MR. A.P. AWASTHI, SR. INTERNAL AUDITOR RETIRED

Mr. A.P. Awasthi, Senior Internal Auditor of Hyderabad Audit Zone and one of our Senior Most members, retired on 26.02.2010. On behalf of our Association, we wish him a peaceful and happy retired life. We shall always remember his loyalty and dedication to the organisation. He has been the member of AICBOF, affiliated to AIBOC, since his promotion to Officer cadre and continued as member till his retirement, in spite of severe hardships forced on him by the management. We salute to his dedication.

Our Association took the privilege to honor him on his retirement on 26.02.2010 at our Association Office. We are posting the photograph here where Mr. M. Siva Sankara Rao, Dy. General Secretary, C.B.O.A., AP Unit was presenting a bouquet to Mr. A.P. Awasthi.

AIBOC CIRCULAR NO. 20 DATED 26.02.2010

AIBOC issued its circular No. 20 on Officers' Representation on the Boards of the Banks. We are reproducing the same here for our readers.

CIRCULAR NO.20       26.02.2010

TO ALL AFFILIATES/MEMBERS:

PARTICIPATIVE MANAGEMENT

OFFICERS’ REPRESENTATION ON THE BOARDS OF THE BANKS

One of the salutary schemes of the Industrial Democracy enunciated by the Government of India and the Constitutional Provision is the workers’ participation in the Management. The Government of India took a series of measures to educate the labour leaders and to enlighten them about the various social security provisions introduced by the Government with particular reference to the working class of our country.  The Government consciously allowed the development of Trade Unions, so that a representative forum is available to the labour class in our country. The freedom struggle was also a struggle for emancipation of working class. The Social reformers who were responsible for advocating the welfare of the working class in the early century also took an active part in the freedom struggle. For them, the freedom was meaningless, unless it frees the working class from the clutches of capitalists and the exploiters who were bent upon taking advantage of the cheap labour available in this country for producing finished products and send it abroad for huge profits. The exploitation was a common factor in the British regime. When the country became free, the working class received all the attention and special efforts were made to provide social security to the working class, coupled with several schemes to enable the workers to represent their grievances. The labour had to be provided with a democratic right in order to see that the fruits of freedom reach them. Thus, the representative character was introduced in the Boards of the Public Sector Banks as well.

The trade union movement in the Banking Industry was a formidable one and was capable of handling the representative roles in the Boards – when the government of India considered the introduction of Participative Management which provided several forums for the workers in the country to take a role in the decision making of the Management.  The quality circle, the shop and floor level committees which included the representatives of the workers as well were the initial initiative of the Government to allow the spirit of industrial democracy to blossom in the country.  The final tribute to this effort was the representative character to the Trade Unions in the Boards of the various Public Sector Banks.  The Banking Industry had a highly motivated trade unions and led by the legendary trade union leaders who were considered more than a match to any other representatives in the Board to represent the interests of the constituency which they look after.  Thus the scheme for the nomination of the workmen as well as non-workmen directors on the Boards of the Public Sector Banks came to stay.  This is one of the salutary provisions helping the workers to take part in the management of the respective organization as well.

The objective of the scheme is loud and clear.  It is to allow the representatives of the majority unions to represent the workers/officers on the Board.  The spirit of the scheme was that the unions will forward a panel of names with a priority for the purpose of completing the process of scrutiny and also nomination by the Government of India in consultation with the Reserve Bank of India.  The panel should consist of 3 names of the Principal Office-Bearers of the recognized majority union and has to be forwarded to the Government by the respective banks.  There are certain guidelines for the purpose of scrutiny of the panel submitted by the majority union.

In course of the last couple of years, the Government is exceeding its brief in the matter of nomination of directors in respect of the Officers’ fraternity which is against the spirit of the scheme.  The affiliates of the Confederation have been representing to the Government through their respective managements that the list submitted by them and as also the order in which they are submitted should be considered and the Government should not dilute the panel submitted by them.  We have received reports from the various affiliates wherein for flimsy reasons the Government has turned down the panel and have sought fresh names for the purpose of scrutiny of the panel. There are also instances where the Government has changed the priority for no valid reason and have thus created a lot of organizational embarrassment to our affiliates in several banks.

The other strong negative aspect is certain amendments that were brought to the scheme in the recent past.  The earlier provision in the act provided for the continuity of the sitting director until the next person is nominated or for further period of 3 years whichever is earlier.  The Government removed this provision and thus created a vacuum in several banks when the three year period was over by removing all such directors unilaterally.  As a result, a number of Boards do not have our representatives and there is inordinate delay in filling the vacancy.

The Executive Committee of All India Bank Officers’ Confederation met at Panjim:Goa on 17^th February, 2010 had an occasion to deliberate on the issue at length.  The members were very much concerned to note that due to the inordinate delay in clearing the names for the purpose of nomination of officer directors on the Boards of the Banks, the representation in the Boards of Various Banks have fallen vacant.  The Confederation is a majority organization in almost all the banks excepting four banks and the Government has a responsibility to ensure that these vacancies are filled in good time.  The total representation for the Confederation is around 22 whereas our representatives are available only in 9 banks and the remaining 13 banks have kept vacant officers directors posts for no valid reasons.  The panels submitted from several banks on the recommendations of our affiliates are being changed or rejected for certain frivolous reasons, such as less than 3 years residual service etc.

Hence, the members were of the unanimous view that the issue will have to be taken up with the government on priority basis.  The committee also adopted the following resolution to this effect:-   

Resolution :-

PARTICIPATIVE MANAGEMENT - NOMINATION OF OFFICER DIRECTOR ON THE BOARDS OF THE BANKS

The Executive Committee of the All India Bank officers’ Confederation which met at Panjim:Goa on 17^th and 18^th February 2010 had an occasion to deliberate on the various issues connected with the nomination of the Officer Director on the Boards of the banks.  The committee noted with concern that the Government has unilaterally made certain changes in the existing scheme for the nominee director thereby removing all the directors who had completed their term although they were permitted to continue until the next person is appointed as per the earlier provision in the act.  This has created a big vaccum.  The members were also concerned to note that the panels submitted by the affiliates are being unnecessarily diluted and the affiliates have been advised to submit fresh panel for no valid reason against the spirit of the act.  The act of the Government goes against the spirit of the statute and needs to be rectified.

The members of the committee therefore urge upon the Government to review the position and take necessary steps to nominate the directors on the boards wherever the vacancy remains unfilled and allow the scheme of participative management to be effectively implemented in all the banks in the interest of the industrial peace in the banking industry.

The resolution was moved by Com.A.K.Motayed, Jt.General Secretary

The resolution was seconded by Com.D.N.Prakash Jt.General Secretary

The resolution was adopted unanimously.

Comrades, we will be taking up the matter with the Government for appropriate relief in the matter.  All our affiliates/members are requested to await further developments in the matter.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No.1410/54/10              26.01.2010

To,

Sri. Pranab Kumar Mukherjee

Hon’ble Finance Minister,

Government of India,

South Block,

Parliament House,

New Delhi.

Dear Sir,

PARTICIPATIVE MANAGEMENT - OFFICERS’ REPRESENTATION ON THE BOARDS OF THE BANKS

The Government has introduced a scheme for the purpose of encouraging participation of the representatives of the Officers in the Banks’ Boards in pursuance of their philosophy of industrial democracy and Participative Management as provided in the Constitution of India.  In order to ensure that a true representative of the Officers’ fraternity is nominated on the Board, the Government will be seeking the panel of names from the Majority organisations in terms of the guidelines issued for the purpose. The Confederation being the largest organization in the Banking Industry representing the Officers in almost all banks had the privilege of having their nominees on the Bank Boards for the last several years. As per the scheme, the affiliates of the Confederation were submitting a panel of 3 names suggesting the order of priority for the purpose of appointment.  The Government invariably responds to the panel suggested by the affiliates of the Confederation.  However, we have been witnessing certain deviations and ambiguities in the implementation of the scheme in the recent past.  Some of them are glaring and need to be corrected immediately in the light of the spirit under which the scheme is formulated.

The major one is the restrictions in regard to the continuity of the Director until the new person is appointed on the board to ensure the participation of the representatives of the Officers’ fraternity on the Board which was available earlier.  Recently, the Government has unilaterally altered this proviso and has relieved all the Directors who had completed their term as per the notification and did not allow the continuity in the Board. There are instances where the appointment is unduly delayed since the Government is returning the panel suggested by the Officers’ organizations on certain frivolous grounds. An extraneous condition of minimum of 3 years residual service is also insisted, thereby avoiding nomination of principle office bearers on the Boards.

The guidelines are subject to the bureaucratic intervention.  There used to be consultation process in case of any changes that are required to be made to the guidelines. Since, the guidelines as well as the recent amendment to the act is hurting the very spirit of the scheme, the Executive Committee of the All India Bank Officers’ Confederation which met recently at Panjim:Goa deliberated the issue at length and adopted a resolution seeking your intervention in the matter. We forward the same for your favorable consideration.

Please treat the matter as urgent.

Thanking you sir,

Yours faithfully,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

AIBOC CIRCULAR NO. 19 DATED 26.02.2010

AIBOC issued its circular No. 19 on the nationalisation of Catholic Syrian Bank. We are reproducing the same here for our readers.

CIRCULAR NO.19                        26.02.2010

TO ALL AFFILIATES/MEMBERS:

CATHOLIC SYRIAN BANK SHOULD BE NATIONALISED OR MERGED WITH A PUBLIC SECTOR BANK - EXECUTIVE COMMITTEE OF THE CONFEDERATION MOVES A RESOLUTION

The Executive Committee of the All India Bank Officers’ Confederation met at Panjim:Goa on 17^th February, 2010 had an occasion to deliberate on the present structure of the Banking Industry in the backdrop of the attempts of the Government to hand over some of the old Generation Private Sector Banks to the new Generation Private Sector Banks, a move to ensure the participation of the multinational investors in the operations of the Banking Industry, despite the strong resistance of the unions in the Banking Industry as well as the people of this country.  The Confederation has been championing the cause of the Private Sector Banks since the last 2 decades and has been demanding their Nationalisation since they are akin to the Public Sector Banks in the matter of business operations and also the cultural ethos prevailing in all these banks.  Many of these banks have their own clientele and the business model catering to the customers in their limited geographical jurisdiction in an effective manner.  Their size and equity is small in comparison with the giants who are operating under the new generation Private Sector Banks indirectly supported by the multinationals through equity participation.  These banks have been eyeing on the private sector banks who have a good branch net work in their area of operation and also running the business in an effective manner with a view to utilize the readily available infrastructure.

The members of the Executive Committee expressed their concern in regard to the recent developments in the matter of taking over the Catholic Syrian Bank by some of the new Generation Private Sector banks in order to utilize the infrastructure created by this oldest private sector bank.  The Catholic Syrian Bank has made tremendous contributions to the growth of the economy of the State of Kerala and Tamil Nadu over the last 70 years being one of the oldest Private Sector Banks.  They have a committed clientele who would like to retain the current image of the bank given an option.  The employees and officers are also worried about these developments and have been agitating over these developments and have been expressing a strong resentment for such take over by the New Generation Private Banks in view of the recent experience in respect of some private banks which were operating in the State of Kerala State.

After a threadbare discussion on the points made by the members of the Executive Committee it was resolved as under:-

Resolution:-

CATHOLIC SYRIAN BANK SHOULD BE NATIONALISED OR BE TAKEN OVER BY A PUBLIC SECTOR BANK

The Executive Committee which met at Panjim:Goa on 17^th February, 2010 took note of certain developments in respect of the Catholic Syrian Bank and the attempts of some of the Private Sector Banks for taking over the same in the name of consolidation of the banking industry.  The members of the Executive Committee were concerned to note that these developments are bound to hurt the yeomen service that is being extended by the Catholic Syrian Bank branches which are situated largely in the State of Kerala and Tamil Nadu through its dedicated commitment and concern to the welfare of the common people of these areas over the last 70 years.  The members were also concerned that the attempt of some of the Private Sector Banks if allowed to succeed it would result in the reduction of the branches of this bank which is functioning akin to the Public Sector Banks in the matter of extending credit facilities and discharge of social responsibilities to the society as directed from time to time by the Government of India to all the Public Sector Banks.  The Catholic Syrian Bank is like any other Public Sector Bank in regard to the extension of rural credits as well as priority lending.  In this background, handing over this bank to the Private Banks who are only interested in using the resources available in the Bank for the selfish ends of the promoters of those banks is not warranted at this stage.  Hence, the members were of the unanimous view that the Government should be urged upon to merge this bank with any of the Public Sector Banks functioning in the country rather allowing it to fall prey to the poaching game of some of the private banks operating in the country.

The members of the Executive Committee of the Confederation therefore urge upon the Government to take into consideration the sentiments of the Officers’ Confederation and ensure that the Catholic Syrian Bank be nationalised or be merged with any of the Public Sector Banks instead of allowing it to fall into the hands of a Private Bank.

The resolution was moved by Com.P.V.Mathew, the Vice President of the Confederation.

The resolution was seconded by Com.K.Ananda Kumar, the Vice President of the Confederation.

The resolution was adopted unanimously.

Comrades, we have to-day sent the resolution to Shri.Pranab Kumar Mukherjee, Minister of Finance, Government of India, New Delhi urging upon him to consider our resolution favorably.  A copy of the letter addressed to the Government has been endorsed to the Reserve Bank of India for information and necessary action.

All our affiliates/members are requested to await further developments in this regard.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No.1410/58/10                                                                26.01.2010

To,

Sri. Pranab Kumar Mukherjee

Hon’ble Finance Minister,

Government of India,

South Block,

Parliament House,

New Delhi.

Dear Sir,

FUTURE OF CATHOLIC SYRIAN BANK - MERGER WITH THE PUBLIC SECTOR BANK

The Executive Committee of the All India Bank Officers’ Confederation which met at Panjim:Goa on 17^th of February 2010, had an occasion to discuss the future of the Catholic Syrian Bank in the background of certain moves made by some of the Private Banks to take over the same.  The Executive Committee members were very much concerned to note these developments in view of the fact that the Catholic Syrian Bank is one of the oldest Private Sector Banks functioning in the same way as that of a Public Sector Banks in regard to the extension of various facilities to their clientele.  The Bank has branches predominantly in the State of Kerala and Tamil Nadu which is catering to the needs of the rural population in the interior parts it is serving.  It is also discharging its social responsibilities on par with the Public Sector Banks functioning in these areas.  Hence, any attempt to take over this bank by another Private Sector Bank will only result in denying the credit facilities and also the banking facilities to the people it is serving at present on the same lines as that of a Public Sector Banks.

The members of the Executive Committee were therefore of the unanimous view that the Government should intervene and take necessary steps to merge the Catholic Syrian Bank with a Public Sector Bank operating in the country so that the benefit of banking facilities including the priority lending and other social obligations discharged by a Public Sector Bank is available to the customers of the Catholic Syrian Bank.  The Executive Committee of the Confederation accordingly adopted a resolution for the consideration of the Government.

We therefore request you to kindly look into the matter and take necessary steps to meet the demand of the Confederation made through the Resolution.

Please treat the matter as urgent.

Thanking you,

Yours faithfully,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No.1410/59/10                             26.01.2010

To,

The Governor,

Reserve Bank of India,

Central Office,

Shahid Bhagat Singh Road,

MUMBAI – 400 001

Dear Sir, 

FUTURE OF CATHOLIC SYRIAN BANK

MERGER WITH THE PUBLIC SECTOR BANK

The Executive Committee of the All India Bank Officers’ Confederation which met at Panjim:Goa on 17^th of February 2010, had an occasion to discuss the future of the Catholic Syrian Bank in the background of certain moves made by some of the Private Banks to take over the same.  The Executive Committee members were very much concerned to note these developments in view of the fact that the Catholic Syrian Bank is one of the oldest Private Sector Banks functioning in the same way as that of a Public Sector Banks in regard to the extension of various facilities to their clientele.  The Bank has branches predominantly in the State of Kerala and Tamil Nadu which is catering to the needs of the rural population in the interior parts it is serving.  It is also discharging its social responsibilities on par with the Public Sector Banks functioning in these areas.  Hence, any attempt to take over this bank by another Private Sector Bank will only result in denying the credit facilities and also the banking facilities to the people it is serving at present on the same lines as that of a Public Sector Banks.

The members of the Executive Committee were therefore of the unanimous view that the Government/Reserve Bank of India should intervene and take necessary steps to merge the Catholic Syrian Bank with a Public Sector Bank operating in the country so that the benefit of banking facilities including the priority lending and other social obligations discharged by a Public Sector Bank are available to the customers of Catholic Syrian Bank. The Executive Committee of the Confederation accordingly adopted a resolution for the consideration of the Government/Reserve Bank of India.

We therefore request you to kindly look into the matter and take necessary steps to meet the demand of the Confederation made through the Resolution.

Please treat the matter as urgent.

Thanking you,

Yours faithfully,

SD/-

(G.D. NADAF)

GENERAL SECRETARY

AIBOC CIRCULAR NO. 18 DATED 26.02.2010

AIBOC issued its circular No. 18 on increasing Gratuity Ceiling from Rs. 3.5 lacs to Rs.10.00 lacs. We are reproducing the same here for our readers.

CIRCULAR NO.18               26.02.2010 

TO ALL AFFILIATES/MEMBERS:

CONFEDERATION DEMANDS ENHANCEMENT OF CEILING ON GRATUITY FROM RS 3.5 LACS TO RS.10.00 LACS - AMENDMENT SHOULD BE MADE EFFECTIVE FROM 1.1.2006 - RESOLUTION ADOPTED FORWARDED TO THE GOVERNMENT

The Executive Committee of All India Bank Officers’ Confederation met at Panjim:Goa on 17^th February 2010, had an occasion to discuss the issue of the ceiling on Gratuity and the implementation of the enhancement in the ceiling from Rs.3.5 lacs to Rs.10.00 lacs in respect of the Public Servants retrospectively by way of administrative notification pending amendment to the Payment of Gratuity Act 1972 with effect from 1.1.2006.

The members of the Committee were of the unanimous view that the Government should be urged to extend a similar concession in respect of the Bank Officers as well as done in the case of their own employees pending the amendment in regard to the proposed enhancement of ceiling under the act.  The members were also of the unanimous view that the service rules of the Bank Officers are akin to that of the civil servants and hence on the same logic the Bank Officers should also be extended the same concession under the Gratuity Act without any discrimination.

After detailed deliberations, it was unanimously decided to adopt a resolution to this effect and forward the same.  Accordingly, a resolution was adopted in the meeting.  A copy of the same has been forwarded to the Hon’ble Minister of Finance and also the Hon’ble Minister of Labour, Government of India, New Delhi for their favorable consideration.  A copy of the communication sent to them along with the copy of the resolution is enclosed.

All our affiliates/members are requested to await further developments in the matter.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No.1410/50/10                                                      23.02.2010

To,

Sri. Pranab Kumar Mukherjee

Hon’ble Finance Minister,

Government of India,

South Block,

Parliament House,

New Delhi.

Dear Sir,

ENHANCEMENT IN CEILING ON GRATUITY FROM RS.3.5 LACS TO RS.10 LACS - AMENDMENT TO BE MADE EFFECTIVE FROM 1.1.2006

The Executive Committee of All India Bank Officers’ Confederation which met on 17^th February 2010 at Goa has unanimously resolved to seek early clearance of the amendment to the Payment of Gratuity Act 1972 enhancing the ceiling from Rs.3.5 lacs to Rs.10 lacs payable with effect from 1.1.2006.  The members appreciated the gesture on part of the Government in extending the benefit of the enhanced ceiling on Gratuity to their employees pending amendment to the Gratuity Act by way of an administrative order.  The Executive committee, therefore urges the Hon’ble Minister of Finance to take a similar view in respect of the employees and officers working in the Banking Industry and issue a suitable administrative order to this effect.  The Executive Committee also urges upon the Hon’ble Minister to take steps to effect the amendment from 1.1.2006.

A copy of the resolution passed is enclosed.

We request your kind intervention and necessary action in the matter.

Please treat the matter as urgent.

Thanking you sir,

Yours faithfully,

(G.D. NADAF)

GENERAL SECRETARY

Encl: a/a

RESOLUTION:-

ENHANCEMENT IN CEILING ON GRATUITY FROM RS.3.5 LACS TO RS.10 LACS - AMENDMENT TO THE CENTRAL GRATUITY ACT 1972 TO BE MADE EFFECTIVE FROM 1.1.2006

One of the issues which came up for discussion in the Executive Committee of All India Bank Officers’ Confederation at its meeting held at Goa on 17^th February 2010 was the recent improvements that were effected in regard to the ceiling on Gratuity payable to the Public Servants by the Government, keeping in tune with the recommendations of the 6^th Pay Commission.  The Pay Commission has gone into the details of the various factors that are inbuilt in deciding the quantum of Gratuity and the Ceiling prescribed in the Gratuity Act.  The Commission took a positive view and has taken into account the increasing cost of living and the inflation rate that was responsible in eroding the real wages of the Public Servants and accordingly recommended that the Gratuity Ceiling payable under the Payment of Gratuity Act-1972 should be raised from Rs.3.5 lacs to Rs.10 lacs.   In a most positive manner the Central Government as a model employer has taken the recommendations in the right spirit and has extended the benefit of the enhanced ceiling of Rs.10 lacs to their employees with effect from 1.1.2006 pending amendment to the Central Gratuity Act 1972 for the purpose.  The Public Servants are thus given a great relief by protecting the erosion in the value of their superannuation benefits at the time of their retirement.

The Pay Commission Recommendations were given effect from 1.1.2006 and an administrative order was issued by the Government to provide the benefit of higher ceiling in Gratuity raising the same from Rs.3.5 lacs to Rs.10 lacs retrospectively to all the retirees from the same date pending the amendment to the Gratuity Act.  The members of the Executive Committee appreciated this gesture on part of the Government and applauded their concern to the retirees from the Government service.  The members also expressed their full faith in the Government’s attitude towards the employees of the Public Sector units including the Banking Industry whose service conditions are akin to that of the Civil Servants.  While, the members were confident that the Government is making all out efforts to bring an amendment to the Gratuity Act, they have expressed their serious concern about the delay in moving the amendment to the Gratuity Act, giving effect to the enhancement of the Ceiling as proposed by the 6^th Pay Commission and also the need for giving it a retrospective effect, to avoid discrimination between the Government employees and the employees of the Banking Industry.  The Committee therefore urges the Government of India to take note of the concern of the Bank employees and see that the amendments are passed at the earliest giving the benefit of enhancement effective from 1.1.2006.  The Government should also send an administrative order to all the Public Sector units including the Banking Industry to the effect that those who have retired from 1.1.2006 should be paid the enhanced gratuity amount as paid in respect of the public servants pending the amendment to ensure that the benefit is passed on to all those who have already retired pending the amendment to the Gratuity Act.

The members of the Executive Committee of All India Bank Officers’ Confederation are hopeful of a positive action on part of the Government in this regard.

Resolution moved by Com.A.K.Motayed, Jt.General Secretary.

Resolution seconded by Com.J.D.Sharma, Dy.General Secretary.

Resolution was adopted unanimously.

Sd/-

(K.S. SHETTY)

PRESIDENT

No.1410/57/10                                                                         26.02.2010

To,

Sri. Mallikarjuna Kharge,

Hon’ble Minister for Labour,

Government of India,

New Delhi.

Dear Sir,

ENHANCEMENT IN CEILING ON GRATUITY FROM RS.3.5 LACS TO RS.10 LACS - AMENDMENT TO BE MADE EFFECTIVE FROM 1.1.2006

The Executive Committee of All India Bank Officers’ Confederation which met on 17^th February 2010 at Goa has unanimously resolved to seek early clearance of the amendment to the Payment of Gratuity Act 1972 enhancing the ceiling from Rs.3.5 lacs to Rs.10 lacs payable with effect from 1.1.2006.  The members appreciated the gesture on part of the Government in extending the benefit of the enhanced ceiling on Gratuity to their employees pending amendment to the Gratuity Act by way of an administrative order.  The Executive committee, therefore urges the Hon’ble Minister for Labour to take a similar view in respect of the employees and officers working in the Banking Industry and issue a suitable administrative order to this effect.  The Executive Committee also urges upon the Hon’ble Minister to take steps to effect the amendment from 1.1.2006.

A copy of the resolution passed is enclosed.

We request your kind intervention and necessary action in the matter.

Please treat the matter as urgent.

Thanking you sir,

Yours faithfully,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

Encl: a/a

RESOLUTION:-

ENHANCEMENT IN CEILING ON GRATUITY FROM RS.3.5 LACS TO RS.10 LACS - AMENDMENT TO THE CENTRAL GRATUITY ACT 1972 TO BE MADE EFFECTIVE FROM 1.1.2006

One of the issues which came up for discussion in the Executive Committee of All India Bank Officers’ Confederation at its meeting held at Goa on 17^th February 2010 was the recent improvements that were effected in regard to the ceiling on Gratuity payable to the Public Servants by the Government, keeping in tune with the recommendations of the 6^th Pay Commission.  The Pay Commission has gone into the details of the various factors that are inbuilt in deciding the quantum of Gratuity and the Ceiling prescribed in the Gratuity Act.  The Commission took a positive view and has taken into account the increasing cost of living and the inflation rate that was responsible in eroding the real wages of the Public Servants and accordingly recommended that the Gratuity Ceiling payable under the Payment of Gratuity Act-1972 should be raised from Rs.3.5 lacs to Rs.10 lacs.   In a most positive manner the Central Government as a model employer has taken the recommendations in the right spirit and has extended the benefit of the enhanced ceiling of Rs.10 lacs to their employees with effect from 1.1.2006 pending amendment to the Central Gratuity Act 1972 for the purpose.  The Public Servants are thus given a great relief by protecting the erosion in the value of their superannuation benefits at the time of their retirement.

The Pay Commission Recommendations were given effect from 1.1.2006 and an administrative order was issued by the Government to provide the benefit of higher ceiling in Gratuity raising the same from Rs.3.5 lacs to Rs.10 lacs retrospectively to all the retirees from the same date pending the amendment to the Gratuity Act.  The members of the Executive Committee appreciated this gesture on part of the Government and applauded their concern to the retirees from the Government service.  The members also expressed their full faith in the Government’s attitude towards the employees of the Public Sector units including the Banking Industry whose service conditions are akin to that of the Civil Servants.  While, the members were confident that the Government is making all out efforts to bring an amendment to the Gratuity Act, they have expressed their serious concern about the delay in moving the amendment to the Gratuity Act, giving effect to the enhancement of the Ceiling as proposed by the 6^th Pay Commission and also the need for giving it a retrospective effect, to avoid discrimination between the Government employees and the employees of the Banking Industry.  The Committee therefore urges the Government of India to take note of the concern of the Bank employees and see that the amendments are passed at the earliest giving the benefit of enhancement effective from 1.1.2006.  The Government should also send an administrative order to all the Public Sector units including the Banking Industry to the effect that those who have retired from 1.1.2006 should be paid the enhanced gratuity amount as paid in respect of the public servants pending the amendment to ensure that the benefit is passed on to all those who have already retired pending the amendment to the Gratuity Act.

The members of the Executive Committee of All India Bank Officers’ Confederation are hopeful of a positive action on part of the Government in this regard.

Resolution moved by Com.A.K.Motayed, Jt.General Secretary.

Resolution seconded by Com.J.D.Sharma, Dy.General Secretary. 

Resolution was adopted unanimously.

Sd/-

(K.S. SHETTY)

PRESIDENT