Arbitrary Denial of one more option at your behest to employees voluntarily retired vide rule  of VRS framed under statutory Regulation No. 19 of Bank Officers Service Regulation  1979/1980.  - Negative Role of IBA

 by

A Premananda Pai [mailto:mallya@mfgroupco.com]

The Indian Banks Association

At this stage it is to be remembered that all pension regulations are adopted by respective units of Central Government on the basis of a model draft circulated to them by the Government. The pension regulations of general insurance companies are found to be exactly similar to the Bank employees pension regulations 1995.  Hence this decision can be made easily applicable to voluntary retirees of public sector Banks provided the officers retired after completing 20 years of qualifying service with 3 months notice.

2.  In its decision dated 28/07/2011, the Apex court has set at rest different kind of interpretations made so far by the courts between the 'Resignation' and "voluntary retirement".  The Apex court has narrowed down the chances of making perverse interpratations hereafter as according to it whatever may be the exist route, it has to be tested with reference to the number of qualifying years of service put in by an employee i.e. 20 years minimum.

3.  Paradox is that services of Indian Banks Association a non statutory and private association as a broker to decide the service conditions of Bank officers are being availed by statutory bodies like public Sector Banks and Constitutional authority like Central Government.  In the matter of Joint note dated 27/04/2010 also Banking Division of Ministry of Finance, a  Constitutional entity, instead of communicating its approval to the concerned banks, preferred to do so by direct communication to Indian Banks Association.  It is not known whether the  subsequent clarification given by IBA to public Sector Banks has really emanated from Banking Division or not.  This is because the said communication from Government to IBA has not been seen  by any entity.  This type of process is a clever ploy indulged by statutory/Constitutional  entities to escape from the coverage of Right to information Act 2005.  This situation has enabled the Indian Banks Association to render advices indiscriminatly to banks as well as to Central Government “without any accountability.”  The clarification given on its own by IBA to banks not to extend the second option to retirees of statutory VRS of 1980 is one such indiscriminate advice.  It has also made Indian Banks Association a defecto controlling authority in service matters of Bank officers which in fact is vested  collectively and exclusively with Reserve Bank of India and Central Government and Board of Directors interms of the  provisions of section 12 and 19 of Banking Companies (Acquisition and Transfer of undertakings) Act 1970.

4.  Whatever it may be the letter dated 25/07/2011 of the General secretary of AIBOC has given an opportunity to IBA to enact a drama by convening a meeting of all the signatories of Joint note dated 27/04/2010 to regain its image lost on  cunningly created through unprincipled adulteration while  communicating to the Banks to deny second option to retirees of VRS framed under statutory rules of section 19 of Bank officers service Regulations 1979/80.  This will save the Central    Government from an embarrassing position.  I hope that wiser sense will prevail among the members of Managing Committee of IBA sooner than later to relieve the senior retirees from mental agony caused by giving wrong clarification by your heartless officials who are masters of english language and who are academically brilliant.

Thanking you,

(A. Premananda Pai)

'ANJANA' Ist Cross, 5th Main Road

V P Nagar, Udupi -576 102. (Karnataka).

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