AIBOC CIRCULAR NO. 2 DATED 08.01.2011

AIBOC issued its circular No. 2 on its meeting with the Chairman, IBA. We are reproducing the same here for our readers.

CIRCULAR NO.2                                                               8^th January, 2011

TO ALL AFFILIATES/MEMBER:

MEETING WITH THE CHAIRMAN, IBA

We called on the new Chairman, IBA Shri. O.P.Bhatt on 06.01.2011 at Mumbai, in a delegation led by Com.P.K.Sarkar, President along with S/Shri. G.D.Nadaf, General Secretary, K.D.Kheda, Advisor, P.V.Mathew, T.T.Natarajan, K.Anandakumar, Vice Presidents, Shri. T.N.Goel, Jt. General Secretary,         Shri. K.Ramakrishnan, CEO of the IBA was also present in the meeting. Shri.O.P.Bhatt gave us a patient hearing. The undersigned presented on the following issues pending with the IBA/Govt. for favourable disposal.

a)         2^ND OPTION ON PENSION INCLUSION OF:

i)                    CPF Optees retired under Bank level VRS.

ii)                  CPF Optees resigned after 20 years of service, in absence provision for VRS in OSR.

iii)                 Compulsory retirees.

iv)                Commutation to family members of CPF Optees died before 27.04.2010 and allowing them notional commutation.

v)                  I.T exemption on contribution to Pension Fund etc.

b)         STAFF LOANS:

            Enhancement in ceiling on Staff Housing Loan and Conveyance Loan, at concessional rate of interest.

c)            FESTIVAL ADVANCE:

            Revision in maximum ceiling on festival loan.

d)             COMPASSIONATE APPOINTMENT SCHEME:

            Follow-up with the Government of India for approval of draft Compassionate Appointment Scheme, evolved at IBA level in consultation with the UFBU.

e)            FITMENT FORMULA:

Revised fitment formula, on account of the 9^th bipartite, to promotees from clerical to officer cadre and also for promotees within the officers’ cadre.

f)            REGULATED WORKING HOURS:

           

            A long pending demand of Officers to fix working hours for officers and also to fix compensation for late sitting and working on Saturdays and Sundays, whenever, their services are required.

g)         5 DAY WEEK:

In view of changed scenario and availability of alternate channel of banking for transactions, Banking Industry should be brought under 5 day week.

h)             REIMBURSEMENT OF TRANSPORTATION CHARGES ON TRASFER ETC.

The present rates fixed for reimbursement of transportation charges for house hold articles, on transfer are not adequate to cover the actual expenses, hence the rates have to be revised.

i)            REIMBURSEMENT OF LODGING & BOARDING CHARGES:

Restoration of provision for reimbursement of lodging and boarding charges for a maximum period of 15 days on transfer at new place of posting, whenever leased accommodation was not provided.

j)             REVISION OF ROAD MILEAGE CHARGES FOR OFFICERS: WHENEVER THEY USE THEIR VEHICLE FOR OFFICIAL WORK:

The rate of road mileage charge to officers permitted to use their own vehicle on official duty is due for revision on account of exorbitant increase in the cost of fuel.

The Chairman, after listening to us and getting further information on the above issues from us and the IBA representatives, responded as follows:

a)      The issues concerning 2^nd Option on Pension will be taken up with the Govt. after collecting further data from the member Banks.

b)     Improvements to staff loans, Festival advances and compassionate appointment scheme are referred to the Government for approval.

c)      Revised fitment formula is under consideration of the IBA.

d)     Regulated working hours and 5 day week require further discussions.

e)     Revision on ceilings on Reimbursement of transportation charges on transfer, lodging and boarding charges, and road mileage charges etc., will be looked into.

We urged upon the Chairman to create a permanent forum at IBA level for periodical meetings with the IBA representatives on HR issues concerning the industry as a whole.

Comrades, the discussions took place in a co-ordial atmosphere.  It was our first courtesy call on the new Chairman of IBA and we are hopeful that, with our meticulous follow-up, the issues are likely to be sorted out in due course.

With warm greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

                                                                                                            

SBI TO SET UP 600 FINANCIAL INCLUSION CENTERS

In a bid to give back-end support to business correspondents operating in rural areas and also exercise administrative control on them, State Bank of India has decided to set up 600 financial inclusion centres across the country.

The move to set up FICs is aimed at powering the bank's drive to reach basic and affordable banking services to 12,421 out of the 72,315 unbanked villages (identified according to 2001 census) having a population of over 2,000 by March-end 2012.

According to the Government and the Reserve Bank of India's directive, banks, especially from the public sector, between them have to ensure that all identified villages have appropriate banking services by March-end 2012. These services have to be provided using the business correspondent (BC) and other models with appropriate technology back-up. 

As the FICs have been envisaged by SBI, each centre will provide the BCs back-end support services for opening ‘no frills account', processing applications for micro-credit (up to Rs 25,000) sourced by them, and cash management. Further, the centre will also keep tabs on the progress made by the BC in furthering the bank's financial inclusion plan.

Each FIC will support and control 25 BCs. India's biggest lender has marshalled the services of 14,000 odd BCs, including those working with third-party technology service providers, for fulfilling its financial inclusion mandate.

By March-end 2011, SBI will have 300 FICs. Last month, the bank set up 22 FICs in Andhra Pradesh and four in the National Capital Region. Overall, it will establish 600 FICs by March-end 2012.

Basic banking services

A BC undertakes activities such as identification of borrowers; collection and preliminary processing of loan applications including verification of primary information/ data; creating awareness about savings and other products and advice on managing money and debt counselling; submit loan applications to banks; disbursal of small value credit, recovery of principal/ collection of interest, collection of small value deposits, sale of micro insurance/ mutual fund products/ pension products/ other third party products and  receipt and delivery of small value remittances/ other payment instruments.

Among others, the entities that can function as BCs include NGOs/ MFIs set up under Societies/ Trust Acts, Post Offices, retired bank employees, ex-servicemen, retired teachers, retired government employees, individual kirana/ medical/ fair price shop owners, Public Call Office operators, agents of small savings schemes of Government of India/ Insurance Companies, individuals who own petrol pumps, and authorised functionaries of well run Self Help Groups (SHGs) linked to banks.

SOURCE: http://www.thehindubusinessline.com/todays-paper/tp-economy/article1047871.ece

SBI TO SET UP 600 FINANCIAL INCLUSION CENTERS

In a bid to give back-end support to business correspondents operating in rural areas and also exercise administrative control on them, State Bank of India has decided to set up 600 financial inclusion centres across the country.

The move to set up FICs is aimed at powering the bank's drive to reach basic and affordable banking services to 12,421 out of the 72,315 unbanked villages (identified according to 2001 census) having a population of over 2,000 by March-end 2012.

According to the Government and the Reserve Bank of India's directive, banks, especially from the public sector, between them have to ensure that all identified villages have appropriate banking services by March-end 2012. These services have to be provided using the business correspondent (BC) and other models with appropriate technology back-up. 

As the FICs have been envisaged by SBI, each centre will provide the BCs back-end support services for opening ‘no frills account', processing applications for micro-credit (up to Rs 25,000) sourced by them, and cash management. Further, the centre will also keep tabs on the progress made by the BC in furthering the bank's financial inclusion plan.

Each FIC will support and control 25 BCs. India's biggest lender has marshalled the services of 14,000 odd BCs, including those working with third-party technology service providers, for fulfilling its financial inclusion mandate.

By March-end 2011, SBI will have 300 FICs. Last month, the bank set up 22 FICs in Andhra Pradesh and four in the National Capital Region. Overall, it will establish 600 FICs by March-end 2012.

Basic banking services

A BC undertakes activities such as identification of borrowers; collection and preliminary processing of loan applications including verification of primary information/ data; creating awareness about savings and other products and advice on managing money and debt counselling; submit loan applications to banks; disbursal of small value credit, recovery of principal/ collection of interest, collection of small value deposits, sale of micro insurance/ mutual fund products/ pension products/ other third party products and  receipt and delivery of small value remittances/ other payment instruments.

Among others, the entities that can function as BCs include NGOs/ MFIs set up under Societies/ Trust Acts, Post Offices, retired bank employees, ex-servicemen, retired teachers, retired government employees, individual kirana/ medical/ fair price shop owners, Public Call Office operators, agents of small savings schemes of Government of India/ Insurance Companies, individuals who own petrol pumps, and authorised functionaries of well run Self Help Groups (SHGs) linked to banks.

SOURCE: http://www.thehindubusinessline.com/todays-paper/tp-economy/article1047871.ece

RBI GIVES BANKS MORE TIME FOR BASE RATE METHODOLOGY CHANGE

The Reserve Bank of India has allowed banks six more months' time, up to June-end 2011, to change the benchmark and methodology used in the computation of Base Rate. The move is aimed at helping banks stabilise the system of Base Rate calculation.

Banks have been following the Base Rate-linked credit pricing system since July 1, 2010. Base Rate, among others, is the sum of a bank's cost of deposits/ funds, unallocatable overhead costs and average return on net worth. Banks cannot lend below this rate, which currently ranges from 8 to 9.5 per cent.

SOURCE: http://www.thehindubusinessline.com/todays-paper/tp-economy/article1047870.ece

IDBI BANK HIKES RETAIL TERM DEPOSIT RATES BY UP TO 75 BPS

IDBI Bank announced an increase in the interest rate on certain retail term deposit schemes by up to 75 basis points, in line with similar steps by its peers.

The interest rates were hiked for deposits of both less than Rs 15 lakh as well as those of between Rs 15 lakh and up to Rs 1 crore.

In an additional offering to woo customers in the current stage when interest rates are on an upswing, IDBI Bank has decided to do away with penalties on premature withdrawals of fixed deposits. Currently, the bank levies a premature withdrawal penalty of 1 per cent.

In a rising interest rate scenario, customers prefer shifting their deposits to a bank offering higher interest rates and withdrawal of the penalty will help the bank attract more deposits.

Fresh deposits and renewals made after January 1, 2011 will not be charged a withdrawal penalty, the bank said.

The rate hike announced is from immediate effect and with the revision, the highest interest on retail term deposits would be 9.25 per cent.

For deposits of up to Rs 15 lakh, the maximum hike is of 75 basis points.

The interest rate on deposits with a maturity period of 270 days and above, but less than one year, has been increased by 75 basis points to 8 per cent.

Furthermore, the rates for deposits with a tenor of between one year plus one day and 499 days have been hiked by 35 basis points to 8.50 per cent.

For retail term deposits with a maturity period of 500 days, the bank has revised the interest rate to 9 per cent, up 50 basis points from the prevailing rate.

Another major hike will be effected on deposits with a tenor between 500 days and 1,099. The rate of interest on such retail term deposits has been increased by 75 basis points to 9 per cent.

Besides, for deposits with a maturity of 1,100 days, the new rate will be 9.25 per cent, up 50 basis points.

For deposits of up to Rs 15 lakh with a duration of seven year to ten years, the rates have been revised upward by 25 basis points to 8.75 per cent.

Other lenders such as Dena Bank, Kotak Mahindra Bank, State Bank of India and HDFC Bank among others have already hiked their retail term-deposit rates.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/idbi-bank-hikes-retail-term-deposit-rates-by-up-to-75-bps/articleshow/7217046.cms

PNB RAISES FIXED DEPOSIT RATES FOR NON-RESIDENTS

In line with increasing interest rates, Punjab National Bank announced hike in fixed deposits rates for non-residents denominated in rupee and foreign currencies by up to 10 basis points.

Interest rates on non-resident external rupee term deposit for two years to less than three years has been upped from 2.51 per cent to 2.60 per cent and for three years to five years from 2.79 per cent to 3.09 per cent.

Similarly for foriegn currency non-resident (B) deposits hike has been made for deposits in US dollar, pound sterling, euro, Australian dollar and Canadian dollar.

The hike in deposit rates for non-residents by PNB came in the wake of major lenders announcing increase in deposit rates.

Major lenders, including State Bank of India (SBI), ICICI Bank and HDFC Bank, had raised their deposit rates by up to one percentage point.

With inflation at 7.48 per cent in November and food inflation expected to increase it further in December, deposit rates in India are in fact not giving much returns adjusted for the rate of price rise.

In fact, RBI has been asking banks to raise deposit rates, to more people in parking their funds with banks.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/pnb-raises-fixed-deposit-rates-for-non-residents/articleshow/7202208.cms

AIBOC CIRCULAR NO. 1 DATED 01.01.2011

AIBOC issued its circular No. 1 welcoming the new year 2011. We are reproducing the same here for our readers.

CIRCULAR NO. 1                                             DATE: 01.01.2011

TO ALL AFFILIATES /MEMBERS

WELCOME, THE NEW YEAR 2011

We are yet again on the threshold of a new year 2011, which holds new hopes, new challenges and exciting new opportunities for all of us in the Banking Industry. In the backdrop of the country achieving 9% growth in GDP, the country has  a daunting challenge of sustaining the growth and move forward to achieve new horizons  on the economic front. With a robust financial market, our  country has been in a position to attract FDI, in a substantial size, giving fillip to the economic activities, spurring growth in employment opportunities, thereby generating income to the vast mass of the country. The Government’s efforts to alleviate the problems of the poor, through generation of employment and massive literacy programmes, need to be augmented on a massive scale. Otherwise, attainment of 9+%  of GDP will be a hollow concept, meaning nothing for more than 45% of  poor people of the country who are below the poverty line struggling for a square meal.  The Government, which is scam ridden, should come out with people oriented  programmes, with clean and corrupt free administration. The lopsided policies of the Government, rampant corruption in Government Departments, glaring inequalities, yawning gap between the haves and have-nots, need to be addressed with a human heart added with strong political will.

The country’s quest for a permanent seat in the U.N. Security Council is on the anvil and is likely to be a reality before soon. There is also an urgent need to strengthen our relationship with the neighboring countries, to achieve sustainable  peace in the subcontinent.

The Banking Industry which showed a robust growth, achieved spectacular results, achieving all time high profitability. The growth trajectory is expected to move northward in the coming year.

All India Bank Officers’ Confederation occupied the centre stage in the struggle for achieving a satisfactory salary revision and another  option for pension, a long cherished dream came true, bringing joy to the PF  optees. The saga of struggle to achieve the best of facilities, allowances, perquisites will continue, without any let up. Having achieved the best salary revision in the Banking Industry, it is AIBOC’s single minded pursuit and campaign to achieve the wholesome good  of the officers’ community. We are yet to traverse a bumpy road to achieve the following residual issues.

Ø       Pension shall be upgraded /updated on revision of scales. There shall be higher pension for older pensioners, as available to Central Government Employees.

Ø       Commercial Bank allowance of Rs.5000/- p.m be paid to all officers as available in RBI.

Ø       Pension at 50% of last drawn Basic Pay without linking to number of years of service.

Ø       Improvement in commutation formula at 40% of Basic Pay.

Ø       Introduction of separate Consumer Price Index (CPI) for Bank Employees.

Ø       Payment of Family Pension at enhanced rate for first 10 years.

Ø       Five day week for Bank Employees/Officers.

Ø       Child care leave to women officers to be extended to two years as is being done in case of Central Government Women Employees.

Ø       Insurance covering the lending risks.

Ø       Provision of 15 days lodging facility on transfer.

Ø       Setting –up of an exclusive Central Administrative Tribunal and Central Vigilance Commission for Bank Officers.

Ø       Pension option to officers who retired under VRS scheme of the Banks, retired on account of imposition of punishment of compulsory retirement, discharge, termination etc.

Ø       Improvements in Housing and Conveyance loan facilities etc.

Ø       Review of Service Rules and disciplinary proceedings etc.

The list is illustrative and not exhaustive. The AIBOC will be on a campaign trail from now onwards. We are aware of the aspirations and expectations of our Members across the country and our new year resolution will be to achieve the above issues expeditiously.

Now that, we have achieved Salary Revision and Pension Option for the PF Optees, we cannot bask in the past glory and it is time for all of us to sweat more and more during peace time, so that there is less bleeding during war time.

With hopes of a bright and better future for all of us, we will move forward to achieve the goals set before us. Our unity and solidarity will be further fortified during the New Year. Let us march together hand in hand, with fusion of our hearts and minds to realize our dreams, hopes and aspirations.

Year’s end is neither an end nor a beginning, but a continued march on, with all the wisdom that experience can instill in us.

WISHING ALL OUR AFFILIATES AND MEMBERS

A VERY HAPPY, SUCCESSFUL NEW YEAR 2011.

With seasons greetings

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

SRI A.R. SAIFULLA, PRESIDENT, A.I.C.B.O.F.

SRI A.R. SAIFULLA, PRESIDENT, A.I.C.B.O.F.

SRI A.R. SAIFULLA, PRESIDENT, A.I.C.B.O.F.