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Stop Wastage and Loot of Public Money  and  Give Bank Officers / Employees Their Due Share  in Xth BPS

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             R K Singhal [ rajendrakumarsinghal ;  ]




1.    Whether UFBU should submit any agenda for Xth BPS?.


2.    Demand Implementation of   VIth pay commission for Bank Officers/Employees or Appoint Retired eminent Judge as head of pay commission to decide the wages of the Bank employees & Officers


3.    Updating pension as done of Central/State Govt. employees/removal of ceiling on family pension (Please Note that the pension of Bank employees retired on or after 01.01.1986 was also updated on 01.11.1193 when the pension settlement was singed for the first time).


4.    Undoing of the past mistake of UFBU.


(a)  Refund of incremental cost of pension with interest  which was recovered illegally from the  PF optees  since 01.11.1997, refund  revised incremental cost from 01.11.2002 &  refund revised incremental cost from 01.11.2007.


(b)  Refund of incremental cost of pension which was recovered illegally by violating the pension regulation 1995  from the  pension optee  since 01.11.1997, refund revised incremental cost from 01.11.2002 &  refund revised incremental cost from 01.11.2007.


(c)   If any reader has any doubt/question about the recovery of incremental cost of pension from employees w.e.f. from 01.11.1997, please read the attached circular issued by AIBOC leadership which explicitly clarify how the PF optees have been forced to contributed toward the shortfall in the pension kitty for which they were not beneficiary and similarly pension optees were forced to meet the short fall in pension kitty in gross violation of pension regulations. Please note that none of the highest official of the Banking Industry has authority to violate the law passed by the parliament.



5.    Stop Loot/ Cheating of New Pension  Scheme Funds of  employees who are covered under New Pension Scheme joined on after 01.04.2010.


6.    Medical facilities to retired employees on the lines of central Govt/ /State Govt. Is there any Corporate Social Responsibility of Bank Management towards there own retired Bank employees?


7.    Stop Corporate Crimes Committed by Bank Management/Govt.of India / RBI/ CAs / Trustees of Pension Funds Trust, on Bank employees Pension fund (retirement funds) and initiate steps to punish the wrong doing Corporate Crimes:

(a)  SBI  transferred  Rs 7927.41 crs from General reserve to Pension Fund  as on 31.03.2011. Central Statutory Auditors clearly certified that this amount arisen because inadequate  funds were transferred in the previous years.

(b)  The CMDs of PSB have not deposited 10% statutory contribution every month and agreed incremental cost of pension was not deposited leading to shortfall in pension fund. It is diversion of employees retirement funds to boost the profits and claim incentive of Rs 8 lacs from the Bank on the basis of falsified balance sheet. The amount involved is more than one lac crores which has been laundered  since 01.11.1997.

(c)  RBI though observed about the crime committed by the Bank Management during AFIR (Annual Financial Inspection Report of Each Bank) but allowed the loot of retirement funds and its distribution as dividend to share holders and allowed incentive to CMDs on the basis of falsified balance sheet. RBI took no steps to stop money laundering of retirement funds.

(d)   GOI nominee on each Board allowed this fraud and failed to protect the financial stability of the Banking system.


8.    Stop the loot of Public Money in the garb of Corporate Debt Restructuring of KingFisher /AI Airlines/ Real Estate   Borrowers, Telecom Scamasters Accounts / Money laundering and maintaining secrecy of these crimes under RTI (The Bankers are denied fare/equitable  wage revision).?


9.    Insist that Bank interest should be free in the hands of depositors as in the case of dividend yield on shares (Why discrimination with Bank Depositors).


10. Big depositors paid 9% for 7- 180 days but small depositor paid 7% for same duration by SBI  w.e.f.01.03.2012? Another fraud to boost the balance sheet size to earn incentive of Rs 8 lacs.


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Explanatory Notes of Each Agenda Items



Agenda item No 1 :Whether UFBU should submit any agenda for Xth BPS?.

The leadership of UFBU in general and AIBOC in particular have expressed their limitation in having a fair wage settlement for the Bank officers/employees. The AIBOC leadership vide their circular No 45 dated 08.04.2010 (Copy attached as annexure 1 - click here to download the same ) have expressed their limitation. Gist of the circular no.45 given below:




The 6th Pay Commission recommendations for wage revision of Central Government employers are effective from 01.01.2006, for a term of 10 years. In case of Bank employees it is for a period of 5 years from 01.11.2007.  The distribution of wage load for Central Government employees is not uniform. A meager increase of about 15-20% for lower level officials and higher increase at Secretary Level, with different pay bands is followed for them. Where as in our case we have tried to maintain equidistribution of load factor.


In case of Central Government employees, they will first arrive at the proposed revised scales and allowances and there is no restriction as regards cost of wage bill.  The entire cost will be debited to the National Ex-chequer of the Government of India.


In the case of Bank employees, Government of India first fixes the limit for percentage increase and distribution of the increased load among various components of salary and allowances, is the responsibility of IBA and Unions/Associations.


Therefore, it is a herculean task to balance the demands of IBA and the Unions in drawing the revised scales of officers upto scale VII.



When UFBU has no role is bargaining the percentage wage hike for the officer/employees what is the need to submit a charter to IBA. UFBU should first ask the GOI the percentage load factor they intend to offer and accordingly they should submit the charter. Readers to Comment.?



Agenda item No 2 - Demand Implementation of  VI th pay commission for Bank Officers/Employees or Appoint Retired eminent Supreme Court retired Judge as head of pay commission to decide the wages of the employees & Officers. When UFBU has no role in deciding the quantum of percentage wage hike which is decided in the above manner, It will be in the interest of justice and fair play to have Pay Commission for Bankers who will decided the wages, comparable to industry vis a vis wages payable to Govt. Employees doing job of similar nature.


Earlier in 1970s, the Bank officer was at par with Group A officer i.e. Class I/ University Teachers. The RRB officers were treated at par with BDO of concerned State as per Ministry of Finance Notification. Today   Central govt Stenographer is getting the scale of Rs 9800 to 34000/ with grade pay of  ranging from 4200 to 4800 pm. It translate into maximum basic pay of Rs 34000+4800 = 39800/- pm  which is equal to AGM of PSB who end at 40400/- (Every fact is verifiable if any reader has any reservation, can contact undersigned at the email address given). The Pay commission will be transparent and at least  listen to all stake holders before finalizing their report. Readers to Comment.?




Agenda item No 3 Updating pension as done of Central/State Govt. employees: When pension was offered in lieu of PF to Bank employees, the Central Govt Pension rules were adopted  the scale of pay was revised for retirees retired after  01.11.1987 and updated as on 01.11.1992 at the time of implementation of pension settlement in 1993-95. There is no reason to deny the revision of pension  to subsequent retirees. No pay commission will ignore this fact which has judicial sanction of Supreme Court.  Shameful Meager family pension (15% with ceiling) when the family pension of govt employees has no ceiling. Readers to Comment.?



Agenda item No 4-- Undoing of the past mistake of UFBU -Refund of incremental cost of pension with interest to PF Optees and also  Refund of incremental cost of pension to Pension Optees recovered illegally by violating the pension regulations.


Readers should read the circular No 85 dated 29.11.2009 (Copy enclosed as Annexure 2 - click here to download the same)  issued by Mr Nadaf on MINUTES SIGNED ON SALARY REVISION & 2ND OPTION ON PENSION which prove that PF optees have also paid (Illegally) pension cost though they were not the beneficiary to pension trust which detailed as under:



The additional cost of pension on account of wage revision in excess of statutory contribution of 10% of pay will be shared equally between management and employees each and the share of employees (at 23% of Pay) will be deducted from the agreed wage increase while revising salary and allowances. Readers should read the circular of association and then  Comment.?



Mr Nadaf has also mentioned in AISBOF Circular No.04 dated 27.01.2011 that the above amount of incremental pension cost of 23%was paid to SBI employees as Special Balancing Allowance 6.5% (officers) and 6.4% (Employees), of their revised basic pay, from 1.11.2007 (Copy of circular attached as Annexure 3 click here to download the same ).



For PF Optees:  My question to all valued readers is how management can reduce the wages of PF Optee who is not the beneficiary of pension fund trust? Why the same amount was not paid  to  PF optee as Special Balancing Allowance as paid to SBI employees, hence they deserve  refund with  interest w.e.f 01.11.1997 . Readers to Comment.?


For Pension Optees The pension was offered in lieu of PF and there was no provision of sharing cost of pension by the pension optee, hence any recovery toward the cost of pension violate the pension regulation, hence the amount is liable for refund to pension optee  w.e.f 01.11.1997. Readers to Comment.?


Agenda item No 5-- Stop Loot/ Cheating of employees who are covered under New Pension Scheme joined on after 01.04.2010. Whether new employees joined after 01.04.2010, are aware that they have been paid NIL interest on their contribution as well  as management contribution for the period 01.04.2010 to 31.03.2011. The Bank management has cheated these employees by denying reasonable return (even rate the Bank pay on recurring deposit has been denied) and management reduced there cost of fund and increased NIM by cheating their own employees.  All these thing done to secure incentive of Rs 8 lacs. Are you listening?  Readers to Comment.?


Agenda item No 6-- Medical facilities to retired employees on the lines of central Govt/ /State Govt.


i.      It is very shameful that PSB employees have no post retiral medical benefit scheme. The management talk a lot on CSR (Corporate Social Responsibility). Please examine when PSB do not care about their own retired employee in their old age, what can they do to the society at large in the name of CSR except looting the masses (more example given below).


ii.    It is again shameful that some Banks are offering medical benefit to retired employees, of Rs 2 lacs, from the date of retirement till their death for both self and spouse. The scheme was implemented in 1998-99 and officers have to pay 15 days pay for availing this benefits. The officers were contributing Rs 4850/- (50% of MMIII Basic of Rs 9700/-  to avail  the benefit of two lacs in his life span. Please note now the MM III officer is contributing Rs  17500/- (50% of MMIII -35100/)- without  any commensurate rise in limit of Rs 2 lacs  fixed in 1997-98 when the cost of medical expenses has gone up since 1998- to 2011-12. Any CMD /IBA Chairman has any liability toward the society/ retired senior citizen?. Will they give some thing to the society or they simply cheat/loot  the society?


iii.   The ED /CMD who serve a Bank for -1- to -3-years is entitled to full medical reimbursement after retirement till death for self and family. An employees who serve the organization for 40 year is not entitled to any post retiral medical benefit?. Please comment.


Agenda item No 7 Stop Corporate Crimes Committed by Bank Management/ Govt.of India / RBI/ CAs / Trustees of Pension Funds Trust- Fraud of Rs 1 lac cores since 01.11.1997- Bigger than Satyam Scandal


·         SBI  transferred Rs 7927.41 crs from reserve to pension fund with due permission of RBI (Whether RBI as regulator has authority to legalize the falsified balance sheet of SBI). No action against erstwhile CMD who prepared falsified accounts/Balance Sheet of the Bank and distributed employees retirement funds as 300% dividend. This resulted in downgrading of rating of SBI by rating agencies. Loss to shareholders because price of share fell from 3300 to 2000/-The ex CMD claimed Rs 8 lacs incentive by falsifying the balance sheet and showing having achieved the SOI targets? Is it no a fit case for class actions against Bank under new proposed company bill. Employees/ Investors as a class have been cheated/looted.


·         No action against -14- Statutory Central auditors who certified the falsified balance sheet of SBI.


·         No action by RBI for such financial instability of the banking system against SBI. Even RBI helped in such manipulation by permitting transfer from reserve and allowing amortization of gratuity cost .


·         The PSB have not deposited there 10% statutory and incremental cost in the fund- No action against the violators of pension regulation.


·         RBI role in AFIR 2010-11 has commented for several Banks that :RBI PIO Comments on Adequacy of staff related provisions: The bank made provisions of 1012.09 crore (PY:630.62 crore) towards employee liabilities, including 365.98 crore being one fifth of liabilities towards new pension optees based on deficient demographic and economic assumptions. The actuarial assumptions of attrition rate of 2% or the return on funds at 8% were not based on actual observations. The fair value of fund had been arrived at without revaluing the entire investments of the fund. The actuarial assumptions of 2% escalation of basic salary and DA each, based on the inflation rate of 4% was out of sync with the actual inflation trend of above 8% throughout the year or 7.99% during 1969-2010.. The additional liabilities owing to above lacunae and funding thereof would have significant impact on the bank’s financials.                                                    (Action-Critical) No Action by RBI


·         GOI is fully aware of the scam and helping Banks in perpetuation of crime. GOI contributed Rs 7800 cr in SBI to augment the capital during 2011-12 because CAR of SBI was reduced rom 9.7% to 7.8% due to above transfer of from reserve to pension fund.


·         Legalizing the past misdeeds of a Bank Management in the name of amortization of pension cost?.


·         Readers to examine & Comment.?



Agenda item No 8- Stop the loot of Public Money in the garb of Corporate Debt Restructuring/ hand holding/ write-off and waiver.

·         Whether Bank Employees are ready to forgo their pension/ salary in future because public money/ their retirement money is looted by powerful entrepreneurs and who are bleeding the public sector Banks?.


·         The Kingfisher owners deducted the TDS from employees but not deposited in Govt. treasury, hence looted the treasury like A.Raja of  2G fame.


·         The obliging Bank Management extended  one CDR by converting the debt into equity at premium price of Rs 62 against ruling price of 41/- which came down to 18/ .  to King Fisher. Such a huge loss to Banks. SBI was again willing to extend the fresh loan which could not materialize due to intervention of SBI unions. Whether Bank employees are ready to help  the looters of national wealth and looters of their retirement dues  without raising these issues and ready to go without pension/wages in future due to in action of UFBU?


·         Air India debt  of 17000 cr being restructured at the fixed rate of 9% when poor student is getting education loan at 12%. Are student subsiding the kingfisher airlines/Air India? .


·         Whether right to recompense has been ever exercised in CDRs?


·         The Bankmen are required to be alert and examine each case of CDR.


·         Whether the Bank employees are willing to accept the argument that Bank can not afford reasonable wage hike/pension revision/ pension cost etc even after observing the above loot of their own and public money? The pension cost require amortization by Bank but the thousand crores of rupees can  be sacrificed and allowed to be looted in the name of CDR of King Fisher/ AI/ Realty Firms? Do you accept this theory?Readers to Comment.?



Agenda item No 9- Insist that  Bank interest should be free in the hands of depositors as in the case of dividend yield on shares (Why discrimination with Bank Depositors). Ordinary depositor earning an interest of Rs 1 on SB is obliged to pay tax on that depending upon his income slab. The Tata/ Birla/ Narayanmurthy/ Anil/Mukesh Ambani receiving  crores of Rs by way of dividend, is tax free in their hands. Why discrimination between two set of investors?.Why law can not be amended in favour of masses. Why they are bleeding the Banks. UFBU has no role in policy formulations.



Agenda item No 10 Big depositors over Rs 15 lacs paid 9% 7-for 180 days but small depositor below 15 lacs  paid 7% for same duration by SBI w.e.f. 01.03.2012 ?



Why discrimination? Are small depositor subsiding the big depositor? The CMD SBI in order to  achieve the SOI targets and to get Rs 8 lacs incentive, is offering  enhanced rate for 7-180 days to window dress the balance sheet and causing loss to the Bank by maintaining higher CRR/ DICGC fee. Is it not a corporate crime?.


The above is list of agenda items with explanatory note. Readers are requested to examine each point and ask the leadership of UFBU whether they envisage any role for them in stopping the these crime committed by management /GOI /Industrialist or employees will have to fight/fend them in implementing the law of the land (implementation of pension Regulation) in the Banking Industry.



Other suggestions/agenda points may be added by alert readers. Comments if any may be send  on e-mail.






Legal Aid Cell

Bhartiya Janta Party

11, Ashok Road

New Delhi-110001



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