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Holidays declared by States are excessive: Indian Banks’ Association -Hindu business Line-29.04.2015

Vinson Kurian
Thiruvananthapuram, April 28:  

Indian Banks’ Association (IBA) feels that bank holidays declared under the Negotiable Instruments Act, 1881, by various States are ‘excessive’ and need to be rationalised.

A meeting of the managing committee of the IBA, which represents management of member banks, is learnt to have made known its view during discussions on ringing in a five-day week in the banking sector.

Consensus ready

It may be recalled that as part of the wage revision under the 10th bipartite settlement, a memorandum of understanding was signed on February 23 between the IBA and workmen unions/officer associations. A consensus was arrived at that every second and fourth Saturdays of the month will be holidays and the other Saturdays will be full working days for bank branches/offices.

 

The matter was discussed in the managing committee of the IBA (represented by public sector banks, private sector banks, foreign banks and cooperative banks) at its meeting on April 7.

After detailed deliberations, the members agreed that there was a case for implementation of a five-day week in banks.

This would require that clearing houses, RTGS/NEFT and currency chests are also closed on second and fourth Saturdays.

 

The IBA has already taken up the matter with the Reserve Bank of India seeking its consent to enable it to take up the matter with the Government and the Finance Ministry for issuing necessary Gazette notification. It was here that the IBA managing committee felt that holidays declared under the Negotiable Instruments Act, 1881, by various State Governments needed to be rationalised.

The committee felt that the IBA may take up with the Centre the case for rationalisation of bank holidays under the Act.

 

The IBA’s line of thought was given expression in a letter to the sponsor banks of regional rural banks, seeking their view on having second and fourth Saturdays as holidays and other Saturdays as full working days.

Their input will help usher in uniformity across the industry and ‘enable us at the earliest to proceed further in the matter,’ the letter said.

 

It went on to add that “we have already taken up the matter regarding rationalisation of bank holidays under the Negotiable Instruments Act with the Finance Ministry.

“We have also requested the Reserve Bank to consider suspension of clearing functions and RTGS/NEFT on second and fourth Saturdays and have full-day clearing services on other Saturdays like any other weekday.”

 

Employees who opt for VRS cannot be on same footing as others: Supreme Court

There is no violation of principle of equal pay for equal work if persons, retiring in normal course, are treated differently with those who opt for special voluntary retirement scheme (VRS), the Supreme Court has said. The bench comprising Justices Anil R Dave and Shiva Kirti Singh said employees, opting for VRS, form a separate class in relation to those retiring in normal course.

It said the employees, who took VRS, are not entitled to enhanced pensionery benefits which are being given to others with retrospective effect.
"True, that those who retired under the Scheme did the same work which was being done by those who retired in normal course, but one cannot forget the fact that those who retired under the Scheme got substantially higher retirement benefits," the bench said.

The employees who retired under the Scheme form a separate class of employees who were given many benefits, which are not given to employees retiring in normal course. If they all form a separate class, by no stretch of imagination it can be said that all those who retired under the Scheme and those who retired in normal course, are similarly situated," it said.

The bench passed the verdict on a bunch of petitions filed by employees of five nationalized general insurance companies who prematurely retired on certain conditions with some special benefits under a scheme called

"General Insurance Employees Special Voluntary Retirement Scheme, 2004". After retirement of several employees under the scheme, the insurance companies, on December 21, 2005, came up with a notification giving benefit of revision of pay with retrospective effect from August 1, 2002, provided the employees were in service on or after August 1, 2002.

The retired employees under the scheme sought revision of their pension saying that they were in service on August 1, 2002 and they are entitled for higher pension.

RBI directs banks to strictly follow 'Mandatory Leave' policy-IBN
Coming down heavily on banks for not implementing mandatory leave policy effectively, the Reserve Bank on Thursday said that employees posted at sensitive areas are required to compulsorily avail leave of about 10 days in a single spell every year.
This comes after 'forensic scrutiny on guidelines for prevention of frauds' of RBI had found that the policy of mandatory leave was not being implemented effectively by the banks, leading to an increase in operational risks.
As per the guidelines, banks are required to have a policy for staff rotation and mandatory leave for their employees positioned in sensitive positions or areas.

Latest News from Ministry of Finance

Government of India via Ministry of Finance has vide their letter no.F N No. 6/22/95-IR dated 16.04.2015 has declared banking industry to be a public utility service in pursuance  of the provisions of sub-clause (VI) of the clause (n) of section 2 of the Industrial Dispute Act 1947 (14 of 1947) for a period of six months w.e.f. 21st April  2015.
Sd by Sri Manish Kumar
Under Secretary to the government of India