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...

Government plans to sale stake in five PSU banks

A Rs.10,000 crore fund-raising plan for five state-run institutions via the Qualified Institutional Placement (QIP) route has been approved by the government.



According to sources, four additional lenders—Punjab & Sind Bank, Indian Overseas Bank, UCO Bank, and Central Bank of India—have been given permission to raise money in addition to the Bank of Maharashtra. According to the sources, these lenders may begin raising money in tiny installments as early as the fourth quarter of the 2025 fiscal year.

"The Department of Disinvestment and Public Asset Management (DIPAM) has also been mandated to sell a stake in these lenders through the Offer For Sale (OFS) route," the sources noted.



By August 2026, the government hopes to have a minimum of 25% of these PSU banks' shares held by the general people. The Department of Financial Services has administrative authority for state-run lenders.



According to the most recent shareholding pattern on the BSE, the government owns 79.6% of Bank of Maharashtra, 98.25% of Punjab & Sind Bank, 96.38% of Indian Overseas Bank, 95.39% of UCO Bank, and 93.08% of Central Bank of India as of the end of the December quarter.Based on the current share price, the excess government stake in these five lenders stands at nearly Rs.50,000 crore.

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AIBOC Announced Nationwide Bank Strike

In a significant move to address pressing challenges faced by the banking sector and its members, the All India Bank Officers’ Confederation (AIBOC) has announced a two-day nationwide strike, tentatively scheduled for February 24 and 25, 2025. This decision was finalized during the 102nd Executive Committee Meeting held on January 6, 2025, via a virtual platform.

Key Demands Raised by AIBOC

• Adequate Recruitment: Address the shortage of staff across all cadres in banks.
• Five-Day Work Week: Implement a five-day work week for the banking industry.
• Withdrawal of DFS Directives: Demand the immediate withdrawal of the Department of Financial Services (DFS) directives on performance reviews and the Performance Linked Incentive (PLI) scheme, which threaten job security, create divisions among employees, and undermine the autonomy of public sector banks (PSBs).
• Safety of Bank Staff: Ensure protection for bank officers and staff against customer assaults and abuses.
• Fill Vacant Posts: Expedite the appointment of workmen and officer directors in PSBs.
• Resolution of Pending Issues: Resolve residual issues with the Indian Banks’ Association (IBA).
• Amend the Gratuity Act: Increase the gratuity ceiling to ₹25 lakhs, similar to government employees’ schemes, and provide income tax exemptions.

Issues Opposed by AIBOC

• Micromanagement of PSBs: Stop undue interference by the DFS in policy matters, which undermines the autonomy of PSB boards.
• Unfair Labour Practices: End discriminatory and exploitative practices in the banking industry.

The executive committee has proposed to initiate agitation programs immediately after serving the strike notice later this month. Detailed schedules will be shared with all state units and affiliates.

AIBOC leaders have urged all affiliates to prepare for the upcoming struggle by conducting meetings at all levels to communicate the resolutions. Members are encouraged to organize grassroots-level engagements at district and branch levels to strengthen unity and foster commitment to the movement.

Addressing members, AIBOC leaders said, “The path ahead is challenging, but our collective strength and solidarity will guide us. History has shown that we can overcome adversity through unity and determination. Together, we will safeguard our legitimate rights and uphold the integrity of the banking sector.”

The banking fraternity is now gearing up for a significant battle to ensure justice and fairness for employees while protecting the sector’s autonomy and stability. Further updates will follow as the agitation programs unfold.

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Bank of India(BOI) Employee commits Suicide in Hyderabad Due to Work Pressure

 

A 32-year-old bank employee named Koti Satya Lavanya reportedly committed herself at her Bachupally home on Thursday, causing a tragic incidence to occur in the city. It is thought that Lavanya, who was an Assistant Manager at the Rajeev Gandhi Nagar branch of a public sector bank, committed suicide as a result of stress at work.

Lavanya left work early on Thursday afternoon and went back to her flat in Harithavanam Colony, the police said. She reportedly made an attempt at suicide on the terrace of her building shortly after. She was transported to a local hospital by neighbors who saw the tragedy, but they were unable to save her life when they arrived.

Lavanya, an Andhra Pradesh native from Pithapuram, had been married for five years to Bathula Veeramohan, an IT specialist. During the Sankranti festival, the couple, who lived at M.N. Residency at KCR Colony, Bachupally, had planned to travel back to their village.

According to her family and relatives, Lavanya had voiced worries about the pressure she was under at work at the bank. She had repeatedly talked about her incapacity to handle work-related stress, according to her uncle's police complaint.

According to the inspector of the Bachupally police station, a case has been filed and an inquiry is being conducted to determine the precise circumstances surrounding her death. Statements from her friends, relatives, and coworkers are being recorded. Her remains have been sent for post-mortem analysis.

This incident has once again highlighted the mental health challenges faced by employees in high-pressure environments. Authorities and organizations are being urged to take proactive steps to address work-related stress and provide support to employees. For anyone experiencing emotional distress, helplines and support networks are available to provide assistance.

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Canara Bank staff commits suicide in Fazilka, Case Filed against Bank Manager

 

Following the untimely death of a local man named Inderjeet Singh, who had been employed by Canara Bank's Fazilka branch for the last seven to eight years, a bank manager has been charged with aiding and abetting suicide.

When Seema Rani, Inderjeet's wife and a Gandhi Nagar resident, filed a complaint with the Fazilka City Police, the incident became public knowledge. She claims that after being repeatedly humiliated by the bank manager, her husband committed himself on January 4.

Read More - Bank of India(BOI) Employee commits Suicide in Hyderabad Due to Work Pressure

According to Seema Rani's statement, Inderjeet told her about the alleged harassment. According to reports, he informed her that the manager had been disparaging him in front of other employees for a number of days. She alleged that the constant humiliation pushed him to consume a poisonous substance that ultimately claimed his life.

Acting on the complaint, the police have registered a case against the bank manager under Section 306 of the Indian Penal Code (IPC), which pertains to abetment of suicide. SHO Lekh Raj of the City Police Station confirmed that an investigation is underway to determine the exact circumstances leading to Inderjeet’s death.

Inderjeet Singh’s grieving family has called for strict action against the accused manager and demanded justice for their loss. Meanwhile, the police continue to probe the matter to ascertain whether workplace harassment played a role in this tragic incident.

The case underscores the importance of addressing workplace stress and ensuring a supportive and respectful environment to prevent such devastating outcomes.

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Govt launched New e-Auction Portal ‘Baanknet’ for PSU Banks

Shri M. Nagaraju, Secretary of the Department of Financial Services (DFS) under the Ministry of Finance, launched the redesigned e-auction portal "Baanknet" in New Delhi in a major step to improve the effectiveness of real estate auctions.

The event was attended by key figures from the financial sector, including the Chairpersons of Debt Recovery Appellate Tribunals, Presiding Officers of Debt Recovery Tribunals, Managing Directors and CEOs of Public Sector Banks (PSBs), the Deputy CEO of the Indian Bank Association, senior executives from PSB Alliance Ltd., and senior officers from the DFS.Bank. 

The new portal gives buyers and investors a one-stop shop by compiling e-auction listings from all PSBs. In addition to commercial buildings, industrial property, shops, vehicles, machinery, and agricultural and non-agricultural land, it provides a wide range of assets, such as residential properties such as apartments, independent homes, and plots. The portal streamlines the auction process and makes it simpler for prospective purchasers to locate and attend auctions by compiling all of these facts in one location.

Shri Nagaraju emphasized that the introduction of this platform will be essential to enhancing PSB recovery. Consequently, banks' balance sheets would be strengthened and more credit would be available to both individuals and businesses.  He emphasized that the collaboration between PSBs, the Insolvency and Bankruptcy Board of India (IBBI), and Debt Recovery Tribunals (DRTs) is vital for the success of this initiative.

“The platform is expected to boost investor confidence and improve the economic environment by unlocking the value of distressed assets,” Shri Nagaraju said. He added that the use of technology would make the process more transparent, efficient, and accessible.

The new Baanknet portal comes with several enhanced features, including:

- A seamless user experience, combining the entire pre-auction, auction, and post-auction processes in one platform.

- An automated and integrated payment gateway and Know Your Customer (KYC) tools.

- A microservices-based architecture with open APIs for third-party integration.

- A dashboard feature for ‘Spend Analytics’ and various ‘MIS Reports’ available at the click of a button.

- A dedicated helpdesk and call center with a callback request facility for users.

To ensure effective use of the portal, the DFS has already trained executives from all PSBs and Recovery Officers in DRTs on the portal’s features. Over 1,22,500 properties have already been migrated to the new portal for auction, signaling a strong start for the platform.

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