January 6, 2016

Raise income tax exemption limit to Rs 5 lakh: Central Trade Unions

New Delhi: Trade unions today asked the government to increase the income tax exemption limit to Rs 5 lakh and the minimum wage to Rs 18,000 besides raising the minimum monthly pension to Rs 3,000 for all.

They also sought a special package for victims of the recent Tamil Nadu floods.

These demands were raised under a 15-point charter submitted by 11 central trade unions to Finance Minister Arun Jaitley during pre-Budget consultations held here. The Union Budget for the next financial year, 2016-17, is slated to be presented in Parliament in February end. It will take effect from April 1.

“We have demanded a minimum wage of Rs 18,000 per month which is higher than our earlier demand of Rs 15,000,” Bharatiya Mazdoor Sangh Zonal Organisation Secretary Pawan Kumar said after the meeting.

The Seventh Pay Commission has recommended Rs 18,000 as minimum monthly wage for central government employees and it should be the benchmark, he said.

All Indian Trade Union Congress Secretary D L Sachdev said: “We have also demanded Rs 3,000 minimum monthly pension for all and asked for a special package for flood ravaged Tamil Nadu to provide relief to workers as well as industry in the next Budget.”

Sachdev said that in view of price rise “we have also demanded from the government to increase the income tax exemption limit to Rs 5 lakh per annum”.

The union have also asked that fringe benefits like housing, medical and educational facilities and running allowances in railways should be exempted from Income Tax.

Unions also demanded that PSUs should be strengthened and expanded and the disinvestment of government shares in profit making PSUs should be stopped.

Besides, they said that the budgetary support should be provided for revival of potentially viable sick PSUs.

On the price rise, the charter said: “Take effective measures to arrest the spiralling price rise especially of food and essential items of daily use. Ban speculative forward trading in essential commodities, check on hoarding and universalise and strengthen Public Distribution System.”

Expressing concerns over steel and aluminium sectors, the unions said: “Relentless and increasing flow of import of industrial commodities including capital goods must be contained and regulated to prevent dumping and also to protect and promote domestic industries and prevent loss of employment.”

It also said that “FDI should not be allowed in crucial sectors like defence production, Railways, financial sector, retail trade and other strategic sectors. In other areas, terms and conditions for FDI should be made public.”

December 21, 2015

ATMs being installed in 1.25 lakh post-offices

ATMs being installed in 1.25 lakh post-offices: Jayant Sinha in LS

→ Hitachi keen to partner Postal Department for payments bank: Ravi Shankar Prasad

Work is on to install ATMs and micro ATMs at over 1.25 lakh post offices across the country to help people living in far-flung areas to withdraw money,government said in Lok Sabha.

Responding to some members speaking about difficulties faced by people in distant places, Minister of State for Finance Jayant Sinha said that 'bank mitra', people hired temporarily at branches with inadequate staff, will also be of a big help in this regard.

Replying to a question about vacancies in public sector banks, he said during the Question Hour that all the backlog vacancies are being filled and added that over 60,000 people were recruited against the retirement of 38,000 people.

There were 38,254, 38,170 and 21,500 vacancies of officers in public sector banks in 2013-14, 14-15 and 15-16 respectively and the corresponding recruitment numbers were 35,549, 30,359 and 24,133.

Japan-based Hitachi is keen to partner with Postal Department for payments bank solutions, Communications and IT Minister Ravi Shankar Prasad said.

The President and CEO of IT Systems, Hitachi Ltd, Yutaka Saito,  called on the minister and discussed about the possibility of Hitachi offering its banking solutions in a revenue sharing model to the Postal Department.

"I have heard them, they have already met the Postal Department people. I have asked them to make elaborate presentations. They have come with the idea of revenue sharing model to install the banking solutions in all the post offices in India. We will consider it," Prasad said after the meeting.

"I have asked the Postal Department to work out the details," he added.

Hitachi payment services offer banking solutions related to ATM, point of sale (POS), cash and deposit machines and card management solutions to all leading banks of the country.

"They are very keen to parter with Postal Department for payments bank solutions in the vast network of India's postal operations across the country and in rural areas," Prasad said.

The minister further said what is important is the technical upgradation of rural post offices to make payment bank a success.

"I have assured them that with Digital India opening up in India in a big way, there is enough scope for products, marketing, consumer base and above all innovation," he added.

The Reserve Bank granted in-principle approval to 11 applicants, including Postal Department, in August to set up payments banks.

As per RBI guidelines, payments banks would offer a limited range of products such as demand deposits and remittances. They will not be allowed to undertake lending activities and will initially be restricted to holding a maximum balance of Rs 1 lakh per individual customer.

They will be allowed to issue ATM or debit cards as also other prepaid payment instruments, but not credit cards.

#DepartmentofPost #ATM #PaymentBank #Hitachi  #DigitalIndia

December 20, 2015

Irregularity worth Rs 278 crore found in Mumbai DCC Bank: Minister

Maharashtra government today admitted in the state Legislative Assembly that irregularity to the tune of Rs 278 crore has taken place in transactions of Mumbai District Central Co-Operative Bank (MDCCB).

Replying to a query raised by Prakash Surve of Shiv Sena and others during the Question Hour regarding irregularities within MDCCB, state Minister for Co-operation, Marketing and Textiles and Public works, Chandrakant Patil informed that District Deputy Registrar Co-operative Societies (Mumbai Suburban West) in its internal report filed in December, 2013, found irregularities in large scale in the banking transactions.

The auditor found irregularities to the tune of Rs 278 crore that included giving bank premises on lease, purchase of land worth Rs 1.23 crore, disbursement of loan and its recovery that accounted for Rs 112.94 crore, computer purchase worth Rs 4.53 cr and waiving off loan of Rs 137.27 crore to Madhya Pradesh Industrial Corporation Ltd.

On receipt of final audit report from Divisional Joint Registrar Cooperative Societies, the government has initiated legal action against the Bank, the minister said.

#MaharashtraDistrictCentralCooperativeBank #MDCCB #Irregularity #Audit

Reworking branch strategy, banks put technology first to serve Digital India

Reworking branch strategy, banks put technology first to serve Digital India

→ We are left with only 12% transactions that are done in branches right now : HDFC Bank

Banks are witnessing a sharp growth in electronic transactions, prompting them to invest in technology rather than spend on new bricks-and-mortar branches.

The top three private banks said that digital channels now account for more than 60% of their total transactions. While conventional transactions grew in single digits in the past two years, the digital channels saw a near doubling of transactions. "We have seen the power of digital impacting branches," Rajeev Sabharwal, ICICI Bank's executive director told in an interview. "Branches are becoming smaller and tech savvy in terms of the number of machines in the branches than in the past. You will find today that branches have fewer employees than in the past but still more transactions being done in the branches," he said.

Nitin Chugh, head-digital banking at HDFC Bank said the bank's transactions through internet and mobile phones have grown to nearly 63% from 44% two years ago. "Now, to that if you add ATM and phone banking, then we are left with only 12% transactions that are done in branches right now, which at some point of time used to be 30%," he said.

In September, ICICI Bank saw transactions worth Rs 7,800 crore via the mobile banking channel, while the figure for HDFC Bank was over Rs 6,900 crore and for Axis Bank it was nearly Rs 5,500 crore. With internet and phone banking becoming the channels of choice for customers, banks are reworking their branch banking strategy and adding recyclers and cash deposit machines, along with setting up e-corners in almost all branches.

"We are focusing on how to automate our branches and make them more digital," said Sabharwal. "Almost all the new branches that we are opening have an e-lobby before you enter the branch. This lobby allows customers to do all transactions on their own before they step in the branch.

All our new branches have a self-service e-lobby," he said. Axis Bank recently set up express branches that are conveniently located in either a mall or office complex to provide 24x7 customer service. The express branches offer facilities for instant cash and cheque deposits, instant account opening and online purchase of insurance and advisory services.

"The percentage of transactions that happen via branches has drastically come down," said Sohini Rajola, head-electronic banking at Axis Bank. However, Rajola said this does not mean an automatic slowdown in branch additions.

"Branch expansion is really necessary, because beyond the top cities we still need branch penetration. Branches are a symbol of trust," she said. Currently, ICICI Bank has more than 4,000 branches, while HDFC Bank has over 4,200 branches and Axis Bank has over 2,700 branches.

#Banks #DigitalBanking #DigitalIndia #PrivateBanks #HDFCBank #ICICIBank #AxisBank

November 29, 2015

Bank Strike Again To Reopen Xth Bipartite Settlement


Sri Kamlesh Chaturvedi Writes on Facebook which I reproduce here for awakening Bank employees and for keeping them abreast of latest development in Trade Union Activities taking place .

After BEFI, now AIBOC, the largest organisation of Bank Officers in India has been forced to agitate on demand of We Bankers for reopening of 10th Bipartite Settlement. We reproduce circular issued by AIBOC for ready reference and perusal of bank employees. AIBOC has even given call for various programmes of Agitation including one day Strike on 11th December. Its significant that besides reopening of 10th BPS, AIBOC has admitted its mistake done in the past and has demanded extending of benefit of pension fund to those who joined Banks on or after 01.04.2010 i.e. Those who have been brought under NPS instead of existing Pension Scheme.

What surprises us the most is the manner and style with which various constituents of UFBU are now coming out independently to fight and struggle on certain demands of bank employees. We are unable to understand that top leaders of these constituents who have been displaying deep friendship with each other during the course of negotiation would not have discussed the issues with each other.

Why AIBOC has to agitate on these issues independently and singly ?

Has AIBOC consulted other constituents of UFBU prior to giving call for agitation? If not why? If yes, then what has been the reaction of others?

Why no unity this time?

Unless and until, such questions are answered to clear doubts, we are unable to appreciate these constituents. History proves that these unions and associations have their secret agenda and they launch agitation to achieve them. However, in order to secure maximum support they include few of those demands on which bank employees are already agitated.

Had the call for agitation been only for reopening of 10th BPS to remove anomalies and bringing employees joining after 01.04.2010 under the existing pension fund from NPS, we would not only have appreciated AIBOC but would have supported it too. But then there are certain demands which relate to benefits of leaders only for example appointment of Officers Directors.

Who knows if Strike Call is given to achieve only this demand. Since our present leaders are secretive, they refrain from sharing the truth, we have our doubts on their honest intentions. BEFI must join AIBOC if its serious on demand of reopening of BPS because such a move will instigate and inspire other unions to raise the demand and join the agitation.

" INDIA BANK OFFICERS' CONFEDERATION
(Registered under the Trade Unions Act 1926, Registration No.:3427/Delhi)
C/o Bank of India, Parliament Street Branch
PTI Building, 4, Parliament Street, New Delhi: 110001
Phone: 011-23730096 Tel/Fax 23719431
E-Mail: aiboc.sectt@gmail.com
Circular No. 2015/75 Dated: 27/11/2015
To All Affiliates/State Units/Members

Dear Comrades,

AIBOC GIVES A CLARION CALL FOR
“ONE DAY STRIKE ON 11th DECEMBER, 2015”

You are aware that Joint Note for Xth Bipartite Settlement was signed on
25th May 2015, but there were many issues like the issues of Retirees covered in the Record Note, issue of disciplinary matters, calling officers on Sundays / holidays, anomaly in stagnation increments etc., which remained pending on the assurance of IBA that action required on their part on these issues would soon be taken.

Despite lapse of six months and our several reminders, no steps have been taken by the IBA to resolve the issues, as per the understanding reached during the discussions. There has been no move either to start the negotiations or restart the discussions. Leave apart this, even normal courtesy of acknowledging our communications has not been shown. The settled issues of Medical aid, reimbursement of medical expenses for retired employees through insurance policy are also being denied.

Apart from this, Government, on the one hand,

*is announcing and implementing policies based on the recommendations of P.J. Nayak committee viz. diluting stakes in Public Sector Banks (PSBs),
*privatisation of banks through denial of capital required by PSBs,
*establishing Banking Bureau Board, deliberate delay in appointing Officer Directors on the Banks' Boards,
*appointment of private entrepreneurs as MDs and Chairmen in Banks, permitting FDI in the banking sectors etc.

On the other hand, no steps are being taken to recover debts from willful defaulters, providing more windows by ways of Asset Reconstruction companies and SDRs, thus providing the escape routes to the defaulters of public money.

All these issues were deliberated in the AIBOC Executive Committee meeting held at Mangalore on date. The Committee also discussed the issue of non implementation of the understanding reached between Dhanlaxmi Bank Officers' Organisation (DBOO) and Dhanlaxmi Bank management, in the presence of Hon'ble Home Minister and trade union leaders of the Kerala state.

After due deliberations, the Executive Committee of the Confederation was of the unanimous view that any delay in deciding direct action will be damaging to the very existence of the Public sector and job security of the employees.

  It was also the opinion of the Committee that in view of the recommendations of 7th Pay Commission, salary settlement of LIC employees, there is a need to relook into our Xth BPS accordingly.

The Committee unanimously decided to give an All India strike call for
11th December, 2015 and authorized the General Secretary to issue Notice for the strike and to serve it to all concerned authorities. The central leadership was also authorized to decide preparatory action programme.

We take this opportunity to apprise you that Notice of strike has been served by mail today and copies of the same have been sent to CLC (C), Department of Financial Services, Ministry of Finance, to Chairmen / MDs of all PSBs. Notice and statement of the case are also enclosed herewith the circular.

We call upon all our Affiliates/ State Committees to warm up the rank and file and take all possible steps to ensure successful implementation of the strike call. The following action programme has also been decided as preparatory exercise for the strike:

**Black Badge Wearing 2nd December, 2015
**Demonstrations at the Headquarters of all Banks 4th December, 2015
at 5.30 pm
**Common demonstration by the State Committees at all 7th December, 2015
State Capitals & Major centres
We once again call upon all our Affiliates and State Committees to implement all the action programmes and make the strike a grand success.

With revolutionary greetings,
Comradely yours,
(HARVINDER SINGH)
GENERAL SECRETARY

March on ! March On !! March On !

Strike for Demands:
1. Withdrawal of anti- psb proposals and recommendations suggested in the Gyan Sangam.
2. Initiating the immediate steps to resolve the residual issues of the 10th bipartite settlement, viz.,
a. Rectification of anomaly with regard to additional stagnation increment
b. Further discussions on disciplinary matters deliberated in the sub-committees which remain inconclusive
c. Settlement of points covered in the record note on the issues of bank retirees signed on the day of signing of joint note dated 25.05.2015
3. To send an advisory to member banks that officers should not be called on Sundays and Holidays.
4. Proper implementation of new medical insurance scheme as per essence and spirit of the joint note and restoration of domiciliary treatment to retirees opted for medical insurance scheme.
5. Stop attempting the introduction of variable pay in the name of “ performance based incentives” and ESOP for the senior executives.
6. Restoring the bilateralism and implement the bilateral understandings in Dhanalakshmi Bank.
7. Scrapping of NPS and reintroduce the bank level pension scheme for the recruits on or after 1st April 2009.
8. Immediate appointment of officer/workmen directors in public sector banks which is unduly kept pending.
9. Implementation of pension in RRBs.
10. Withdrawal of proposals to amend trade union laws.
to pay uniform pay and allowances in the banking sector.
11. Pension for SBI officers to be improved to 50% of the last
drawn pay without any ceiling."