REF. NO.RBONC/015/2015 JANUARY 27, 2015
CIRCULAR LETTER
We convey our best wishes to members and their family
for the New Year 2015 and hope the new
year usher with happy results for which all the retirees
are longing for.
The Wage Revision to bank employees was due as from
01-11-2012 and UFBU had submitted the Charter of Demands well before the due
date demanding an increase of 36% while the demands of the bank r
etirees in the matter of pension were also
included. In our various communications
we had brought to the notice of the representatives of the UFBU that IBA has
already signed a note as far back as on 14-03-2010 and agreed to take up the
matter relating to improvement in pension
like updation, family pension, 100% neutralization of DA, additional
pension to those crossed 80 years of age etc. with the Government. Even after a good number of sittings the IBA
has not acceded to the demands of UFBU though scaled down to 25%. It may be recalled here that the Government
has set up VII Central Pay Commission in 2013 even though it is due as from
01-01-2016 but the same Government has driven the bank employees to the street
and fight for their just
rights!!!.
RBONC was founded in the year 2003 and was in constant
contact with all the retirees' organizations in order to pursue common issues pertaining
to retirees. In particular we have had
a meeting of RBONC and AIBRF representatives at Mumbai with the General
Secretaries of all the UFBU constituents where we had submitted memorandum to
Com. G D Nadaf and Com. C H Venkatachalam highlighting the importance of
retirees issues and urging to take up these matters bringing home that these
are very dear to serving employees also so that they will also get the benefits
on retirement. All the NAVRATNAs (9 representatives
of UFBU) present in one voice supported
our demands and incorporated these issues in their Charter of Demands
subsequently.
In order to get represented at bank level we has spared
no time and approached Sri Sudarshan Nachiappan, Hon'ble MP and also the
Chairman of Public Grievances Committee who immediately called meeting of IBA
executives and Government officials at New Delhi and directed that structured
meetings shall be held by the representatives of retired organizations in each
bank and that the said committee shall be headed by not below the rank of a
Deputy General Manager. This has been
introduced by many banks and regular half yearly meetings are being held and
grievances redressed. However, the
Managements of certain banks still reluctant to set up the committee and hold
periodical meetings. The respective
Retirees' Organizations are advised to press for such a forum so that many of
the grievances could be resolved in such meetings.
RBONC felt the need for consolidation of the
discriminations meted out to bank retirees vis-a-vis the Central/State/PSU
retirees and in this direction RBONC had brought out a booklet
"WHY" Discrimination to Bank Retirees? and widely circulated
these booklets among retiree organizations of banks for information and to get
to know how much we lose. This has
gained the retirees to come together and assert their rights.
RBONC has not remained a mute spectator for the events and we are
proud to say that it was only RBONC under the banner of UFBRO brought
together all the bank retirees and held, for the first time in the history of
bank employees/bank retirees trade union movement, a massive demonstration at
Jantar Mantar, New Delhi on the 17th July 2013 observing as a "Demands
Day" and presented a Memorandum to the Finance Minister. In 2014 it
was held as "Protest Day" before Town Hall just opposite to
the Head Office of Canara Bank which also attracted the attention of the Bank
Authorities beside wide coverage was done not only by print media but also over
TV.
The major issues pertaining to bank retirees are 1) updation (One
Rank On Pension - as is called in the Government), 100% neutralization of
Dearness Relief, Improvement in Family Pension and Uniform
Medical/Hospitalization charges. These issues are also attracted priority since
these will devolve to the existing serving employees upon retirement on
superannuation or otherwise. The
representatives of UFBU will, we have no hesitation, take up these issues also
for discussion and get resolved in precedent to the signing of the final
settlement as it did during 9th Bipartite Settlement in the case of 2nd Option
for Pension.
Immediately after formation of the new Government we had
addressed a letter to Hon'ble Prime Minister highlighting the plights of the
bank retirees and to direct the concerned to redress. Similarly, we have also submitted a
memorandum to Sri Arun Jaitely, Hon'ble Finance Minister to look into the
grievances of bank retirees and to direct the Chairman, IBA to call the Representatives
of UFBRO, Bank Retirees' Organizations.
We have, in pursuance of our issues
addressed a detailed letter to the Hon'ble Minister of State for Finance
Smt. Nirmala Sitharaman bringing to her notice these issues by quoting various
decided cases for her immediate settling the issues. A reminder in this regard was also sent to
the present Minister of State for Finance, Sri Jayant Sinha to look into the
matter. One more detailed submission
was also made to Sri Rajeev Rishi, CMD of Central Bank of India as also
the Chairman of Negotiating Team of IBA
with copies forwarded to all the UFBU Representatives for taking up before the
negotiating table for their early settlement. (Copies of these letters are
appended for the information of our affiliates and members for perusal)
In our said letters we have also urged to give the
Representatives of UFBRO an audience before the Negotiation Team so that these
and also other minor issues could be discussed and wherever required
clarification can be given. Presently
the ball is in the court of IBA and UFBU.
We were and are for the consolidation of bank retirees and with
this in aim we had moved in the direction of setting up an United forum in the
Name of United Forum of Bank Retirees' Organizations (UFBRO) akin to UFBU well
before the starting of AIPABRC. Before
that there was a move for co-ordination by a section of retirees along with the
General Secretary of AIBOC. We could
not support for obvious reasons but urged to affiliate to RBONC or AIBRF to
make the UFBRO sole representative for retirees' demands. We call upon all the bank retirees'
organizations to join UFBRO and make this forum a strong body numbering over 3
lakhs retirees. The time has come and
it is the need of the hour, the leaders to ponder over.
R. D Deshpande'
GENERAL SECRETARY
Wage Revision talks
Perhaps, it is with the direction of GOI in DFS the CLC has
called the IBA and UFBU for a conciliation meeting in New Delhi since the Govt.
has felt the impact of strike by bankmen and the repercussion thereof on the
financial activities in the country. It
may be recalled here that as per the report as huge as 2.5 lakh cheques
covering a value of Rs.1.75 lakh crores
remained uncleared just at one centre i.e. when southern zone branches
were closed for a days strike. It
multiplied in the next 3 days on account of the involvement of the employees in
other regions of the country. With the
depleted staff strength prevailing almost at all the branches irrespective of
the banks it may take another fortnight to clear the backlog. The question is, being asked "WHY
Bank Employees only have to go on strike every time for getting the wages
revised?"
A recently appointed Chairman of a Bank is fixed a salary of
Rs.30.00 lakhs, perhaps, with other perquisites and allowances apart. Can we question the parameters adopted in
fixing the wage and the whether the
newly created non-executive chairmen of PSU Banks will get the same scale? The next in hierarchy is the Managing
Director and then the Executive Directors and then comes the General
Managers.` At present the General
Manager of PSU Bank is fixed a basic pay of Rs.56,000/- that is to say
Rs.6,72,000/-. Now one should apply his
mind as to what shall be a basic pay of a General Manager and that of those down
the line. RBI is going to issue
licences for small banks and also bigger banks as per the norms fixed. If the salary is not attractive for the work
done can we not expect flight of experienced hands either to private banks who also expand
needing experienced hands where the salary is high compared to PSU Banks or
newly started banks needing executive posts.
It is in this context the UFBU in the best interest of the
banking industry demanded the increase of 36/25% and scaled down to 23% and now 19.5% hike which is quite
reasonable also in order to retain experienced hands.
Setting up of a Committee
We understand that it is proposed in the ongoing talks on 7th
January 2015 to set up committees to look into the issue and to submit a
report. We fail to understand as to why
there shall be another committee whereas the Negotiation Team itself a
committee besides UFBU. Can it not be
discussed across the table? Is IBA is
unable for calculations even after signing 9 such settlements with the assistance
of their secretariat and a computer and for UFBU their Secretariat in each
unit?.
It is the Government policy to set up
commissions/committees/parliamentary committees to do or undo things
consisting numerous members picked from nook and corner of the country so that
they can hardly meet but take several years to submit their reports. Take the example of "Tendulkar
Committee" set up by the Government and after a long time they come to the
conclusion that the spending in rural area is Rs.27.00 and in cities it is
Rs.36.00 per day! What about
"Rangarajan Committee" who suggested that extending subsidy to LPG
cylinders is a drain on the exchequer and it should be reduced/eliminated. Have they ever verified what is the
consumption of LPG cylinders at the residences of MLAs, MPs and whether they
have restriction of 12 cylinders per year?
The irony is LPG connection is disconnected for not taking a cylinder
for 3 months!! Is not money by way
of subsidy saved?
Another example is the P J Nayak Committee constituted for
banking reforms. The recommendations
are neither in the interest of the banks nor the workmen and submitted to suit
the needs of the interested groups.
Bankmen had to struggle to stall its implementation.
It is a simple arithmetic.
IBA has arrived at a quantum of Rs.3465 crores at 11% and at 12.5% is
calculated at Rs.3938 crores.
Therefore, for every increase of 1% it will Rs.315 crores. (simple
arithmetic : 3938 - 3465 = 473 = 1 1/2%.
1 1/2% = 473. Therefore 1% =
315 still simpler method will be 11%
is Rs.3,465 crores - what will be 1%?
3465 / 11 = 315). Now you can
arrive at the figures on the basis of 315 crores for every increase of 1%. ANY
EXPERTISE NEEDED? God only to
save the industry from IBA!!!
Total amount written off by the banks during the year 2013-14 is
reported at Rs.34,409 crores as against Rs.27,231 crores in the year
2012-13. This amount is a drain on the
profitability of the banks but whatever amount (now the increase in wages)
to be granted to the employees will be an investment for the banks that
will return in the form of accelerated output for each and every year the per
employee turnover is increased. The
additional burden will be less than 10% of the amount written off a year
ago.(315 x 7% = Rs.2,205 crores).
Will the Representatives on both sides wake up?
Exchange of old currency notes
RBI has extended the date for getting exchanged old currency note
that do not bear the year on the back side till 30th June 2015.
NPA in Banks
The total amount of NPAa of 27 PSU banks as on 31st March 2014
stood at Rs.2,45,809 crores at 4,47% against 1.8% of private banks. The share of top 30 accounts is Rs.87,368
crores or 35.9 per cent
Total amount written off during the year was to the tune of
Rs.34,409 crores as against Rs.27,231 crores i 2012-13.
Amount involved in forgery, fraud etc was Ra.4,150 crores as
against Rs.5,098 crores a year ago,
At the two day "Gyan Sangam" RBI Governor Dr.
Raghuram Rajan said bonafide mistakes made by the bankers while taking
commercial decisions should be protected by government. It is heartening to note that the Prime
Minister in the open session at the "Gyan Sangam" declared that the
Government will not interfere in the working of the PU Banks and all bonafide
decisions taken in the interest of bettering improvements in business will be
supported and the officials who took such decisions will not be penalized. This assurance will will go a long way in
improvements in the business of the banks leading to higher profits in the days
ahead. A communication in this regard
has been issued by the DFS, MOF to all he banks.
Pradhan Mantri Jan Dhan Yojana - PMJDY
115000000 accounts -
87500000 rupay cards - in 5 months!!!
It is easy to say but hard to do - is the saying. Our Hon'ble Prime Minister, Sri Narendra
Modiji announced on the ramparts of Red Fort Delhi while unfurling national
flag on 15th August 2014 Independence Day announced his ambitious Pradhan
Mantri Jan Dhan Yojana giving a target of 10 crore bank accounts with zero
balance and to issue 'rupay' cards for the accounts. The deadline was 26th January 2016 -
Republic Day. Directions from
Department of Financial Services, Ministry of Finance were given down the line
for the implementation unmindful of the work involved, observation of RBI
guideline on KYC, the stationery required, manpower needed both clerical and
supervisory, etc.
With all these lack of infrastructure the PSU Banks stood up to
the call spontaneously and made up their mind to introduce the scheme in a big
way. Result? The target was surpassed well before the
deadline and it is 11.50 crores account and 8.75 crores rupay cards. Over Rs.8,000 crores of deposits.
This is possible only by the
bankmen, bankmen and bankmen alone!!!
How much "Swach" the Bharat became? How much "Ganga" cleaned?
- Does anybody care?
BANKMEN DID THE JOB - UNPRECEDENTED IN THE HISTORY
OF BANKING INDUSTRY!!!
SETTLE THEIR WAGE INCREASE
AND OTHER DEMANDS IMMEDIATELY
IS
OUR DEMAND TOO
RBONC -
ZINDABAD AIBRF -
ZINDABAD UFBRO - ZINDABAD
