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...

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