Why RBI is silent on the issues relating to Pension Matters

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Why RBI is silent on the issues relating to Pension Matters

Place : Udupi

Date : 28/11/2011

The Deputy Governor

Reserve Bank of India

DBOD, Central Office,

19TH Floor, Central Office Building

Shahid Bhagat Singh Marg

Mumbai - 400 001.

Dear Sir,

Sub : Statutory consultation with RBI by nationalised banks in terms of section 19 of Banking companies (Acquisition and transfer undertakings) Act 1970/1980 on pension matters and other service conditions of Bank Officers.

I. I have been pursuing the above matter with the executives of Reserve Bank of India in the order of their hierarchy from Asst General Manager, Deputy General Manager and General Manager, Executive Director in public interest. As my complaint has been casually dealt with by Asst General Manager and other executives have not even acknowledged my letters, I am now approaching you with the hope that at least you will take necessary steps in public interest. I have not sought any personal favour from RBI.

II. To avoid repetition of submissions already made by me before the above executives I am forwarding herewith the copies of my following letters which are self explanatory. All these letters are forwarded through Registered Post.

a) Letter dated 28/09/2011 addressed to Asst. General Manager:-

He has as tutored by Indian Banks Association informed me that fresh option to ordinary voluntary retirees was not envisaged in the joint note dated 27/04/2010. He has washed his hands stating that there are writ Petitions filed by aggrieved retirees before various High courts in the said matter which are pending for decision of Hon'ble High courts. He has opined that the issue is subjudice and advised me to await the decision of the courts in this regard.

b) Letters dated 14/10/2011 and dated 21/10/2011 addressed to Deputy General Manager:-

There is no reply yet.

c) Letter dated 02/11/2011 addressed to General Manager:-

There is no reply yet.

d) Letter dated 29/03/2011 addressed to Executive Director:-

There is no reply yet.

III. In the meanwhile one of the RTI activists has favoured me with a letter dated 18/11/2011 from a nationalised bank confirming that Bank Employees Pension Regulations are yet to be amended as guideline from [1]IBA[1] are awaited in this regard. The said bank has also confirmed that no other joint note has been signed between the said bank/Management of other banks (represented by Indian Banks Association) and officers' Unions (AIBOC, AIBOA, INBOC and NOBO) to admit new groups of retirees/Voluntary retirees to Pension scheme and disburse pension from 27/11/2009 pending publication of notification of amendments to Pension Regulations in the Gazette of India.

IV. The afore-said reply shows that the pension is disbursed in a hurry to fresh group of retirees even though �it was not envisaged in the joint note dated 27/04/2010� and also without compliance of mandatory provisions of consultation with RBI in terms of section 19 of Banking companies (Acquisition and Transfer of undertakings) Act 1970/1980. Moreover the Bank is awaiting guidelines from Indian Banks Association (and not from/Reserve Bank of India or from Govt). Govt. of India vide its letter No. 15/106/2010-IR dated 05/01/2011 had confirmed to me that Indian Banks Association undertake only the negotiations with the unions/Associations on behalf of managements of such banks, who give mandate to IBA to negotiate on their behalf but not on behalf of the Government. It means that IBA which is not covered by RTI Act 2005 cannot take decisions on behalf of RBI.

V. The Developments taking place in nationalised banks in the pension matters are the result of too much liberty given to Indian Banks Association by Govt. of India and inaction of Reserve Bank of India to assert their statutory authority. Such a trend is surely not in the interest of the country. IBA is likely to claim that Govt. of India has authorised them to give instructions to Banks to commence disbursement of pension pending amendment/notification. However in the absence of any provision in RTI Act to cover private entities it is difficult to verify the truth. Banks are not getting any instructions now a days directly from Govt. of India.

VI. I appeal to you to look into the matter raised in my letters addressed to Asstt. General Manager, Dy. General Manager, General Manager and Executive Director of RBI as early as possible.

VII. I am also sending true copies of following letters which were sent to me by public interested persons. The said letters may act as a guide to RBI to render faultless advice to Banks during the course of consultation proceedings in term of section 19 of Banking companies (Acquisition & Transfer of undertakings)Act 1970/1980.

a) IBA circular PD/CIR/76/G2/394 dated 01/06/2000 wherein IBA agreed with the observation of Supreme court of India that there is no difference between those who voluntarily retired and those who ordinarily retired.

b) ̠Letter No. CDL:1486:2010 dated 24/12/2010 of Vijaya Bank wherein it has confirmed that the Load component of Rs. 351 Crores includes officer retirees of the relevant period who retired under the then existing VRS of the bank vide Regulation No. 19 of Vijaya Bank Officers Service Regulations.

c) Letter No. DBOD.CO.RIA 14958/04.03.003/2010-11 dated 23/03/2011 wherein RBI has confirmed that RBI has not given any concurrence to Public Sector Banks to deny one more pension option to the officers voluntarily retired under the FIRST SCHEME, RBI has not been consulted by public sector Banks, RBI has no information about writ Petitions, Board of Directors of Public Sector Banks may make regulation with regard after consultation with RBI etc.

d) Letter DBOD No. Leg. 4778/09.08.001/2011-12 dated 27/09/2011 by AGM of RBI to me simply reiterating the IBA version that the joint note dated 27/04/2010 do not envisage allowing option to officers who have availed early retirement from Banks service on terms of rule made by the Banks under regulation 19(1) of Bank officer service Regulations. RBI has not sought any explanation from IBA as to on what rationale IBA feels that it is not so envisaged and as to why in the joint note a specific clause to exclude them is not inserted.

e) Copy of complaint dated 01/11/2011 written by one Mr G K Khurana to Smt Sonia Gandhi, Dr Manmohan Singh, Shri Pranab Mukharji and Shri D K Mittal etc expressing his perception of non-Governnance now persisting in the country due to lethargy/incapacity of officials in spite of recent judgement dated 27/07/2011 of Supreme court of India in Civil Appeal No. 6013 of 2011 between Shri Sheel Kumar Jain Verses New India Assurance Co. Ltd.

f) Letter No. 3263/0012/Ho/SWD/ RTI/2011 dated 18/11/2011 of Syndicate Bank wherein the Bank has confirmed that pension regulation are not yet amended and guidelines from IBA (not from RBI or Govt) are awaited in this regard. No joint note other than the one dated 27/04/2010 is signed enabling them to admit new groups of retirees/voluntary retirees to pension scheme and disburse pension from 27/11/2009 pending publication of Notification of amendments in Gazett of India. However Banks have started disbursement of pension illegally.

VIII. For the time being I will be satisfied if at least a communication is received from your office acknowledging this letter.

g) ̠Circular No. 80 dated 20/08/2011 of All India Bank officers Confederation representing 90% of the officers of Banks and signatory to the joint note dated 27/04/2010 along with the letter No. 1452/297/11 dated 20/08/2011 addressed by said federation to Indian Banks Association wherein the interpretation made by IBA is disputed by the General secretary under his signature.

Thanking you,

Yours faithfully,

Shri A. Premanand Pai

"ANJANA" Ist Cross

5th Main Road

V.P.Nagar

Udupi - 576 102

Karnataka.

Mobile No. 94490 49041.

Phone No. 0820 4293120.