The Finance Ministry has asked public sector banks to begin negotiations for the next round of wage revision for employees, due from November 1, 2022.

The Finance Ministry has asked public sector banks to begin negotiations for the next round of wage revision for employees, due from November 1, 2022.

Subject: Polity

Section: National Organisation

Context: Wage revision in PSU banks has always been a tedious and time-consuming process with bank managements and unions engaging in tough negotiations. Department of Financial Service has asked public sector banks to begin negotiations for the next round of wage revision for employees, due from November 1, 2022.

In July 2020, around 8.5lakh bank employees got a 15 per cent increase in their salary packages with the Indian Banks’ Association (IBA) – the apex body of banks – and the United Forum of Bank Unions (UBFU) signing a Memorandum of understanding to settle the three year long contentious issue of wage revision. The wage revision, which cost banks around Rs 7900 crore, was effective from November 1, 2017.

Indian Banks` Association (IBA) has been receiving a number of communications from bank customers, members of the public, bank employees and bank retirees conveying their grievances against banks/ making enquiries/ seeking information about banks.

IBA wishes to clarify in this regard that IBA is:

An association of banks and other entities in the banking ecosystem in India catering to its members

It is Neither a Governmental entity nor a Regulatory Authority;

It is Not amenable to Writ Jurisdiction of Courts; an

It is Not subject to the RTI Act

About the DFS

• The Department of Financial Services covers Banks, Insurance, and Financial Services provided by various government agencies and private corporations.
• It also covers pension reforms and Industrial Finance and Micro, Small and Medium Enterprise. It started the Pradhan Mantri Jan Dhan Yojana.
• PFRDA, Pension Fund Regulatory and Development Authority (PFRDA) is a statutory body which also works under this department.
• The major Acts administered by the DFS that are being considered for rationalisation of compliances are: the Reserve Bank of India (RBI) Act, 1934; the Banking Regulation (BR) Act, 1949; the Insurance Regulatory and Development Authority of India (IRDAI) Act, 1999; the Insurance Act, 1938; the Credit Information Companies (Regulation) Act, 2005; and the National Housing Bank (NHB) Act, 1987.