Government announced New Transfer Policy for PSU Bank Employees

The Government has introduced a New Transfer Policy for Public Sector Bank Employees in India. 

 The banks’ ‘Transfer Policy’ has been assessed to enhance transparency and establish a consistent, non-discretionary framework. 

Public Sector Banks (PSBs) are advised to incorporate these recommendations into their own ‘Transfer Policy’ with the approval of their Boards. Immediate action is required for implementation and compliance starting from FY 2025-26.

New Transfer Policy for PSU Bank Employees (Government Bank Women Staff)Administrative Layers: 

Clearly define various administrative layers (Region, Zone, Circle, FGMO) and establish minimum and maximum tenures at each layer.

Transfer Timelines: Define and adhere to strict transfer timelines, completing transfer exercises before June each year, with mid-year transfers minimized except for promotions or administrative needs.

Transparency in Transfers: Ensure transparency by annually publishing seniority lists and existing/expected vacancies. Rotational transfers should be based on seniority, with exceptions documented.

Automation of Transfer Process: Develop an online platform for the transfer process, allowing employees to express location preferences. The portal should include transfer policies, guidelines, seniority lists, and vacancy details.

Regional Accommodation: Accommodate officers up to Scale-III in their respective linguistic regions to enhance customer service, considering vacancies and administrative needs.

Difficult Areas Designation: Designate certain regions as ‘Difficult Areas’ and prioritize transfers for employees after their tenure there.

Incorporation of Additional Grounds: Include additional grounds for transfer such as marriage, spouse, medical needs, maternity, child care, and distant postings.

Spouse Employment Consideration: Make efforts to post employees in the same or nearby regions if their spouse works in Central or State Governments.

Women Employees’ Transfers: Transfer women employees to nearby locations whenever possible, ensuring their safety and access to basic amenities in remote postings.

Grievance Handling: Address grievances regarding transfer policy violations with care, ensuring detailed deliberations and proper documentation of responses.Appeals Committee: Establish a committee to review transfer appeals, ensuring they are resolved within 15 days.

Transfer Protection for Office Bearers: Clearly define the position, tenure, and applicability of transfer protection for office bearers of Associations/Unions, ensuring it does not apply upon promotion.

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DA increase for Bankers from Aug 2024

 

Good news for bank employees! The Dearness Allowance (DA) has been increased for the period from August to October 2024. This adjustment aims to help employees cope with rising living costs. Keep reading to find out the new DA rates and how this change will affect your salary.

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Good news for Bank Employees about PSU bank Privatisation

In a significant policy shift, the Centre has postponed the privatisation of two public sector banks (PSBs), according to sources. This decision comes amidst indications that the government is reassessing its approach to merging PSBs in the fiscal year 2025 (FY25). The disinvestment pipeline, as per sources, will be influenced by the prevailing market conditions.

Earlier on Wednesday, Finance Secretary TV Somanathan stated that the government will avoid pre-announcing its divestment plans for FY25 to ensure the optimal valuation of public companies. The Union Budget, for the second consecutive year, omitted any mention of ‘disinvestment’, highlighting the Modi 3.0 Government’s focus on enhancing the value of Central Public Sector Enterprises (CPSEs) rather than reducing its equity holdings.

Finance Minister Nirmala Sitharaman has set a disinvestment target of Rs 50,000 crore for 2024-25. However, the Interim Budget presented in February revised the disinvestment estimate for 2023-24 down to Rs 30,000 crore. The Interim Budget for FY2025 included a general category named ‘Miscellaneous Capital Receipts’ under capital receipts, which did not specifically mention ‘disinvestment’. This category comprises receipts from managing equity investments and public assets through various mechanisms.

The government aims to generate Rs 50,000 crore from disinvestment and asset monetization in the current fiscal year, according to DIPAM Secretary Tuhin Kanta Pandey. At a press conference following the Union Budget presentation, Pandey emphasized, “Our focus is on value creation.” This Rs 50,000 crore target under ‘Miscellaneous Capital Receipts’ encompasses various types of receipts, including disinvestment and asset monetization.

In a pre-Budget report, SBI Research suggested that the government should establish a clear policy on PSB disinvestment. The report stressed the importance of a concrete roadmap to attract capital and boost confidence in financial institutions. Additionally, a recent report from CareEdge Ratings highlighted a substantial disinvestment capacity of approximately Rs 11.5 trillion, based on current market capitalizations. This figure assumes the government maintains a minimum 51 percent stake in the public enterprises.

The decision to stay the privatisation of PSBs reflects the government’s strategic shift towards maximizing the value of its public sector enterprises rather than immediate divestment. With a significant disinvestment target and a focus on market conditions, the Centre’s approach aims to balance fiscal goals with market stability and investor confidence.

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Bank Staff Benefits, Allowances and benefits provided to PSB Employees

 

Public sector banks in India offers a good number of benefits to its employees. You can check various allowances, benefits provided to employees as listed below.

Medical Aid

50% of Basic Pay of Previous Year’s December Month. Officers recruited during the year shall be allowed 50% of basic pay (pro-rata) as on date of joining the Bank.

Health Checkup

Facility for Officers (Self & Spouse with age of 35 years & Above; Once in a Calendar Year)

Upto Scale III	Rs. 3500 per person
Scale IV & V	Rs. 4500 per person
Scale VI & VII	Rs. 6000 per person
Scale VIII	Rs. 8000 per person

 

Stationery: Purchase of Stationery Items like Fountain/ Ball Pen refills etc.- Rs. 350 per calendar year

Newspaper Facility (to be claimed Quarterly)

Scale I	Rs. 200 (monthly)
Scale II & III	Rs. 300 (monthly)
Scale IV & V	Rs. 450 (monthly)
Scale VI and above	Rs. 600 (monthly)

 

Entertainment Expenses (Annual Limit per Financial Year)

Scale I	Rs.8600 (upto 7 yrs service)/ Rs.10800 (>7 yrs service)
Scale II	Rs. 11500
Scale III	Rs. 12200
Scale IV & V	Rs. 12900
Scale VI	Rs. 19500
Scale VII	Rs. 37500
Scale VIII	Rs. 50000

 

Cleansing Material Reimbursement(to be claimed Quarterly)

Petrolage in liters	Maintenance in Rs.	Reimbursement for Electric Vehicle
Scale I (other than BH)	40	50	3000
Scale I (BH)/ Dy Mgr	60	150	4500
Scale II	60	150	4500
Scale III	95	150	7000
Scale IV	120 (non- metro)/ 135 (metro)	135/150	9000(non-metro)/ 10000 (metro)
Scale V	140 (non- metro)/ 160 (metro)	–	–
Scale VI	160 (non- metro)/ 180 (metro)	–	–
Scale VII & VIII	200 (non- metro)/ 220 (metro)	–	–

 

Scholarship scheme: to provide financial assistance to one talented child of the employees only for one talented child per family during the service (Paid Once a Year i.e. on submission of claim by 31st December of the year of commencement of academic session).

Cadre	For Daughter	For Son
Officer	Rs. 20000	Rs. 8000

 

Festival Advance (Once in Calendar Year- One Month Gross Salary with following maximum limits)

Scale I	Rs. 35000
Scale II	Rs. 50000
Scale III	Rs. 60000
Scale IV & V	Rs. 85000
Scale VI & VII	Rs. 100000
Scale VIII	Rs. 125000

 

 

Staff Clean Overdraft/ Demand Loan Facility

Cadre/ Length of Service	>6 months upto 3 yrs	=>3 yrs upto 12 yrs	=> 12 yrs
Upto Scale IV	Rs. 5 lakhs	Rs. 10 lakhs	Rs. 15 lakhs
Scale V and above	Rs. 8 lakhs	Rs. 15 lakhs	Rs. 15 lakhs

 

Housing Loan Scheme (HRDD 886/2023 & 915/2024) Principal: Interest = 3:1

Tenure: Upto 75 years of age or 360 monthly installments whichever is earlier ROI – Upto Rs.40 lakh – 5.50% p.a. Simple/ Above Rs.40 lakh- 6.00% p.a. Simple

Cadre	Housing Loan Limit	Loan for Repair/ Renovation/ Furnishing
Upto Scale III	Rs. 120 lakhs	Rs. 30 lakhs
Scale IV & V	Rs. 150 lakhs	Rs. 30 lakhs
Scale VI & VII	Rs. 160 lakhs	Rs. 30 lakhs
Scale VIII	Rs. 180 lakhs	Rs. 30 lakhs

 

Conveyance Loan
ROI – Car Loan- 5.50% p.a. Simple/ Two Wheeler- 5.50% p.a. Simple

	Principal: Interest	Tenure
Car Loan	130 months: 50 months	Upto 70 years of age or 180 monthly installments whichever is earlier
Two Wheeler	69 months: 15 months	Upto 70 years of age or 84 monthly installments whichever is earlier

 

	Non Electric		Electric
Cadre	2-Wheeler	Car	2-Wheeler	Car
Officers	Rs. 3.50 lakh	Rs. 18.00 lakh	Rs. 4.00 lakh	Rs.20.00 Lakh

 

Purchase of Briefcase of Officers (Once in 3 years)

Scale I	Rs. 2500
Scale II & III	Rs. 3500
Scale IV & V	Rs. 7000
Scale VI & VII	Rs.25000
Scale VIII	Rs.30000

 

 

Compensation to Officers for working on Sundays/ Holidays

Other than CTS/ ECS/ RTGS/ SWIFT/ RBI/ GOVT. directions	Work < 4 hour- ½ day DiemWork > 4 hour- 1 day Diem OR 1 Day compensatory leave
On CTS/ ECS/ RTGS/ SWIFT/ RBI/ GOVT. directions	Rs. 2000 (Including Scale IV)

 

 

Group Personal Accident (GPA) Insurance Policy for Staff at Bank’s cost

Cadre	Sum Insured in (Rs.)
Scale I, II & III	Rs. 2500000
Scale IV to V	Rs. 5000000
Scale VI to VIII	Rs. 7500000

 

 

Leased Residential Accommodation

	Delhi/ Gurgaon & Mumbai	Major A Class	Area I/ State Capital (Including Faridabad, Ghaziabad)	Area II (Including Noida)	Area III
Scale I	30000	22500	17000	11000	8500
Dy. Manager	30500	23000	17500	11500	9000
Scale II	32000	23500	18000	12000	10000
Scale III	33500	26000	20500	13000	11500
Scale IV	37000	29500	23500	15000	15000
Scale V	45000	33000	26000	18000	18000
Scale VI	74000	45500	34000	22000	22000
Scale VII	85500	57500	40000	30000	30000
Scale VIII	87500	60000	50000	40000	40000

·         Major ‘A’ Class cities – Kolkata, Chennai, Hyderabad, Ahmadabad and Bangalore, Pune, Surat.

·         Area I – Areas having population of over 12 lakh plus State Capitals.

·         Area II – All cities other than those included in Area I which have a population of 1 lakh and more.

·         Area III – All other places not included in Area I and Area II.

 

Reimbursement of Expenses on Travel (Halting allowance – Diem)

	Metro (Including Delhi/ Gurgaon)	Major A Class	Area I (Including Faridabad, Ghaziabad)	Other (Including Noida)
Upto Scale III	2925	2475	2150	1800
Scale IV & V	3375	2925	2475	2150
Scale VI and above	4050	2925	2475	2150

 

Reimbursement of Expenses on Travel(Lodging & Boarding Facility – Hotel)

	Metro (Including Delhi/ Gurgaon)	Major A Class	Area I/ State Capital (Including Faridabad, Ghaziabad)	Other (Including Noida)
Scale I	2600	2600	2500	2000
Scale II & III	3200	3000	2800	2300
Scale IV & V	5200	4800	3000	2800
Scale VI & VII	10000	7800	4000	3500
Scale VIII	10000	8000	4200	3800

·         Metro: – Mumbai, Kolkata, Delhi, Chennai & Bangalore

·         Major ‘A’ class cities: – Ahmedabad, Hyderabad, Pune & Surat.

·         Area –I Centers:- Nagpur, Kanpur, Jaipur, Lucknow, Vishakapatnam, Patna, Vadodara, Kochi, Indore, Bhopal, Ludhiana, Coimbatore, Madurai, Agra, Varanasi, Srinagar, Vijaywada, Rajkot, Faridabad, Jamshedpur, Kozhikode, Trissur, Mallapuram, Tiruvananthpuram, Kannur, Jabalpur, Nashik, Meerut, Allahabad, Ghaziabad and Asansol

 

Silver Jubilee Award to Serving Employee- (on completion of 25 years of service in the bank): Rs. 10,000/- (inclusive of GST); function expenses @ Rs. 60 per employee of branch.

Residential SFF

Scale I/ Dy. Manager	175000
Scale II	200000
Scale III	225000
Scale IV	230000 + 1 AC (upto 35000)
Scale V	260000 + 1 AC (upto 35000)
Scale VI	345000 + 1 AC (upto 35000)
Scale VII	480000 + 2 ACs (each upto 35000)
Scale VIII	600000 + 2 ACs (each upto 35000)

 

Reimbursement of Expenses towards Transportation of Personal Effects on Transfer; Min. 300 km; Two Times for Hilly area (HRMD 694/2023)

Upto 1000 km	Rs. 5.90 per tonne per km
Beyond 1000 km	Rs. 4.25 per tonne per km

 

Facility for Telephone (Landline)/ Mobile Phone (Per Month/ Excluding GST)

	Mobile Handset	Incumbent	Other	On Self Declaration
Scale I	–	1200	700 *	400
Scale II	–	1300	800 *	400
Scale III	–	1500	1000 *	400
Scale IV	5000 (BH only)	2500	2000
Scale V	15000	3500	3000
Scale VI	20000	6000	5000
Scale VII	40000	Unlimited	Unlimited
Scale VIII	50000	Unlimited	Unlimited

* Approval from CH/ DZM/ Divisional Head required

Compensation on Transfer (Lumpsum) (towards packaging, local transportation, insuring the baggage)

Scale I, II & III	Rs. 40,000
Above Scale IV	Rs. 50,000

 

Reimbursement of travelling expenses for travel on duty/ transfer by own vehicle

Type of vehicle	Rate of reimbursement per km. (Rs.)
Four wheeler – Engine capacity of 1000 cc or more	11.00
Four wheeler – Engine capacity of less than 1000 cc	9.00
Motorcycle and scooter	6.00

 

Financial Aid to the families of the employee who die while in service of the bank

Cadre	Financial Aid (Rs.)
Officer	Rs. 300000

 

Compensation to Bank Employees who are killed in Bank Robberies, Terrorist Incidents including Left Wing Extremism

Cadre	Amount (Rs.)
Officer	Rs. 20 lakhs

 

Various Other Benefits:

·         Learning Allowance: Rs.850/- pm + DA

·         Location Allowance (Non CCA Centre): Rs.1200/- pm

·         Special Allowance: 26.50% (Scale I), 28.30% (Scale II & III), 30.50% (Scale IV & V) and 31.50% (Scale VI -VIII)

·         Recovery: a) House Rent @ 0.35%, b) SFF @ 0.075%

·         Annual Encashment of PL: 5 days (7 days for officers above 55 years)

·         NPS Employer Contribution increased to 14% (out of 14%, 4% is taxable in hands of Employee)

·         Scheme for providing financial assistance to the employees having children with special needs: Rs. 30000/- p.a. (HRMD 744/2024)

·         Canteen Subsidy: Rs. 100/- per employee per month – Payment to be made to Canteen Vendor

·         Memento to the employees on Retirement and on Voluntary Retirement: Rs. 15000/- (Inclusive of GST)/ Rs. 100 per employee for organizing function.

·         Providing immediate relief to the family of the employees who die while in service (Financial support for funeral expenses): Rs. 30000/-

·         Closing Allowance: Rs.1500/- per quarter

·         Mid Academic Year Transfer Allowance: Rs. 2500/- p.m. per child with a maximum up to 2 children

 

* Above defined allowances, benefits are for PNB employees and these might be vary for different banks. Comments here if any changes.

* If you want share data of other banks please share here...