The Payment of Gratuity Act in

The Bank of Baroda.

(Labour Legislation, Industrial Welfare & Social Security

Legislation- Prof. Sarita Kulkarni)

By Andrea Mendes
Roll No: 34
 THE PAYMENT OF GRATUITY ACT, 1972

The Gratuity payable to employees as a gratitutious payment by employer in return for the
sincere and meritorious service. After the enactment of law, it became a legitimate claim of workmen.
Even the non-payment of which result in industrial dispute .

Grauity is a retirement benefit to employees for their kind and continuous service . It is to help the
employees on their retirement which may be due to superannuation, physical disability . the
contributory Provident Fund is found to be insufficient for the old age and gratuity considered as an
additional retirement benefit to employees.

Retirement compensation is a solatium for premature termination of employment. the different courts
hled that gratuity scheme and retrenchment compensation are entirely different . There is not central
act to regulate the payment of gratuity to industrial workmen except the Working Journalists
( conditions of service ) and miscellaneous Provisions Act 1955.

The Government of Kerala enacted legislation in 1970 for the payment of gratuity to workers
employed
in factories , plantation , shops and Establishments. The West Bengal Government promulgated an
ordinance on the 3rd June 1971, prescribing similar gratuity . Gratuity is also being paid by some
employer to their workers under Awards and Agreements.

Since the enactment of Kerala and West Bengal Acts , some other Government have also voiced
their intention of enacting similar measures in their respecting states. The proposal for central
legislation on gratuity was discussed in labour Ministers conference and Indian Labour Conference
held at New Delhi and agrees to enact a legislation . The Bill was drafted and was finally enacted in
1972.
In Hindustan Antibiotics Ltd. ( 1976 1 LLJ 114 ) , the Supreme Court observed that provident fund
itself may not be sufficient to meet the requirements of his old age or to provide for his dependents
during his life tike or after his death .

An Act to provide for a Scheme for the payment of gratuity to employees engaged in factories,
mines, oilfields, plantations, ports, railway companies, shops or other establishments employing 10
or more persons and for matters connected therewith or incidental thereto.

Applicability

The Act shall apply to--

(a) every factory, mine, oilfield, plantation, port and railway company;

(b) every shop or establishment within the meaning of any law for the time being in force
in relation to shops and establishments in a State, in which ten or more
persons are employed, or were employed, on any day of the preceding twelve months;

(c) such other establishments or class of establishments, in which ten or more employees
are employed, or were employed, on any day of the preceding twelve months.

The Act shall continue to be applicable to a shop or establishment in which the number
of persons employed therein at any time after it has become so applicable falls below ten.
 It also applicable to
(1 ) of a factory belonging to, or under the control of, the Central Government,
(2 ) of a major port, mine, oilfield or railway company, the Central Government,
(3 ) in any other case, the State Government;

The Act shall not be applicable to an educational institution. The word ‘ establishment canotes an
organised body of men and women employed where the relationship of employer and employee
comes into existence . The co-operative societies also establishments and shall be covered under the
Act. Circus industry employing 10 or more workers and cinema theatre employing 5 or more workers
are or were employed in any day of the preceding 12 months.
By 2007 amendment the educational institution also covered under this act.

"Employee" means any person (other than an apprentice) employed on wages in any
establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled,
semi- skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of
such employment are express or implied, and whether or not such person is employed in a
managerial or administrative capacity, but does not include any such person who holds a post
under the Central Government or a State Government and is governed by any other Act or by
any rules providing for payment of gratuity.

"Employer" means, in relation to any establishment, factory, mine, oilfield, plantation, port,
railway company or shop--

(i) belonging to, or under the control of, the Central Government or a State Government, a
person or authority appointed by the appropriate Government for the supervision and control of
employees, or where no person or authority has been so appointed, the head of the Ministry or the
Department concerned,

(ii) belonging to, or under the control of, any local authority, the person appointed by such
authority for the supervision and control of employees or where no person has been so
appointed, the chief executive officer of the local authority,

(iii) in any other case, the person, who, or the authority which, has the ultimate control over
the affairs of the establishment, factory, mine, oilfield, plantation, port, railway company or
shop, and where the said affairs are entrusted to any other person, whether called a manager,
managing director or by any other name, such person;

family", in relation to an employee, shall be deemed to consist of-

(i) in the case of a male employee, himself, his wife, his children, whether married or unmarried,
his dependent parents 7[and the dependent parents of his wife and the widow] and children of his
predeceased son, if any,
(ii) in the case of a female employee, herself, her husband, her children, whether married or
unmarried, her dependent parents and the dependent parents of her husband and the widow and
children of her predeceased son, if any:
8
[***]
Explanation: Where the personal law of an employee permits the adoption by him of a child, any
child lawfully adopted by him shall be deemed to be included in his family, and where a child of an
employee has been adopted by another person and such adoption is, under the personal law of the
person making such adoption, lawful, such child shall be deemed to be excluded from the family of
the employee;

"Wages" means all emoluments which are earned by an employee while on duty or on leave in
accordance with the terms and conditions of his employment and which are paid or are payable to
him in cash and includes dearness allowance but does not include any bonus, commission, house
rent allowance, overtime wages and any other allowance.

Continuous service.- For the purposes of this Act,--

1, an employee shall be said to be in continuous service for a period if he has, for that
period, been in uninterrupted service, including service which may be interrupted on account of
sickness, accident, leave, absence from duty without leave ( no punishment has been passed ) lay-
off, strike or a lock-out or cessation of work not due to any fault of the employee.
(2) where an employee is in continuous service for any period of one year or six
months, he shall be deemed to be in continuous service under the employer--

(a) for the said period of one year, if the employee during the period of twelve calendar months
preceding the date with reference to which calculation is to be made, has actually worked under the
employer for not less than--
(i) 190 days, in the case of an employee employed below the ground in a mine or in an
establishment which works for less than six days in a week; and

(ii) 240 days, in any other case;

(b) for the said period of six months, if the employee during the period of six calendar
months preceding the date with reference to which the calculation is to be made, has
actually worked under the employer for not less than--

(i) 95 days in the case of an employee employed below the ground in a mine or in an
establishment which works for less than six days in a week; and

(ii) 120 days, in any other case;

(3) where an employee, employed in a seasonal establishment, for any period of one year or
six months, he shall be deemed to be in continuous service under the employer for such
period if he has actually worked for not less than 75 per cent. of the number of days on
which the establishment was in operation during such period.]

Controlling authority.- The appropriate Government may appoint any officer to be a controlling
authority, who shall be responsible for the administration of this Act

Gratuity shall be payable to an employee on the termination of his employment after he has
rendered continuous service for not less than five years,--
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:

The completion of continuous service of five years shall not be necessary where the termination of
the employment of any employee is due to death or disablement:

In case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no
nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share
of such minor, shall be deposited with the controlling authority who shall invest the same for the
benefit of such minor in such bank or other financial institution, as may be prescribed, until such
minor attains majority
Calculation of Gratuity

The employer shall pay gratuity to an employee at the rate of fifteen days’ wages based on the rate of
Wages last drawn by the employee concerned for every completed year of service or part thereof in
excess of six months

In the case of a piece-rated employee, daily wages shall be computed on the average of the total
wages received by him for a period of three months immediately preceding the termination of
his employment,
In the case of "an employee who is employed in a seasonal establishment and who is not
so employed throughout the year", the employer shall pay the gratuity at the rate of seven days'
wages for each season.

In the case of a monthly rated employee, the fifteen days' wages shall be calculated by dividing
the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.

Formula for calculation of Gratuity

Monthly Salary

Gratuity = ---------- X 15 DaysX Totalno. of Years of Completed Service

26
Monthly Salary means Basic Salary

Gratuity as per the Gratuity Act is 15 days or ½ months' Basic for each year of employment, and for
calculation purpose; a month is considered to be of 26 days only excluding 4 Sundays.

For example if someone's Basic is 3000 p.m. then his Gratuity contribution for that year will be 3000
/ 26 x 15 = Rs.1730.77 i.e. Rs.1731/- Per Year.

The amount of gratuity payable to an employee shall not exceed 3.5 lakh rupees The ceiling
of 20 months wages for payment of gratuity is being replaced by a money ceiling by making an
amendment in the Act in the year 1987. Whatever paid about 3.5 Lacs is taxable.

For the purpose of computing the gratuity payable to an employee who is employed, after his
disablement, on reduced wages, his wages for the period preceding his disablement shall be taken
to be the wages received by him during that period, and his wages for the period subsequent to
his disablement shall be taken to be the wages as so reduced.

Nothing in this section shall affect the right of an employee receive better terms of gratuity under
any award or agreement or contract with the employer.

In case an employee leaves before completing 5 years in the company then the employee does not
receives any Gratuity money. In most of the IT companies Gratuity is the part of the CTC. Like they
will pay 4.81% of basic as a compensation for gratuity.
Forfeiture of Gratuity

The gratuity payable to an employee, whose services have been terminated for any act, wilful
omission or negligence causing any damage or loss to, or destruction of, property belonging to
the employer, shall be forfeited to the extent of the damage or loss so caused; and
The gratuity payable to an employee may be wholly or partially forfeited --

(i) if the services of such employee have been terminated for his riotous or disorderly
conduct or any other act violence on his part, or
ii, an offence involving moral turpitude, provided that such offence is committed by him in the
course of his employment.
moral turpitude means any thing done contrary to justice , honesty , principle or good morals ,an act
of baseness , vileness or depravity in the private social duties which a man owes to his fellowmen or
to society in general , contrary to accepted and customary rule of right and duty between man and
man.

an employer has to take an independent decision after the termination of service of an employee as
to whether the gratuity payable should at all be forfeited in cases which fall under sub-section i or ii
and if so , to what extend . The decision has to be taken after giving notice and after due
consideration of reply furnished .

Compulsory insurance.-
The Indian Labour Conference held in Nov, 1985 had recommended that a provision for compulsory
Insurance of employer’s liability and setting up of gratuity fund for the payment of gratuity be
incorporated in the 1987 amendment Act.

Every employer, other than an employer or an establishment belonging to, or under the control of,
the Central Government or a State Government, shall obtain an insurance in the manner
prescribed, for his liability for payment towards the gratuity under this Act, from the Life
Insurance Corporation of India

The Government may, exempt every employer who had already established an approved gratuity
fund in respect of his employees and who desires to continue such arrangement, and every
employer employing five hundred or more persons who establishes an approved gratuity fund

Every employer shall get his establishment registered with the controlling authority and no
employer shall be registered . under the provisions of this Act unless he has established an
approved gratuity fund

Where an employee fails to make any payment by way of premium to the insurance or gratuity fund
shall be liable for punishment with fine which may extend to 10,000 rupees .

Nomination.-
Each employee, who has completed one year of service, shall make nomination for the purpose of
the Act. An employee may, in his nomination, distribute the amount of gratuity payable to him under
this Act amongst more than one nominee.

If an employee has a family at the time of making a nomination, the nomination shall be made
in favour of one or more members of his family, and any nomination made by such employee in
favour of a person who is not a member of his family shall be void.
If at the time of making a nomination the employee has no family, the nomination may be made in
favour of any person or persons but if the employee subsequently acquires a family, such
nomination shall forthwith become invalid and the employee shall make, within such time as may
be prescribed, a fresh nomination in favour of one or more members of his family.

A nomination may be modified by an employee at any time, after giving to his employer a written
notice . If a nominee predeceases the employee, the interest of the nominee shall revert to the
employee who shall make a fresh nomination .Every nomination, fresh nomination or
alteration of nomination, as the case may be, shall be sent by the employee to his employer, who
shall keep the same in his safe custody.

Determination of the amount of gratuity.-

A person who is eligible for payment of gratuity under this Act or any person authorised, in
writing, to act on his behalf shall send a written application to the employer for payment of such
gratuity. As soon as gratuity becomes payable, the employer shall determine the amount of
gratuity and give notice in writing to the person to whom the gratuity is payable and also to the
controlling
authority specifying the amount of gratuity so determined. The employer shall arrange to pay the
amount of gratuity within thirty days from the date it becomes payable to the person to whom the
gratuity is payable.

If the amount of gratuity payable is not paid by the employer within the period , the employer
shall pay, from the date on which the gratuity becomes payable to the date on which it is paid,
simple interest at such rate, not exceeding the rate notified by the Central Government from time
to time for repayment of long-term deposits .

No such interest shall be payable if the delay in the payment is due to the fault of the employee
and the employer has obtained permission in writing from the controlling authority for the delayed
payment on this ground.

If there is any dispute as to the amount of gratuity payable to an employee under this Act or as
to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to
the person entitled to receive the gratuity, the employer shall deposit with the controlling authority
such amount as he admits to be payable by him as gratuity.

Where there is a dispute with regard to any matter or mattes specified in clause (a), the employer
or employee or any other person raising the dispute may make an application to the controlling
authority for deciding the dispute.

The controlling authority shall, after due inquiry and after giving the parties to the dispute a
reasonable opportunity of being heard, determine the matter or matters in dispute and if, as a result
of such inquiry any amount is found to be payable to the employee, the controlling authority
shall direct the employer to pay such amount or, as the case may be, such amount as reduced by
the amount already deposited by the employer.

The controlling authority shall pay the amount deposited, including the excess amount, if any,
deposited by the employer, to the person entitled thereto.

For the purpose of conducting an inquiry under sub-section , the controlling authority shall have
the same powers as are vested in a court, in respect of the following matters, namely:--

(a) enforcing the attendance of any person or examining him on oath;

 (b) requiring the discovery and production of documents;

(c) receiving evidence on affidavits;

(d) issuing commissions for the examination of witnesses.

Any person aggrieved by an order under this Act may, within sixty days from the date of the receipt
of the order, prefer an appeal to the appropriate Government

Powers of Inspectors.-

Joint Chief Inspector of Factories

Deputy Chief Inspector of Factories
Inspector of Factories are authorities for all factories
Asst. Inspector of Factories are authorities for all factories .
Inspector Labour , Deputy Inspector of Labour are authorities for all establishment other than factory
and plantation
The appropriate Government may appoint as many Inspectors for the purposes of this Act An
Inspector may exercise all or any of the following powers, namely:--
(a) require an employer to furnish such information as he may consider necessary;
(b) enter and inspect, at all reasonable hours, any premises of or place in any factory, mine,
oilfield, plantation, port, railway company, shop or other establishment to which this Act, applies, for
the purpose of examining any register, record or notice or other document required to be kept or
exhibited under this Act or the rules made there under, or otherwise kept or exhibited in relation
to the employment o f any person or the payment of gratuity to the employees, and require the
production thereof for inspection;

(c) examine any employee employed therein;

(d) make copies of, or take extracts from, any register, record, notice or other document, and
search and seize , such register, record, notice or other document as he may consider relevant in
respect of that offence;

Recovery of gratuity.- If the amount of gratuity payable under this Act is not paid by the employer,
within the prescribed time, to the person entitled thereto, the controlling authority shall, on an
application made to it in this behalf by the aggrieved person, issue a certificate for that amount to
the Collector, who shall recover the same, together with compound interest thereon at such rate as
the Central Government may, by notification, specify from the date of expiry of the prescribed
time, as arrears of land revenue and pay the same to the person entitled thereto:

The controlling authority shall, before issuing a certificate under this section, give the employer a
reasonable opportunity of showing cause against the issue of such certificate.The amount of interest
payable under this section shall, in no case exceed the amount of gratuity payable under this Act

Penal Provisions

Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 2 years (minimum 6
months) and/or fine up to RS 20,000/-. Other contravention/offenses attract imprisonment up to 1 year
and/or fine up to RS 10,000/-.

Whoever knowingly makes or causes to be made any false statement or false representation shall
be punishable with imprisonment for a term which may extend to six months, or with fine
which may extend to ten thousand rupees or with both.
An employer who contravenes, or makes default in complying with, shall be punishable with
imprisonment for a term which shall not be less than three months but which may extend to one
year, or with fine which shall not be less than ten thousand rupees but which may extend to
twenty thousand rupees, or with both .

Where the offence relates to non-payment of any gratuity payable under this Act, the employer
shall be punishable with imprisonment for a term which shall not be less than six months but which
may extend to two years unless the court trying the offence, for reasons to be recorded by it in
writing, is of opinion that a lesser term of imprisonment or the imposition of a fine would meet the
ends of justice.

Exemption of employer from liability in certain cases.-

Where an employer is charged with an offence punishable under this Act, he shall be entitled,
upon complaint duly made by him and on giving to the complainant not less than three clear days'
notice in writing of his intention to do so, to have any other person whom he charges as the actual
offender brought before the court at the time appointed for hearing the charge; and if, after the
commission of the offence has been proved, the employer proves to the satisfaction of the court--
(a) that he has used due diligence to enforce the execution of this Act, and
(b) that the said other person committed the offence in question without his knowledge,
consent or connivance,

that other person shall be convicted of the offence and shall be liable to the like punishment as
if he were the employer and the employer shall be discharged from any liability under this Act in
respect of such offence:

Cognizance of offences.-
Where the amount of gratuity has not been paid, or recovered , within six months from the expiry of
the prescribed time , the government shall authorise the controlling authority shall , within 15 days
from the date of such authorization , make such complaint to a Judicial magistrate or Metropolitan
magistrate .
Protection of gratuity.-

No gratuity payable under this Act and no gratuity payable to an employee employed in any
establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under
section shall be liable to attachment in execution of any decree or order of any civil, revenue or
criminal court.
 BANK OF
BARODA
GRATUITY FUND
RULES AND REGULATIONS

1. Name & Object:

The Fund shall be known as “Bank of Baroda Gratuity Fund”
(hereinafter referred to as “The Gratuity Fund”). Subject to the provisions of these
Rules, the Gratuity Fund shall apply to all executives, officers and other
employees of the Bank whether they are employed in India or whether having been
employed in India are posted for service in any overseas branch or office of the Bank.
The Gratuity Fund is established under an irrevocable Trust created by the Bank
under the Deed of Trust dated 1-1-75 as modified and amended by the Deed of
Variation/modifications of the Gratuity Trust dated 5-5-89 for the sole purpose of
providing funds to secure payment of gratuity to the aforesaid employees of the Bank
as per these Rues. The Gratuity Fund shall be located in India and all payments made
under the Rules shall also be made only in India and in Indian currency only.

2. Definitions:
In these Rules the headings and/or marginal heads, notes shall not
affect the construction hereof and unless repugnant to the subject or context
masculine shall include feminine and following words and expression shall have
meanings assigned to them as follows:
“Employer”/”The Bank means, “Bank of Baroda”.
“Salary” includes dearness allowance, if the terms of employment so provide but
excludes all other allowances, special allowances and perquisites.
“Employee” means any person including the Executive officer or other employee of
the Bank on full time work on permanent or on part-time work on permanent basis
on scale wages but does not include a person employed either on contract basis or
daily wage basis or on consolidated wages and excluding those employed directly
outside India.

3. Date of Establishment of the Fund:

These Rues shall be deemed to have been
established as and form 1st January 1975 pursuant to the resolution of the Board
passed on 11th November 1975.

4. Membership: Every officer or employee entitled to gratuity under these Rules shall
become a member of the Gratuity Fund. A Director of the Bank may also be admitted
to the benefits of the Gratuity Fund only if he is a whole-time director of the Bank
and is otherwise qualified under these Rules to become a member of the Gratuity
Fund. Any member of the Gratuity Fund ceasing for any reason whatever to be in the
service of the Bank shall thereupon cease to be a member of the Gratuity Fund.

5. Management:
a. The Gratuity Fund and the investments and money forming part thereof are and 2 of 29 shall
stand vested in the Trustees (who shall not be less than two or more than
four in number) on trust and for the purpose of these Rules as for the time being and from time to
time in force, being trustees not removable save with the
unanimous consent of all the Trustees of the Trust or with the consent of all the
beneficiaries. The management and administration of the Gratuity Fund shall save
in so far as any powers are hereby conferred unto the Bank be exclusively
conducted by the Trustees whose decision from time to time upon any question
relating to the Gratuity Fund or interpretation of these Rules

6. Contributions to the Gratuity Fund: The Gratuity Fund shall consist of

contributions by the Bank and interest and dividends, which the investment of money
forming the Gratuity Fund from time to time may produce and of any capital gains
arising from the capital assets of the Gratuity Fund and no other sums.

7. Contributions by the Bank:

 The Bank shall contribute and pay to the Gratuity Fund by the end of each of its
financial year the amount representing that year’s contribution towards the
gratuity Fund calculated at the maximum rate of 8-1/3% of the salary of each
executive (for Director)/ Officer/employee during that year or the actuarial
valuation of such contribution whichever is less not withstanding the qualifications
imposed under Rule No. 12 as to the entitlement to gratuity. It is provided
however that the contribution payable by the Bank on the basis of actuarial
valuation should not exceed 8-1/3% of the salary of each
executive/officer/employee for each year.
 While making contributions under this Rule, the Bank may make adjustments by
way of deduction in respect of contribution made in earlier years for such
employees who have ceased to be in the service of the Bank but who were not
entitled to any gratuity under Rule 12 or any other rule at the time of their
ceasing to be in the service of the bank. The Bank may also stop making
contributions in respect of those who have reached maximum limits.

8. Declaration by the employee:

Every employee who shall be eligible to participate
in the Gratuity Fund and eligible to receive Gratuity under these Rules shall be bound
in all matters relating thereto by the Rules as in force from time to time and for the
time being and shall sign on being so eligible a declaration in Form No.1 annexed at
Annexure: 1 to these Rules.
Provided however, that the Rules of Gratuity Fund for the time being in force shall bind
every officers/employee whether he/she has assented to or signed the same or not.

9..Employees claim:
No executive/ officer/employee nor any person or persons
claiming through or under him shall be entitled to claim payment of any money out
of Gratuity Fund except as is by these Rules expressly provided nor shall any
executive/ officer/employee have any lien or charge on the fund.

10.Eligibility and Payment of Gratuity:

1) Each executive/officer/employee whose
service with bank ceases for any one the reasons set out below shall be entitled to
gratuity at the rate mentioned against each case:

A) In the case of executive/ officers Irrespective of the length of service,

On the death of an executive/officer gratuity
while in the service of the Bank or on his shall be payable at the rate of one month
becoming physically or mentally disabled
to continue further in the service of the
Bank
On superannuation or on termination of
his service by the Bank in any other way
except by way of punishment.
On voluntary retirement after 20 years of
service/or resignations of an officer after
5 year of continuous service in the Bank.
salary for each completed year of service
subject to the maximum of 15 months
salary.
After completion of 5 years service gratuity
shall be payable at the rate of one month’s
salary for each completed year of service,
subject to the maximum of 15 months
salary.
Gratuity shall be payable at the rate of one
month’s salary for each completed year of
service subject to the maximum 15 months
salary.

The gratuity of an employee whose services have been terminated for any act wilful
omission or negligence causing any damage or loss to, or destruction of, property
belonging to the employer, shall be forfeited to the extent of the damage or loss so
caused:
• The gratuity payable to an employee shall be wholly forfeited:
• If the services of such employee have been terminated for his riotous or disorderly
conduct or any other act of violence on his part, or
• If the services of such employee have been terminated for any act which constitutes
an offence involving moral turpitude provided that such offence is committed by him
in the course of his employment.7 of 29

11. For those who are entitled to gratuity under the Payment of Gratuity Act.
(1) As Per the provisions of that Act. (Expression Salary/ Wages shall have the
meaning assigned under the Act.)
(2) If in accordance of that the service rules of the Bank, a person is entitled to
gratuity either 1 (A) or 1 (B) and also 1 (C) gratuity will be payable to him as per
the rule which is more beneficial to him.
(3) The Trustees shall at the of payment under this rule deduct income-tax on such
amount of gratuity as is not exempt under the Income-tax Act as also the amount
of estate duty payable, if any, on the gratuity Payable to any
executive/officer/employee and have the said amount of tax credited to
Government revenue.
(4) In the event of dismissal of a workman/employee for misconduct, there shall be
deducted from the gratuity amount payable under Rule 12 an amount but only to
the extent of financial loss caused to the Bank by such misconduct.
(5) In every case an executive/ officer/employee ceasing to be employed by the Bank
and being entitled to a gratuity under these Rules, the Bank shall furnish within
reasonable time considering the provisions of Rule 23 to the Trustees the
particulars of the period of service of the employee, the details of the salary and
allowances last drawn by him and the reason or condition under which he ceased
to be employed and any other particulars which may be necessary for the
purpose of calculating the amount of gratuity payable to him and the particulars
so furnished shall be conclusive and shall not be called in question.
(6) In the case of an executive/officer/employee ceasing for any reason mentioned in
sub-rule (1) of this rule to be in the service of the Bank while working on
overseas branch/office of the Bank, the gratuity if payable under these or other
service Rules shall be payable in India and Indian currency at a corresponding
rate in salary scale applicable to such executive/officer/employees in India.
12. Nomination:
 The Trustees shall allow every employee to make a nomination conferring
on one or more persons authority to receive the amount of gratuity in the
event of this death before that amount becomes payable or having
become payable has not been paid. Such a nomination shall be in the
Form No.2 annexed at Annexure No. 2 hereto.
 If an employee nominates more than one person under sub-clause (1) he
shall in his nomination specify the amount or amounts payable to each of
the nominees or proportion of a share of the whole amount in such
manner as to cover the whole of the amount of gratuity that may be
payable in the event of his death.
 A nomination made by an employee may, at any time be modified or
modified or cancelled by his after giving a written notice to the Trustees of
his intention of doing so in the Form No.3 annexed at Annexure No.3

13. Payment in the absence of nomination: In the event of any employee failing to
appoint a nominee (and if necessary a person to receive on behalf of the nominee)
the amount due to him on his death will be paid to the legal heir of such
deceased employee on producing to the satisfaction of the Trustees a succession
certificate, probate or letters of administration or legal representation by competent
court or authority issued by a court of competent jurisdiction provided that in any
case the trustees may in their absolute discretion dispense with the production
probate or letters of administration or legal representation by competent court or
authority on production of such other evidence as it may require and on such terms
as to indemnify or otherwise as it may think fit in the manner as prescribed in Form
No.5 Annexed at Annexure 5 hereto. (If the payment is made to the nominee/s. the
execution of indemnity bond will not be necessary).

14. Payments when to be made: Payments of gratuity amount due under these shall
whenever reasonably possible be made within thirty days in one lump sum from the
date of receipt of application in the prescribed Form No.4 annexed at Annexes No.4
hereto provided that in the case of persons entitled for payment of gratuity under the
provisions of the payment of Gratuity Act 1972, such period shall be one month or
such period as prescribed by that Act for this purpose from the date of receipt of
application.
All gratuity benefits payable under these rules shall be paid only in lump sum and in
India only and in Indian currency only.
If the amount of gratuity payable is not paid by the trustees within the period
specified above, the trustees shall pay, from the date on which the gratuity becomes
payable to the date on which it is paid, simple interest at such rate, not exceeding
the rate notified by the Central Govt. from time to time for repayment of long term
deposits, as that Govt. may by notification specify.
Provided however where the amount of gratuity payable has been kept in
abeyance in the case of employee against whom departmental inquiry
proceedings have been initiated during the period of his service in the Bank and
such departmental inquiry proceedings have continued beyond the date of his
superannuation from service in the Bank no such interest shall be payable if
delayed in completion of such inquiry is in the opinion of the Trustee and a
recommended by the disciplinary authority of the Bank is due to the fault of the
employee or on consideration of seriousness of the charges levelled against him
the trustees are of the opinion that no such interest be paid and on completion of
departmental inquiry proceedings, the employees has been fully exonerated of the
allegations and charges levelled against him in such proceedings than the payment
of amount of gratuity shall be made to him with interest as provided for under these
rules.

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