May 26, 2015

Small & payment banks may get RBI licences by year-end: SS Mundra

The Reserve Bank is hopeful of issuing small and payment banks licences by the end of the calender year, central bank Deputy Governor SS Mundra said today.

"We expect that it (issuing payment and small bank licences) should happen during the course of this year. Both are work in progress and hopefully both should happen in the course of this calendar year," Mundra, who is in-charge of banking supervision at RBI, told reporters here.

It can be noted that early February as many 74 companies/entities/individuals have applied for licences to set up small banks and payments banks.

The move to allow such differentiated banks came after the RBI had found just two entities - the infra player IDFC and the micro-lender Bandhan from among over two dozen applicants-eligible for setting up commercial banks.

The RBI issued this limited set of licences in April 1, 2014, after a decade. Both the applicants are yet to begin their operations even after a year as they have time till October.

During that time, Governor Rajan had said that others could apply for small and payments banks and that going forward bank licences will be issued on-tap.

Bank of China may open first India branch in Mumbai

If things go according to plan, then the first branch of Bank of China may open in Mumbai soon.

National Security Advisor (NSA) Ajit Doval has given the security clearance for opening of the bank, and has conveyed this to Maharashtra chief minister Devendra Fadnavis.

Fadnavis had recently accompanied Prime Minister Narendra Modi on a tour of China, where he aggressively pushed for Chinese investments in the state, and had a one-on-one meeting with Bank of China chairman Tian Guoli.

Chairman Guoli, though keen to open a branch in Maharashtra, had raised the issue of security clearance by intelligence wing of the country, which he feared, might cause problems. Fadnavis is learnt to have spoken to Doval who assured the chief minister that he has no objections to the proposal.

The NSA, however, told Fadnavis that Bank of China would have to adhere to the Reserve Bank of India's (RBI) and other regulatory guidelines before setting up its branch in Mumbai for which it has to seek the central bank's permission.

The Maharashtra government wants Chinese investments in developing and financing infrastructure and believes that Bank of China setting up operations in the financial capital would be a first step in that direction

Indian Banks Association wants government to lower rates on small savings scheme

MUMBAI: The Indian Banks Association (IBA) today said it has urged the Finance Ministry to bring down interest rates on small savings schemes such as the Sukanya Samridhi and National Savings Scheme.

"We met the Finance Ministry recently and requested that the rate of interest on government's small saving schemes such as the Sukanya Samriddhi or NSC are at a level from where it should be brought down," IBA chairman TM Bhasin told reporters here today.

He said even the Shyamala Gopinath committee report had recommended that interest rate on these government schemes should be at the secondary market yield of government securities plus 25 basis points.

The rates offered in the various small savings schemes are in the range of 9-9.10 per cent currently.

"Since we have to compete with those schemes in smaller areas, we have requested that there should be some re-calibration of rates so that when banks reduce their rates of interest, there should not be any suffering from diversion of funds from the banking system to other avenues," he said.

Talking on the forthcoming monetary policy review on June 2, Bhasin said he expects some easing in the repo rate and also said the bankers have sought a cut in cash reserve ratio.

"I think with inflation easing there is a possibility that there may be some recalibration of rate. As far as bankers are concerned, the preferable mode is more on passing on the CRR cut which gives us some leeway in reducing the rate of interest on advances because we have surplus liquidity available with us in the system as credit offtake is not there," Bhasin said.

He said since the liquidity condition in the banking sector is comfortable, bankers are not borrowing from the repo window.

"We have always requested RBI that there be some cut in the CRR so that the cost of funds also comes down. We expect 50 basis points cut in CRR," Bhasin said.

He said a 50 basis points cut in the CRR will release around Rs 40,000 crore in the banking system.

ICICI Launches Voice Password Facility

MUMBAI: Country's largest private lender ICICI Bank today said it has launched a service where customers can make transactions using just their voice, without using other means of authentication like a password.

The voice recognition service authenticates customers based on their speech patterns and allows them to execute banking transactions through the bank's call centre, the bank said in a statement issued here.

Customers, in general, use various means of authentication like entering card numbers, answering security questions and entering a personal identification number (PIN) to carry out a phone banking transaction.

"Their voice will now act as the password for banking transactions through the call centre," the statement said, adding that the service is secure.

Over 33 million savings bank and credit card customers will be able to use the service.

"Our decision to invest in this new technology was primarily driven by the objective of enhancing the everyday banking experience of our customers," its managing director and chief executive Chanda Kochhar said.

She added that customers using smartphones find it difficult to enter the 16 digit card number and the 4 digit PIN with accuracy and the hands-free alternative has the potential to increase security and convenience.

The technology solution works on unique 'voice prints' which comprise over 100 characteristics, including voice modulation, speed, accent and pronunciation, which are impossible to imitate, the statement said.

The voice print is stored and matched whenever the customer calls from the registered mobile number, it said.

PQP & FPP- Workmen

PQP & FPP- Workmen

GRADUATION PAY/ PROFESSIONAL QUALIFICATION PAY

For those workmen who hereafter reach or have already reached 20thstage of the scale and have got increments in consideration of educational qualification(s), Graduation Pay/ Professional Qualification Pay shall be payable as under:

Those who are graduates and/or NDC -
Rs.410/- p.m. after they complete 1 year
Rs.800/- p.m. after they complete 2 yearsThose who have passed JAIIB or Part I of CAIB/CAIIB-
Rs.410/- p.m. after they complete 1 year>Those who have passed JAIIB and CAIIB or Both Parts of CAIB/CAIIB -
Rs.410/- p.m. after they complete 1 year
Rs.800/- p.m. after they complete 2 years
Rs.1210/- p.m. after they complete 3 yearsThose who are graduates/NDC and have passed JAIIB or Part I of CAIB/CAIIB -
Rs.410/- p.m. after they complete 1 year
Rs.800/- p.m. after they complete 2 years
Rs.1210/- p.m. after they complete 3 yearsThose who are graduates/NDC and have passed JAIIB or Both Parts of CAIB/CAIIB -
Rs.410/- p.m. after they complete 1 year
Rs.800/- p.m. after they complete 2 years
Rs.1210/- p.m. after they complete 3 years
Rs.1620/- p.m. after they complete 4 years
Rs.2010/- p.m. after they complete 5 years.
Area of PostingTotal FPP payable where bank's accommodation is not provided

Total FPP payable where bank's accommodation is provided
Increment Component of FPP(1)(2)(3)(4)

CLERICAL STAFF
(i) Places with population of more than 45 lakhs158514501310
(ii)Places with population of 12 lakhs and above including State of Goa157014501310
(iii) Other places not covered in (i) and (ii) above155014501310

SUBORDINATE STAFF
(i) Places with population of more than 45 lakhs790730655
(ii)Places with population of 12 lakhs and above including State of Goa790730655
(iii) Other places not covered in (i) and (ii) above780730655

Special Pay and Allowances - Workmen Employees

Special Pay and Allowances - Workmen Employees

Dearness Allowance

Clerical and Subordinate Staff - 0.10% of 'pay'

Dearness Allowance in the above manner shall be paid for every rise or fall of 4 points over 4440 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100.

It is clarified that there shall be no ceiling on Dearness Allowance.Dearness Allowance shall be calculated and paid on Basic Pay, Special Pay, Graduation Pay, Professional Qualification Pay and Officiating Pay, if any, payable under this settlement in respect of both clerical and subordinate staff.

SPECIAL PAY - For Clerical Staff (w.e.f. 1.11.2012

Sr. No.PostSpecial Pay (Rs.)1.Single Window Operator 'B'8202.Head Cashier - II12803.Special Assistant1930

For Subordinate Staff (w.e.f. 1.11.2012)

Sr. No.PostSpecial Pay (Rs.)1.
Armed Guard3902.
Bill Collector3903.Daftary5604.Head Peon7405.Electrician20406.AC Plant Operator20407.Driver23708.Head Messenger in IOB1630

House Rent Allowance

Sr. No.AreaRate as percentage of Pay
[No Min / Max](i)Places with population of more than 45 lakhs and Project Area Centres in Group 'A'10.00%(ii)Places with population of 12 lakhs and above including State of Goa and Project Area Centres in Group 'B'9.00%(iii)Other places not covered in (i) and (ii) above7.50%

Note:

Where quarters are provided, HRA shall not be payable and the rent to be recovered shall be 0.3% of the first stage of the Scales of Pay.All other existing provisions relating to House Rent Allowance shall remain unchanged.

Special Allowance

With effect from 1.11.2012, workmen employees shall be paid Special Allowance at 7.75% of the Basic pay with applicable DA thereon.

Note : The Special Allowance with applicable DA thereon shall not be reckoned for superannuation benefits viz., pension including contribution to NPS, PF & Gratuity.

Transport Allowance

Clerical and Subordinate Staff

Upto 15th stage of the scale of Pay - Rs.425/- per month16th stage of the scale of Pay and above - Rs.470/- per month

Provided that a sub-staff drawing transport allowance at Rs.470/- per month, on being promoted to clerical cadre is fitted at a stage lower than 16th stage, he shall continue to be paid the same Transport Allowance of Rs.470/- per month.

Note: (i) All permanent part time employees including those on probation and drawing scale wages shall be paid transport allowance on pro rata basis as under:

Upto 15 years of service - Pro rata @Rs.425/- per month

Above 15 years of service -Pro rata @Rs.470/- per month

(ii)This provision by itself will not preclude the payment of any existing allowance of this nature paid as a result of Government guidelines/bank level settlements.

Medical Aid

Rs.2200 /- per annum with effect from 1st November 2012, for the year 2012, the reimbursement of medical expenses under the medical aid scheme shall be enhanced proportionately for two months i.e. November and December 2012.

Hill and Fuel Allowance

aAt places situated at a height of 3000 metres and above8% of pay (Max. Rs.1500/-p.m.)b.At places situated at a height of and over 1500 metres but below 3000 metres4% of pay (Max. Rs.600/-p.m.)c.At places situated at a height of over 1000 metres but less than 1500 metres and Mercara Town3% of pay (Max. Rs.500/-p.m.)

Washing Allowance

Rs.150/- p.m., where the washing of livery is not arranged by the bank

Cycle Allowance

Payable to the members of the subordinate staff who are required to use a cycle on regular assignment for outdoor duties at Rs.100/- p.m. at all centers. Cycle allowance would not be paid to workman member of the subordinate staff entitled to the allowance for the period of leave where such leave exceeds 30 days.

Split Duty Allowance - Rs.150/- p.m.

Leave Availment

Privilege Leave

In partial modification to Clause 13.20 of Bipartite Settlement dated 19.10.1966 (other than State Bank of India) and para 7.20 of Settlement dated 31 March 1967 (in case of State Bank of India), an employee other than a member of the Executive Committee of a registered trade union of the employees of the Bank shall not be entitled to take privilege leave on more than four occasions in a calendar year. Where however, the reasons for the request by an employee for leave on more than four occasions in a year are adequate and genuine and it is not administratively inconvenient, such leave may be granted.

Privilege Leave should be applied not less than 15 days before the proposed date of commencement of such leave.

In partial modification to Clause 8 of Bipartite Settlement dated 29.6.1990, Privilege Leave accruing to an employee on or after the date of this settlement, shall be allowed to be accumulated beyond 240 days up to a maximum of 270 days. However, encashment of privilege leave shall be restricted up to a maximum of 240 days.

Maternity Leave

Clause 30 of Bipartite Settlement dated 27 th April 2010 shall be substituted by the following:

Maternity leave, which shall be on substantive pay, shall be granted to a female employee for a period not exceeding 6 months on any one occasion and 12 months during the entire period of her service.Within the overall period of 12 months, leave may also be granted in case of miscarriage/abortion/MTP.Within the overall period of 12 months, leave may also be granted in case of hysterectomy upto a maximum of 60 days.Leave may also be granted once during service to a childless female employee for legally adopting a child who is below one year of age, for a maximum period of six months, subject to the following terms and conditions: -Leave will be granted for adoption of only one child.The adoption of a child should be through a proper legal process and the employee should produce the adoption-deed to the Bank for sanctioning such leave.The permanent part-time employees are also eligible for grant of leave for adoption of a child.The leave shall also be available to biological mother in cases where the child is born through surrogacy.The leave shall be availed within overall entitlement of 12 months during the entire period of service.

Paternity Leave

With effect from the 1st June 2015, male employees with less than two surviving children shall be eligible for 15 days Paternity Leave during his wife's confinement. This leave may be combined with any other kind of leave except Casual Leave. The leave may be availed upto 15 days before or upto 6 months from the date of delivery of the child.

Casual Leave

In supersession of Clause 13.22 of Bipartite Settlement dated 19.10.1966 (in case of State Bank of India, Clause 7.22 of the Settlement dated 31st March 1967), an employee shall be entitled to Casual Leave upto a maximum of 12 days in each calendar year, provided that not more than 4 days may be taken continuously. It is reiterated that holidays and weekly offs prefixing/suffixing or falling within the period of Casual Leave will not be treated as part of Casual Leave.

Sick Leave

In partial modification to Clause 27 of Bipartite Settlement dated 27.3.2000, Casual Leave converted into Sick Leave may also be availed without production of medical certificate for 4 days at a time once in a year or two days at a time, twice a year.

Special Sick Leave

With effect from the 1.6.2015, Special Sick Leave up to 30 days may be granted to an employee once during his/her entire period of service for donation of kidney/ organ.

Extraordinary Leave

In partial modification of Clause 13.34 of Settlement dated 19th October 1966, (in case of State Bank of India, Clause 7.34 of Agreement dated 31st March 1967) in exceptional circumstances, Extraordinary Leave may be sanctioned (without wages) not exceeding 3 months on any one occasion and upto a maximum of 24 months during the entire period of an employees' service.

Halting Allowances and Leave Travel Concession

Halting Allowance (w.e.f. 1.6.2015)

Grade / Scales of OfficersMetro Rs.Major �A� Class Cities Rs. Area I (Rs.)Other Places Rs.
Officers in Scale VI & above 1800 1300 1100950
Officers in Scale IV & V above 1500 13001100 950
Officers in Scale I/II/III 1300 1100950800
Mode of Travel and Expenses on Travel

It is reiterated that the following provision shall continue to apply wherever an officer is required to travel on duty:

(a) An officer in Junior Management Grade is entitled to travel by 1st Class or AC 2- tier Sleeper by train. He may, however, travel by air (economy class) if so permitted by the Competent Authority, having regard to the exigencies of business or public interest.

(b) An officer in Middle Management Grade is entitled to travel by 1st Class or AC 2- tier Sleeper by train. He may, however, travel by air (economy class) if the distance to be travelled is more than 1000 kms. He may, however, travel by air (economy class) even for a shorter distance if so permitted by the Competent Authority, having regard to the exigencies of business or public interest.

(c) An officer in Senior Management or Top Executive Grade is entitled to travel by AC 1st Class by train or by air (economy class).

(d) An officer in Senior Management or Top Executive Grade may travel by car between places not connected by air or rail provided that the distance does not exceed 500 km. However, when a major part of the distance between the two places can be covered by air or rail only the rest of the distance should normally be covered by car.

(e) Any other officer may be authorised by the Competent Authority, having regard to the exigencies of business, to travel by his own vehicle or by taxi or by the Bank?s vehicle.

The remaining provisions as in Sub-regulations (2) & (3) of Regulation 41 of Officers? Service Regulations shall remain unchanged.
Leave Travel Concession (w.e.f. 1.6. 2015)

(a) During each block of 4 years, an officer shall be eligible for leave travel concession for travel to his place of domicile once in each block of two years. Alternatively, he may travel in one block of two years to his place of domicile and in another block of two years to any place in India by the shortest route.

(b) Alternatively, an officer, by exercising an option anytime during a 4 year block or two year block, as the case may be, surrender and encash his LTC (other than travel to place of domicile) upon which he shall be entitled to receive an amount equivalent to the eligible fare for the class of travel of which he is entitled up to a distance of 4500 kms (one way) for officers in JMG-Scale-I and MMG � Scale II & III and 5500 kms (one way) for officers in SMG- Scale IV & above.

(c) An officer opting to encash his LTC shall prefer the claim for himself / herself and his / her family members only once during the block / term in which such encashment is availed of. The facility of encashment of privilege leave while availing of Leave Fare Concession is also available while encashing the facility of LTC.

(d) The mode and class by which an officer may avail of Leave Travel Concession shall be the same as the officer is normally entitled to travel on transfer and other terms and conditions subject to which the Leave Travel Concession may be availed of by an officer, shall be as decided by the Board from time-to-time. Provided that w.e.f. 1st May 2010 an officer in Junior Management Grade Scale I while availing LTC will be entitled to travel by air in the lowest fare economy class in which case the reimbursement will be the actual fare or the fare applicable to AC 1st Class fare by train for the distance traveled whichever is less. The same rules shall apply when an officer in Middle Management Grade Scale II and Middle Management Grade Scale III while availing LTC where the distance is less than 1000 kms.
Definition of Family:

For the purpose of medical facilities and for the purpose of leave fare concession, the expression 'family' of an employee shall mean -

a) the employee?s spouse, wholly dependent unmarried children (including step children and legally adopted children) wholly dependent physically and mentally challenged brother/ sister with 40% or more disability, widowed daughters and dependent divorced/ separated daughters, sisters including unmarried/ divorced/ abandoned or separated from husband/ widowed sisters as also parents wholly dependent on the employee.

b) The term wholly dependent family member shall mean such member of the family having a monthly income not exceeding Rs.10,000/- p.m. If the income of one of the parents exceeds Rs.10,000/- p.m. or the aggregate income of both the parents exceeds RS.10,000/- p.m., both the parents shall not be considered as wholly dependent on the officer employee.

c) A married female employee may include her natural parents or parents-in-law under the definition of family, but not both, provided that the parents/parentsin-law are wholly dependent on her.

Note: For the purpose of medical expenses reimbursement scheme, for all employees, any two of the dependent parents/ parents-in-law shall be covered.