Bank Unions submit Charter of Demand (Wage Settlement) to IBA

As we are aware the wage settlement expired on 31.10.2007 and new settlement is due from 01.11.2007 And the Bank Unions have already submitted their charter of demands to Indian Banks Association. The copy of same is available for you. Click here to read more.http://groups.google.co.in/group/the-bank-page/web/Charter+of+demands-wage+settlement-bank.pdf

SBI mulls VRS for 40K staff

State Bank of India (SBI) is planning to introduce a voluntary retirement scheme (VRS) for its subordinate staff in the next financial year. The proposed scheme aims to give chance to over 40,000 employees, who find it challenging to work in a computerised environment and competitive market conditions. "The nature of work has changed substantially due to introduction of core banking solutions (CBS) and automation. Besides, the work demands on staff are growing enormously to retain market share. Some of the subordinate staff should get a decent exit option," a senior SBI official said. He, however, ruled out any VRS for the clerical or officer cadre. There are three aspects related to VRS for this category of staffers. First, with computerisation and rollout of core banking platform, their role is limited. Second, even if some of them could be retrained, the cost incurred may not bring much benefit. Finally, they are not mobile.

RBI plugs loophole in forex management regulations

The Reserve Bank of India has detected and plugged a loophole in FEMA (Foreign Exchange Management Act) regulations which some Indian companies were exploiting to raise funds abroad and bring to India. The regulations are related to repayment of advances that are paid by overseas investors to Indian companies for allotment of shares under automatic FDI route. Under these regulations, while Indian companies are allowed to receive advance payment from NRIs and overseas investors, no time limit was stipulated for issue of shares or refund of the amount. Taking advantage of this loophole, companies instead of allotting shares use the advance money for other purposes and refund it after two to three years, giving some vague reasons. On Friday, through a circular to banks and authorised foreign exchange dealers, RBI has plugged this loophole, stipulating that companies receiving funds from abroad as advance payment for allotment of equity shares or debentures should issue the instruments to investors within 180 days.