RBI Press Release - Bank Holiday on Second & Fourth Saturdays

Bank Holiday on Second & Fourth Saturdays from September 1; RBI to offer its Support Services to Banks on Working Saturdays

All scheduled and non-scheduled banks – public, private, foreign, cooperative, regional rural and local area banks – will observe public holiday on second and fourth Saturdays from September 01, 2015; and will observe full working days on Saturdays other than second and fourth Saturdays (referred to as working Saturdays in the Press Release). Consequent to this, the Reserve Bank of India has announced the following changes in its functioning with effect from September 1, 2015:

I. Financial Market Segments

a) The financial market segments which are currently open for transactions on Saturdays will continue to remain open on all working Saturdays. That is,

    All money market segments, namely, call/notice/term money, market repo and Collateralised Borrowing and Lending Obligation(CBLO) will remain open on all working Saturdays as on any normal business day; and
    Forex market and Government securities markets, along with all OTC derivative markets would remain closed on all Saturdays, as hitherto.

b) The Reserve Bank will continue to operate fixed rate reverse repo as well as the marginal standing facility (MSF) windows on all working Saturdays between 7:00 pm and 7.30 pm as on any normal business day.

c) The Reserve Bank will also operate a fixed rate liquidity adjustment facility (LAF) repo window on all working Saturdays between 9.30 am and 10.30 am. The LAF repo window on working Saturdays would in fact be an extension of the Friday LAF window. That is, banks could borrow for three days on Friday, within the prescribed limits, and any residual unused limit could be utilised for a 2-day period on working Saturdays.

II. Payment Systems

    Payment systems will not be operated onsecond and fourth Saturdays but would operate for full day on working Saturdays. Payment systems typically includes Real Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT), Cheque Clearing operated by various Bankers' Clearing Houses in the country including the grid based Cheque Truncation System (CTS) and ECS suite [Electronic Clearing Service (ECS), Regional Electronic Clearing Service (RECS) and National Electronic Clearing Service (NECS)].

    Processing of future value dated transactions with value date falling on second and fourth Saturdays will not be undertaken under RTGS and ECS suite.

III. Banking Department

The Banking Departments in Regional Offices of the Reserve Bank will remain open for the full day on working Saturdays as required to support the functioning of the Financial Markets and the Payment Systems. Government business will be transacted at agency banks on working Saturdays.

It may be recalled that the Government of India issued a Notification on August 20, 2015 [published in the Gazette of India, Extra Ordinary, Part II, Section 3, Sub-Section (ii)] declaring every second and the fourth Saturday of every month as public holiday under Section 25 of the Negotiable Instruments Act, 1881 (26 of 1881). Accordingly, all banks whether or not included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934) will observe holidays on second and fourth Saturdays with effect from September 1, 2015. As a regulator of banks, financial markets and payment and settlement systems, the Reserve Bank has made supporting changes in the working of some of its operational areas.

The above arrangements would be reviewed after six months.

Alpana Killawala
Principal Chief General Manager

Press Release : 2015-2016/528

SATURDAY HOLIDAY - KVB

SATURDAY HOLIDAY - TMB

SATURDAY HOLIDAYS - OBC CIRCULAR

SATURDAY HOLIDAYS - CORPORATION BANK NOTIFICATION

NEW SERVICE CONDITIONS ACHIEVED - DREAM COMES TRUE

Circular No.13/VI/2015                                                                                                 August 21, 2015

Dear comrades,

NEW  SERVICE  CONDITIONS  ACHIEVED - DREAM  COMES  TRUE

AIBOA, looking into various developments in our Industry, felt the need of demanding “Regulated working hours” for officers as one of the important demand in our Silver Jubilee Conference held at Delhi in the first quarter of 2006.

2.         It was brought to the knowledge of other Officers’ Organisations during the course of finalising the Charter of Demands in the VI Joint Note exercise at Hyderabad and submitted to the then Chairman of IBA Mr.M.B.N.Rao, CMD of Canara Bank.  IBA was reluctant to address the problems, at that point of time.

3.         Our organisation had participated in the All India Stay out Strike in February 2013 and in reply to the strike notice filed before CLC[C], IBA had responded vide their letter dated 13.02.2013 to the demand that the Banks are functioning only for 4 hours on Saturdays instead of normal working hours.

4.         Looking to the varieties of changes in the work processes, 66% of Banking services are handled through alternative delivery channels, controller of the Banking system having 5 days working, owner of the Banking system having regulated working hours of 8 hours and 5 days a week, markets operations are in force for 5 days made the Bankmen to take up the demand more vigorously during the current wage revision exercise.  23.02.2015 was the day, the news was broken that the authorities at Government level conceded partially to the demand of 5 days a week.  In exchange of 2 days holidays ie; on 2nd and 4thSaturdays, the other Saturdays in the month will be full working days ie; 6-1/2 hours of work.  In the negotiation table, it was informed by IBA team, that the value of the two days holidays is equivalent to 1.81% of payslip components.

5.         The Government of India has released the notification yesterday, ie; the effect of the new service condition will be from 01.09.2015.  We are to pursue the demand of converting the partially achieved 2 days Saturday holidays to a full fledged one.

The vision of Late Com.RJS has been pursued with sincerity and successfully achieved.

Yours comradely,

/S.NAGARAJAN/
GENERAL SECRETARY

AIBOC CIRCULAR SATURDAYS HOLIDAY

IBA Notification Letter for Saturday Holiday

AIBEA CIRCULAR - MUCH AWAITED SATURDAY HOLIDAY

FinMin notifies second and fourth Saturday as public holiday for banks

Updated: August 20, 2015 21:48 IST | Our Bureau

The Finance Ministry, in exercise of powers conferred under the Negotiable Instruments Act, 1881,  on Thursday issued a notification declaring the second and fourth Saturday of every month as public holiday for banks in India, with effect from September 1.

What this means is that the first Saturday holiday for banks will be on September 12, which is a second Saturday.

Second and fourth Saturday holiday for banks is as per the 10th bipartite wage settlement between the Indian Banks' Association and banking sector trade unions.

Notification Issued on 2 Saturday Holidays

RBI issues payments bank licences to 11 firms

RBI issues payments bank licences to 11 firms

The companies that got payments bank licences include RIL, Aditya Birla Nuvo, Airtel M Commerce Services, Vodafone m-pesa and Tech Mahindra

Joel RebelloAnup Roy
The RBI had received 41 applications for payment bank licences. Photo: Pradeep Gaur/Mint
The RBI had received 41 applications for payment bank licences. Photo: Pradeep Gaur/Mint

Mumbai: The Reserve Bank of India on Wednesday gave an in-principle nod to eleven entities to launch a payments bank—the first set of differentiated bank licences to be issued by the regulator.

The eleven companies include conglomerates and large telecom firms like Reliance Industries Ltd, Aditya Birla Nuvo Ltd, Airtel M Commerce Services Ltd, Vodafone m-pesa Ltd and Tech Mahindra Ltd.

The Department of Posts, Cholamandalam Distribution Services Ltd, FINO PayTech Ltd, National Securities Depository Ltd, Dilip Shanghvi (promoter of Sun Pharma) and Vijay Shekhar Sharma (promoter of Paytm) have also been granted licences.

The RBI had received 41 applications for payment bank licences, out of which 11 have been accepted

“In arriving at the final list, the Committee of the Central Board (CCB) noted that it would be difficult at this stage to forecast the most successful likely model in the emerging business of payments. The CCB further noted that payments banks cannot undertake lending, and therefore believed that the payments bank would not be subject to the same risks as a full service bank,” said the RBI as part of its statement.

“It has selected entities with experience in different sectors and with different capabilities so that different models could be tried,” said the RBI

Payments banks will provide basic savings, deposit, payment, and remittance services to people who currently do not have a bank account, including millions of migrant workers. Almost half of India’s population is unbanked. Such banks will not lend money.

“We believe the unbanked segment holds a big potential and we will continue to work for this segment,” said Rishi Gupta, managing director and chief executive officer of FINO PayTech Ltd, on news of getting the licence.

G.V. Nageswara Rao, managing director and chief executive officer of NSDL, said that there is lot of room to modernize payment systems and upcoming payment banks can play a role here.

Unforgorable Strike by BPBEA On 17.08.1948

Govt. Decision on Banking Sector

Pensioners' Issues - AIBOA writes to UFBU Convener on RECORD NOTE DT 25 5 2015

August 11, 2015

Com.M.V.Murali
Convenor-UFBU
HYDERABAD

Comrade,

REG:  RECORD NOTE DATED 25.05.2015

We are confident that the communication dated 04.08.2015 addressed by the General Secretary, All India Bank Retirees Federation must have been received by you pertaining to 100% DA for the retirees  prior to 01.11.2002.

2.         It was clearly communicated by our organisation vide our letter dated 06.02.2015, in response to AIBRF letter addressed to you that all 5 unions should be invited to intimate the various twists and turns in resolving the issues by IBA.

3.         To arrive at the cost involved in all the three issues viz.,

            [i]         100% DA prior to 01.11.2002
            [ii]        Family Pension – 30% as that of RBI
            [iii]       Updation of pension based on the time tested formula.

We should insist for the details from IBA on priority basis.

4.         We are confident that the emphasis to resolve the retirees matter should be taken under any other matter with permission of Chair in the proposed meeting on 16.08.2015.

Please acknowledge receipt.

Yours Comradely,

(S NAGARAJAN)
GENERAL SECRETARY

cc to : 

All constituents of UFBU
President/General Secretary -All India Bank Retirees Federation

AIBOC-ISSUE OF SECOND AND FOURTH SATURDAYS OFF

Message from AIBOC:

Dear Comrades,

ISSUE OF SECOND AND FOURTH SATURDAYS OFF

A lot of queries are being received by us on implementation of second and fourth Saturdays off in
Banking Industry. We understand the anxiety as the issue which is very important, the most cherished and agreed demand of AIBOC, is being delayed in its implementation.

A few individuals from other organisations who were never serious about the demand or were even
creating hurdles in its achievement, are now shedding crocodiles tears. These paper tigers are
provoking common members by giving false information.

Let us advise you that in-principle approval of Govt. and RBI is already in place on the settlement
signed with IBA and more specifically on second and fourth Saturdays off. We are in continuous touch with DFS & IBA officials and have been following the issue. The delay is on account of some
clarifications being sought by authorities which are replied by officials down the line and IBA. 

As a responsible Organisation we are vigorously following up and pursuing the issue. However, we cannot make any irresponsible statement of starting any agitation etc. at the present stage. One upmanship is not our objective. We are committed to our members and are endeavouring that fruits of our undeterred efforts for achieving this objective is reaped by them positively.

We are sure that IBA, Govt. & RBI can not deviate from implementation of 2nd & 4th Saturday off. We intend to wait for another week or so and shall review the position before taking any stand on the issue including start of agitation with due information to other constituents of UFBU.

AIBEA - Nationwide Strike on Sep 2, 2015

Master mediclaim policy for bank employees to be issued through IBA by month-end

Master mediclaim policy for bank employees to be issued through IBA by month-end

All state-run general insurers are likely to issue a master mediclaim policy for bank employees through Indian Banks Association (IBA) by this month end. As per the new wage agreement reached between bank unions and the IBA on May 25, employees of all the 43 member banks are to be provided with a health insurance cover by their respective banks.
"Our discussions are on with the IBA on the health insurance cover for bank employees as part of the wage pact," New India Assurance chairman and managing director and chairman of General Insurers (Public Sector) Association ( GIPSA) chairman G Srinivasan told PTI. However, he refused more details saying "things are still on the drawing board."  "This is for the first time a proper health insurance policy is being worked out by banks for their employees,"