AIWBOA Flags 16% Interest Recovery on TA Bills After PNB Issues 100% Perquisite Tax Relief

The All India We Bankers Officers’ Association (AIWBOA) has formally raised the issue of 16% interest recovery applied on previously reimbursed Travel Allowance (TA) bills at Punjab National Bank (PNB). AIWBOA National General Secretary Prabin Kumar Biswas told Kanal that the association was the first to flag the matter publicly.

Reference to Bank’s Perquisite Tax Circular
The development comes shortly after the bank issued a circular dated 10 November 2025, announcing 100% absorption of tax liability on the perquisite value of interest-free loans and concessional-interest loans for FY 2025–26.

An officer who wishes to remain anonymous also told Kanal that interest at 16% was deducted from the date of suspense debit for the reversal of TA bills, covering a period of nearly three months.

AIWBOA’s Objections and Request for Inquiry
AIWBOA stated in its public post that the recovery of previously reimbursed TA bills with 16% interest has raised concern among employees and, according to the association, goes against established rules and employee welfare guidelines. The union described the action as financially improper, questioned the need for such recoveries when large corporate dues remain pending, and referred to it as “petty extortion.” AIWBOA has requested the management to review the decision, conduct an internal inquiry, and take disciplinary action against the officials involved, stating that the issue has led to staff demoralisation.

AIWBOA has formally highlighted the issue of 16% interest recovery on previously reimbursed TA bills and has sought an internal review and action from the bank. The association’s statements and related public references outline the concerns raised regarding the recovery process.