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How Central Government Staff are able to secure more benefits, as compared to Bank Staff?





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Central Government Staff

Bank Staff


Government Employees have a greater say in implementation of all policies and programmes of the government.  They manage the routine affairs of the government.  They only make the government visible to the common man. They are the people who are running the government show for all practical purposes.

Few disgruntled elements among the government employees here and there are sufficient to bring down the popularity of an elected government.

So, no government will take the risk of displeasing them. 


Bank staff, who are considered as the central pillar of any country's economy, have been reduced to voiceless creatures in our country. All social welfare schemes are dumped on them, by various governments, without giving them any choice or a say.

They also have made themselves cheap in the eyes of the society, by undertaking many jobs that are remotely connected to banking.  Their own managements also have to take a major share of the blame for this situation, because they think that in order to face stiff competition in the market and yet survive and flourish, banks must volunteer to do many jobs, even if they are not remunerative and result in wastage of precious human resources and loss of money.


Government is a virtual monopoly in many fields.  Moreover, the government is in a commanding position to determine the destiny of many sectors and their survival.

Though banks are also equally powerful and very important to the nation, because of intense, unhealthy and unequal competition, the mid-sized and small banks find it difficult to remain competitive and profit-making.


Central government employees/pensioners (48 lakh persons in service and 55 lakh pensioners) constitute a good size of the population.

In comparison, bank staff in service (numbering about 10 lakhs) and another 2.50 lakh pensioners spread over the entire country are numerically very less.


If we include those working in state governments and central/state PSUs and also the pensioners who are anticipated to derive benefit out of CPC, they add up to another 2.50 crores.

Same as above.


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Central Government Staff

Bank Staff


If we include their family members also, the total number of votes in their command will cross 14 crores.  This is a very huge vote bank that any party in power cannot afford to displease.


Bank staff, pensioners and their family members form a small vote bank, which is immaterial to the party in power. 


Pay Revision is determined by a Pay Commission that is constituted by the Central Government.


Pay revision is settled through bipartite talks between IBA and the body of majority Trade Unions (UFBU) at the national level.


The Central Pay Commission is headed by a retired Supreme Court judge.

Union leaders are mostly self-appointed - not democratically elected - and they claim to represent all sections of staff and pensioners.  Moreover, even those who retired from bank service long ago, are participating in the wage revision talks, making mockery of the whole process.

8 Apart from the recognized Trade Unions and Associations, all employees individually or as a group can submit their oral/written demands and suggestions to the Commission directly.  For this purpose, a separate web site was developed by the 7th Pay Commission and unrestricted access to this site was provided to everyone.  This was one of the best steps taken by the Commission. Individual members or a group of individuals are not allowed to submit their demands, views and suggestions directly to IBA.  Even if they volunteer to do so, IBA never takes cognizance of such inputs, howsoever relevant, useful, reasonable and logical they are.  Thus, the so called union leaders occupy the whole space by themselves.


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Central Government Staff

Bank Staff


Besides, the commission members visit many parts of the nation - north to south and east to west - and personally hear the views of all the stakeholders.  At the time of such visits, the Commission also receives memoranda and petitions submitted by the employees, pensioners and their groups/associations. If necessary, the individuals and representatives of such groups/associations are called to headquarters of the Commission for deposing before the full Commission.  Their deposition is properly documented and preserved.

Neither the IBA officials nor the chief negotiators from the unions/associations visit many parts of the country so as to ascertain the views, aspirations and demands of individual members.  Yet, if any member or a group of members comes forward to share their views with the union leaders and make suggestions, they are discouraged and resisted.  These central trade union leaders refuse to meet those who want to meet them in person for this purpose.  Worse still, if any member sends an email to union's official email address in this respect, the sender's email ID is blocked!  IBA also does the same thing.


The Pay Commission recommends for merger of the entire Dearness Allowance outstanding as on the day preceding the date of enforcement of new scales with Basic Pay.


During the recent settlements, only that part of D.A. as existing 1 year before the effective date of the wage revision is allowed to be merged with Basic Pay.  This results in lower Basic Pay, Allowances, Total Salary and superannuation benefits like Gratuity, Leave Encashment, Commuted Pension, Monthly Pension and Family Pension.  It is a huge lifetime loss to all employees and pensioners.  In addition, it results in fixation of lower pay scales in every wage accord in future.


Pension undergoes automatic upward revision with each wage revision.

Pension once fixed remains the same.  Even the revision made in D.A. with the changes in Consumer Price Index gradually becomes a pittance, because the Basic Pension does not get revised periodically.


Government employees' salaries are charged to the Consolidated Fund of GOI, without any reference to revenue receipts, revenue deficit and fiscal deficit.

Wage revision of bank staff is always linked to net profit of member banks.  It is atrocious to note that Bad Debts written off during the past 10 years is a mind boggling figure about which nobody is willing to talk.  Similarly, provisions kept for NPAs at the end of each year far exceed the total establishment expenses for the whole year.  This is a trend observed during the past 6 years.  As we all know, all the NPAs are not irrecoverable.  Therefore, the amount of provisions made during the year for NPAs shall be added back to the net profit, so as to arrive at the true 'cash profit' for the year.


Moreover, the government must adequately compensate all the banks (in monetary terms) who faithfully implement the social lending schemes and social welfare schemes of the government.

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As I am repeatedly writing, banks must not take up un-remunerative jobs either voluntarily or due to pressure and compulsion from the government or others.  Method of calculating the 'net profit' of banks must change so that camouflaging all evil practices by the banks is stopped forthwith. Then only, the bad picture that is sought to be created in common man's mind about the operational efficiency and profitability of Indian Banks will change. The weak and corrupt trade union leaders shall not be elected to the executive body of the trade unions and the retired employees shall not be allowed to continue as members.  While the former is in the hands of the employees themselves, the latter can be achieved only with the help of an amendment to the Trade Unions Act, 1926.  Let us hope that things will move in the right direction in the near future

Disclaimer: [The articles written by author contains only the academic view of the writer and purely for discussions and updation of the knowledge of the bankers. The views expressed in the articles may not at all be subscribed by the organisation where the author is working and / or]

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