IBA Has Tarnished Image of Government

Sri Raj Kiran Rai,

Chairman,

Indian Banks' Association

Mumbai

Dear Sri Rai,

    IBA ACT TARNISHES THE IMAGE

    OF GOVT, MAKES IT LITIGANT:

Hope, you don't disown the truth and agree with the fact that the acts & conducts of IBA/Banks contributed to Court cases over 100 in number from PSBs.  Banks are owned by Government. Naturally, court cases cause the adverse bearings on government image. Bankmen take Court cases at government instance, but govt has no role in it. These cases are Bank specific & related to HR issues. Hope, it would have come to your notice, the Hon'ble Supreme Court of India, in a recent observation lambasted on Govt and castigated it as the biggest litigant, burdening the Courts. 

In Banking, there is established Industrial Relations Machinery right from Regional, State and All India level in every Bank. At apex level, IBA is dealing on behalf of member banks on contentious industry level issues with 9/10 Unions. Bulging Court cases prove that IRM system has failed. The Managements & Unions are  meeting frequently  periodically. In over hundreds cases, the Competent Authorities, under Payment of Gratuity Act, have had given decrees in favour of claimants, but having deposited the decreed amount with the Competent Authorities, Banks have gone in appeals. 

Similar is the position in other service matters. Special Allowance envisaged in 10th Settlement/ 7th Joint Note had been held ultra wire by Hon'ble High Court, ignoring it, you have doubled the said allowance, instead meeting in Basic Pay, in 11th settlement. Many cases related to pension updating have been in processes. Every day Pensioners have been knocking the door of Hon'ble Prime Minister, Finance Minister and Cabinet Ministers with representations & memorandums. Hon'ble Finance Minister lost her patience and has come out of her views, which you know. You can understand the height of inactions and inept handling of Pensioners issues that forced Hon'ble Finance Minister to intervene. Notice the climax! It never happened, but happened for the reasons best known to you.

Why such large number of court cases? Why Banks are using their resources and who permit them to harass bankmen? IBA has a fair role to play, but it playa fouls.

In our earlier communications we have had expressed our total dusare to management policy to drag issues in courts, instead resolving them amicably across the table. 

We request you to please STOP making Govt image as litigant. Take steps to review all court cases and resolve them through compromise.

Regards,

( J. N. Shukla)

National Convenor

26.12.2020

9559748834

Copies to:

1. Sri Sunil Mehta,

    Chief Executive,

    Indian Banks Association

    Mumbai

2. Sri Debasish Panda,

    Secretary,

    DFS, MOF, GOI,

    New Delhi

- for information and necessary action. Court cases are tarnishing the image of government, political leadership and burdening Courts.