Federal Bank Increases Benefits Offered to its Employees, Check All New Allowances Here
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The Federal Bank Officers’ Association (FBOA) has signed a major internal agreement with the management of Federal Bank. This marks a big win for the officers.
Sreenath Induchoodan, AIBOC Kerala State Secretary, congratulated the FBOA team and praised their unity and strength. He recalled how FBOA refused to leave AIBOC despite pressure from the bank and stood firm during national strikes. He also highlighted past legal victories, including a key judgment from the Kerala High Court in FBOA’s favor.
“This agreement is a result of strong unity and fair discussions,” he said. “It’s a proud moment for all officers.”
Let’s have a look at the Internal Settlement
Medical Checkup
Representatives of the management agreed to enhance reimbursement of expenses incurred by Officers for yearly medical checkup to a maximum of Rs 9,000/- per annum from the existing amount of Rs 7,000/-. Officers who undertake medical checkup along with the spouse will be reimbursed a maximum amount of Rs 10,000/- per annum from the existing amount of Rs 9,000/. All other existing terms and conditions will continue to be in force.
Fixed Conveyance Allowance
| Scale I | Rs. 4000/- per month from the existing amount Rs 3500/-. |
| Scale II & III | Rs. 4300/- per month from the existing amount of Rs 3800/-. |
Reimbursement of cost of Petrol / Diesel
| Category | Four Wheelers – Litres per month (Existing) | Four Wheelers – Litres per month (Revised) | ||||
| (Eligibility of Principal Officers shown in brackets) | (Eligibility of Principal Officers shown in brackets) | |||||
| A1 | A2 | A3 | A1 | A2 | A3 | |
| Scale I | 90 (110) | 90 (105) | 85 (100) | 98 (118) | 98 (113) | 93 (108) |
| Scale II | 95 (120) | 95 (115) | 90 (110) | 103 (128) | 103 (123) | 98 (118) |
| Scale III | 105 (130) | 105 (125) | 95 (115) | 113 (138) | 113 (133) | 103 (123) |
- Those Officers who do not claim petrol/diesel reimbursement for four wheelers, but own and maintain two wheelers will get an additional 5 Litres of Petrol per month from the existing limit applicable for Two wheelers.
Reimbursement of Mobile Phone call charges
Officers in Scale I & II, other than principal officers, shall be eligible for reimbursement of Mobile Phone call charges incurred for business purpose on declaration basis as given below.
| Scale | Officers (working in Branches) | Officers (working other than in Branches) |
| I | Rs. 1,800/- per month | Rs. 1,500/- per month |
| II | Rs. 2,350/- per month | Rs. 2,050/- per month |
Combined eligibility for reimbursement of Residential Telephone / Mobile Phone call charges
The combined eligibility for Residential Telephone charges and Mobile Phone call charges shall be as per the table below.
| Category of Officers | Combined eligibility |
| Relationship Officers in Scale I & II | Rs 3,000/- per month |
| Principal Officers of Branches in Scale I & II | Rs 3,500/- per month |
| Officers in Scale III (working other than in Branches and Relationship Officers) | Rs 3,800/- per month |
| Officers in Scale III (working in Branches) | Rs 4,000/- per month |
| Relationship Officers in Scale III | Rs 4,200/- per month |
| Principal Officers of Branches in Scale III | Rs 4,500/- per month |
Entertainment Expenses
Representatives of the Management agreed to enhance the maximum amount of reimbursement of
entertainment expenses as follows subject to other applicable norms:
| Scale I | Rs 3000/- per month from the existing amount of Rs 2600/-. |
| Scale II | Rs 3300/- per month from the existing amount of Rs 2900/-. |
| Scale III | Rs 3750/- per month from the existing amount of Rs 3300/-. |
Reimbursement of Cost of Cleansing Materials
The Management has agreed to increase the monthly allowance for cleansing materials from ₹1,200 to a maximum of ₹1,400, subject to applicable norms.
Reimbursement of Cost of Briefcase
The Management has agreed to enhance the maximum reimbursement amount for the cost of briefcase/ladies bag to ₹6,000 (from ₹5,250) for Scale I Officers, and to ₹6,500 (from ₹5,750) for Scale II & III Officers, subject to applicable norms. The reimbursement period will remain unchanged and will continue on a declaration basis.
Vehicle Maintenance Expenses
Representatives of the Management agreed to enhance the reimbursement of annual vehicle maintenance expenses as follows, subject to other applicable norms.
| Scale I | : Rs 4900/- from the existing Rs 4300/- |
| Scale II & III | : Rs 5850/- from the existing Rs 5200/- |
| Principal Officers in Scale I, II & III | : Rs 7250/- from the existing Rs 6500/- |
Business Promotion Expenses
Representatives of the Management agreed to enhance the business promotion expenses payable to Principal Officers as follows, subject to other applicable norms:
| Category | Existing | Revised | ||
| Scale I, II & III (Principal Officers) | A1 Centres | Other Centres | A1 Centres | Other Centres |
| 4900 | 4400 | 6000 | 5500 | |
Newspaper
It has been agreed to enhance the cost of reimbursement of Newspaper/Additional Magazine as follows, subject to eligible norms.
| Scale I & II | Rs 650/- per month from the existing amount of Rs 600/- |
| Scale III | Rs 850/- per month from the existing amount of Rs 775/- |
Scholarship for the Children of Officers
Representatives of the Management agreed to enhance the maximum amount of Scholarship to the children of Officers per annum as follows, subject to other applicable norms.
| Category | Existing | Revised |
| Children studying in STD IV, V, VI & VII | 3200 | 3800 |
| Children studying in STD VIII, IX, X, XI & XII | 4200 | 4800 |
| Children studying for BA, B Sc, LLB , other degree Courses & Post Graduate Degree courses like MA, M Sc, M Com | 5200 | 5900 |
| Children studying for Professional Courses | 6800 | 7500 |
Club Allowance
The Management has agreed to enhance the maximum ceiling for reimbursement of club membership admission fees for Principal Officers to ₹15,000, up from the existing ₹14,000, subject to existing stipulations. Additionally, it has been agreed to revise the annual Club Allowance subscription as follows:
| Category | Existing | Revised |
| Branch Managers in Metro Centres | 12000 | 13000 |
| Branch Managers in State Capitals | 9750 | 10000 |
| Branch Managers in Other Centres | 9200 | 9500 |
Out of Pocket expenses to Officers assigned with duties of ATM
It has been agreed to enhance the amount of out-of-pocket expenses reimbursed to Officers assigned with duties of ATM related works to Rs 2400/- per month from the existing amount of Rs 2200/-. All other extant terms & conditions for claiming ATM allowances will continue to be applicable.
System Administrator Allowance
It has been agreed to enhance the amount of System Administrator allowance reimbursed to Officers assigned with duties of System Administrator to Rs 1550/- per month from the existing amount of Rs 1450/-. All other extant terms & conditions for claiming System Administrator allowance will continue to be applicable.
Digital Promotion Allowance
Representatives of the Management agreed to enhance Digital Promotion Allowance, payable to all Officers in scale I, II & III, to Rs 3000/- per annum, which will be payable on a half yearly basis (Rs 1500/- each) in September & March, from the existing amount of Rs 2600/-.
- Housing Loan
- Representatives of the Management agreed to enhance the maximum amount of Housing Loan to Officers from the existing limit of Rs 110.00 lakh to Rs 130.00 lakh subject to other applicable norms/ stipulations.
- The rate of interest will be as follows:
- Upto & including Rs 20 Lakh @ 5% Simple
- Above Rs 20 Lakh upto and including Rs 50 Lakh @ 6% Simple
- Above Rs 50 lakh @ 6.50% Simple
All other terms and conditions of Housing Loan scheme published in Federal Bulletin 13/2006 and subsequent improvements, will continue to be applicable.
House Maintenance Loan
Representatives of the Management agreed to enhance the maximum amount of House Maintenance Loan to Officers from the existing limit of Rs 7.00 Lakh to Rs 9.00 Lakh, subject to other applicable norms/stipulations
- Vehicle Loan
- Four Wheelers
It has been agreed to enhance the maximum amount of vehicle loan to Officers as follows:
| Category | Existing Amount | Enhanced Amount |
| Scale I | Rs 10.00 Lakh | Rs 12.00 Lakh |
| Officers in Scale II & III | Rs 12.50 Lakh | Rs 15.00 Lakh |
Two Wheelers
The amount of loan for purchase of two wheelers has also been increased to Rs 2.25 Lakh from the existing limit of Rs 1.75 Lakh. All other terms & conditions will continue to be in force.
Personal Loan
It has been agreed to enhance the maximum amount of personal loan to Officers to Rs.11.00 Lakh from the existing amount of Rs 10.00 Lakh, subject to other applicable norms.
Demand Loan
It has been agreed to increase the maximum amount of demand loan available to Officers from ₹4.00 lakh to ₹5.00 lakh, subject to applicable norms.
Officers’ Furniture Advance
It has been agreed to enhance the amount of Officers’ Furniture Advance as follows, subject to other applicable stipulations.
| Category | Existing Amount | Enhanced Amount |
| Officers in Scale I | Rs 2.30 Lakh | Rs 2.70 Lakh |
| Officers in Scale II & III | Rs 2.60 Lakh | Rs 3.00 Lakh |
All other terms & conditions will continue to be in force.
Festival Advance to Officers
Representatives of the Management agreed to enhance Festival Advance to Officers up to an amount equivalent to one-month Basic Pay + DA + Special Allowance subject to a maximum of Rs 1.25 Lakh from the existing amount of Rs 1.00 Lakh. All other existing terms and conditions continue to be in force.
Transfer Discomfort Loan
It has been agreed to enhance the amount of Transfer Discomfort Loan to Rs 3.00 Lakh from the existing Rs 2.50 Lakh. All other existing terms and conditions will continue to be in force.
Vehicle Repair Loan
It has been agreed to increase the vehicle repair loan limit to Rs 0.90 Lakh from the existing amount of Rs 0.80 Lakh. All other terms and conditions continue to be in force.
Gold Loan
It has been agreed to increase the gold loan limit to Rs 10.00 Lakh from the existing amount of Rs 7.50 Lakh. All other terms and conditions continue to be in force.
Computer Loan
It has been agreed to enhance the Computer Loan amount to ₹1.10 lakh from the existing ₹1.00 lakh. Within this overall eligibility, up to ₹45,000 may be availed as a separate loan for the purchase of a mobile phone or tablet. All other existing terms and conditions will remain unchanged.
