If you are a banker, you must have definitely heard about the IBA. What is IBA, and why does it deal with banks, and why does the body mediate all settlements? Let’s know about it.
The Indian Banks’ Association (IBA) was formed on 26 September 1946. It is an unregistered, voluntary association of like-minded banks and individuals in India. It is a representative body of Indian banks and financial institutions based in Mumbai. IBA is not a legal or constitutional body.
The Indian Banks’ Association (IBA) was formed on September 26, 1946 with 22 members. As on date the total Membership of the Association is 238. 137 are ordinary members and 101 are associate members.
Ordinary Members
| Member Type | No. |
|---|---|
| Public Sector Banks | 12 |
| Private Sector Banks | 21 |
| Payment Banks / Small Finance Banks / Local Area Banks | 19 |
| Foreign Sector Banks | 44 |
| Co-operative Sector Banks | 41 |
Associate Members
- All India Financial Institutions
- ASSET RECONSTRUCTION COMPANIES
- Co-operative Banks and Entities
- Foreign Banks having representative offices in India
- NBFC / Other Financial Institutions
- OTHER INSTITUTIONS
- RATING AGENCIES
- Regional Rural Banks
- SUBSIDIARIES / ASSOCIATIONS / MISCELLANEOUS
If IBA is not a legal body, then why does it mediate all settlements?
The Government of India has authorised the Indian Banks’ Association (IBA) to handle and negotiate all wage settlements for bank employees. Just as the government sets up a Pay Commission to revise the salaries of central government employees, in a similar way, the IBA has been given the responsibility to carry out wage revision for employees of banks.
Inclusion of Private Banks impacts the Wage Revision?
Yes, because some private banks are also part of the wage revision process, it affects how the overall revision is carried out. Private banks follow a different pay structure, while public sector bank employees have their own demands. Due to these differences, the final wage revision may see some variations.
In recent years, many public sector bank employees have been demanding changes in the wage revision system and the body that oversees it. They have argued that the IBA should be removed or that private banks should no longer be involved in the wage revision process for PSU bank employees. One bank employee pointed out that the Central Pay Commission deals only with central government employees, so they question why the wage revision for PSU bank employees includes private banks at all.
What do you think? Let us know in the comments section below.
