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UCO Bank’s Dictum: No Salary for Non-Compliant Branches in Balasore Region

The UCO bank directive warns, non-compliance with regulatory guidelines regarding the allotment of CKYC IDs within 10 days of account opening could attract penal provisions. It further stipulates a severe consequence for non-compliant branches: the stoppage of salaries from the next month until the clearance of pendency.

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Author: Saurav Kumar

Published: July 26, 2024

In a shocking directive issued to all branches under the Balasore zone in Odisha, UCO Bank has mandated the clearance of CKYC (Central Know Your Customer) pendency by July 31, 2024. The directive, dated July 25, 2024, dictates that branches failing to comply would face a salary stoppage by the competent authority.

This move comes in response to a persistent backlog despite multiple extensions and reminders, as detailed in a letter from the Head Office dated July 19, 2024.

The notice underscores the criticality of addressing the CKYC pendency, highlighting a worrying trend of increasing pending figures over the last week. The letter states, “Despite extending the timeline and issuing several reminders, a significant pendency remains at your branch level. Instead of decreasing, branch-wise pendency has increased in the last 7 days. The pending figures of branches are self-explanatory, and no visible efforts have been initiated by branches.”

Central Know Your Customer (CKYC) is a centralised repository of customer identification information introduced by Government of India in 2016. It is managed by the Central Registry of Securitisation and Asset Reconstruction and Security Interest of India (CERSAI) that acts as a single access point for financial institutions to verify customer details, eliminating the need for repetitive documentation and verification.

Image: Notice of no salary to non-complied branches in UCO bank, Odisha

The UCO bank directive warns, non-compliance with regulatory guidelines regarding the allotment of CKYC IDs within 10 days of account opening could attract penal provisions. It further stipulates a severe consequence for non-compliant branches: the stoppage of salaries from the next month until the clearance of pendency.

“In the given circumstances, we request you to clear the CKYC pendency on or before July 31, 2024, without fail. The Competent Authority has decided to stop the salary for non-compliant branches from next month till the clearance of pendency,” the notice emphasises.

A Pressure Tactic Amid Staff Shortage

A member of the All India UCO Bank Employees Federation (AIUCBEF) told Kanal, “The order is a pressure tactic to push employees to clear the pending CKYC work, and it is wrong. The larger underlying challenge is the staff shortage in the bank, which is resulting in such aberrations.”

No comment from the unions in Odisha has been made on the issue yet.

Anger Against the Order

This directive has caused considerable concern among the bankers, who are now under immense pressure to meet the deadline. The move, seen by many as draconian, underscores the bank’s urgency in complying with regulatory requirements but also highlights the strain placed on employees in an already challenging banking environment.

The X user handle The Banker’s Voice termed the directive draconian and tweeted, “An alarming order has surfaced under Balasore Zone: stop salaries of non-compliant branches until CKYC pendency is cleared. This draconian measure not only undermines employees’ financial security but also highlights the failure of trade unions to protect the rights of members.”

Another X user handle named New Banker’s Diary tweeted, “Welcome to Slavery Welcome to @UCOBankOfficial

Image: Anonymous banker’s X handle on No Salary order of UCO bank

We Bankers too criticised the directive and tweeted, “UCO Bank under which service rule of BPS Joint note your incompetent idiot authority from Balasore Zone issued such diktat ??? With the same logic of this diktat Mr Nishikant Singh's  Salary should also be stopped. As Non Compliance by Branches means Non Compliance of the Zone itself. As Salary is right to property under Article 300A of Constitution of India. You can't issue such illegal orders.”

This draconian measure not only undermines employees’ financial security but also exposes the dictatorial tendency of the bank’s higher authorities.

Tags:UCO BankAll India UCO Bank Employees FederationNo Salary OrderCKYCOdishaBalasoreAIUCBEF