Revised LTC Rules For Bank Employees

LTA rules for PSU banks, financial firms-Times of India 06.06.2014

NEW DELHI: It may no more be possible for employees of public sector banks and financial institutions to travel from Jaipur to Delhi via Sao Paulo.

The government has issued a comprehensive set of guidelines for employees of public sector banks, financial and insurance companies and other regulatory bodies, significantly limiting their leave travel concession (LTC) claims. The notification was prompted by the widespread misuse of LTC/LTA facilities by government and public sector employees, exposed by TOI over the last year and now under CBI investigation.

Based on reports of misuse of LTC provisions in banks, PSUs and such institutions, as well as fraud by some government employees, the Central Vigilance Commission had asked the central government to revise the norms governing LTC/LTA, even as it called in CBI.

According to a detailed order issued by the finance ministry on April 30, the LTC/LTA norms of banks and other financial institutions would now onwards be governed by the same rules that cover government employees. Over the years, these financial institutions, especially banks, extended and amended the schemes to allow all sorts of claims including reimbursing foreign travels. Such revision of LTC norms is also expected for public sector units, officials said.

Taking advantage of relaxed norms, managing director of a nationalised bank claimed over Rs 6 lakh showing that he, wife and daughter went on an LTC trip from Jaipur to Delhi via Sao Paulo. The officer was only taking advantage of a provision that allowed him to claim circuitous route tickets.

The new norms notified by the government have now made it clear that travel to foreign destinations, and travel via foreign destinations, would not be allowed under LTC facility.

The reimbursement of fare should be based on actual expenditure and should not be beyond the entitled class of travel, the order says. Also, if an officer travels in a class lower than his entitled class, then his LTA would be limited to the class of travel.

Sources said the government has also tightened the rules governing payment of TA/DA to officials of these institutions. Contrary to rules governing government employees, these institutions were giving TA/DA to employees even for transit period. It has also fixed detailed guidelines for the daily allowances of various categories of officers, and the upper limit for entertainment allowance for chairman and managing directors of these institutions at $2,000 per trip.

According to sources, such regulations would be brought in for the 248 public sector unit employees too.

The CBI is presently investigating several fraud and forgery cases in the LTC scam, which was triggered by the Central Vigilance Commission reference of allegations of wrongdoings.

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