:::::SRI S.B. RODE, OUR BELOVED PRESIDENT, AICBOF AND OFFICER DIRECTOR ON THE BOARD OF CENTRAL BANK OF INDIA HAS BEEN COOPTED AS GENERAL SECRETARY, AICBOF IN E.C. MTG. HELD AT MUMBAI ON 24.02.2014:::::MR. S.C. GUPTA, GEN. SECRETARY OF OUR AHMEDABAD UNIT HAS BEEN COOPTED AS PRESIDENT, AICBOF::::::WE CONGRATULATE THEM AND WISH THAT THE OFFICERS' MOVEMENT IN CENTRAL BANK OF INDIA WILL BE TAKEN TO NEW HEIGHTS:::::LONG LIVE CBOA:::::LONG LIVE AICBOF::::::LONG LIVE AIBOC:::::

AIBOC CIRCULAR NO. 125 DATED 28TH AUGUST 2010

AIBOC issued its circular No. 125 on 2nd option for pension to the officers who retired under VRS of the individual banks. We are reproducing the same here for our readers.

CIRCULAR NO: 125                      28th AUGUST, 2010

TO ALL AFFILIATES/MEMBERS:

ANTOHER OPTION TO JOIN THE PENSION SCHEME TO THOSE WHO DID NOT OPT FOR PENSION EARLIER - THE CASE OF OFFICERS WHO RETIRED UNDER VOLUNTARY RETIREMENT SCHEME OF THE INDIVIDUAL BANKS

We have addressed a letter to the Chairman, Indian Banks’ Association on the captioned issue, urging upon him to accord an option to those officers who retired under Voluntary Retirement Scheme of individual Banks to join the Pension Scheme now settled as per the Joint Note dated 27.04.2010.

A copy of the letter is annexed to this and the same is self-explicit.

We request the members to have patience.

With warm greetings,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY

No./1452/302/10                                           28.08.2010

To,
The Chairman,
The Indian Banks’ Association,
World Trade Centre Complex,
Centre 1, 6th Floor, Cuffe Parade,
MUMBAI – 400 005.

Dear Sir,

JOINT NOTE WITH OFFICERS’ ORGANISATIONS FOR EXTENDING ANOTHER OPTION TO JOIN THE PENSION SCHEME TO THOSE WHO DID NOT OPT FOR PENSION EARLIER

We draw your kind attention to the letter issued by IBA vide CIR/HR&IR/G-2/665/90/2010-11/999 dated 10.08.2010, Para 13, wherein, interalia, it is indicated that, “In terms of Memorandum of settlement dated 27th April, 2010, in the case of workmen employees and Joint Note dated 27th April, 2010, in case of officer employees, those who ceased to be service on account of retirement on superannuation, death or on account of VRS under special scheme prior to 27th April, 2010 but after 29th September, 1995 from Nationalised Banks and after 26th March, 1996 from Associated Banks of State Bank of India are eligible to opt for joining the Pension Scheme now as retired employees subject to terms and conditions stipulated.  Those who were in the service of the Banks as on 27th April, 2010 will be eligible to join the Pension Scheme as serving employees subject to the terms and conditions”. 

We wish to inform you that the above statement totally negates the contents of the Joint Note on agreed conclusions reached on 27.04.2010 between Indian Banks’ Association on behalf of the Managements of Banks and All India Bank Officers’ Confederation (AIBOC). Nowhere in the original Joint Note dated 27.04.2010 it is mentioned that the Officers who ceased to be in service on account of retirement on superannuation, death or on account of VRS under special scheme; only are eligible to opt for joining the pension scheme now, as retired employees and the above position is in total contradiction of the agreed conclusions in the Joint Note dated 27.04.2010.

We draw your kind attention, to the Joint Note dated 27.04.2010, item No. 3(a), under the caption “The parties held various rounds of discussions in the matter and have now reached conclusions as set out hereunder:

Another Option for joining the existing Pension Scheme shall be extended to those officers who “were in the service of the Bank prior to 29th September, 1995 in case nationalised Banks/26th March, 1996 in case of Associate Banks of State Bank of India and retired after that date and prior to the date of this Joint Note”.

The Joint Note makes a mention about the officers, who retired under special Voluntary Retirement Scheme: 2000 mooted by the Govt. of India.  Please refer clause No.8 of the Joint Note, which states that:

“Pension/Family Pension to those who opt to join the Pension Scheme complying with the terms of this Joint Note shall be payable with effect from 27th November, 2009, provided that Officers who “retired” after that date shall get pension from the respective dates of their retirement.  All the Regulations of the Bank Employees’ Pension Regulations 1995/1996 shall be applicable to those who opt for the Pension Scheme in terms of this Joint Note except to the extent mentioned in the foregoing clauses of this Joint Note”.

As the Joint Note provisions are bound by the Bank Employees’ Pension Regulations 1995/1996, all the “retirees” who retired from the service of the Banks during the period 29.09.1995 and 27.04.2010 are eligible to opt for the Pension Scheme introduced now.  It is pertinent to note here the provisions of the Bank Employees’ Pension Regulations 1995/1996, as to the definition of “Retirement”, eligibility criteria for opting for Pension etc.

We invite your kind attention to the following:

Chapter: I: Preliminary:
Definitions:

“Date of Retirement” means: “The last date of the month in which an employees attains the age of superannuation or the date on which he is retired by the Bank or the date on which the employee voluntarily retires or the date on which the officer is deemed to have retired”.

“Retirement” means cessation from Bank’s service:

Ø     On attaining, the age of “Superannuation” specified in service Regulations or settlements.
Ø      On “Voluntary Retirement” in accordance with provisions contained in Regulation 29 of these Regulations.
Ø      On “Premature retirement” by the Bank before attaining the age of superannuation specified in Service    Regulations or settlement.

Chapter V:              Classes of Pension: Regulation 29: Pension on Voluntary Retirement:

(i)                On or after the 1st day of November, 1993 at any time after an employee has completed twenty years of qualifying service he may, by giving notice of not less than three months notice in writing to the appointing authority, retired from service

Provided that this sub-regulation shall not apply to an employee who is on deputation or study leave abroad unless, after having been transferred or having returned to India he has resumed the charge of the post in India and has served for a period of not less than one year;

Provided further that this sub-regulation shall not apply to an employee who seeks retirement from service for being absorbed permanently in an autonomous body or a public sector undertaking or company or institution or body whether incorporated or not to which he is on deputation at the time of seeking voluntary retirement.

Provided that this sub-regula­tion shall not apply to an employee who is deemed to have retired in accordance with clause (I) of regulation 2.

(ii)               The notice of voluntary retirement given under sub-regulation (1) shall require acceptance by the appointing authority.

Provided that where the appointing authority does not refuse to grant the permission for retirement before the expiry of the period specified in the said notice, the retirement shall become effective from the date of expiry of said period.

(iii)              (a) An employee referred to in Sub-regulation may make a request in writing to the appointing authority to accept notice of voluntary retire­ment of less than three months giving reasons thereof

(b) On receipt of a request under clause (a), the appointing authority may subject to the provisions of sub-regulation (2), consider such request for the curtailment of the period of notice of three months on merits – and if it is satisfied that the curtailment of the period of notice will not cause any administrative inconvenience, the appointing authority may relax the requirement of notice of three months on the condition that the employee shall not apply for commutation of a part of his pension before the expiry of the period of notice of three months.

(iv)             An employees, who has elected to retire under this regulation and has given necessary notice to that effect to the appointing authority, shall be precluded from withdrawing his notice except with the specific approval of such authority; provided that the request for such withdrawal shall be made before the intended date of his retirement.

(v)              The qualifying service of an employee retiring under this regulation shall be increased by a period not exceeding five years, subject to the condition that the total qualifying service rendered by such employee shall not in any case exceed thirty-three years and it does not take him beyond the date of superannuation.

(vi)             Pension of an employee retiring under this regulation shall be based on the average emoluments as defined under clause (d) of regulation 2 of these regulations and the increase not ex­ceeding five years in his qualifying service shall not entitle him to any notional fixation of pay for the purpose of calculating his pension.

You may be aware of the fact that there is a provision in the Bank Officers’ Service Regulations 1976/1979 for taking “Voluntary Retirement” which was introduced in some Banks in the late 80’s. Rules regarding Voluntary Retirement of Officers under proviso to Regulation (1) of Officers’ service Regulations, make it abundantly clear that:

“a.         An Officer employees retiring voluntarily shall be entitled to all benefits available under the normal retirement in accordance with the provisions of Officers’ Service Regulations, including encashment of accumulated privilege leave as also all other terminal benefits”.

Therefore, it is very clear that the Bank’s Voluntary Retirement Scheme is as per the Officers’ Service Regulations which are approved by the Central Government.  Thus, it can be concluded that the VRS Scheme introduced by the Banks is the Government approved Scheme.

From the above it is crystal clear that an officer having completed 20 years of service and who gives 3 months notice to retire from service and is permitted to retire under VRS, is entitled for pension option now.

From the foregoing it is crystal clear that the “retirees” for the purpose of opting for Pension as per the Joint Note dated 27.04.2010 comprise:

Ø      Officers who have retired from the service of the Bank on attaining superannuation i.e., after attaining 58/60 years of age as per Service Regulations.

Ø      Officers who have retired under the “Voluntary retirement Scheme” of the Bank after completing 20 years of service, in conformity with Officers’ Service Regulations

Ø      Officers who retired voluntarily in conformity with the provisions of Regulation 29 of Bank Employees’ Pension Regulations, 1995/1996 under the Voluntary Retirement Schemes of the Banks.

Ø      Officers who retired from the service of the Bank on account of voluntary Retirement under special scheme: 2000 after rendering a minimum service of 15 years.

Ø      Officers who were retired by the Bank on account of orders of the Bank to retire prematurely including employees who are compulsorily retired from service as a penalty on or after 29.09.1995 but before 27.04.2010.

In this background your communication restricting the Pension Option only the Officers who:

Ø      retired on superannuation

Ø      death

Ø      retired on account of VRS under special scheme

and precluding the officers who voluntarily retired from the service of the Bank is a unilateral, arbitrary decision and therefore we request you to issue a corrigendum to your circular letter dated 10.08.2010 to the above effect immediately. We have been informed by some of our affiliates that you have offered clarification to the effect that the officers who have retired under normal Voluntary Retirement Scheme of the Bank are not eligible for pension, has come as a shocking surprise to us.

Moreover, the provisions of the Bipartite settlement dated 29.10.1993 have not been amended/modified or superseded by the Joint Note and therefore your communication dated 10.08.2010 is ultra-vires the Bank Employees’ Pension Regulations 1995.

We wish to reiterate that your communication is totally misleading, in abject contradiction of what is stated in the Joint Note dated 27.04.2010 and in contravention of the Bank Employees’ Pension Regulations 1995/1996.  It is totally unjust and discriminatory and we once again request you to correct the position and issue a communication stating that the officers who have retired under Voluntary Retirement Schemes of the individual Banks, the Officers who are prematurely retired on account of imposition of punishment such as Compulsory Retirement etc., are also eligible to opt for Pension in conformity with the Joint Note dated 27.04.2010. 

We request you to arrange for a meeting with us to have a thorough discussion on this matter, which calls for your immediate attention.

An early action in this regard is highly appreciated.

Thanking you,
Yours faithfully,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY

PNB, UNION BANK HIKE DEPOSIT RATES BY UPTO 1 PC

Union Bank of India increased their term deposit rates by up to one percentage point depending on the maturity.

Interest rate for deposits from 91 days to less than six months has been increased by 1 per cent to 5.50 per cent while for deposits of one year but less than two years' maturity has been increased by 0.25 per cent.

Earlier in the day, Punjab National Bank hiked its deposit rates on two maturities by 25 basis points. The new rate for 180-270 days term deposit would be 6 per cent from the existing 5.75 per cent while 1-2 years fixed deposit would be 7 per cent.

The rate hikes by both the banks would come into effect from September 1.

After the rate hike, deposits of between 15 to 45 days will fetch an interest of 3.5 per cent per annum, up 0.50 per cent while deposit rates of six months but less than nine months have been hiked to 5.75 per cent from the earlier 5 per cent.

Deposits for between nine months and one year are up 0.25 per cent from 5.75 per cent to 6 per cent.

Meanwhile, UBI has also introduced a new scheme called "Union Million Deposit" which will get an interest of 7.80 per cent. Under the new scheme, a recurring deposit of 5,510 per month for 10 years or a one time deposit of Rs 4,61,861 will get the depositor Rs 10 lakh after ten years.

INCREASED EXEMPTION LIMITS UNDER DTC TO BENEFIT 96PC TAXPAYERS

The proposed increase in exemption limits in the Direct Taxes Code (DTC) Bill will benefit an overwhelming 96 per cent of taxpayers, who earn less than Rs 5 lakh a year.

The DTC Bill, which proposes to exempt income up to Rs 2 lakh from payment of income tax, compared to the existing limit of Rs 1.6 lakh, was introduced by Finance Minister Pranab Mukherjee in the Lok Sabha today.

"The objective of increasing the exemption level and providing little more relief at the low end has been targetted to get benefits across to the largest number of taxpayers," said Revenue Secretary Sunil Mitra.

The government plans to roll out the new direct tax regime from April 1, 2012.

Briefing newsmen after the Bill was tabled in Parliament, Mitra said around 96 per cent of India's taxpayers are in the earning bracket of Rs 1 lakh to Rs 5 lakh.

"95.75 per cent, to be precise, of India's 3.25 crore tax payers are in the slab of Rs 1 lakh to Rs 5 lakh of income. They pay around 30 per cent of our total taxes.

"The slab of Rs 8 lakh and above accounts for 2.2 per cent of our taxpayers, but they pay 60 per cent of the taxes, that leaves 10 per cent which is in the Rs 5 lakh to Rs 8 lakh," Mitra said.

According to the Bill, annual income from Rs 2-5 lakh is likely to attract tax at the rate of 10 per cent, while the Rs 5-10 lakh bracket will be taxed at 20 per cent and above Rs 10 lakh at 30 per cent.

At present, income between Rs 1.60 lakh and Rs 5 lakh attracts 10 per cent tax, while the rate is 20 per cent for the Rs 5-8 lakh bracket and 30 per cent for above Rs 8 lakh.

People earning more than Rs 10 lakh a year may save up to Rs 41,040 in income tax, if the slabs proposed by the DTC Bill come into effect, experts said.

Similarly, the tax burden would reduce by Rs 21,540 for those earning an annual income between Rs 5 lakh and Rs 10 lakh, while those making Rs 2 lakh to 5 lakh could be richer by Rs 7,660, Deloitte Haskins & Sells Partner Neeru Ahuja said

LOAN GROWTH REMAINS MUTED, BANKS SWITCH TO COMMERCIALS

Even as loan growth remains muted, banks have increased funding to corporates by way of investments in commercial paper (CP) and bonds, which have risen 20%.

Investments in corporate bonds also termed as non-SLR (statutory liquidity ratio) investments, have gone up Rs 23,080 crore or 20% since end March 2010 from Rs 115,906 crore to Rs 138,986 crore in August 13, according to the data latest released by RBI.

However, investments had dipped Rs 9,359, or 9%, in the year-ago period from Rs 104,773 crore to Rs 95,414 crore. These investments, however, exclude investments in mutual funds.

Data released by the central bank indicates that investments in CPs have gone up the steepest by Rs 9,854 crore or 40% from Rs 24,791 crore to Rs 34,645 crore. While that in stocks and bonds have gone up by Rs 4,535 crore and Rs 8,690 crore, respectively. Moreover, banks have a relatively higher exposure in these instruments.

From a corporate’s perspective, with the base rate system in place, their negotiating power for finer rates in case of short-term loans has significantly dipped compared to the system prevailed in the earlier BPLR (benchmark prime lending rate).

In the earlier system, corporates could negotiate rates at a significant discount to the BPLR. However, with the new base rate system in place, such discounts have been done away with. As a result, corporates are choosing to raise short-term funds through the CP route.

Outstanding CP issuances have risen by over Rs 30,000 crore this year to over Rs 100,000 crore as of mid-July— almost 45% higher to that prevailing in the year-ago period.

CENTRAL BANK OF INDIA SIGNS MOU WITH DSP BLACKROCK INVESTMENT MANAGERS

Central Bank of India, a leading Nationalized Bank of the country has signed a distribution agreement with DSP BlackRock Investment Managers in Mumbai on 25th August 2010. In terms of the agreement the Bank will distribute DSP BlackRock Mutual Fund Schemes through its network of over 3600 Branches spread across the country.

CREDIT OFFTAKE IN BANKING SYSTEM STILL LOW, SAYS BHATT

According to Mr. O.P. Bhatt, Chairman, State Bank of India, credit offtake in the banking system is still low and the present rate of 19 to 20 per cent is not enough to increase interest rates.

He said the reason could be that there are other sources of money available to the system rather than from banks.

 He expected the offtake to pick up during the September month with Government's calendar borrowings.

Bhatt said they will go slow on the overseas acquisitions until there is more clarity on the global economy situation. However SBI will continue to open 20 to 30 overseas branches in this fiscal.

To question on the impact of the base rate system on the bank's performance, he said people accepted the system and the bank is comfortable.

RELIEF TO TAX PAYERS IN OFFING: GOVT TO TABLE DTC BILL TOMORROW

The Government will table the much-awaited Direct Taxes Code (DTC) bill in the Lok Sabha tomorrow, that is expected to provide relief to income tax payers, both personal and corporate, though not as much as was proposed earlier in the draft.

The government is quite confident of replacing archaic Income Tax Act with DTC from April one, 2011.

Finance Minister Pranab Mukherjee has said he would announce the slabs for personal income tax while tabling the bill and has refused to share the details before that.

He has only said so far that the exemption limit will be raised from the current Rs 1.6 lakh in a year to Rs two lakh.

However, sources said that as per the bill, approved by the Cabinet on Thursday, income between Rs 2-5 lakh is likely to attract 10 per cent tax; for Rs 5-10 lakh it will be 20 per cent and above Rs 10 lakh, 30 per cent.

Currently income between Rs 1.6-5 lakh attracts 10 per cent tax; between 5-8 lakh, 20 per cent and beyond 8 lakh, 30 per cent.

The proposed tax slabs are much lower than originally proposed in the draft DTC bill -- 10 per cent for Rs 1.6 lakh to Rs 10 lakh, 20 per cent between Rs 10-25 lakh and 30 per cent for income above Rs 30 lakh.

Compared to the current tax slabs, the proposed rates will make tax payers earning Rs 15 lakh a year richer by Rs 41,040.
 
Similarly, tax burden would reduce by Rs 21,540 for those earning between Rs 5 lakh and Rs 10 lakh annually, while those earning between Rs 2-5 lakh could be richer by Rs 7,660, Deloitte Haskins & Sells Partner Neeru Ahuja said.

The tax slabs are proposed to be reduced from the draft stage, because the government is expected to retain income tax exemption on interest on housing loans up to Rs 1.5 lakh a year, under pressure from certain quarters. 

Also, earlier proposals of taxing long term savings like provident funds at the time of withdrawal have been dropped.

DTC aims at reducing tax rates, and cutting exemptions. With the government getting adverse feedback on the proposals to withdraw some exemptions, it will have to calibrate tax rates to save the government kitty.

The DTC bill also proposes to retain corporate tax at 30 per cent, but without surcharge and cess. With them, the current tax liability on corporates comes to over 33 per cent.

Tax experts said this proposal will provide much needed relief to the industry and bring the levy on par with global standards, though the industry wanted it to be reduced to 25 per cent. The government also conceded to the industry demand not to levy minimum alternate tax (MAT) on assets but book profits of the companies. So, it had to dilute earlier proposal of cutting corporate tax to 25 per cent, sources said. 

However, the government raised MAT to 20 per cent from 18 per cent, but it should not make much of a difference since with surcharge and cesses, MAT currently comes to 19.33 per cent.

MAT is tax imposed on profit earning companies that do not fall under the tax net because of various exemptions.

Sources said it is for Parliament to decide whether DTC will be the money bill or ordinary legislation. 

In case, it is money bill, the government is required to pass it in the Lok Sabha only.

As such, the government is confident that the DTC could be enacted from next fiscal.

PNB LAUNCHES CROSS-BORDER REMITTANCE SOLUTION

Punjab National Bank has launched 'PNB NRI REMIT-India', an online cross-border remittance solution to send money from the US to India.

The bank has launched the online cross-border remittance solution in association with The Bank of New York Mellon, New York.

Besides, the bank also launched RET AD, an online reporting system meant for bank branches authorised to deal in foreign exchange.

An online base system, under this, branches can report their foreign exchange transaction, sale or purchase through the system.

The bank also launched the World Travel Card in association with MasterCard. The PNB World Travel Card has been designed as a pre-paid wallet for persons travelling abroad that can be used outside India.

This card is available in three currencies--Dollar, Euro and Pound. 

PUNJAB & SIND FILES PAPERS WITH SEBI FOR IPO

Punjab & Sind Bank (PSB) on Friday filed a draft red herring prospectus (DRHP) with SEBI for an initial public offering (IPO).

The IPO is likely to hit the market in end-November or early-December this year, a bank official said.

The bank proposes to offer up to 4 crore equity shares of Rs 10 each for cash at a price to be discovered through a 100 per cent book-building process.

PSB is looking to mop up at least Rs 500 crore through the IPO, which is likely to bring down the Government stake in the bank to 82 per cent. PSB will be the last of the nationalised banks to list its equity on the stock exchanges.

Its equity capital stood at Rs 183 crore. PSB also has a preference capital of Rs 200 crore.

SBI Capital Markets, Enam Securities and ICICI Securities are the book running lead managers for the proposed IPO.

IDBI BEST PUBLIC SECTOR BANK FOR SME FINANCING: D&B

IDBI Bank has received the best public sector bank award for financing small and medium enterprises (SMEs) from global business information provider Dun and Bradstreet.

"IDBI Bank has developed a special business model to serve the SMEs in the country that has enabled the bank to develop a quality SME portfolio through a dedicated streamlined credit decision process," said T. R. Bajalia, executive director and head (SME Group), IDBI Bank.

The award was presented to IDBI Bank at the "Dun & Bradstreet - Polaris Software Banking Awards 2010" here.

D&B India developed a proprietary quantitative model based on various parameters for identifying the top banks across the spectrum. The model is based on the twin premise of recognising the size and growth of the banks.

For this purpose, D&B India identified a number of crucial parameters related to business, profitability, network, priority sector lending, asset quality, global business etc relevant to each award category.

The final ranking of the banks was arrived at using a composite score of these weighted parameters. The information has been collated from Reserve Bank of India (RBI) documents and annual reports of the banks.

SUNIL MITTAL, GM RAO MAY FIND BERTH IN NEW RBI BOARD

RBI’s central board is set to see a total revamp with a host of members completing their four-year term. Industrialist Sunil Mittal of the Bharti group and GM Rao of GMR are likely to be the new faces in the reconstituted board. According to sources, the two businessmen have been sounded out for their consent for being considered for nomination.

The government had last reconstituted the central bank’s board in June 2006. At that time, Wipro chairman Azim Premji, Aditya Birla Group of Companies chairman Kumar Mangalam Birla, Ambuja Cement chairman Suresh Kumar Neotia and Sanjay Labroo of Asahi Glass were inducted as members in place of Ratan Tata, NR Narayana Murthy and KP Singh, who had retired.

Besides the industrialists, there will be other retirements as well although it is not clear whether any member will be reappointed. In 2006, Chartered Accountant YH Malegam, Supreme Court Advocate HP Ranina and Ashok S Ganguly, member, Investment Commission and Knowledge Commission, were reappointed.

Sources said there is a likelihood that the entire board may change, in which case the central bank will lose some long-standing experts like Mr Malegam, who have outlasted several governors and has been the most active member on the board of the central bank.

The government has the powers to nominate 10 directors on the RBI board as per section 8(1)C of the RBI Act, 1934. According to the RBI Act, the central board shall include the governor and at the most four deputy governors, four directors nominated from RBI local boards, 10 directors nominated by the government and one bureaucrat also to be nominated by the government. Most of the industrialists and experts are nominated by the government under Section 8(1)C of the Act, which provides for the appointment of 10 nominees.

While the board does not have any role in monetary policy, it is the ultimate body that governs the working of RBI. The central bank’s HR policies and employee benefits are determined by the board.

PSBS WROTE OFF LOANS WORTH RS 10,966 CR IN FY10: FINMIN

The government said public sector banks wrote-off loans worth Rs 10,966 crore from their books of accounts during the 2009-10 financial year.

State Bank of India had written off Rs 1,990 crore worth of loans, while Canara Bank and Punjab National Bank wrote off Rs 884 crore and Rs 853 crore, respectively during the year, Minister of State for Finance Namo Narain Meena said in a written reply to the Lok Sabha.

During 2008-09, the public sector banks had together written off Rs 7,217 crore in loans.

In reply to another question, Meena said to encourage people from the unorganised sector to voluntarily save for their retirement and to lower the cost of operations of the New Pension System (NPS) for such subscribers, the government has approved a 'Swavalamban' scheme in the Budget 2010-11.

Under the scheme, the government will contribute a sum of Rs 1,000 per year to each NPS account opened in the year 2010-11, he said.

This scheme will be available for persons who join the NPS with a minimum contribution of Rs 1,000 and a maximum contribution of Rs 12,000 per annum during the 2010-11 financial year and are not members of any statutory provident fund.

This scheme will be available for another three years and is targeted to benefit about 10 lakh NPS subscribers of the unorganised sector during the year 2010-11, he said.