The Hindu Business Line : RBI staff to go on protest leave on October 21

Mumbai, Oct. 16 The Reserve Bank of India officers and employees have decided to go on a day’s casual leave on October 21. This could create a problem for the payments system (RTGS). But the RBI usually ensures that this does not happen.

The United Forum of Reserve Bank Officers and Employees is up in arms because of a decision that, according to it, has been forced on the RBI by the Government. The present Governor was the Finance Secretary at the time. The Circular was issued on October 10 by the RBI.

When implemented, it will mean that RBI pensions may not be revised whenever there is a pay revision. Such pay revision takes place every five years. At present, the non-updation applies only to those who retired before November 1997.

Union sources said, “it is their turn today, it could be ours tomorrow.”

The RBI has a little over 22,000 employees. About 20,000 of them have opted for the pension and the rest have opted for the contributory provident fund scheme.

The proposed change is in contrast to the practice followed for government employees. Their pensions are revised after each pay revision.

The RBI was obliged to accept this change because the government asked Nabard why its pensions should be revised after every pay revision. Nabard replied that it only followed RBI practice (as it was set up by the RBI and the same service rules had been mandated). So the government decided to take away the benefit from the RBI as well.

The Forum has demanded that pensions be updated after every pay revision, grant of family pension at the rate of 30 per cent without a ceiling, commutation at an enhanced rate, and the reopening of the pension option to those who had not opted for it.

The RBI top management was unavailable for comment because of the central Board meeting in Goa.

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