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PNB has changed the rules of the Voluntary Contribution Fund (VCF) on 07.10.2026 with an aim to provide additional financial assistance to employees and their families in cases of serious illness or major medical emergencies.
What is this Voluntary Contribution Fund (VCF)?
Voluntary Contribution Fund (VCF) is a fund created from contributions by bank employees. Bank employees contribute a fixed amount each month, which is deposited in a fund. This fund is called the Voluntary Contribution Fund. If any employee faces a serious medical condition and needs money for treatment, then the bank provides money to the employee from this fund. This fund is very important, as the medical facility provided to bank employees is not very good.
On average, bank employees have medical insurance coverage of up to ₹5 lakh only. Therefore, this fund is very important if an employee suffers from a serious illness that requires treatment costing several lakhs of rupees.
How much contribution is done by each employee?
Officers contribute ₹100 per month and Workmen contribute ₹50 per month. The contribution is completely voluntary.
Who can avail the benefit?
Only an employee who has contributed to the VCF will be eligible for assistance from the fund. Assistance may be provided in serious medical cases involving the employee, spouse, and eligible dependent family members.
In which cases can assistance be provided?
Assistance can be provided in medical emergencies such as:
- Brain Hemorrhage
- Brain Aneurysm/AVM/Stroke
- Multiple Organ Failure/Coma
- Road Accident
- Cancer Surgery
- Prolonged ICU hospitalization
- Organ Transplant
- Any other serious illness considered appropriate by the Committee.
Most important change — VCF after Insurance
The employee will first receive payment/coverage up to the limit of the IBA Group Medical Insurance. After that, the remaining eligible medical expenses may be covered through the VCF as per the rules. Changes under the current rules are:
- Scale VI & Above: Up to ₹14 lakh — No payment from VCF
- Scale I–V: Up to ₹12 lakh — No payment
- Workmen: Up to ₹10 lakh — No payment
- For the next ₹15 lakh: Up to 100%
- From ₹15 lakh to ₹30 lakh: Up to 90%
- From ₹30 lakh to ₹50 lakh: Up to 80%
The actual assistance will be decided by the Committee on a case-to-case basis, subject to the conditions of the scheme and availability of funds.
What is the maximum benefit available?
After fully utilizing the IBA insurance limit, a maximum benefit of up to ₹44.50 lakh can be received from the VCF during the entire service period. This will include any VCF claim already received.
What about death cases?
VCF assistance on the basis of death has now been discontinued.
Important Points
If an employee receives financial assistance from the VCF, the employee cannot stop VCF contributions until completion of service.
- Last date to opt in this fund is 17.10.2026
- Employees who have already opted in this fund can now opt out if they wish.
- If no action is taken, the existing opt-in status will continue.
- New employees will get an option for 90 days from their date of joining to join this fund.
By contributing ₹100/₹50 per month, an employee joins a welfare fund. If, in the future, the employee or an eligible dependent incurs medical expenses beyond the insurance limit due to a very serious illness, the VCF can provide significant financial assistance towards the additional expenses, subject to the rules. Therefore, employees who have not yet opted in should definitely check their consent status in HRMS by 17 October 2026.
