CIRCULARNO 53

							                                                        airrbea1@rediffmail.com, airrbea1@yahoo.com
                                                        Phone 033 – 25734176 /Fax No.033-2573 3252
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All India Regional Rural Bank Employees Association
President: Ajit Ghosh                                   GOLDERS GREEN, Ground Floor F .G. Block
Secretary General: Dilip Kumar Mukherjee                1, Nazrul Islam Avenue (V.I.P. ROAD)
                                                        Kaikhali, Kolkata – 52

Circular No. – 53                                                                    Date: -22.11.2011

To
The General Secretary
All Units/State Federations & C.C. Members,
AIRRBEA

Dear Comrades,
                            Sub:- Possibly two feathers at a time.
              Discussion with Addl. Secy./Joint. Secy. Department of F.S, G.O.I

That AIRRBEA is going to achieve pension parity very soon is known to all. Possibly AIRRBEA is going to
achieve “State level RRB” also very soon. For a long time, AIRRBEA has been demanding for “National
Rural Bank of India” having “State level RRBs” under it. The first step towards N.R.B.I i.e. “State level
RRBs” is now almost a reality. So, two golden feathers are going to be placed on the cap of AIRRBEA at a
time very soon.

We had been to Delhi on 21st Nov, 2011. We have met Shri Rakesh Singh, Additional Secretary, F.S. G.O.I
as per official appointment at 3 P.M. We also met Shri Umesh Kumar, Joint Secretary & Shri Sanjeev
Kumar, Director, F.S, G.O.I separately. Shri Sanjeev Kumar has just taken up the RRB section two days
back.

We had our discussions mainly on the following issues:-
1) Parity of Pension - latest status – obligatory direction of Hon’ble High Court - capital support to be
   extended to bridge the pension fund gap - immediate declaration of the policy decision.
2) Amalgamation of RRBs - formation of N.R.B.I with “State level RRB” – delinking from Sponsor Bank.
3) Parity of Allowances & Benefits, failure on the part of eleven Sponsor Banks to extend such benefits
   even after 16 months from the date of Govt. order.

We initiated the discussion with our following observation and the reactions of the
G.O.I are given below:-
We started with the remark that the G.O.I is taking too much time for the announcement of the policy
decision since Shri Alok Nigam, Joint Secretary, F.S. G.O.I informed AIRRBEA in the last November, 2010
that decision would be announced in the first part of January, 2011.

The officers observed that it is fact that the G.O.I has started showing positive intention from the last
quarter of 2010 & such intention was intensified in the recorded proceedings of G.O.I meeting with Sponsor
Bank in April, 2010 but the full application of mind to solve the issue has started from the month of
September, 2011.

We also raised the issue that as directed by Hon’ble Karnataka High Court, G.O.I being one of the
respondents must consult with AIRRBEA, the main petitioner to ensure that the proposed scheme “could be
reasonably agreed upon in consultation with the employees”.

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G.O.I observed that once the proposed scheme as per direction of the Hon’ble F.M, G.O.I is finally drawn
and approved; there may be discussion with the Association if there is any scope for further improvement
or amendment including calculation part.

What we learnt from G.O.I. on 21st Nov, 2011:-
1)
   i) The Department of Financial Services, G.O.I submitted the details of the proposals on different
        issues relating to RRB and their staff before Hon’ble Finance Minister, G.O.I on 31.10.2011 (just a
        week after our discussion with Secretary, F.S. & Joint Secy. F.S. on 24.10.2011)
   ii) The issues placed by the Department of Financial Services, G.O.I before the F.M. mainly included
        the proposal for “Industry wise Pension scheme for RRB staff” and “formation of State level RRB”
        through further amalgamation of existing amalgamated RRB and/or “Stand Alone RRBs” in the
        same State.
   iii) Hon’ble Finance Minister, G.O.I issued positive, assertive and specific direction on both the above
        noted issues and other issues.
   iv) Department of Financial Services, G.O.I is giving the final shape to the proposals relating to the
        above noted two major issues raised by AIRRBEA according to the directions/decisions given by the
        Hon’ble Finance Minister, G.O.I on 31.10.2011. Since both the proposals are being finalized as
        directed by Hon’ble F.M, approval of the Hon’ble F.M. in case of final proposal will just be a
        formality.
   v) Possibly the final proposal for “pension parity” may go to Department of Expenditure and
        Department of Pension for their formal approval.
   vi) The very possibility of sending the file to Department of Expenditure gives the ray of hope that
        possibly the scheme would be benefitted by capital support as demanded by AIRRBEA and in that
        case, the amount of capital support for pension scheme, if proposed and approved, may be reflected
        in the next budget i.e. on 28.02.2012.
   vii) There is possibility to announce the “policy decision” on “pension parity” by the Hon’ble Finance
        Minister, G.O.I in the meeting of RRB Chairman supposed to held after the present session of the
        Parliament in the third week of December, 2011.

2) As regards amalgamation of RRBs:-
   i)  The proposal for further amalgamation of RRBs within the same State is moving faster than the
       proposal for pension parity though both the issues have the highest priority at this time.
   ii) In all the States of North East Region excepting Assam and in case of Puducherry, there are “State
       level RRBs”. In all other states excepting bigger States, there will be one “State level RRB”. In the
       bigger states like U.P, M.P, A.P etc. there will be more than one RRB. All the details are being
       finalized and expected to be approved by December, 2011 so that the entire amalgamation process
       may possibly be completed by 31st March, 2012 to ensure the amalgamated balance sheet of the
       “State level RRBs” supposed to be formed. The Sponsor Bank of the biggest RRB in the state will
       become the Sponsor Bank of the “State level RRB”.

Discussion with Shri Sanseev Kumar, Director of Financial Services, G.O.I:-
Since he was very busy with the Parliament question, we could discuss with him only one issue i.e. parity of
allowances and benefits. He noted this issue and wished to have detailed discussion on other issues in the
immediate future.


With greetings
                                                                     Yours Comradely


                                                                           Dilip Kumar Mukherjee
                                                                           Secretary General, AIRRBEA


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