ALL INDIA BANK EMPLOYEES' ASSOCIATION

Central Office: PRABHAT NIVAS Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001 Phone: 2535 1522,6543 1566 & Fax: 4500 2191, 2535 8853 e mail ~ chv.aibea@gmail.com & aibeahq@gmail.com

CIRCULAR LETTER NO. 26/103/2010/64 December, 2010 TO ALL OFFICE BEARERS, STATE FEDERATIONS AND ALL INDIA BANKWISE ORGANISATIONS Dear Comrades,

1st

Fixation of Pay to Ex-Servicemen discharged from services after 1-1-2006 and re-employed in Banks thereafter Units are aware that under the Government guidelines, the emoluments of Ex-Servicemen drawn by them at the time of discharge from the services are protected when they join the Banks and accordingly their Basic Pay is fixed in the Banks. From 1.1.2006, the emoluments of Government employees have been revised and new items like Grade Pay, etc. have been introduced. Hence there is a need to revise the Government guidelines on the emoluments to be protected while getting re-employed in Banks on or after 1.1.2006. We had taken up this issue with the IBA and in turn, the IBA referred the matter the Ministry of Finance, Government of India. The Finance Ministry has informed the IBA that since no revised guidelines have been given by the Department of Personal & Training (DOPT), Department of Expenditure or by the Defence Ministry, the earlier guidelines of December, 2000 will continue to be applicable. In view of the above, IBA has advised the Banks to follow the earlier guidelines for fixation of pay to the ex-servicemen. A copy of IBA circular and communication from the Finance Ministry is furnished herein. Since, there are improvements under the 6th Pay Commission like Grade Pay, etc. the Government guidelines needs revised and hence AIBEA has taken up the matter with the Government to issue revised guidelines to include items like Grade Pay for protection while fixing the pay in Banks to those Ex-Servicemen who left their services after 1.1.2006 and joined the Banks thereafter. With greetings, Yours Comradely,

C.H.VENKATACHALAM GENERAL SECRETARY

Encl: Copy of IBA Circular

Indian Banks Association

HR & INDUSTRIAL RELATIONS No./ HR & IR / MV/ 76 / 589 / 1822 November 15, 2010 The Designated Officers of Public Sector Banks, Dear Sir,
Fixation of pay to ex-servicemen re-employed in the Banks on or after 1.1.06

We had taken up with the Government seeking their advise in respect of the ex-servicemen retired from Armed forces on or after 01.01.2006 and re-employed in public sector banks during the period 01.01.2006 to 31.10.2007 and for 01.11.2007 onwards. Now we are informed by the Government vide their letter F.No.4/1/2008SCT(B) dated 21st October, 2010 of the Department of Financial Services, Ministry of Finance (copy enclosed) that the Department of Financial Services has not got any guidelines from DPO&T, Department of Expenditure or the Ministry of Defence in this connection. In the absence of any fresh guidelines, the Ministry of Finance have advised us to accord fitment of salary of ex-servicemen re-employed on or after 01.01.2006 on the basis of guidelines issued by Government earlier contained in Chapter V of the Compendium of Government Guidelines published in December 2000 which was based on the salary the ex-servicemen have drawn in the armed forces at the time of their retirement. In view of the above the bank may follow the above guidelines while according fitment of salary on re-employment of ex-servicemen on or after 01.01.2006. Please note that the components of salary mentioned in the above guidelines only needs to be protected while according such fitment. A copy of the Chapter V of the Compendium mentioned above is enclosed for ready reference. Yours faithfully, Sd.. (M.Venugopalan) Officer-on-Special Duty