The officers’ association of Punjab National Bank (PNB) has demanded the bank to pay quarterly Closing Allowance to all officers, regardless of their place of posting.
AIPNBOA has written a letter to the Managing Director and CEO on May 30, 2026.
According to the association, the bank is currently paying the Closing Allowance only to officers working in General Banking Branches (GBBs). However, before the merger of banks into PNB in 2020, this allowance was being paid to all officers.
The association stated that after the amalgamation, the quarterly Closing Allowance was discontinued for officers posted in administrative offices, circle offices, zonal offices, and other verticals of the bank.
AIPNBOA says that this restriction is not in line with the provisions of the 9th Joint Note signed between the Indian Banks’ Association (IBA) and officers’ associations on March 8, 2024.
As per Clause 2(xii) of the 9th Joint Note, officers are entitled to receive a Closing Allowance of ₹1,500 per quarter with effect from April 1, 2024.
The association pointed out that the agreement does not mention any distinction based on the officer’s place of posting. Therefore, the allowance should be provided to all officers equally.
The association argued that officers working in administrative offices and other departments also perform important duties that contribute to the growth and functioning of the bank.
Restricting the allowance only to officers posted in branches creates an unnecessary disparity among employees.
Several other public sector banks are reportedly paying the Closing Allowance to all officers without any distinction regarding their place of posting. Therefore, the association believes that the allowance is linked to the officer category and not to a particular office or branch.
In its letter, the association requested the bank management to review the matter and issue necessary instructions so that all officers, irrespective of their posting location or scale, receive the benefit of the Closing Allowance.
AIPNBOA has also requested Bank to pay arrears from April 1, 2024, along with clear guidelines to ensure uniform implementation across the bank.
