Bank Employee Warned for Ordering Pizza During Office Hours

Recently, a shocking explanation letter has been issued to a bank employee for ordering Pizza at office. The employee has been asked to reply why he ordered and ate pizza during office hours. The incident happened at Punjab Gramin Bank in Jalandhar Region.

The Letter said:

With reference to captioned subject, it has been observed that today i.e. 26-05-2025 you have ordered Pizza at 12:00 and started eating the same in office hours at your seat.

Not only it has been violation of lunch hours rules but also created indiscipline and not adhering to set rules and practice.

In view of above, you are advised to submit your reply within two days of receiving this letter, than why disciplinary action should not be initiated against you for violating rules as well as set practices of Bank.

What you think of this, do let us know in the comment section below.

Source - Hellobanker

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DA decrease for Bank Employees from May 2025

The Dearness Allowance (DA) for bank employees for the period of May 2025 to July 2025 is expected to be 19.90% based on the average CPI-IW index of 142.93 for the current quarter. This is a slight decrease compared to the 21.20% paid in the previous quarter. The calculation is based on the 12th BPS, and the DA is expected to be 20.17% from May 2025. 

Here's a more detailed breakdown:

Expected DA: 19.90%
CPI-IW Index (Base 2016=100): 142.93
Average Index for Current Quarter: 142.93
Index above 123.03 points: 19.90
DA for Previous Quarter: 21.20% 

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PSU Bank introduce new app for their Employees, is this app to track staff?

Another problem surrounds Punjab National Bank, one of India's biggest public sector banks. A new debate has emerged following the conclusion of the new transfer policy problem. 

Punjab National Bank has unveiled two new features for its staff: the PNB Aagman app for tracking attendance and a feedback system based on QR codes. The PNB Aagman app will be discussed in this post. 

This new software was released by PNB to track employees' locations and record their attendance. This implies that an employee can only record their attendance if they are present at their workplace. The app user will need to provide the app with their location in order to accomplish this. There are versions of the mobile app for iOS and Android.

PNB employees can download the app and mark attendance via this app. Everything seems to be super cool and hi-tech but the employees are not happy with it. Employees and Bank Associations have taken to social media to express their anger and grief regarding the app.

Users are protesting that the software infringes their privacy, as you can see from the tweets above. We Bankers Association claims that Punjab National Bank already uses a desktop biometric attendance marking system, so why is the bank using an app for attendance? The bank has been accused by the Association of live-tracking its workers. Workers are concerned that the software could be used to spy on them. 

The Bank Officers' Association has expressed grave worries regarding two new PNB-introduced systems: the customer feedback technique based on QR codes and the AAGMAN App for recording attendance. According to the group, these new methods cause needless stress at work and invade officers' privacy.

The app is location-based, which means it tracks where the officer is. It also seeks access to officers’ personal data, such as their contact list, phone calls, and other private information. The association pointed out that biometric attendance is already in place in the bank, which serves the same purpose. Therefore, introducing another system for attendance seems unnecessary and looks like an attempt to control the private lives of officers.

Users complain various issues with the app

1. The mobile app is not available on the Google Play Store, which is the official app store for Android. When an app is uploaded on the Google Play Store, Google checks the app and the app goes live only if it as per Google’s policies. In this case, the PNB Aagman app is not available on the Google Play Store means there might be some issue with the app.

2. The app does not seem to be working properly. When users downloaded the app for testing, the app kept on showing the message – Loading, and finally, the app crashed. This means the app has some developmental issues.

3. The app asks for various permissions, such as permissions to access phone calls, which completely violates the privacy of users. Such permissions are not needed for an attendance app. These permissions are needed to manage phone calls and contacts. Recently, Google and the Government of India have asked Citizens not to provide any permission that is irrelevant to the working of any app. This means that a camera app should not ask for phone permission, a calendar app should not ask for camera permission, and so on. So in this case, an attendance app should not ask for phone call permissions. The app is based on marking biometric via location tracking and so it should ask for location permissions only.

4. Users say that the bank has already implemented biometric attendance in desktops and the system is working flawlessly. When one system of attendance marking is working properly then why bank is spending money on mobile apps? Instead, this money should be utilised in the betterment of the existing system. The development and maintenance of mobile apps require a lot of funds and these could have been used to make the existing biometric system better.

Meanwhile, PNB Management is working hard to revamp the bank and improve customer service. What happens next – let’s see – whether the app will be implemented or not. What are your thoughts? Tell us in the comment section below.

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BOI to Absorb Full Perquisites Tax After FBOIOA’s effort

 In a major relief for its employees, the Bank of India (BOI) has decided to absorb 100% of the perquisites tax liability arising from concessional and interest-free loans provided to staff members. The move comes after persistent efforts by the Federation of Bank of India Officers' Association (FBOIOA).

Bank of India absorbs full perquisites tax after Federation of Bank of India Officers’ Association’ s push. Relief granted, setting a strong precedent for employees rights advocacy.

The decision is set to benefit nearly 53,000 BOI employees, offering much-needed financial relief.

The Federation of Bank of India Officers’ Association (FBOIOA) played a decisive role in ensuring this breakthrough, spearheading relentless negotiations and sustained advocacy. Over three months of persistent representations and high-level dialogues, the association successfully convinced the management to implement this employee-friendly decision, shielding the workforce from an unexpected financial burden.

In an exclusive conversation with Nilesh Pawar, General Secretary of FBOIOA, lauded the move, stating, “The decision to completely absorb the perquisites tax liability is a significant boost to employee dignity and financial security.” 

Highlighting the urgency of the demand and its resolution, he added, “The tax deductions, which began in January 2025, drastically reduced salaries, leaving employees with nominal pay—sometimes as low as a few hundred or thousand rupees. This triggered widespread distress. To counter the impact, FBOIOA launched ‘Sahayya,’ a special interest free advance of Rs 50,000 offering immediate relief to affected officers.”

According to FBOIOA, over 1,400 officers received less than ₹20,000 as salary for February 2025, with some even facing nil salary credits after tax deductions—causing severe financial distress.

Bank of India is now the fourth Public Sector Bank to fully absorb the perquisites tax, following State Bank of India, Union Bank of India, and Bank of Baroda. In contrast, Punjab National Bank opted to bear only 50% of the liability.

Bank of India's decision follows sustained efforts by FBOIOA to address the tax burden on employees, aligning with similar measures taken by other public sector banks.

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FBOIOA launches ‘Sahayya’ scheme to provide interest-free financial assistance to officers

 

A unique relief program called "FBOIOA Sahayya" has been launched by the Federation of Bank of India Officers' Associations (FBOIOA) to provide interest-free financial aid to officers who have had their salaries drastically reduced as a result of perquisite tax deductions. The program's goal is to give officers who had significant tax deductions in February 2025 and whose net salary was less than Rs.20,000 instant financial support.

Public sector banks have recently started taxing the perks that officers are provided. Benefits offered to bank employees include low-interest loans. For instance, the average person's car loan interest rate is 9%. Bank employees receive a 5.5% loan rate.

Because bank employees pay low interest rates, they can save money on loans, which is considered advantageous. Bank workers are now required to pay taxes on this perquisite. This indicates that tax will be paid on the amount that differs because of the different interest rates. If the general public pays Rs. 1000 in interest on a car loan while bank employees pay Rs. 700, the bank employees must pay tax on the Rs. 300 difference.

Financial distress resulted from the Bank of India's officers receiving drastically reduced or no pay in February 2025. Nearly 1,400 officers reportedly have net salary credits of less than Rs. 20,000 as a result of high tax deductions applied by the bank.

In response, the FBOIOA has been negotiating with bank management to find a long-term solution. However, to offer immediate relief, the federation has launched this interest-free advance scheme for affected officers.

Who is eligible for the scheme?

To apply for financial assistance under the Sahayya scheme, an officer must meet the following criteria:

* Must be an active FBOIOA member.

* Net salary for February 2025 should be below Rs.20,000, primarily due to perquisite tax deductions.

* Application process and required documents

* Eligible officers need to submit an application form (Annexure-1) through their Unit General Secretary along with the following documents:

1. A copy of the February 2025 salary slip showing a net salary below Rs.20,000.

2. Five post-dated cheques (PDCs) of Rs.10,000 each, drawn in favor of the respective unit.

Deadline for application submission: March 7, 2025.

Disbursement and repayment of financial assistance

Under the FBOIOA Sahayya scheme, officers will receive ₹50,000 as an interest-free financial advance, which will be disbursed in two equal installments:

Rs.25,000 as the first installment upon approval of the application.

Rs.25,000 as the second installment in the following month.

The repayment will begin from May 2025, with officers required to repay the total amount in five equal monthly installments of Rs.10,000 each.

Federation’s commitment to officer welfare

The FBOIOA has assured officers that discussions with bank management are ongoing to prevent such financial distress in the future. While the Sahayya scheme serves as a short-term relief measure, the federation remains committed to finding a long-term solution for perquisite tax deductions affecting officers’ salaries.

Officers facing financial difficulties are encouraged to apply for the scheme before March 7, 2025, to avail of this support.

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DA increased for Bank Employees and Pensioners from Feb-2025, Complete Chart

On the basis of CPI data announced by the Govt for the months of Oct'24 to Dec'254 DA payable for the period Feb'25 to Apr'25 is 21.20% as per 12th BPS.

 

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This PSU bank introduced objective performance appraisal system for Employees

 

Over the next three years, Indian Bank, a well-known public sector lender, intends to open 300 additional branches to increase the size of its branch network. The bank will be present in every district headquarters nationwide thanks to this development. 

To improve its competitiveness and strengthen its leadership pipeline, the bank is also starting a leadership development program that will train some 400 staff. The strategy for branch expansion Indian Bank's Managing Director and CEO, Binod Kumar, stated that the bank's top goal is branch expansion. 

We have opened 70 to 80 branches during the past two to three years. With the goal of opening 300 new branches during the next three years, we now intend to greatly grow our network," Kumar stated.

The bank intends to apply a cluster-based model, increase its presence in current sites, and concentrate on developing towns. The plan calls for opening branches in agribusiness clusters, MSME (Micro, Small, and Medium Enterprises), and expanding urban regions. The bank's long-term goal is to open a branch in each of the major district headquarters. 

Pay Attention to Employee Satisfaction The bank's growth plan heavily relies on employee satisfaction. Kumar underlined the significance of enhancing productivity through employee-centric initiatives and keeping top personnel. 

To better identify and reward strong performers, Indian Bank has implemented a more objective performance appraisal system. Kumar clarified, "This will help us distinguish between high performers and non-performers, thus motivating top talent."

Indian Bank has selected 400 staff members to participate in a year-long training program as part of its endeavors to develop a strong leadership team. Through project-based learning, classroom instruction, on-site training, and private coaching, the curriculum will concentrate on fostering managerial and strategic skills. 

In addition to bolstering efforts in compliance, IT, HR, and cybersecurity, the objective is to develop a strong pool of leaders capable of propelling corporate expansion. 

"Our leadership development programs will guarantee qualitative improvements in a number of operational areas in addition to boosting business growth," Kumar stated. 

Enhancing Resource Acquisition and CASA Indian Bank is concentrating on improving its Current Account Savings Account (CASA) percentage in addition to growing its branch network and leadership team.

The bank aims to increase its CASA ratio from 40% to 42%, despite the challenges in deposit mobilisation. To achieve this, the bank has expanded its Resource Acquisition Centers (RACs), opening 100 last year, with plans to open 25 more. 

The bank has also set up Resource and Government Relationship (R&G) Centers to improve relationships with government departments and offer banking solutions beyond account openings.

“CASA growth depends on customer satisfaction, convenience, and efficiency,” Kumar concluded, highlighting the importance of meeting customer expectations to drive deposit growth.

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High Court Orders BOI to Pay Dues to Employee Following Compulsory Retirement

 

An employee who is given mandatory retirement in contravention of the law and then reinstated will be eligible to receive full pay and other benefits for the time they were out of work, according to a division bench of the Madhya Pradesh High Court. 

This verdict followed the Bank of India's (BOI) appeal of a single-judge decision that mandated the bank reimburse an employee for the time he was unemployed owing to mandatory retirement. 

Narmada Prasad Chaudhary, who began working for the Bank of India in July 1974, is at issue in this case. He was prematurely retired from his job by the bank in January 2002. In the High Court, Chaudhary contested the ruling and prevailed.

The Supreme Court upheld the High Court's verdict after the bank appealed the decision there. Chaudhary was consequently given his position back in September 2009.

 However, the bank failed to factor in the more than seven years he was unemployed as a result of the mandatory retirement when determining his post-retirement compensation. 

The computation of his pay and retirement benefits was impacted by this omission.

Chaudhary then filed an appeal with the High Court once more. A one-judge panel decided in his favor in this matter, directing the bank to reimburse him for his lost income, perks from his promotion, and other obligations during his leave of absence. 

This verdict was contested by the bank management, and a division bench heard the case. Chief Justice SK Kait and Justice Vivek Jain led the division bench, which affirmed the ruling of the lower court. 

During Chaudhary's forced retirement, they mandated that the Bank of India give him his full salary, benefits from his promotion, and other entitlements. Additionally, the bank was ordered by the court to pay him 8% interest on the amount owing.

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