Unanswered questions on arrear payment

The sudden love of the IBA to offer adhoc arrears raises several questions;

1. Wage settlement was due since Nov 2017, even though Government was in favour of wage settlement to be completed by October 2017 the first offer of 2,% was made by IBA only in 2018 nearly one year after wage settlement was due. Where was this love then?

2. The first offer made by IBA was meagre 2% (remember bank wage settlement is for five year term) . Where was this love then ?

3. Till now there are nearly 30 rounds if discussions held without any concrete outcome except that the offer stands at 12%. Where is the love?

4. Till now IBA is not able to get clear mandate for wage settlement upto Scale VII as was common practice. When it can order all banks to pay adhoc arrears and banks are following it thinking that there is no tomorrow can't IBA apply the same for mandate issue. Where is the love?

5. Lot of sub committee have been formed to settle various demands delaying the process further, when all union representative are available at meeting what was the necessity to have such sub committes. Where is love then?

6. Why IBA did not consult unions before releasing the orders for payment of adhoc arrears when they are party to negotiation, was the intention f IBA is to degrade unions in eyes of employees or to show its its supremacy. Where is love then?

7. Bankers toiled day and night during demonetisation time and asked for compensation in form of overtime which failed to reach IBA or it acted as unheard, then where this love came when nobody asked for it ?

8. Does IBA wants to pacify bankers as they are angry with wage settlement delay,bank  mergers, proposal to go for strike etc ?

9.  There are various issues like security of ATM, attack on bank staff by public at branch or during recovery, decoity at branches, recovery of big corporate NPA, mess created by Government by giving loan waivers causing prompt payers to shun repayment and other problems which needs to be addressed by IBA, leaving all these why such love to release arrears when there is no time limit set for conclusion of wage settlement? 

Or is the IBA hinting that the settlement conclusion may take two more years ?

One month salary in advance for bank employees

In a surprising move IBA has advised all banks to pay one month salary in advance during this festive season. But this amount will be debited from their arrears. It's also to be mentioned that salary settlement of bank employees is due since November 2017. But it's interesting to note that unions are opposing the move by IBA.

Cash withdrawal limit on SB, ATM and other accounts

Reserve Bank of India with effect from 30th January 2017 has removed limits on cash withdrawal from Current / Cash Credit/Overdraft accounts.

Reserve Bank with effect from 1st February 2017 has removed daily limit of Rs.10000 and made it Rs.24000 per day or the limit set by the bank for daily withdrawal thro card retaining Rs.24000 limit per week.

Reserve Bank with effect from 20th February 2017 will raise daily withdrawal limit from Savings Bank account to Rs.50000.

Reserve Bank  with effect from 13th March 2017 will  remove all limits for cash withdrawal from Savings Bank Account.

With that all restrictions on cash withdrawal from all type of accounts and ATM with go and normal transactions will take place bringing demonetisation process to end.

Cash Reserve Ratio (CRR)

All Scheduled Commercial Banks are required to keep a portion of money received from its customer with RBI this is called Cash Reserve Ratio. But Why ?  the answer can be known by reading below article on CRR,

All of we know RBI is the controller of Banks and the monetory / credit system of our country. The RBI act gives it wide powers to do so. Cash Reserve Ratio is one such power of RBI.

As per Section 42(1) of RBI act of 1934 RBI having regard to securing monetary stability of the country prescribes CRR without any floor or ceiling rate.

Bank Strike

          AIBEA has called for all India strike of Bank Employees on 2nd December 2015

Happy Diwali 2015

National Pension System

NPS – New Pension Scheme – Boon for your old age

NPS called National Pension System  is a pension scheme wherein every citizen can participate. The pension they get depend on the amount contributed and the return generated under the scheme.

What is Pension ?

Pension is the monthly amount you get for your living from the amount you contributed to pension fund for a certain number of years.