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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. 23                                                                       Date: 29/12/2010

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

Dear Comrades,

We had been to the Hon’ble Finance Minister, G.O.I and other Senior Executives of the Banking Division with
official appointment as given below.
    1) Shri Pranab Mukherjee, Hon’ble Finance Minister, G.O.I on 27.12.2010
    2) Shri Alok Nigam, Joint Secretary, Banking Division on 28.12.2010
    3) Smt. Sumita Dawra , Director, Financial Services on 27.12.2010

Issues discussed with Shri Pranab Mukherjee, Hon’ble Finance Minister, GOI:-

I) Parity of Pension:-
We submitted the details of our discussion with Shri Alok Nigam, J.S on 18.10.2010, Smt. Sumita Dawra on
27.12.2010 and the proposed meeting convened by G.O.I. on 04.01.2011 to the Finance Minister.

We proposed that LICI should be the “Fund Manager” of the entire “Pension Fund” to be created for all the
RRB Staff. S.B.I may be the “Additional Fund Manager”. There should be “National Monitoring Committee”
with the representatives of G.O.I, NABARD, IBA and majority Associations of “Workman” and “Officers”.
Similar Committee may be formed at the R.R.B level for this purpose.

F.M. was kind enough to reassure us again that G.O.I likes to settle the issue

II) Parity of “Other stipend/Benefits”:-
We placed the proposal for immediate issuance of comprehensive order by G.O.I in this regard.
F.M. kindly advised us take up this issue with Banking Division.

III) Private Insurance Marketing Business:-
We reported that some of the RRBs have been laying abnormal emphasis on “Insurance Marketing
Business” at the cost of “Core Business” and creating pressure on the Branch Manager.
F.M. took a serious note of it but did not make any observation.

Issues discussed with Shri Alok Nigam J.S, Financial Services, G.O.I and Smt.
Sumita Dawra, Director, Financial Services, GOI on 27.12.2010 & 28.12.2010

I) a) Parity of Pension:-
   We submitted the same proposal as submitted to F.M. on the previous day.
   Joint Secretary, GOI paid a patient hearing and instructed the concerned officers
   that the order on Parity of Pension was supposed to be issued on 1st January 2011,
   as assured by him on 18.10.2010 but now the G.O.I must take all possible efforts to
   release the order in the month of January, 2011 positively.
   Director, GOI kindly informed us that GOI is very much on the job with all
   We submitted the books on “Pension Scheme” Published by Canara Bank and Union Bank of India in 1995
   as well as in the year 2010 after 9th BPS to the Director, Financial Services, G.O.I for their kind information
   and appropriate action.

   b) Payment of “Gratuity”- Amendment of Service Rules :-
   Only “Basis pay” is the “Pay” for the purpose of “Gratuity” in case of “Officers” as per RRB Staff Service
   Rules. Most of the RRBs have introduced “Group Gratuity Scheme” with LICI when RRBs are to pay
   premium on the full amount of “Basis pay” and “Dearness Allowances” and LICI is liable to pay the
   gratuity on the basis of “Basis Pay and D.A”.
   We requested GOI to issue administrative orders amending the related provision accordingly.
   J.S, GOI kindly advised his office to take the opinion of NABARD on 4th January, 2011 in this

II) Parity of “Other Allowance/Benefits”:-
   We submitted the list of disparities and denials in extending “Other Allowance and Benefits” by 3 Sponsor
   Banks (i.e. UCO Bank, IOB, Canara Bank) NABARD has informed GOI that so far 9(nine) Sponsor Banks
   have implemented. It has been reported, that AIGBEC/AIGBOC has requested GOI to refer all the staff
   issues to JCC for their consideration. We disagreed with this proposal and firmly demanded that the GOI
   will have to issue a comprehensive order as decided in the meeting with Additional Secretary, Financial
   Services, GOI on 17.08.2010. Moreover, JCC in its meeting on 26th May’2010 has already resolved to
   recommend for “Comprehensive order by G.O.I” ensuring Parity of Allowances/Benefits as extended by
   GOI on 22.02.1991 and 20.03.1993.
   Shri Alok Nigam, J.S, and Director GOI kindly advised the concerned Officers to
   consider it in the meeting with NABARD on 4th January, 2011.

III) Computer Increment:-
   We have drawn the attention of J.S. to the direction of Hon’ble High Court Patna, “I direct the pertinences
   to invite the attention of the Secretary, Finance, Department of Economic affairs (Banking Division) New
   Delhi, respondent No.1 towards the aforesaid illegal decision taken by the NABARD dated 30.01.2010,
   Annexture-14 not pay computer increment to the employees of the RRBs” and to issue the order within 3
   The Hon’ble Division Bench of Karnataka High Court upheld the decision of single bench allowing parity of
   staff advance and Other Allowances etc.

   We requested G.O.I to issue the order so that all the staff members of the RRB can draw “One advance
   increment” in the scale of pay and at the same stage as allowed to the contemporary staff members of the
   equated cadre in the Banking Industry with same length of service. (Our letter dated 30.11.2010 and
   22.11.2010 to GOI/NABARD)
   J.S, GOI kindly advised his office to consider it in the meeting on 4th January, 2011.

IV) Other “Pay Elements”:-
We also drawn the attention of GOI to the fact that many of the RRBs have not yet honoured the Govt. order
dated 25.07.2010 in case of HRA, F.P.P, Cashier’s Cash Allowance, 1/3rd wage to part-time workers etc.
J.S, GOI kindly advised his Office to take up this issue with NABARD on 4th January, 2011.
 v) Amendment of Service Rules and Promotion Rules:-
 We have requested both J.S and Director to consider our proposals for immediate addition/ alteration/deletion
 of the Service Rules and Promotion Rules through administrative orders by GOI as agreed upon on 18th Oct,
 There was clear recommendation in the report of the Equation Committee that “in view of the above, the
 Committee recommends that the allowances and benefits which are provided in the Bipartite Settlements and in
 Service Regulations of the concerned Sponsor Banks may be extended to the concerned RRB employees and
 Officers respectively”. This report was accepted in full by the GOI on 22.02.1991 as stated in the Govt. order.
 J.S, GOI & Director GOI kindly advised his office to consult NABARD it in the meeting
 on 4th January, 2011.

Vi) Representation of “Workman” and “Officers” in the Board of Management:-
We raised the this issue in continuation of our letter to Finance Minister and Banking Division as allowed in case
of Public Sector Bank and this will not require any amendment of RRB Act since as per existing provision 9(2) of
RRB Act, 1976, “the Central government may increase the number of member of the Board; so, however, that the
number of directors does not exceed fifteen in the aggregate and also prescribe the manner in which the
additional member may be filled in”.
Joint Secretary, GOI was kind enough to advise RRB Section to place this issue before
Hon’ble F.M to take a view and he opined that this proposal may be considered in line
with Public Sector Bank.

VII) In line with the recommendation of Dr. K.C Chakrabarty Committee report:-
 a) We requested the Joint Secretary to kindly consider the autonomy of RRB since Dr. Chakrabarty
    Committee has recommended that “RRB Boards tends to avoid taking decisions have developed a
    tendency to refer even matters of business interest to their Sponsor Banks for clearance. Steps are
    therefore necessary to fully empower the Boards enabling them to function as autonomous decision
    making bodies”.
    Joint Secretary explained that the Sponsor Banks are accountable for the
    performance of their sponsored RRBs. So, full autonomy is not possible.
 b) The same committee has suggested that “the RRBs be permitted to write off the accumulated losses as on 31
    March 2010 against the share capital deposits. Any balance amount left as share capital deposits may then
    be appropriated as paid up share capital.”
     We requested the GOI to kindly consider this recommendation.

 VIII) Branch Licensing Policy- new relaxation:-
 We have informed GOI that the new order of RBI on the subject above will not serve any purpose to majority of
 the RRBs due to many preconditions-
 J.S, GOI advised us to take up the issue with RBI.

 IX) Insurance Marketing Business:-
 We reported to GOI that some of the R.R.B have been laying abnormal emphasis on Insurance Marketing
 Business at the cost of Core Business and creating pressure on the Branch Manager over phone in each week to
 know the growth only in this regard.
 G.O.I took a note of it.

 x) Discussion paper by RBI on granting new Banking License to Corporate
 In response to our query, GOI ruled out any possibility of “Handover of RRB” to
 Corporate House.

XI) Staff welfare schemes:-
   We submitted copy of the circular issued by Canara Bank on Canara Bank Staff Welfare Schemes with a
   request to GOI for introduction of similar schemes for RRB staff in terms of Govt. order issued to Public
   Sector Banks subject to limit of 3% of the net profit.

We took up the following issues with NABARD over phone for kind in addition to the above issues
discussed with GOI.

   i)      Decisions of JCC (2nd meeting) held on at Mumbai on 26th May, 2010
   ii)     Number of Representatives of Majority Association in the JCC as well as their
           leave facilities on T.U. ground as per IBA Rules.
   iii)    Relaxation of age/qualification of In-service candidates to the extent of period
           of service rendered by the incumbent in case of new recruitment to ensure
           career progression and to avoid attrition.
   iv)     Year wise vacancies as per NABARD’s order dated 20.03.1993 and
           categorization of branches- Old Vacancies to be filled up though Old Rules at
           least as one time measure- issues raised by many RRBs.
   v)      Automatic promotion of Graduate Messengers as allowed in Sponsor Banks and as
           recommended by SBI and Syndicate Bank to NABARD for RRB staff.
   vi)     “Scale Promotion” to the workman working in the same cadre for more than 20 years.
   vii)    Promotion from Scale III, - issue raised by PNB.
   viii)   Administrative orders as per all the resent judgements of all Hon’ble High Courts in the
           area of “Compassionate Appointment”, “ Messenger, Sweeper, Part time workers” , “Parity
           of Other Allowance”, “Old Vacancies through Old Rules”, “Payment of Computer
           Increment”/ FPP etc. Copies of all the judgements have been submitted to NABARD.

                                                                          Yours Comradely

                                                                           Dilip Kumar Mukherjee
                                                                           Secretary General, AIRRBEA


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