Date  : 28/09/2011

To

Sri D J Babu

Asst. General Manager

Reserve Bank of India

DBOD, Central Office,                                 

12TH Floor, Central Office Building

Shahid Bhagat Singh Marg                         

Mumbai - 400 001.

Dear Sir,

 Sub : Bank officers Service Regulations 1979/80 and Bank  Employees) Pension Regulations 1995 in Public Sector Banks - your letter No. DBOD Leg: 1572/09-08.001/2011-12 dated 29/07/2011 addressed to me.

 In your above letter, I was informed by you that copies of my letter dated 29/03/2011, 05/04/2011 and 25/05/2011 addressed to Govt. of India, Ministry of Finance have been forwarded by you to Indian Banks Association seeking their comments in the matter.

As anticipated by me the said letter might have found their way direct to the cold storage of IBA.  As it is not a statutory authority like RBI, Govt. and public sector Banks they are not covered by RTI Act 2005.  A joint note was signed by it on behalf of Banks with Trade Unions /Associations on 27/04/2010 agreeing to offer one more option to all types of retirees for joining pension scheme with retrospective effect from the operation of RTI Act 2005.  However there is no way for ordinary citizens to know what transpired between Govt, RBI and Public Sector Banks after 27/04/2010 on the one part and IBA on the other part.  At this stage I feel it is expedient to place on record before RBI the real facts which have caused unrest in the life of thousands of senior citizens i.e. voluntary retirees who have been arbitrarily denied the opportunity for joining pension scheme. Every Govt declares every year from the top of RED FORT, DELHI that senior citizens are a treasure to our society as they have worked hard all these years for the development of the nation as well as the community.  They are also considered as having possesed a vast experience in different walks of life.  Therefore at this age of their life, they need to be taken care of and made to feel “speicial”.

Facts

1.  On 29/10/1993 an agreement was reached between IBA on behalf of public sector Banks and Trade Unions on behalf of the Bank employees to introduce Pension scheme with retrospective effect from 01/01/1986 on the pattern of pension scheme then existed for Reserve Bank Employees.  However after signing the agreement a draconion clause forfeiting the entire qualifying service for pension option was got incorporated by IBA/Govt/Banks.  This has made 52% of the employees to reject the scheme lock, stock and barrel.  Central Govt. realised the folly and deleted the said forfeiture clause in 1999 enabling the banks to extend another opportunity for pension to the afore said remaining 52% of the employees.  IBA and Banks have deliberataly delayed a decision for 12 years and on 27/11/2009 signed a MOU and on 27/04/2010 signed a Joint Note agreeing for extending second option to all employees.

2.  “Both MOU and Joint Note facilitate extention of another option for pension to all those who had earlier rejected the same in 1995.  However IBA took upon it the role of Consultant envisaged for RBI under section 19 of Banking companies (Acquatation & Transfer of undertakings) and banks were   ill-advised by them on 10/08/2010 to divide artificially the voluntary retirees into 2 groups i.e. first one is the group who retirees under one-time-scheme of special VRS 2001 (non- statutory) and the 2nd one is the group who retired under a permanent statutory scheme of VR framed under Regulation No. 19 of Bank officers Service Regulations.  The third group is those who voluntarily retired under Pension regulations 1995.  Further Banks were advised, probably without the knowledfe of Central Govt, to deny arbitrarily the option to 2nd group only.  Since then the retirees who are senior citizens covered by 2nd group are agitating with their walking-sticks in various High courts. This is enough for the present as writ Petitions filed by aggrieved retirees will take care of above mischeif played by IBA/Govt.

3.  My next grievance can be taken care of by Reserve Bank only even at this late stage.  Clause No. 10 of the joint note dated 27/04/2010 reads as under  

" The conclusion arrived and recorded in the above clauses together with a copy of the scheme of Pension will be provided to the Government by the IBA for their approval and further action in terms of section 19 of Banking companies (Acquisition and Transfer of undertakings) Act 1970/1980 by complying with the procedure for amendment of the relevant regulations".

4.  Earlier by its letter No. DBOD.CO.RIA 14958/04-03-003/2010-11 dated 23/03/2011 of RBI I was informed that as per section 19 (1)(2) (f) of anking companies (Acquisition and Transfer of  undertakings) Act 1970 and 1980, the Board of Directors of the Public Sector Banks may make regulations with regard to pension for the benefit of the employees [1]after consultation with the Reserve Bank of India[1] and with the previous sanction of the Central Govt.  In the same letter in reply to my query, RBI has informed as follows.

 a)  DBOD has not issued any communication to the Public Sector Banks to finally adopt the resolution by their Board of Directors to extend another option for pension to all the non-optees who were in the services of the Bank prior to 29/09/1999 and continued in the services on or after the said date and did not opt for pension earlier.

 b)  RBI has not given any concurrance to Public Sector Banks to deny one more optionto the officers who voluntarily retired under FIRST SCHEME (i.e. VRS framed under regulation No. 19 of Bank officers service regulations 1979/80) and RBI has not been    consulted in this regard.

c)  DBOD has not delegated its powers vested under subsection 2 of sction 12 of Banking companies (Acquisition and Transfer of undertakings) Act 1970 on service matters relating to the officers if Public Sector Banks to IBA, a private association of all banks, both in private sector and public sector.

5.  It is very clear that officers who retired after 29/09/1995 without opting for pension in the year 1995 can be extended with pensionary benefits only after Pensions regulations are modified/ amended “after consultation with RBI and prior sanction of Central Govt.  Sanction of Govt. alone is not sufficient.” Banks in violation of this statutory provision have released pensionary benefits to such officers without complying with the said provision of law, purely on the advice of IBA.

 6.  The pension regulations 1995 are reported to have not been amended or notified in the Gazette of India as on date.  Please advise the Banks appropriately as and when the pension modifications are referred to you for consultation that artificcial division created by the Banks within the voluntarily Retirees is deleted from the scheme.

7.  Please call for remarks from all the Public Sector Banks for having followed different standard at different times ignoring the the spirit of IBA circular letter No. PD/CIR/76/G2/394 dated 01/06/2000 in 4th para [1]that there is no difference between those who voluntarily retired and those who ordinarily retired.[1]  I am enclosing herewith a copy of IBA's letter No. 394 stated above to enable you to enquire from IBA/Banks as to whether it was their stand earlier.  I request you to forward a copy of above circular dated 01/06/2000 to all RBI executives who are representative directors of different Public Sector Banks so that each board may be able to seek clarification from IBA.  [1]As no new pension scheme is introduced[1] from 27/04/2010 the Banks are not free to fix different standard for those who voluntarily retired at different times during the period from 01/01/1986 to 27/04/2010 in the existing scheme.  The Banks have  flouted the statutory provisions and commenced disbursement of pension to neo-pensioners without consulting RBI and before the amendments are notified.  This step is required to be taken in public interest as the banks are taking shelter behind a non-RTI entity to avoid transparency.  Moreover a private non statutory cansultant i.e. IBA, connot be allowed to usurp the statutory powers of consultation of RBI.

 Thanking you,

 Yours faithfully,

 (A. Premananda Pai)

'ANJANA' Ist Cross, 5th Main Road

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

Phone No. 0820 4293120

Mobile No. 94490 49041