Union Bank Employees are not happy with new decision taken by Management related to staff benefit schemes

In an effort to boost the adoption of the Reserve Bank of India’s digital rupee, the state-owned Union Bank of India is strategizing a shift in its approach to employee benefit schemes. The bank plans to transfer claims directly to the Central Bank Digital Currency (CBDC) wallet rather than traditional salary accounts.

Encouraging CBDC Wallet Transactions

The bank, in a communication to employees on December 26, has urged staff members to engage in transactions using the CBDC wallet. The aim is to ensure 100% staff registration on the digital rupee app.

Initiating a Transition: Newspaper Allowance to CBDC Wallet

As a starting point, the bank’s management has decided to credit the newspaper allowance directly to the CBDC wallet. All employees are advised to register on the bank’s digital rupee app to facilitate this transition.

Challenges Faced: Staff Resistance

Despite the bank’s intentions, a pilot run toward this goal is encountering resistance from some staff members. The All India Union Bank Employees Federation is actively protesting the move, asserting that the use of the CBDC wallet should be optional. The federation recommends that the management consult with staff members before enforcing such changes.

Employee Federation’s Perspective

In a letter to the management on December 28, the association emphasized that the use of CBDC should remain optional, and the bank management cannot compel employees to adopt it. The federation suggests that the desire for 100% staff registrations on the Digital Rupee App should be limited to advice and encouragement, without compelling employees to use it.

RBI’s CBDC Retail Launch and Achievements

The Reserve Bank of India launched CBDC – Retail on December 1, 2022, presenting a digital form of paper currency known as digital Rupee. According to Moneycontrol, RBI successfully met its target of reaching a million daily transactions in the retail segment of CBDC on December 27. Numerous banks are reportedly offering incentives, such as cashbacks or reward points, to promote the widespread use of digital currency.