Sister Nirmala Sitharaman,
Hon'ble Finance Minister,
GOI,
New Delhi
Respected Sister,
Sub: Role of IBA in Banking:
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INDIAN BANKS' ASSOCIATION
Trouble Shooter
OR
Trouble Perpitrator !!
Further, to our mail dated 24th October, 2019, we would like to state something more for your kind information and action as you deem fit.
In our mail under reference, having dealt at length the activities of IBA, we urged upon you to (i) direct IBA to STOP their acts aimed at fostering provocations, discontentment & frustrations among banking fraternity, (ii) direct Banks/IBA to RESPECT the direction/ advice whatsoever contained in DFS letter No.F.24/7/92-IR (Vol-ll) dated 24.2.2012 and pay mediclaim insurance Premium from Welfare Funds, (iii) direct Banks/IBA to REVISE Pension/family Pension on RBI line, since sanctioned by Govt. and ( iv) direct IBA to give ADEQUATE PAY RISE to working bank employees/officers in consonance with their counter part in Central services, risks and responsibilities, as present scenario is very disheartening & poor. We look forward to STOP, RESPECT, REVISE & ADEQUATE PAY RISE directives from your good offices to control the damages that IBA has been perpitrating on the image of Govt.
Now, we would like to raise questions on IBA's institutional framework as under:
1. Is it a cell company floated by Banks & recognized by Finance Ministry or it has any legal status?
2. Is it constitutional, regulated under any law and recognized entity or just a Club of Bankers?
3. Is it a legal body and accountable or just free from any law of the land?
4. Is it covered under RTI Act?
5. It has been signing settlements/ agreements under Industrial Disputes Acts, advising and interfering in Policy matters and decisions of PSBs, but under which capacity or authority is not clear. Has it been empowered by DFS and if so under what law of the land?
6. It has been collecting crores from PSBs and private Banks, every year as fees etc. PSBs are public sector entities. If IBA is a private & voluntary association of Banks, how Public sector entities, PSBs, can fund IBA in such a manner? Are PSBs doing any contribution to Unions of their Banks, which in fact relate to & represent their workforce, directly contribute in generating surplus?
7. MOF vide letter No:F.14/7/92-IR(Vol-II) dated 24.2.2012 authorized Mr. K. Unnikrishnan, Dy. Chief Executive of IBA to provide Group Insurance policies for both serving and retired employees from the Welfare Funds. But IBA Chief prevented him from taking any action in the matter. However, after lapse of 3 years and 7 months, Mr. Unnikrishnan wrote to Banks to provide mediclaim insurance facilities to retirees at par with that of serving staff, vide his circular No.HR-IR/2015-16/XBPS/J/1413 dated 1.10.2015. But, the IBA Chairman insisted that the premium should be borne by the retirees even though there were adequate balance in the Welfare Funds. It was in contravention & disregard of DFS letter under reference. Really, has IBA such power as to supress or disregard govt directives?
8. Thereafter the IBA Chairman allowed the Insurance company to unilaterally increase the premium by 1259% for officer retirees and by 584% for workmen retirees in last 4 years, which is unheard of in the history of insurance in the country, that too by a Public Sector insurer, UIIC.
9. As a result of inept handling of HR issues, numerous cases have so far been filed against Banks/ GOI/ IBA by the bank pensioners/ Unions in various High Courts, crores are being wasted on litigations. DFS is aware of certain Hon'ble SC decisions, be it 1616/1684 pay/pension issue or one SBI Chairman giving unconditional apology in a contempt case. Despite SC ruling that in an industry there can't be discrimination in compensation, but sheer apathy prevails in Banking at the instance of IBA where a section of Retirees are not paid same rate of DA as others. It's known as 100% DA case, now under curative petition at SC. IBA insisted on segregating a part of Basic Pay increase into Special Allowance, just to disqualify for Pension calculation which has been held ultravires by Court. Records speak of numererous such instances of fouls, ultimately causing unrest, agitations, court cases etc. in Banking.
10. IBA has issued a Circular letter dated 30th September, 2019 clarifying to their member Banks it's ( IBA's) legal status. IBA admits in it's communication, it's voluntary organization, neither govt/ govt dept nor regulator, nor even self regulated, self regulatory organization. It says, it has no authority over Banks, it doesn't issue any direction, its not amendable to writ etc. It cites the decision of Bombay High Court in writ petition 2796/2005 & 1388/2006 ( Kishore S. Boat v/s IBA) to absolve itself from any responsibility or accountability, formal or informal, legal or otherwise.
11. If IBA stand by their own admissions and averments as made in it's 30th Sept.,2019 as referred in para 10 supra, is taken into consideration, it leads to landmark question, how and why Banks or the Govt have been engaging IBA for host of policy decisions, agreements and memorandum of understandings on their behalf? IBA derives financial contributions in several hundreds of crore every year and it lavishly spends to twist and turn the rights & legitimate decisions. It's just extra constitutional authority of no legal status or identity involved in unaccountable businesses.
12. Today Banking is hot bed, totally in grip of anti-govt wave, not because govt has done something wrong, but because of play that IBA plays with the HR issues. For reference, govt directed in Jan., 2016, 22 months in advance, to start next wage revision talks, so as you to clinch settlement before 1.11.2017. Why did it not move is a question of intention. By now in over 30 sittings starting from May, 2017- stretch over 29 months, they have been just precipitating the situation, adding fuel to fire. If social media is taken a look, it mirrors anti-govt resentments, anger and anguish among working & retired banking fraternity. It depicts bankmen as most saddened lot. Social media give a vivid display of most pathetic and inhuman depiction of Pensioners plights & miserable life that made hell of them due to no pension revision ever since it has been introduced from Jan. 1986. Could it be believed in Banking, where powerful Unions and bilaterism exist for over 5 decades and wage revisions have had taken place from 1998, 2002, 2007, 2012 & talks are ahead for 2017, but of no Pension Revision or any single penny worth relief out of huge Welfare Funds being allocated every year as per government directive?
We, therefore, urge upon you to please have a glance over entire scenarios in Banking, role of PSBs, IBA Executives etc which in nut shell depicts nursing total anti- govt wave. Bankmen or Retirees do not examine the things meticulously, rather take a prima-fasie view, because PSBs are owned by govt and bankmen think, how such acts could be done without knowledge and permission of Govt. by IBA! They are right in their perception. But, fact is that it's total creation of IBA in league with some powerful Unions wedded to political interests.
Please, therefore, the Govt may relinquish IBA from it's existing roles in Banking matter. Banks must be stopped paying Crores in whatsoever names to IBA. IBA's legal status is undisputed in their own admission, so why the govt should engage an illegal body or organization, without any authority & regulatory status.
The Govt must appoint appropriate Authority to look into wages, pension and service conditions so that the disparities and huge deficits in wages, pension and service conditions are abridged. Better, like Railways, Defense etc., Govt should think about extending Pay Commission Recommendations to bring sense of fair play, satisfaction and longer lasting peace and stable IR in Banking. Looking to Bankers risk & responsibilities, they deserve superior deals. Why should the govt not think out of box, as PSBs are owned by Govt and dedicated to nation building and economic growth? They must be an ideal tool in govt hand, so they need better care from govt.
We sincerely request you to please look into all above aspects and take some decision to ponder over the dismaying situations that prevails and persists quite detrimental to Banking and over all image of Government.
Respectful Regards,
(J. N. Shukla)
National Convenor,
Forum of Bank Pensioner Activists,
PRAYAGRAJ
29.10.2019
Copies to:
1. Sri Narendra Modi,
Hon'ble Prime Minister,
GOI, New Delhi
2. The Secretary,
DFS, MOF,
GOI, New Delhi
For information and necessary action. Pertinent issue is, why Banking is put in such turmoil, as to breed anti-govt wave?
It's the Chief Executive creation to cause chaos in Banking fostering anyone govt wave. Bankmen are committed to nation building and support Govt policies, but being neglected deliberately to infuse tension. Some Unions are playing as his handy tool.