M B N RAO Chairman IBA- Second Letter

C N Venugopalan
Ex- Manager, Union Bank of India

“ Nandanam”
Kesari Junction
North Paravoor
Kerala – 683 513
Phone No. 0484 2447994 Mobile: 9447747994

PEN IBA :124
31st October, 2007

The Chairman,

Indian Banks Association,
For Personal Attention of Shri M B N Rao
Mumbai



Dear Sir,


This has reference to my letter dated 14th September, 2007 captioned “Be on terra firma, Bankers” I sent to you, the reply of which is still awaited. It appears that you have nothing to contradict on any of the observations I made in it pervasively on the pension related issues in Banks. Banks still have to cultivate a good and rich tradition of establishing fairness in all areas of operation and to set a model before other segments of business and industry in tandem with the rich tradition of the country.

I have to be a spokesman of the retired people more than of those now working and hence I stress the need for extending Pension benefit to all who have gone out through VRS and other schemes. When one section that went out through VRS is getting Pension, the left out people who have made the same contribution to the industry ought to be treated on par. It is not the modus of exit, but the qualifying service stipulated as per the Pension Regulations that matters. Any corrigendum action without containing the element of jurisprudence to the full extent will be a lame action that will perpetuate injustice again.

It appears that the industry is seized of the need for extending a second option by extending the scheme in its original form to those who did not exercise the option on account of the existence of the deleted clause (relating to forfeiture of past service for participation in strike). If so there is no point in dilly-dallying the matter by examining the actuarial aspects. Banks will become richer, morally and financially as can be judged from the fantastic working results, individual units are making now. As I said earlier, implementation of the scheme will not cost anything more to the industry and the expenditure can be contained within the level of expenditure obtaining in 1995. What is required is only a positive approach to the issue.

I trust, the matter is amply clarified. I expect to hear from you a line in reply, in case you do not concur fully with any of my observations.

Thanking You,

Yours faithfully,



C N Venugopalan