Banking

One Rank One Pension for retired Public Sector Bank employees: Here’s what Modi govt says on OROP question

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One Rank One Pension for Public Sector Bank Employees: The Central government has denied considering any proposal for the implementation of ‘One Rank One Pension’ for retired employees of Public Sector Banks (PSB). Union Minister of State for Finance, Anurag Thakur said this in the Lok Sabha in response to a question on whether the Government proposes to implement the One Rank One Pension principle for the retired PSBs‘ employees.

“No proposal regarding implementation of One Rank One Pension is currently under consideration of the Government,” said Thakur.

On the question of whether the Government proposes to issue administrative instructions to the Indian Banks Association to update the pension of retired employees of the Public Sector Banks (PSBs), Thakur said in his written reply that the pension of pensioners of nationalised banks is financed by the respective bank out of its commercially generated revenues.

“Such pension was introduced as a funded scheme on the basis of consensus arrived at between bank employee unions/associations and the Indian Banks’ Association (IBA), which negotiated on behalf of participating banks. The Boards of the respective nationalised bank accordingly made Employees’ Pension Regulations in exercise of their powers under section 19 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980.”

Thakur also said that IBA has recently (on 25.1.2021) recommended that family pension be improved to 30% for all employees without any cap, and the said recommendation is under consideration of the Government.

The above questions were asked by MP Lavu Sri Krishna Devarayalu.

Five days week in banks

In response to another question, Thakur said the government is not currently considering any proposal to let the banks open only for five days in a week. Currently, banks are open for six days a week. Only the second and fourth Saturdays of every month are holidays for banks.

MP S Venkatesan had asked the question on five days week for banks. “Whether five days week in the banking industry will be implemented as existing in analogous institutions…”

In his written reply, the minister said: “In exercise of the powers conferred by section 25 of the Negotiable Instruments Act, 1881, Government vide notification dated 20.8.2015 had declared the second and the fourth Saturdays of every month as public holiday for banks in India. No change in the same is currently under active consideration of the Government.”

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