Key Developments In Financial Area

Pension related development 

Friends this letter is outcome of letter sent by AIBRAF  through Sri SURESH AGGRAWAL  OF UNION BANK ,MATHURA  IN PERSON TO HONOURABLE HEMA MALINI  ,MP. IT is positive sign for retired bankers that their demand has reached State Fiancne Minister and Ministry of Finance is aware of problem faced by retirees. 

State Finance Minister has acknowledged that"Pension is a funded Scheme in Public Sector Banks in lieu of Contributory Provident Fund".

Now... 

a) UFBU, constituents of UFBU should take the Stand to nullify IBA,s view point /stand that "Pension Updation will increase expenses/cost  of banks."

Since ,pension is a funded scheme,Pension Fund Trust ,will be sufficient  to bear the cost of updation.

 b) ...Similar stand can be taken in Writs files by shri C N venugopal,in Kerala High court ,Shri Kalia Jee in Delhi High Court and Shri C N Prasad.

3...State Minister of Finance has a acknowledged role of Banks Board in "Framing Pension Regulations under Provisions of Banking Companies (Acquisitions and transfer of undertakings) Act of 1970 and 1980.

Now our Union/ Associations, constituents of UFBU, should approach to all Public Sector  Banks Boards,/Chairman for passing the resolution by Banks Boards to update/, updation  of Pension.

It is  also acknowledged ”that Pension is payable as per the agreement arrived with Banks Unions and Association”. Now ball is in the court of Associations /UFBU/ costituents of UFBU to negotiate with IBA ,forcefully with determined will,for updation of Pension.The  issue for updation of Pension is already in the Charter of Demand of UFBU.

 I once again sincerely thank shree Suresh Agrawal jee, of UNION BANK OF INDIA,MATHURA in submitting the letter Of AIBRAF to MS Hema Malini jee M P  in person,and getting reply  of State Finance Minister,on my request to him,for the benefit and movement of retirees.

 O.P.Parashar ,Union Bank,Retiree AIBRAF ZINDABAD

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Change in policy related to fund transfer by NEFT 

The Reserve Bank of India (RBI) said the National Electronic Funds Transfer (NEFT) facility should be made available by member banks participating in the payment system from December 16 on all days of the year, including holidays.

NEFT is a nation-wide payment system facilitating one-to-one funds transfer. Under this scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the scheme.

With effect from December 16 , there will be 48 half-hourly batches every day. The settlement of first batch will commence after 00:30 hours, and the last batch will end at 00:00 hours. Currently fund transfer transactions are settled in batches under NEFT, which operates in 23 half-hourly batches from 8 am to 7 pm on working days.

It is further informed by RBI that the existing discipline for crediting beneficiary’s account or returning the transaction (within two hours of settlement of the respective batch) to the originating bank will continue. Member banks will ensure sending of positive confirmation message for all NEFT credits. Member banks are expected to keep adequate liquidity in their current account with the RBI at all times to facilitate the successful posting of NEFT batch settlements.

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Large urban co-operative banks (UCBs) may come to be solely under the provisions of the Banking Regulation (BR) Act. Smaller Cooperative Banks are to remain within the exclusive fold of the Registrar of Co-operative Societies (RoCS).

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Merged Bank status

It has come to light that some private banks were trying to mislead a section of depositors of the three state-run banks which will be merged into an entity by telling them to shift their deposits. One of  top UBI officials on Sasaid that the proposed amalgamated lender will retain the "sovereign status". In the biggest consolidation exercise in the banking space, the Centre had announced that the United Bank of India and Oriental Bank of Commerce would be merged with Punjab National Bank, making the proposed entity the second largest public sector bank (PSB).

United Bank of India MD and CEO Ashok Kr Pradhan said that the "sovereign status of the amalgamated entity will not be diluted as government holdings in these banks are very high". The merger of the three PSBs is scheduled to come into force from April 1 next year.

"There are some vested interests. Particularly, some private banks have been spreading rumours by posting their agents in front of some branches and telling the depositors to shift their deposits as these (public sector) banks will be closed down”.

————————-----------------------------------------------------------------------------------------------------------Karvy Stock Depository Episode-----

On 22 November  SEBI barred Karvy Stock Broking Ltd from adding new clients or acting on behalf of clients, and ordered depositories to transfer securities only to their beneficial owners.

Karvy is accused of misusing client securities worth ₹2,800 crore to secure loan facilities from lenders towards working capital. The brokerage also sold off client securities and transferred the proceeds to its real estate group company.

Following the Sebi directive to transfer securities only to beneficial owners, the National Securities Depository Ltd on 2 December transferred ₹2,013 crore into the accounts of 83,862 Karvy clients, which is almost 90% of the affected clients.

The Karvy Stock Broking debacle and the ensuing loss of securities underlying their secured credit have forced lenders, especially banks, to review their exposure to brokerage firms.Fearing that more secured loans could turn unsecured if the loans are backed by client securities, these lenders have sent out letters to brokers to verify whether these securities belonged to them or to clients.

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Denial reply on Gratuity by Ministry  of Finance
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