Protest Against Suspension of Bank Officers

DEMAND FOR REVOCATION OF SUSPENSION BY “A I B O A ”

ALL INDIA BANK OFFICERS' ASSOCIATION

MIN:RBI:42:2013

May 15, 2013

Hon’ble Finance Minister

Govt. of India

North Block

NEW DELHI

Sir,

REG: Unwarranted harassment to Bank Officers working in Public Sector Banks – Demand for revocation of suspension.

Our dear nation is embroiled with lot of contradictory stand points in Good governance in the matter of involving Public Sector Units as well as probity in Public life of men who are considered as “Brand Ambassadors” of the Institution or the Office they represent.

2. In that exercise , Public Sector Banks are considered as Nation building instruments and by its performance during the period of more than four decades excelled exceedingly well. It is not an exaggeration that our Public Sector Banks have proved to the hilt that our Banking System stood the test of the times during the downturn economic recession (2008) in the financial activities across the Globe.

3. The basic functioning of “Brick and Mortar” banking was purely of “Vanilla Banking” . Due to various steps taken by the controller as well as owner of the Banking system, today. Banking institution are compelled to branch out to, transact the business to sell Insurance products as well as mutual funds. The core of the banking business relates to taking the deposits and lending the same to prospective borrowers. Due to the diversified activities, the core business gets diverted, diluted and therefore suffers a lot.

4. Keeping an eye on the target to be achieved, the Branch managers have to acquire the business of bulk deposits and no person who is to deposit money in bulk ever accepts the “Card Rate” or normal rate on deposits. Transactions of above one crore, are being referred to the higher committee of the Bank before accepting the same as deposit as higher rates are cleared by the committees only.

5. Over an amount of Rs, 50,000 if accepted to be deposited, the “PAN” number of the depositor is duly obtained at the counter itself. Rs. 10 lacs or above cash transactions are immediately reported to higher authority for onward transmission to controlling authority of the individual bank. While opening an account, proof of residence ( through various documents) and “photo identity” are duly insisted upon by the front office staff thus establishing scrupulous governance of KYC norms.

6. Government of India has promoted the idea of financial counseling in the matter of filing up of Tax Returns now a days. A branch manager is also to provide suggestion to acquire the business as the customer expects” one stop-shop” exercise including on tax deduction to the customer.

7. Owing to the sting operations by an external agency and the paper reports reveal that the Finance Secretary Shri Rajiv Takru has advised to suspend the employees pending investigations. The direction given by the Finance Secretary has created sufficient suffocation in the minds of the Officers Community as the instructions are directly damaging the sagging morale of the Bank Officers serving the Banks.

While our organization stands for observing all rules and norms in strict sense as per the requirement of law by the Bank Officers, equally urges upon you to review the decision of placing the Officers under suspension . Instead of inflicting such a scar on the individual as well as Banking community, it is suggested that the officers can be placed in an innocuous position till the matters are thoroughly investigated internally as well as by the controller. A banker cannot have a “hawk eye” approach on customer but for an extraordinary deviation from the laid down procedure.

Expecting a prompt action.

Yours faithfully

/S NAGARAJAN/

GENERAL SECRETARY

CC :

1.The Finance Secretary, DFS, Finance Ministry GOI, New Delhi.

2. Chairman & Managing Director, All Public Sector Banks.