Money & Banking

Bank staff transfer ruling has to be revisited, says officers union

K Ram Kumar Mumbai | Updated on August 17, 2018 Published on February 22, 2018

To affect bank operations

The All India Bank Officers’ Association said the Central Vigilance Commission’s reported advisory to public sector banks on ‘rotational transfers’ of employees in the wake of the scam at Punjab National Bank needs to be revisited.

Underscoring that ‘recovery of bad loans’ is a thrust area for every bank at the fag end of the current financial year, S Nagarajan, General Secretary, said “This advisory is a bolt from the blue. Every transfer involves expenditure and it (transfers) punch a big hole in the balance sheets of banks.”

The trade union leader emphasised that transfers in public sector banks are normally effected in the month of April-June every year after the completion of books of accounts. In this regard, he said there is an agreement between employees unions and bank managements under the Industrial Disputes Act, 1947, in the matter of clerical transfers and Board approved transfer policy for officers.

“Due to the sudden announcement on rotation of workforce in the banking industry, an impression is being drawn as if periodical transfers are not effected at all in banks. Transfers are effected by banks every year,” said Nagarajan.

The AIBEA said the CVC has issued instructions that clerical staff and officer staff in PSBs who have completed 5 years and 3 years, respectively , as at the close of December 31, 2017, are to be transferred in the wake of the recent fraud aggregating about Rs 11,400 crore at one of PNB’s Mumbai branches.

‘It is also a matter of record that the mandatory provision/ ‘instruction’ regarding availing 10 days leave by an officer/ workman in a branch is unimplemented in almost all banks due to administrative difficulties.

“Any disturbance at the fag end of this financial year should not put the individual bank in a difficult position when the slogan of ‘loan recovery’ is gaining importance…,” said Nagarajan.

Keep PNB top management out

Meanwhile, referring to the fraud at PNB, Devidas Tuljapurkar, General Secretary, All India Bank Employees’ Association said “While we do not support wrong-doers at the lower level, impression is sought to be given that only lower level officials and staff are responsible (for the fraud).

“PNB management needs to answer as to why the branch official (who issued letters of undertaking without authorisation) was kept in the same branch/ department for so many years contrary to rules.”

Tuljapurkar said it will be prudent for the government to step in and keep out the entire top management and higher officials from the bank until the probe is completed and accountability is fixed.

Published on February 22, 2018
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