AIBOC CIRCULAR NO. 153 DATED 09.11.2010

AIBOC issued its circular No. 153 dated 9^th November 2010 on special allowance for officers working in rural branches. We are reproducing the same here for our readers.

CIRCULAR NO:153                                  9^th NOVEMBER, 2010

TO ALL AFFILIATES/MEMBERS:

SPECIAL ALLOWANCE FOR OFFICERS WORKING IN RURAL BRANCHES

The Department of Public Enterprises has worked out a proposal giving incentives to Officers working in Public Sector Units set-up in far-flung rural areas. This proposal covers the officers working in rural branches of nationalised banks.  We have addressed a letter to the Chairman, IBA to extend the incentives to Officers of Banks working in far-flung rural areas. We have annexed a copy of the letter to this Circular.

The letter is self-explicit and we will keep our affiliates and members informed of the further developments.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No./1452/370/10                                                                                   09.11.2010

To,

The Chairman,

The Indian Banks’ Association,

World Trade Centre Complex,

Centre 1, 6^th Floor, Cuffe Parade,

MUMBAI – 400 005.

Dear Sir,

SPECIAL ALLOWANCE FOR OFFICERS WORKING IN RURAL BRANCHES

It has appeared in the newspapers columns that the Department of Public Enterprises (DPE) has worked out a proposal for giving incentives to officers, if they agree to serve in far-flung rural areas. In the Banking Industry, an officer of the Bank shall have to undergo a minimum of 2 years service in a rural branch or minimum service of 3 years in a rural and/or semi urban branch to become eligible for promotion from MMG Scale III to SMG Scale IV.  But, the rural service undergone by the officers does not entitle them for any monetary incentive. As a consequence, there is reluctance on part of the Officers to go to the rural branches, especially the branches located in far flung, remote areas and as a consequence many rural branches go without a permanent branch head.

In this background, it is very essential to incentivise the officers posted to rural branches, besides giving weightage for promotion to higher scale. This will certainly act as a sop to young officers to go to rural branches and reach the banking services in the hitherto unbanked areas.

The DPE has recommended a special allowance amounting to 10% of the basic pay and we request you to introduce the incentive scheme in the Banking Industry for the officers working in the rural branches identified in conformity with the guideline issued by Reserve Bank of Inida. This will motivate the young officers to go to rural branches and implement the programmes of the Government for generating employment opportunities, poverty alleviation, financial inclusion, lending to priority sectors such as Agriculture, small and medium enterprises etc.

We request you to arrange for a meeting where we can present our comprehensive views on the scheme.

Thanking you,

Yours faithfully,

Sd/-

(G.D.NADAF)

GENERAL SECRETARY