Government of India,Ministry of Finance, Department of Financial services vide its letter no.F.NO.11/5/2001-IR dated 26.02.2018 conveyed to RBI that
“As regards update of pension,any change in the manner of calculating pension is likely to result in similar demands in Public Sector Banks and Financial Institutions, most of which are currently experiencing financial difficulties.”
This letter along with other documents, after being notarized have been filed in Bombay high court by RBI in RBI pensioners UPDATION CASE.
TheSecretary Finance is absolutely right when He stated that Banks are in great financial difficulties. Rather 2017-18 is financially worst year for Banks during the last 40 years.
BUT paymen to pension and updating of pension has no bearing on the Financial MESS in the Banking Sector.
Pension is not paid from Revenue of the Bank, BUT from PENSION TRUST FUND. This fund is created out of contributions of the employees during their service in the Bank.
Bank holds these funds as trustee and not the owner. Bank has no right over this trust fund. This pension fund is healthy fund and it is more than Rs2 lakh crores. The annual interest income is more than Rs20,000 crores,whereas the annual payment of pension is not more than 7000 crores.
THE FINANCIAL DIFFICULTIES OF BANKS HAS NO LINKAGE OR BEARING WITH UPDATING OF PENSION.
Rather pension fund is being misutilized by many of banks for purposes other than payment of pension which is a criminal breach of trust.
DFS has refused updating of pension to RBI because it will unstable the Financial position of Banks, but this is not true- this is purely a misleading statement.
RBI has knowingly and intentionally filed a wrong affidavit which is contempt of Court.
Ministry of Finance,during the current budget session of Parliament enhanced the Gratuity limitfrom Rs.10lacs to Rs.20lacs. Just doubled.
The gratuity is to be paid by bank from its revenue. It will add to the financial difficulties of the Banks.While enhancing the gratuity limit, DFS did not think that it will adversely affect the revenue of the Banks.Whereas It is direct burden on the Bank.
WHY: Because the benefit of enhanced
gratuity will also go to Secretary Finance and the staff of G.O.I.
Why the logic as conveyed to RBI is not applicable in this case?.
Why these double standards?
State Governments follow the Central Pay commission for salary of the its employees. Many of the States are not able to pay salaries to their employees regularly. Pension is not paid for months together. Some of the States have yet not cleared the arears of 6th Pay commission.
Yet 7th Pay commission has been implemented from 01.01.2016 without considering how much strain it will put on the finances of the State Governments. Arears of 6th Pay commission has not been cleared,yet 7th Pay commission has been put on to profit.
The states will never be able to clear the Back log.
WHY IT WAS NOT CONSIDERED THAT 7TH PAY COMMISSION WILL CREATE FINANCIAL MESS FOR THE STATES.
WHY:
Because the benefit of 7th pay commission was to go to the Secretary Finance also along with G.O.I employees.
Just double standards of the Ministry.
Another fraud is being committed on the Bank Pensioners by the Ministry. Regulation 35(1) of Pension Regulations 1995 stated:
(In respect of employees who retire between the 1st day of January 1986 but before the 31st day of October,1987, basic pension and additional pension will be updated as per the formula given in appendix-I).
This has been amended in 2002 by Gazette notification.
Theperiod of 01.01.1986 to 31.10.1987 has been replaced by term (where ever applicable).
Now what is-where ever applicable?
On enquiry under RTI as to who have been given benefit of updating of pension under the amended Regulation. Bank reported that all those who qualified have been given this benefit of updating. Bank has no record, whose pension was updated in the last 16 years under the amended regulation.
Now what are the qualifications for updating of pension?
Theword qualification is not defined any where in Regulations. Yet the bank gives the definition of QUALIFICATION by quoting section 2 from annexure-I of Pension regulation 1995 which pertains to updating of pension for those who retired between 1.1.1986 to 31.10.1987. This deals with additional pension on special allowances only.
THIS AMENDEMENT HAS BEEN NOTIFIED BY
BANK AFTER APPROVAL OF THE MINISTRY OF FINANCE AND VETTING BY MINISTRY OF LAW.
No employee has got benefit of updating of pension under the amended regulation WHEREEVER APPLICABLE.
It is 16 years since this amendment was introduced. Why this amendment when benefit was not to be given?
Only to fool the employees of Banks.
You are requested to circulate this informationin in the public and media so that everyone knows the FRAUD being perpetuated on the Banking Sector employees by the Ministry of Finance.
M.S.Sidhu Mobile:9876101509
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