Pension to RRB employees updates - 2

On 25.6.2012, Com.D.K.Mukherjee, Secretary General, AIRRBEA wrote a letter to Ministry of finance to issue Govt.order announcing pension parity to RRB Staff. The letter exposes the plan  and indications of the Govt. It tones the observations and uncompromising  stand of AIRRBEA. It shows the way, we all have to move together with hopes. The letter is such a document!

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ALL INDIA REGIONAL RURAL BANK EMPLOYEES ASSOCIATION

Kolkotta, West Bengal

Do. Letter No.-595 

Date- 25.06.2012


To

Shi D. K. Mittal
Secretary, 
Financial Services, Ministry of Finance, 
Govt. of India

Respected Sir, 

Sub:- Pension Parity 

Let me convey our heartfelt appreciation for the new order on H.R. Policy with major positive 
amendments. 

Shri Pranab Mukherjee, Honble Finance Minister, GOI informed me on 20th June, night that he has approved the official note accepting in principle the parity of pension for RRBs staff on the same evening, as indicated by your kind self to me on the same day. Thanks for the same. 

You were kind enough to indicate that:-
1) The Department of Financial Services is considering various options to prepare the draft 
pension scheme for the RRB staff and it will be prepared within a week.
2) The draft scheme will be sent then to all the Sponsor Banks /State Govt. /RRBs for their 
observation.
3) The final pension scheme will be circulated within two months. 

You have also observed that:- 
GOI may consider payment of pension parity to the staff of profit making RRBs immediately but 
in case of loss making RRBs, pension parity may be deferred till they attain the 
profitability.

The undersigned immediately drew your kind attention to the fact that:-
Any order / scheme with discrimination for the RRB staff would instantly attract the 
attention of Honble Supreme Court which has ruled out all such discriminatory proposals 
submitted by GOI in the year 1996, 2001 & 2002 (contempt petition). So, it would be better to 
find out any other option in consultation with the Stake Holders and Apex Associations.
In fact, all the PSBs have good number of loss making branches in the country, 
particularly in the North Eastern, Eastern and Central Region. The PSBs do get the benefit of 
cross-subsidization. So they earn profit as a whole. RRBs have no scope for cross 
subsidization though the RRBs as a whole, if taken as one PSB, has been running with net 
profit of about 2,000 crores in each year for more than a decade. Even after pension 
settlement in the Banking Industry, there had been a record of good number of loss making 
PSBs in the country but that did not cause any hindrance. Reserve Funds created out of the 
profit was appropriated. 

During CBS migration in RRBs it was decided by the committee constituted by RBI that 75% of 
the installment cost would be reimbursed by Sponsor Banks and the rest 25% would the given by NABARD. The record will prove that the entire CBS migration cost, even the monthly 
operational cost being paid to Sponsor Banks, has been/being borne by the individual RRB. 
Net Income is yet to come though there was any Net Expenditure.

We are eagerly waiting for the Govt. order extending parity of pension as available 
in the Banking Industry without any discrimination since pension is a part of salary as 
defined by Supreme Court and GOI has the exclusive statutory authority to determine the 
salary structure as per section 17 of the RRB Act with due regard to direction of Honble 
Supreme Court in the year 2001 & 2002. 

With regards 
Yours faithfully 


Dilip Kumar Mukherjee
(Secretary General - AIRRBEA)