During each block of 4 years, an Officer shall be eligible for leave fare concession for travel to his/her place of domicile once in each block of two years. Alternatively, he/she may travel in one block of two years to his/her place of domicile and in another block of two years to any place in India by the shortest route.The employee has to opt for either 2 year block or 4 year block when they initally apply for LFC which cannot be changed from time to time. However, in the 11th BPS dated 11.11.2020, bank employees are given one more option to choose between between 2 years block and four years block. Further, in partial modification of clause 19 of the Bipartite settlement dated 25th May, 2015, the class of fare to which the workman and the members of his family* would be entitled, shall be as follows:

Subordinate Staff: 5200 KMs for 4 years and 2600 KMs for 2 years

AC III Tier for the journey by mail/express train.

By Steamer – II Class Cabin

Non-subordinate Staff (clerical staff): 4400 KM for  4 years and 2200 KMs for 2 years

AC II Tier for the journey by mail/express train.

By Steamer – I Class Cabin

(Note: The above entitlement shall also be applicable for travel on duty).

Permanent part-time employees drawing scale wages are eligible for LFC and leave encashment on pro-rata basis.

One more benefit is that the employees are eligible for Train travel by Shatabadi/Rajdhani (without executive class) under LFC. For actual travel under LFC Train fare under dynamic fare system as on the date of booking ticket will be reimursed.GST charges on train payable over and above eligible amount. An employee can also travel by own car to claim reimbursement under LFC. For this purpose Road Mileage is fixed at Rs.8 KM.  Toll charges will be reimbursed. Charges for local sight seeing is also permitted within the entitlement. Such local sight seeing charges will be reimbursed on production of receipt.

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.Officers of scale I & III eligible to cover 4500 KM and Scale 4 and above are eligible to cover 5500 KM, provided that 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 fare applicable to AC 1st class fare by train for the distance travelled whichever is less. The same rule shall apply when an officer in Middle Management Grade Scale II and Middle Management Grade Scale III while availing LFC/ LTC where the distance is less than 1000 kms.

*Definition of family:

In partial modification of Clause 18 of the Bipartite Settlement dated 25th May, 2015, for the purpose of medical facilities and for the purpose of leave fare concession, the expression ‘family’ of an employee shall mean –

  • (i) the employee’s spouse, wholly dependent unmarried children (including step children and legally adopted children) wholly dependent physically and mentally challenged brothers/ sisters 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.
  • Provided that in the case of physically and mentally challenged children, they shall be construed as dependents even after their marriage including spouse and children subject to fulfilling the income criteria..The term wholly dependent parent shall mean such member of the family having no income or a monthly income not exceeding Rs.12000/- (this limit is enhanced to Rs.12000/-in this settlement from earlier limit Of Rs.10000/-p.m). If the income of one of the parents exceeds Rs.12000/- p.m. or the aggregate income of both the parents exceeds Rs.12000 p.m then both the parents shall not be considered as wholly dependent on the employee.

Encashment of LFC

Bank officers may surrender and encash their LFC  (other than travel to place of domicile) upon which he/she shall be entitled to receive an amount equivalent to 75% of the eligible fare for the class of travel by train to which he is entitled. 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/her LFC ( other than travel to place of domicile ) upon which he/she shall be entitled to receive amount equivalent to the actual train fare for AC sleeper Class for a distance of 4500 kms ( one way) for officers in JMGS Scale – I and MMG scale- II & III and 5500 kms for officers in SMG Scale IV & above subject to deduction of admissible Income tax at source. In case an employee is not availing Leave Fare Concession, the facility of encashment of leave on account of availing LFC would not be available. W.e.f. 01.06.2015 employees were also allowed the facility of encashment of leave fare concession without the requirement of availing leave for the purpose. Encashment of LFC, once sanctioned, cannot be modified.   In respect of LFC blocks which got extended by the competent authority, LFC encashment is not permitted.

Encashnent of PL while availing LFC:

An officer is permitted to surrender and encash the privilege leave not exceeding 30 days (one month) at a time. Alternatively, he may while travelling in one block of two years to his hometown and in other block, to any place of India, is permitted to encash of privilege leave with a maximum of 15 days in each block or 30 days in one block. For the purpose of leave encashment all the emoluments payable for the month during which the availment of the LFC commences shall be admissible. The encashment of leave shall normally be made not before 15 days from the date of proceeding on leave. In case of non-availment of LFC, the amount of encashment of Privilege Leave so availed should be recovered in one lumpsum.

These things you need to know  while availing LFC

  1. If both husband and wife are working in the same bank  can individually claim LFC:

If both husband and wife are working in the same bank, they will be individually eligible to claim LFC under the latest setlement.  Earlier where husband and wife are both employees of same Bank, only one of them will be eligible to claim LFC reimbursement for both end and the other spouse should surrender his / her corresponding LFC block. This restriction is now eliminated and both are individually entitled to claim LFC. A married employee may include her natural parents or parents-in-law under the definition of family, but not both, provided that the parents or parents-in-law are wholly dependent on her.

  • A companion may accompany Physically handicapped employee:

In case of a physically handicapped employee who is appointed under such category and is eligible for payment of conveyance allowance in terms of the Government guidelines, a companion may accompany the employee provided he/she does not have any member of the family in respect of whom he/she can claim the LFC.

  • Travel outside India:

Leave Fare Concession for travel for rest and recuperation shall be granted from the place of work to any place in India situated at not more than the distances permitted hereunder.Travel from the place of work to the place of his domicile, if situated within India (provided, however, that in the case of those subordinate workmen or the watch and ward staff, whose domicile is situated in Nepal, Bhutan etc. the leave fare concession payable will be the actual return railway fare or steamer fare from his place of work to the place on the Indian borders nearest to his place of domicile).

  • Declaration of place of destination:

An Officer/Award staff availing LFC to his native place/Home town should go to the same place as he/she has declared in his/her service records. If there is any change in native place/Home town, then he/she may represent the same to HO: HRM Department/Circle Office giving valid reasons for such a change. This request must be made before availing LFC and not at the time of/after the submission of the LFC bills.  The places of domicile/home town cannot be changed more than once during the entire service of an officer/award staff.

  • Family may directly travel from the place where they ordinarily reside to the place of destination and back:

An officer can also claim LFC for eligible members of his family. If they ordinarily do not reside with him/her at the place of work, either for both the way journey from the place where they ordinarily reside to the place of his/her work and to the place of destination or directly from the place where they ordinarily reside to the place of destination and back. LFC may be availed by an officer’s family for travel prior to or after the employee himself/herself avails LFC, provided the period between the date of completion of the journey by the family and the date on which the employee commences his/her onward journey or vice versa does not exceed 4 months. If officer is travelling by Car, then officers as well as their dependent family members should necessarily undertake the proposed journey in their own cars. No two separate journies will be permitted for self and dependent family members.

  • Family can opt to travel to different places:

An officer and his/her family can opt to travel to different places of their choice, thus there could be different destinations for the family members and the Officer, when LFC is availed under the head Other places. While doing so, the officer should get prior permission for travel of his family and self by declaring the respective destinations. However, family is not eligible to travel separately for travellig by taxi /own car. In other words, the staff should accompany his/her family in the proposed journey by taxi.

  • Route of Journey:

An officer availing LFC can take any route and travel in any class to reach the pre-announced destination. But reimbursement will be limited to the fare he is entitled to by the eligible class by the shortest route to the destination declared by him or actual amount of fare incurred, whichever is lower, subject to production of tickets/details of tickets/vouchers. Where the officer incurs Air fare for children below five years, he/she will not normally be entitled to claim reimbursement for the same. However, this will be allowed, if the actual expenditure including the Air Fare for the child is within the cost of train fares for eligible persons for the maximum permissible distance and within the overall entitlement per unit.

  • LFC by Taxi:

LFC by taxi should specifically mention in their application itself that they intend to travel by taxi and they would comply with the instructions stipulated therefor. LFC by Taxi should be allowed only to a specified destination which may cover various Centres in the enroute for which employees should specify the destination while applying for LFC by taxi and the name and relationship of persons to be accompanied in the proposed journey by taxi. No separate journey shall be allowed for the employee and his/her family for the LFC by taxi. At present Driver’s Bata is fixed at Rs.150/- per day for reimbursement and toll charges paid is also reimbursed.

  • Travel by air

An employee may undertake the whole or part of the journey by air either to his place of domicile or to a place for rest and recuperation and he will be eligible to claim his actual expenditure, provided it is less than  Leave Fare Concession or equivalent to actual travelling fares by his entitlement in case of journey to his place of domicile by a direct or regular route or to the extent of the maximum distances indicated above, in case of journey to any place for rest and recuperation by any route.

  1. LFC can be availed along with joining time:

LFC can be availed during the joining time on transfer also provided the employee combines the same with Casual Leave for one or two days.