12th BPS Update: Bank Unions held Discussions on remaining issues with IBA

On March 8, 2024, the Bipartite Settlement and Joint Note were signed, and since then, the Bank Union has been reminding the Indian Banks’ Association (IBA) to continue discussions on other residual issues. In response, a virtual meeting was held between the IBA and the United Forum of Bank Unions (UFBU) this afternoon. The IBA team was represented by Shri Rajneesh Karnatak, MD & CEO of Bank of India, and Chairman of the IBA’s Standing Committee on HR, along with Shri S L Jain, MD & CEO of Indian Bank, and other executives who are members of the committee and officials of the IBA. The UFBU was represented by their constituent unions.

Ex-gratia for Pensioners

During the meeting, the issue of reviewing the ex-gratia amount payable to all pensioners was discussed. It was agreed to continue the same ex-gratia amount from April 1, 2024, onwards for the current financial year. Furthermore, it was suggested that after the balance sheets of the banks as of March 2024 are finalized and declared, the issue can be discussed further. The UFBU pointed out that for pre-November 2002 pensioners, the dearness allowance (DA) needs to be notionally taken with 100% neutralization in order to calculate the ex-gratia amount. The IBA was urged to advise the banks accordingly. Additionally, the UFBU suggested that the ex-gratia payment can be extended to private banks based on the provisions of the 12th Bipartite Settlement (12′ BPS) and requested the IBA to communicate this to the relevant banks. This particular issue requires further discussion.

Modifications and Improvements in PLI

The UFBU also brought up the need to modify and improve the existing matrix provided in the Performance Linked Incentive (PLI) formula. The IBA informed the UFBU that this issue requires thorough discussions and can be addressed in the next meeting. Furthermore, the UFBU informed the IBA that some banks have not paid the difference in PLI amount for the year ended March 31, 2023, based on the revised emoluments paid after the wage revision. The IBA was requested to clarify this matter to the banks.

Option for Resignees to Join the Pension Scheme

Another topic discussed during the meeting was the option for eligible resignees to join the pension scheme, as provided in the Settlement/Joint Note. The UFBU requested the IBA to advise the banks to initiate the necessary steps to extend this option.

Residual Issues

Lastly, the UFBU requested the IBA to schedule a date for discussing the residual issues, including the Medical Insurance. The IBA agreed to finalize the date and hold the meeting as soon as possible.