The Federation of Bank of India Officers’ Associations (FBOIOA) has introduced a special relief initiative called “FBOIOA Sahayya,” offering interest-free financial assistance to officers facing severe salary cuts due to perquisite tax deductions. The scheme aims to provide immediate financial support to officers whose net salary for February 2025 was less than ₹20,000 because of heavy tax deductions.
Recently, public sector banks have imposed tax on perquisites offered to officers. Bank Employees get some job benefits such as loans on low rate of interest. For example – Rate of interest for Car Loan for normal public is 9%. Bank Employees get loan at 5.5%. As the rate of interest is low for Bank Employees, they are able to save some money in loan and this is counted as Perquisite. Now, Bank Employees have been ordered to pay tax on this Perquisite. This means that tax will be paid on the difference in amount due to difference in Rate of Interest. In case of car loan, if normal public pays Rs.1000 interest but Bank Employees pay Rs.700 interest, then Bank Employees need to pay tax on difference amount i.e.Rs.300.
Over 1,400 officers affected by tax deductions
A large number of officers in the Bank of India have received significantly reduced or no salary in February 2025, leading to financial distress. Reports indicate that nearly 1,400 officers had net salary credits of less than ₹20,000 due to high perquisite tax deductions applied by the bank.
In response, the FBOIOA has been negotiating with bank management to find a long-term solution. However, to offer immediate relief, the federation has launched this interest-free advance scheme for affected officers.
Who is eligible for the scheme?
To apply for financial assistance under the Sahayya scheme, an officer must meet the following criteria:
- Must be an active FBOIOA member.
- Net salary for February 2025 should be below ₹20,000, primarily due to perquisite tax deductions.
Application process and required documents
Eligible officers need to submit an application form (Annexure-1) through their Unit General Secretary along with the following documents:
- A copy of the February 2025 salary slip showing a net salary below ₹20,000.
- Five post-dated cheques (PDCs) of ₹10,000 each, drawn in favor of the respective unit.
- Deadline for application submission: March 7, 2025.
Disbursement and repayment of financial assistance
Under the FBOIOA Sahayya scheme, officers will receive ₹50,000 as an interest-free financial advance, which will be disbursed in two equal installments:
- ₹25,000 as the first installment upon approval of the application.
- ₹25,000 as the second installment in the following month.
The repayment will begin from May 2025, with officers required to repay the total amount in five equal monthly installments of ₹10,000 each.
Federation’s commitment to officer welfare
The FBOIOA has assured officers that discussions with bank management are ongoing to prevent such financial distress in the future. While the Sahayya scheme serves as a short-term relief measure, the federation remains committed to finding a long-term solution for perquisite tax deductions affecting officers’ salaries.
Officers facing financial difficulties are encouraged to apply for the scheme before March 7, 2025, to avail of this support.
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