Monday 24 April 2017

PENSION TO REGIONAL RURAL BANK’s RETIRED EMPLOYEES

Predicament  of  Retired employees of Regional Rural Bank  is started due to  the legal  fight  between  legal father ( Government ) and  obedient  son( Employees of RRBS). The  hardships and  legal piteous  state  of  the  retired  employees  of   Regional Rural  Banks  (popularly known as Gramin Banks)  and their  family  members  is increasing  due  to  the denial  of  pension  to  this  section  of  employees.  The fact is that on 30.04.90, NIT, constituted with the consent of  then  GOI has awarded salary at par with com banks which is implemented in Gramin Banks but pension alike sponsor bank is not implemented thus deliberately it is d-linked . Now 1.34 lacs of Gramin Bank staffs  appealing pension matter to resolve.

 The  RRB's  were  established  by  GOI  as  per RRB  Act in 1976. The  employees  recruited  at  the  beginning of  the  Banks  began  to  retire  in  the  last  two  decades  in  large  numbers. They  along  with  their  family members  are  in  dire  straits  due  to  lack of  an  appropriate  income  after  retirement.  The  mounting  health problems  in  old  age  rendered  them  helpless  for  seeking  further  employment. A  good  number  of  them has  succumbed  to  health  problems  and  they  are  no  more  in  this  world.. While  all  the Govt .Employees ,public  sector  employees  and  bank  employees  in  public  sector  and  private  sector  who  had  worked  in  the  same  economic  sphere  were  paid  pension,  the  inexplicable  hardships  faced  by  this  section  of employees  were  not  considered  in spite  of  appeals  made  before  all  authorities.

 Consequent  upon  the  appeals  made  by  employees  the  Division  Benches  of  Honourable  Karnataka  High  Court &  Rajasthan High  Court  in  2011  & 2012  respectively,  directed   to  implement  a  pension  scheme  at par  with  the  pension  schemes  of  commercial  banks. Nevertheless  GOI  choose  to  file  an  SLP no. 39288/2012   against   this  judgement  in  the  Honourable  Supreme  Court,  causing  much  heartburn  to  the employees. 80% rural development programs of govt of India are being implemented via Gramin Banks even maximum nos of Hon-Modi’s dream project of Jan-Dhan -Yojna a/cs are covered by Gramin Banks. For Gramin Bank staff pension is  not a luxury but means for survival  this  right  to  live  is  restraint  by  the  govt  by  filing  SLP  CIVI-39288  in  the  supreme court ,  thus  pension  is  right of RRBs employees  & in not allowing this to RRB staff govt is violating the human rights of RRB staff.

 On  hearing  the  petition  several  time  the  Honourable  Supreme  Court   directed  GOI to reach an  amicable  settlement  in  their  interim  order  dated   26.11.2014. It is  understood   that  an  affidavit  is  filed by  GOI  on  10.07.2015  agreeing  in  principle  for  payment  of  pension  to  employees,  but  in  practice  the conditions   imposed  are  so  restrictive  in  nature,  that   the  pension  cannot  be  paid  by  the  entire    56 RRB's   barring  one  or   two   RRB's   which  can   comply  with  the  rigorous  stipulations   of   capital  adequacy  and  profitability.

 The  RRB,s  were  designed  to  cater  to  the  needs  of  rural  people  and  rural  development.  They  were  the implementing   agencies  of  poverty   alleviation   programmes   of   GOI  like  IRDP,  SFDA,  20 point programme,  MGNREGS etc.  As  the  Banks   branches  were  situated  in   the   remote   villages   of   the country,   they  became  the  sole  agencies  for  implementing  these  programmes.  The  RRB,s  were  in  the forefront  for  implementing  social  security  programmes  of  PMJJBY ,PMSBY,PMJDY etc. The   statistics   with RBI  will  reveal  that  a  major  chunk  of  pro -poor  programmes   were  implemented  by  RRB's.   It  will  be cruel  to  expect  huge  profit  from  Institutions  implementing  these  pro-poor   programmes   in  large  volume  in   rural  areas. Where  as  GOI  in  their  affidavit  had  linked   payment  of  pension  with  capital  adequacy  and   profitability   without  addressing   the   lacunas   pointed   out   as  above.  Moreover  the  Honourable Supreme  Court  has  reiterated  in  several  judgements  that  the  pension  has  to  be  treated  as    deferred wages  and  the  capacity  to  pay  should  not  be  an  impediment  to  pay  pension.  In  the  affidavit  filed  a condition  is  imposed  for  30%  contributions  from   employees  towards  pension   corpus   fund   where  as  in commercial  banks  no  such  contributions  were  demanded   when  pension   scheme  were   introduced  for  the  first  time. The  Banks  were  contributing  10 %  of  pay  towards  CPF  before  implementing  pension  and  it  was  appropriated  to  pension  corpus.  In RRB's  the  contributions  by   the  Banks  were  limited  to  Rs.650 per  month  even  when  the  pay  is  Rs.65000 per  month  on  an  average,, thus  making  only  below  1%  of the  pay  as  employers  contributions  to CPF ,as  the  employees  were  covered  under  EPFO. Though  this anomaly   was   recommended  for  removal  as  early  as  in  1992  by  Gupta  committee  appointed   by  GOI,  this  was  not  implemented . 
  
It  is  unfortunate  that  GOI  demands  a  share  from  employees  to   enable  them  to  pay  pension   before  the Banks  were  asked  to  make  up  the  legally  obligatory  contribution  of  10 %  of  pay  to  their   CPF  of  the employees   for  the  period  they  have  worked .If  this  is  worked  out  and  implemented,  this  itself  will  be sufficient  for  making  the  pension  corpus  fund. The  employees  who  have  retired  will  not  be  able  to contribute  this  alarming  sum  to  have  pension,  as    many  of  them  might   have  used  up  their  savings  by this  time.  So  the  Govt  should   take  a  decision  to  implement  pension  scheme  in  RRB's  at   par with pension   schemes  of  commercial  banks , in  order   to  mitigate  the  agonies  of   the  retired  employees  of these  banks  as  well  as  their  family  members.  It is known  to  all  that  delayed  justice  is  denied  justice  and   the  affected   persons  were  senior citizens of the country  and  they were  waiting  for  the  last  two decades  hoping  for  a    honourable pension. Out of them more than 4000 have already left this world due to financial problem. Now  the  supreme  court  of  India  adjourned  the  date of hearing  of the case  till   second  week of July and so on and at last on 25 th April 2018 the Supreme court of India has given her verdict in favour of retirees of regional rural bank. SC orders the government of India to implement pension scheme at par commercial banks within 90 days. But the government of India fails to implement pension scheme within stipulated days,  for which retirees are are compelled to lodge contempt case   on 7 th September, 2018. Now the fate of poor retirees depend upon the Supreme court again.

We observe that in a democratic country like our India government should not behave just like a criminal person and the govt should not let their moral duty in such a way up to judicial department of the country. The government should not forget her moral duty to protect the interest of senior citizens. 
N. B. Edited the article on 10/09/2018

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10 comments:

  1. dear mr JUGAL CHANDRA BORAH, rightly & precisely presented RRB pension matter ,thanks

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  2. The pension issue of RRB. emplyees has been very briefly , lucidly & precisly presented. Thank you mr Jugal chandra Borah.

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    1. The pension issue of RRB employees has been prensented in true & realistic way.Thanks to Shuklaji.

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