12th BPS A Mixed Bag for Bankers: '5-Days Banking' Still Hanging; What’s In Store?

The signing of the 12th bipartite settlement (BPS) and 9th joint note on 8 March, 2024, between the Indian Banks' Association (IBA) and the United Forum of Bank Unions (UFBU) marks a significant event in the realm of banking in India. The 12th BPS entails a crucial wage revision for both bank employees and officers, incorporating increments and loading factors as mentioned in the MoU signed on 7 December 2023. Its ramifications extend far and wide across the banking sector, impacting the lives and livelihoods of countless bankers throughout the country.

Much Awaited Decision on 5-Days Banking – Still Pending

Despite the signing of the 12th BPS, the long-awaited decision on implementing 5-days banking remains in limbo. The Department of Financial Services (DFS) or the Ministry of Finance (MoF) has yet to render a final order on this matter. Notably, the joint note includes a provision stipulating that the demand for 5-days banking will be implemented contingent upon government approval. 

P M Balachandra, President of the All India Bank Officers' Confederation (AIBOC), welcomed the 12th Bipartite Settlement and joint note, considering it a fair deal for bankers. "The only major pending demand is '5-days banking'," he stated, emphasising its mention in the joint note, contingent upon government approval. Balachandra expressed optimism that this demand would soon be realised, possibly after the Lok Sabha elections. He noted, "There are certain formalities to be completed towards this big decision."

Balachandra also underscored the significance of the stagnation increment formula for executives as a major achievement of the 12th BPS. He highlighted that Scale IV officers and above, facing limited promotion opportunities, would benefit from the provision of a stagnation increment.

(General Secretary of All India Punjab National Bank Officers Federation took to platform X to express his discontent along with a screenshot from the joint note.)

Bankers Express Discontent on Social Media

In response to the delay in deciding on 5-days banking, bankers have taken to social media platforms to express their frustration. Many have urged the UFBU not to finalise the BPS without receiving a conclusive decision from the government regarding 5-days banking. Screenshots of tweets reflect the growing discontent and impatience among bankers awaiting a resolution.

(X post from All India Ex-Servicemen Bank Employees Federation- Uttar Pradesh regarding their protest demonstration against signing of 12th BPS.)

Additional Duties and Responsibilities for Clerical Cadre

The proposal to introduce a provision to assign additional duties and responsibilities and increased passing powers for the clerical cadre had sparked outrage after the cost sheet for the 12th BPS was signed. Amidst the last round of negotiations, certain amendments were introduced to address concerns raised by unions and bank employees regarding the proposal. These amendments are specified in the bipartite settlement. 

Speaking at a celebration organised by the All India Bank Employees' Association (AIBEA) in Mumbai, following the signing of the 12th Bipartite Settlement on March 8th, CH Venkatachalam, the General Secretary of AIBEA and a key representative of UFBU in negotiation talks, addressed the changing landscape of the banking industry. He remarked, "The banking industry has changed and will be changing forever. With the inception of sophisticated digital technology like artificial intelligence, our (employees') role is already diminishing. Duties like clearing, etc., have gone. So we need more duties to ensure the role of people." Venkatachalam emphasised the need for revising duties and powers, noting that allowances were also increased accordingly.

Speaking to Kanal, S S Anil, the All India President of the Bank Employees Federation of India (BEFI), expressed his perspective on the amendments to the initial proposal from IBA. He acknowledged that the late amendments provide some relief to employees' concerns but also conveyed discontent over certain aspects.

Anil particularly highlighted the significant increase in passing power, which BEFI opposed vehemently. He explained, "The representatives of major unions had reached a consensus before discussion in the wider platform of UFBU. A small committee/working group was formed with representatives from only two major unions among employees – AIBEA and NCBE." Anil noted that BEFI had sent a letter in October 2023 against what they deemed an undemocratic move to form this committee. He pointed out that due to this process, the concerns regarding additional duties and increased passing powers could not be adequately addressed at the initial proposal stage from IBA. Anil suggested that if these matters were first proposed in a wider platform, employee concerns could have been registered more effectively to counter such moves.

(An X post from a banker opposing the signing of 12th BPS.)

Pensioners' Situation

For pensioners, the 12th BPS does not include pension updation. Instead, an ex-gratia amount has been determined, the formula for which is detailed in the accompanying table. While this may not meet the expectations of pensioners, it represents a decision made within the framework of the settlement. There are concerns raised among retirees’ organisations regarding this ex-gratia formula in place of their demand for pension updation. 

Other Positive Developments for Bankers

Amidst the various challenges and uncertainties, several positive developments have emerged within the banking sector. Public sector banks have introduced innovative concepts such as the 'Leave Bank', allowing employees to donate their leave for colleagues facing emergencies. Additionally, the introduction of a half-day leave concept and the provision of monthly sick leave to women staff without requiring a medical certificate have been applauded for their practicality and inclusivity.

While certain issues such as 5-days banking remain unresolved, the settlement also brings forth some positive changes and initiatives within the banking industry. Stakeholders on Social Media continue to navigate through these developments, criticising both the IBA and the UFBU for the unmet demands.