AIBOC CIRCULAR NO. 76 DATED 12TH OCTOBER 2009

AIBOC has issued a Circular on representation of Officers on the Boards of Banks in the backdrop of Amendment to the Nationalised Banks' (Management and Miscellaneous Provisions) Scheme, 1970/1980.
The same is reproduced below for our visitors.

CIRCULAR NO: 76                                         12^th October, 2009  

TO ALL AFFILIATES/MEMBERS:
PARTICIPATIVE MANAGEMENT: REPRESENTATION OF OFFICERS ON THE BOARDS OF BANKS.
AMENDMENT TO THE NATIONALISED BANKS’ (MANAGEMENT AND MISCELLANEOUS PROVISIONS) SCHEME, 1970/1980.  NOTIFICATION DATED 15.09.2009, OF THE GOVERNMENT OF INDIA.
We have appended a copy of the letter addressed to the Hon’ble Union Minister for Finance, which is self explicit.
We will keep you informed of the further developments in the matter.
With Warm Greetings,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY
No.1410/197/ 09                                  10.10.09
To,
Shri. Pranab Mukherjee,
Hon’ble Minister for Finance,
Government of India, South Block,Parliament House,
New Delhi.
Dear Sir,
PARTICIPATIVE MANAGEMENT: REPRESENTATION OF OFFICERS ON THE BOARDS OF BANKS.
AMENDMENT TO THE NATIONALISED BANKS’ (MANAGEMENT AND MISCELLANEOUS PROVISIONS) SCHEME, 1970/1980.  NOTIFICATION DATED 15.09.2009, OF THE GOVERNMENT OF INDIA.
We invite your kind attention to the Amendment to the Nationalised Banks’ (Management and Miscellaneous Provisions) Scheme 1970/1980 notified by the Government of India on 15.09.2009 in the extraordinary Gazette, wherein it is indicated that all the Officer Directors on the Boards of the Nationalised Banks, who have completed the tenure of 3 years, have been removed from the Boards with immediate effect.  This is in contravention of the earlier provision of continuing the incumbent representative as Director, till such time the new representative is nominated.  The abrupt removal has resulted in a vaccum and this has created wide spread resentment among the Officers’ community.
2.         As per the Provisions of the scheme, the Government/ Bank has to obtain from the majority unions of Officers/ panel for nomination of the new Director, well before the tenure of three years of the incumbent Director.  We learn that in respect of the Banks where the incumbent Directors are removed in the wake of the above amendment,  no panel has been obtained by the management of the individual banks for clearance from the Government of India. This has created avoidable vaccum at the Board level.
3.         We wish to bring to your kind notice that at few banks Officers’ Associations have submitted their panels, much before the completion of the present incumbent’s term, due to many hurdles put up by the bureaucrats in the Ministry, the appointments have been delayed.  The Associations have no control over this.  In this background it was appropriate that the present incumbent is continued as Director till the next nomination is made.  This arrangement was working well till now and there are no plausible grounds to discontinue the same.
4.         The stellar role played by the Officers’ community in the Nationalised Banks in the socio-economic development of the Country is remarkable.  The representative of the Officers’ community on the Board of the Bank has played an important role in shaping the policies of the Bank to meet the daunting tasks of poverty alleviation, rural employment programmes etc.
5.         In this background, continuation of the present incumbent Director till the next nomination is made, is desirable.  May we urge upon you to look into the matter and continue the existing arrangement in the spirit of participative management in Nationalised Banks, which was evolved way back in the 1970’s and which has done yeomen service to the cause of socio-economic development of the country.
6.         We request you to pass necessary instructions to the concerned to continue with the existing system in all cases where the panels submitted by the Associations are pending with the Government.  We would also request you to clear the panels of those banks which are kept pending and issue notification for nomination of new Directors at your earliest convenience.
Thanking you,
Yours faithfully,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY