::::: MINISTRY OF FINANCE INITIATIVES 11TH BI-PARTITE PROCESS ::::: ::::: HAPPY PONGAL :::::

Monday, May 31, 2010

ADIEU SHRI.D.DORAISAMY


Shri.D.Doraisamy who is retiring today at T.Nagar Branch, Chennai has joined the Bank on 15.09.1970 at Triplicane Branch, Chennai. He is qualified with MA (English), CAIIB and Certificate course in Co-operation and Industrial Finance. He was promoted under All India Service in November-1975 and posted to Credit Management Department at Central Office, Mumbai and worked there for 5 Years. He got his transfer from Mumbai to Madurai Region and worked in Madurai Main, South Gate, Tallakulam and Regional Office, Madurai.

He got married in November 1978 and is blessed with a Daughter and a Grand Daughter.

Shri.D.Doraisamy has been in the Trade Union activities ever since he joined the Bank. He was the Vice President of Central Bank of India Employees Union. Later, he became the Joint Secretary of Central Bank Officers Union. In 1984, he walked out of that Union along with 40 others and joined Central Bank Officers’ Association. He was elected as President in March-1988 and has been committee member of our Federation. He also served as President of Madurai District Unit of AIBOC from 1989 for 5 years. He has led from the forefront of our Association for the last 26 years.

We wish him good luck and God speed.

Saturday, May 29, 2010

CIRCULAR NO:77 DT. 26th MAY, 2010

We are reproducing herewith the circular no:77 dt.26.05.2010 issued by AIBOC for our readers:

CIRCULAR NO:77 26th MAY, 2010

TO ALL AFFILIATES/MEMBERS:

REVISION OF GRATUITY CEILING-DATE OF EFFECT IS 24TH MAY 2010


We have just now received a copy of the Gazette Notification issued by the Labour Ministry, Government of India for the purpose of notifying the date of effect of the revision in the Gratuity Ceiling payable under the Payment of Gratuity (Amendment) Act 2010. The date of effect has been made as 24th May 2010, much to our surprise and astonishment.

2. Our members are aware that the Confederation had led a delegation to the Minister of State for Labour and appealed to him to make the date of effect same as in the case of the Central Government employees i.e., 01.01.2006. When we were given to understand that there are certain vested interests from the industry lobby who were inimical to raising the ceiling to Rs.10/- lacs in the Gratuity Act and were attempting to scuttle the amendment; we submitted an exhaustive Memorandum to the Government to ensure that there is no discrimination as regards the date of effect between the Central Government employees and the Banks. There were positive responses from the Labour Ministry and our subsequent interaction with them at various stages also provided sufficient comfort and confidence to us.

3. We are disappointed with the current notification since it results in frustration to all those who retired between 1.1.2006 to 23rd May 2010. We have been receiving anxious queries as to the impact of this notification. The import of the notification is that it is prospective and all those who retire/resign on or after 24th May 2010 shall be eligible for the benefit of the revised ceiling. For those who had retired earlier, we will pursue the matter after due consultation with other organizations as to the manner in which the issue needs to be taken up with the Government. We are also examining the possibility of legal remedy in the matter in view of a large number of representations we have been receiving in the matter.

4. We note to keep our members advised in the matter in due course.


With greetings,


(G.D.NADAF)
GENERAL SECRETARY

CIRCULAR NO: 75 DT.26th MAY, 2010

We are reproducing herewith the circular no:75 dt.26.05.2010 issued by AIBOC for our readers:

CIRCULAR NO: 75 26th MAY, 2010

TO ALL AFFILIATES/MEMBERS:

IMPLEMENTATION OF 9TH BIPARTITE SETTLEMENT
PROCESS ON – IBA ISSUES GUIDELINES TO BANKS
GOVERNMENT’S CLEARANCE IN RESPECT OF OFFICERS AWAITED

We are happy to inform our members that the process of the implementation of the 9th Bipartite is on. The Indian Banks’ Association has since issued detailed communication to all the banks in respect of the Award Staff who signed 9th Bipartite Settlement under the provisions of the Industrial Disputes Act which does not require further approval of the Government. The Communication in regard to the payment of arrears as well as the recovery towards the contribution to Pension Fund on account of the 2nd Option from those who will be required to exercise the option has since been sent to the Banks with instructions to hold the contribution in a separate account pending receipt of the detailed instructions from the Government including the amendment to the Service Regulations in respect of Officers of the banks.
2. We are in touch with the Banking Department to ascertain the latest position as regards the Justify Fullcommunication of in-principle approval pending amendment to the service regulations in respect of the Officers in the banking industry. We understand that the approval is expected at any time. The first phase in respect of the Award Staff for the payment of arrears etc., as per the 9th bipartite settlement having already been initiated, we are confident that the process in respect of the Officers will be expedited.
3. In the meanwhile, we have been receiving anxious enquiries about implementation of the 9th bipartite settlement as well as the 2nd Option on Pension in respect of Officers. We therefore advise the members to have patience for a few more days and the instructions are awaited at the earliest. We also understand that the bank managements have already initiated necessary steps and the workings have since been kept ready so that no delay takes place once the guidelines are received from the Banking Department for implementation of the 9th bipartite, pending amendment to regulations in respect of officers in the banking industry.
4. Comrades, the technical requirement of obtaining the approval of the Ministry of Finance including the Finance Minister should not take much time since the Government is conscious of the pressures that are built across the country awaiting the implementation of the 9th bipartite. We have also been in touch with IBA as well as the Government authorities for early action in this regard.
5. We note to keep all our affiliates/members informed of further details in due course.
With greetings,

(G.D.NADAF)
GENERAL SECRETARY

Saturday, May 22, 2010

AIBOC CIRCULAR NO:73 DT.22.05.2010

We are reproducing herewith the circular no:73 issued by AIBOC for our readers

CIRCULAR NO:73 DT. 22nd MAY, 2010

TO ALL AFFILIATES/MEMBERS:

ENHANCEMENT OF GRATUITY CEILING-LAW MINISTRY ISSUES GAZETTE
NOTIFICATION
-DATE OF EFFECT UNDECIDED – FURTHER CLARIFICATIONS

The process of implementation of the amendment to the Gratuity Act 1972 is on. The Parliament approved the amendment to the Gratuity Act revising the current ceiling from Rs.3.5 lacs to Rs.10.00 lacs on 17.05.2010. The Parliament did not take any decision as regards the date of effect leaving it to the Government to come out at the time of the gazette notification. We took up the issue immediately with the State Minister of Labour to take care of this aspect and ensure that the amendment is made effective from 1.1.2006. However, the process of implementation of the amendment is on. The Law Ministry has issued a Gazette Notification after receiving the assent of President amending the ceiling on the Payment of Gratuity from Rs.3.5 lacs to Rs.10 lacs leaving the issue of date of effect to the Central Government. This has caused yet another uncertainty as regards the retrospective date of effect.
Justify Full
2. We have received an interim reply to our representation from the Ministry of Labour. We have sent another communication to the Labour Ministry re-iterating our demand for implementation of the amendment with effect from 1.1.2006 taking into account the fact that gratuity has been revised in respect of the Central Government employees from the same date, keeping in view the proposed amendment to the Gratuity Act by the Parliament as approved by the Cabinet Committee. A copy of both the circulars were furnished vide Circular Nos. 69 and 71.


3. In the meanwhile, it is necessary to understand the implication of this amendment in respect of Gratuity payable to our members. There are two types of Gratuity. The first one is the Statutory Gratuity which is a statutory obligation and each and every employer is required to adhere to the provisions of this act. The other one is the Service Gratuity introduced by the institutions to their employees internally, which may be a better one than the Statutory Gratuity payable under the Act.

4. Those who are receiving Service Gratuity the provisions of Gratuity Act are applicable for the purpose of payment of Income Tax. The amendment which has now taken place enhancing Gratuity from Rs.3.5 lacs to Rs.10.lacs will be applicable for the purpose of exemption of Income Tax. That is to say all those employees who are the beneficiaries of the Service Gratuity, the gratuity amount may go beyond the ceiling as prescribed under the Act and the entire amount of Gratuity upto Rs.10 lacs will be eligible for the Income Tax Benefit. Accordingly, the Income Tax exemption which was available only to the extent of Rs.3.5 lacs will now be available upto the extent of Rs.10 lacs to all those who will draw the Gratuity of more than Rs.3.5 lacs from the date the provisions are made effective.

5. However, in respect of those who are covered under the Statutory Gratuity, the ceiling can now go upto Rs.10 lacs from the existing ceiling of Rs.3.5 lacs as per the working of the scheme. It is necessary for all those who are covered under the Statutory Gratuity Scheme that the benefit of Ceiling upto Rs.10 lacs is subject to the actual working as per the scheme. The amendment per se does not make every one eligible to higher ceiling of Rs.10 lacs. Hence, they have to workout the actual difference on the basis of their emoluments and can draw the difference between the earlier ceiling with the current ceiling. We have been receiving a number of enquiries from various members as regards the current amendment. Hence this clarification.


6. We will provide further inputs once the date of effect is advised by the Government and actual cases will be worked out so that they would be able to get the advantage of the amendment in due course.

7. All our affiliates/members are requested to await further developments in this regard.


With greetings,

(G.D.NADAF)
GENERAL SECRETARY


Thursday, May 20, 2010

AIBOC CIRCULAR NO:70 DT.20.05.2010

We reproduce herewith the AIBOC circular no:70 dt.20.05.2010 for our readers:

CIRCULAR NO: 70 dt. 20TH MAY, 2010

TO ALL AFFILIATES/MEMBERS:


GENERAL SECRETARIES CONCLAVE - VAGAMON DECLARATION

The First ever “Conclave” of General Secretaries of All India Bank Officers’ Confederation was held at Vagamon, Idukki Dist, Kerala, on 15th and 16th May 2010, to review the path traversed by the Confederation, ever since it was founded on 6th October, 1985 and its meaningful existence in the service of the membership, society and the country as a whole. The participants appreciated the vision of the Founders of the Confederation, its ideology and resolutions adopted in the foundation conference, its efforts in striving hard to improve the service conditions of its membership in public, private, co-operative and RRB Sectors spread across the country and also the proactive role played, in providing feed back to the government in evaluating policies on economic and financial sector. AIBOC has succeeded in its prime agenda of protecting pro-socialistic, socio-economic policies of Government and in opposing the so called policy of liberalization, privatization and globalisation, in the interest of the common man. Our policy has saved the Indian Financial Sector from the ill effects of the global financial crisis. To-day, we look back and feel proud that our resistance to the new economic policies and support to the control system of RBI and the inherent strength of Public Sector Banks has in fact saved our economy. We feel proud to be Members of the only supervisory cadre organisation in the world, with 2.5 lac membership, at the service of the under privileged and the down trodden. The “Conclave” after due deliberations has reaffirmed its faith in the policy declaration of the Confederation and recalled its 25 years of relentless journey, with ups and downs, which has only enabled the Confederation to move forward and to grow from strength to strength. The Confederation has become a household name as an umbrella organisation protecting the interest of its members, across the country. The Confederation is celebrating its SILVER JUBILEE during the current year. In fitness of things, the participants involved themselves whole heartedly in reviewing the 25 years of selfless service and resolved to proceed with the same zeal and enthusiasm and continue to serve the mother land. After two days of brain storming sessions, the following declarations were adopted at the Vagamon Conclave.

1. To reaffirm our faith on the Policy Resolutions, Ideology and Declarations of the Confederation adopted in the Foundation Conference.

2. To continue as an Independent Trade Union for supervising staff in Banking Industry, without being affiliated to any political party or any Central Trade Union, but to seek their support as and when required.

3. To, not to seek any affiliation with foreign Trade Unions but to maintain co-ordination with global unions in order to oppose the LPG policies of Governments across the world.

4. To be led by the Internal Leadership.

5. To strive hard to strengthen the compensation system for officers so as to take care of the risk, responsibility and accountability that they shoulder. To resist the new concept of “cost to the company” being imposed in the banking industry.

6. To improve upon the working conditions of officers for enhancement of Quality of Life.

7. To maintain good relationship with other Industry Level Unions, UFBU, Central and other Trade Unions.

8. To initiate and organize Professional Workers in financial sector, Public Sector and also to organise workers in unorganised sector.

9. To be proactive in providing feedback on the economic and industrial policies to the Governments, Public and to organise discussions, seminars on the same issues.

10. To demand with IBA/Govt. for a structured Bilateral Negotiating Forum with AIBOC, so that issues other than wage revision can be discussed at periodical intervals.

11. To demand 5 days week and regulated working hours for officers in the Banking Industry.

12. To demand with the Government of India not to tinker with the policy of nomination of Officer Directors on Bank Boards and to seek legal intervention wherever Govt. is violating the policy.

13. To understand better, the concept of Participative Management and to update our skills to improve quality of participation at Board level discussions. To represent the views of the organisation with true spirit as its nominee on the Board.

14. To work for mobilisation and consolidation of our membership in all the 82 RRBs in the country.

15. To demand for parity of wages to RRB Officers and for the improvement of their Superannuation benefits.

16. To work for establishment, mobilisation and consolidation of AIBOC in co-operative sector.

17. To encourage and support the Affiliates to improve service conditions of their members.

18. To urge upon the Management to review disciplinary rules and procedure and to take out officers from the jurisdiction of CVC, CBI, Police etc. so as to encourage them to function without fear or favour.

19. To increase liason with Govt. departments and to pursue implementation of AIBOC policies and programmes.

20. To bridge the gap between perception level of the leadership and the membership, on vital issues, through continuous interaction with grassroot level membership.

21. To gain recognition from the management, not only through the check off system, but also by establishing credible relationship with them.

22. To play a watchdog role effectively, in the framing of policies and implementation of programmes by the Bank Managements.

23. To move towards consolidation of membership under the banner of the Confederation and to achieve “One Union: One Industry Policy” that is “to have AIBOC as the only Supervisory Staff Organisation in the Banking Industry in India”.

24. To initiate appropriate steps to face the challenges before the working class in the country in general and officers’ organisations in particular.

25. To establish AIBOC units wherever we do not have a presence and to achieve 100% membership in other Affiliates. Sectoral Federations/Affiliates should draw a time bound action plan for the same.

26. To make inroads and to achieve total membership in the New Generation Private Sector Banks.

27. To challenge deunionisation efforts from different quarters boldly and to open our membership to all grades/scales of officers’ community in the Banks.

28. To further strengthen representative forums at all levels and to retain our prime position as sole bargaining agent of Bank Officers and to remain as a force to reckon with.

29. To further strengthen the democratic functioning of the organisation and to deal transparently with the management and membership.

30. To resolve internal differences within the organisational forums.

31. To encourage feedback and constructive criticism through free and frank discussions at structured forums to improve the functioning.

32. To re-structure the Confederation so as to provide equal opportunities for all sectors and wings.

33. To discuss and finalise the ways and means to strengthen state/dist./town committees. Affiliates may be asked to assist and guide the functioning of the state units in states where they have a major presence.

34. To provide financial support to the State Units by Central Office, for effective functioning.

35. To provide organisational support to the Affiliates to face attacks from Management/Government.

36. To provide wider participation to Women officers in organisational forums as provided in the bye-laws of AIBOC Women’s Wing, in the Affiliates and Confederation level and to constitute their Central Committee in full.

37. To envisage and suitably modify our approach to gain the confidence of recently recruited youngsters. The efforts of the Affiliate/Confederation in improvements of their service conditions be apprised to them.

38. To further strengthen the Affiliates which determine the strength of the Confederation through interaction, guidance, organisational activities, providing organisational and logistical support whenever required.

39. To organise Training Programmes for new recruits, Cadre Development and leadership developments programmes for second line leadership to facilitate smooth succession plan.

40. To interact with the Affiliates/Members to have the benefit of direct feed back on working conditions of officers at branches/base levels and to make continuous efforts to enhance the trust level between Confederation/Affiliates/Membership.

41. To update Banking Knowledge and Skills on a continuous basis at all levels of leadership/membership.

42. To organise Cadre Development Programmes, Inter active sessions amongst the leadership, Study circles to update the Banking knowledge, National, International Economic Scenario at Affiliate and Confederation levels.

43. To organise Conclaves of Presidents and General Secretaries at periodical intervals based on the experience of Vagamon Conclave to discuss and deliberate on the crucial issues confronting the organisation and the Industry.

44. To encourage the Affiliates to organise the Conclave of Presidents and General Secretaries of their base units on similar lines.



2. Comrades, the participants have immense satisfaction of accomplishing the task entrusted to them to lay a road map for the future of the Confederation for the coming decade. The success of the ‘Conclave’ depends on the vigorous implementation of the declaration from all affiliates, Sectoral Federations, with due co-operation by all members.

3. We are confident that, the efforts will bear fruits in the days to come.

AWAKE, ARISE AND STOP NOT TILL THE GOAL IS REACHED

With greetings,

Sd..
(G.D.NADAF)
GENERAL SECRETARY

AIBOC CIRCULAR NO:69 DT.20.05.2010

We reproduce herewith the circular no.69 issued by AIBOC for our readers:-

CIRCULAR NO: 69 dt. 20TH MAY, 2010

TO ALL AFFILIATES/ MEMBERS:

AMENDMENTS TO PAYMENT OF GRATUITY ACT 1972

We took up the issue of revision in ceiling on Payment and Gratuity Act 1972, with Shri. Harish Rawat, Hon’ble Minister of State for Labour and Employment vide our letter No. 1410/140/10 dated 04.05.2010, requesting him to effect the revised ceiling of Rs. 10/- lacs approved by the Lok Sabha and Rajya Sabha, from 1st January, 2006.

2. We are glad that, Hon’ble Minister has responded positively to our request. A D.O letter No. 2/10/MOS/L&E/VIP/2010 dated 13.05.2010 received from Shri. Harish Rawat, Hon’ble Minister is enclosed for your information.

3. .We are glad that, in the Gazette of India, dated 18.05.2010, the following notification has been issued by the Ministry of Law and Justice.

Quote
“ MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 18th May, 2010/Vaisakha 28, 1932 (Saka)

The following Act of Parliament received the assent of the President on the 17th May, 2010 and is hereby published for general information:-

THE PAYMENT OF GRATUITY (AMENDMENT) ACT, 2010
(No. 15 OF 2010)

[17th May, 2010]
An Act further to amend the Payment of Gratuity Act, 1972.

Be it enacted by Parliament in the Sixty – first Year of the Republic of India as follows:-

1. (1) This Act may be called the Payment of Gratuity (Amendment) Act, 2010.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
Short title and commencement
2. In section 4 of the Payment of Gratuity Act, 1972, in sub-section (3), for the words “three lakhs and fifty thousand rupees”, the words “ten lakh rupees” shall be substituted. Amendment of section 4 of Act 39 of 1972.

Unquote
V.K.BHASIN,
Secy. To the Govt. of India


4. We are following up the matter with the concerned Ministry and advise the outcome later.
With warm greetings,
Sd..
(G.D.NADAF)
GENERAL SECRETARY

AIBOC CIRCULAR NO:68 DT.19.05.2010

THE CIRCULAR NO.68 ISSUED BY AIBOC IS REPRODUCED HEREWITH FOR OUR READERS.

CIRCULAR NO:68 DT. 19TH MAY, 2010

TO ALL AFFILIATES/MEMBERS:


FUTURE OF BANK OF RAJASTHAN
CONFEDERATION TO OPPOSE MERGER MOVES

We have to-day sent a communication to the Hon’ble Minister of Finance, Government of India, New Delhi and also to Hon’ble Governor of RBI against the so called move of the merger of the Bank of Rajasthan with ICICI Bank. A Copy of our communication is annexed, which is self-explicit.


2. All our affiliates/members are requested to await for further developments in the matter.

With greetings,

Sd..
(G.D.NADAF)
GENERAL SECRETARY

No.1410/157/10 19.05.2010
Shri. Pranab Kumar Mukherjee, shri. D.Subba Rao,
Hon’ble Finance Minister, Hon’ble Governor of Reserve Bank of India
Government of India, Central Office,
South Block, Shahid Baghat Singh Road,
Parliament House, MUMBAI - 400 001.
NEW DELHI.
Dear Sir,
FUTURE OF BANK OF RAJASTHAN
PROMOTERS DEAL WITH ICICI BANK
We are disturbed by the reports appearing in both press as well as electronic media, as regards the so called decision of the Boards of the Bank of Rajasthan and also the ICICI Bank on the take over of the Bank of Rajasthan by the ICICI Bank, through buying the entire share holdings of Mr.Tayal and his group in a private treaty. This is yet another blow to the Old Generation Private Sector Bank, if this transactions are allowed to take place, since the Bank of Rajasthan which has made tremendous contributions for the economic growth of the State of Rajasthan and the surrounding northern states through a network of 434 branches in ensuring that the credit facilities reach the interior parts of most backward places of these States. The Bank of Rajasthan is one of the oldest Private Sector Banks functioning as per the policies and guidelines laid down by the Reserve Bank of India and the Central Government from time to time in particular the lending to the priority sector so that the State of Rajasthan as well as other backward states are able to ensure their economic growth on par with other states. The Bank has also established a number of branches in the interior parts of Rajasthan while several other banks had their own reservation in serving these parts of the country. The Employees and Officers of these banks have been rendering a yeomen service to the common people of the country.

2. We have seen in the recent past that the aggressive take over which had taken place in respect of Bank of Madura by ICICI only led to frustration amongst the employees and Officers in the Bank and the ICICI Bank utilised the Bank of Madura to add to the number of branches but the yeomen service that was being rendered by the bank earlier was given a go by. Same is the case of Lord Krishna Bank, which was taken over by the Centurian Bank and subsequently by the HDFC Bank, thereby pushing these banks into the fold of the Banks, now controlled by multinationals.

3. The Confederation and its affiliates have been opposing any attempt by the new generation private Banks to take over the old Generation Private Banks with their traditional bond with the local people which are akin to the Nationalized Banks in their style of functioning as well as in discharging of their duties to the cause of the common man in this country. The events which led to the so called in principle decision of the Boards of both the banks has an organised attempt by the Promoter to hand over the Bank of Rajasthan on a platter to the ICICI bank knowing very well that there is a total opposition by the employees and officers working in this bank as well as the local public. We were hoping that with the intervention of the RBI in the matter of ensuring that the Bank of Rajasthan is functioning on a proper line by strengthening the Bank as an independent private bank restoring its past glory. But the developments are contrary to our expectations.

4. We therefore request you to kindly intervene and provide alternative proposal for the Bank of Rajasthan to overcome the current aggressive take over by the ICICI Bank in order to ensure that the faith and trust of the General public, employees and officers in the regulator is not shattered. We are also against this so called merger. There is scope for the alternatives for helping the Bank of Rajasthan to come out of the present difficulties and the promoters should not be allowed to push the bank to the lap of the ICICI Bank and to make huge profits for himself and his associates in the process leaving the employees and officers who were the people who build this bank over the last several years in the lurch. We demand nationalisation of the Bank or merger with a Public Sector Bank instead of merging the Bank with a foreign bank.

5. Please look into the matter and take necessary steps without further delay.

6. Please treat the matter as urgent.
Thanking you,
Yours faithfully,
Sd/-
(G.D.NADAF)
GENERAL SECRETARY

Saturday, May 15, 2010

Govt. may scale down Tax Relief proposed in DTC draft.

People with more than Rs 10 lakh annual income may not get the tax relief originally proposed in the Direct Taxes Code, as the finance ministry is for tweaking slabs across the board to offset concessions elsewhere.

Under the first draft of DTC -- which when implemented will replace the archaic Income Tax Act, 1961 -- income of Rs 10 lakh to Rs 25 lakh was to attract tax at the rate of 20%, but the final draft expected by June 15 may propose slapping 30% tax on any income above Rs 10 lakh per annum, according to sources.

This is to make up for the possible concessions the ministry may extend in other areas like exempting long term savings from tax at the time of withdrawal and the way Minimum Alternate Tax is calculated, sources said.

As such, the relief on highest tax slab would not be much, since under the present regime too, 30% tax is imposed on income of more than Rs eight lakh a year.
Sources said the ministry is reworking the August 2009 draft following feedback from stakeholders. Under this, the 10% tax proposed on income up to Rs 10 lakh may now stand scaled down to Rs five lakh a year.

And income of Rs five-10 lakh a year would attract 20% tax, although the first draft proposed slapping this rate on Rs 10-25 lakh income.
However, the threshold level of income that is exempt from tax may be raised to Rs two lakh from Rs 1.6 lakh at present. The first draft had proposed retaining the threshold limit at Rs 1.6 lakh.

Sources said the government has to generate tax revenue for meeting its expenses and it might yield to the "genuine" demand of MAT being imposed on book profits rather than on gross assets as suggested in the first draft.
"Gross assets also include the debt portion of a company and it is highly illogical to tax debt," said a source.

MAT is a tax imposed on profit making companies who do not fall under any tax because of various exemptions.

Further, the ministry might also agree to retain the current provision of following exempt-exempt-exempt (EEE) model for long term savings like provident fund and pension, instead of changing to exempt-exempt-tax (EET). EET model implies that tax would be imposed on long term savings at the time of withdrawal.
On tax exemptions on home loans, on which the first draft is completely silent, sources said that there might be no rebates in the second draft as well, since the individual tax exemption limit on savings like insurance and others is proposed to be hiked to Rs three lakh from the current Rs1 lakh.

"This more than compensates" for doing away with tax rebates on the housing loans, the source said. The final draft would be open for feedbacks from various stakeholders for 15 days, after which the ministry would put it up for the cabinet’s approval before taking it to Parliament.

Earlier, in this fiscals Budget, the Government had widened the tax slab so that tax of 30% falls on income above Rs eight lakh, 20% on Rs five-eight lakh and 10 per cent on Rs 1.6 lakh-five lakh.
Source: The Economic Times

FOUR PSUs TO GET FUND INFUSION FROM GOVERNMENT

Four state-run banks—Vijaya Bank, Central Bank of India, UCO Bank and United Bank of India —are likely to get Rs 1,500 crore as part of their recapitalisation package soon, according to official sources here.

The fund infusion will enable these banks to maintain comfortable level of capital to risk-weighted asset ratio for supporting credit requirement of the productive sectors.

Of the total, Vijaya Bank will get Rs 700 crore, UCO Bank Rs 300 crore, Central Bank and United Bank of India Rs 250 crore each, sources said, adding the government has already made a provision for subscription to Tier-I instrument for capitalisation of these bank in the budget.

During the past fiscal, the government had provided Rs 1,200-crore capital support to Central Bank of India, UCO Bank and United Bank of India to meet their capital requirement. UCO Bank and Central Bank of India got Rs 450 crore each while United Bank of India, which recently got listed, received a financial assistance of Rs 300crore.

Financial-Support:
--------------------

The government plans to provide financial support of Rs 15,000 crore to the public sector banks during the current fiscal. The Cabinet has already approved capital infusion plan that will increase the lending capacity of the banks by Rs 1.85 lakh crore. The exact amount, the mode of capitalisation and other terms would be decided in consultation with the banks at the time of infusion.

The Rs 15,000-crore fund infusion for Tier I capital instruments of PSBs would enable them to expand their credit growth by about Rs 1,85,000 crore. This additional availability of credit is likely to benefit employment oriented sectors, especially agriculture, micro and small enterprises and entrepreneurs.

Source:http://www.deccanherald.com/content/68543/four-psu-banks-get-rs.html

Friday, May 14, 2010

AIBOC CIRCULAR NO:65 DT.14.05.2010

We reproduce herewith the AIBOC circular no:65 dt14.05.2010 for our readers

CIRCULAR No.65 Dt.14.05.2010

TO ALL AFFILIATES/MEMBERS:

IMPLEMENTATION OF 9TH BIPARTITE SETTLEMENT
PROCESS ON – IBA ISSUES GUIDELINES TO BANKS
GOVERNMENT’S CLEARANCE IN RESPECT OF OFFICERS’ AWAITED

We are happy to inform our members that the process of implementation of the 9th Bipartite is on. The Indian Banks’ Association has since issued detail communication to all the banks in respect of the Award Staff who signed 9th Bipartite Settlement under the provisions of the Industrial Dispute Act, 1947, which does not require further approval of the Government. The communication in regard to the payment as well as the recovery towards the contribution to Pension Fund on account of the 2nd Option is as under:
a) An amount equal to 2.8 times of the “Pay” for the month of November, 2007 be withheld and kept in a suspense account for crediting to the Pension Fund in case the employee opts to join the Pension Scheme complying with the terms of the Settlement dated 27th April, 2010.
b) If any employee gives in writing an irrevocable letter stating that he does not intend to join the Pension Scheme in terms of the Settlement, 2.8 times of the November 2007 pay as above need not be withheld.
c) Once the offer is made to join the Pension Scheme, on expiry of the period of option, the amount withheld in respect of those who exercised the option to join the Pension Scheme should be transferred to the Pension Fund. The arrears withheld in respect of those who did not opt for pension within the stipulated time, be refunded to them.
d) No portion of arrears be withheld in respect of non-optee employees who retired from 1st November 2007 to 27th April 2010. They will be joining the Pension Scheme by making contribution towards funding gap as retired employees in terms of the Settlement.
2. We are keeping in touch with the IBA to ascertain the latest position as regards in-principle approval, pending amendment to the service regulations in respect of the Officers in the banking industry. We understand that the approval is expected at any time. The first phase in respect of the Award Staff for the payment of arrears etc., as per the 9th bipartite settlement having been already initiated we are confident that the process in respect of the Officers will get speeded up now.
3. In the meanwhile, we have been receiving anxious enquiries on implementation of 2nd Option on Pension. The process of obtaining in-principle approval from Govt. is also in progress. We therefore advise members to have patience for a few days more as the instructions are awaited at the earliest. We also understand that the bank managements have already initiated necessary steps and the calculations have since been kept ready so that no delay takes place once the guidelines are received from the banking department for the implementation of the 9th bipartite.
4. Comrades, the technical requirement of obtaining the approval of the Ministry of Finance including the Finance minister should not take much time since the Government is conscious of the pressures that are built across the country, awaiting implementation of the 9th bipartite.
5. We note to keep all our affiliates/members informed of further details in due course.

With greetings,


Sd..
(G.D.NADAF)
GENERAL SECRETARY

Thursday, May 13, 2010

BARE TRUTH - SECOND OPTION ON PENSION

We reproduce herewith Circular no:64 dt.12.05.2010 on 'Second option on pension' issued by AIBOC for our readers .


CIRCULAR NO.64 dt 12.05.2010
TO ALL AFFILIATES/MEMBERS:


2ND OPTION ON PENSION – BARE TRUTH


With our intense struggles and strikes during the 90’s, the Confederation was successful in securing Pension in the Banking Industry w.e.f. 01.11.1993. Infact the Confederation demanded Pension as a third retiral benefit. But some of the Unions did not support our demand and hence we had to accept pension as second retiral benefit in lieu of Contributory Provident Fund. However, service gratuity continued along with the pension. Due to the draconian clause in Pension Regulations, treating the strike as break in service and the higher interest rates prevailing on deposits in 1993-1995, many of the employees and officers did not join the pension scheme. However, it was made compulsory for those who joined the banking service w.e.f. 01.11.1993. Subsequently, the draconian clause of break-in-service for participating in strike was removed from the pension regulations on account of agitation launched by the unions. The unions wanted that in view of the removal of the restrictions, one more option on pension should be introduced. Due to the economic slow down, opening up of our economy to global forces, interest rates on deposits came down drastically. In successive bipartites thereafter; pension scheme was improved and it became more attractive, as compared to the contributory provident fund scheme.

2. Hence, the employees and officers, who remained in CPF scheme, intensified their demand for one more Option to choose pension benefit in lieu of CPF. The Govt. of India, IBA and Bank Managements, refused to offer one more Option to CPF Optees, as they wanted to avoid uncertain liabilities of pension payment. Pension being a social security measure, cannot be compared with the Contributory Provident Fund. But, pension funds of banks were not sufficient to take care of load of the existing pension Optees, as against the statutory contribution at 10% of pay towards the pension fund, both by the Bank and the employees, was insufficient to meet the pension liabilities. During 2001, Banks came out with a Special Voluntary Retirement scheme that put a lot of pressure on the pension fund to meet the consolidated liability, for which no additional Provisions were made by the Banks.

3. During the bipartites in 1997 and 2002, few of the Banks’ balance sheets were not comfortable to bear the cost of salary revision and the pension liability. Therefore, during the VII Bipartite settlement, unions came forward to support the pension fund of the Banks by volunteering to bear a part of the additional cost (incremental cost on pension) to be incurred on account of revised pay. The IBA offered 12.25% increase in wage load. The employees and officers shared 50% of the incremental cost of revision towards pension; which was at 8.25% of pay apart from 10% of pay in lieu of P.F; out of salary revision load. The managements also contributed 18.25% of pay towards additional cost of pension. But Banks were not in a position to assure 50% of the last drawn pay as pension and hence, for the purpose of Pension, separate scales were constructed with merger of 1616 points of D.A, whereas for the purpose of regular scales, the DA merger in the basic pay was at 1684 points with loading thereafter. This has virtually influenced IBA to accept our discussions on the issue of 2nd Option.

4. During 8th bipartite, the anomaly as regards inferior basic pay for the purpose of pension was rectified and both for pension and regular scale, a common scale with merger of 2288 points of DA with appropriate loading was considered. Here again, both managements of Banks and the employees, bore additional cost on pension on account of salary revision at 9.25% of pay in addition to 10% of pay and managements at 11.25% of pay in addition to 10% of pay in the ratio of 45% and 55%, respectively.

5. The struggle for one more Option for Pension took centre stage after signing of joint note under 8th bipartite on 2nd June 2005. A suitable clause was inserted in the joint note as regards demand of the Confederation for one more Option on pension. Accordingly, alternate scheme was to be evolved to resolve the issue. The UFBU took up the issue with all seriousness with the IBA/Government for 2nd Option on Pension, along with other issues like, compassionate appointment scheme, attack on trade union rights, opposition to merger and acquisition, early salary revision etc. The UFBU observed successful strike on 25th January, 2008 and was in readiness to observe two days strike on 25th and 26th February 2008, followed by indefinite strike from the middle of March 2008. The IBA/Govt. having assessed the situation properly convinced the leadership of UFBU to defer the two days strikes action on 25th and 26th February 2008, with an MoU on the 25th February 2008 that, they will “consider” the demand of 2nd Option on Pension favourably.

6. Accordingly, at wee hours of 25th February 2008, proposed two days strike was deferred and an MoU with IBA was signed on the same day, with an understanding that, according to the suggestion of the leadership of the Confederation common actuaries would be appointed to ascertain the gap in fund to consider the demand of 2nd Option on Pension.

7. Earlier, IBA came out with Rs. 26,000/- crore gap in pension fund to consider the demand of 2nd Option on Pension, where as, UFBU assessed it through its Actuaries at Rs. 4,700/- crore. There was a huge difference in the assessments of the gap and hence, it was the leadership of the Confederation which suggested the then Chairman of IBA Shri.M.B.N.Rao, at a meeting held on 22.02.2008 at Delhi, for common actuaries to asses the funding of gap with common parameters agreed by IBA and UFBU together. The gap was estimated by the common actuaries at Rs. 6000/- crore to consider the demand for existing CPF Optees for 2nd Option on Pension as on 31.03.2007. As committed earlier, UFBU after due negotiations agreed to contribute at 30% of the gap i.e., Rs. 1800/- crore towards the pension fund, out of the salary revision arrears and Rs.4,200/- crores are to be contributed by the Banks. Accordingly, an MOU was drawn on 27th November 2009 with IBA for 17.5% increase in salary and allowances and one more option of pension to CPF Optees. The modalities for sharing the 30% of the gap was evolved on 13th April, 2010, at 1.6 times of the revised pay of employees and officers except SBI as they are governed by a different pension scheme. The 2nd Option is also made available to all retired employees and families of employees who died during that period from 1993/1995 onwards to the date of settlement of the scheme. It was assured that out of Rs. 3,115/- crore, fund gap in respect of retirees of Rs. 935/- crores (30%) was to be contributed by the retirees by way of refund of 156% of Bank’s contribution of PF received by them towards the pension fund. There was a dispute as regards date of effect of the pension to CPF Optees and modalities of contribution etc. The UFBU decided to approach the Hon’ble Finance Minister, Government of India, as UFBU demanded a pension to CPF Optees w.e.f 01.04.2008 which was rejected by the IBA, and IBA offered it from the date of signing the final settlement on pension. Due to the intervention of the Finance Minister, on 21.04.2010 at Delhi, a via media was suggested that, pension may be effective from the date of effect of MoU i.e., 27th November, 2009. But, for the purpose of contribution of 30% of the gap, they will be treated as retirees up to the date of signing of the pension agreement. The Finance Minister was also quick in cautioning the UFBU leadership to settle the issue immediately otherwise the entire understandings may create a problem.

8. As the day of signing the settlement on 27th April, 2010 was fast approaching, few pension optees knocked the door of Hon’ble High Court of Andhra Pradesh and one of the Constituents of the UFBU who was a signatory to the MoU also sent a legal opinion to the IBA, protesting against contribution by the pension optees. It was a bolt from the blue. Anxious enquiries started pouring in the Confederation Office on salary revision and pension settlement. Under the chaotic situation, UFBU decided to meet on 26th April, 2010 at Mumbai to review the position, as terms and conditions of the 2nd Option cost were almost known to the entire rank and file. The following were the perceptions at different levels.

9. Pension Optees – When pension was opted in lieu of CPF during 1993/1995, why they should contribute towards the gap in the fund. In case of CPF Optees, they have option either to opt or not to opt and remain in CPF and accordingly, either to contribute or not to contribute towards pension fund gap. Whereas, for pension optees, such options are not available and it is compulsory for them to contribute towards the pension gap. In case of those, who joined the Banking Industry from 01.11.1993, there was no option for them to opt for CPF. Whatever, additional contribution made towards the pension fund during 7th and 8th bipartite by way of incremental cost on pension, was for strengthening the Pension Fund Account of Banks to take care of future liability of payment of Pension to retirees. As they are yet to complete minimum service of 20 years to be eligible for pension, they are yet to reap the fruits of pension. The 30% of gap in fund on account of 2nd Option on Pension has to be met by the CPF Optees, as they are beneficiaries of the present settlement. Hence, why Pension Optees, should contribute towards gap of pension fund for 2nd Option?

10. CPF Optees: As per the understandings reached between the IBA and UFBU, according to MoU dated 27.11.2009, all employees, have to contribute Rs. 1800/- crores gap in pension fund to take care of 2nd Option to CPF Optees. It worked out to 1.6 times of revised “pay” as on 01.11.2007 which was communicated to the membership through UFBU Circular. When CPF Optees had supported the Pension fund earlier by way of sharing portion of incremental cost on pension, why the pension optees should not share the gap in pension fund now? They may have to shell down major portion of arrears of salary and allowance to secure pension benefit, etc.

11. IBA: They were not inclined to offer one more option to CPF Optees as Pension fund is not viable to sustain additional burden. In fact, to meet future liability of pension to existing pension optees, they are contributing more than 10% of the pay, out of the balance sheet to the pension fund. That is the reason why, they proposed differential pay scale in 7th Bipartite for the purpose of pension. Due to unions volunteering to bear additional load equally out of salary revision during 7th and 8th Bipartite, the position was improved. But, they were interested in introduction of Defined Contributory Pension Scheme in the Banking Industry for future recruits to take care of uncertainty in liability towards pension payment. The Govt. also was interested in imposing the New Pension Scheme in the Banking Industry.

12. However, due to the pressure from UFBU and also volunteering to share the additional cost to be incurred by Bank Managements towards one more option to CPF Optees, they agreed to consider the demand of UFBU. After detailed deliberations IBA agreed to contribute Rs. 4,200/- crores out of Rs. 6,000/- crores gap and remaining balance of Rs. 1,800/- crores was to be shared by the employees. Similarly, in case of retirees, 30% of gap has to be contributed by them, which works out at 156% of P.F contribution of Banks. As long as there was unanimity as regards modalities for sharing of additional cost by the employees, IBA was comfortable. But, when one of the Constituents of UFBU, raised the basic issue of sharing of cost, and few employees approached the Hon’ble High Court of Andhra Pradesh, both Govt. and IBA became alert and over cautious, and they never wanted to be dragged in to any kind of legal hassles. The Govt. was quick enough in advising the IBA to recover the agreed share of employees towards the gap in pension fund from the CPF Optees only as the option to switch over from CPF to pension was for them only. Their attitude was either take it or leave it. It was their final offer.

13. UFBU: In accordance with the provisions made in the Joint note during the 8th Bipartite for alternate scheme, UFBU was successful in ensuring existing pension scheme to be offered to CPF Optees as well. UFBU did not agree for offer of IBA of inferior pension scheme or defined contributory scheme. The IBA was also proposing to impose certain restrictions to CPF Optees joining the Pension Scheme such as, Voluntary Retirement and commutation will not be considered for these optees etc. We did not agree for any change in the existing pension scheme to be offered to CPF Optees. The only condition considered by the UFBU was to share a portion of the gap by employees, as grass root level membership was desperate for pension scheme at any cost. Even, some of the leadership received a feed back from the membership that, the priority in 9th Bipartite is one more Option for Pension and they do not mind compromising on the lower increase in salary and allowances. The mandate given to the leadership was to secure 2nd Option on Pension at any cost. Therefore, the demand for 2nd Option was ‘now or never’. The issue cannot be made as a dispute and declare strike, at this stage. To some extent Govt./IBA exploited the situation by offering a poor package for revision in salary and allowances, making New Pension Scheme compulsory for new recruits w.e.f 01.04.2010, date of effect of pension from a prospective date i.e., from the date of signing of the settlement on pension. In UFBU, the majority view was to share the additional cost on 2nd Option by all the employees equally. Accordingly, as late as on 26.04.2010, in the UFBU meeting it was decided that, sharing of the cost shall be at 1.6 times of revised pay by all employees to whom pension regulations apply.

14. When UFBU leadership met IBA representatives on 26.04.2010 evening, despite our best efforts to convince the IBA for recovery of cost equally from all employees, reportedly Govt. did not permit IBA to agree to our view and they stuck to their decision to offer the pension to CPF Optees at 2.8 times of revised “pay”. We were advised, earlier, by IBA to come for signing of agreements, on pension and salary revision on 27th April, 2010 at 11:00 A.M. The IBA’s offer to UFBU was final and this put all of us in a tight spot. We expressed our inability to toe the line of the IBA and accordingly, stalemate continued. At that moment IBA officials cancelled the signing ceremony proposed on 27th April, 2010 and advised their negotiating team members to cancel their travel plans to Mumbai.

15. 26th April 2010, a night never to be forgotten: The Constituents of UFBU, after leaving IBA office at 9:30 p.m. were receiving anxious calls from the leaders and members, about the fate of the 2nd Option on Pension and future course of action. The issue being more sensitive and delicate was to be handled carefully by the UFBU. The membership was restless. They wanted settlement to take place without loss of further time. The following were the alternatives before the UFBU.

a) To reject the offer of the IBA and declare agitation.
b) To accept the offer and leave it to the judgement of CPF optees to decide.
c) Whether is it wise to raise the dispute on 2nd Option at the last stage after struggling for 15 years for the benefit, and to invite uncertainty?
d) Whether Govt. whose priority is elsewhere, will entertain the dispute and if they go back on their offer, what is the recourse?
e) The IBA was feeling that Rs. 6000/- crore gap in fund assessed by the common actuaries was much less as compared to the actual gap in fund due to the changed scenario on interest front and discount value. The revised gap of allowances to be assessed will be much more than Rs.6,000/- crores.
f) Whether pension optees will support the stand of UFBU to volunteer to contribute towards the gap in pension fund to take care of 2nd Option to CPF Optees etc.

16. On weighing the alternatives, consulting leadership at all levels, reading the pulse of the grass root level membership, we never wanted that, there should be a slip between the cup and the lip. To be on the safer side, let UFBU make available the Option to CPF Optees, may be at a higher cost, but the social security available to them cannot be measured in terms of few more thousands of rupees to be contributed by them to strengthen the pension fund. The interested members may not forgive the leadership if the option is withdrawn by the IBA/Govt. on one or the other pretext at this stage. The decision had to be taken without loss of time, as IBA/Govt. having grouse against assessment of gap in pension fund, should not find an alibi to go back on the offer.

17. Accordingly, UFBU met again on 27th April, 2010 at 10.00 a.m and after due deliberations, took a view to communicate to the IBA to go ahead with signing ceremony on the same day, on salary revision as well as on pension settlement. All the 9 constituents of UFBU signed the settlement on 9th Bipartite and Pension offer to CPF Optees with contribution of 2.8 times of revised “pay” towards the gap of pension fund. The effective date of pension to CPF Optees will be from 27th November, 2009. All those who have retired upto 27.04.2010 will be coming under the bracket of retirees and will return Bank’s contribution of PF with 56% additional contribution. They will be eligible for commutation of Pension. They will not contribute 2.8 times of revised “pay” towards the gap in Pension. The CPF Optees will contribute 2-8 times of revised “Pay” as on 01.11.2007, to switch over to the pension scheme etc.

18. Comrades, this is the saga of sacrifices and struggles by all members of the Confederation in securing Pension in the Banking Industry, and its improvements from time to time with latest benefit of another option to CPF optees to secure their future and lead a life without depending on others, in their old age. This achievement has come during the 25th year of the Confederation. We have every reason to celebrate the occasion, which is a momentous achievement in the annals of trade union history. We are confident that our learned membership will appreciate the stand taken by the Confederation in the given circumstances. The vested interest are again trying to fish in the troubled water. We have therefore brought bare truth on 2nd Option on Pension to the notice of the membership. Our membership is seasoned and matured to support the stand of the Confederation.

AIBOC - ZINDABAD
OUR UNITY - ZINDABAD
With greetings,
Sd..
(G.D.NADAF)
GENERAL SECRETARY

Wednesday, May 12, 2010

WAGE REVISION

CIRCULAR RECEIVED FROM CENTRAL OFFICE CONTAINING INFORMATION REGARDING JOINT NOTE DATED 27th APRIL 2010 SIGNED BETWEEN IBA AND OFFICERS’ ASSOCIATION. ARREARS TO BE PAID ONLY AFTER GETTING ‘NO OBJECTION’ FROM THE GOVERNMENT.

AIBOC CIRCULAR NO 62 DT.11.05.2010

We reproduce herewith the Cicular No:62 dt.11.05.2010 issued by AIBOC for our readers.

CIRCULAR NO.62 11.05.2010

TO ALL AFFILIATES/MEMBERS:

17TH GENERAL BODY CONFERENCE OF
CENTRAL BANK OFFICERS’ ASSOCIATION, TAMILNADU

Central Bank Officers’ Association, Tamil Nadu, had organized their 17th General Body conference at Chennai on 9th May, 2010 in a grand manner. The A.C. hall of Vijaya Mahal was jam-packed with the members of CBOA Tamil Nadu State Unit at 10:00 A.M sharp. The inaugural session commenced with a prayer.

2. Com.A.R.Saifulla, General Secretary of the State Unit, welcomed the gathering. Com.D.S.Bhadauria, General Secretary of All India Central Bank Officers’ Federation inaugurated the conference by lighting the lamp along with the other dignitaries on the dais. In his inaugural address he expressed his concern that, interpersonal relations in the Bank were strained during the period 2006-2008, which has affected the development of bank business. However, under the present leadership of the Bank, the situation has improved and result can be seen in surpassing the rupees one thousand crore mark in profit of the Bank. The Federation has ensured policy for Promotion and Transfer through bilateral discussions. The fitment formula to be implemented in the Bank is under discussion with the Management. He advised the members to extend full co-operation to the Management which is taking the Bank to further heights. He also released a special ‘logo’ designed for the Tamil Nadu Unit of CBOA.

3. Com.N.K.Pareek, President of AICBOF delivered presidential address. He covered the history of the Tamil Nadu State Unit and complimented the leadership of the Unit for keeping it as one of the vibrant units of the AICBOF. He thanked the Confederation in realising the long cherished dream of the

CPF Optees to switch over to the Pension Scheme. He also expressed his gratitude to the Confederation in supporting the AICBOF during the turbulent period of offensive management. He released a special blog for the Tamil Nadu Unit – www.cboatamilnadu.com, which contains useful information to the membership.

4. Shri. S.Kannan, General Manager, of the Chennai Zone, in his special address complimented the positive role played by the Association and the officers achieving the business goals. He advised the staff to come out of negative thinking and evolve a helpful attitude towards the colleagues to render the best customer service. It is advantageous to the Officers to learn the local language to understand the need of the customers, said Shri.Kannan.

5. Com.G.D.Nadaf, General Secretary, AIBOC, in his key note addressed briefed on the details of the 9th Bipartite Settlement and 2nd Option on Pension. In the given circumstances, 17.5% salary increase and one more option for pension are land mark achievements of the Confederation. Due to the last minute complications, legal opinion sent to the IBA by one of the constituents of UFBU and court cases filed by pension optees at Hon’ble Court of Andhra Pradesh, have complicated the IBA /Govt. to change their stand as regards sharing of 30% of the gap in pension fund by employees to offer one more pension option. There was no other alternative to the Confederation than to achieve the pension for CPF Optees who are waiting for an opportunity for more than 15 years. Therefore, offer of IBA was accepted to contribute 2.8 times of revised pay by CPF Optees. He also covered the improvements in other service conditions through the 9th Bipartite.

6. As regards bank level issues, he appealed to the Management to boost the morale of the staff to contribute their mite in achieving business goals and also to restore certain facilities earned through sustained struggle by the AICBOF and AIBOC to the officers. There is a need to revisit the object behind transfer policy of the Bank and to take care of man power required to manage the business to maintain good customer service. The members welcomed the 9th Bipartite with pension option by thunderous applause.

7. Com.D.Doraisamy, President of the Association was given a heart touching farewell by the leaders on account of his retirement from the Bank and in tune with the rich tradition of the Confederation, relinquishing the position from the Association. Com.Doraisamy responded to the felicitations and donated a cheque for Rs. 20,000/- towards the Association on the eve on his retirement from the Bank. Earlier, a cheque for Rs. 5000/- was presented to the Anna Anandhai Illam, an organisation in service of the society especially orphans and destitute ever since it was started in 1971. Out of the benevolent fund, a cheque was presented to the family member of the deceased officers who died while in service. Meritorious children of the officers were awarded. S/Shri. K.Mohanan, Senior Manager, Y.S.Kumar, Treasurer, AICBOF, D.S.Lahane, Jt.General Secretary, AICBOF, spoke on the occasion. Com.K.Elangovan, Organising Secretary, proposed vote of thanks.

8. In the business session, General Secretary’s report was adopted unanimously and Com.Vijaya Raghavan and Com.A.R.Saifullah were elected unopposed as President and General Secretary of the Tamil Nadu Unit. We congratulate and wish them all the best. We compliment the leadership of the Tamil Nadu State Unit of CBOA for the success of the Conference.

With greetings,


Sd..
(G.D.NADAF)
GENERAL SECRETARY