office, Mangalore along with the original
hospital certificate and Bills / Receipts, through the Pension Paying Branch or any
Branch of our Bank if he / she is not a pension optee.

472
 The claims in respect of reimbursement of Medical Expenses shall be made by
submitting a declaration as per proforma ANNEXURE-WF25A to the effect that he/
she has incurred the Medical Expenses to the extent claimed.

15.6 PAYMENT

Applications will be processed with due verification of the certificate and bills /
receipts and declaration (in respect of Medical Expenses). If found eligible, the
concerned branch would be advised regarding sanctioned amount to be credited to
the pension / SB A/c of the retired employee by debiting General Charges A/c. – Staff
Welfare Expenses “Reimbursement of Hospitalisation / Medical Expenses to
employees retired on Superannuation” maintained at Financial Management Division,
Head Office, Mangalore (Code No.9900).

15.7 CLARIFICATION

i) Hospitalisation Expenses claims under the Scheme are admissible

provided the retired employee/spouse is admitted as an inpatient in an
hospital acceptable to the Bank.

ii) Expenses towards food/beverages and other miscellaneous expenses, if

any, though mentioned in the hospital bill, will not be sanctioned.

473
 16.0 FINANCIAL RELIEF TO THE SURVIVING SPOUSE OF PRE-1986
RETIREES

16.1 OBJECTIVE

Employees who retired from the service of our Bank prior to 01.01.1986 are not
covered under the pension scheme introduced in the Bank. To mitigate the financial
hardship of such retired employees, IBA introduced a scheme for grant of Ex-gratia
on monthly basis. However, such Ex-gratia payments are restricted to the retired
employees during their life time and on their death such Ex-gratia payments are not
payable to their surviving spouse. The Staff Welfare Committee has decided to
formulate a scheme to provide financial relief to such surviving spouse of deceased
pre-1986 retirees.

16.2 COVERAGE
Surviving spouse of those retired employees who retired on attaining the age of
superannuation before 01.01.1986 and have since deceased.

16.3 QUANTUM
Financial Relief : 2,000/- p.m.

16.4 SANCTIONING AUTHORITY

Senior Manager / Manager, Staff Welfare Section, H.O.

16.5 SUBMISSION OF APPLICATION

The Branch through which concerned pre 1986 retired employee was drawing
the Ex-gratia payments may properly identify the spouse of such deceased pre-1986
retirees. On proper identification, eligible spouse of pre-1986 retired employee may
submit the application (ANNEXURE-WF27) to Personnel Administration Division, H.O.
Mangalore through such branch in the prescribed format.

16.6 PAYMENTS

Applications received at Staff Welfare Section, H.O. will be processed and if

found eligible, the concerned branch would be advised regarding the sanctioning of
the amount to be credited to SB Account of the applicant at the branch by debit to
General Charges account, Staff Welfare Expenses maintained at Financial & Risk
Management Division, H.O. Mangalore (code No.900) on monthly basis on first working
day of the month pertaining to which said financial relief is being released. The financial
relief will be released by the Branch every month, as said above, and same will cease
to be released from month subsequent to the month in which the applicant dies.
474
 17.0 GROUP TERM INSURANCE SCHEME FOR ALL EMPLOYEES OF
OUR BANK, RETIRED EMPLOYEES AND DIRECTORS ON
THE BANK’S BOARD

17.1 The effective date of the master policy is 1st April, 2005.

17.2 ELIGIBILITY

a) Employees who have completed one year service as on 1st April.

b) All permanent employees of the Bank who are aged not less than
18 years and are not more than 60 years.
c) All the Directors on the Bank’s Board who are aged not less than 18 years
and are not more than 65 years.

d) Employees retired on superannuation upto the age of 70 years (entry age

at 69 years).

17.3 The entry date for the subject policy will be

(a) in relation to original members will be effective date (i.e. 1st April, 2005)
and
(b) in relation to new members admitted to the Scheme after 01.11.2009 on
their completing one year service as on 1st April which he / she becomes
eligible

17.4 The terminal date for the aforesaid scheme will be

(a) in respect of employees, the date which is coincident with the date on
which the employee completes the age of 60 years and

(b) in respect of Director/s of the Bank, the date on which the Director
completes the age of 65 years.

17.5 The term ‘service’ for the purpose of aforesaid policy will be the period of
continuous service in the Bank, reckoned from the date on which he was admitted to
the scheme to the terminal date. For this purpose authorized leave availed by the
employee shall be included.

17.6 The term ‘Beneficiary’, for the purpose of subject policy shall mean the person
or persons appointed by the employee as beneficiary or as beneficiaries under the
Provident Fund Scheme of the Bank and whose name/s have been entered in the
register of the employees kept for this purpose by the Bank. However, in the event of
the Provident Fund Nominee/ s not being alive or the nomination in the PF application

475
is not being effected, the benefits under the policy shall be paid to the legal heirs of
the employee / Director.
17.7 The benefit assured under the Scheme in respect of Employee/ Director
(member) are strictly personal and cannot be assigned, charged or alienated in any
way whatsoever by the Employee / Director.
17.8 In any case where the Life Insurance Corporation of India is liable to account to
the Revenue Authorities for Income Tax or any other Taxes or duties or any payments
made under subject policy, the LIC of India will deduct such sums from the respective
payments.
17.9 Subject to the provisions of the general conditions, the assurance effected under
the policy shall continue in force for a period of one year from the effective date and
shall be renewable yearly at the option of the Bank on each annual renewal date.
17.10 AMOUNT OF SUM ASSURED
An assurance shall be effected on the life of each of the members under one year
renewable Term Insurance Policy for a sum Assured equal to Rupees 3.00 Lakhs.
17.11 The sum assured under the assurance shall become payable only in the event
of death of the member whilst in service prior to the Terminal Date, provided the
assurance is in force at that time. The sum assured shall be payable to the grantees
for the benefit of the beneficiary of the member.
17.12 The assurance on the life of the members shall terminate on the happening of
any of the following events:
a) Discontinuance of payment of premium or
b) The member reaching the Terminal Date or
c) The member ceasing to be in the service of the Bank/Bank’s Board
17.13 The Term Insurance carries no surrender or paid up value.
17.14 PROCEDURE
Procedure to be followed for preferring claim under the Scheme in the unfortunate
event of an employee / Director dying in harness:
a) Immediately on receipt of the information regarding the death of an
Employee/ Director on the Bank’s Board, an application in the prescribed
format duly filled in all respects, along with an attested photo copy of the
death certificate, should be forwarded to PAD (Staff Welfare Section),
under a copy to the concerned Zonal Office.
b) The claim so received will be submitted to Life Insurance Corporation of
India by this Division. The full benefit of the claim will be passed on to the
beneficiary, on settlement of the claim by the LIC of India.

476
 18.0 SCHEME FOR PHYSICALLY HANDICAPPED AND VISUALLY
IMPAIRED EMPLOYEES
18.1 OBJECTIVE
Reimbursement of Expenses incurred by
(a) Physically handicapped employees towards the cost of a wheel chair/
Artificial Limbs/ Calipers (Shoes)
(b) Visually impaired employees towards the cost of spectacles
(c) Hearing Impaired employees towards the cost of Hearing Aid
18.2 ELIGIBILITY
Benefit under the scheme will be available only to the employees recruited
under the category of disablement.
18.3 QUANTUM
a) Reimbursement of expenses incurred by the Physically handicapped
employees towards (i) the actual cost of a Wheel Chair / Artificial Limbs or
upto a maximum Ceiling of 5,000/- whichever is lower - Once in 5 years.
(ii) the cost of Calipers / Shoes not exceeding 2,500/- once in 2 years.
b) Reimbursement of actual cost of spectacles incurred by the visually
impaired employees with a maximum ceiling of 1,500/- whichever is
lower - Once in 3 years.
c) Reimbursement of expenses incurred by Hearing impaired employees
towards the actual cost of Hearing Aid or upto a maximum ceiling of
6,000/- whichever is lower – once in three years.
18.4 SANCTIONING AUTHORITY
For employees working at Branches/ Other Offices including Zonal Offices :
Senior Manager/Manager in charge of Personnel Department at the concerned Zonal
Office.
For employees working at Head Office:
Senior Manager/Manager, Staff Welfare Section {PAD}, H.O. Mangalore.
18.4 SUBMISSION OF APPLICATION
Eligible employees should submit their application along with the bills/stamped
receipt for the purchase of Wheel Chair/ Artificial Limbs / spectacles / Hearing Aid /
Calipers / Shoes, as the case may be, from reputed suppliers {having Central Sales
Tax number) to the sanctioning authority duly forwarded by the Branch/Official where
they are working.

477
 19.0 SAVINGS LINKED INSURANCE SCHEME
19.1 Under the scheme a Master Policy obtained by the Bank from Life Insurance
Corporation of India (LICI)

19.2 The Scheme envisages insurance cover with Savings Linkage. Under the scheme,
in the event of the member of the scheme dying in harness, the sum assured together
with the accumulated savings and the interest (at present at the rate of 8% p.a.
compounded at yearly rests) thereon becomes payable by the LICI to the nominee/s.
In case of retirement/resignation etc. the risk cover ceases from the date from which
the member ceases to be in the services of the Bank. However, the Savings portion
is payable to the person concerned in such cases.

19.3 PAYMENT OF THE PREMIUM

Under the scheme, while the monthly Savings Component is borne by the
employee, the risk premium portion is being borne by the Bank.

19.4 The Scheme has certain advantages such as low premium, absence of Medical
Checkup of the insured, tax benefit to the employee/Bank etc. Besides the scheme
serve as a Welfare Measure in the unfortunate event of an employee dying in harness.

19.5 ELIGIBILITY

The employees who have joined the scheme at the time of the introduction of
the scheme and employees who have joined the Services of the Bank after introduction
of the scheme (i.e. 20-07-2002) are covered compulsorily under the scheme and
they can enter the scheme on the next Annual Renewal date.

19.6 With effect from 20th July, 2006, the risk premium (at the rate of 2.40 p.m. for
10,000/- sum assured) payable by the Bank and the savings (at 7.60 p.m. for
10,000/-) deducted from the salary of the members are as under:

Category Sum Assured Risk Savings Total

(in ) Premium Premium

CMD, ED, Officers IV to VII 3,75,000/- 90/- 285/- 375/-

Officers in scale I to III 3,00,000/- 72/- 228/- 300/-

Clerical 2,25,000/- 54/- 171/- 225/-

Sub Staff 1,50,000/- 36/- 114/- 150/-

PTS on graded scale 75,000/- 18/- 57/- 75/-

478
19.8 As per the rules of the Scheme, the employer shall recover the contribution
(Savings Portion) in respect of all the members from the salaries and remit the same
in full to the Corporation. The remittance should also include the contribution relating
to such of those members who are not in receipt of the salary for a particular month
due to any reason. In such cases, savings portion of the premium is to be remitted by
the branches by debiting the amount applicable to the respective accounts of the
employees and TOD if any shall be dealt with and regularize in accordance with the
existing guidelines.

19.9 In case of promotion, when the promotee moves into a higher classification, the
sum assured and savings portion will remain the same as for the previous grade until
the Annual Renewal date immediately following the date of promotion. The same
principle shall be applicable in the case of reversion as well.

19.10 SETTLEMENT OF CLAIM

The nominee under this scheme shall be the nominee to the Provident Fund.
On cession of membership, all the benefits payable under this scheme shall be settled
by the LICI through the Bank and paid to the member/nominee as the case may be.

19.11 The Bank may discontinue the scheme at any time and subject to 3 months
previous notice being given to members and LICI, such discontinuance shall be
effective from the 1st of the month coincident with or following the expiry of the notice
period. In such case, the savings portion of the premium will be paid to the members
along with the interest thereon.

479
 20. REIMBURSEMENT OF COST OF SPECTACLES

20.1 ELIGIBILITY

Employees who complete the age of 40 years as on 1st April of Financial year
are eligible to avail the facility during that financial year.

20.2 LIMIT

Not exceeding 1,000/- (Rupees One thousand only)

20.3 PERIODICITY

Once in three years.

20.4 OTHER GUIDELINES

a) The expenses incurred on purpose of spectacles shall be reimbursed once

in three years on the production of relative bills/vouchers.

b) The period of three years shall be reckoned from the date of sanction.

c) Application along with the original bills issued by the dealer of spectacles
shall be scrutinized by the sanctioning authority and on approval, the
amount shall be credited to the SB/ECOD account of the employee by
debit to General Charges A/c – Staff Welfare Expenses at the concerned
branch/office.

d) The scheme is operationalised through HRMS.

e) In case of Sub-staff and PTS, the printout of the application submitted

through HRMS should invariably be signed by the applicant.

480
 21. HOLIDAY HOME FACILITY TO EMPLOYEES RETIRED ON
SUPERANNUATION
21.1 Eligibility:

Holiday Home Facility is available to all the employees retired on superannuation

(including those who were drawing graded scale wages) who were on the rolls of the
Bank at the time of retirement and to their spouse and dependents. Facility is available
during the life time of the retired employee.

21.2 Facility in brief

● Bank’s existing Holiday Home Facility has been extended to all the
employees retired on superannuation for a maximum period of 6 days, subject
to a ceiling of 3 days per holiday home and for a maximum of 2 Holiday Homes
in a financial year.
● Facility is available at places other than where retired employee concerned
ordinarily resides.
● Facility is not made available in the months of April, May, October and November.
● An amount of Rs.50/- per head per day will be recovered as tariff

21.3 Administration

● Holiday Homes are administered/managed by the Zonal Offices situated at the

respective places

21.4 Booking

● The retired employee concerned should approach the pension drawing branch
or nearest branch of the Bank of his place if he/she is not a pension optee with
his/her Identity Card issued by the Bank, for identification and submit the
application in the prescribed format along with tariff at the rate of 50/- per
head per day.
● The official concerned having admin rights at the Branch will enter the application
in the HRMS and forward the same to Zonal Office concerned.
● The application should be submitted at least one month in advance. Notice
period of one month stipulated above may be relaxed by the Zonal Office subject
to availability of rooms in the Holiday Home.
● No booking shall be made more than 3 months in advance
● In case of non-availability of accommodation, Zonal Office would inform to the
concerned applicant immediately.

481
21.5 Allotment

● Allotment of room in Holiday Home will be made by the concerned Zonal Office
on the basis of first come first serve basis. A waiting list should be maintained
for all pending applications.

● Only one room will be allotted to a retired employee.

● The Zonal Office concerned would issue allotment letter to the retired employee
under copy to the Hotel/in-charge of the Holiday Home well in advance for
information.

21.6 Check in and Check Out:

● The retired employee concerned will produce the identity card issued by
the Bank at the Hotel/Holiday Home along with allotment letter issued by the
zonal office concerned. carry with him/her the allotment letter and produce it at
the Hotel/Holiday Home.

● Upon completion of registration formalities at the hotel/holiday home, the retired

employee would be allowed to occupy the room allotted for the period for which
the sanction is accorded.

● Expenses under the arrangement includes room rental only. All other expenses
incurred by the retired employee should be reimbursed to the concerned Hotel/
Holiday Home before checking-out.

21.7 Cancellation of Booking:

● In case the retired employee prefers to cancel the booking, he/she may do so,
by way of application for cancellation to the zonal office concerned through the
branch where the application for booking is submitted.

● Full refund of the Booking amount will be made to the retired employee if the
booking is cancelled before 3 days prior to the date of proposed occupation.
No refund will be made if cancellation of booking is made within 3 days from the
original date of proposed occupation.

482
 CHAPTER - VII
SOCIAL SECURITY SCHEMES

CORPORATION BANK EMPLOYEES’GRATUITY FUND REGULATIONS

1. For the proper administration of the Trust creating a Gratuity Fund for the benefit
of the employees of the Corporation Bank known as “Corporation Bank
Employees Gratuity Fund”, the following rules are framed which shall come
into force with effect from 1st December, 1962.

Short title and definitions

2. The Fund shall be called “CORPORATION BANK EMPLOYEES GRATUITY

FUND”.

In these Regulations, unless there is anything repugnant to the subject or

context, “THE BANK” means Corporation Bank.
“THE FUND” means Corporation Bank Employees Gratuity Fund.
“THE TRUSTEE” means and includes the present Trustees or the survivor or
survivors among them or the Trustee or Trustees for the time being of the Fund.
“THE EMPLOYEES””mean the permanent employees of the Bank and any
Director of the Bank if such Director is a whole-time bona fide employee of the
Bank.
Constitution of Fund

3. The Fund shall consist of all contributions made by the Bank from time to time
either in cash or kind and all securities purchased therewith or investmentsmade
therefrom and of interest accrued or received thereon and all kinds of
accumulations thereof.

4. To achieve the objects of the Fund, the Trustees may accept any contribution
either in cash or in kind which the Bank may determine to contribute from time
to time but, such contribution together with any amounts in hand shall in no
case be less than the amount of gratuity payable by the Bank under its rules
and regulations to the employees during the year or any particular time. The
ordinary annual contribution by the Bank to the Fund shall not, however, exceed
10% of the salary of each employee during the year.

483
5. The Trustees shall be entitled, with the consent of the majority of the Trustees,
to borrow, if need be, against the assets of the Fund or otherwise by way of an
overdraft loan or otherwise as may be necessary for effectually carrying out the
objects of the Fund and they shall have for the said purpose, powers to pledge
the credit and assets of the Fund’s properties.

6. No moneys or assets belonging to the Fund shall be receivable by the Bank

under any circumstances nor shall the Bank have any lien or charge on the
Fund.

Constitution of Board of Trustees

7. (a) The Fund shall be vested in a Board of Trustees consisting of not less
than two and not more than five Trustees to be appointed by the Board of
Directors of the Bank from time to time from only among the Directors and/
or employees of the Bank. The determination of the number of Trustees
shall be at the sole discretion of the Board of Directors of the Bank, subject,
however, to the condition that the minimum shall not be less than two.
(b) A Trustee shall vacate his office as Trustee of the Fund when he ceases to
be a Director or an employee of the Bank, or when he ceases to reside in
India.
(c) The Trustees may retire at any time on giving seven days notice in writing
to the Bank and to the other Trustees of his desire to do so.

Secretary

8. The Trustees, may, from amongst themselves appoint a Secretary for the
purpose of carrying out the day-to-day administration of the Fund and he shall
hold that office at the pleasure of the Trustees.

Meeting of Trustees-quorum-delegation of powers

9. The Trustees may appoint and nominate any one amongst themselves as
Chairman for such time as they determine and such Chairman shall continue
as such until another Chairman is appointed in his place. He shall preside over
all meetings of the Trustees in case he is present at such meetings.
10. Each Trustee present at a meeting shall be entitled to one vote on any matter
and in case of equality of votes, the Chairman shall have a second or casting
vote. The decision of the majority of the Trustees at a meeting shall be final
and binding on all.

484
11. The Trustees may meet together for the despatch of business, adjourn and
otherwise regulate their meetings as they think fit. Two Trustees shall form a
quorum for a meeting of the Trustees provided one of them is from amongst
the Directors of the Bank.
If, at any meeting, the Chairman is not present within thirty minutes of the time
appointed for the meeting, the Trustees present may choose one among them
to be Chairman for such meeting.

12 Notice of a meeting of the Trustees may be sent to the Trustees at their registered
address for the time being in the record of the Trust, either by delivering it in
person or sending it by pre-paid post and/or posting, it shall be deemed to have
reached him in the ordinary course of post.
13 All meetings of the Trustees shall be held at the Head Office of the Bank at
Mangalore or at such place as the Trustees for the time being may, from time
to time, decide.
14 The minutes of the meetings of Trustees shall be entered in a book to be kept
for the purpose and shall be signed by the Chairman of the meeting or in the
following meeting shall be read over and shall be so entered and signed and as
also other matters transacted at such meeting.
15 The Trustees may, from time to time, by resolution authorise any one or more
of them to sign and endorse for transfer or for conversion or for payment of
G.P.Notes, securities issued by the Government of India, State Governments
and all other securities held by the Trustees and to sign or endorse cheques,
drafts, interest warrants or receipts for interest and to hold all securities, etc.,
under safe custody.

Accounts and Registers

16. The accounts of the Fund shall be made up yearly as at 31st March and the
Trustees shall prepare a Balance Sheet showing the receipts and payments,
dealings and transactions during the year in such form as is considered suitable
by them. For the said purpose, the Trustees shall appoint an Auditor or Auditors
who shall have access to all books of accounts, registers, vouchers and
documents connected with trust.

17. The following registers shall be maintained by the Trustees:

a) A register for keeping minutes of all meetings of the Trustees.
b) A register for recording names of all Trustees from time to time with their
full address.
485
 c) A register for recording names of all persons who receive gratuity out of
the Fund together with the amount paid to each of them.
d) Books of accounts as may be required for maintenance of accounts of the
Fund.
e) Register of investment.
f) Register of nominations.

18. The accounts of the Fund and the Registers shall be maintained at such office
of the Bank as the Trustees may, from time to time, decide.

Investment of Funds

19. The moneys contributed to the Fund or received or accruing by way of interest
or otherwise to the Fund shall, within fifteen days from the date of contribution,
receipt or accrual, as the case may be, either

a) be deposited
i) in the Post Office Savings Bank Account; OR
ii) in a special account to be opened for the purpose in the State Bank of
India or in a Scheduled Bank; OR
b) be invested in the securities mentioned or referred to in clauses (a) to (e) of
Section 20 of the Indian Trusts Act, 1882 (2 of 1882) payable both in respect
of capital and interest in India.

20. In pursuance of Regulation No. 19, all or any moneys of the Fund in the hands
of the Trustees of the Fund from time to time, shall preferably be deposited
with the Corporation Bank (being a Scheduled Bank), in a special account
opened for the said purpose and the Trustees may authorise any two amongst
themselves to operate upon the said account or accounts.

Eligibility for and quantum of gratuity payable

21. Every employee of the Bank shall be entitled to receive gratuity in the following
circumstances:-

a) Retirement an attaining superannuation.

b) Death
c) Disablement rendering him unfit for further service as certified by a Medical
Officer approved by the Bank.
d) Resignation/Voluntary Retirement after completing ten years of continuous
service or
486
 e) Termination of service completion of 10 years of service.
f) Retrenchment

22. In cases coming under (a) to (e) of Regulation No. 21, Gratuity shall be payable
to the employee at the rate of one month’s pay for each completed year of
service and proportionately on prorata for the part of the year of service, not
being less than 6 months subject to a maximum of 15 months with effect from
01-11-1987.
In cases coming under sub-clause of (f) i.e, on retrenchment, the employee
shall be entitled to receive Gratuity at the rate of half month’s salary for every
completed year of service and proportionately on prorata for the part of the
year of service not being less than 6 months, subject to a minimum of two
months’ salary.
Provided however, any cases coming under sub-clause (a) to (e) of Regulation
No. 21, Gratuity shall be payable to the whole time Director, irrespective of the
period of his service as a whole time Director, at the rate prescribed by the
Central Government in the order of appointment of such whole time Director.

23. In addition to the maximum Gratuity provided under the Regulation 22, an
amount at the rate of half-month’s pay for each completed year of service and
proportionately on pro-rata for the part of year of service; and being less than 6
months, shall be paid to an employee who has put in more than 30 years of
service.

Note: If the fraction of service beyond completed year of service is six months
or more, gratuity will be paid prorata for the period.

24. There will be no forfeiture of gratuity for dismissal on account of misconduct

except in cases where such misconduct causes financial loss to the Bank and
in that case to that extent only.

25. Length of service of an employee shall be calculated from the day of his initial
appointment, whether permanent or temporary, in the Bank till its cessation.

26. For the purpose of these Regulations, ‘pay’ will mean the average of the full
amount of basic pay and special allowances and officiating allowance, if any,
payable to an employee during the twelve months next preceding death,
disability, retirement, resignation or termination of service, as the case may be.

In the case of retrenchment, ‘Salary’ means, the Basic Pay and all other
allowances drawn during the month next preceding retrenchment.

487
27. Notwithstanding anything contained in Regulations Nos.22, 23, 25 and 26, the
Board of Directors of the Bank may, at their entire discretion, in special cases,
sanction gratuity in excess of the prescribed limit in such manner and to such
extent as they deem fit.

28. Nothing in the Regulations shall be deemed to restrict in any way the right of
the Bank to terminate the services of an employee nor shall his being an
employee be used by the employee as a ground for increasing damages in any
action brought by such employee against the Bank in respect of the termination
of his employment and no expression or intention on the part of the Bank herein-
contained shall create any legal obligation or importance or any legal liability
on the Bank to the employee.

Income-tax payable on gratuity amounts

29. The Trustees shall be responsible for the deduction of tax from the Gratuity
payable under these Regulations and for crediting the tax so deducted to the
Government revenue.

Appointment of nominees and powers of the Trustees to deal with the amounts
of deceased members
30. Every employee of the Bank is at liberty to nominate in writing any person or
any number of persons in the prescribed form annexed to these Regulations,
to whom the amount payable shall be paid in the event of his death while in the
service of the Bank or before his claim on the Fund shall have been discharged
and may, from time to time, change such nomination in writing.
In the event of the death of the nominee prior to the death of the employee and
no other person having in the interval been nominated by the employee, the
amount payable to the employee shall be dealt with in accordance with
Regulation No.33.

31 On the death of an employee who shall have made a nomination in accordance

with Regulation No. 30, the full amount payable to him according to these
Regulations shall be paid to the nominee irrespective of the period for which
the employee may have served and such payment shall be a good discharge
to the Trustee against all claims whatsoever in respect of the said Fund by any
one whomsoever claiming through the said employee or otherwise.

32. If the nominee is a minor, the employee shall, at the time of the nomination
state the age of the nominee and shall also appoint in writing a person of full
age to whom the amount payable is to be paid on behalf of the minor nominee
488
 in the event of the employee dying before the minor nominee attains the age of
majority. If any person so appointed predeceases the employee before the
minor nominee attains his majority, the employee shall forthwith similarly appoint
another person of full age to receive the amount on behalf of the minor nominee
and, from time to time, forthwith make a fresh appointment when this is
necessitated by the death of the person appointed to receive payment on behalf
of the nominee.
The nomination made, as aforesaid, remains in full force and effect until the
nominee’s death or until his nomination or appointment has been revoked.

33. On the death of an employee not survived by a nominee, the full amount due to
the employee according to these Regulations shall be paid to his heirs, executors
or administrators or at the absolute discretion of the Trustees, the amount or
any part or parts thereof may be paid to the widow, child or children or to the
guardian or guardians or such widow or child or to any other person or persons
on their behalf without any representation to the estate of such deceased
employee or any succession certificate being obtained and in such proportion
as the Trustees may think fit and such payment shall be a good discharge to
the Trustees against all claims whatsoever in respect of the said Fund by anyone
whomsoever claiming through the deceased employee or otherwise.
34 No employee or beneficiary or any other person claiming right from such persons
shall have any legal right or claim against any Trustees personally so long as
the Trustees shall administerthe Fund to the best of their judgment in accordance
with provisions of these Regulations.

Transfer of Interest in the Fund prohibited

35. Save as herein provided with regard to the nomination, no employee shall be
entitled in any way to assign or charge or in any way deal with his beneficial
interest in the Fund or any part thereof and any such transaction or transfer
shall, in no way be recognised by the Trustees and any such transaction or
transfer shall be invalid and the Trustees shall not be bound by any notice to
them of any such transaction or transfer nor shall such interest in the Fund of
any employee be liable to attachment by any Court of Law in execution of any
decree or otherwise against the employee or any person whether before or
after any amount has become payable under these Regulations.
Unclaimed amounts
36. Any amounts payable to an employee under these Regulations and remaining
unclaimed for a period of three years from the date when such amounts have
489
 become payable shall lapse to the Fund; the Trustees may, however, at their
absolute discretion, reconsider such cases and order payment of such lapsed
amounts at any time thereafter.

Responsibilities of Trustees with regard to moneys, securities etc.

37. A Trustee or Trustees, for the time being, shall not at any time be made liable
for any more money than shall actually have come into his or their own proper
hands or for the loss or variation in price of securities or for the failure of any
bank or company or dishonesty of any employee or other person with whom
any part of the Trust property may be deposited or be placed in charge or be
liable for any other than his own immediate and respective willful acts, deeds
or defaults and every such Trustee shall be at liberty from and out, all or any
part of the trust moneys, in the first place, to re-imburse himself all sums of
moneys, costs, charges, damages, expenses and demands whatsoever which
he can, shall or may, reasonably bear, sustain or put into in any manner
howsoever by reason of or on account of his acceptance or execution of the
Trust anything herein before contained to the contrary thereof in any wise
notwithstanding.

38. The Bank shall, from time to time, on every appointment of any new Trustee or
Trustees, cause the Fund to be vested in his or their name or names under his
or their legal control jointly with any continuing or other Trustee or Trustees or
solely as the case may be, to be so invested.

Powers to alter Regulations, etc.

39. With the prior approval of the Commissioner of Income-tax, the Bank may, at
any time, give notice in writing to the Trustees and to all employees of the Bank
of their intention to amend or alter the Rules and Regulations of the Fund and
such amendment or alteration in rules and regulations shall not affect the benefits
already created for the employees under these Regulations.

40. Notice of amendment, modification or termination shall always affect from the
date of notice when such notice has been served on the Trustees. The notice
to employees shall be in such form and manner that may be deemed sufficient.
The Trustees shall comply with and carry out all directions as given by the
Board of Directors of the Bank from time to time in relation to any matter provided
herein and contained in these Regulations, or under the Regulations and the
certificate of the Bank as to the admission of an employee or as to the death of
any employee or his retirement or dismissal from service of the Bank shall

490
 constitute an act and sufficient authority and shall be conclusive of all the facts
set out therein. Every such certificate or direction shall be notified in writing
signed by any Director or other persons authorised on this behalf by the bank
and any such notification purporting to contain any such direction or certification
shall be complete protection to the Trustees in respect of any matter therein
referred notwithstanding any error in such notification.

Winding up

41 Where the Bank’s business or undertaking is to be wound up or discontinued,

the Trustees shall, with the prior approval of, and subject to such conditions as
may be imposed by the Commissioner of Income-tax, make satisfactory
arrangements for the payment of gratuity to the existing beneficiaries.

42 Any arrangements for the winding up of the Fund, or for its amalgamation with
another Fund, shall be subject to the prior approval of and to such conditions
as may be imposed by the Commissioner of Income-tax.

Effect of repugnance

43. Where there is repugnance between any of these Regulations and any
provisions of the Indian Income-tax Act, or of the Rules made thereunder,
Regulations shall to the extent of the repugnance be of no effect.

491
 CORPORATION BANK STAFF PROVIDENT FUND REGULATIONS

1. By virtue of the powers vested in the Board of Trustees of Corporation Bank

Staff Provident Fund, and approval of the Commissioner of Income-tax, Chennai
having been obtained, the following regulations are framed which shall come
into force from 1st January 1955 and shall be deemed to be the regulations of
the Fund in supersession of all regulations previously in force.

Short Title and definitions

2. THE FUND shall be called CORPORATION BANKSTAFF PROVIDENT FUND.

3. In these regulations unless there is anything repugnant to the subject or context,

THE BANK’ means ‘CORPORATION BANK’.
THE FUND’ means ‘CORPORATION BANK STAFF PROVIDENT FUND’.
THE BOARD’ means ‘THE BOARD OF DIRECTORS OF THE BANK’.
THE TRUSTEE’ means and includes the present Trustees or survivors or
survivor among them or other Trustees or Trustee for the time being of the
Fund.
‘SALARY’ means basic pay, special allowances and officiating allowance, if
any, anddoes not include any other remuneration, allowance, bonus,
commission or any profit whatsoever and in the case of employees on leave,
the actual salary received by them or their fixed salary whichever is less.
‘EMPLOYEES’ means and include -
“MEMBER” means any employee of the Bank who is also a subscriber to the
Fund. There shall be two categories of members. a) Contributory member b)
Non-Contributory member
“CONTRIBUTORY MEMBER” means an employee who is in the services of
the Bank as on 29-9-1995 and who has not opted for becoming a member of
the Corporation Bank(Employees’) Pension Fund and continues to be entitled
to Bank’s contributions at the rate prescribed under Regulation No.13 and also
includes an employee who joins the services of the Bank on or after 29-9-1995
at the age of 35 years or more and opts for Provident Fund within a period of 90
days from the date of the appointment.
“NON CONTRIBUTORY MEMBER” means an employee who is in the service
of the Bank as on 29.9.1995 and who has opted for becoming a member of
Corporation Bank (Employees’) Pension Fund in lieu of Bank’s contribution to
Provident Fund and includes all employees who join the service of the Bank on

492
 or after 29.9.1995, except those who have and exercise the option for Provident
Fund and thereby forego the right for pension.
Constitution of Fund
4. The Fund shall consist of the several contributions by the contributory and the
non contributory Members of the Fund as well as the contributions by the Bank
in respect of the contributory members and of interest credited in respect of
such contributions and accumulations, and of securities purchased therewith
and of any capital gains arising from the transfer of capital assets of the Fund.
Provided further that the Fund may also consist of :
a) the accumulated balances payable to members, which are retained in the
Fund as per Rule 20 hereof and interest thereon.
b) any amounts transferred from the individual Accounts of Members in any
recognised Provident Funds maintained by their former employers and
interest in respect thereof.
c) any amount transferred from the individual Accounts of employees on
probation, apprenticeship or part-ime basis, in any recognised Provident
Funds maintained by their former employers and interest in respect thereof,
though such employees have not yet attained eligibility to become members
and to subscribe to the Fund in accordance with these regulations. This
sub-clause is to be effective from 1st January, 1986.
Constitution of Board of Trustees and rules for filling up vacancies
5. (a) The Fund shall be vested in a Board of Trustees consisting of five Trustees
of whom two Trustees shall be Directors of the Bank to be appointed by the
Board, one trustee shall be an Executive of the Bank at HO to be appointed
by board, one trustee shall be an officer of the Bank at the Head Office to be
appointed by the Board and the remaining one Trustee shall be nominated
by the recognised Union of the workmen members from among the workmen
members of the Fund employed at the place where the accounts of the
Fund are maintained.
(b) The Trustees from time to time appointed by the Board from and out of their
number are hereinafter called ‘Director Trustees’. The Trustee appointed
by the Board from among the Executives at Head Office is hereinafter called
‘Ex Officio Trustee’, and the Trustee to be appointed rom among the officer
member and the Trustee to be nominated by the recognised union of the
workmen members are hereinafter called’‘Member Trustees’.
(c) During the absence of the Director Trustee or either of them, the Board
493
 shall have the authority to appoint any other Director or Directors to act in
the place of the absent Director Trustee orTrustees. During the absence of
the Ex Officio Trustee, the Board shall have power to appoint any other
officer member to act in his place during his absence.
(d) (i) If the member Trust appointed from among the Officer members is
transferred to a place other than the place where the accounts of the
Fund are maintained, the said Member shall cease to be the ‘Member
Trustee’ and new’‘Member Trustee’ shall be appointed by the Board.
Provided the Member Trustee appointed from among the Officer
Members shall cease to be the Member Trustee after expiry of a period
of 3 Years from the date of his appointment unless he is reappointed by
the Board.
(ii) When the person nominated by the recognised Union of Award Staff
and appointed as the Member Trustee, is either transferred to a place
outside the one where the accounts of the fund are maintained or where
he is promoted to the cadre of an officer, the said Member Trustee shall
cease to be a trustee and new member trustee shall be nominated by
the recognised Union of the Award Staff for appointment.
Appointment of a Secretary and his duties
6. The Trustees shall appoint from time to time one of the Bank employees who is a
member to be the Secretary of the Fund. The Secretary shall maintain all the accounts
of the Fund and perform the duties and functions as may be required of him.
Meeting of Board of Trustees-quorum-delegation of powers
7. At every meeting of the Trustees one of their members shall be elected
Chairman. Three Trustees shall form a quorum provided one of them is a Director
Trustee or Ex-officio Trustee. Questions arising at a meeting shall be decided
by a majority of votes and in case of a tie the Chairman shall have a casting
vote. The trustees may delegate the carrying on of the day-to-day administration
including transfer and credit of Bank’s contributions along with entire interest
accused thereon in respect of non contributory members, to one or more among
them or to the Secretary of the Fund. The Trustees may from time to time by
resolution or resolutions under their signature authorise any one or more of
them to sign and endorse for transfer or for conversion or for payment of
G.P.Notes, Securities issued by the Government of India, State Governments
and all other securities held by the Trustees or to sign or endorse cheques,
drafts, interest warrants or receipts for interest.

Accounts
494
8. The Accounts of the Fund shall be made up yearly as at 31st March, and an
audited statement of affairs as on that date shall be submitted to a meeting of
the Trustees to be held not later than 30th September, every year and a copy
of such statement shall be forwarded annually to each member. The accounts
shall be maintained for each subscriber to the Fund and it shall include particulars
shown in the form prescribed under Rule No.6 of the Indian Income- tax
(Provident Fund Relief) Central Board of Revenue Rules.

Employees eligible to become members-agreement to be signed-quantum of

contributions (compulsory and optional) - Rate of Interest, etc.

9. Every employee becoming a member shall be subject to these regulations and

shall sign an agreement in the following form:

I hereby declare that I have read the regulations of Corporation Bank Staff
Provident Fund, and that I hereby subscribe and agree to be bound by the said
regulations.

Dated at .......... on .......... day .............. 20....

Name in full :
Date of birth :
Nature of appointment :
Date of joining the Fund :
Salary per month :

Signature

Witnesses 1) 2)

10. (a) Employees of the Bank as defined in Regulation 3 shall be eligible for
membership of the fund and they shall subscribe monthly to the fund at
such rate as the Trustees may determine from time to time but at present
such rate shall not exceed 10% of the salary payable to him for the month,
i.e. 1/10 of the salary.

(b) Any member of the fund, may at his/her option, subscribe towards the
Fund, in addition to the terms of Sub-Rule (a) of Regulation No. 10, such
amount as the member so subscribing may think fit at a rate in multiples
of one per cent of salary, however, that the sum so subscribed by him in
terms of sub-rule (a) and (b) hence shall not exceed 1,00,000/- per

495
 financial year. The Bank shall not pay any contribution equivalent to or in
respect of such additional contribution.

(c) The option of making additional contributions shall be exercisable by a

member subject to prior intimation being given to the Secretary of his
intention to do so and once such option is taken by a member he shall
continue to contribute at the higher rate for at least a period of twelve
successive calendar months before he can, with previous intimation to
the Secretary, reduce the rate of contribution to the minimum prescribed
or till he ceases to be an employee of the Bank whichever is earlier.

(d) A member on leave may choose not to subscribe to the Fund on his/ her
salary for the period of his/her leave and in such a case the Bank also
shall not subscribe its contribution on account of such leave salary.

11 The employees’ subscriptions towards the Fund shall be credited to each

employee’s individual account and earn compound interest at such rate as the
Board of Trustees may fix from time to time, having regard to the interest earned
on investments from the Fund and the market value of investments from the
Fund and on moneys deposited with bank. For purpose of adding interest to
individual accounts of each employee, the balance at credit shall be reduced
by the balance, if any, due on account of any non-repayable withdrawal
outstanding against him.

12 The subscriptions by the employees shall be levied monthly and by compulsory

deduction from their salaries and the total amounts so deducted by the Bank
shall be credited to the Trustees’ Account mentioned in Regulation 17.

13 The Bank shall contribute monthly to the Fund a sum equal to the contributions
of the contributory members only at the rate prescribed in Regulation 10(a)
irrespective of any optional contributions he may make under Regulation 10(b)
and such sum shall be credited to the account of each contributory member
and shall earn compound interest at the same rate as on contributions by the
members.

14 Interest shall be added to the member’s and Bank’s contributions in case of

contributory memberto the Fund at the end of each half year viz. 30th September
and 31st March every year. The amount of contributions and accumulations
thereof shall cease to earn any interest after three months from the date on
which the amount becomes payable.
15 The sums subscribed from time to time by each member (hereinafter referred

496
 to as “MEMBER’S CONTRIBUTION” which expression shall include all interest
accrued on the same) as well as sums contributed by the Bank for each member
(hereinafter referred to as “THE BANK’S CONTRIBUTION” which expression
shall include all interest accrued on the same) shall be credited in a special
ledger kept by the Trustees at such Office of the Bank as the Trustees may
decide from time to time.
All calculations forthe purpose of arriving atthe Members’ and Bank’s
contributions to the Fund shall be made to the nearest paisa, fraction of a paisa
being neglected.
As soon as possible after the 31st March of each year, the Secretary shall
send to each member, a statement of his account in the Fund, showing the
opening balance as on 1 st April of the year, the total amount credited or debited
during the year, the total amount of interest credited during the year and the
closing balance on that date.
Provided, however that the statement of accounts as on 31.3.1989 shall cover
period of 15 months commencing from 1.1.1988 to 31.3.1989. The members
should satisfy themselves as to the correctness of the annual statements and
errors, if any, should be brought to the notice of the Secretary within one month
from the date of receipt of the statement.

Funds-investment of - delegation of power to Secretary to operate on Bank

Account

16. All the monies contributed to the Fund (whether by the Bank or by the employees)
or received or accruing by way of interest or otherwise to the Fund shall, within
fifteen days from the date of contribution, receipt or accrual, as the case may
be either
a) be deposited -
i) in a Post Office Savings Bank Account; or
ii) in special accounts to be opened for the purpose in the State Bank of
India or in a Scheduled Bank; or
b) be invested in the securities mentioned or referred to in clauses (a) to (e) of
Section 20 of the Indian Trusts Act, 1882.
Every member of the Fund shall be entitled, on request made in this behalf to
the Trustees, to see the Bank receipts or pass-books for any money deposited
and to see the securities such as are referred to above.
17. In pursuance of Regulation No.16, all or any moneys of the Fund in the hands
497
 of the trustees from time to time, may be deposited with Corporation Bank,
being a Scheduled Bank, in an account or accounts in the names of the Trustees
of the Fund, and the Trustees may authorise one amongst them and/or the
Secretary of the Fund to operate upon such account or accounts.
Repayment of contributions on retirement, etc
18. A member shall not be entitled to payment of the full amount standing to the
credit of his account in the Fund except on retirement from the service of the
Bank and in accordance with these regulations.
(a) A member who is a whole time Director
(b) A contributory member who retires from the services of the Bank on attaining
the age of superannuation shall be entitled to receive his own contributions,
together with the Bank’s full contributions, irrespective of the period of his
service in the Bank.
(c) A non contributory member who retires from the service of the Bank on
attaining the age of superannuation shall be entitled to receive his own
contribution in full irrespective of the period of his service in the Bank.
(d) A member who has ceased to be entitled to Bank’s contributions consequent
to his exercising the option given to him, to opt for pension, in terms of Corporation
Bank (Employees) Pension Regulations, 1995 shall irrevocably authorise the
Trustees to transfer the entire Banks contribution made at the prescribed rates
together with the interest accrued thereon, to the Trustees of the Fund shall
there after transfer the same to the Trustees of the Pension Fund.
19. (a) Any contributory member who is dismissed for misconduct or voluntarily
leaves his employment otherwise than on account of ill-health or other
unavoidable cause before the expiration of 10 years, shall be entitled to
repayment of the amount of his own contributions with interest accrued thereon
and the Bank’s contributions as per Regulation 21 (b).
(b) Any member who is dismissed for misconduct or voluntarily leaves his/her
employment otherwise than on account of ill-health or other unavoidable cause
before the expiration of 10 years, shall be entitled to repayment of the amount
of his/her own contributions with interest accrued thereon irrespective of the
period of his/her service in the Bank.
20. (a) Subject to the above regulations when a contributory member retires from
the service of the Bank on attaining the age of superannuation or when his
services are dispensed with by reason of proved physical incapacity certified

498
 as such by a medical authority recognised by the Trustees or if his services
shall have been dispensed with in consequence of reduction or reorganisation
of the establishment or some other cause than his own misconduct, the
contribution paid by the Bank shall be paid in full to him and in case of death
of contributory member the contribution paid in full to his nominee or heirs.
(b) The accumulated balance due to a member shall become payable on the
day he ceases to be an employee of the Bank, unless at the request of
the member made in writing the Trustees consent to retain the whole or
any part of the accumulated balance due to him and payable to him at
any of time on demand.
21. (a) A member who ceases to be an employee of the Bank, at any time shall
be entitled to receive the amount of his own contributions with interest
credited thereon.
(b) In case of a contributory member after putting in five years’ service but before
completion of 10 years’ service in the Bank, voluntarily leaves his employment
for reasons other than ill health or other unavoidable causes he shall be
entitled to receive the amount of his own contributions with interest credited
thereon and Bank’s contributions at the rate of 10% of such contributions
with interest for each completed year of service. A contributory member
who has served the Bank for less than five complete years shall not entitled
to any portion of the Bank’s contributions or interest thereon.
NOTE: For purpose of these Rules, the date of commencement of service in
the Bank shall be the date of joining the Fund.
General Fund
22. The Bank’s contributions as shall remain unpaid shall lapse to the Fund and
any sums which may lapse to the Fund under these regulations shall be credited
to a separate account called “General Fund” and may be disposed of for the
benefit of the Fund and the members participating therein in such manner as
the Trustees may decide in their absolute discretion.
Forfeiture of contributions
23. There shall be no forfeiture of any amount due to a non contributory member
under these regulations under any circumstances. In the case of a contributory
member when he is dismissed for misconduct causing financial loss to the
Bank and in such a case the forfeiture shall be limited to the extent of such
financial loss or the Bank’s contributions to the member’s account and interest
thereon, whichever is less.
499
Appointment of nominees and powers of the Trustees to deal with amounts of
deceased members

24. (1) Each member shall be at liberty to nominate in writing any person or any
number of persons in the prescribed form annexed to these regulations,
to whom the amount standing at the credit of such member shall be paid
in the event of his death while in the service of the Bank or before his
claim on the Fund shall have been discharged and may from time to time
change such nomination in writing.
(2) Where a member has a family at the time of making a nomination, the
nomination shall be in favour of one or more persons belonging to his
family. Any nomination made by a member in favour of a person not
belonging to his family shall be invalid.
(3) If at the time of making a nomination, the member has no family, the
nomination may be in favour of any person or persons, but if the member
subsequently acquires a family, such a nomination shall forthwith be
deemed to be invalid and the member may be allowed to make a fresh
nomination in favour of one or more persons belonging to his family.
(4) In the event of the death of the nominee prior to the death of the member
and no other person having in the interval been nominated by the member,
the amount standing at credit of the member shall be dealt with in
accordance with Regulation 27.

Explanation: For the purpose of this rule, “family” means, the member’s spouse,
legitimate children, step-children, dependent parents, sisters and minor brothers.

25. On the death of a member who shall have made a nomination in accordance
with Regulation 24 the full amount payable to him according to these regulations
shall be paid to the nominee irrespective of the period for which the member
may have served and such payment shall be a good discharge to the Trustees
against all claims whatsoever in respect of the said Fund by any one
whomsoever claiming through the said member or otherwise.

26. If the nominee is a minor, the member shall at the time of nomination state the
age of the nominee and shall also appoint in writing a person of full age to
whom the amount standing at the member’s credit is to be paid on behalf of the
minor nominee in the event of the member dying before the minor nominee
attains the age of majority. If any person so appointed predeceases the member
before the minor nominee attains his majority, the member shall forthwith

500
 similarly appoint another person of full age to receive the amount on behalf of
the minor nominee and from time to time forthwith make a fresh appointment
when this is necessitated by the death of the person appointed to receive
payment on behalf of the nominee.
The nomination made as aforesaid remains in full force and effect until the
nominee’s death or until his nomination or appointment has been revoked.

27. On the death of a member not survived by a nominee the full amount due to
the member according to these regulations shall be paid to his executors or
administrators or at the absolute discretion of the Trustees, the amount or any
part or parts thereof may be paid to the widow, child or children or his, her or
their guardian or custodian or other near relative or relatives of the deceased
member or any other person or persons appearing to them to be the proper
parties to receive the amount without any representation to the estate of such
deceased member or any succession certificate being obtained and in such
proportion as the Trustees may think fit irrespective of the period for which the
member may have served and such payment shall be a good discharge to the
Trustees against all claims whatsoever in respect of the said Fund by any one
whomsoever claiming through the deceased member or otherwise.

Transfer of interest in the Fund prohibited

28. Save as herein provided with regard to nomination, no member shall be entitled
in any way to deal with or transfer by way of security or otherwise his interest or
any part thereof in the Fund and any such transaction or transfer shall in no
way be recognised by the Trustees and any such transaction or transfer shall
be invalid and the Trustees shall not be bound by any notice to them of any
such transaction or transfer and all moneys standing in the books of the Fund
to the credit of the member so purporting to deal with or transfer his interest
therein as aforesaid shall forthwith be transferred to the General Fund and be
dealt with accordingly.

Attachment, Prohibitory order etc., of a Civil Court-Insolvency of member

29. If any, prohibitory order or attachment or process of a Civil Court be served

upon the Trustees by which any moneys standing to the credit of the member
shall be attached or ordered to be paid into a Civil Court; or ordered to be
withheld from such member and such attachment or order is not raised or
rescinded by the Court within such time as the Trustees deem reasonable or
should such member be adjudged an insolvent or file his insolvency petition or
make any composition or arrangement with his creditors, such moneys shall
501
 forthwith be transferred to the General Fund and be dealt with accordingly,
provided always that the Trustees (without being under any legal obligation to
do so) may in their absolute discretion if they think fit at any time or times
thereafter, give or apply such moneys, or any part thereof, to or for the benefit
of such member or his wife, children or relatives.

Temporary and Non-Repayable withdrawals-Rules for sanction and repayment-

Rate of Interest on temporary withdrawals

30. (1) Withdrawals by members shall not be allowed by the Trustees except on special
grounds in the following circumstances or circumstances of a similar nature:
a) To pay expenses in connection with the illness of a subscriber or a member
of his family;
b) To pay for the cost of passage of a subscriber or a member of his family to
a place out of India;
c) To pay expenses in connection with the marriages, funerals or ceremonies,
which by the religion of the subscriber it is incumbent upon him to perform
and in connection with which it is obligatory that expenditure should be incurred;
d) To meet the expenses of education of the dependent children of the
member.
e) To meet the expenditure on building the residential house or purchasing a
site or a site with a house provided that the site with or without house is
assigned to the Trustees of the Fund and covenants with the Trustees of
the Fund that he/she will not in any way encumber or alienate the site with
or without the house other than by way of mortgage favouring the Bank for
securing the repayment of housing loan availed/to be availed under Bank’s
Housing Loan Scheme. However, where the member has already availed
Housing Loan from the Bank by creating mortgage of site, with or without
building thereon, it shall be assigned to the Trustees of the Fund subject
to rights of the Bank;
f) To Pay premia on policies of insurance on the life of the subscriber or of
his wife provided that the policy is assigned to the Trustees of the Fund
and that the receipts granted by the Insurance Company for the premia
are from time to time handed over to the Trustees for inspection by the
Income-tax Authority.
g) To meet expenditure of marriage of daughter/sister/son.

502
NOTE: Withdrawals under clauses (a), (b), (c) and (d) above are called “Temporary
Withdrawals” and withdrawals under clauses (e), (f) and (g) above and also
withdrawals under sub-rule (9) are called “Nonrepayable Withdrawals”.
2) For the purpose of sub-rule (1), “Family”, means any of the following persons
who are wholly dependent on the employee, namely: the employee’s wife,
legitimate children, step-children, parents, sisters and minor brothers.

3) a) A withdrawal under clauses (a) and (b) of sub-rule (1) shall not exceed the
salary of the member for three months at the time when the withdrawal is
made and a withdrawal in connection with expenses on marriages as
specified in clause (c) and (d) of sub-rule (1) shall not exceed the salary of
the member for six months at the time when the withdrawal is made. In no
case, the amount withdrawn shall exceed the total of the accumulation of
exempted contributions and exempted interest contained in the balance to
the credit of the member.

b) A withdrawal for the purpose specified in clause (e) of sub-rule (1) shall be
subject to the following conditions:

i) In the case of any member, the amount of withdrawal shall not exceed
the amount of his own contribution outstanding to his credit or the actual
cost of the house and/or of the site whichever is less.
ii) The employee shall have completed ten years of service or is due to
retire within the next ten years;
iii) The construction of the house should be commenced within six months
of the withdrawal and should be completed within one year from the
date of commencement of the construction;
iv) If the withdrawal is made for the purchase of a house and/or a site for a
house, the purchase should be made within six months of the withdrawal;
v) If the withdrawal is made for the repayment of loan previously raised
for the purpose of construction or purchase of a house, the repayment
of the loan should be made within three months of the withdrawal;
vi) (1) Where the withdrawal is for the construction of a house, it shall be
permitted in two or more instalments (not exceeding four) a later
instalment being permitted only after verification by the Trustees
about the actual utilisation of the earlier withdrawal;

503
 (2) However, the Trustees of the fund may, on merit, allow such withdrawal
for the construction of a house in five instalments subject to the
member foregoing one chance to avail the Non-repayable withdrawal
for meeting the expenses of marriage of daughter/sister/ son.

vii) The withdrawal shall be permitted only if the house and/or site is free
from encumbrances and no withdrawal shall be permitted for purchasing
a share in a joint property or building or house or land whose ownership
is divided except where such property is owned jointly with the spouse.
However, such withdrawal may also be permitted in cases where the
property is owned solely by the member’s spouse provided both of
them are members of the Fund.

Further, such withdrawal may also be permitted in cases where the

property is owned solely by the member’s spouse, provided housing
loan is sanctioned to the member by the Bank. The member’s spouse
shall assign the house and/or site in the same manner as assigned by
a member under Sub-Regulation (1) (e) of Regulation 30.

viii) If the amount withdrawn exceeds the actual cost of the purchase or
construction of the house and/or site, or if the amount is not utilised for
the purpose for which it is withdrawn, the excess or the whole amount,
as the case may be, shall be refunded to the Fund forthwith in one
lump sum together with interest from the month of such withdrawal at
the rate prescribed in sub-rule (6).

(b) A withdrawal for the purpose specified in Clause (g) of Sub-regulation (1)
shall be subject to the following conditions:

i) The member shall have completed 10 years of service or is due to

retire within the next 10 years.
ii) the amount of withdrawal shall not exceed the amount standing to the
credit of the member in PF account (own contribution) or the marriage
expenses, whichever is lower; the total withdrawals including temporary
withdrawal availed and outstanding shall not exceed member’s own
contribution.
iii) Subject to Regulation No. 3 (b) (vi) (2), withdrawal shall be permitted
only twice during the entire service.
iv) Proof of marriage should accompany the application.

504
 v) Reimbursement shall not be permitted.
vi) Misutilisation of the withdrawal shall make the member liable to refund
the withdrawal in one lumpsum alongwith interest as applicable to
temporary withdrawal besides entailing disciplinary action by the Bank.
vii) The member shall have the option to repay the withdrawal subject to
refunding the same in one lumpsum.
viii) A member who has availed non-repayable withdrawal for the purpose
of meeting expenses of marriage of daughter/sister/son, is required to
reimburse to the fund, the unutilised portion of the withdrawal within
three months from the date of the marriage.

c) A withdrawal for any other purpose referred to in sub-rule (1) shall not
exceed three months’ salary of the member or the total of the accumulation
of exempted contributions and exempted interest lying to the credit of the
employee, whichever is less.

4) a) Subject to the provisions of clause (viii) of sub-rule (3) (b), where a

withdrawal is allowed for a purpose specified in clause (e) or clause (f) or
clause (g) of sub-rule (1), the amount withdrawn need not be repaid. The
member, however, shall have the option to repay the amount of such
withdrawal in one lumpsum payment for credit of his account in the Fund.

b) Where a withdrawal is allowed in connection with marriages as specified in

clause (c) of sub-rule (1), the amount withdrawn shall be repaid in not
more than forty eight equal monthly instalments. The member if he so
desires, may be permitted to make payment of more than one instalment
at a time but interest shall be payable in terms of the total number of such
instalments in the manner laid down in sub-rule (6).

c) Where a withdrawal is allowed for any other purpose, the amount withdrawn
shall be repaid in not more than 24 equal monthly instalments. The member,
if he so desires, may be permitted to make payment of more than one
instalment at a time but interest shall be payable in terms of the total number
of such instalments in the manner laid down in sub-rule (6).

NOTE: i) All withdrawals under clauses (a) to (d) of sub-rule (1) and repayments,
if any, shall be multiples of a rupee;

ii) Number and amount of each instalment in repayment of a temporary

withdrawal under these rules shall be fixed by the member at the time of

505
 making the application for such withdrawal in the prescribed form. The
amount of temporary withdrawal shall be divisible with the amount of
each instalment to be fixed for repayment thereof.
5) A second temporary withdrawal shall not be permitted until the sum first
withdrawn has been fully repaid both in respect of principal and interest thereon.

6) In respect of all temporary withdrawals and of the amount referred to in clause

(viii) of sub-rule 3(b), interest shall be paid by the members in accordance with
the following table:

1 2

Where the amount is rapid in not more One additional instalment of 4% on the
than 12 monthly instalments. amount withdrawn
Where the amount is repaid in more Two additional instalments of 4% on
than 12 but not more than 24 monthly the amount withdrawn
instalments
Where the amount is repaid in more Three additional instalments of 4% on
than 24 monthly instalments but not the amount withdrawn
more than 35 monthly instalments.
Where the amount is repaid in more Four additional instalments of 4% on
36 monthly instalments but not more the amount withdrawn
than 48 monthly instalments
Where the amount is refunded under 4% of the amount which is refundable
the clause (viii) of sub-rule (3) (b).

Provided that at the discretion of the Trustees, interest may be recovered on

the amount aforesaid or the balance thereof outstanding from time to time at
one percent above the rate which is payable for the time being on the balance
in the Fund at the credit of the employee.
7) The Bank shall deduct the instalments aforesaid from the employee’s salary
and pay them to the Trustees. These deductions shall commence shall
commence from the second monthly payment of salary made after the
withdrawal or in the case of an employee on leave without salary, from the
second monthly payment of salary made after his return to duty.
8) In case of default of repayment of instalments due under these rules, or where
the amount withdrawn is not utilised for the purpose for which it is withdrawn,

506
 the Commissioner of Income-Tax may at his discretion order that the amount
of the withdrawal or the amount outstanding shall be added to the total income
of the employee for the year in which the default occurs or the withdrawn amount
is finally held not to have been utilised for the purpose for which it is withdrawn,
and the Income-tax Officer shall assess the employee accordingly.

9) Notwithstanding anything contained in sub-rule (1) or (8), it shall be open to the

Trustees to permit the withdrawal of 90% of the amount standing at the credit
of an employee if the employee takes leave preparatory to retirement, provided
that if he rejoins duty before expiry of such leave, he shall refund the amount
drawn together with interest at the rate allowed by the Fund.

Responsibility of Trustees with regard to moneys, securities etc.

31 A Trustee or Trustees for the time being shall not at any time be made liable for
any more money than shall actually have come into his or their own proper hands
or for the loss or variation in price of securities or for the failure of any bank or
company or the dishonesty of any employee or other person with whom any part
of the trust property may be deposited or be placed in charge or be liable for any
other than his own immediate and respective willful acts, deeds and defaults and
every such Trustee shall be at liberty from and out, all or any part of the Trust
moneys, in the first place to reimburse himself all sums of moneys, costs, charges,
damages, expenses and demands whatsoever which he can, shall or may
reasonably bear, sustain or put into in any manner howsoever by reason of or on
account of his acceptance or execution of the Trust anything herein before
contained to the contrary thereof in any wise notwithstanding.

32 The Board of Directors shall from time to time on every appointment of any
new Trustee or Trustee cause such fund to be vested in his or their name or
names under his or their legal control jointly with any continuing or other Trustees
or solely as the case may be, to be so invested.

Unclaimed contributions-losses suffered on sale or conversion of investment-

procedure of adjustment

33. The Bank’s contributions together with the interest accrued thereon which
underthe provisions of these regulations shall not be payable to the member
on his retirement, discharge ordismissal as provided in the regulations and all
balances which may remain under these regulations unclaimed for a period of
three years and all amounts which shall lapse to the Fund, and all profits from

507
 investment of the funds shall be transferred to the General Fund Account. The
moneys in the said account shall be utilised to meet any loss from investment
of moneys and/or to provide for the difference between the running interest
yield of investments in the Fund and the redemption interest yield of such
investments and interest credited to the individual accounts of the members.
All losses suffered during any half year on sale or conversion of investments of
the Fund during such half year shall so far as such losses are not met from the
General Fund be debited at the end of such half year to the accounts of the
members ratably in proportion to the respective amounts standing to their credit
at the end of such half year.

If during any half year there is such a fall in the market value of the investments
of the Fund as in the absolute discretion of the Trustees requires an adjustment
of the accounts of the members after utilising the General Fund, the Trustees
shall be entitled to debit to the accounts of the individual members ratably in
proportion to the respective amounts standing to their credit such total amount
in respect of the depreciation in the investments as the Trustees may fix.

Power to alter regulations

34. The regulations of the Fund or any of them, may in the absolute discretion of
the Trustees and with the previous approval of the Commissioner of Income-
tax, Bangalore, be from time to time added to, altered or repealed provided
always that no such addition or repeal shall be held to be retrospective or shall
affect the right of any member to be credited with the amount to which he is
entitled to be credited up to the date of such addition, alteration or repeal or
shall be infringement or violation of the Indian Income-tax Act, 1922 or any
statutory modification thereof or any rules made by the Government of India or
any local Government in that behalf and for the time being in force or shall
affect the irrevocability of the Trust. A copy of all such additions, alterations or
repeals shall immediately after the adoption thereof be sent to every member.

35. The Fund shall be vested in the Trustees under a Trust which shall not be
revocable save with the consent of all the members.

The Board shall have power to close the Fund at any time if they consider that
course advisable or necessary and any appreciation or depreciation in any
investments of the Fund shall be for the benefit of and at the risk of the members,
and at the closing of the Fund the cash in hand and the realisation from the

508
 investments including the General Fund shall be divided ratably among the
members in proportion to the respective amounts standing to their credit.

Retirement of Trustees
36. Every Trustee shall be at liberty to retire by notice in that behalf addressed to
the Board of Trustees. Every vacancy in the Office of the Trustee shall be filled
up in accordance with the provisions of regulation No.5.

Decision of the Trustees in all respects to be final and binding upon all
concerned

37. The decision of the Trustees shall be final and binding upon members in all
respects and upon all matters, questions and disputes relating to or connected
with these regulations or with the Fund or the administration thereof or the
rights or obligations of the members including all disputes or differences which
may arise between any member or his executors, administrators, nominee or
representative and the Trustees as to the meaning or effect of any regulation
or to any matter relating or arising out of the same. In each case of dispute the
decision of the Trustees shall be communicated to the Commissioner of Income-
tax forthwith.

Returns to the Income-tax Authority

38. An abstract for the financial year ending with the 31st March of each year of the
individual account of each employee participating in the Fund (whose income
under the head “Salaries” is 3,000/- or over per annum) shall be furnished by
the Trustees to the Income-tax Officer of the area in which the Bank conducts
business or to such other Income-tax Officer as the Commissioner of Income-
tax may direct, not later than the 15th day of September in each year. It shall be
in the form prescribed under rule No.6 of the Indian Income-tax (Provident
Fund Relief) Central Board of Revenue rules, but shall show only the total of
the various columns thereof for the financial year ending with 31st March. The
Trustees shall also given an account of any withdrawals by any member during
the year and of the repayment thereof.

Effect of repugnance

39. Where there is a repugnance between any of these regulations and any
provisions of the Indian Income-tax Act or of the Rules made thereunder, the
regulation shall to the extent of the repugnance be of no effect.
509
REVISED MODEL SCHEME FOR PAYMENT OF EX-GRATIA AMOUNT IN LIEU
OF APPOINTMENT ON COMPASSIONATE GROUNDS & APPOINTMENT OF
DEPENDENTS OF DECEASED EMPLOYEES ON COMPASSIONATE GROUNDS

A Scheme for appointment of dependents of deceased employees on

compassionate grounds to be uniformly implemRaymondented by Public Sector
Banks was advised by the Banking Division, Government of India, on 12.09.1978.
Appointments could be made against specific existing vacancies or in expectation
of vacancies. Written tests prescribed for regular recruitment to such posts were
waived in these cases. The Government has modified /relaxed the provisions
of the Scheme from time to time. In May 1982, Government permitted banks to
modify the Scheme so as to extend the benefit of compassionate appointment
even to the dependents of those who demit office on medical grounds subject
to certain provisions in this regard.

The Bank vide H.O Circular No. 82/2006 dated 03rd March 2006 communicated
the Scheme for payment of Ex-gratia lump sum amount in lieu of appointment
of dependents of deceased employees on compassionate grounds/employees
retired on medical grounds. Based on the Government directives, a revised
scheme on payment of ex-gratia and providing for compassionate appointment
in exceptional cases, has been approved by the Board of Directors, and the
same has been laid down vide HO Circular No. 900/2007.

Applications received complete in all respects, should be forwarded to the

General Manager, Personnel Administration Division, Head Office, Mangalore
through the concerned Zonal Office [in case of employee of Head Office, through
the concerned Departmental/Divisional Head] promptly. Before forwarding
the Applications, eligibility of the applicant for Ex-gratia lumpsum amount or for
appointment under the provisions of the Scheme may be verified and confirmed
by the Branch Head so as to facilitate quicker disposal of the applications.

2. Objective

To provide relief to the family of a deceased employee to tide over the sudden
crisis brought about by his / her premature death. The relief envisaged could
be of a nature, which would provide the distressed family immediate succour
and financial assistance to recover from the unexpected deprivation of the income
of the sole bread-winner of the family.

3. For the purpose of the proposed Scheme, “employee” would mean and include
only a confirmed regular employee who was serving full time or part-time on

510
 scale wages, at the time of death/premature retirement and does not include
any one engaged on contract/temporary/casual/part-time on consolidated wages
or any person who is paid on commission basis.

4. (A) The Scheme for grant of ex-gratia will be applicable in the following cases of
employees:

i) Employee dying in harness (other than due to injury sustained while

performing official duty as a result of violence, terrorism, robbery or dacoity).

ii) Employee dying due to injury sustained while performing official duty within
or outside office premises (other than due to violence, terrorism, robbery,
or dacoity and excluding travel from residence to place of work and back).

iii) Employee seeking premature retirement due to incapacitation before

reaching the age of 55 years.

(B) The Scheme of Compassionate Appointment will be applicable in the following

cases:

(a) Employee dying while performing his official duty, as a result of violence,
terrorism, robbery or dacoity;

(b) Employee dying within five years of his first appointment or before reaching
the age of 30 years, whichever is later, leaving a dependent spouse and/or
minor children.

5. Ex-gratia Payment

a. In the cases as in para 4(A), ex-gratia amount will be paid to the family of the
employee if eligible and if requested for within six months from the date of
death of the employee. The family shall be in indigent or penurious
circumstances. “Family” for this purpose would mean and include spouse,
wholly dependent children (son, including legally adopted son/unmarried
daughter including legally adopted unmarried daughter). In the case of
unmarried employee, parents who are wholly dependent on the employee
will constitute “family”.

b. Ex-gratia may be granted to the family of the employee in the manner and
subject to the ceilings specified below, if monthly income of the family from
all sources is less than 60% of the last drawn salary (net of taxes) of the
employee.

511
Calculation of monthly income
(1) Terminal Benefits
(i) Provident Fund
(ii) Gratuity
(iii) Leave Encashment
(iv) Any other amount paid under Bank’s Scheme(s)
———————
Sub-total (A)
———————
(2) Liabilities :
Loans taken from Bank and/or other financial
Institutions with the prior approval of the Bank
———————
Sub-total (B)
———————
Net corpus of terminal benefits (C=A-B)
(3) Investments :
Deposits
NSCs
PPF
LIC policies
Others
———————
Sub-total (D)
———————
(4) Details of movable property, if any, held
and monthly income derived there from.

(5) Details of immovable property, if any,

held and monthly income there from .

(6) Monthly income of the family from all sources -

(i) Monthly interest at the Bank’s maximum term deposit rate on the net
corpus of terminal benefits (C) ———————
(ii) Monthly income from investments ———————
(iii) Monthly income from movable and immovable property ———————
(iv) Monthly income of dependent family members ———————
(v) Any other monthly income ———————
Total monthly income of the family
———————————
512
c. If the total monthly income of the family arrived at as above is less than
60% of the last drawn gross salary (net of taxes) of the employee, ex-
gratia amount as under will be payable.

(i) The cadre-wise ceiling on ex-gratia amount payable will be as follows:

Category Maximum Amount

Officers 8 lakhs

Clerical staff 7 lakhs

Subordinate staff 6 lakhs

(ii) In case the monthly income of the family as calculated above is less
than 60 % of the last drawn gross salary (net of taxes) of the
employee, an ex-gratia amount calculated @ 60 % of the last drawn
gross salary (net of taxes) for each month of remaining service of the
employee (i.e., up to the age of superannuation in terms of extant service
rules/conditions) at the time of his death/incapacitation subject to the
cadre-wise ceiling of “Maximum amount” mentioned under ( i ) above,
will be payable.

d. In case of an employee seeking premature retirement due to total

incapacitation for work, the ex-gratia is payable only if all the extant
provisions for such retirement are fully satisfied and the retirement has
been approved by the competent authority specified therefor.

e. While dealing with proposals for grant of ex-gratia as above, in cases where
disciplinary action had been taken / was pending against the employee
dying in harness or the deceased employee was involved in financial
irregularities, embezzlement of funds, committing frauds etc., the Banks
will continue to abide by the guidelines issued by the Government of India
requiring consideration and decision in each case by the Board of the Bank.

f. The ex-gratia amount in eligible cases will be paid within 3 months of receipt
of application, complete in all respects.

g. The ex-gratia relief under the above Scheme is not an entitlement but may
be granted at the sole discretion of the Bank looking into the financial
conditions of the family and in deserving and eligible cases only.

513
6. Appointment on Compassionate grounds

(a) In cases covered by Para 4(B), appointment on compassionate grounds

may be offered to one among the next of kin of the deceased employees.

(b) The appointment shall be made only in the clerical and sub-staff cadre.

(c) Application for employment under the Scheme from eligible next of kin
should be received by the bank, at the earliest, in any case not later than
12 months from the date of death of the employee.

(d) Appointment under the Scheme is not an entitlement but may be granted
at the sole discretion of the bank looking into the financial conditions of
the family and in deserving and eligible cases only.

514
 ANNEXURE I

APPLICATION FOR GRANT OF EX-GRATIA AMOUNT IN LIEU OF

APPOINTMENT/ APPOINTMENT OF DEPENDENTS OF DECEASED EMPLOYEES
ON COMPASSIONATE GROUNDS:
(To be submitted by the dependent including widow/ widower of the deceased
employee)
To:
The General Manager,
CORPORATION BANK,
Personnel Administration Division,
Head Office - Mangalore -575001.
Through: Branch Head / Departmental / Divisional Head
______________________ Branch / Office
Dear Sir,
I ____________________________ regret to inform you that my husband /
_________________ (state relation), who was working at __________________
Branch / Office expired on_________________ .
1 Date of Birth of the deceased person
2 Date of first appointment in the Bank
3 Date of death
4 Age as on the date of death
5 Number of years of service put in before death
He/She was survived by the following:-
Name Relationship Age Marital Whether Monthly
(yrs) Status/in Employed income
business *

* In respect of salaried persons, copy of the latest salary slip to be produced. In

case of income from immovable properties, documentary evidence to be produced.
515
Other details:
a) Immovable Property
i) House (a) Market Value :
(b) Monthly Income, if any :
ii) Land (a) Market Value :
(b) Monthly Income, if any :
b) Movable property, if any
Sl. No. Details of the property Monthly income, if any
1
2
3
4
c) Terminal Benefits:
Sl. No. Benefit Amount in
1 Provident Fund
2 Gratuity
3 Leave Encashment
4 Death relief (Staff Welfare)
5 Term Group Insurance Scheme
6 SLIS
7 Personal Accident Insurance Scheme
8 Any other amount paid under Bank’s
Scheme/s
SUB-TOTAL (A)
d) Liabilities :
Loans taken from Bank and /or other Financial Institutions with the prior approval
of the Bank.
Sl. No. Liability (type) Amount in
1
2
3
4
5
6
SUB – TOTAL (B)
516
 e) Net amount of Terminal benefits (C=A-B): ___________________
f) Details of investments:
Amount

LIC
Fixed deposits
NSC’s
PPF
Bonds
Shares
Any other investments (specify, if any)
TOTAL
Net amount of Investment received: _____________________
g) Details of family monthly income including pension, if any: _____
I request you to consider my case for *ex-gratia amount/appointment on
compassionate grounds as provided in the Scheme [*Strike out whichever is not applicable].
I also enclose the following document/certificate in support of my application:
[1] Copy of the Death Certificate duly attested.
[2] Copies of the SSLC/Xth Standard onwards in support of educational
qualification of the applicant [only if the application is for appointment on
compassionate ground as provided in the scheme]
[3]
[4]
Yours faithfully,

(Signature of applicant)

Date:
Place:
Address for communication:

Tel. No. if any

517
 This is to certify that

[a] the information furnished in the application is verified

[b] documents enclosed to the application are verified with the originals

The copies of the following are enclosed

[a] Statement showing details of loans outstanding as on the date ofdeath of

the employee
[b] Copy of F 16 issued to the employee during the previous year
[c] Statement showing details of salary drawn till the date of death during the
current year
[d] Details of leave encashment if any

Forwarded to Zonal Office :

Date: Signature of the Branch Head/

Place: Head of office/department
Along with seal

518
 FORMAT OF APPLICATION FOR GRANT OF EX-GRATIA BY THE EMPLOYEE
WHO HAS SOUGHT PREMATURE RETIREMENT ON MEDICAL GROUNDS
DUE TO TOTAL INCAPACITATION FOR WORK
To:
The General Manager,
CORPORATION BANK,
Personnel Administration Division,
Head Office: Mangalore - 575001.
Through: Branch Head / Departmental / Divisional Head
_______________________ Branch / Office
Dear Sir,
I am suffering from _________________________ (name of the disease), which
rendered me totally incapacitated to do work in the Bank. I had, therefore, requested
the Management to permit me to retire voluntarily on medical grounds as per extant
rules. Since the Management has accepted my request for voluntary retirement on
medical grounds w.e.f. __________, I am now requesting for grant of ex-gratia amount.
I. Particulars of the Employee:
1 Name
2 E / M No.
3 Designation
4 Last Posting
5 Date of Birth
6 Date of Joining
7 Number of Dependents
8 Pension Optee Yes / No
If yes, Monthly Pension
(including defence)
9 Category GEN/SC/ST/OBC*
* Strike out whichever is not applicable
II Other details:
a) Immovable Property
i) House (a) Market Value :
(b) Monthly Income, if any :
ii) Land (a) Market Value :
(b) Monthly Income, if any :
519
 (b) Movable property, if any
Sl. No. Details of the property Monthly income, if any
1
2
3
4
(c) Terminal Benefits:
Sl. No. Benefit Amount in
1 Provident Fund
2 Gratuity
3 Leave Encashment
4 Any other amount paid under Bank’s
Scheme/s
SUB-TOTAL (A)
(d) Liabilities :
Loans taken from Bank and /or other financial Institutions with the prior approval
of the Bank.
Sl. No. Liability (type) Amount in
1
2
3
4
5
6
SUB – TOTAL (B)
(e) Net amount of Terminal benefits (C=A-B): _________________
(f) Details of investments:
Amount ( )
LIC
Fixed deposits
NSC’s
PPF
Bonds
Shares
Any other investments (specify, if any)
TOTAL
520
 (g) Monthly income of dependent family member/s: ________________
(Please attach the attested copy of salary slip)
I request you to consider my case for ex-gratia amount as provided in the Scheme.
I also enclose the following documents / certificates in support of my application.
1.
2.
3.
4.

(Signature of applicant)

Date:
Place:

Address for communication:

Tel. No. _________________ , if any

This is to certify that

[a] the information furnished in the application is verified
[b] documents enclosed to the application are verified with the originals
The copies of the following are enclosed
[a] Statement showing details of loans outstanding as on the date of retirement
of the employee
[b] Copy of F 16 issued to the employee during the previous year
[c] Statement showing details of salary drawn till the date of retirement during
the current year
[d] Details of leave encashment if any
Forwarded to Zonal Office:

Date: Signature of the Branch Head/

Place: Head of office/department
Along with seal

521
 INSURANCE COVER FOR EMPLOYEES WHO
HAVE AVAILED STAFF HOUSING LOANS

[Source: H.O.Cir No.204/2004 dt.20.05.2004

H.O.Cir No.307/2004 dt.17/07/2004
H.O.Cir No.365/2004 dt. 30.08.2004
H.O.Cir No.525/2004 dt. 10.11.2004
H.O.Cir No. 543/2005 dt. 21.12.2005]

1.0 Eligibility:

All employees who have availed Staff Housing Loan/ Supplementary Staff Housing
Loan/ Enhanced Staff Housing Loan/ Enhanced Staff Housing Loan (New), and
have outstanding balance are eligible to be covered under the Scheme.

2.0 Option:

2.1 The Scheme is optional and only employees desirous of joining the Scheme
may submit their option. Employees who have outstanding balances in SHL/
SSHL/ESHL/ESHL-N and not exercised their option to join the Scheme on or
before 31.08.2005 can not join the Scheme after that date.

2.2 An employee who has been admitted to the Scheme as an eligible member will
have the option to withdraw his / her membership only at the time of Annual
Date of Renewal and not in between.

2.3 Employees availing Staff Housing Loan on or after 01.09.2005 may join the
Scheme on their own volition after disbursement of the first instalment of the
loan but not later than the month in which the final instalment of the loan is
disbursed.

3.0 Contribution towards premium:

3.1 Premium shall be payable on an annual basis, at the rate of 2.80 per thousand
rupees of Sum Assured. For the purpose of calculation of premium, Sum Assured
should be rounded off to nearest thousand rupees. The rate is, however, subject
to review from time to time and downward revision could be considered by LIC
of India based on the actual experience in the working of the Scheme.

3.2 An employee will have to pay the prescribed premium in respect of all his Staff
Housing Loan amounts. In other words, he/she does not have the option to cover
only a part of his total Staff Housing Loan liabilities such as only SHL or ESHL, etc.

522
3.3 The premium payable for the first year of joining as per 2.3 above is to be
calculated pro-rata for as many number of months from the month of application
till August next year.

3.4 The Premium paid will not be refundable.

4.0 Sum Assured :

The Sum Assured shall be the sum total of the balance outstanding, including
interest, in the Staff Housing Loans of the employees[SHL/SSHL/ ESHL/ ESHL/
NSHL] as on the 31st March of the previous Financial Year. The maximum
Sum Assured shall not exceed 20,00,000/-. (Rupees Twenty Lakhs only).

5.0 Medical Examination:

5.1 Medical Examination of the employee is not required where the Sum Assured
does not exceed 10,00,000/- (Rupees Ten Lakhs only). Where, however, the
Sum Assured exceeds 10,00.000/-, prior medical examination of the employee
concerned by an approved Medical Examiner who is on the duly approved panel
of the LIC of India, is necessary. For ascertaining the details regarding approved
panel of Medical Examiners, employees desirous of joining the Scheme shall
contact the nearest Branch/Office of the LIC of India. Insurance cover above
10.00 lakhs will be granted subject to satisfactory medical examination. The
cost of the Medical examination, if any, shall be borne by the employee
concerned.

6.0 Termination of Membership :

Membership of the Scheme shall terminate upon the happening of any of the
following events:

a) Member ceasing to be in the service of the Bank for whatsoever reasons.

b) Closure of the Staff Housing Loans of the employee.

c) Member exercising his option at the time of Annual Date of Renewal to

withdraw from the Scheme.

7.0 Settlement of Claims :

7.1 In case of cessation of service of the employee due to resignation, retirement,

etc., the risk cover shall continue till the date of next Annual Date of Renewal
since the premium would have been remitted for that year.

523
7.2 In the event of death of the employee, the Sum Assured (balance outstanding,
including interest, under SHL a/cs as on 31st March of the Previous Financial
Year based on which the latest premium has been calculated and paid) would
be paid by the LIC of India to the Bank, which in turn, shall either adjust the
amount, towards the outstanding balance in the Staff Housing Loan accounts
of the employee or pay the amount to the Staff Provident Fund Nominee, in
case it is decided to permit continuation of the Housing Loan accounts.

7.3 In case it is decided to permit continuation of the Staff Housing Loan accounts,
the terms and conditions as stipulated by the Bank shall be complied with by
the Staff Provident Fund Nominee / Legal Heirs. It may be noted that in such
cases, the risk cover in respect of the Staff Housing Loans of the deceased
employee shall cease.

7.4 In case, however, a dependent has been appointed in the Bank on compassionate
grounds and the Bank has permitted transfer of the Staff Housing Loan accounts
of the deceased employee to such dependent and permission is also given to
continue the Staff Housing Loan accounts, such dependent employee shall have
an option to join the subject Scheme from the next Annual Date of Renewal.

8.0 Benefits of the Scheme :

8.1 No prior medical examination of the employee is necessary for joining the
Scheme, where the Sum Assured does not exceed 10,00,000/-.

8.2 Tax benefit under Section 88 of the Income Tax Act is available to the employees
for the premium remitted. Death claim proceeds are totally exempted from
Income Tax as per prevailing tax rules.

9.0 Submission of option letters by employees:

Employees who are desirous of joining the Scheme (as per 2.3 above) shall
submit, in triplicate their options as well as the details of their Staff Housing
Loans to the Branch/Office where they are working along with a Demand Draft
drawn on Mangalore favouring “Life Insurance Corporation of India” for the
applicable premium.

9.2 Where the Sum Assured exceeds 10,00,000/- the employee shall enclose
the original Full Medical Report given by the Medical Examiner, who is on the
approved panel of the LIC of India, after medical examination of the employee.

524
9.3 The Branch/Office, shall duly forward two copies of the option application/ details
of the Housing Loans to the Branch where the Housing Loans of the concerned
employee are maintained, retaining a copy for their records. The full Medical
Report, in applicable cases shall also be forwarded along with the option letters
as aforesaid to the Branch where the Staff Housing Loan accounts are maintained.

9.4 On receipt of the option application, such Branches shall note/confirm the
particulars of the Housing Loans, the outstanding balance etc. and thereafter
forward the original option application and details of the housing loans of
employee along with the Full Medical Report in applicable cases to PAD in an
envelope superscribed.

SHL - Jeevan Griha Raksha Options”, duly retaining a copy at the Branch.

10.0 General :

10.1 The LIC of India will issue a Master Policy to the Bank incorporating the terms &
conditions under which the benefits are assured.

10.2 The Bank will act for and on behalf of the members in all matters relating to the
Scheme and every such act, agreements and notices given to the LIC of India
shall be binding on the members. There will be no individual communication as
to the renewal of policy.

10.3 The Personnel Administration Division, HO will arrange to collect details on

balances outstanding as on 30th June, on a yearly basis in respect of the optees
from the branches where they maintain their Housing Loan accounts and on
the basis of the information furnished by the branches, arrangements will be
made to recover the premium amount from the salary payable in the month of
August every year and premium amount will be remitted to LIC of India,
Mangalore by 1st week of September.

10.4 Addition of new members, upgradation /downgradation of Sum Assured, etc.,

will be made on the Annual Renewal Date (ARD).
10.5 There is no maturity value on the Sum Assured and the premia paid to LIC of
India will be non-refundable.
10.6 The Bank may discontinue the Scheme at any time subject to giving 3 months’
notice to the members and the LIC of India. Such discontinuation will be effective
from the ARD.
10.7 As the Scheme does not cover the insurance of the House/flat, the risks pertaining
to the property such as fire, lightning, earthquake, etc., are not covered.
525
10.8 The Scheme does not cover disability of the employee due to accident, etc.,
and as such only death claims will be entertained.

10.9 Corp Home liabilities and Corp Home loan availed in lieu of SSHL/for conversion
of SSHL are not covered under this Scheme.

10.10 It is obligatory on the part of the optees to inform PAD (IR), HO of any major
change in respect of their existing loan account/s like premature closure,
converting SSHL to Corp Home Loan, Converting Staff Housing Loan to Corp
Home Loan either on their own volition or due to resignation/ retirement etc.

10.11 The eligible amount deducted towards premium qualifies for deduction from
Gross Total Income under Section 80C (I). Hence the Branch Managers of
branches/offices where the optee employees are working shall take into account
the premium amount and allow admissible deduction under Section 80C(I) while
issuing F.16. Further, the Branch Managers shall take into account whatever
changes/modifications to the provisions of IT Act in this regard from time to time
and act accordingly.

526
 CORPORATION BANK EMPLOYEES’ VOLUNTARY
CONTRIBUTION SCHEME FOR DEATH RELIEF
[Source: HO.Cir.No.7/84 dtd.30.1.84]
1.0 Title:
The Scheme is known as “Corporation Bank Employees’ Voluntary Contribution
Scheme for Death Relief”.
2.0 Commencement of the Scheme :
The Scheme has come into force with effect from 1-3-1984.
3.0 Object :
The Scheme is designed to give monetary assistance to the bereaved family of
the constituent member (hereinafter called “member) who dies while in service
of the Corporation Bank (hereinafter called the “Bank”). The simplicity of the
Scheme lies in the fact that no monthly / yearly subscription is charged and no
funds are accumulated. Funds will be collected at the rates specified in para 6.0
below per member at the time of death of any member and given to the next of
kin as specified in para 7 below.
4.0 Scope :
The Scheme will cover all full time employees of the Bank irrespective of pay
scale or grade/ cadre, who have enrolled themselves as members of the Scheme
including whole-time Directors of the Bank. Membership of the Scheme is voluntary.
5.0 How to become members :
The employees of the Bank will file an application form and an irrevocable letter
of authority (in triplicate). The letter of authority carries standing instruction to
the Bank to deduct a specified amount from the employee’s salary in the event
of death of any member.
New entrants who join the services of the Bank after introduction of the Scheme
will also be eligible to apply for membership by filling in the prescribed application
Form and Letter of Authority which should be delivered to the concerned branch
manager or departmental head.
6.0 Rates of voluntary contribution :
Rates of voluntary contribution to be made whenever any member of the Scheme
dies while in the service of the Bank will be as under:
Contribution from Executives - 15/-
Contribution from Officers - 5/-
Contribution from Clerks - 4/-
Contribution from Sub-staff - 3/-
527
 Thus, under the Scheme there will be no monthly deduction on a regular basis.
Deductions as per the letter of authority will be made only during the month /
subsequent month in which any death of a member occurs.
7.0 Extent of Death Relief:
7.1 The voluntary contributions of the members (as per the letter of authority giving
irrevocable voluntary consent) will be pooled and aggregate amount paid to the
dependents of the deceased by way of death relief.
For the purpose of administration of the Scheme “Dependents” means the next
of kin of the deceased member as nominated by him / her for the purpose of
payment of his / her Provident Fund. If no such nominee is declared either due
to the employee not having been admitted to the membership of the Provident
Fund or for any other reason or the nomination has become invalid by application
of the rules of the Provident Fund, the benefit will be given to the family member
in the order of preference given below at the discretion of the committee.
a) Wife or husband of the deceased member,
b) Dependent children of the member whether married or unmarried in equal shares,
c) Dependent parents of the member in equal shares,
d) Brother / sister dependent on the member in equal shares,
e) Any other relation, wholly dependent on the deceased member at the
discretion of the Managing Committee constituted under para 7.3 below.
7.2 Cessation of Membership :
Membership will cease on resignation, termination, retirement, death, dismissal
or discharge from the services of the Bank.
7.3 Management of the Scheme :
The Scheme will be administered by a Committee appointed for the purpose by
the Managing Director / Executive Director of the Bank. The Committee will
have authority to take all the decisions regarding the operation / administration
of the Scheme. The decision of the Managing Committee shall be final and
binding. The Committee shall have power to make such rules as they deem fit
and proper for the administration of the Scheme.

8.0 Other Provisions :

8.1 Branches /offices are advised to send immediate information regarding the death
of a member. On receipt of the same the HO will take immediate steps for
advising the branches / offices to deduct the voluntary contribution from the
employees’ salary as per the letter of authority.

528
8.2 Based on the letter of authority filed by the employees, the deduction will be
under check-off system.

8.3 The Bank, will make payment to the family of the deceased member as
expeditiously as possible.

8.4 In the event of death of more than one constituent member in a particular month,
multiple higher amount not exceeding six contributions per month will be collected
from the salary of the employees, who are members of the Scheme. The
remaining contributions, if any, will be collected from the salary of the employee
in the succeeding month provided however the contributions during any particular
month will not exceed four. In such circumstances, the payment will be made in
the order in which the committee shall decide.

8.5 The amount payable under this Scheme upon death of the member will be the
same irrespective of the rank or cadre / grade of the deceased member.
8.6 The amount paid to the person entitled as per clause 6.0 will be intimated to all
employees through the Bank’s circular.

8.7 The contributions herein collected are voluntary contributions payable gratis to
persons entitled as per clause 7.1. and shall not be claimable by such claimants
as a matter of right and if any fund collected remains undistributed, the committee
may refund it to the respective members or hold and appropriate it against any
future contribution payable on death of any member.

8.8 The decision of majority of members of Managing Committee in respect of any

dispute or difference as to the meaning or interpretation of any of the clauses of
this Schedule or as to any claim arising under this Scheme, shall be binding.
If the committee for any reason finds that the deceased member has no nominee,
including cases where a nominee pre-deceases the decease member and / or any
dispute arises between the nominee and legal heir/s as the case may be, the death
relief amount earmarked in respect of the deceased member shall be deposited in
a cumulative interest bearing term deposit with Mangalore Pandeshwar Branch of
Corporation Bank, till such time the committee identifies the next of kin and the
death relief along with the accumulated interest, if any, shall be payable to next of
kin, as the case may be. The committee may authorise any two of its members to
jointly open, operate and maintain deposit accounts in the name of “Corporation
Bank Employees’ Voluntary Contribution Scheme for Death Relief Account
(Deceased member)” with our Mangalore Pandeshwar Branch.

529
 PERSONAL ACCIDENT INSURANCE TO THE
EMPLOYEES OF THE BANK

[Source: HO:CIR:PAD:323/2001 dated 19.10.2001]

A scheme for providing on and off duty accident insurance to cover employees
in the case of death due to accidents had formulated by the Bank in the year 1989.
The said scheme also envisaged payment of compensation to employees in the case
of disablement.

Under the present Scheme Capital Sum Insured is revised as under:

Category Capital Sum Insured

( In Lakhs)

Clerical Staff 2.00

Sub-Staff/PTS 1.00

In addition to payment of compensation in case of death due to accidents, the

policy also covers disablement, both permanent and temporary. The brief particulars
of the covers and the procedure to be followed in this regard are furnished hereunder.

Personal Accident Insurance (Under Policy obtained from M/s. New IndiaAssurance
Company Ltd.)

I Brief particulars of the covers:

1.0 The Policy provides for payment of a certain amount, depending upon the Capital
Sum Insured for death or disablement of the insured person due to accident.

2.0 Benefits:

Case Compensation

a) Death only Capital Sum Insured (CSI)

b) Loss of two limbs, two eyes or CSI

one limb and one eye

c) Loss of one limb or one eye 50% of CSI

d) Permanent Total disablement from CSI

other than those named above (PTD)

e) Permanent Partial Disablement (PPD) % of CSI as mentioned below

530
 Part lost Percentage of
Capital Sum Insured

i) Loss of toes-all 20
Great-both phalanges 05
Great-one phalanx 02
Other than great, if more than one toe 01
lost each
ii) Loss of hearing-both ears 75
iii) Loss of hearing-one ear 30
iv) Loss of four fingers and thumb of one hand 40
v) Loss of four fingers 35
vi) Loss of thumb-both phalanges – 25
One phalanx 10
vii) Loss of Index finger three phalanges 10
two phalanges or one phalanx
viii) Loss of middle finger three phalanges or 06
one phalanx
ix) Loss of ring finger three phalanges or 05
two phalanges or one phalanx
x) Loss of little finger three phalanges or 04
two phalanges or one phalanx
xi) Loss of metacarpals – first or second 03
third, fourth or fifth (additional)
xii) Any other Permanent Partial Percentage as assessed by the
Disablement Panel doctor of the Company
f) Temporary Total Disablement (TTD) at 1% of CSI up to 100 weeks
(maximum weekly benefits not
exceeding 5,000/- per week).
However limited to Capital Sum
Insured.

531
2.1 Additional benefit Benefit Amount
Expenses for carriage of dead Maximum of 2% of CSI or
body of the insured person 2500/-, whichever is lower
(death due to accident only)
to the place of residence.

3.0. Exclusions :

Some of the major exclusions are shown below:

The Policy does not cover death, injury or disablement resulting from:
a) Service on duty with any Armed Force.
b) Intentional self-injury, suicide or attempted suicide, insanity, veneral
diseases, AIDS or the influence of intoxicating drink or drugs. Medical or
Surgical expenses.
c) Aviation other than as a passenger (fare paying or otherwise) in any duly
licensed standard type of aircraft anywhere in the world.
d) Nuclear radiation or nuclear weapons material.
e) Any consequence of War, Invasion, Act of Foreign Enemy, Hostilities
(whether war be declared or not), Civil War, Rebellion, Revolution,
Insurrection, Mutiny, Military or Usurped Power, Seizure, Capture, Arrests,
Restraints and Detainments of all Kings, Princes and People of whatever
nation conditions or quality whatsoever.
f) Child birth, Pregnancy or other physical causes peculiar to the female sex.
g) Whilst committing any breach of law with criminal intent.

II. Procedure to be followed:

1. The documents prescribed by the Insurance company consist of the

Personal accident Insurance Claim form and the Medical Report. The claim
form is to be filled in by the employee, duly certified by an eye witness to
the accident. A medical certificate is also included in the claim form which
is to be obtained from the attending doctor. The Medical Report form which
is to be submitted in all cases involving

Permanent Total Disablement, provides for furnishing the full description

of the nature and extent of injuries, percentage of disability etc. Further,
documents like FIR, Post Mortem Report, Police Investigation Report, Death

532
 Certificate and other such documents should accompany the claim form,
wherever necessary. A certificate from the Branch regarding the leave
availed by the employee should also accompany the claim form.

2. Immediately on receipt of information regarding the accident, the concerned

branch/office should collect the details and intimate the concerned Zonal
Office and Personnel Administration Division, Head Office, on receipt of
which an intimation will be given to the Insurance Company.

3. Claim form, duly filled in along with the supporting documents applicable
should be forwarded through the branch and concerned Zonal Office to
Personnel Administration Division, HO. Any delay for submission of the
claim due to unavoidable circumstances should be informed to this Division
so that the Insurance Company is duly intimated.

4. Zonal Offices should keep a register of the claims forwarded to Head Office
duly incorporating the details of the reimbursement of medical expenses
made, special leave granted if any, etc. Submission of insurance claim
shall be a pre requisite for sanction of reimbursement of medical expenses
made in the case of accidents while on duty.

5. The claim will be taken up with the Insurance Company by PAD H.O. The
full benefit of the claim will be passed on to the employee in all cases
except as mentioned in para 6 below.

6. In the case of accidents met with while on duty, the bank reimburses the
medical expenses in full and grants special leave for the period for which
the employee is not able to attend work. In such cases, if the case involves
temporary total disablement (TTD) and the claim is preferred for weekly
compensation, the claim amount will be released to the employee after
deducting the reimbursement already made by the Bank.

533
A. COMPENSATION TO THE FAMILY OF THE PERSONS KILLED IN BANK
ROBBERIES / TERRORIST INCIDENTS: [SOURCE : 566/2012]
Contingencies under which compensation becomes ayable:-
(a) Death of an employee as a result of or during bank robbery and /or attacks
by terrorists including left-wing extremism on bank employees during as
well as after office hours, in any part of the country.
(b) Death of a person other than an employee of the bank as a result of or
during bank robberies and / or attack of terrorists including left-wing
extremism on bank.
COMPENSATION:
1. Quantum of lumpsum compensation payable to the family of the deceased:
(a) Employees:
Officers : 20 lakh
Clerical / Sub Staff : 10 lakh
(b) Persons other than employees: Lumpsum compensation of Rs. 3 lakh
2. Facility for educating the children of the deceased employee:
The educational expenses of the children of the deceased employee up to and
inclusive of graduation will be borne by the bank.
3. Employment on compassionate grounds:
(a) One member of the family of the deceased employee will be given
immediate appointment in accordance with the guidelines for “appointment
on compassionate grounds”.
(b) In case it is informed that no member of the family is able to immediately
take up the employment, the entitlement will be held in abeyance till one
of the members of the family becomes eligible for and is in a position to
take up such appointment.
(c) In cases where compassionate employment is not taken up, an
amount equivalent to the last drawn salary of the deceased is payable to
the family of the deceased employee till one of the children of the
deceased employee reaches 21 years of age or till the date on which the
deceased employee would have retired in normal course, whichever is
earlier, subject to the condition that no member of the family of the
deceased is gainfully employed elsewhere.
534
4. Loans in the name of deceased employee – Adjustment thereof:

Loans for housing etc. outstanding in the name of deceased employee would
be considered for being transferred in the name of the member of the family
who has taken up employment under compassionate grounds. In case no
employment under compassionate grounds is sought by the family of the
deceased employee, only the principal amount will be recovered from the
compensation / other dues payable waiving interest portion of the loan/s.

B. REWARDS FOR RESISTING DACOITIES / ROBBERIES ON BANK:

1. Any persons including our employees who actively resist bank robberies / terrorist
attacks on banks would be considered for a cash reward not exceeding 2
lakh, which would be in addition to the compensation, if any, he / she may be
entitled to, under the provisions of various Acts / Rules applicable to him /her.

2. All expenses for treatment of injury caused during or at the time of resisting
bank robbery / terrorist attack on banks, including hospitalization of the victims
(bank employees / members of public / customers) will be borne by the bank.

3. Our employees who are granted a cash reward as aforesaid would also
be considered for an out of turn promotion provided that they fulfill the minimum
eligibility criteria stipulated for direct recruitees to the post irrespective of the
number of years of service rendered.

Employees who do not fulfill the eligibility criteria for being promoted would be
allowed 3 advance increments in their existing grade / scale on a permanent
basis.

535
 CHAPTER - VIII
SCHEMES OF RECOGNITION

SUPPORT TO SELF DEVELOPMENT SCHEME

[Source : HO Cir.No.853/2008]

Our Bank introduced a scheme to support the academic initiatives of employees

by awarding one-time honorarium on acquiring specified educational qualifications
way back in 1985 vide HO Circular 117/85 dated 03.09.1985. The scheme envisages
placing each individual employee at advantage to identify personal developmental
plans and Organization acting as a facilitator in shaping their career prospects while
aligning the objectives of each such an initiative to the goals of the Organisation to
reinforce a symbiotic existence. Considering the dynamic academic scenario and
ever-changing requirements of the beneficieries, the scheme was revised subsequently
in terms of eligibility, scope, coverage, entitlement etc. Prevailing academic
environment and enormous opportunities thrown open for continuing education has
further necessitated a revisit to coverage of the scheme and a need is felt to further
tune the scheme guidelines to ensure its objectives meet our collective requirements
of present and future.

Salient features of the scheme:

1. New academic qualifications are included to provide a vide spectrum of avenues
for self-development. Majority of the courses offered by Indian Institute of Banking
& Finance included in the scheme.
2. Annual ceiling for eligible reimbursement stands enhanced to 15,000/-
with a corresponding increase in the overall ceiling during entire service to
75,000/-.
3. Reimbursement of periodic renewal/revalidation/re-examination Fees in respect
of AMFI [Advisor’s Module] from Association of Mutual Funds in India/NSE-
NCFM and Certification in Depository Participant Module from NCFM permitted
with retrospective effect.
4. Reimbursement of annual certification maintenance fee in full applicable to
members of ISACA together with 50% of annual membership fee for those
staff members who have completed CISA Certification from ISACA under
Support to Self Development scheme.

536
5. All diploma/PG Diploma/PG Courses offered by University recognised by UGC,
other than those from IGNOU; are de-listed and stands removed from the scope
of the scheme.

Educational qualifications eligible for re-imbursements under Category-1

[Banking-Academic Related Qualifications] and Category-2 [Banking-Business
Related Qualifications] along with category-specific administrative guidelines are
furnished as Annexure-1 and Annexure-2 respectively.

General Administrative Guidelines of the Scheme [Applicable for both Category

1 and Category-2 Qualifications]

1. The scheme offers reimbursement of Course Fee and Examination Fee on

acquiring listed qualifications along with cost of study materials/study kit if
integrated to course fee as per course prospectus. In order to reward meritorious
completion, the scheme offers category-specific one-time honorarium too.
[The scheme offers course/certification-specific higher level of re-imbursements
for qualification under Category-2]

2. The scheme shall have a combined ceiling of 75,000/- per staff member during
entire service towards reimbursement under the scheme on securing
qualifications listed under category 1 and 2. However, one-time honorarium for
meritorious completion of the course/diploma/certification, Early bird incentives
for securing Licentiate Examination, Associate Fellowship [AFII] & Fellowship
[FII] under Life & Non-Life from Insurance Institute of India [III] & Periodical
certification maintenance along with applicable ISACA Membership Fee will
not be included for arriving the ceiling.

3. Administration of the schemes shall be centralized at Personnel Administration

Division, Corporate Office. In respect of acquiring qualifications under the
scheme, personal records of the employee will be updated while releasing the
incentives.

4. Eligible reimbursement under the scheme shall be against production of bills/

voucher/receipts in original, including any proof on eligibility criteria to the
satisfaction of the sanctioning authority, after acquiring of professional
qualification supported by required undertaking to abide by the terms and
conditions of the scheme by the employee concerned.

5. Fees charged by the Institute/Association/University for lumpsum payment will

be the basis for computation of eligible amount.
537
6. The employees acquiring qualification under the scheme will be liable for
placement, suitable to the additional qualification/s acquired, to the best interest
of Bank.

7. Pursuing any course of study included in the scheme or otherwise shall not
come in the way of discharging their duties in the Bank.

9. All employees intending to pursue listed qualification other than JAIIB and CAIIB
from Indian Institute of Banking & Finance, for which a claim may materialize at
a future date, shall obtain prior permission from Personnel Administration
Division, Corporate Office.

10. Employees while claiming incentives under the scheme shall enclose all proof/
documents in original covering entire eligible fee remitted, Copy of the certificate
attested by Branch/Department Head, Copy of the permission to pursue the
course issued by Personnel Administration Division-Corporate Office along
with undertaking letter.

11. A retention period of three years in the Bank is specified from the date of
receiving such incentives and for breach thereof the entire amount, including
honorarium, memberships, maintenance fees, and such other fees/incentives
as the case may be availed under the scheme shall be made to refund.

538
 ANNEXURE-1
Category [1]-Banking-academic Related Qualifications
Eligibility: The scheme under category-1 shall be open to all confirmed employees
under Award Staff and Officer category.
Eligible courses: Following Courses/Certification/Diploma/PG Diploma/Post
Graduation will be eligible under the scheme for reimbursement.
Sl Details of the Course
Courses in academic tie-up with Indira Gandhi National Open University [IGNOU]
and Indian Institute of Banking & Finance [IIB&F]
1 Master of Business Administration [Banking & Finance]
Courses/Certification/Diploma/PG Diploma from Indira Gandhi National Open
University [IGNOU]
1 Diploma In Management
2 Post Graduate Diploma In Management
3 Post Graduate Diploma in Human Resource Management
4 Post Graduate Diploma in Financial Management
5 Post Graduate Diploma in Operations Management
6 Post Graduate Diploma in Marketing Management
7 Integrative Course for conferment of MBA
8 Master of Business Administration [Excluding reimbursements already made for
completion of constituent Diploma/PG Diplomas, if any.
Courses/Certification/Diploma from Indian Institute of Banking & Finance [IIB&F]
1 Junior Associate of Indian Institute of Bankers [JAIIB]
2 Certified Associate of Indian Institute of Bankers [CAIIB]
3 Diploma in Treasury, Investment & Risk Management
4 Diploma in International Banking & Finance
5 Diploma in Banking Technology
6 Post Graduate Diploma in Financial Advising [PGDFA]
7 Certified Information System Banker [CeISB]
8 Certificate in Trade Finance [CTF]
9 Certificate Examination in AML & KYC
10 Diploma in Micro-Finance
11 Certificate Examination in Credit Cards
12 Certificate Examination in “Home Loan Advising”
13 Diploma in Banking & Finance
14 Certificate Examination in SME Finance for Bankers
15 Certificate course in Project Finance [In association with Institute for Financial
Management & Research]

539
In addition to general guidelines of the scheme, following specific administrative
guidelines will be applicable under Category-1 [Banking-Academic related
qualifications]:

1. Reimbursement of incentive shall have an annual ceiling of 15,000/, subject

to a maximum of 75,000/- per employee during the entire period of service.
(Overall ceiling 75,000/- fixed for reimbursement during entire service will be
inclusive of reimbursements under Category [2])

2. Reimbursement of fees in respect of courses offered by Indian Institute of

Banking & Finance will be restricted to such fees charged for the first block of
minimum attempts, if any; stipulated for employees from Member Banks or actual
fee paid by the employee, whichever is lower.

3. Certification maintenance fees/charges or other charges levied, if any, by the

certification agency/Institute/University subsequent to the Award of educational
qualification/s will not be eligible for reimbursement.

4. Any employee securing distinction will be awarded a one-time honorarium of

1500/- for Certification/Diploma Courses, 2500/- for PG Diploma, Post
Graduate courses. [In the absence of any such stipulation in the Certificate
issued by the Institute/University, 80% and above will be deemed as a pass
with distinction].

5. Wherever Course fee/Exam fee and cost of study kit/s are integrated, as per
the course prospectus, full amount subject to applicable ceiling will be available
for re-imbursement. However, Cost of study kit, if specified separately in the
course prospectus, will be excluded while computing the eligible amount for
reimbursement.

6. Employee will not be eligible for special leave, travelling & halting expenses
for attending examination, Contact classes, practical sessions or any academic
related activities of whatever in nature.

540
 ANNEXURE-2

Category [2]-Banking- business related qualifications

Eligibility: Following certification examinations will be classified under Category-2

[Banking- Business Related] with eligibility as furnished thereagainst in the table below:
Sl Course/Certification Eligibility
1 NSDL Depository Operations Module Employees working in DP /Designated
Certification from NCFM [Depository branches and those willing to be posted to
Participant Module] DP/Designated branches and all Marketing
Officers.
2 AMFI Certification [Advisors Module] All employees in Officer cadre only.
from AMFI/NCFM
3 Certified Information System Auditor All Computer Officers working at Information
from ISACA Technology set-up [IT Division, Zonal
Computer Centre, IAD, IAD Cell etc.].
Chartered Accountants in Officer category
up to and including Scale III.
4 Licentiate Examination, Associate
Fellowship [AFII] & Fellowship [FII] All employees in Officer cadre only.
under Life & Non-Life from Insurance
Institute of India [III].

Incentive Package for NSDL Depository Operations Module Certification from

NCFM, AMFI Certification [Advisors Module] from AMFI/NCFM & Certified
Information System Auditor [CISA] from ISACA:
1. Re-imbursement of Course/Examination Fee in actuals, subject to an overall
ceiling of 75,000/- fixed for reimbursement during entire service, including
reimbursements under Category-1. [Please note, annual ceiling under the
scheme will not be applicable to this category]
2. Special Leave for attending examination will be considered if only the examination
is conducted on a working day.
3. Actual journey days required to the nearest examination centre from the
workplace to attend the certification examination depending on the distance
from workplace will be considered as special leave, if the journey is undertaken
on a working day.
4. One time Honorarium of 1500/- [One thousand five hundred only] in case of
DP Module and AMFI Certification. However, employees securing CISA
Certification under the scheme will be eligible for a one-time honorarium of
5,000/-. [Please note, such one-time honorarium will be available for original

541
 certification and will not be applicable for subsequent renewal/revalidation/re-
appearing for examination or certification.]
5. An additional honorarium of 5000/- [Rupees Five thousand only] to those
eligible staff members under the scheme securing NSDL Depository Operations
Module Certification from NCFM or AMFI Certification [Advisors Module] from
AMFI/NCFM during 1st June 2008 to 30th May 2009.
6. Periodical renewal/revalidation/re-examination charges in respect of AMFI
[Advisor’s Module] from Association of Mutual Funds in India/NSE-NCFM and
Certification in Depository Participant Module from NCFM [validity period of
five years as on date] after the expiry of original term of the current certification.
[Please note, renewal/revalidation/re-examination fee in respect of AMFI
[Advisor’s Module] from Association of Mutual Funds in India/NSE-NCFM and
Certification in Depository Participant Module from NCFM will be reimbursed
with retrospective effect.]
7. Eligible staff members who have completed CISA Certification from ISACA under
Support to Self Development scheme will be eligible for reimbursement of annual
certification maintenance fees charged by ISACA as applicable to ISACA
Members in full and 50% of annual membership fees for such renewal/
maintenance/membership period commencing from 20th September 2008.
[Please note, such maintenance fee is reimbursable only to those who comply
with Continuing Professional Education Policy of ISACA.]

Incentive Package for Licentiate Examination, Associate Fellowship [AFII] &

Fellowship [FII] under Life & Non-Life from Insurance Institute of India [III]:

1. Re-imbursement of Examination Fee in actuals for Licentiate Examination,

Associate Fellowship & Fellowship in various branches under Life & Non-Life.
(Subject to an overall ceiling of 75,000/- fixed for reimbursement during entire
service, including reimbursements under Category- 1 [Qualifications - Banking
academic related).

Note: At licentiate examination level, candidates appearing for both under

life and non-life branch will be eligible for all re-imbursements eligible under the
scheme. However, under Associate ship, any one of the specializations like,
Associate Fellowship-Life, Associate Fellowship-Non life [Fire], Associate
Fellowship-Non life [Marine], Associate Fellowship-Non life [Miscellaneous] or
Associate Fellowship-Non life [General] etc. shall only be considered for support
under the scheme. Likewise, any one under Fellowship-Life or Fellowship-
General shall be considered for the support under the scheme for acquiring
Fellowship.
542
2. One time Honorarium of 1500/- [One thousand five hundred only] each on
completion of Associate fellowship and Fellowship from the Institute. [Being an
entry-level examination, one- time honorarium will not be available on completion
of licentiate examination]
3. An additional Early Bird Incentive, as follows; to those eligible employees who
could complete the Associate Fellowship from Insurance Institute of India on
the first offered attempt but latest by October-November 2008 examination.
3.1 Reimbursement of Life membership fee of Insurance Institute of India.
3.2 Registration Fee for Licentiate Examination & Associate Fellowship.
3.3 Reimbursement of actual cost of course study material released by the
Institute for Licentiate Examination [3+1 courses] and Associate Fellowship
[6 courses].
3.4 An additional honorarium of 5,000/- [ Five thousand only] on completion
of Associate Fellowship.
Note: Early bird incentives under pare [3.1] to [3.4] will not be considered for
computing the overall entitlement of 75,000/- under the scheme]

In addition to general guidelines of the scheme, following specific administrative

guidelines will be applicable under Category-2 [Banking-business related
qualifications]:
1. Fees charged by the Institute/Association for payment of Examination/Course
fee in lumpsum will be the basis for computation of eligible amount and the
increase in the Course/Exam fee due to part payment will not be considered for
re-imbursement.
2. Certification maintenance fees/charges or other charges levied by the certification
agency/Institute subsequent to the Award of Certification other than those
mentioned under Para [5] and [6] above will not be eligible for reimbursement.
[In respect of reimbursements under [5] and [6], claims shall be submitted in the
prescribed format along with xerox copies of relevant certificates and proof/
receipts in original covering the entire amount.]
3. Travelling & Halting expenses for attending examination, Contact classes,
practical sessions or any course related activities of whatever in nature will not
be eligible for re-imbursement.

543
FACILITIES / CONCESSIONS FOR LEARNING HINDI
1.0 Cash Incentive Schemes for Passing Hindi Examinations

a. The above scheme is applicable to the employees:

i) Who have passed the Prabodh, Praveen, Pragya exams, Hindi

typewriting and Hindi stenography exams under Hindi Teaching
Scheme.
ii) Who has passed higher Hindi exams conducted by various Voluntary
Hindi Organisations only. Employees who have passed full fledged
degree in Hindi as a major / special subject /post graduate degree in
Hindi conducted by various Universities are not eligible for cash
incentives.
iii) Who have passed elementary level exams conducted by different
Voluntary Hindi Organisations which are equivalent to the
examinations mentioned above i.e. Prabodh, Praveen and Pragya.
iv) Who have passed the exams Prabodh, Praveen, Pragya, Hindi typing
or Hindi stenography under Hindi Teaching Scheme by
correspondence course conducted by the Central Hindi Training
Institute or the Central Hindi Directorate.

b. Amount of Incentives:

Amount of incentives shall be payable to the aforesaid categories of

employees on passing of the various exams at the following rates.

Category ‘A’ : Employees whose mother tongue is Hindi and who can
express themselves well in Hindi.
Category ‘B’ : Employees whose mother tongue is one of the following
languages – Urdu, Punjabi, Kashmiri or other allied
languages.
Category ‘C’ : Employees whose mother tongue is one of the following
languages – Marathi, Gujarati, Bengali, Oriya, Assamese
or other allied languages or Sindhi
Category ‘D’ : Employees whose mother tongue is any of the South
Indian Languages or English

544
GRANT OF INCENTIVES TO EMPLOYEES OF PUBLIC SECTOR BANKS
FOR PROGRESSIVE USE OF HINDI IN BANKS-REVISION IN RATES
Please refer to our Cirulars No. 263/88 and 173/90 dated 10.08.1988, 25.05.1990
and H.O. Circular No. 100/2000 dated 10th April, 2000 respectively advising the details
of the schee and the amount of incentives payable to staff members on passing of
various examinations in Hindi under the Hindi Teaching Scheme of the Department
of Official Language, Ministry of Home Affairs, Government of India.
In continuation of the above we advise that IBA has since revised the cash incentive
payable to employees on passing various Hindi examinations. The revised rates are
as given below & w.e.f. from 1st January, 2010:

For Employees in Categories

Areas
A&B( ) C&D( )
Existing Revised Existing Revised
A. Prabodh exam. under Hindi 250/- 2,000/- 500/- 4,000/-
Teaching Scheme
B. Praveen examination of Hindi 250/- 2,500/- 500/- 5,000/-
Teaching Scheme
C. Pragya examination of Hindi 300/- 3,000/- 600/- 6,000/-
Teaching Scheme
D. Examinations which are conduct by the 300/- 3,000/- 600/- 6,000/-
voluntary Hindi Organizations and
recognized by the Govt. of India
(Ministry of Education and Social
Welfare) as equivalent to or higher
than the matriculation examination
E. Hindi Diploma Course conducted by 300/- 3,000/- 600/- 6,000/-
Central Hindi Directorate
F. Hindi Tying / Hindi Stenography 300/- 2,500/- 500/- 2,500/-
Examination
G. Banking oriented paper in Hindi of IIBF 300/- 3,000/- 300/- 3,000/-
H. In addition to the honorarium paid for English Typists English
acquiring proficiency in typing / Stenographers
Stenography in Hindi Regional
language, Hindi incentive allowance to 80/- p.m. 160/- p.m. 120/- p.m. 240/- p.m.
English typists and stenographers who
do typing or stenography work in Hindi
respectively in addition to English

545
1.1 All the above incentives are paid as a one time honorarium which will not rank
for DA, PF, Bonus etc., and also not be liable for Income Tax since the amount
is of a casual and non-recurring nature.
1. An employee is eligible for cash incentives for passing any three exams
during the period of his entire service.
2. Reimbursement of Exam. Fee / Tuition Fee / Course Fee :
2.1 Exam Fee :
Examination fee is reimbursed by the bank for the following exams.
1) Hindi Prabodh, 2) Praveen, 3) Pragya conducted under Hindi Teaching
Scheme, 4) Prabodh, Praveen, Pragya, Pravesh and Parichaya exams
conducted by the Central Hindi Directorate correspondence course and Hindi
Typing/stenography examinations conducted by the Government of India or
State Governments, provided –
a) he appears for all the papers of the exams including viva voce.
b) he has claimed for reimbursement of the fees in respect of the exams on
two occasions provided they pass the course on second attempt.
2.2 Course Fee :
In respect of Prabodh, Praveen, Pragya, Pravesh and Parichaya exams. conducted
by the Central Hindi Directorate through correspondence course and the Hindi
typing/stenography examinations conducted by the Government of India or State
Governments, the course fee is reimbursed on production of attendance certificate
by the head of the Training Centre / Course Director provided –
i) the employee has appeared for all the papers of the exams. ii) he has
completed his course / training iii) he has claimed for reimbursement of
course fee in respect of exams. for the first time.
2.3 Tuition Fee / Admission Fee : (Cir No.137/12 dt. 10/03/2012)
In the case of Prabodh, Praveen, Pragya, Pravesh and Parichaya exams
conducted by the Central Hindi Directorate through correspondence course,
and the Hindi Typing/Stenography exams conductor by the Government of India
or State Governments, tuition fee / admission fee will be reimbursed on
production of certificate from the Directorate / Institution after the completion of
the training / course that the employee has attended the classes regularly /
completed the course successfully and appeared for the exam. The tuition
fee / admission fee of 2,000/- will be reimbursed only once for each exam.
2.4 Honorarium for Teaching Hindi Typing / Stenography :
If an employee of our bank works as part-time instructor for teaching Hindi

546
 typing and stenography to our employees, he/she shall be eligible for honorarium
as under:
‘A’ Region:
If the number of trainee employees is upto 5, 100/- p.m. and if the number is
more than 5, 200/- per month.
‘B’ Region :
If the number of trainee employees is upto 5, 150/- p.m. and if the number is
more than 5, 250/- per month.
‘C’ Region :
If the number of trainee employees is upto 5, 200/- p.m. and if the number is
more than 5, 400/- per month.
2.5 Honorarium for Translation Work:
The Bank is paying honorarium as per the following rates to carry out translation
work of the Bank.
150/- for every 1000 words of general nature.
175/- for every 1000 words of technical nature.
2.6 Writing Original Books in Hindi : (H.O.Circular No.165/94 dated 23.06.1994;
152/2004 dated 07.04.2004)
The Reserve Bank of India Committee on Co-ordination of Training in Hindi,
CAB Pune has formulated a scheme of incentives for encouraging writing of
books in Hindi. The name of the scheme is “Scheme for writing Original Books
in Hindi on Banking Subjects”. The employees whose proposal is approved by
the said committee will be eligible for a grant of 10,000/- by the Bank.
3.0 Conveyance charges / Travelling Expenses Pertaining to Hindi Classes &
Exams:
3.1 Actual conveyance charges from Bank to Training Centre and back will be paid
to the trainees subject to the condition that it is by the cheapest mode of transport
and is by the shortest route (paid only once for a course).
3.2 Travelling allowance would be paid to employees attending the exams conducted
by the Government of India including Government sponsored bodies, provided
the employees produce a certificate to that effect from the hall supervisor. TA in
this case is paid only if there is no local centre for the exams. conducted (will be
paid second time if necessary).
3.3 Travelling allowance (i.e. by II Class train / bus fare) by the shortest route will be
paid to members sponsored by the banks for attending contact programmes
conducted by the Central Hindi Directorate (paid only once).

547
3.4 The facilities available under points 3.1, 3.2 and 3.3 will be available to the
employees when they are attending Central / State Government sponsored
training programmes and exams. connected therewith.
3.5 The employees are expected to prepare for the exams. outside their working
hours. No special leave, study leave, halting allowance etc., will be paid for
appearing at any of these exams.
1. Once the candidate chooses to join the classes, attendance in classes
and appearance in immediately following exam. is compulsory.
2. Treating the absence of employees on duty for attending Hindi
Classes and appearing for various Hindi exams :
4.1 Our employees are permitted to attend during working hours –
i) Classes of Prabodh, Praveen Pragya, conducted by our STC or Hindi
Teaching centres
ii) Hindi Typing/Stenography classes conducted by Institution sponsored by
the Government of India or State Governments.
iii) For attending personal contact programme conducted by the Central Hindi
Directorate.
4.2 The absence of employees to appear for exams. (1) Prabodh, Praveen, Pragya,
Hindi Typing, Hindi Stenography, Pravesh and Parichaya exams conducted by
the Ministry of Home Affairs / Central Hindi Directorate is treated as on duty
provided the employee appears for the exams. at a centre nearest to his place
of work (including the period of journey).
1. For attending classes / appearing for exams, conveyance/ traveling
allowance shall be payable. In case, the exams/ classes are conducted
after office hours, no overtime shall be payable merely on the ground that
it is treated as on duty.
2. Supply of Books :
5.1 Necessary books will be supplied to all the employees attending various Hindi
exams. under Hindi Teaching Scheme on returnable basis, wherever possible.
1. If the books supplied are lost or torn, full cost of the books should be
reimbursed by the employees.
2. Claim for Cash Incentives & Sanctioning Authority.
6.1 For claiming the cash incentives, the employee will fill in the prescribed form
accompanied by certificate / Xerox copy of the certificate, mark-sheets and
submit the same through the branch/office to the O.L.C of the concerned Zonal
Office/ Head office, as the case may be. The concerned Official Language Cell
will recommend the case and forward the claim to the respective sanctioning
548
 office i.e. for employees at branches the concerned ZO’s and for the employees
at HO, IIBD, STC, SPF, and Printing and Stationery Section, the claim along
with recommendations of concerned O.L.C may be forwarded to PAD, HO, for
sanction. The sanctioning offices will approve the claim and inform the branches/
offices concerned for release of the incentives.
1. Claims for the actual conveyance charges and travelling allowance for
attending the classes and for appearing at exams, on passing the exams
supported by attendance certificate / hall ticket, as the case may be, should
be forwarded to respective Zonal Office for sanction. ZOs shall sanction
the claim after verification of attendance certificate / hall tickets, as the
case may be. For the employees of HO, SPF, STC, Printing and Stationery
Section, the sanctioning office shall be PAD, HO.
2. Reimbursement of Incidental expenses to staff members attending
the training (Circular No.327/2004 dated 28.07.2004 and Circular Letter
No.11/2005 dated 14.09.2005 - Circular No.11/2005 dated 14.09.2005)
Staff Members (officers and clerical staff) undergoing training in Hindi
Prabodh / Praveen / Pragya or in Hindi Typewriting / Stenography shall be
eligible for reimbursement of reasonable amount of incidental expenses
incurred by him / her that on account of deputation for Hindi Training as under:
1) Deputation to Training Centre at Mangalore : 30/- per day
2) Deputation to Training Centre / Branch/ Office at
a) Mumbai and other major ‘A’ class cities : 50/- per day
b) All other CCA Centres : 30/- per day
The staff members who are locally deputed to attend Hindi Workshops
and the personal contact programme under correspondence course are
also eligible to claim the reimbursement of incidental expenses as above.
Incidental expenses are also payable for attending the examinations
conducted within the head quarters under the Hindi Teaching scheme,
certificate and Diploma Exams of Central Hindi Directorate or any other
examination conducted by the recognized institute for imparting usage
knowledge in Hindi or for representing the Bank in a Hindi Competition
conducted by Local TOLIC or other institutions in which the staff members
appears on instructions from the Bank.
8.0 Reimbursement of Conveyance / Halting Expenses for attending
examination at outstation centre:
Employees who have to attend Hindi Prabodh/ Praveen/ Pragya or Hindi
typewriting or Hindi stenography examinations at outstation centres will be eligible

549
 for reimbursement of conveyance expenses by the cheapest mode of transport
(bus /II class train) and by the shortest route provided the centre chosen is
nearest to the head quarters or place of work of the employee. They will also be
eligible for halting allowance as per rules. In such cases no incidental expenses
will be reimbursed.
Various schemes & incentives pertaining to usage of Hindi
Introduction :
The Government of India has formulated various schemes to be implemented in all
the Central Government Institutes including Nationalised Banks with a view to promote
usage of Hindi in Official work. Our Bank has also formulated various scheme in line
with the Government guidelines which are mentioned below:

Corp Rajbhasha Puraskar Yojana :

(Circular No.275/90 dated 14.09.1998 & 429/2005 dated 14.09.2005)

A scheme of Cash Award has been instituted to benefit all members of the Bank for
the Official Language Implementation work in the Bank by them. The Scheme is
applicable to ZOs and HOs. Each region will be treated as a separate unit and HO as
a separate unit. Officers/employees of all categories who do their official work wholly
or partly originally in Hindi can participate in the scheme.

Only these officers / employees will be eligible for award who write at least 20,000
words in Hindi in a year in Region - ‘A’ (i.e. Himachala Pradesh, Rajasthan, Madhya
Pradesh, Chattisgarh, Bihar, Jharkhand, UP, Uttaranchal, Delhi and Union Territories
of Andaman & Nicobar Island) at least 15,000 words in Region ‘B’ (i.e. Gujarath,
Maharashtra, Punjab and Union Territory of Chandigarh) and at least 8,000 words in
Hindi in a year in Region ‘C’ (which comprises all other states and Union Territories
except covered under Region ‘A’ and ‘B’).

The following cash awards will be given to the participants every year according to
the work done by them in Hindi.

Prize No. Amount

I Prize 01 2,000/-
II Prize 01 1,500/-
III Prize 01 1,000/-
Consolation Prize 07 500/-

550
INCENTIVES FOR PROMOTING SMALL FAMILY
[Source: H.O. Circular 553/87 Dt. 11-12-1987]

1. Those employees who themselves undergo or whose spouses undergo

sterilisation operation as a measure for promoting the small family norms are
eligible for the incentives.

2. The quantum of cash incentives are as under:

a) For an employee with 1 child/2 children : 500
b) For an employee with three children : 400
c) For an employee with more than three children : 400

2. The employees must be within the reproduction age group. In the case of male
employees, this would mean that he should not be over 50 years and his wife
should be between the age group of 20 to 45 years and vice versa.

3. The steralisation operation must be conducted and a certificate to that effect

must be issued by the competent authority of the hospital.

4. The term hospital for this purpose would mean any institution which has been
registered as a hospital or a nursing home with the local authorities and is
under the supervision of a registered and qualified medical practitioner.

6. The Certificate must contain the following details:

a) Name of the person on whom the operation was conducted.
b) Nature of the operation.
c) Date on which the operation was performed.d) Number of children the
employee had on the date of operation.

5. Where both the spouses are employed either in the same institution or in different
institutions, only one of them is entitled to claim for cash reward. A declaration
to this effect is to be given by the employee.

6. Applications for cash incentives are to be submitted to respective Zonal Offices.

7. Claims should be submitted within 6 weeks from the date of undergoing the
operation.

8. Reimbursement of hospitalisation expenses in connection with sterilisation

operations shall be as per the Bipartite Settlement.

9. Special leave for sterilisation operation is explained under Chapter IX (Other

Service Conditions) of this Book.

551
SCHEME FOR HONOURING SENIOR EMPLOYEES ON THEIR
COMPLETING 25 YEARS OF UNBLEMISHED SERVICE
[Source: HO/Cir/59/92 dated 26.9.92, 274/92 dtd.20.8.92,
300/95 dt.22.8.95, 213/2000 & 735/2009]
1.0 Eligibility :
i) Employee with 25 years of ‘unblemished service’. The term ‘unblemished
service’ would mean that no penalty/ punishment (other than censure /
warning) has been imposed upon him during the immediately preceding
3 years or rigour of penalty was in operation, whichever is longer. The
Award could be released after the debarment period is over.
ii) The leave record of the employee should be non-assailable. In other words,
all leave availed by the employee should have been duly sanctioned.
2.0 Award
The Award may be in the form of an article like wrist watch, silver salver or any
other article of employee’s choice costing an amount not exceeding 5000/-
irrespective of the fact whether the recipient is an Award Staff or an Officer.
3.0 Presentation of the Award
3.1 The Award may be presented by the Branch Manager in the case of employees
working in branches while Zonal Manager / Assistant General Manager in charge
of Zones may present the Award to employees working in their respective office.
Eligible employees working in Head Office and other Offices may be presented
with the Award by the Heads of Department/ Office concerned.
3.2 The award may be presented by arranging a simple function at the Branch/
Office / Department concerned attended by all the employees working in the
Branch/Office / Department, as the case may be.
3.3 It may, however, be noted that in the case of branches, the presentation of the
award may be made during their monthly staff meeting.
3.4 Light refreshments may be served during the function and for this purpose an
expenditure not exceeding 20/- per employee in the case of metropolitan
centres, 15/- per employee in the case of centres other than rural and 10/-
per employee in the case of rural centres may be incurred. While no separate
ratification is necessary for the refreshments served, expenditure incurred for
the purchase of article presented to the employee should be reported to the
respective Zonal Office for ratification. The cost of the article presented and the
expenses incurred towards refreshment may be debited to Miscellaneous
Expenses Account at the respective branch / office.

552
GUIDELINES FOR EXTENDING BENEFITS TO SPORTS PERSON
EMPLOYEES OF THE BANK
[Source: Cir No.368/2011]
Level of Participation :
1. Group-A :
Employees participating in Inter – State, National and International Meets and
representing the Sate, Zone (comprising two or more States) and the country are
covered under this category.
1.1 Nature of Leave :
On duty Special leave is permissible for participation in local / out station
tournaments of above nature, for the period of actual days of participation in the
tournament and the journey period, if any.
1.2 Travelling Expenses :
For participation in outstation tournaments, actual to and fro conveyance
expenses by the mode and class of travel as applicable to Junior Management
Grade Scale I Officers will be reimbursable. Employees above rank of JMGS I are
eligible for Travelling Expenses as applicable to their Cadre/ Scale. Reimbursement
of traveling expenses for local tournaments is not permissible. In case the sportsperson
is required to travel abroad for participation in international events to represent country,
the quantum of reimbursement will be decided on case to case basis by Chairman
and Managing Director and in his absence by Executive Director.
1.3 Halting Allowances :
Halting Allowance as applicable to Junior Management Grade Scale I officers
is payable. Employees above rank of JMGS I are eligible for Traveling Expenses as
applicable to their Cadre/ Scale. For local tournaments no halting allowance is payable.
In case the sportsperson is required to travel abroad for participation in international
events to represent country, the quantum of Halting Allowance will be decided on
case to case basis by Chairman and Managing Director and in his absence by
Executive Director.
1.4 Out – of - Pocket Allowance :
Out of Pocket Expenses including local conveyance expenses actually incurred,
if any, and any other expenses of whatever nature shall be payable, without reference
to vouchers/ bills, not exceeding:
i) 200.00 per day if the tournament is held in Major ‘A’ class cities.
ii) 100.00 per day if the tournament is held in other centers.

553
 The payment in this regard can be made on the basis of the claims made by the
players, subject their undertaking. Out of pocket expenses are over and above the
halting allowances payable as mentioned above.
2. Group-B :
Employees participating in the events conducted at District, Inter District/ Zone
and State level are covered under this category. Special leave and other benefits are
not available for participation in the events organized/ conducted at the local/ taluk
level.
2.1 Nature of Leave :
On duty Special leave is permissible for participation in local / out station
tournaments of above nature, for the period of actual days of participation in the
tournament and the journey period, if any, subject to a maximum of 30 days per
annum (non cumulative).
2.2 Traveling Expenses :
For participation in outstation tournaments, actual to and fro conveyance
expenses by the eligible mode and class of travel as applicable to the cadre of the
employee will be reimbursable as per rules / settlements. Reimbursement of traveling
expenses for local tournaments is not permissible.
2.3 Halting Allowances :
Halting Allowance as applicable to the cadre of the employee will be reimbursable
as per rules /settlements. Reimbursement of Halting Allowance for local tournaments
is not permissible.
2.4 Out – of - Pocket Allowance :
Out of Pocket Expenses including local conveyance expenses actually incurred,
if any, and any other expenses of what ever nature, shall be payable, without reference
to vouchers/ bills, not exceeding:
i) 200.00 per day if the tournament is held in Major ‘A’ class cities.
ii) 100.00 per day if the tournament is held in other centers.
The payment in this regard can be made on the basis of the claims made by the
players, subject their undertaking. Out of pocket expenses are over and above the
halting allowances payable as mentioned above.
Note : The overall limit on number of days of special leave for participation in
sports events is 30 days per annum (non-cumulative). The number of

554
 days of special leave availed will not be reckoned for computing
privilege/ sick leave as in case of privilege leave. Special leave can
not be combined with casual leave.
3. Additional Facilities/ Benefits extended to Sports person employees :
3.1 Time Off :
A time – off of 1 1/2 hours for daily practice in the afternoon is permitted.
3.2 Uniform and Kit :
The following items are provided to all participants who participate in various
District/ State/ National level Sports Meets :
i) One pair of tracksuit costing not more than Rs. 1,000.00, once in two years.
ii) Sports kit once in two years, consisting items commensurate with sportsperson’s
specialization, l ike athletics, weight lifting, cricket etc. The sports person should
seek prior approval for the items selected by him/ her by submitting quotation
from an authorized sports shop/ outlet and having CST/KST/VAT regn. no. The
sanction of the sports kit amount rests with the General Manager, HRM, HO
only.
Note: Sportspersons claiming any of the above facilities should submit
proof of their participation in any of the activities under Group “A” or
“B”, during the previous two years from the date of claim.
3.3 Kit Money/ Allowance for participation in international events :
1. The Chairman and Managing Director and in his absence Executive Director
may, at his discretion, grant kit money to a sportsperson employee, if he/ she
is selected to participate in international tournaments, in case the sponsoring
organization/ association is not sanctioning the kit money and confirms the same.
The claim should be supported by a certificate from sponsors and is restricted
to Rs.10,000 once in 2 years.
2. The Chairman and Managing Director and in his absence Executive Director
may, at his discretion, grant out of pocket expenses to the employee participating
in international tournaments, subject to a maximum of Rs. 5000.00 in case the
sponsoring organization/ association is not able to meet the expenditure.
4. Special Leave for other activities related to sports :
4.1 Pre-participation coaching camps :
Sportsperson employees selected for undergoing conditioning camps/ coaching
camps after their selection to participate in the events of National / International
555
 importance may be released on duty as per the request from the Association/
Federation concerned. The benefits/ allowance in this case are as applicable
under Group A.
4.2 Pre-selection trials/ camps :
Special leave within the overall limit of 30 days is also available in the following
cases :
i) For participation in pre-selection trials connected with sports events of
National/ International importance.
ii) For attending training camps held in connection with sports events of
National/ International importance. However, such coaching camps should
be organized by National Institute of Sports, Patiala or National Sports
Federation / Sports Boards recognized by All India Council of Sports.
Traveling and out of pocket expenses as available under Group B are
payable in these cases.
4.3 Mountaineering/ Trekking Expeditions :
i) Special leave facility for mountaineering / trekking expeditions may be
granted by the Bank provided the expeditions are approved by the Indian
Mountaineering Foundation.
ii) The special leave facility for mountaineering / trekking expeditions shall
not exceed 30 days and will be restricted once in the employee’s entire
career. This facility is available even to those employees who are not
recruited under Sports Quota. These employees should apply for on duty
special leave as per format in annexure – IV.
iii) For such expedition there should be approval of the Indian Mountaineering
Foundation and a certificate should be produced of having participated in
the approved expedition.
4.4 Participation as Coaches/ Umpires/ Referees/ Officials :
When the employees of the Bank are requested by the State/ National
Association or Federation to take part in the Sporting events of National/
International importance as referees, umpires and officials etc., they will be
eligible for special leave, traveling allowance and out of pocket expenses as
specified under Group B.
It may however be noted that the requests for special leave under this category
will be considered only when the duties assigned to the employees as officials

556
 require professional competence on their part in respective sports field. The
intention is to grant special leave to a qualified person who is actively involved
in conduct of the tournament and is required on the ground or with the team
and not to a person who is associated in a honorary or decorative capacity such
as a member of the Reception Committee, Refreshment Committee etc.

4.5 Sustaining injuries while participating in tournaments/ practices :

When a sports person employee receives injury while representing the Bank in
a tournament or practicing as a part of the Bank’s team and not as a part of any
other team or as an individual, he/she will be extended all the benefits as are
available to employees who sustain injuries in the course of duty. All other cases
will be examined on a case to case basis.

5. Application for Special Leave/ duty release :

Permission to participate in sports events/ selection trials must invariably be

obtained from this office sufficiently in advance. The application should be
forwarded through respective Zonal Office/ Division for our consideration.

Applications received after events or not sufficiently in advance or not through

proper channel will not be entertained.

Applications seeking permission should contain full details such as :

a) Name of the event,
b) Date, venue and fixture of the event,
c) Name & address of the Organizers of the sports event,
d) Name & address of the State/ National Sports Organization to which the
Organizers re affiliated,
e) Whether the said State/ National Sports Organization has been recognized
by All India Sports Council.

A copy of the invitation from the Organizers or a copy of the notification issued
by the organizers should accompany the application. Forwarding authority is
required to offer specific recommendations while forwarding the application.

After the completion of the sports event the employee concerned should
forward following documents as proof of his/ her participation, within 7 days of
resuming duty, failure which his/ her subsequent request for any facility under
the scheme will not be entertained.
a) Copy of participation certificate issued by the organizers,

557
 b) Copies of the Certificate of Merit, if any, won at the sports event, c) A brief
report on his/ her performance in the sports event,
d) News paper clippings, if any, published in leading dailies regarding the
sports event,

Format of the application is furnished as annexure – IV. All applications in

future must be in the format only.

6. Submission of TA Bills :

Claims for payment of TA and other allowance/ expenses as applicable must

be submitted to the respective Zonal Office/ sanctioning authority within 7 days
of resuming duty. The following certificates/ declaration must be enclosed while
submitting TA bills :
a) Leave sanction letter,
b) In case out station travel is involved, Journey tickets or details thereof,
like ticket no., date & place of where tickets were booked, destination,
fare etc.
c) Participation Certificate obtained from Organizers,
d) Declaration as per format given in annexure – V.

7. Facilities to Veteran Sportspersons : (New Clause)

7.1 Veteran Sportspersons are defined as sportspersons who have played /

participated in a particular sports discipline at the International/ National level in
the past and are over 35 years of age.

7.2 Sportsperson employees who retire from active sports arena, will be eligible for
the facilities applicable to Veterans for till the age of 40 years.

7.3 Veteran sportspersons may be granted time off facility after business hours,
two months prior to participation at a veteran’s event at the National/ International
level for preparation against specific invitation from the Recognized Veterans’
Federation/ Association of a particular discipline to participate at the National /
International level in a particular event.

7.4 Sportspersons selected by the State Veterans’ Federation of a particular

discipline to represent the State at National level or to represent the Country at
the International level are eligible for Special Leave and other facilities as is
being provided to active sportspersons.

558
8. De-categorization :

8.1 The Sports Board of the Bank shall review the performance of sports person
employees who are recruited under the scheme for recruitment of outstanding
sports persons, every year. For this purpose the sports person employees who
are recruited under the said scheme have to forward their sports performance
reports to Head Office every year on or before 31st January of the
succeeding year as per format in annexure - III.
8.2 After review of the performance of each sports person employee, in case
the sports Board observes that there is continuous decline in the level of
performance of any sport person employee during the past 2 years, it may
recommend for de-categorization of such sports person employee.
8.3 The de-categorized sports person employees will not be eligible for the benefits
such as Time off, Uniform and kit, Kit Money etc. besides benefits as applicable
to veteran sportspersons.

559
I. Guidelines for Recruitment of Sportsmen/ Women Employees for the Bank :
1. Posts identified for the appointment :
The appointment shall be made in the following categories:
a) Sub-Staff category b) Clerical category & c) Officers category
2. Eligibility Criteria :
Category Age Educational Sports Qualification
qualification
SubStaff 18-26 8th pass- Should have represented the district
12th fail in a state level event or should have
participated in an All India School
event in the games identified in the
scheme.
Clerical 18-28 12th and above Should have participated in State
level/National level events with
distinction in the games identified in
the scheme
Officers 20-30 12th and above a) Should have represented the
cadre in Country in the games identified in
JMGS I the scheme
b) For Cricket - should have played
in Ranji/Deodhar/Irani/Duleep trophy
Any degree a) Should have represented the state
at least for 3 years, in the games
identified in the scheme
b) For Cricket - should have played
in Ranji/Deodhar/Irani/Duleep trophy
Officers in Higher In exceptional cases, the Board may consider
Grade/Scale appointment of a sportsperson, who has won gold
medals for the country in International Sports events
in a higher grade.
Probationary a) Sub-staff and Clerical cadre 6 months.
Period b) Officers cadre 2 years.

560
3.0 Games identified for the purpose of appointment :
1 Foot ball 11 Table Tennis
2 Hockey 12 Bodybuilding
3 Volleyball 13 Weight lifting
4 Basketball 14 Acquatics
5 Cricket 15 Kabaddi
6 Athletics 16 Kho Kho
7 Tennis 17 Chess
8 Badminton 18 Shooting
9 Wrestling 19 Boxing
10 Shuttle Badminton 20 Judo
4.0 The Sportsmen/Women seeking appointment in the Bank shall under go the
selection process to be conducted by the Bank.
4.1 On appointment the Sportsmen/Women will have to give an undertaking to the
effect that :
a) he/she will represent the Bank in sports etc., whenever called upon to do
so.
b) he/she will work in the Bank for a minimum period of 5 years.
c) he/she she will not represent any other club without prior permission of
the Bank.
II. Guidelines for Out-of-Turn Promotion of Outstanding Sportsmen/ Women
Employees :
With a view to encourage the sportsmen/women employees the scheme for out
-of- Turn promotion from Sub-staff to Clerical and Clerical to Officers cadre in
JMGS I and within the Officers cadre is proposed as follows :
1. Eligibility Criteria in the Sports events :
Should have won Gold Medal for the Country in an International Sports event/s
or
Should have represented the state at the National (Junior/Senior Nationals/
National Games) for 3 years.
or
Should have represented a Zonal level event with a medal winning performance.
or

561
 Should have played for 3 years in Ranji/ Deodhar/Irani/ Duleep trophy in case
of Cricket
2. Other eligibility criteria :
Players who have actually played on the field ONLY are eligible. Sports
performance after joining the services of the Bank shall be reckoned and the
employees with a minimum of two years of service only are eligible.
3. Only one out-of -turn promotion would be given in the entire service of the
Sportsmen/ Women Employee.
4. Sportsmen/Women Employee who on promotion to higher cadre will have to
give an undertaking to the effect that :
a) he/she will represent the Bank in sports etc., whenever called upon to do
so.
b) he/she will work in the Bank for a minimum period of 5 years after promotion.
c) he/she will not represent any other club without prior permission of the
Bank.
III. Guidelines for grant of Special Increments to Sportsmen/ Women Employees
for achieving excellence in National/ International Sports events :
1. It is proposed to award with out-of-turn increments for achieving ‘excellence’
in National/International sports events and for this purpose excellence would
mean: “winning of medal/award/prize for his/her having actually played National
or International event and for his/her individual merit in an event and not merely
on account of his/her participation in the event as a member of the winning
team.”
2. In the case of team events “excellence” would mean the sportsmen/women
winning a prize/ medal/award for his/her individual performance i.e., being
declared as ‘man of the match’, ‘man of the series’ or scoring a winning goal
etc., and not merely on account of his/her participation in the event as a passive
member of the winning team.
3. The total number of increments to be awarded to an individual shall not exceed
five in his/ her entire career.
4. An employee granted with special increments as above would continue to draw
the same till retirement and the same would count for the purpose of retirement
but not for pay fixation on promotion.

562
TRAINING
The Bank is periodically imparting the following training to the employees at the STC/
Zonal STCs.
Name of the Programme Duration Days
FOR CLERKS / SPL. ASSTS.
1. Induction 6 days
2. Marketing for front line staff 3 days
3. Credit & Documentation 4 days
4. Branch Banking 4 days
5. Product Awareness & Customer Service 3 days
6. Orientation to procedure 3 days
7. Core Banking Solutions 3 days
8. Awareness Programme 4 days
9. Personnel Development Programme 3 days
10. Pre-promotion Training for SC / ST 6 days
11. Transformation 2 days
12. Product Awareness & Professional Etiquette 3 days
13. Programme on Soft Skills with Etiquette,
Grooming & Communication 1 day
14. Programme for Retiring Employees 2 days
SUB - STAFF
1. Parichay 2 days
2. Excellence in Customer Service 2 days
3. Pre promotion Training 3 days
4. Transformation 2 days
5. Programme on Soft Skills with Prof. Etiquette,
Grooming & Communication 1 day
6. Programme for Retiring Employees 2 days
PTS
1. Workshop for Part time Sweepers 1 day
2. Programme for Retiring Employees 2 days

563
 CHAPTER - IX
OTHER SERVICE CONDITIONS

GUIDELINES ON TRANSFERS

Whereas Award Staff are transferable to any branch/office of the Bank within
the State/language area and whereas transfers of employees are effected depending
upon the overall needs of the Bank with reference to its business requirements and
administrative exigencies, the following broad guidelines will be followed, as far as
possible, with regard to the transfers and postings :

Rotational Transfers :

1 Such of the employees belonging to clerical cadre who complete a term of 4 to

5 years at a particular branch/office, will be considered for rotational transfer to
another branch/office. Such transfers will be made, as far as possible, to a
branch/office within the district or to a nearby branch/office in the adjacent/
nearby district/s.
2 Rotational transfers of employees are normally finalised and orders are issued
during March/April every year. Generally, a period of 15 days is allowed before
the employees are relieved on transfer except in the case of local postings.
3 However, the vacancies caused during the year on account of additional
sanctions, opening new branches, resignations, retirements etc., and postings
on appointment as Special Assistants and consequential vacancies thereof,
will be filled as far as possible by requests and in the absence of any requests
the same will be filled by transfers from the nearby branches.

Request Transfers:

4. All request transfer applications should be submitted as far as possible, by

20th February of each year; such applications will be acknowledged for
consideration, at the earliest opportunity available, subject however to the
conditions stipulated as under:
a) Request for transfer shall be normally considered only after the employee
puts in a minimum of 2 years of service at a place; this stipulation of
2 years will not be strictly made applicable in the case of married ladies.
b) In the case of employees who are transferred to a place of their choice on
request, subsequent request will be considered normally after a period of
3 years.
564
 c) Applications for transfers on compassionate grounds such as death,
serious illness in the family, etc. will be considered on priority basis at the
Management’s discretion.
5. Any request from an employee whose spouse is working in other Public Sector
undertaking or any other Company/Establishment, will be considered to the
place where her/his spouse is working as per the Government guidelines in the
matter.
6. In case both husband and wife are our employees, they will be posted to a
place where the Bank has more than one branch/office.
7. Number of request transfers shall be normally limited to 3 in the entire service
of an employee.
8. An employee who is aged 55 years and above will be transferred to a place of
his/her choice or to place nearer to the place of his/her choice.
9. The management agreed that there will not be any transfer of Award staff out of
the City/Town on account of computerisation of the branches and in places
where the bank does not have more than one branch, staff displaced if any,
may be considered for transfer as per the existing transfer guidelines on rotational
transfers.
10. The management also agreed that there would not be any retrenchment/transfer/
redeployment of Award Staff out of the existing city/town on account of installation
of ATMs and in places where the bank does not have more than one branch,
staff displaced if any, may be considered for transfer as per the existing transfer
guidelines on rotational transfers.

565
SPECIAL LEAVE/SPECIAL CASUAL LEAVE
[Source : HO Cir. No. 19/80]

In Case of Injuries on Duty

In case of injuries sustained by a workman in course of his duty besides full

reimbursement of medical cost and hospitalisation expenses over and above his
normal entitlement, he shall also be given special leave for the period of his absence
required for treatment.

For Exercising Franchise (Election)

During parliamentary or assembly elections, where the Central or State Govt.

have advised granting of special casual leave to its employees for exercising their
franchise, similar facility of special casual leave on the same terms and conditions
may be allowed to the employees of the Banks.

For Joining duties in civil defence/ Home Guards etc.

The absence of employees, who are called by the Civil Defence/Home Guard
Authorities to perform the duties/work as volunteers in civil defence and as home
guards during office hours, may be treated as on special leave provided a request to
that effect is made by the said authorities.

For Family Planning

a) 6 days special casual leave to male employees for undergoing sterilisation

(vasectomy operation)

b) 14 days special casual leave for female employees who undergo non-puperal
tubectomy operation.

c) One day special casual leave to female employees who had IDU insertions.

d) 7 days special casual leave to male employee whose wife undergoes nonpuperal
tubectomy operation, subject to the production of medical certificate from the
Doctor who has performed the operation, to the effect that the presence of the
employee is essential for the period of leave to look after the wife during her
convalescing after the operation.

e) An employee developing post-operative complication after sterilisation may be

granted special leave to the extent of the period for which he or she is hospitalised
for such post operative complications, subject to production of necessary
certificate from the concerned Hospital Authorities/ Authorised Medical Attendant.

566
f) An Employee is not entitled to special casual leave after maternity leave, if the
sterilisation operation/ recanalisation was done during the maternity leave.

For Blood Donation

a) One day special casual leave is to be granted for the day the employee donates
blood, subject to the production of a certificate from the medical officer of the
hospital where he has donated the blood.

b) If the employee donates blood after office hours, he is to be granted one day
special casual leave on the next day, if the next day does not happen to be
holiday or weekly off.

For Attending courts or enquiries

Special leave is granted to employee, who is summoned to attend courts or

departmental enquiries outside the Bank for giving evidence on behalf of the Bank.

For the period of accident while playing for the bank

Special leave is to be granted to employee who meets with an accident/sustains

injury while playing for the Bank in an official tournament or while representing in a
team at the State or National Level in any tournament for the period he is required to
remain absent from his duty due to injury sustained by him.

For non-attendance due to curfew

a) Where an employee was not able to attend the office on account of imposition
of curfew either at the place of residence or at the place of work, the absence
should be treated as special casual leave.
b) If the curfew was imposed only for a part of the working hours either at the place
of residence or at the place of work, the employee who attended office during
the non curfew part of working hours should be treated as having attended for
the full day and the absence of those employees who did not attend during the
non-curfew hours should be adjusted against their usual leave.
c) This special casual leave is provided only where it is physically impossible to
attend office. This leave is also granted when it is impossible to reach office
from curfew bound area which falls between the route from residence and office
of the employees and it is also not possible to reach office even avoiding such
route and the Government authorities have not permitted employees to travel
through curfew bound area.
d) Breakdown of public transport system or natural calamities or civil commotion
or any other cause beyond the control of the Bank.
567
 If the closure of the Bank is necessitated for reasons of natural calamities such
as fire, rains, deluge or civil disturbances such as riots or any other cause beyond
the control of the Bank, only appropriate leave including casual leave, but not
special leave, should be granted to bank employees in terms of paragraphs
511 of the Sastry Award.
e) Absence of employees due to bundh, morcha, strike, rail/rasta roko etc. organised
by various political/religious and other parties, unconnected with the banking
industry:
i) In all cases where the bundh etc., is supported, co-sponsored or actively
assisted by bank employees or their affiliated union/association, action
should be taken against employees who absent themselves from duty by
effecting ‘Wage cut’ on the basis of the principle ‘No work No pay’.

ii) In all cases where the bundh etc., is not supported/co-sponsored or actively
assisted by bank employees or their affiliated union/association if an
absenting employee give a letter stating that he was not a member of any
union/organisation which gave the call for the bundh etc., and he did not
participate in the bundh etc., but could not attend the office due to non-
availability/disruption of transport facilities, physical prevention or
obstruction or other legitimate reasons, his appropriate leave account may
be debited.

568
GRIEVANCES REDRESSAL COMMITTEE
[Source: H.O. Circular 307/90 H.O. Circular 374/98]

1. The Grievances Redressal Committee/Cell would be in addition to the existing

formal administrative channels available for grievance redressal.

2. Any workman aggrieved or not satisfied with the decision or action from the
Branch or Zonal Office or any other office or Head Office may refer the matter to
the grievance cell, for redressal.

3. All individual grievances of workmen in the matter of the interpretations of their

service conditions, excluding disciplinary matters & issues relating to collective
bargaining, come within the purview of the grievance cell. They are:

a) Scales of pay including fitment, increments and recovery of dues.

b) Allowance of all types viz., special allowance, D.A., H.R.A., officiating

allowance and other allowances.

c) Medical aid and hospitalisation expenses.

d) Leave matters

e) L.F.C.

f) T.A. and halting allowance.

g) Sanction/Disbursement of staff loans.

4. Grievance Cell consist of an officer from PAD, H.O. to coordinate the functioning
of the grievance machinery and to assist the Grievance Committee in its
functioning.

5. The Grievance Cell shall acknowledge the receipt of the grievance and shall
collect, wherever necessary, the relevant records, process the same and place
before the committee.

6. An employee has to forward his grievance in the prescribed format, to the

Grievance Cell. PAD., H.O., Mangalore, either directly (through proper channel)
or through the authority in respect of whose decision/action the grievance is
preferred. If the form is sent through the said authority, it shall forward the same
within 3 days from the date of receipt thereof, together with his comments thereon
and the relevant documents to the cell.

569
7. If a grievance arises out of an order given by a competent authority, the said
order shall be complied with before the workman concerned invokes the
procedure laid down for preferring his grievance to the cell.
8. The Grievance Redressal Committee shall consist of 6 representatives, 3 each
from the management and the recognised workmen Union viz., Corporation
Bank Employees’ Union.

9. The committee shall examine the issues relating to the grievance and make
their recommendations.

10. Minutes of the proceedings of the committee are recorded and signed by the
members of the committee.

11. Normally, the Grievance Committee meets once in a month. But in case of an
extraordinary circumstances, the committee may have more than one meeting
in a month.

570
ROTATION OF DUTIES AT BRANCHES
Source: Routine Procedure 47, BID Cir 18/78, BID Cir 10/83, H.O. Cir 274/86,
H.O. Cir 77/87, H.O. Cir 223/91,
H.O. Cir 46/92, H.O. Cir 127/95,
H.O. Cir 210/95, H.O. Cir 302/96

1 Duties of the employees are rotated at periodical intervals to provide adequate

work exposure to each and every one.
2 Rotation of duties are also aimed at preventing frauds.
3 Certain duties at branches attract special allowances and regular rotation of
department works ensure smooth and equal distribution of such allowance
amongst all eligible employees of the branch.
4 The duties of clerical staff like Departments on counter, Cash Dept., Operation
of Computers, Clearing section etc., are to be rotated once in four months.
5 Duties of Special Assistants & Officers are to be rotated once in a year.
6 It is stipulated that the duties of Clerical Staff and Supervisory Staff are not
rotated simultaneously, to ensure that there is no disruption in the smooth
functioning during the transition period due to the absence of continuity in
guidance in the department.
7 Duties of the probationary clerks are to be rotated from desk to desk during
their probationary period, to enable them to work in all the departments, under
the guidance of a senior clerk.
8 While rotating the duties of supervisory staff, it is to be noted that, in case of
joint key holders of the branch, who happen to be senior most officers in the
branch, there shall be no rotation of duties of joint custody unless they are
transferred out of the branch or replaced by officers senior to them.
9 During the first six months of the probationary period of Officers directly recruited,
the Branch Managers should ensure that these officers are rotated in key
Departments and they work under the guidance of senior officers to enable
them to get fully acquainted with various facts of branch operations.
10 Clerical duties attracting special allowance excluding officiating allowances,
should be entrusted based on the seniority of service of the employee at the
branch level.
11 A seniority list of all clerical employees reckoned from the respective date of
their joining duty at the branch should be maintained at all the branches.

571
12 No weightage for educational qualifications should be given for determining the
seniority as above.
13 Special allowance duties like Cash Dept. etc., can also be entrusted to Typist-
cum-clerks, provided the typing work is not disturbed.
14 As far as possible, duties attracting special allowance should not be entrusted
to probationers.
15 In the absence of any separate category of clerical staff employees to do such
duties, the Typist-cum-Clerks (including Hindi Typists) can be entrusted with
the special allowance duty of telex operation on rotation with other Clerks.
16 Clerical staff can forgo special allowance duties on their written unwillingness
towards the same. But such an action will forgo the special allowance.
17 The employees who are interested and have greater involvement in fields like
marketing consumer banking, credit follow up and other special functions can
be assigned with such duties to suit their aptitude and in case, such employees
are found to be effective and successful, they can be allowed to handle such
functions for longer duration also, instead of four months’ stipulation.
18 The details of the rotation of duties of all the staff members as effected from
time to time, should be noted in book No. 37 and this book should be maintained
upto date.

19 The prescribed yearly statement on rotation of duties should be submitted by

10th October every year to the concerned Zonal Office, detailing the duties
entrusted to the clerical and supervisory staff members during the period from
1st October to 30th September.
20 In the matter of effecting the temporary placements during leave, absence of
employees etc., the Manager of the branch has to take his decision, based on
the practice adopted at the respective branches.
21 Managers, while distributing works to the staff, must ensure best utilisation of
the available manpower for smooth functioning of the branch.
22 The last and foremost point is that the Department allocation must be handled
in such a way that it fosters a sense of cordiality and harmony amongst all the
employees.

572
MONTHLY STAFF MEETING AT THE BRANCHES

[Source : HO CIRCULAR NO.12/2009]

1.0 Meetings of Staff shall be held at all Branches and Offices every month. Notice
of meeting is to be given a week in advance with agenda.

2.0 The Monthly Staff Meeting as a forum of sharing the developments within the
banking industry in general and the bank in particular is found to be highly
effective to enable employees feel connected and important. It is said, the
better informed is the staff, the better decision they will make.

3.0 The Forum is also made use of in celebrating or sharing the joy of birthdays,
wedding anniversaries and success stories of staff and their family members.

4.0 By organizing such meetings, the staff members also get opportunity to involve
themselves in various activities such as preparing summary of circular
instructions issued by the Bank during the preceding month for presenting
them in the Meeting, to put forth suggestions to improve working and cost
reductions, to get intimate knowledge about process changes introduced by
the Bank, if any, new product and services etc. It is a learning experience for
all the staff members. Thus Staff Meetings provides the key to unlock the door
to self and team improvement and helps to bring about overall effectiveness in
the Branch/Unit performance.

5.0 Minutes of Staff meetings must be recorded and kept in a separate file at the
Branch/Office. This may be undertaken by the second line officer of the branch/
office. Copy of the minutes is to be sent to respective Zonal Offices.

6.0 The dates of such meetings are to be noted in the branch performance record.

7.0 The branch manager should take necessary follow-up action on the suggestions
received from the employees and the same is to be reported in the next meeting.

8.0 The Branches/Offices may also refer to HO Circulars bearing No.13/1994 dated
12/01/1994 and 494/2007 dated 30.06.2007 for details regarding the agenda,
process of conducting Staff Meetings, drawing of minutes and reporting system
etc. as the case be.

573
CUSTOMER SERVICE COMMITTEE
[Source: HO Cir No.687/2007]
Customer Service Committee is one of the important functional mechanisms of the
branches to oversee the level of service rendered by a branch to its clients and advise
the officials to improve the level of satisfaction of clients by suggesting ways and
means. Customers’ Committee is a catalytic agent in transforming the clan of “satisfied
customers” of a branch into “delighted ones”.
The various guidelines about formation and functioning of the Customer Service
Committee are furnished below:
Formation of Committee: Each branch, including specialised branch and each Zonal
office of the bank shall constitute the Customer Service Committee on 30th Sept.
every year. The committee shall be re-constituted every year. The Committee shall
consist of the following members.
Chairman: Head of the branch or the office or the Zone (permanent).
Convener: Person next to the Branch/Zonal head (permanent).
Members: One member from Officer to Senior Manager Cadre and two members
from clerical and Spl. Asst. Cadre (Rotational). One member from amongst customers
and one member from amomgst the Senior Citizens customer category.
Term of the Committee: The committee formed on 30th September of the year will
be from 1st of October of the year to 30th Sept. of the next year. Thereafter fresh
committee shall be constituted.
Reporting of Committee Formation: All the Branches shall inform their Zonal Offices
about the date of formation of the committee, with names, E.Nos. and designation of
the committee members.
Zonal Offices shall inform similar details of the Zonal CSC to CSD, H.O. Mangalore.
Periodicity of the meeting: All the Customer Service Committees must meet at
least once in a month without fail. The committees may meet more than a month to
discuss any particular urgent agenda of importance.
Notice of meeting: Every member of the committee must be given a notice of the
meeting with agenda at least 24 hours before the meeting.
Agenda of meeting: The purpose of the Customer Service Committee meeting is to
plan, implement and monitor various measures for improvement of customer
satisfaction in the office. The convener of the meeting may decide the agenda of the
meeting. The following matters may be included in the agenda.
i) Approval of minutes of the previous meeting.
ii) Monitoring of implementation of decisions taken in the previous meeting

574
iii) Discussion on complaints and suggestions received from clients subsequent to
the last meeting. This includes complaints/suggestions received from clients of
the branch at ZO/HO level and referred to the branch.
iv) Discussion about minutes of the ‘Customers Meet’ organised during the quarter.
v) Deficiencies pointed out in the inspection reports, Zonal Head’s branch visit
reports, surprise verification reports in the area of customer service.
vi) Findings of the internal and the external surveys on customer service and
customer satisfaction, communicated by the ZO/HO.
vii) Commendation letters received from customers on excellence in customer
service.
viii) Dissemination of information from circulars/letters/newsletters received from
ZO/ HO on customer service.
ix) Review of compliance of Goiporia Tarapore Committee recommendations in
the office/ branches.
x) Review branch of any codes of Bank’s commitment to customers.
xi) Review of infrastructure, amenities, assets for better customer satisfaction.
Expenses: Branches, Zonal Offices are permitted to incur expenditure for serving
refreshment to the committee members within the overall ceiling of 20/- per head.
Actual Conveyance expenses incurred by the member from customer and Senior
Citizen for attending the meeting may be reimbursed.
Maintenance of Records: A separate register should be maintained by all branches
and Zonal offices.
Reporting of meetings: Xerox copy of the minutes of monthly meeting of CSC should
be sent by the branches to the respective Zonal Office by 5th day of the following
month. Similarly the Zonal Offices should submit the copy of the minutes of monthly
meeting of the Zonal CSC to the Head Office by the 5th day of the following month.
A quarterly report giving the dates of Customer Service Committee Meetings
held in the branches during the quarter with details of action taken on the decisions
taken in these meetings should be sent by the branches to respective zonal offices
within 5 days after the close of the quarter, in the specified format.
Zonal offices should send similar quarterly reports to Head Office within 15
days after the close of the quarter. The Zonal Offices should give their observations
about implementation of decision arrived in the CSC Meeting in the branches. On the
basis of the above reports of the ZOs, CSD, HO., has to prepare a report and place it
before the Corporate Customer Service Committee every quarter.

575
CONSTITUTION OF OFFICIAL LANGUAGE IMPLEMENTATION
COMMITTEE AT BRANCHES/OFFICES
[Source : H.O. Circular 265/92, 181/99 & 260/2000]
An Official Language Implementation Committee is constituted at all the branches/
offices under ZOs and functional units at HO to review the progress achieved by the
Bank at various levels in the implementation of Official Language Policy of the
Government of India in the respective units. At HO, the OLIC shall have the General
Manager, under whom the OL Division is functioning, as the Chairman of the
Committee. The Senior Manager, OL Division shall be the Member Secretary. The
DGM, OLD, will be a permanent member. Two more executives preferably DGM
(PAD), DGM (HRD & Training) will be other members of the OLIC. For every meeting
of the OLIC at HO, two more DGMs/AGMs shall be invited as invitee member with
the approval of the Chairman of the Committee.
The Branch / Office/Divisional/Departmental Head shall be the ex-officio Chairman
and the Hindi Liaison Officer shall be the ex-officio Member Secretary of the committee.
The other members can be co-opted by the Chairman of the committee subject to the
following conditions :-
a) The maximum number of members in a committee shall not exceed 6
including the Chairman and the Member Secretary. However, at Zonal
Offices, the maximum number of members can be 8.
b) The quorum shall be the Chairman, the Member Secretary and half the number
of other members.
Convening the quarterly meetings of OLIC
All the branches & other offices including Currency Chests, STCs IIBD and Division /
Departments at Head Offices are advised to convene the quarterly meetings of OLIC.
Further guidelines in this regard are as follows :
a) The meeting should definitely be convened under the presidentship of the
Chairman of the committee.
b) Only one meeting is required to be convened during the first week of the month
following the quarters ending June, September, December and March.
c) The date of the meeting should be communicated in advance to the OL Section
of the respective Zonal Office or OL Division, HO, as the case may be.
d) The local branches/offices located in the area of a Zonal Office may once in a
year invite the Zonal Head and/or the OL Officer/Manager of the Zonal Office
for the meeting, subject to his/their convenience and availability.

576
e) Agenda items/notes are to be prepared in advance and should be forwarded to
the OL Sections of respective Zonal Office/OL Division, H.O. The review on
observations of quarterly progress reports, received from the Zonal Offices,
branch visit follow ups received from the Zonal Office, check lists from IAD
pertaining to OL implementation at branch/office received through Zonal Office
etc. are, inter alia, to be discussed in the meeting and remedial measures should
be taken and implemented to rectify the shortcomings pointed out in the review
reports.

f) For preparation of agenda items/notes, the branches/offices can seek assistance/

guidance from the OL Officer/Manager of the Zonal Office, the Division/
Department may consult the OL Division for guidance.

g) After each meeting a detailed minutes signed both by the chairman and the
Member Secretary of the committee should be sent to OL Section, ZO/OL
Division, HO within 7 days from the date of the meeting.

h) As per rules, the minutes is required to be prepared in bilingual (Hindi & English)
form. However, the branches/offices can prepare the minutes only in Hindi. But,
minutes shall not be prepared in English only.

Incurring Expenses in connection with the meeting of OLIC

The competent authority has approved extending the facility of incurring expenses in
connection with the meeting of OLIC as applicable in the case of staff meetings. The
following rates applicable in the case of staff meetings as communicated vide H.O.
Circular No. 102/2000 (Index No. 21.00/01/2000) dated 19th April 2000 shall be
applicable in this regard :

AREA EXPENDITURE PER HEAD

Branches/Offices located in Delhi, Mumbai, Calcutta, 25/-

Chennai, Ahmedabad, Bangalore & Hyderabad

Branches/Offices located in all other Urban Centres 20/-

Branches/Offices located in Semi-Urban & Rural 15/-

Centres

The above rates will be applicable to OLIC meetings in all the branches and other
offices including Zonal Offices/Currency Chests/STCs/IIBD and Divisions/Department
at Head Office.

577
CHIEF LIAISON OFFICER FOR SC/ST/PH/EX-SERVICEMEN EMPLOYEES
OF THE BANK
[Source: HO CIRCULAR NO.86/2011]

As per the Government of India guidelines an executive in the rank of a General

Manager from Corporate Office has to function as Chief Liaison Officer for SC/ST
employees of the Bank. The Chief Liaison Officer, assisted by an SC/ST Cell, interalia
ensures due compliance of the orders and instructions pertaining to the reservation
and other benefits admissible to SC/ ST employees and takes steps for prompt disposal
of the complaints/ grievances if any, of the SC/ ST employees. He would also be the
Liaison Officer for Physically Handicapped and Ex-servicemen employees.

Accordingly at present Sri. …………………………………….., General Manager,

Corporate Office, has been designated as the Chief Liaison Officer for SC/ST/
Physically Handicapped/ Ex-Servicemen employees of the Bank, by the Competent
Authority.

CHIEF LIAISON OFFICER FOR OBC/MINORITY COMMUNITY

EMPLOYEES OF THE BANK
[Source : HO CIRCULAR NO.87/2011]

As per the Government of India guidelines an executive in the rank of a General

Manager from Corporate Office has to function as Chief Liaison Officer for OBC
employees of the Bank. The Chief Liaison Officer, interalia ensures due compliance
of the orders and instructions pertaining to the reservation and other benefits admissible
to OBC employees and takes steps for prompt disposal of the complaints/ grievances
if any, of the OBC employees. He would also be the Liaison Officer for employees
belonging to Minority Community.

Accordingly one of the General Managers at Corporate Office, has been designated
as the Chief Liaison Officer for OBC/ Minority community employees of the Bank.

578
FELICITATION ON RETIREMENT
[Source H.R.D. Circular 48/83, H.O. Circular 292/92 & 16/2013]

1 Whenever an employee retires from the service, a small farewell function may
be arranged at the respective branches/offices on the date of his relief.

2 The concerned zonal Manager, wherever possible, would participate at such

functions.

3 The terminal benefits like P.F., Gratuity due to such employees be paid to them
at the function.
4 PAD Head Office will furnish the complete biodata of the employee to the branch/
office to enable them to felicitate the outgoing employee in the proper perspective.
5 At the farewell party arranged to felicitate such employee, they may be garlanded
and light refreshments may be served to the employees working in the said
branch/office.
6 The retiring employee shall be awarded with a memento costing 7,500/-
7 The above expenditure incurred is to be debited to Misc. Expenses A/c.
8 The Branch/Office should send a brief report on conclusion of such functions to
PAD, H.O. Mangalore.

SPORTS COUNCIL OF THE BANK

[Source: H.O. Circular 38/39 Dated 24-01-1989]
1 Sports Council functions from the Head Office of the Bank, for encouraging
sports/cultural/recreational activities amongst the employees and to extend
financial assistance to sports activities in the bank.
2 The management of the sports council is vested with a committee of 4 executives/
officers duly nominated by the Chairman and Managing Director of the Bank.
3 Records pertaining to the conduct of the meetings etc., will be maintained by
the Manager, M.P.P.D of PAD, who will be the member secretary of the council.
4 The objectives of the Sports Council are as under:
a) To encourage sports, cultural/literary/recreational activities among all the
employees of the bank.
b) To advice in respect of policy matters relating to recruitment of sportsmen/
women and the facilities extended to them.

579
 c) Receiving of applications from the sportsmen/women for employment in
the bank under the sports quota and its scrutiny.
d) Considering the applications/requests from the employees for establishing
sports/recreational clubs.
e) Recommending grants to be given to such sports/recreational clubs.
f) Formulating policies with regard to grant of time-off for practice, special
leave, T.A./H.A., personal sports gear etc., to the sportsmen/women
employees in the bank.
g) To advise in the matter of promotion of games/sports in the rural areas.
h) To advise in the matter of organising sports events particularly in rural
areas and instituting rolling shields/prizes to encourage rural sports.
i) Suggesting ways and means to develop/promote sports/games
recreational/cultural activities in rural areas.
j) To sponsor candidates for the sports events/competitions held by the
Bank’s Sports Board and organise/associate with any sports meet under
the auspices of the Bank’s Sports Board.
k) To draw up specific plans for implementation of suggestions made by the
Dept. of Youth Affairs and Sports, Govt. of India, from time to time for
encouragement of sports/games.
l) Any other related matters for development of sports/games in the bank.

BRINGING EXTERNAL PRESSURE ON SERVICE CONDITIONS

[Source Cir. No. 25/2005, 06/2006, 012/2007, 1099/2008,
207/2010, 413/2011 & 644/2012]

The Employees may prefer their grievances in the matters of their transfers, postings,
disciplinary matter, promotions and various other service conditions to the appropriate
authorities in the Bank. However, employees are resorting to bring outside pressure
including political, in furtherance of their cause, on matters relating to transfers and
other service conditions.

Employees are, therefore, exhorted not to bring any outside pressure, including political
pressure on the Executives/Top Management seeking undue favours in matters
relating to transfers, promotions and other service conditions and such action on the
part of the employees will be viewed seriously by the Bank and such intereference
will not in any way, weigh in favour of the employees concerned.
580
GIST OF FACILITIES/RELIEF AVAILABLE TO AWARD STAFF ON
RETIREMENT/ AVAILABLE TO SPOUSE/LEGAL HEIRS OF AWARD
STAFF WHO DIE IN HARNESS.
Nature of Facility/Relief Entitlement Authority for disbursement/
sanction to be approached
A. ON RETIREMENT
1. Provident Fund Accumulated The Secretary, Staff Provident Fund,
balance Head Office, Mangalore.
2. Pension including As per Pension The Asst. General Manger, Pension Fund,
Commutation of Pension Regulations Corporation Bank, Head Office, Mangalore
(only in case of pension optees)
3. Gratuity As per Gratuity The Secretary, Corporation Bank, Gratuity
Rules Fund, Head Office, Mangalore.
4. Leave Encashment As per relevant The Asst. General Manager, PAD,
(Subject to workman having rules Corporation Bank, Head Office, Mangalore
privilege Leave to his credit)
5. T.A. For shifting to place of As per relevant The General Manager, PAD, TA rules
settlement Corporation Bank, Head Office, Mangalore
6. Reimbursement of 2,50,000 The Senior Manager, Staff Welfare Section
Hospitalisation Expenses PAD, Corporation Bank, Head Office, M’lore
(for major operations for
specified illness) for the retired
employee and spouse together
for entire life
7. Reimbursement of Hosptialisation 12,000 per — do —
expenses for retired employee financial year
and spouse together
8. Reimbursement of Hospitalisation 3,500 per — do —
expenses of retired employees/ financial year
spouse on declaration basis out
of the above ceiling of 12,000/-
9. Employees Savings Linked Accumulated The Asst. General Manager PAD
Insurance Scheme with interest Savings together Corporation Bank, Head Office, Mangalore
10. Group Term Insurance Scheme
11. Holiday Home Facility
B. DEATH
1. All facilities/Relief mentioned
under [A] 1, 2, 3, 4 (Family
Pension Only) above PLUS
2. Death Relief from Staff Welfare 1,00,000 The Senior Manager, Staff Welfare Section,
Fund ( 10,000 will be released PAD, Corporation Bank, Head Office, M’lore.
immediately to be adjusted from
final payment)

581
 Nature of Facility/Relief Entitlement Authority for disbursement/
sanction to be approached
3. a) Employees Savings Linked 2,25,000 Clerical The Asst. General Manager, PAD
Insurance Scheme 1,50,000 Sub-staff Corporation Bank, Head Office, Mangalore.
75,000 PTS
(b) Group Term Insurance Scheme 3,00,000
4. Corporation Bank Employees 56,000 — do —
Voluntary Contribution Scheme (Approx.)
5. Corp. Jeevan Suraksha 1,00,000 The Branch Manager with whom the account
(If the scheme is opted) is debited with policy premium annually
6. Corp Jeevan Griha Raksha To the extent of Asst. General Manager, PAD, H.O. Mangalore.
(If the scheme is opted) Liabilities outstand-
ing in SHL/SSHL/
ESHL/ESHLN/NSHL
7. Corporation Bank Employees’ 1,00,000 The Secretary, Corporation Bank Employees’
Union Welfare Fund (only if the Union Welfare Fund, Mangalore.
workman is a member of the fund)
8. Ex-gratia in lieu of compassionate Maximum Request to be made to Chairman & Managing
appointment (if eligible as 7,00,000-Clerks Director within six months from the date of death
per norms ) 6,00,000-Sub-staff by spouse/son/daughter.
9. Educational Grant to Children of The Scheme will cover cases where appointment
Employees who die in harness is not given to the spouse upto 2 children in a family.
i) Upto SSLC 2500 p.a.
ii) PUC 3000 p.a
iii) Graduation/ 4000 p.a
Post Graduation
iv) Graduation PG in specified
professional courses as in
Scholarship Scheme 5500 p.a
The Senior Manager, Staff Welfare Fund, PAD,
H..O. Mangalore.
10. Expenses incurred on As per deceased In case the workman dies while undergoing
Hospitalisation workman’s entitle- treatment in hospital and the hospitalisation
ment expenses to be claimed by the nominee of
the workman (concerned ZO/HO)
11. Insurance Policy Claims / Other To be taken up with respective Insurance Companies.
Investment, if applicable Eg. LIC, ICICI Prudential etc. UTI (In case of ULIP)
Post Office Life Insurance etc.
B-1. ACCIDENTAL DEATH
1. All facilities under B PLUS
2. Personal Accident 2.00 lakh Clerical Claim to be submitted to The Asst. General
Insurance Scheme 1.00 lakh Manager, Corporation Bank, PAD, Head Office,
Sub-staff & PTS Mangalore.
3. Insurance under Corp 1,00,000 The Asst. General Manager, Cards Division,
Convenience Debit Card Head Office, Mangalore
(if the workman is a card
holder only)

582
PREVENTIVE VIGILANCE LEAVE(PVL)-RISK CONTAINMENT MEASURE
[SOURCE : HO CIRCULAR NO.751/2011 & 45/2013]

Dr. N.L. Mitra Committee Report on Legal Aspects of Bank Frauds, recommended,
as one of the preventive measures, that Bank’s should insist their officials to go on
leave periodically.

This risk containment measure being followed by organisations to counter/

pre-empt frauds, is to make employees step in to the shoes of their colleague who
goes on leave, which would help quicker detection of fraud or detection of instance of
undesirable banking transactions, if any, put through by the officials who are on leave,
which are prejudicial to the Bank’s interest. Further, availing of continuous leave for
10 days in a year also helps individual to overcome fatigue / monotony and rejuvenates
/ recuperates one physically as well as mentally, besides helping psychological well
being. Therefore, it is essential to encourage all the employees to avail PVL for
10 days at a stretch in a year, in the interest of the organisation as well as their own
interest.

As per the policy all the permanent employees are required to avail a continuous
minimum period of 10 days Privilege or Sick Leave in a calendar year. The
operational guidelines shall be implemented from 01.01.2012. It is further provided
that if any employee do not avail PVL for any reason, such employee be deputed to
any other nearby Branch / Office of the Bank at least for a continuous period of 10
days. Even if an employee is deputed for a training program which keeps him away
from work for a continuous period of 10 days, the same would be sufficient for the
purpose.

OFFICIATING ALLOWANCE TO SWO & SPECIAL ASSISTANTS

01. When a clerk is asked to officiate temporarily, he will discharge only the duties
stipulated for Special Assistant, irrespective of the fact whether he is working in
place of a Special Assistant or an officer. Therefore, he is entitled for special
allowance applicable to the post of Special Assistants, on pro-rata basis.

02. When a Special Assistant is entrusted with officiating duties, he will discharge
the duties of an Officer. In such cases, he is entitled for officiating allowance as
under:
a) Where the basic pay of the junior most Officer working in the branch at the
relevant time, exceeds the basic pay of the Special Assistant, then 15% of

583
 the basic pay of the Special Assistant or the difference between the two
basic pays, whichever is less, with a minimum of 72% of basic pay of the
Special Assistant.
b) Where the basic pay of the junior most officer working in the branch at the
relevant time is equal to or less than that of the Special Assistant, then
72% of the basic pay of the Special Assistant.
Ref: 01. Clause 5.8 of First B.P.S. DT. 19.10.1966
02. H.O. Circular 401/91 DT. 04.11.1991

Determination of seniority for officiating

03. Branches have to maintain a seniority list of all clerical cadre employees.

04. While determining the seniority, the date of joining the services of the Bank in
case of direct recruitees and the date of promotion to clerical cadre in case of
sub-staff promotees have to be reckoned, only completed years of service as
on 1st January of each year shall be taken into account.

05. The notional weightage for different educational qualifications to be added while
computing seniority list are as follows:

a) C.A.I.I.B. Part I Examination .......... 1 Year

b) C.A.I.I.B. Part II Examination ......... 2 Years
c) First Graduation/N.D.Com ......... 2 Years
d) Double/Post Graduation ......... 1 Year

06. For the purpose of adding notional weightage, educational qualifications as on

1st January of each year are to be taken into account.

Ref: 01. H.O. Circular 478/87 Dt. 20.10.1987

02. H.O. Circular 287/92 24.08.1992

IDENTITY CARDS TO EMPLOYEES

01. In terms of the recommendations of the Working Group on Customer Service in
Banks, all employees of the bank are supplied with Identity Cards.

02. These cards indicate name of the employee, his file number, his colour
photograph and his signature, attested by the office/executive in charge of the
branch/office.

584
03. Identity cards are issued in different colours for each cadre, as under:

FOR EXECUTIVES ...... PURPLE

FOR OFFICERS ...... BROWN
FOR CLERKS ...... PINK
FOR SUB-STAFF ...... GREEN
04. When an employee is promoted to a higher cadre, a fresh Identity Card will be
supplied as applicable to that cadre.
05. Identity Cards facilitate easy identification of employees while meeting various
Government Departments, other banks and various agencies in connection with
official work. They also prove one’s identity especially during riots, civil
commotions and facilitate movement of employees to attend office in curfew
bound areas when permission is granted by the Government / Police authorities.
06. All employees are expected to carry their identity cards while on duty.
07. In case of Identity Card supplied by the bank is lost, the concerned employee
has to bear the cost of the duplicate card.
Ref: 01. H.O. Circular 303/87 DT 17.07.1987
02. H.O. Circular 26/91 DT 14.01.1991
03. H.O. Circular 406/91 DT 31.10.1991

CHECK-OFF FACILITY
01. Facility of check-off for deduction of membership subscription to Unions and
their Welfare Funds is extended to all registered trade unions, which are of all
India standing, irrespective of the status enjoyed by them, provided a request
for the same is given by such unions.
02. The letter of authority for the check off shall be submitted by the employees
concerned authorising the bank to deduct the subscription from their salary and
the same shall be lodged with the concerned branch/office.
03. Such letter of authority shall be submitted by the employees concerned, in
triplicate, to the manager of the concerned branch/office.
04. The subscription deduction will commence in the month in which the letter of
authority is filed provided such filing of the letter of authority is done on or before
15th of the said month. Deductions in other cases would commence from the
succeeding month.
585
05. Such monthly membership subscription would be discontinued, wherever the
letter of authority is revoked by an employee, in writing.
06. The deduction under check-off facility will not be effected from the subsistence
allowance payable to an employee placed under suspension.
07. The branch/office on receipt of authority letter has to forward a copy each of the
letter of authority to the salary bill preparation centre (HRMS H.O. Mangalore)
and to the office of the union mentioned in the letter of authority, while retaining
the third copy with them.
08. In the case of employees working in H.O/Z.O./lead district offices, the letter of
authority shall be submitted to the departmental head for onward transmission
to the concerned authorities.
09. Whenever an employee is transferred from one branch/office, the letter of
authority relating to the same shall be forwarded to the branch/office, where he/
she is transferred.
Ref: 01. Personnel Dept. Cir 90/82 DT 17-12-1982
02. H.O. Circular 414/88 DT 23-11-1988
03. H.O. Circular 68/90 DT 21-02-1990
04. H.O. Circular 91/90 DT 20-03-190

BONUS
In terms of the provisions of the Payment of Bonus Act, 1965 (as amended from time
to time), in our Bank Bonus @ 20% of the salary/wage earned during the accounting
year has been paid to the eligible employees consecutively for three Accounting
Years.

I. Eligible employees

a) Only those employees whose salary/wage does not exceed 10,000/- p.m. are
eligible for payment of bonus.

b) An employee’s salary/wage will have to be taken into account on a month-to-

month basis. As a result, for those months in the ‘accounting year’ in which an
employee’s salary/wage was 10,000/- p.m. or less, he would be treated as an
eligible employee and for those months in which his salary/wage exceeded
10,000/- limit, he would not be regarded as an eligible employee for those
months.

586
c) For determining the eligibility of an employee for bonus, salary/wage payable to
him in a month should be taken into account. In other words, the salary/wage
he would have been paid, had he worked on all the working days of the month
should be considered and not the actual salary/wage paid to the employee.

d) All Award Staff employees including Probationers, temporary employees, Part-

time employees, who are eligible to receive bonus as per the guidelines laid
down in this Memorandum, shall be paid the eligible bonus amount provided
they have worked in the Bank for not less than 30 working days in the ‘accounting
year’. The minimum requirement of 30 working days for eligibility need not be
continuous. In other words, whether the service is continuous or intermittent, if
an employee has worked for 30 days or more in the ‘accounting year’, he would
be eligible for bonus, if he is otherwise eligible.

e) Employees who have been appointed by the Bank on contract basis directly,
are also eligible for payment of Bonus.

f) Those persons who have been engaged by the Bank on contract basis through
a contractor, are not eligible for bonus.

g) The persons engaged in toilet maintenance are also eligible for payment of
Bonus.

Ii. Salary/Wage:

The components of Salary/Wages for computation of Bonus payable would be

as under:

a) Basic Pay

b) Dearness Allowance

c) City Compensatory Allowance

d) Special Pay

III. a. Ceiling on salary / Wage ranking for bonus payment:

Salary/wage ranking for bonus payment shall not exceed 3,500/- p.m.

i. Thus, for employees drawing wages of 3,501/- upto 10,000/- p.m.,

bonus amount will be calculated as if they were drawing 3,500/- p.m.
only. For those employees whose wages are less than 3,500/- per
month, actual wage is to be reckoned for bonus payment.

587
 ii. The maximum bonus payable to any employee for the accounting year
shall not exceed 8,400.00 i.e., 20% of 42,000/-.

B. Proportionate reduction of bonus in certain cases:

The minimum bonus payable to eligible employees is 100/-.

Branches/Offices may note that the minimum bonus of 100/- is payable to an

employee only if he has worked on all the working days in the accounting year. Where
an employee has not worked for all the working days in the accounting year, the
minimum bonus of 100/- as aforesaid, if such amount is higher than 8.33% of his
salary/wage, for the days he has worked in the accounting year shall be proportionately
reduced.

The computation in such cases will be made as follows:

No. of days the employee has worked

100/- x
No. of working days of the branch in the accounting year.

Note:1. Where a Branch was opened during the accounting year the total number
of working days of that branch for the purpose of calculating proportionate
amount of bonus should be notionally taken as that of any other branch in
the same State which was in existence as on the first day of the accounting
year.

2. For the purpose of computation of number of days worked by an employee

during the accounting year, he shall be deemed to have worked on the
days on which he has been on leave with salary/wage.

3. If an employee drawing a salary of more than 3,500/- p.m., avails leave

on loss of salary or where wages are deducted on account of participation
in strike, etc., adjustments are to be made from the total salary drawn in
the particular month and no proportionate deduction be made from the
ceiling amount of salary of 3,500/- p.m.

IV. Temporary / Part-time employees:

i. Temporary / Part-time employees of the Bank as stated in paragraph I

above will also be eligible for the bonus at the same rate of 20% of the
wages earned by such employees during the accounting year provided
they have worked in the Bank for not less than 30 working days in the
accounting year.

ii. Proportionate deduction to be made:

588
 Where a temporary / part-time employee who is drawing less than
100/- p.m has not worked on all the working days in the accounting year
minimum bonus of 100/- should be proportionately reduced as explained
in the paragraph III(b) above.

V. Disqualification for payment of bonus:

i. No bonus shall be paid to an employee, who has been dismissed from the
service of the Bank for:

(a) Fraud or

(b) Riotous or violent behaviour while on the premises of the

establishment or

(c) Theft, misappropriation or sabotage of any property of the

establishment.

ii. Employees under suspension belonging to any category shall not be eligible
for bonus during the period for which they were under suspension during
the accounting year. In cases, where the suspension has been revoked
with full wages for the period of suspension, such employees are eligible
for bonus for the period of suspension.

VI. i) In the case of eligible permanent employees who have retired/resigned/

expired or whose services have been otherwise terminated during the
accounting year (except the cases mentioned in Paragraph V above)
the branches/offices, must send the particulars of the salary and the
bonus payable to the respective Zonal Offices for verification and onward
transmission to this office. The permanent/last known address of such
employees and also the claim application for bonus, if any, received are
to be forwarded to the Zonal Office along with the salary particulars
immediately. The Zonal Office in turn must ensure that the salary particulars
are verified immediately and all papers connected with the same are sent
to HeadHe office, for effecting the payment from PAD, Head Office.

ii) In the case of eligible temporary employees who had worked during the
accounting year, the branches/offices, shall send the particulars of salary
and bonus payable, to the respective Zonal Offices for verification. The
Zonal Offices shall verify the same and advise the branches/offices to pay
the bonus and if necessary to remit the amount of bonus minus the money
order commission by means of a money order to the permanent/last known

589
 address of the employee before the expiry of the stipulated period. The
Money Order, if returned undelivered, an endorsement to this effect is to
be made against the name of the employee in the form ‘C’ Register and
the M.O. form is to be preserved and made available for inspection by the
Labour Authorities and the amount so returned should be held in
Sundry Creditors Account at the branch furnishing the full particulars
such as name and address of the employee, money order commission
incurred, the net amount, etc., under advice to this Office.

VII. Deduction of Income Tax:

Appropriate amount must be deducted from the amount of bonus towards income tax
in all cases where total salary inclusive of bonus exceed the minimum taxable limit.
Amount of income tax should be calculated to the nearest rupee. The total amount of
tax so deducted should be remitted to the appropriate authorities.

PRESENTATION AND ENFORCEMENT OF THE RIGHT TO GENDER

QUALITY OF WORKING WOMEN
[SOURCE : HO CIRCULAR NO.87/1998]

As per the direction given by the Hon’ble Supreme Court in the judgement dated
14th August 1997 in one of the Public Interest Litigations (PIL) Writ Petition (Criminal)
it is obligatory for every employer to provide for specific protection of women from
sexual harassment in the workplace.

In the absence of a suitable legislation/conduct rules in the matter, the following

directions have been issued in accordance with the judgement of the Hon’ble Supreme
Court in the above case, is binding and enforceable in law:

(i) Duty of the Executives/Branch Managers/Officers-in-charge in work places:

It shall be the duty of Executives/Branch Managers/Officer-in-charge of

Branches/Offices to prevent or deter the commission of acts of sexual
harassment and to provide the procedures for the resolution, settlement or
prosecution of acts of sexual harassment by taking all requires steps.

(ii) Definition of Sexual Harrassment

For this purpose, sexual harrassment includes such unwelcome sexually

determined behavior (whether directly or by implication) as:

590
 a) physical contact and advances;
b) a demand or request for sexual favours ;
c) sexually coloured remarks ;
d) showing pornography ; and
e) any other unwelcome physical, verbal or non-verbal conduct of sexual
nature.

Whether any of these acts is committed in circumstances whereunder, the victim

of such conduct has a reasonable apprehension that in relation to the victims
employment or work whether she is drawing salary, or honorarium or whether
the services are voluntary, such conduct can be humiliating and may constitute
a health and safety problem. It is discriminatory for instance when the women
has reasonable grounds to believe that her objection would disadvantage her in
connection with her employment or work including recruitment or promotion or
when it creates a hostile work environment. Adverse consequences might be
visited if the victim does not consent to the conduct in question or raises any
objection thereto.

(iii) Preventive Steps:

All Executives/Branch Managers/Officers-in-charge of offices/branches will take

appropriate steps to prevent sexual harrassment. Without prejudice to the
generality of this obligation they should take the following steps:

a) Express prohibition of sexual harrassment as defined above at the work

place should be notified, published and circulated in appropriate ways.

b) Appropriate work conditions should be provided in respect of work, leisure,

health and hygiene to further ensure that there is no hostile environment
towards women at work places and no woman employee should have
reasonable grounds to believe that she is disadvantages in connection
with her employment.

(iv) Criminal Proceedings:

Where such conduct amounts to a specific offence under the Indian Penal Code
or any other law the Bank will initiate action in accordance with law by making a
complaint with the appropriate authority.

591
(v) Disciplinary Action:

Appropriate disciplinary action will be initiated by the bank in accordance with

these guidelines.

(vi) Complaint Mechanism:

Whether or not such conduct constitutes an offence under law or an instance of

sexual harrassment within the meaning of clause (ii) above, if a woman employee
is sexually harassed, she should report the matter immediately to her reporting
officer or to the Regional Head or to the Assistant General Manager, PAD,
Head Office as the case may be.

In this regard, it is advised that as soon as complaint on sexual harassment is

received, the Regional Head (in the case of offices/Branches in the Region)
and Asst. General Manger, PAD (in the case of Head Office) shall constitute a
committee consisting of 3 members, 2 of whom are lady members, one each
from the Recognised Officers’ Organisation and Employees’ Union and the
Manager, Personnel/Personnel Officer. The Committee shall hear the
complainant and collect such other details considered necessary and submit a
report as expeditiously as possible.

(vii) Employees’ initiative:

Employees would be allowed to raise issues of sexual harassment at employees’

meeting and in other appropriate forum including employer-employee meetings.

(viii) Third Party Harassment

Where sexual harassment occurs as a result of an act or omission by any third

party or outsider, the employer and the person in charge will take all steps
necessary and reasonable to assist the affected person in terms of support and
preventive action.

(ix) These guidelines will not prejudice any rights available under the Protection of
Human Rights Act, 1993.

Complaints relating to sexual harassment of women at the work place, if any

may be directly addressed and sent to the General Manager, PAD., H.O.
Mangalore. A committee has been constituted at Head Office to dispose of the
grievances in the matter.

592
CASH REMITTANCE ORDERS ON ESCORTS, QUANTUM OF CASH AND
MODE OF TRANSPORT
[SOURCE : HO CIRCULAR NO.929/2008]

1. Quantum of cash and escorts

The quantum of cash and the strength of escorts for cash remittance are given
hereunder. The remittances to be made by our Bank’s staff can be local or outstation,
but it should be completed on the same day.

Sl. No. Limits of Cash Escorts No. of staff

Remittance

All Zones

a) Upto 2 lakhs An officer or a clerk (singly) 1

b) Above 2 lakhs upto An officer/clerk and a sub-staff 2

20 lakhs

c) Above 20 lakhs upto An officer/special assistant/clerk and 3

50 lakhs a sub-staff with one armed guard

d) Above 50 lakhs upto An officer and a sub-staff with two 4

5 crores armed guards in a cash van

e) Above 50 lakhs upto An officer with sub-staff and armed 2+

5 crores (Inter-state police guards in a cash van police guards
movement of cash)

f) All moves above An officer with sub-staff and armed 2+

5 crores police guards in a cash van police guards

NOTE: 1.1 Confirmed Officer, clerk and sub-staff will only be detailed as cash
escorts. Part-time sweeper will not be detailed for remittance duties.
In case sub-staff is not available, an additional staff can be taken.

1.2 Police escorts are required for all overnight remittances irrespective
of quantum of cash.

593
2. Criteria for remittance

2.1 Mode of transport (same day of remittance) :

Police van or own/hired cash van or taxi or Bank’s car Local and outstation
in that order of preference. remittance

Public transport like bus and train may also be used. Local and outstation
But train is preferable to bus. Remittance by bus be remittance
made less frequently and that too for as low an amount
as possible

Rural branches may remit cash by 2 wheeler upto Upto 30 kms. one way
Rs.2.00 lakhs as per the following conditions :- (along main/busy roads)
a) Branches are rural based.
b) The two wheeler used is a minimum 100 cc
motorised vehicle.
c) Enroute, there should be adequate facility
available for repairs of motorised vehicles
d) The route is inhabited by villages/hamlets.
e) The vehicle is having proper anchoring and
locking facilities for the cash box.
f) Irrespective of the amount carried, an escort
should invariably accompany the cash carrier.

Personal cars of the Branch Managers may be used Local and outstation
for carrying cash, provided adequate escort other than remittance
the person driving the car is taken and the cash box
is chained to the body of the car. Reimbursement will
be as per norms prescribed by PAD. Branch
Managers are not permitted to drive.

Remittance by train -
a) If cash is being transported by train, the seats Local and outstation
which are farthest away from the door should be remittance
occupied.
b) Police escorts are required for overnight journey
irrespective of the quantum of cash.

594
 c) If cash remittances by train are a regular
feature, different trains should be used on
different days, if they are available during the
day.
d) Containers/boxes are to be chained to the
seat and escorts vigilant throughout.

Under some special circumstances cash may be Only same day of remittance
taken by air, subject to prior approval from General subject to availability of armed
Manager (PAD) through Security Division, Head escorts at either end other
Office than the cash carrier.

2.2 Rs.50.00 lakhs and above, should be transported only in Bank’s cash van/hired
cash van as per approved design.

2.3 The cash box should be of steel and it should be chained to the body of the
vehicle in which the cash is being carried. For small amounts upto Rs.2.00
(two) lakhs to be carried in 2 wheeler or on foot, moulded brief case may be
used, but this brief case is to be chained to 2 wheeler while on the move. Foot
movement should be resorted to only when distance is walkable i.e., 100 meters
or less.

2.4 The escorts/armed guards shall always remain with the cash box as safety of
the cash is their full responsibility till the cash is handed over to the receiving
branch/currency chest.

2.5 All local cash remittances to the currency chest should be completed within the
timings prescribed by the currency chest and to the branches well before closing
hours of the branch. In case due to exigency this becomes difficult, then the
cash should be lodged in one of our own branches having a strong room, located
nearby. If our branch is not located nearby then the currency chest should help
the escort party by accepting the remittance as “Late cash” and account for it
the next day. In the event of neither the currency chest nor our branch being
available nearby, the escort party should go to the nearest police station and
remain there till next morning. Cash will remain in the custody of the escort
party at all times.

595
 TERMINAL BENEFITS TO WORKMEN EMPLOYEES
(A) Effect of punishment :
SL EXIT MODE PF OWN PF BANK’S PENSION GRATUITY LEAVE
NO. CONTRIBUTION CONTRIBUTION ENCASHMENT

01 DISMISSAL YES NO * NO * YES * NO

02 COMPULSORY YES NO * YES YES * NO
RETIREMENT (Min 2/3rd & Max Full)

03 REMOVAL FROM
SERVICE YES NO * NO * YES * NO
04 DISCHARGE YES NO * NO * YES * NO
05 VOLUNTARY
CESSASATION YES YES YES YES * NO
06 TERMINATION YES NO * NO * YES * NO

596
(B) Exit modes other than on punishment :

07 SUPERANNUATION YES YES YES YES * YES

(Max 240 Days)

08 RESIGNATION YES YES -NA- # YES * YES

(1/2 of PL @ credit –
Max 120 days)

09 VOLUNTARY YES -NA- # YES YES** YES

RETIREMENT (Max 240 Days)

10 DEATH WHILE IN YES YES YES ** YES *** YES

SERVICE

YES : Eligible, NO : Not Eligible Turn over for explanations.

 PF-Bank’s Contribution : Only in case of Non-Pension optees.
* Loss to the Bank, if quantified, can be recovered.
# Voluntary Retirement Scheme is not available to Non-Pension optees.
Pension : Only in case of Pension optees.
- Appellate Auhority can consider sanction of Compassionate Allowance – Max
2/3rd.
# Under Pension Scheme, employees can exit under VRS and not by resignation.
** Eligible for Family Pension.
Gratuity : - As per Award, gratuity cannot be forfeited. But, if there is any loss to the Bank
on account of the misconduct, the loss, if quantified, can be recovered

597
from gratuity payable.
- As per Act,gratuity can be forfeited for termination of service due to riotous or
disorderly
conduct, violence or moral turptitude.
* After 5 years but less than 10 years service, payable as per Act.
After 10 years service, payable, as per Act or Award, whichever is higher.
** Payable, as per Act or Award, whichever is higher.
*** Notional superannuation date is taken for service and payable as per Act or
Award, whichever is higher.
 CHAPTER - X
MISCELLANEOUS

RECOGNITION TO CORPORATION BANK EMPLOYEES’ UNION

[Source: Chairman’s Cir. 6/75 dt. 28.08.1975]

1 Both the parties agree to abide by the Code of Discipline in Industry as formulated
and laid down at the Indian Labour conference known as the Tripartite
Agreement, a true copy whereof is annexed hereto and marked as Annexure
‘A’.
2 The Bank hereby recognises with immediate effect the Union, viz., Corporation
Bank Employees’ Union (Regd. No. 1574) as the majority/ representative Union
and the sole bargaining agent for the Award staff employee in the Bank.
3 It is agreed that if a Union of workers in a particular branch/centre has a
membership of 50 per cent or more of the workers of that branch/centre, it will
have the right to deal with matters of purely local interest such as, for instance,
the handling of grievances pertaining to its own members. All the other workers
who are not members of that Union might either operate through the Corporation
Bank Employees’ Union or seek redress directly. In all others cases, the Bank
accepts the Union’s right to negotiate with the bank on issues directly affecting
the Award Staff.
4 The Union on its recognition will be permitted to display its notice boards in all
branches of the bank throughout the country, provided however, that such notice
boards will be used for displaying notices and communications strictly relating
to the Union and its activities. It is hereby further provided that no notice or
communication which in the opinion of the Administrative Office is either
derogatory or prejudicial to the interest of the Bank will be permitted to be
displayed on such notice boards.
5 The Bank and the Union hereby agree to discuss and remove anomalies, if
any, which are not in accordance with the various Awards and Settlements
which are in force.

Code of discipline in industry

I - To maintain Displine in Industry (both in Public and Private Sectors)

There has to be (i) a just recognition by employers and workers of the rights and
responsibilities of either party, as defined by the laws and agreements (including

598
bipartite and tripartite agreements arrived at all levels from time to time) and (ii) a
proper and willing discharge by either party of its obligations consequent on such
recognition.

The Central and State Governments, on their part, will arrange to examine and set
right any shortcomings in the machinery they constitute for the administration of labour
laws.

II - Management and Union agree (to ensure better discipline in Industry)

i) that no unilateral action should be taken in connection with any industrial matter
and that disputes should be settled at appropriate levels;
ii) that the existing machinery for settlement of disputes should be utilised with the
utmost expedition;
iii) that there should be no strike or lockout without notice;
iv) that affirming their faith in democratic principles, they, bind themselves to settle
all future differences, disputes and grievances by mutual negotiation, conciliation
and voluntary arbitration;
v) that neither party will have recourse to (a) coercion, (b) intimidation,
(c) victimisation or (d) go-slow;
vi) that they will avoid (a) litigation, (b) sit-down and stay-in strikes, and (c) lock-
outs;
vii) that they will promote constructive co-operation between their representatives
at all levels and as between workers themselves and abide by the spirit of
agreements mutually entered into;
viii) that they will establish, upon a mutually agreed basis, a grievance procedure
which will ensure a speedy and full investigation leading to settlement;
ix) that they will abide by various stages in the grievance procedure and take no
arbitrary action which would by-pass this procedure; and x) that they will educate
the management personnel and workers regarding their obligations to each
other.

III - Management agree :

i) not to increase work loads unless agreed upon or settled otherwise; ii) not to
support or encourage any unfair labour practice such as (a) interference with
the right of employees to enroll or continue as Union members, (b) discrimination,

599
 restraint or coersion against any employee because of recognised activity of
trade Unions and (c) victimisation of any employee and abuse of authority in
any form;
iii) to take prompt action for (a) settlement of grievances and (b) implementation of
settlements, awards, decisions and orders;
iv) to display in conspicuous places in the undertakings the provisions of this Code
in the local language(s);
v) to distinguish between actions justifying immediate discharge and those where
discharge must be preceded by a warning, reprimand, suspension or some
other form of disciplinary action and to arrange that all such disciplinary action
should be subject to an appeal through normal grievance procedure;
vi) to take appropriate disciplinary action against its officers and members in cases
where enquiries reveal that they were responsible for precipitate action by
workers leading to indiscipline; and
vii) to recognise the Union in accordance with the Criteria (Annexed) evolved at the
16th Session of the India Labour Conference held in May 1958.

IV - Union agree :

i) not to engage in any form of physical duress;

ii) not to permit demonstrations which are not peaceful and not to permit rowdyism
in demonstration;
iii) that their members will not engage or cause other employees to engage in any
union activity during working hours, unless as provided for by-law, agreement
or practice;
iv) to discourage unfair labour practices such as (a) negligence of duty, (b) careless
operation, (c) damage to property, (d) interference with or disturbance to normal
work, and (e) insubordination;
v) to take prompt action to implement awards, agreements, settlements and
decisions;
vi) to display in conspicuous places in the Union offices, the provisions of this
Code in the local language(s); and
vii) to express disapproval and to take appropriate action against office - bearers
and members for indulging in action against the spirit of this code.

600
CBEU WELFARE FUND
1. Objects

To provide financial assistance to the members in the case of the total disability
affecting continuity in Bank Service or substantial disability like loss of limb/s, but not
affecting continuance in Bank service, serious illness like paralysis, leading to total or
partial disability.

To provide financial assistance to the family of the members in the event of the
death of the member.

To provide financial assistance to the members in the case of hospitalisation of the

members

To provide such assistance which could be allied or connected object or purpose of

the Fund as may be decided by the Managing Committee from time to time subject to
the ratification of the Executive Committee of the Union.

2. Membership

The Membership of the Fund is open to all the members of the Union/Association.

Any member of the Fund shall automatically cease to be a member of the Fund, if he
ceases to be a member of the Union/Association. However, if such a member is re-
admitted to the membership of the Union/Association, he/she shall be restored to the
membership of the Fund it he/she pay the arrears of the subscription.

In all matters concerning the Membership of the Fund of any person, the decision of
the Managing Committee shall be final.

3. Admission Fee

Every member of the Fund shall pay to the Fund an Admission Fee of Rs.50.00
irrespective of their cadre which shall be non-refundable, along-with the application
in prescribed form for admission to the Fund and shall nominate a person as his/her
nominee/s who shall be from and out of the members of his family viz., mother, spouse
and children in case of a married person and mother, father, brother and sister, in
case of bachelors/ spinsters.

4. Subscription

Subscription to the Welfare Fund shall be @ 50.00 per month and is payable in
advance every month.

601
A member whose subscription to the Fund are in arrears for a period not exceeding 6
months shall not be eligible for any benefits declared in these Rules, unless decided
otherwise by the Managing committee.

A member whose subscription are in arrears for more than six months shall
automatically cease to be member of the fund.

However, he/she shall be restored to the membership of the fund, in case he/she
pays the arrears of the subscription.

5. Management

The fund shall be managed by a Managing Committee constituted by the Executive

Committee of the Union. The Managing Committee shall consist of not more than 6
members as may be nominated by the Executive Committee of the Union. This shall
include one member from the Officersí Association as may be recommended by the
Executive Committee of the Association.

6. Benefits

A total sum of 1,00,000/- shall be paid to Nominee/s of the member in the event of
the Death of the member while in service. This amount is inclusive of Rs.5,000/-
payable initially to the nominee/s, Dependent/s of the deceased member on receptor
information through the local representatives of the Union/Association.

Every Member shall furnish name/s and address/es of the nominee/s on admission
and shall inform immediately whenever there is a change of name or address of the
nominee/s.

In case member has not nominated any one to receive the benefits shall be payable
to the spouse of the member or any one of the legal heirs as the Managing Committee
may deem fit. Claim application for benefits in the event of death of member shall be
preferred by the nominee/s only.

An amount of 1,00,000/-shall be paid in lumpsum to the member of the Fund in

case of Permanent Disability i.e., Loss of both the Limbs/Loss of both the Hands/
Loss of both the eyes due to accident incapacitating him/her to continue in the service
of the Bank.

In the event of partial/permanent disability caused by accident or sudden. illness

resulting in the loss of a Leg or Hand, whole or substantial part thereof, but not affecting
the contiguity of service in the Bank, the member concerned shall be paid a lumpsum
relief of 10,000.00.

602
A member on retirement (of whatsoever nature) from the services of the Bank or on
resignation to the services of the Bank or on Dismissal/Termination/Discharge f rom
the services of the Bank shall be paid a sum of equivalent to his/her total monthly
subscriptions paid to the Fund. In addition to this, the member shall be paid an incentive
to the extent of quantum specified herein below on the total subscription amount paid
by him/her :

a) Membership of less than 10 years : NIL

b) Membership of 10 years and above : 10%

Irrespective of number of claims, maximum benefits per member, except in the event
of Death/Permanent Disability, shall not exceed 40,000/- during his/her entire service.

7. Refund

10.1 A member shall be eligible for refund of subscriptions made by him/her in the
event of him/her ceasing to be a member of the Fund as per these Rules or if
he/she voluntarily opts out of the Fund by withdrawing his/her subscription in
writing in the manner and to the extent specified herein - below only subject to
deduction of the benefits availed by him her :

Subscription made to the Fund -

a) for a period not exceeding one year : NIL
b) for a period exceeding one year but not : 50% of the
more than 3 years Subscription
c) for a period exceeding 3 years : Full Subscription

NOTICE BOARD TO CBEU AT BRANCHES/OFFICES

[Source : Cir.No.6/75, 58/75 & 31/76]

01. The recognized Workmen Union in the Bank viz., Corporation Bank Employees’
Union can display its Notice Board in all the branches and offices of the Bank
throughout the country.

02. The Notice Board shall be of the size measuring not more than 18” height and
27” length.

03. Union’s Notice Board will be placed just by the side of the Bank’s Notice Board.

603
NOTES

604
NOTES

605